EXHIBIT 10.6
THE MARKETING SOURCE, INC.
AGENCY SERVICES AND CHARGES
AGREEMENT made this 3rd day of June, 2005 between Muslim Media Network and
The Marketing Source Inc., advertising agency.
I. AGENCY RESPONSIBILITIES
a) To formulate, develop and submit advertising and promotion ideas,
plans, programs and campaigns and in some cases public relations
programs.
b) To produce (including copy, finished art, electronic files, production
supervision, and printing materials) and release to publications in
accordance with approved advertising schedules.
c) To produce (including copy, finished art, electronic files, production
supervision) and deliver finished printed materials such as brochures,
literature, mailers, point-of-purchase materials and other collateral
and merchandising materials as may be directed.
d) To produce, or arrange for production of outdoor advertising materials
including painted boards and printed posters.
e) To produce, or arrange for production, including auditioning of talent,
preparation of props and other necessary materials for all radio and
television commercials, audio visuals and training films.
f) To evaluate and present media recommendations covering all media and to
reserve, contract for and arrange space, time and facilities with the
various media.
g) To provide a range of marketing and research services including such as
product evaluation, motivational research, market analysis, etc., on a
direct basis or through other research firms.
II. AGENCY COMPENSATION
a) All creative time...copy, layout and production supervision...shall be
billed at $95 per hour.
1
b) In all space and time media which allow an agency commission of at
least 15%, The Marketing Source shall receive the 15% commission. On
non-commissionable media, or where the commission is less than 15%, the
agency shall receive a commission of 17.65% of the media cost to allow
a 15% net commission to the agency.
c) In outdoor advertising where the standard commission to the agency is
15%, the agency will receive the same.
d) All outside purchases such as typography, 4-color negatives, veloxes,
signs, printing, broadcast and print talent, etc., shall be rebilled at
cost plus 17.65%.
e) Art illustration done in-agency shall be rebilled at $95 per hour. All
art purchased outside the agency shall be rebilled at cost plus 17.65%.
f) Marketing consultation services shall he billed at $95 per hour. This
shall be agreed on in advance, where applicable.
g) Research shall basically be a flexible charge. When handled directly by
the agency, time shall be billed at $95 per hour including supervision,
preparation, field work. evaluation and publishing of results.
In those cases where the agency shall be involved in the supervision
and/or preparation and the balance of the projects contracted out to
independent research firms, the agency shall xxxx the project at cost
plus 17.65% to allow a net 15% commission to the agency.
h) For such out of. pocket expenses as packing, shipping, mailing,
delivery and long distance telephone calls on the client's behalf,
these expenses shall be rebilled at cost without markup.
i) All out-of-town travel expenses and lodging incurred in the client's
behalf shall he rebilled at cost, without agency xxxx-up.
j) Public Relations shall be billed at $95 per hour for a senior
manager/writer and $85 per hour for a junior manager/writer, plus all
out-of-pocket expenses. Such costs may include entertainment of media
personnel pertinent to the placement of public relations material.
l) Executive management meeting time, where applicable, shall be charged
at a rate of $95 per hour. This charge shall apply to client meetings
only. Internal agency meetings shall be covered by commissions.
m) All agency invoices are due and payable within 30 days from date of
invoice.
n) In the event there is no commissionable media and/or commissions are
insufficient to cover account administration and media expenses, the
following; items will be billed on an hourly as utilized basis.
Executive Management $ 95 Per Hour
Account Supervision $ 95 Per Hour
Account Executive $ 95 Per Hour
Media Evaluation/Planning $ 75 Per Hour
Media Placement &. Checking; $ 65 Per Hour
Office/Clerical $ 40 Per Hour
2
These charges will continue until media commissions cover the
above-mentioned expenses and offer the agency a reasonable profit
margin.
o) For new clients, where the business has no historical track record of
payment, The Marketing Source will not front substantial sums of money
or act as a financial credit source. We operate on a 1/3, 1/3, 1/3
billing schedule explained as follows:
The first one-third payment shall be paid upon initiation of agency
services. This advance payment shall in-effect guarantee The Marketing
Source will be partially compensated for its stock in trade creativity.
At the same time, The Marketing Source shall guarantee that agency
services will be completed and revised if necessary, to the client's
satisfaction.
The second one-third payment shall he due and payable upon delivery of
the finished product(s) to the client. Such payment will enable The
Marketing Source to cover all outside supplier expenses whose invoices
are due and payable within 30 days of being rendered.
The third one third payment shall be due and payable within 30 days
after delivery of the finished product(s) to the client.
For media xxxxxxxx, until such time as a credit payment history is
established with The Marketing Source, payment is required "up front"
before any media is placed on behalf of the client.
Once a credit payment history is established, a credit limit will he
established and all invoices will become clue and payable within 30
days of receipt of same invoices. If the credit limit is exceeded and
due, all agency work on projects or assignments will cease until the
credit limit is honored.
III. TERMS OF THE AGREEMENT
a) This agreement shall become effective on the 3rd day of June, 2005.
b) This agreement may be terminated by either party upon not less than
sixty (60) days written notice given by either party to the other and
sent by registered mail to the principal place of business of the party
to whom such notice is addressed.
c) In the event of termination, the rights, duties and responsibilities of
both parties shall continue during the period of notice. The agency
schedule of compensation as set forth in this agreement shall continue
in full force during the period of notice.
d) Upon termination of this contract, the agency will xxxx the client for
all amounts not previously billed and/or paid, and the agency will
deliver to the client all materials and properties and information
regarding termination of contracts in the client's behalf.
3
e) Upon termination of this contract, the client agrees to pay all agency
invoices not paid within 30 clays of receipt of same invoices.
IV. AGREEMENT
In witness whereof, the parties hereto each by duly authorized officer,
have set their hands this 3rd day of June, 2005.
By: /s/ Xxxxxxx Xxxxx
-----------------------
Title: President
THE MARKETING SOURCE
By: /s/ A. S. Nakadar
-----------------------
Title: CEO and President (A. S. Nakadar)
Client: Muslim Media Network
4