MEDIA PRODUCTION AND PLACEMENT AGREEMENT
Exhibit
10.18
Media4Equity
LLC, Falls Church
Virginia Media
Production and Placement Agreement
This
Media Production and Placement Services Agreement, (the "Agreement") is entered
into on the date indicated on the signature page (the "Effective Date"),
by and
among the Company (as defined on the signature page), and Media4Equity LLC,
a
Nevada corporation. ("M4E") (Company and M4E collectively the
"Parties")
Whereas
M4E produces and distributes nationally syndicated print and broadcast features
for its clients in exchange for equity positions in client businesses, and
Company desires to utilize M4E's services to act as production and placement
agency for Company's print and broadcast media campaign, the Parties therefore
agree as follows:
1. MEDIA
DUE.
In
consideration of the irrevocable Stock Transfer(s) hereunder, M4E shall
irrevocably transfer a certificate (the "Media Due Xxxx") to the Company.
The
Media Due Xxxx shall be redeemable, exclusively by the Company, for an Ad
Value
Equivalent (defined in Section 3(C) below) of five hundred thousand dollars
($500,000.00).
2. CAMPAIGN
A. CONSULTATION.
M4E shall consult with Company regarding the content of the media campaign.
M4E
shall
develop, write, edit and deliver proofs of any and all print media and any
radio
scripts to Company for Company's inspection and timely approval (print media
and
radio scripts collectively the "Copy"). No radio or print feature shall
be distributed without Company approval. M4E shall not be liable for
the Company's failure to review and approve Copy on a timely basis, or for
any
actions or inactions of the Company.
B. CONTENT.
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i.
Print Features. Each Print Feature shall consist of a news story
that
features the Company's name, product, contact information, web
address
and/or ticker symbol.
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ii.
Radio Features. Each Radio Feature shall consist of two 30-second
nationally syndicated radio scripts under one heading. Each Radio
Feature
will be specifically about the Company and written and read by
radio media
professionals.
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C. DISTRIBUTION.
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i.
All print media approved by Company for distribution pursuant to
Section
2(A) hereof, shall be distributed on computer disks, by direct
electronic
feed, in a hard copy camera-ready format or over the internet to
over ten
thousand (10,000) daily and weekly newspapers, news, and wire services.
The newspapers, news, and wire services shall have the option of
running
the news stories free of copyright, fees or other
charges.
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ii.
All radio features approved for distribution by Company pursuant
to
Section 2(A) hereof, shall be nationally syndicated radio features
specifically about the Company. Radio feature scripts shall be
written by
media and radio professionals and read by radio professionals.
Scripts
and/or audio recordings shall be sent to over six thousand (6,000)
radio
stations in the United
States.
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3. M4E'S
PERFORMANCE
A.
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Redemption
of Media Due Xxxx. The Company shall have three (3) years to
commence redemption of the Media Due
Xxxx.
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B.
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During
the Redemption Period M4E shall produce and distribute
nationally syndicated newspaper features and/or nationally syndicated
radio features on behalf of Company. The features shall be
valued as an Ad Value Equivalent, and the Ad Value Equivalent of
the
respective features shall be applied against the Media Due
Xxxx. The entire value of the Media Due Xxxx shall be utilized
within one calendar year, commencing on the date the Company first
reviews
and approves copy pursuant to Section 2(A) herein, and in no case
commencing later than three (3) years from the Effective Date
hereof.
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C.
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For
purposes of this Agreement, the Ad Value Equivalent of each aired
radio
feature and each published newspaper feature shall
be equivalent to each
respective radio station's or newspaper's
official ad rate pricing
policies.
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2
Media4Equity
LLC, Falls Church
Virginia
Media
Production and Placement Agreement
D.
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Media
Selection may be allocated in any proportion between print features
and
radio features as the
Company may elect in its sole
discretion.
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E.
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Print
Feature Placement Guarantee. Each print feature shall receive placements
in a minimum of one
hundred (100) newspapers within a six (6) month period of Company
approval
of the feature. In
the event that a print feature does not meet the minimum placement
guarantee, M4E shall
re-write and/or re-distribute that feature at no cost to the Company
until
the guaranteed minimum
of one hundred (100) placements is
obtained.
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F.
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Radio
Feature Placement Guarantee. Each radio feature shall be aired
on at least
four hundred (400)
radio stations within a six (6) month period of Company approval
of the
feature. In the event
that a radio feature does not meet the minimum placement guarantee,
M4E
shall re-write and/or
re-distribute that feature at no cost to the Company until the
guaranteed
minimum of four hundred
(400) placements is
obtained.
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G.
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Reports.
M4E shall deliver reports detailing reach and value of print and
radio
features. M4E shall
send weekly reports to the Company beginning ten (10) weeks from
the
distribution date, and
continuing for a period of one (1) year. Reports shall include
comparable
advertising values, estimated
listener and readership information, and actual newspaper clippings
of all
reported published
print
features.
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H.
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The
Ad Value Equivalent of all published news features and all broadcasted
radio features shall be set off against the Media Due Xxxx notwithstanding
any Company error in Copy approval or any subsequent editing by
newspapers, radio broadcasters, or any other third
parties.
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4. COMPANY
PERFORMANCE
A.
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The
Company shall consult with M4E pursuant to Section 2(A) herein
to provide
M4E with information
necessary to write Copy for Company's review. The Company
agrees to consult with
M4E and accept Copy for review no later than three (3) years from
the
Effective Date hereof.
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B.
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The
Company shall make a good faith effort to approve or submit corrections
to
all Copy within seventy
two (72) hours of receipt thereof. Failure of Company to
approve or return corrected Copy
within one (1) week of receipt by Company shall constitute a material
breach of this Agreement.
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5. STOCK
TRANSFER
A.
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In
consideration of M4E's performance hereunder, Company shall immediately
transfer to M4E two
million five hundred thousand (2,500,000) restricted shares of
Company's
common stock (the
"Shares"). On the first business day immediately following one
year anniversary of the Effective
Date hereof, if the Shares shall have a Market Value of less than
two
hundred fifty thousand
dollars ($250,000.00), the Company shall on that day issue a number
of
shares of the Company's
common stock necessary to restore the value of all shares transferred
hereunder to two
hundred fifty thousand dollars ($250,000.00). All Shares
transferred hereunder shall be restricted
shares, effective as of the Effective Date. M4E's continued performance
is
contingent on
Company's full performance of all share transfers contemplated
hereby.
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B.
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Upon
the execution of this Agreement, the Company shall issue a resolution
of
the Board of Directors
of the Company (Attached Exhibit A) and instructions to the Company's
transfer agent (Attached
Exhibit B) effecting the provisions of Section 6(A) herein (the
"Resolution"). The Company
shall immediately deliver: (i) one copy of the Resolution to M4E;
and (ii)
one copy of the
Resolution to the Company's transfer agent with instructions to
issue the
Shares in accordance
with Section 6(A) herein. Failure of Company to fully perform Section
6(A)
or this Section
6(B) shall be a material breach and shall excuse any further performance
by M4E under this
Agreement.
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C.
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The
Parties acknowledge and agree that: (i) the rights and obligations
defined
by this Agreement
become binding upon execution of this Agreement; and (ii) the
consideration for
all Shares transferred hereby, regardless of the date of transfer,
is
M4E's obligations hereunder,
and M4E's interest in all Shares transferred hereunder immediately
and
irrevocably
vests in M4E upon the execution of this Agreement; and (iii) the
effective
date of
all Shares transferred hereby, regardless of the date of transfer,
shall
be the Effective Date
hereof, and the tolling of any and all time periods relating to
the
Shares, including but
not limited to those relating to any restriction, shall be calculated
from
the Effective Date
hereof; and (iv) all Shares transferred hereby shall be fully paid,
non
assessable, common
shares of the Company, and shall be transferred at par value; and
(v) no
Shares
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4
Media4Equity
LLC, Falls Church
Virginia
Media Production and Placement
Agreement
transferred
hereby shall be blocked in any way or subject to rescission or cancellation
for
any reason including, but not limited to either Party's performance, partial
performance, or any default in the performance of any provisions of this
Agreement.
6. SHARE
VALUATION.
For
the
purposes of this Agreement, the Market Value of the restricted stock shall
be
calculated as ninety percent (90%) of the arithmetic average of the closing
price of the Company's Common Stock for the five (5) trading days immediately
preceding the date of the Initial Transfer, or any subsequent Valuation Day,
as
reported daily by the principal national or regional stock exchange on which
the
common stock is listed.
7. REGISTRATION
RIGHTS.
A.
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If,
at any time or from time to time after the Effective Date the Company
proposes to file a registration
statement covering any Securities of the Company, other than an
offering
registered on
Form S-8 or Form S-4 (or successor forms relating to employee stock
plans
and certain business
combinations), the Company shall, not less than thirty (30) days
prior to
the proposed filing
date of the registration statement, give written notice of the
proposed
registration to M4E, specifying
in reasonable detail the proposed transaction to be covered by
the
registration statement
and, at the written request of M4E delivered to the Company within
twenty
(20) days after
notice from the Company, shall include in such registration and
offering,
and in any underwriting
of such offering, all Common Stock as may have been designated
in M4E's
request.
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B.
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In
the event that the Company is required to include the Shares in
a
registration statement pursuant
to Section 7(A) herein, and the Company fails to register the Shares,
or
if the Shares are
or become eligible for sale pursuant to Rule 144 and the Company
does not
provide all required
documents, including but not limited to any required legal opinion
letter
to remove stock
restrictions, within one week of written request from M4E, the
Company.
shall pay as liquidated
damages to M4E, in legal tender of the United States, an amount
equal to
five percent (5%)
of the total value of this Agreement, for every thirty (30) day
period
until the restrictions are
lifted. The Parties hereto agree that damages due to
Company's breech hereunder are difficult
to determine as of the Effective Date, and the Liquidated Damages
hereunder are meantto
approximate M4E's damages, and are not
punitive.
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8. DEFAULT
A. Any
failure of the Company to (i) transfer Stock as required by Section 6 herein;
(ii) to timely review
and approve Copy or scripts supplied by M4E for review; or (iii) act in good
faith to effectuate the terms of this Agreement, shall constitute a default.
Upon Company's default, all amounts due M4E hereunder shall be due and payable,
and M4E may in its sole discretion immediately suspend performance and terminate
this Agreement.
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9. TRANSFER
AGENT
A.
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Buyer
agrees that Pac West Transfer LLC (the "Transfer Agent") shall
act as the
Company's sole
transfer agency, and Transfer Agent shall have full power and authority
to
act on behalf of the
Company in connection with the issuance, transfer, exchange and
replacement of all of the Company's
stock certificates beginning no later than the Effective Date hereof,
and
continuingfor
a period of one year, or until all Share transfers contemplated
hereby
have been
effected.
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B.
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Company
agrees to accept and represent to Company's transfer agent as valid,
any
opinion letter
from M4E's counsel regarding restricted stock
status.
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10. NON
DISCLOSURE OF CONFIDENTIAL INFORMATION
A.
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Confidential Information. For the purposes of
this Agreement, the expression "ConfidentialInformation"
means all information of any nature previously, presently, or subsequently
disclosed by one
party (the "Disclosing Party") to the other party (the "Receiving
Party"),
relating to the Disclosing Party's
business, including, but not limited to information concerning
any
entities and/or Interested Parties
and any analyses, compilations, studies other documents which contain
or
otherwise reflect or are
generated from such information, all information relating to business,
financial, customer and product
development plans, forecasts, lists, methods, strategies, compilations
and
other information,inventions
and ideas, including without limitation, ideas, know how, inventions
(whether patentable or not),
schematics and other technical information. However, Confidential
Information does not includeany
information that is generally known in the Receiving Party's industry
at
the time of the signing of this
Agreement, any information that the Receiving Party rightfully
had in its
possession prior to the disclosure
of such information to the Receiving Party by the Disclosing Party,
or any
information disclosed
after the termination of this
agreement.
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B. The
Disclosing Party Shall:
i. Keep
all Confidential Information secret and confidential;
6
Media4Equity
LLC, Falls Church
Virginia
Media
Production and Placement Agreement
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ii.
Not use any Confidential Information to obtain any financial, commercial,
trading and/or other advantage, but rather use Confidential Information
for the sole purpose of effectuating the mutual transaction(s)
contemplated hereby;
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iii.
Not disclose Confidential Information to any third party whatsoever
except
as necessary to effectuate the terms of this
Agreement.
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11. INDEMNIFICATION
Company
shall indemnify and hold harmless M4E its agents, employees, legal
representatives, heirs, executors or assigns from and against any and all
losses, damages, expenses and liabilities (collectively "Liabilities") or
actions, investigations, inquiries, arbitrations, claims or other proceedings
in
respect thereof, including enforcement of this Agreement (collectively
"Actions") (Liabilities and Actions are herein collectively referred to as
"Losses"). Losses include, but are not limited to all reasonable legal fees,
court costs and other expenses incurred in connection with investigating,
preparing, defending, paying, settling or compromising any suit in law or
equity
arising out of this Agreement or for any breach of this Agreement
notwithstanding the absence of a final determination as to a Company's
obligation to reimburse any of M4E Covenantees for such Losses and the
possibility that such payments might later be held to have been
improper.
12. GOVERNING
LAW / JURISDICTION.
A. Subject
to the terms and conditions of Section 11 herein, any dispute, disagreement,
conflict of interpretation
or claim arising out of or relating to this Agreement, or its enforcement,
shall
be governed
by the laws of the Commonwealth of Virginia. Company and M4E hereby irrevocably
and
unconditionally submit for themselves and their property, to the nonexclusive
jurisdiction of Federal
and State courts of the Commonwealth of Virginia and any appellate court
thereof, in any
action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of
any judgment, and each of the parties hereto
hereby irrevocably and unconditionally
agree that all claims in respect of any such action or proceeding may be
heard
and
determined in such Virginia State, or, to the extent permitted by law,
in such
Federal court. Each
of
the parties hereto agree that a final judgment in any such action or proceeding
shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in
any
other manner
provided by law.
B. Each
of the parties hereto irrevocably and unconditionally waive, to the fullest
extent it may legally
and effectively do so, any objection which it may now or hereafter have
to the
laying of venue
of
any suit, action or proceeding arising out of or relating to this Agreement
in
any court referred
to in Section 14(a) above. Each of the parties hereto hereby irrevocably
waive,
to thefullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action
or
proceeding in any such court. Each party to this Agreement
irrevocably consents to service
of process in the manner provided for notices below. Nothing in this
Agreement will affect
the right of any party to this Agreement to serve process in any other
manner
permitted by law. Each
party hereto hereby waives, to the fullest extent permitted by applicable
law,
any right
it
may have to a trial by jury in any legal proceeding directly or indirectly
arising out of or relating
to this agreement or the transactions contemplated hereby (whether based
on
contract, tort
or
any other theory). Each party hereto:
(i) certifies
that no representative, agent or attorney of any other party has represented,
expressly
or otherwise, that such other party would not, in the event of litigation,
seek
to enforce the foregoing waiver; and
(ii) acknowledges
that it and the other parties hereto have been induced to enter into this
Agreement by, among other things, the mutual waivers and certifications in
this
paragraph.
13. TERM/TERMINATION.
A. Term.
The terms of this Agreement shall be effective as of the Effective Date,
and
continue until the
later
of (i) one (1) year from the date the Company first approves media for
placement
(which approval
shall not be unreasonably withheld); or (ii) three (3) years from the Effective
Date. The terms,
conditions, and obligations of Sections 11, 12(A) and 12(B) hereof shall
survive
the termination
of this Agreement.
B. As
the execution of this agreement triggers the reallocation of M4E's staff
and
resources, the Company
may not terminate or cancel this Agreement prior to the expiration of the
Term
set forth in
Section 13(A) herein.
14. SUCCESSORS
AND ASSIGNS.
The
Parties may not assign their rights or obligations hereunder except that
M4E may
in its sole discretion assign the right to receive any compensation due
hereunder including without limitation any and all interest in the
Shares.
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Media4Equity
LLC, Falls Church
Virginia Media
Production and Placement Agreement
15. COUNTERPARTS.
This
Agreement may be executed in two or more counterparts, each of which shall
be
deemed an original, but all of which together shall constitute one and the
same
agreement. A telefaxed copy of this Agreement shall be deemed an
original.
16. HEADINGS
The
headings used in this Agreement are for convenience of reference only and
shall
not be deemed to limit, characterize or in any way affect the interpretation
of
any provision of this Agreement.
17. COSTS
Each
party hereto shall bear its own costs in connection with the preparation,
execution and delivery of this Agreement.
18. MODIFICATIONS
AND WAIVERS
No
change, modification or waiver of any provision of this Agreement shall be
valid
or binding unless it is in writing, dated subsequent to the Effective Date
of
this Agreement, and signed by both the Company and M4E. No waiver of any
breach,
term, condition or remedy of this Agreement by any party shall constitute
a
subsequent waiver of the same or any other breach, term, condition or
remedy.
19. SEVERABILITY
If
one or
more provisions of this Agreement are held to be unenforceable under applicable
law, such provision(s) shall be excluded from this Agreement and the balance
of
the Agreement shall be interpreted as if such provision(s) were so excluded
and
shall be enforceable in accordance with its terms.
20. ENTIRE
AGREEMENT
This
Agreement constitutes the entire agreement and understanding of the parties
with
respect to the subject matter hereof and supersedes any and all prior
negotiations, correspondence, agreements, understandings duties or obligations
between the parties with respect to the subject matter
hereof.
21. FURTHER
ASSURANCES
From
and
after the date of this Agreement, upon the request of M4E, the Company shall
execute and deliver such instruments, documents or other writings as may
be
reasonably necessary or desirable to carry out and to effectuate fully the
intent and purposes of this Agreement.
22. NOTICES
All
notices or other communications required or permitted by this Agreement shall
be
in writing and shall be deemed to have been duly received: (i) if given by
telecopier, when transmitted and the appropriate telephonic confirmation
received if transmitted on a business day and during normal business hours
of
the recipient, and otherwise on the next business day following transmission,
(ii) if given by certified or registered mail, return receipt requested,
postage
prepaid, three business days after being deposited in the U.S. mails, or
(iii)
if given by courier or other means, when received or personally delivered,
and,
in any such case, to the address and contacts indicated on the signature
page.
23. FORCE
MAJEURE
Neither
party will be in default or otherwise liable for any delay or failure in
its
performance under this Agreement where such delay or failure arises by reason
of
an Act of God, or any government or governmental body, acts of war, the
elements, strikes or labor disputes, power or system failures, failure of
the
Internet, computer hacking, or other causes beyond the reasonable control
of
such party.
[SIGNATURE
PAGE FOLLOWS]
8
Media4Equity
LLC, Falls Church
Virginia Media
Production and Placement Agreement
In
Witness Whereof, the parties hereto have executed this Agreement on
______________ 20__:
M4E:
COMPANY:
__________________ ______________________
Signature_____________________ Signature Title
____________________________________________
Media4Equity, LLC Full Legal Name (PRINT)
Media4Equity, LLC Full Legal Name (PRINT)
Xxxx
Xxxxx, CEO/President
0000
Xxxxxxxx Xxxx
#000
____________________________________________
Xxxxx
Xxxxxx,
XX 00000
Company Name
O:
(000)
000-0000
F:
(000)
000-0000
____________________________________________
C:
(000)
000-0000 Ticker
Symbol
Email
xxxxxx@Xxxxx0Xxxxxx.xxx
____________________________________________
Number Street
____________________________________________
City State Zip
City State Zip
____________________________________________
Phone
Phone
___________________________________________
Fax
Fax
___________________________________________
Email
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Media4Equity
LLC, Falls Church
Virginia
Client
Company Profile
COMPANY
PROFILE
Must
be completed and submitted with executed Agreement)
________________________________________________
______________________________________
Company Name State of Incorporation
Company Name State of Incorporation
_______________________
Tax
ID
Number
_____________________
_____________________________________
Ticker Symbol Transfer Agent Name
Ticker Symbol Transfer Agent Name
____________________________________________________________________________________________________
Transfer Agent Address City State Zip
Transfer Agent Address City State Zip
CREDIT
CARD (circle
one) VISA MASTERCARD
NUMBER____________________ EXP
DATE___________ 20____
_______________________________
CVC CODE (3 digit code on back of card
_______
Name
as it appears on card
___________________________________________________________________________
Billing address of card
Billing address of card
Officers:
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Directors:
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Name
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Title
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Title
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Name
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Title
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_____________________
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Name
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Title
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Name
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Title
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Legal
Counsel Representing Company
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Other
Persons Authorized to Receive Documents and to Act on Company’s
Behalf
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