Lexus Sponsor Proposal

Third Avenue—through its production Dallas Fashion Week—recently embraced an altruistic project of developing an exciting, innovative program in occupation-training and mentoring in the fashion and apparel industry.

Dallas Fashion Week™ will provide occupational training programs as well as basic educational services. It will feature runway shows that highlight the hottest apparel from new, established, and celebrity designers. This event will also provide a forum for designers and buyers to meet in one marketplace.

This proposal requests $100,000 from Lexus for the advertising, marketing, and promotions of this historic event. As you know, a successful event depends and thrives on marketing and promotions.

Every company needs to effectively communicate what their event offers to the broadest possible audience: through commercials, publications, signs, advertising, billboards, or brochures.

Highly successful events have demonstrated repeatedly that profitability is enhanced when marketing goes beyond normal promotional tools to extraordinary across-the-board, reality-based marketing orientation. Such as tying into community career training needs and other philanthropic services.

We understand that marketing efforts are complementary to high quality management practices. While promotional materials may attract attendees, it is the ongoing marketing and performance-based marketing that keeps them interested in attending the event. At Third Avenue, this is the type of marketing campaign we are actively and aggressively executing.

The occupation-training project the partners envision is multifaceted, comprehensive and innovative. This region has a viable opportunity to showcase talent and services offered by members of the apparel industry. Dallas Fashion Week™ will donate a portion of its proceeds to four charitable organizations that reflect ours and our sponsors philanthropic interests.

At Third Avenue, we understand that the smallest good deed is better than the grandest intention. That is why through our charitable donations we will support several causes that affect us all directly and indirectly. We have enthusiastic cooperation and sponsorship from members of the fashion industry, major national corporations, as well as community groups and other private organizations.

2. Industry Statistics

According to the Texas Workforce Commission 2004Q4 Report, the value added per employee in the industry in is $73,220. In 2004, Texas apparel and accessories exports were valued at $427 million. For the last two years, apparel and accessories were in the top 20 for largest exporting categories. Dallas Fashion Week will vitally serve to increase these numbers by bringing awareness of fashion services and products in the Dallas community. The total capital investments in the industry was $7.5 million with the value of shipments at $1.7 billion. In recent industry trends Texas apparel industry average weekly wages have increased since 2003Q4.

The apparel retail industry is a large and mature industry with average growth of about 4-5% a year over the past decade. With barriers to entry and lack of dominant fashion trends, this industry is very competitive. It is time for this region to establish itself as a major competitor. Many apparel retailers, manufacturers, designers are facing threats of consolidation by other retailers. The apparel retail industry is an early-cycle industry and often a harbinger of what economic climate lies ahead. Macro economic factors—such as GDP growth, personal disposable income and consumer confidence—have a great influence on the overall performance of this industry.

According to data released by the Department of Commerce, US consumers spent $334 billion in apparel and footwear. With an estimated US population of 285 million, the expenditures in apparel is equaled roughly to $1,150 per person. Despite a small decline in sales, many companies still see an on year growth. This event will also aid in growth.

3. Event Cost

The bulk of the Dallas Fashion Week sponsorship funds will be used for the marketing and advertising of this event. We estimate that this event will service more than 300 companies.

The Dallas Fashion Week cost breakdown is as follows:

• Venue Costs - $130,000.00

• Exposition Services - $80,000.00

• Marketing Cost - $500,000.00

• Miscellaneous - $40,000.00

• Total Project Budget - $750,000.00

The venue costs include exhibit halls and meeting rooms at the Dallas Convention Center. The costs are for the week of October 10-15, 2006. It also includes all the catering costs from Centerplate Catering.

The exposition service costs include all of the trade show booths, carpet, chair rentals, banners, installation, and other standard applicable administrative costs.

The marketing costs will consist of a national marketing and advertising campaign with several big name PR firms throughout the US.

Miscellaneous costs include program schedules, show booklets, bags, and transportation.

4. Event Goals and Objectives

The goal of the project is to provide a forum to display the services, goods, and products in a venue hosted by the City of Dallas. And, as well, basic educational services and workshops are showcased that offer valuable knowledge and information affecting the industry directly and indirectly. Finally, the consequences of Dallas Fashion Week is more than bringing key players and influential people together. It is about giving companies and any other interested individuals the tools to improve their business.

Dallas Fashion Week™ will unite designers and buyers and connect the fashion triangle between New York and Los Angeles. It will serve as an information supermarket through our vast broad range of seminars and fashion-expert speakers. The design suites will offer exposure to new and established designers. Overall, this event will tremendously help to catapult the apparel industry in this region to its next level of exposure and success.

5. Target Population

The target population for this project is manufacturers, designers, retail companies, magazines, stylists, agencies, and students. Dallas Fashion Week™ will utilize the resources of the community, along with those of experts in the apparel industry to implement this event.

Outreach and recruitment are critical components of this project. It is essential that Third Avenue reach and recruit those individuals in need of the resources we can offer. The following will be utilized by the project planners to reach and recruit project participants:

• Newspapers and radio stations

• Agencies

• Educational Institutions

• Trade Organization and Associations

• Incubation Programs

All efforts are to be conducted without consideration of a participant's race, ethnicity, sex, disability, or sexual orientation, and a statement to this effect will accompany all public service announcements, advertisements, and national & locally-placed posters.

6. Event Components

Reasonable Costs

The planning process has taken into account all reasonable and legitimate expenses related to the implementation of Dallas Fashion Week™. Third Avenue has extensive experience in managing, implementing and administering fashion shows and other special events. This knowledge underpins both the expert level of the Dallas Fashion Week™ production, and also the precision of its budget.

Cost estimates have been based on a detailed project design, taking into account all the criteria and features of Dallas Fashion Week™. This event takes place two times a year: the fall and the spring.

Potential problems and Solutions

Much of the planning process will be focused on the recruitment and retention of participants in the project. Third Avenue has studied the availability of local and national resources for recruiting designers: newspapers, radio stations, market centers, galleries and related apparel organizations. Third Avenue will make connections with sources and establish working relationships with companies to further enhance this high profile event. Additionally, the planning process will be targeted at working closely with other events to establish Dallas Fashion Week™ as an exclusive, unparalleled fashion week on a national and international level.

Some designers who wish to take advantage of Dallas Fashion Week™ may be prevented from doing so because of lack of seed capital. As part of the effort to recruit and retain these designers, in conjunction with our numerous efforts to give back to the community, Third Avenue will provide a few complimentary, open slots to individuals that are eligible.

7. Event Staff

To execute this event, we have a seasoned staff of professional planners, stage managers, managerial staff, sales executives, and event coordinators. We have contracted labor in exposition services, public relations, and catering.

Third Avenue, LLC, is a full service production company that specializes in high profile and high budget events. Third Avenue has become a formidable force within public and private events. Our primary goal is to address every detail of every project we undertake and leave nothing to chance. The impact always results in a long lasting perception of style, quality, and respect for the employees of Third Avenue. Our staff has years of experience in their areas of expertise. Combined, our staff has represented the most powerful and well-known corporations worldwide. For more information about Third Avenue, please visit www.avenueonthird.com.

Samantha Slaven, lead publicist: A former magazine editor and fashion copywriter who understands publicity from multiple points of view. She has worked intimately closely with New York Fashion Week and Los Angeles Fashion Week. Through her creative pitches, she has launched everything from Banana Republic fashion collections to Procter and Gamble skin care products. The right connections, perfect pitches, and tenacious manner led to placement in numerous national magazines and other high-profile publications. For more information about Samantha Slaven Publicity, please visit www.samanthaslaven.com.

Freeman Company, exposition services: Since 1927, Freeman has been all about face to face marketing. They produce expositions, conventions, corporate events and exhibits, and provide official service contractor services for expositions, conventions, corporate events and exhibits. For more information about Freeman Company, please visit www.freemanco.com.

8. The Role of Lexus

As the third largest automaker, Lexus has much to gain from this historic event and its commercial and philanthropic windfalls to the Dallas community and the event's national exposure.

Dallas Fashion Week™ will assist you in building a globally balanced operational system and market attractive products that accurately reflect a demand that helped you sell a record 3.56 million vehicles worldwide on a consolidated basis in 2004. There is a huge potential for growth, and as your competition continues to intensify, your involvement in this event will place you strategically ahead of your competitors. Your logo will be seen worldwide in association with this high-profile event. For the six month period leading to September 30th, your company spent more than $1.5 million dollars on advertising and more than $3.1 million dollars on research.

In partnering with Dallas Fashion Week™, it will take less than 4% of your yearly marketing budget to reach a trendy, various-age demographic ranging from ages 18-65. As the official and preferred vehicle of this event, you will not be in a competitive environment. You will monopolize this event by having your vehicle presence everywhere. You will also be given a spacious booth, creating a presence to disperse your product literature to over 50,000 people. Lexus will be recognized as making history in Dallas, being part of a large charitable donation, and a partner in one of the greatest fashion events ever.

Furthermore, this event will powerfully serve to make consumers familiar with your legendary reputation. It will aid in helping consumers to know, that the quality they feel while driving a Lexus extends beyond your vehicles. It will aid in letting them know that, while you are passionate about your vehicles, you support their passion in life. Since 1989, the Lexus marquee has been become associated with quality and luxury. Dallas Fashion Week™, a marquee event, will be known for its exclusivity, perfection, and its innovation. While Dallas Fashion Week™ is also a debut event, it is the future of fashion. Like Lexus, Third Avenue does not just look to the future. We create it.

Our guests are passionate about life and their careers. This is why they will travel thousands of miles to attend this event. They are constantly seeking a new and rewarding experience. Designers, buyers, stylists, fashion editors, students, and many more individuals all comprise Dallas Fashion Week™. Third Avenue and Dallas Fashion Week™ anticipate joining you in a shared interest and a commitment to the "Passionate Pursuit of Perfection."