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PURCHASE POINT MEDIA CORPORATION
AGENCY AGREEMENT
This is an agreement between Purchase Point Media Corporation 00000 Xxxxxxx
Xxxxx, Xxx Xxxxx, Xxxxxxxxxx (hereinafter referred to as Purchase Point) and
Xxxxxx Associates, Ltd., 000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000 (hereinafter
referred to as Xxxxxx) for advertising and other marketing services in the
United States.
The following points serve as the key terms and conditions of this agreement.
SERVICES
x Xxxxxx will serve Purchase Point for one year 8/17/98 through 8/15/99.
o Specifically, Xxxxxx will study the Purchase Point business, provide plans
and recommendations related to marketing communications, create, produce and
place advertising and related materials needed to execute marketing plans.
o In return, Purchase Point will compensate Xxxxxx as outlined below.
AGENCY COMPENSATION
o Purchase Point will pay Xxxxxx a monthly fee of $25,000 for the first 3
months to cover start up project costs.
o For purchases from outside vendors of media time and space, Xxxxxx shall
charge gross cost with standard 16% agency commission based on projected
spending of $1,200,000.
x Xxxxxx shall xxxx Purchase Point studio fees for mechanicals, typesetting
and retouching, etc., according to the cost schedule mutually agreed to by
Purchase Point and Xxxxxx.
o For purchases from outside vendors of all production, research and
presentation materials and expenses, as well as other non-media purchases,
Purchase Point will pay Xxxxxx for out-of-pocket cost plus 15%.
o These fees shall be paid within 30 days from date of invoice for the term of
this agreement.
o If, however, there is a significant change in the scope of work (outlined in
exhibit 1) required of Xxxxxx by Purchase Point during the course of the
year, a review of Culver's compensation shall occur at such time.
o For additional work not covered by this agreement, Xxxxxx agrees to first
submit estimates for approval for art direction, graphic design, copy,
layout, trafficking of
AGENCY COMPENSATION (cont'd)
materials, and account management related to the development and production
of advertising creative.
BILLING PROCEDURES
o Purchase Point will pay for all media costs thirty (30) days from the date
of invoice with written approval of media authorization by Purchase Point.
o Final adjustment billing for both media and production will occur within
(80) days after project closure and receipt of vendor interests.
TERM
o This agreement shall become effective as of August 17, 1998.
o This agreement may be terminated by ninety days written notice given by
either party to the other.
AGREED:
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxxxxxxxxx Xxxxxx
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Date: May 14, 1998 Date: 8/14/98
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Xxxxxxxxxxx Xxxxxx
Xxxxxx Associates Ltd.