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ARTICLE 16: RULES

The conduct of the Challenger Selection Series, the Defender Selection Series, if there is one, and the Match shall be governed by:

(i) the Racing Rules as they exist at the time of execution of this Protocol, or as may subsequently be amended by the IYRU provided that if subsequent amendments introduce "experimental rules" the Challenger of Record and RNZYS shall determine by agreement to what extent, if any, those experimental rules shall apply,

the IACC Class Rule, Version 2.0 dated March 10, 1993 (unless a new version of the IACC Class Rule is issued, in which case the new version shall apply) ("Class Rules"). In the event of a conflict between the Racing Rules and the Class Rules, the Racing Rules shall govern unless the Class Rules specifically alter the Racing Rules,

the Match Racing Rules, Appendix B6, of the Racing Rules,

except so far as any of (i), (|) and (|i) are altered by the Conditions: the America's Cup Deed of Gift, the Interpretive Resolutions and the Decisions of the America's Cup Arbitration Panel; the Conditions; and

this Protocol.

ARTICLE 17: ELIGIBILITY AND MODIFICATIONS TO YACHTS

Each Challenger and candidate for the defence may build, acquire or otherwise obtain two New IACC yachts eligible for America's Cup competition.

A new IACC yacht is a yacht that complies with IACC Class Rule 39.4, the construction of which is commenced after the Final Race ("New IACC yacht"). A New IACC yacht may be altered without that yacht counting as a further New IACC yacht to the extent that such alterations (or where there are sequential alterations the total of all alterations to the particular yacht) do not exceed:

20% of the area of the bottom (ie below the LBG plane);

50% of the area of the topsides (ie above the LBG plane); and 100% of the shape or area of the deck may be altered.

An Old IACC yacht is a yacht, the construction and delivery of which has been completed prior to the Final Race ("Old IACC yacht"). An Old IACC yacht may be altered and shall not constitute a New IACC yacht to the extent that such alterations (or where there are sequential alterations, the total of all alterations to the particular yacht since the date of Final Race) do not exceed:

35% of the area of the bottom (i.e. below the LBG plane); 80% of the area of the topsides (i.e. above the LBG plane); and 100% of the shape or area of the deck may be altered.

No alteration to a New IACC yacht or to an Old IACC yacht may be made without the prior written approval of the Technical Director appointed under the Class Rules. In order to enable the Technical Director to consider whether approval should be given to any proposed alteration, the Technical Director shall be provided with all information that he requests which he believes is necessary to enable him to determine whether such alteration is permitted under the above rules. Prior approval shall not be required for any alterations to the deck.

Without limiting the power of the Technical Director to request that information be provided to him for the purpose of determining whether or not any particular alteration or alterations are permitted under the above rules:

for New IACC yachts, at the time a sail number is allocated under IACC Class Rule 39.4 the Technical Director shall be provided with a copy of the lines plans for the canoe body of the yacht which is allocated the sail number and those lines plans shall be the base from which the percentage changes are determined; for Old IACC yachts, the lines plans for the canoe body of the particular yacht as at the date of the Final Race, redrawn if necessary to represent the accurate lines plans of the canoe body of that yacht as at the date of the Final Race, shall be presented to the Technical Director prior to any such alterations commencing;

repairs in accordance with the Conditions are not considered alterations; and

the Technical Director shall hold all lines plans provided under (i) and (|) in strictest confidence and they shall normally be stored for safe keeping in a recognised safety deposit facility.

In order to assist Challengers and candidates for the defence to understand the ambit of the above rules and the nature of alterations which will and will not be permitted under the rules, the Technical Director shall consult with RNZYS and the Challenger of Record and shall issue an explanatory interpretation of this Article 17, such explanatory interpretation to be approved before issue by both RNZYS and the Challenger of Record.

Only (1) the two New IACC yachts built, acquired, or otherwise obtained by a Challenger or candidate for the defence of the Cup, and (2) any Old IACC yacht which otherwise satisfies the design and other nationality requirements in respect of the particular Challenger or RNZYS, shall be eligible for the America's Cup XXX competition.

The intent of this rule is to limit the Challengers and candidates for the defence in America's Cup XXX to building, acquiring, or otherwise obtaining two New IACC yachts and to maximise the use of Old IACC yachts. For example acquisition by loan, or any other means, of a new yacht capable of being measured in as an IACC yacht without significant modification would be a violation of this rule. In order to effect that intent, once a person or entity whether then a Challenger or not, has been allocated two sail numbers under IACC Class Rule 39.4, no further sail numbers may be allocated to that person or entity and a person or entity shall only be entitled to be allocated a new sail number under IACC Class Rule 39.4 to the extent that at the time of such allocation, the participant has not built, acquired or obtained (in each case through alteration or otherwise) two New IACC yachts.

Furthermore, in order to give effect to the full intent of this rule, each person or entity whether then a Challenger, candidate for the Defence or not, must engage separate and independent yacht designers having no involvement with any other Challenger or candidate for the Defence's program to develop an IACC yacht or a yacht substantially similar to an IACC yacht. Design or performance information regarding such yacht of a person or entity may not be shared or exchanged with another person or entity except that which may be gleaned without assistance from the other person or entity in formal or informal or head-to-head competition. Moreover, any scale model or scaled down version of an IACC yacht (or other yacht which could be measured as an IACC yacht without significant modification) which is greater than one-third of the size of an actual IACC yacht (or such other yacht) is deemed to be a New IACC yacht for the purposes of this Article and shall be deemed to have been allocated a sail number under IACC Class Rule 39.4.

For the avoidance of doubt any agreement, arrangement or understanding, whether legally enforceable or not, by one person or entity (in this paragraph "the first person") whether or not such person or entity is at that time a Challenger, with any other person or entity (in this paragraph "the second person") that the second person will directly or indirectly build, acquire or otherwise obtain one or more yachts of whatever type (in this paragraph "other yachts") so that the first person can directly or indirectly obtain, in any manner whatever, design or performance information regarding the other yacht or yachts for use in the programme of design, development or challenge of the first person, shall be prohibited.

ARTICLE 18: NUMBER OF SAILS

IACC Class Rule 33.8 shall not apply. The maximum number of measured sails permitted for each Challenger and each candidate for the defence shall be sixty, provided that in the Match each of the Challenger and the defender shall be limited to a sail inventory of no more than thirty measured sails ("Match Sail Inventory") from the maximum permitted number of sixty measured sails. Furthermore, to be eligible for use in the Match, a measured sail must also be separately registered with the Technical Director as part of the Challenger's or defender's Match Sail Inventory. Sails may be measured and/or registered in the Match Sail Inventory at any time during the Match as long as no more than thirty measured sails can be registered in their Match Sail Inventory by either the Challenger or the defender. In this Article 18 a measured sail is a sail measured by and registered with the Technical Director under the Class Rules and, for the avoidance of doubt, once a sail has been measured by and registered with the Technical Director under the Class Rules by a Challenger or a candidate for the defence, it may not be so measured or registered by any other person.

ARTICLE 19: CHALLENGER APPENDAGES

Providing a Challenger's yacht arrives in New Zealand with appendages (including foils, bulbs, canards, etc), designed by a national and manufactured in the country of the Challenger, further appendages may be constructed in New Zealand for that yacht provided they have been designed by a national of the country of the Challenge.

ARTICLE 20: TELEVISION EQUIPMENT

During racing in the Challenger Selection Series, the Defender Selection Series, if there is one, and the Match, television, audio and other electronic equipment will be carried on yachts and/or crew of both Challengers and candidates for the defence. The amount and manner of placement of such television, audio and other electronic equipment on yachts and crew will be consistent for all Challengers and candidates for the defence.

ARTICLE 21: OTHER CONDITIONS

RNZYS and the Challenger of Record may, from time to time, determine such other conditions as they agree are necessary for the America's Cup XXX regatta.

ARTICLE 22: LICENSE AGREEMENT

At the time of signing the Conditions, or at such later time as RNZYS requires, each Challenger must execute a license agreement relating to the America's Cup trademarks with ACPI. Any dispute as to the terms of that agreement shall be determined by the America's Cup Arbitration Panel.

ARTICLE 23: INTERNATIONAL JURY

An International Jury shall be appointed by RNZYS and the Challenger of Record under the procedure set forth in Appendix A5 of the Racing Rules ("Jury"). The Jury so appointed shall preside over the Challenger Selection Series, the Defender Selection Series, if there is one, and the Match. The Jury shall have jurisdiction to determine all disputes concerning Racing Rules and in particular shall have the powers set out in Appendix A5 of the Racing Rules with the Jury having the power to determine the matters set out in clause 3.8 without RNZYS having the ability to direct otherwise. The Jury shall also have jurisdiction to determine matters of interpretation of the Conditions which those Conditions specifically provide shall be determined by the Jury, and shall hear measurement protests. When hearing a measurement protest the Jury shall consult with the Measurement Committee. Matters referred to in Article 24 shall, for the purposes of that protest, be determined by the Measurement Committee. The Jury shall not have jurisdiction to determine matters within the jurisdiction of the Measurement Committee under Article 24 or within the jurisdiction of the America's Cup Arbitration Panel under Article 25. Decisions of the Jury shall be final and shall not be subject to appeal or be referred to any court or other tribunal for review in any manner.

ARTICLE 24: MEASUREMENT COMMITTEE

All matters relating to the measurement of the IACC yachts, the interpretation of Class Rules and the determination as to whether a yacht meets IACC class rules are to be determined by the Measurement Committee jointly appointed under the IACC Rules by RNZYS and the Challenger of Record. Decisions of the Measurement Committee shall be final and shall not be subject to appeal or be referred to any court or other tribunal for review in any manner.

ARTICLE 25: AMERICA'S CUP ARBITRATION PANEL AND DISPUTE RESOLUTION

An America's Cup Arbitration Panel ("America's Cup Arbitration Panel") shall be established whereby the RNZYS, as holder of the Cup, and NYYC will each select two members of a five person arbitration panel. The fifth member will be selected by agreement of the four members of the five person arbitration panel already selected. Criteria for selection of all members shall include:

they may be a resident or citizen of any country participating in the America's Cup XXX competition or trials whether or not they have a significant interest in the dispute or issue;

they shall possess extensive knowledge of America's Cup history, the Deed of Gift, and the Interpretive Resolutions;

they shall possess good general knowledge of yacht racing and yacht clubs; and

they shall be known to be fair minded and possess good judgement.

The America's Cup Arbitration Panel shall be empowered as follows:

to resolve all matters of interpretation of this Protocol;

to resolve disputes (other than those concerning the Racing Rules or any applicable class or rating rule) between RNZYS and the Challenger of Record;

to resolve disputes (other than those concerning the Racing Rules or any applicable class or rating rule) between RNZYS and an individual Challenger when the Challenger of Record certifies in writing to RNZYS that a majority of the Challengers desire the issue to be resolved by the America's Cup Arbitration Panel; to resolve disputes, (other than those concerning the Racing Rules or any applicable Class or rating rule) between individual Challengers when one of those Challengers so requests or between an individual Challenger and the Challenger of Record; in the event of disagreement among Challengers, to designate the Challenger of Record under Article 5;

to resolve any disagreement between RNZYS and the Challenger of Record and in particular settling the matters referred to in Article 7;

to determine matters of nationality and other issues under Article 13 and the appropriate penalty for any breach of that Article;

to determine the appropriate penalty under Article 15;

to resolve disputes under Article 22; and

to resolve any other matters which it is given jurisdiction to determine.

The International Jury shall not have the power to determine the matters set out in paragraphs (i) to (x)inclusive.

NYYC and RNZYS shall have the right at any time to replace one or both of their respective America's Cup Arbitration Panel members, in the event of death, illness, loss of mental faculties, resignation or any other reason which, in the view of the respective entity which appointed the particular member, makes them unable or unwilling to exercise their powers and/or functions under this Article 25. Likewise the four members of the America's Cup Arbitration Panel appointed by NYYC and RNZYS shall have the power to replace the fifth member of the America's Cup Arbitration Panel mutually appointed by them at any time in the event of death, illness, loss of mental faculties, resignation, or for any other reason which, in the view of those four members who appointed that fifth member, makes that fifth member unable or unwilling to exercise their powers and/or functions under this Article 25.

A quorum for meetings of the America's Cup Arbitration Panel shall at all times be five (5), with each member entitled to one vote. Decisions shall be made by majority vote. The America's Cup Arbitration Panel shall determine its own procedure.

If RNZYS calls for an America's Cup Arbitration Panel meeting, a meeting shall be convened with the costs associated with such meeting (excluding costs associated with the opposing side making its presentation which will be borne by that side) being paid by RNZYS. Should RNZYS and a majority of the Challengers call an America's Cup Arbitration Panel meeting, a meeting shall be convened with all costs associated with such a meeting (excluding RNZYS's and the Challenger of Record's own costs which will be borne by them) being shared equally between RNZYS and the Challenger of Record. If a Challenger calls for an America's Cup Arbitration Panel meeting, a meeting shall be convened with the costs associated with such a meeting (excluding costs associated with the opposing side making its presentation which will be borne by that opposing side) being paid by the Challenger. Costs associated with an America's Cup Arbitration Panel Meeting called under item (v) (excluding individual Challengers own costs which will be borne by those Challengers) shall be borne equally by the Challengers. Costs associated with a America's Cup Arbitration Panel Meeting under (vi) (excluding each party's own costs which will be borne by those parties) shall be borne equally by RNZYS and the Challenger of Record. Costs associated with an America's Cup Arbitration Panel Meeting under item (v|) shall be borne by the person making the challenge. Costs associated with an America's Cup Arbitration Panel Meeting under item (v|i) shall be borne by the party in respect of which a penalty is being determined. Costs associated with an America's Cup Arbitration meeting under (ix) shall be shared equally between RNZYS and the Challenger of Record.

ARTICLE 26: INTERPRETATION

Whenever there is a conflict between the provisions of this Protocol and the Conditions or any other relevant racing rule or document (other than the Deed of Gift), the terms of this Protocol shall prevail.

In interpreting this Protocol all the provisions hereof shall receive both a construction as will best promote the purpose and object underlying this Protocol or of the particular provision and such fair, large and liberal interpretation as will best ensure that they are given their true spirit, meaning and intent.

All references to RNZYS shall, where the context permits, include a reference to its appointed event organising entity appointed for the purpose of organising a defence. That entity at the date of this Protocol is Team New Zealand Limited.

The term "Challenger", except where inconsistent with the context, includes any syndicate or other entity through which a challenging yacht club challenges for America' Cup XXX. The term "candidate for the defence " means a syndicate or other entity which represents or seeks to represent RNZYS as defender of the America's Cup. Each Challenger shall ensure, that any such syndicate or other entity complies in all respects with this Protocol. RNZYS shall ensure, that any such candidate for the defence complies in all respects with this Protocol.

ARTICLE 27: EXECUTION

One copy of this Protocol will be executed by RNZYS in New Zealand and a separate copy will be executed by NYYC in the United States and this Protocol will be binding once each of RNZYS and NYYC have so executed a copy. The document will be dated according to the then date in New Zealand when the second party signs. RNZYS and NYYC will then arrange for further copies of this Protocol, which will bear the same date as the separately executed copies, to be jointly signed by each of them. Both the separately signed copies and the jointly signed copies shall be of equal effect.

ROYAL NEW ZEALAND YACHT SQUADRON

______________________________________
Peter B. Hay
Commodore

NEW YORK YACHT CLUB

______________________________________
Alfred L Loomis |I
Commodore

DATED the 23rd day of April 1996

ARTICLES 1-11 || ARTICLES 12-15 || ARTICLES 16-27


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