EXHIBIT 10.69
ICON
INTERNATIONAL INC
Xxxxx illegible October 21, 1997
President
Xx. Xxxx Xxxxx
Heartland Communication Management, Inc.
0000 Xxx Xxxxx Xxxxxx Xxxx
Xxxxx 000
XxXxxx, Xx 00000
Dear Xxxx,
This provides a letter of agreement to enter into a barter trade contract
with HCMI and its affiliate, Xpress Ventures and its publication, The
National Sports Weekly, which is to begin publication in September 1998. The
barter trade agreement between Icon International and HCMI would be
structured as follows.
Icon International agrees to purchase a minimum of 24 (P4C or BW) insertions
in the National Sports Weekly within the first year of publication, and 24
(P4C or BW) insertions in each of the following four years (120 insertions
over five years). Insertions may be used in the calendar year acquired, or
their media value held for use at a later date, with no expiration.
The National Sports Weekly agrees to charge Icon International 40% (net) of
the open gross rate card. The following provides an estimate of the open and
Icon rates based on estimated circulation rate bases. The payment made by
Icon is to be a mix of 75% trade credits and 25% cash.
Rate Open Icon Icon
Base* CPM CPM P4C Rate
----- ------ ---- --------
Year 1 10 mil $11.00 $3.85 $ 38,500
Years 2 20 mil $11.00 $3.85 $ 77,000
Years 3 30 mil $11.00 $3.85 $115,500
Years 4 30 mil $11.00 $3.85 $115,500
Years 5 30 mil $11.00 $3.85 $115,500
*Subject to ABC Audit verification.
Based on the circulation estimates, Icon's minimum space commitments are
valued as follows:
Yearly Total Trade Cash
Ins P4C Rate Amount Amount Amount
--------- ---------- ----------- ------------ -----------
Year 1 24 $38,500 $924,000 $693,000 $231,000
Year 2 24 $77,000 $1,848,000 $1,386,000 $462,000
Year 3 24 $115,500 $2,772,000 $2,079,000 $693,000
Year 4 24 $115,500 $2,772,000 $2,079,000 $693,000
Year 5 24 $115,500 $2,772,000 $2,079,000 $693,000
---------- ------------ -----------
$11,088,000 $8,316,000 $2,772,000
HCMI or Xpress Ventures or the National Sports Weekly will use the trade
credits to purchase media (at a mix of 75% cash, 25% trade credits) and/or
other goods and services at rates to be negotiated at the time of purchase.
The trade credits could be used up to three years following the calendar year
earned. (Example: credits earned September 98 must be used by September 01).
Trade due by Icon may be used upon receipt and is deemed to be earned on a
monthly basis. Cash due by Icon may be named off the cash due Icon for media
schedules placed, at Icon's sole option. If HCMI or its affiliates delay to
use their trade credits, the cash due by Icon shall not be payable until such
trade credits are used.
This agreement is subject to consummation of a more detailed legal agreement
between the parties.
/s/ Xxxxxxx Xxxxx /s/ X. X. Xxxxxxxx
------------------------ ------------------------
Accepted Xxxxx X. Xxxxxxxx
