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An Overview. July 2009. Orange County Choppers Overview. Paul Teutul, Sr. Metalworker by trade and founder of OCC The tough task master Merchant Marine veteran Author, “The Ride of a Lifetime: Doing Business the Orange County Choppers Way” OCC

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An overview l.jpg

An Overview

July 2009


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Orange County Choppers Overview

Paul Teutul, Sr.

Metalworker by trade and

founder of OCC

The tough task master

Merchant Marine veteran

Author, “The Ride of a Lifetime:

Doing Business the Orange County

Choppers Way”

OCC

Started in the basement of Paul Sr.’s home in Montgomery, NY.

First bike, ‘True Blue’ debuted at Daytona Biketoberfest in 1999

Established Orange County Choppers, Inc. in 1999

‘Discovered’ by the Discovery Channel in 2002; signed to be featured in the television series, American Chopper

Now regarded as one of the world’s premier builders of custom motorcycles

2


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Orange County Choppers Overview

  • Primary business is to build and sell custom motorcycles

    • Currently 10 dealerships selling OCC production bike line in the US and Canada

    • Parts & accessories line to be introduced in 2010

    • Licensors of OCC intellectual property; categories include auto aftermarket, apparel, toys, collectibles, etc.

    • Own and operate OCC retail store/theme bike museum and web-based e-tail site

  • New world headquarters opened in March 2008; includes:

    • Shop

    • 30,000+ sq. ft. of retail space

    • Viewing area to watch bike builds/TV taping

    • Motorcycle showroom

    • Showcase for American Chopper on-air build collection

  • OCC web site averages 300,000 unique visitors and 3,000,000 page views per month

  • Themed restaurant to be built on site


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American Chopper

  • First aired on the Discovery Channel September 29, 2002

    • Consistently Discovery’s top-rated show from 2002-2006

    • Over 125 episodes complete

    • Currently filming 7th season

  • Moved to TLC in January 2007

    • Remains on Discovery Channel in international markets

  • Selected to be Discovery’s first show put into syndication in 2008; picked up in over 85% of the country

  • 2008 Ratings Highlights*

    • New episodes of American Chopper ratings up 11% vs. 2007

    • 60% of audience was Adult 18-49; 64% Adult 25-54

    • 41% of audience was Male 18-49; 44% Male 25-54

    • #1 show on TLC with Men 18-49 and Men 25-54

    • American Chopper comprised 7% of TLC’s primetime viewing schedule in 2008

      *Nielsen Galaxy 1/1/08-10/31/08


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American Chopper

  • In 2007, TLC conducted surveys and focus groups to learn the creative appeals of the show. Highlights (both men and women) include:

    • The bike is the star and focus of the show, including the conceptualizing, designing, customizing and fabrication

    • The interactions of the OCC crew, particularly those of Paul Sr. and Paul Jr.

    • Watching talented craftsmen at work, both OCC crew and outside craftsmen brought in for special jobs

  • American Chopper was the #1 cable network show in product placements for the first half of 2008*. Top shows include:

    • American Chopper 26,794 placements

    • Project Runway 10,316

    • Top Chef 9,316

      * Neilsen - September 2008


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American Chopper

Strong US Audience (SMRB 2006)

  • Male Index 139

  • Age 18-24 Index 121

  • Age 25-34 Index 126

  • Age 35-44 Index 125

  • Household Income $50,000-$59,999 Index 126

  • Household Income $60,000-$74,999 Index 124

  • Household Income $75,000-$99,999 Index 133

  • Household Income $100,000-$149,999 Index 107


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American Chopper – International

  • Global reach – 160+ countries/territories; 35 different languages; strongest markets include:

    • Europe – UK, France, Italy, Germany

    • Asia – Japan, Taiwan, India

    • Australia/New Zealand

    • South/Central America – Brazil, Mexico

  • International live appearances in 2008

    • Germany, Brazil, England

  • Won two ASTRA (Australian pay TV) viewer’s choice awards in 2006 and 2007

    • Favorite International Program – American Chopper (2007 vs. Entourage, Rockstar: Supernova and Deadwood)

    • Favorite International Personality – Paul Teutul Sr. and Paul Teutul Jr. (2007 vs. Tyra Banks, Jon Stewart and Jeremy Piven)


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Corporate Marketing Strength

  • OCC has built custom theme bikes for some of the biggest names in corporate America

    • Intel

    • Sears Craftsman and Diehard

    • Northrop Grumman

    • Gillette

    • Siemens

    • Hewlett-Packard

    • US Army National Guard

    • Mercedes Benz USA

    • Sikorsky Aircraft

    • Sunoco

    • Microsoft

  • In 2004, the Teutuls served as corporate spokesmen for AOL

  • In 2005 and 2006, the Teutuls served as corporate spokesmen for NAPA

  • In 2007, the Teutuls were spokesmen for Lugz Shoes, Godaddy.com, Domino’s Pizza and Hewlett-Packard, and Paul Sr. a spokesman for The Wall Street Journal and GMC Trucks

  • In 2008 the Teutuls were spokesmen for Lugz Shoes and Sears

  • Paul Sr. is currently a spokesman for Sears DieHard Batteries


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Public Relations Juggernaut

  • Since the inception of American Chopper, OCC and the Paul Teutul, Sr. have been at the center of an adoring fan base and national media; notable coverage includes:

    • Print: USA Today, TIME, Newsweek, TV Guide, Entertainment Weekly, Muscle & Fitness, Men’s Health, NY Times, Brandweek

    • National TV: TheLate Show with David Letterman, The Tonight Show with Jay Leno, Live with Regis & Kelly, The Big Idea with Donny Deutsch, Today, The Jimmy Kimmel Show, The Martha Stewart Show, Best Damn Sports Show, Fox & Friends, and more.


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Paul Teutul, Sr. Q Score Summary

Winter 2008 Performer Q: Basic Cable Subscribers

Marketing Evaluations Inc.

Name/Category Segment Score

All Performers Total 18

Males 17

Females 18

Reality Show Participants Total 19

Males 17

Females 20

Paul Sr. Total 22

Males 25

Females 18

M 18-34 32

M 18-49 29

M & F 18-34 28


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Case Study – Hewlett Packard

Situation

OCC

  • Experiencing great growth; OCC needed to upgrade systems, streamline workflows and perform more complex modeling

  • Upon opening its new world headquarters, OCC needed to integrate top-of-the-line equipment and IT network to meet business needs

    HP

  • Building consumer marketing model centered around ‘Computer is Personal Again’

  • Building trade marketing model around ‘Design Beyond the Edge’

  • Looking for compelling associations that meet brand attributes and resonate with cross-section of stakeholders

    The Partnership

  • Began with simple product placement in OCC shop – HP Workstation

  • Workstations added to aid design process

  • Decision to build bike designed on and meant to showcase new HP equipment

  • Teutuls asked to star in HP Super Bowl commercial (most watched commercial in 2007 Super Bowl – 100 million people)

  • OCC/Teutuls featured in 2007-2008 ‘Computer is Personal Again’ broadcast and print campaigns as well as trade marketing including appearances at key trade events throughout the campaign

  • OCC features HP technology throughout new HQ, including all design function, corporate workstations and 25 42” monitors in showroom/retail space


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Case Study – Intel

Situation

  • Intel was searching for innovative ways to showcase the performance potential of their embedded technology and to celebrate 30 years in the embedded market.

  • Intel wanted a partner that would ‘wow’ the industry and show how embedded technology could be mainstreamed.

    The Partnership

  • Intel commissioned OCC to design and build a concept bike that would put Intel technology to the test

  • Intel brought partner, Advanced Diamond Technology on board to build the one-of-a kind, ultra mobile computer to run the motorcycle and keep the computing system protected from water, dirt, shock and vibration.

  • The result of this 3-way partnership is the ‘biggest’, most technologically advanced chopper ever built by OCC, including a ‘V-quad’ engine to replicate the quad-core technology of Intel’s Embedded Technology Division.

  • Everything on the bike is integrated with the computing system:

    • The ignition system is controlled by fingerprint recognition software

    • The sunlight viewable digital dashboard displays all of the traditional vehicle indicators like speedometer, tachometer, fuel and oil gauges, battery life and turn signals

    • The dashboard also provides audio and video infotainment, including GPS navigation, Wi-Fi connectivity for quick updates on traffic and web-surfing, touch screen access to the radio and MP3 files, and even cell phone service

    • Rear mounted cameras replace standard rear-view mirrors

    • Electronic kickstand

  • Dashboard can be detached and used as a traditional PC


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Case Study – Sunoco

Situation

  • Sunoco was looking for ways to activate its involvement in NASCAR that would resonate with a broad spectrum of consumers and chose to partner with OCC to build a bike that would bring attention to not only Sunoco’s racing heritage, but also raise funds for Kyle and Patti Petty’s charity ‘The Victory Junction Camp’

  • Sunoco also wanted a credible partner who utilized its high-performance fuel

    The Partnership

  • The Sunoco bike was built as a café style racer to highlight Sunoco’s contributions to the advancement of racing technology; the signature logo was that of The Victory Junction Camp and the bike toured the US on the Chik-fil-A Kyle Petty Charity Ride, generating tremendous exposure and awareness for the charity.

  • The bike proved to be the beginning of a multi-year relationship that included:

    • “Official fuel of OCC” designation including Sunoco fuel pump and two Sunoco portable pumps in the OCC shop

    • National point-of-sale promotion telling consumers about the relationship

    • National 4-week hero card promotion in the second year of the partnership – Sunoco commissioned four motorcycle builds for NASCAR drivers Jimmie Johnson, Kasey Kahne, Dale Earnhart, Jr. and Tony Stewart; each driver was photographed with his bike and a Hero Card was created; each week for four weeks, consumers received a free hero card with an 8-gallon fill-up; the back of each card had ¼ of a logo; consumers who collected all four and were able to identify the logo received a chance to build their own OCC motorcycle

    • Two national holiday promotions – first, selling die cast Sunoco truck with Sunoco/OCC bike and second, selling three versions of Sunoco/OCC bikes


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Case Study – Lugz

Situation

  • Lugz, the flagship brand of JSSI, Inc. was traditionally marketed to young urban males

  • For the past several years, they had utilized Hip Hop musicians as spokespeople and advertised in magazines and on television (primarily targeting wrestling fans)

  • Lugz was looking to expand their target to a broad blue collar male audience including men who worked with their hands, truck drivers and motorcycle riders

  • At the time, they had noticed that Paul Jr. wore Lugz on just about every episode of American Chopper; he had been a Lugz customer for years

    The Partnership

  • At the first meeting both sides knew there was a real synergy; in a short amount of time, the Teutuls were signed as endorsers for the brand

  • In the first year, the Teutuls were featured in two advertising campaigns as well as Lugz in-store marketing materials

  • In year two, they were again featured in Lugz advertising, but Lugz took the relationship to the next level – they commissioned a custom themed motorcycle, which became the first ever done by OCC where they incorporated leather in the fabrication of the gas tank as well as the wheels; the bike then appeared in ads with the Teutuls and made promotional appearances at retailers throughout the country

  • Year three took the relationship to yet another level as Paul Jr. worked with the Lugz design team to create his own shoe; the advertising strategy moved to radio and OCC and the Teutuls now endorsed traditional Lugz as well as their own line of licensed shoes


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Case Study – Darien Lake Theme Park

Situation

  • PARC Management Corporation owns and operates theme parks, water parks and family entertainment centers in the US and Canada; one property is Darien Lake Theme Park Resort in NY State

  • In 2008, Darien Lake acquired a Motocoaster - unique new roller coaster that offers riders a traditional roller coaster experience with one significant difference – they would sit on the ride like they were on a motorcycle

  • Darien Lake wanted to promote this new ride and the park itself, so they chose OCC to help tell their story

    The Partnership

  • To give the new ride some excitement, Darien Lake renamed it The Orange County Choppers Motocoaster and created a joint logo to promote it

  • Darien Lake then commissioned a themed motorcycle build to showcase the family fun and excitement that is offered at Darien Lake; the finished bike featured Ferris Wheel wheels, a Tornado air cleaner cover, roller coaster track on the tank and rear fender and of course, the OCC Motocoaster logo

  • A replica bike was created and used as the centerpiece of a season-long sweepstakes; at the end of the season, more than 50 contestants came back to the Park to select a key that would start the bike; Mikey Teutul was on hand to lead the festivities and award the prize

  • The OCC Motocoaster is a featured ride at the park today; a line of co-branded merchandise was developed by OCC and Darien Lake and is available to provide lasting memories


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Case Study – GoDaddy.com

  • Situation

  • GoDaddy.com, the premiere domain name provider in the US has garnered attention through edgy advertising and wanted to broaden their target market by reaching a global audience through OCC

  • The Partnership

  • GoDaddy commissioned an OCC bike build to showcase their services over and above providing domain names, specifically their web hosting capabilities

  • As part of the relationship, GoDaddy assisted with a redesign of the OCC website and took on web hosting duties

  • As the relationship between GoDaddy and OCC continued to grow, GoDaddy CEO Bob Parsons was so impressed that he invited the Teutuls to appear in one of GoDoddy’s world famous Super Bowl commercials

  • The GoDaddy/OCC bike can regularly be seen at one of the many high profile GoDaddy sponsored events such as Indy Racing League races with Danica Patrick and NASCAR events with GoDaddy sponsored cars and trucks

  • In addition, Mr. Parsons commissioned a personal bike build with a US Marine theme


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Partnership Opportunities

OCC will build a custom program that can include any or all of the following:

  • On-air custom chopper build

    • Bike build

    • R&D and unveiling appearances

    • Limited intellectual property rights package

  • Off-air custom chopper build

  • OCC/Teutul endorsement

    • Intellectual property rights (logo and likeness) for use in consumer and trade advertising and promotion, including any/all broadcast, print, radio, web, outdoor and point-of-sale

    • Appearances

  • “Official Partner” Program

    • Signage/handouts at OCC HQ

    • Signage/handouts at 12 dealerships in US and Canada

    • Presence in OCC retail store

    • Website link


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