Advertising Production MediaBuying and Call Center Agreement.docx
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Advertising Production MediaBuying and Call Center Agreement.docx
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AdvertisingProductionMediaBuyingandCallCenterAgreement
ADVERTISINGPRODUCTION,MEDIA-BUYINGANDCALLCENTERAGREEMENT
Thisadvertisingproduction,media-buyingandcallcenteragreement
("Agreement")isenteredintoasofMarch28,2001,byandbetween
Futuredontics,Inc.,aCaliforniacorporationwithitsprincipalofficesat6060
CenterDrive,7thFloor,LosAngeles,California90045("Futuredontics")and
A,Inc.,aFloridacorporationwithitsprincipalofficeat186
ACourt,LakeHelen,Florida32744-0280("Attorneys").Futuredontics
andAttorneysjointlywillbereferredtointhisAgreementasthe"Parties".
RECITALS
Futuredonticshassubstantialexperiencein
(1)theproductionof
televisionadvertisementsdesignedtoelicitdirectresponsefromconsumers
("Advertisements");
(2)theplacementofAdvertisementsandbuyingthemedia
timetoruntheAdvertisementsthroughFuturedontics'affiliate1-800-Marketing,
Inc.;and(3)theoperationofatelephonecallcentertohandletheconsumer
callsgeneratedbytheAdvertisements.Attorneysisintheprocessoflaunching
anewmarketingprogramforlawyers,modeledcloselyonthebusinessmodel
establishedanddevelopedbyFuturedontics.
InOctober,2000,thePartiesenteredintoanagreementfor
FuturedonticstoprovideconsultativeservicestoAttorneysintheareasof
(1)
theoperationofdirectresponsemarketingprogramsforprofessionals;
(2)
marketingandsellingmembershipsinsuchprogramstoprofessionals;and(3)
promotingsuchservicestothepublic.Attorneysnowwishestoengage
FuturedonticstoproduceAdvertisements,buythemediatimetoairthose
Advertisements,andassistAttorneysintheformationofacallcenterfor
Attorneyspursuanttothefollowingtermsandconditions.Futuredonticswishes
tobesoengaged.
NOW,THEREFORE,thePartiesagreeasfollows("Agreement"):
TERMSANDCONDITIONS
1DUTIESOFFUTUREDONTICS.FuturedonticswillnotbeobligatedtodevoteanyspecificamountoftimeoreffortunderthisAgreement,butwilldevoteasmuchtime,effortandskillincarryingoutitsdutiesasnecessarytoachievetheParties'goalsinenteringintothisAgreement;provided,however,thatFuturedonticswillactwithallpossiblespeedinordertohelpAttorneysmeettheirdeadlines.
2CREATIONANDPRODUCTIONOFADVERTISEMENTS.FuturedonticswillcreatescriptsforAttorneys("Scripts"),whichAttorneyswillsubmittotheFloridaBar(the"Bar")forapproval.FromwhateverScriptsare
approvedbytheBar,Futuredonticswillproduce7English-languageAdvertisementsforAttorneys,3ofwhichwillalsobeproducedinSpanish("Advertisements").ThefeetoAttorneyswillbeFuturedontics'costtoproducetheAdvertisementsplus10%mark-up("ProductionCosts").TheProductionCostswillinclude,withoutlimitation,Futuredontics'out-of-pocketexpensesincurredintheproductionoftheAdvertisements;thecostoftimespentbyFuturedonticspersonnelinproducingtheAdvertisementsandmeetingwithAttorneyspersonnel;travelexpensesrelatedtotheproduction;FederalExpresscosts;andthecostoftapereproduction.ThePartiesanticipatethattheProductionCostswillbeapproximately$100,000.00.Futuredontics
willnotspendmorethan$125,000.00ontheProductionCosts,however,withoutfirstobtainingAttorneys'writtenauthorizationtoexceedthatamount.
2.1APPROVALBYATTORNEYS.FuturedonticswillsubmittheScriptsto
Attorneys,whichAttorneyswillapproveordisapprovewithin5businessdaysafterreceipt.OnceAttorneyshasapprovedtheScripts,AttorneyswillsubmittheScriptstotheBarforapproval.UponreceiptofapprovalfromtheBar,Attorneyswillselect7scriptsfromthoseapprovedbytheBarforproductionbyFuturedonticsinEnglish("ChosenScripts").Inaddition,Attorneyswilldesignate3oftheChosenScriptstobeproducedinSpanish.FuturedonticswillprovideAttorneyswithstoryboardsfortheChosenScripts("Storyboards"),whichAttorneyswillapproveordisapprove.AttorneysfailuretodisapproveoftheStoryboardsinwritingwithin5daysafter
receiptwillbedeemedapproval.
2.2LIABILITYFORILLEGALITYOFADVERTISEMENTS.Attorneyswill
provideFuturedonticswithadetaileddescriptionofthelegalrequirementsforadvertisingbylawyersinthejurisdictionsinwhichAttorneyswishestoairtheAdvertisements("LegalRequirements").WhileFuturedonticswilluseitsbestefforts
toensurethattheAdvertisementscomplywiththeLegalRequirements,afterAttorneys'approvaloftheScriptsunderSection2.1FuturedonticswillhavenoliabilityarisingfromthefailureoftheAdvertisementstocomplywiththeLegal
RequirementsandAttorneysalonewillbearanyandallsuchliability.
2.3DEPOSITFORPRODUCTIONCOSTS.UponexecutionofthisAgreement,
Attorneyswilldeposit$100,000.00withFuturedontics,whichFuturedonticswilldispenseasnecessaryduringtheproductionoftheAdvertisements(the"Deposit").IftheDepositinitsentiretyisdispensedbeforetheAdvertisementsarecompleted,
FuturedonticswillprovideAttorneyswithamonthlyaccountingofhowtheDepositwasspent,andAttorneyswillmakeanadditionaldepositwithFuturedontics.TheamountoftheadditionaldepositwillbedeterminedbythePartiesatsuchtimeastheadditionaldepositbecomesnecessary.
2.4FINALACCOUNTING.WhentheAdvertisementshavebeencompleted,
FuturedonticswillprovideAttorneyswithafinalaccountingoftheProductionCosts("FinalAccounting").IfanybalanceisowedtoFuturedonticsinexcessoftheDeposit,AttorneyswillremitsuchbalancetoFuturedonticswithin30daysafterreceiptofthefinalaccounting.IfanybalanceisowedbyFuturedonticstoAttorneys,FuturedonticswillremitsaidbalancetoAttorneysalongwiththeFinalAccounting.
3MEDIA-BUYING.
3.1TERMOFEXCLUSIVEENGAGEMENT.Attorneysherebyengages
Futuredonticsasitsexclusivemedia-buyingagencyforaperiodoftwoyearsbeginningonthefirstdayofthefirstmonthforwhichFuturedonticsfirstbuysmediaforAttorneys("ExclusiveEngagementTerm").Bywayofexamplebutnotlimitation,iftimeisfirstboughtforAttorneys'AdvertisementstoruninJuneof2001,theExclusiveEngagementTermwillbeginonJune1,2001andterminateonMay31,2003,unlessthemedia-buyingrelationshipisterminatedsoonerforcausepursuanttoSection3.8below.
3.2MEDIA-BUYINGDUTIESOFFUTUREDONTICS.OnbehalfofAttorneys,
FuturedonticswillpurchaseairtimefortherunningoftheAdvertisementsinaccordancewithamonthlymedia-buyingplantobeagreeduponbythepartiesmonthlyinadvance("Media-buyingServices").ThePartieswillagreeonthegross
monthlybudgetnolessthanthirty-fivedaysprecedingthemonthconcerned("GrossMediaBudget").ThecosttoAttorneyswillbe95%oftheGrossMediaBudgetandAttorneyswilldepositwithFuturedontics95%oftheGrossMediaBudgetnolessthan30dayspriortothestartofthatmonthinwhichthemediaistobebroadcast("AdvertisingMonth").FuturedonticswillhavenoobligationtobuythemediaunlessAttorneys'depositisreceivedatleast30dayspriortothestartoftheAdvertisingMonth.InadditiontoMedia-buyingServices,Futuredonticswill
(1)trafficcopiesoftheAdvertisementstothevariousmediaoutletsthatarechosenintheGrossMedia
Budget;
(2)provideAttorneyswithweeklyreportsbasedonthecallcenterdataavailabletoFuturedontics;and(3)provideAttorneyswithcopiesofallgrossinvoicesfrommediaoutletsforwhichAttorneyshasbeencharged.
3.3AUTHORIZATIONTOACT;APPROVALS.Uponthewrittenauthorization
ofAttorneys'ChiefExecutiveOfficerorChiefOperatingOfficer,FuturedonticsisauthorizedtoactonbehalfofAttorneysinthepurchasingofadvertisingandotherformsofcommunications.Attorneysagreestoberesponsiblefornon-cancelablecontractsandincidentalchargesrelatedtosuchadvertisingandcommunications.
3.4CHANGESANDCANCELLATIONS.Attorneysmayrequestchangesor
cancellationsorrequirethataworkinprogressbestopped;provided,however,thatAttorneyswillreimburseFuturedonticsforanyunrecoverableexpense(s).Ingeneral,thenoticerequiredtocancelorchangeamediabuyisthreeweekspriortothebroadcastdate.
3.5INDEMNIFICATIONOFFUTUREDONTICSBYATTORNEYS.FuturedonticsisactingsolelyasAttorneys'agentintheplacementofAttorneys
Advertisements.Assuch,itisauthorizedbyAttorneystopurchaseadvertisingspacewithinbudgetandAttorneysagreestoindemnify,holdharmlessanddefendFuturedonticsfromandagainstanyliabilityincurredbyFuturedonticswhileactingas
Attorneys'agent.Bywayofexample,butnotlimitation,AttorneyswillindemnifyFuturedonticsagainstanylossincurredasaresultofclaimsorproceedingsbroughtagainstFuturedonticsbasedonadvertisingapprovedbyAttorneysforpublicationorbroadcast.
3.6FEE.Futuredonticswillretain10%oftheGrossMediaBudgetascompensationforitsservicesinconnectionwithmedia-buying("Media-buyingFee").Intheeventthatmediaoutlet(s)offertoruntheAdvertisementsandpayacommissioninexcessof15%toFuturedontics,AttorneysandFuturedonticswillsplitthecommissiontotheextentthatitexceeds15%oftheGrossMediaBudget.
3.7EXPENSES.InadditiontopayingFuturedonticstheMedia-buyingFee,AttorneyswillreimburseFuturedonticsforallout-of-pocketcostsarisinginconnectionwithmedia-buying.Suchexpenseswillinclude,withoutlimitation,FederalExpresschargesfortraffickingAdvertisementstomediaoutletsandpayingmediainvoicesonAttorneys'behalf.FuturedonticswilladvancesuchexpensesandsubmitinvoicestoAttorneysforreimbursementaccompaniedbysupportingdocumentation.Attorneyswillreimbu
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