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Kenwood Cove Marketing Agreement CONTRACT MARKETAIDE p.o. Box 500 SAUNA, KS 67402-0500 PHONE 785-825-7161 FAX 785-825-4697 CREATIVE ADVERTISING COMMUNICATIONS TO: Chris Curtis Deparbnent of Parks and Recreation 300 W. Ash, Room 100 Salina. KS 67401 MarketAide hereby agrees to serve as your advertising agency in accordance with and subject to the following tenns and conditions: AGENCY SERVICES We will provide the services usually rendered by an advertising agency, including the following: 1. Employ on your behalf our knowledge of the available media and means which can profitably be used to advertise your products. 2. Acting on the study, analysiS and knowledge described above, formulate and recommend advertisinglpromotion plans. 3. In the execution of this plan, when approved by you, we will do the following: a Order the space, time or other means to be used for your advertising, endeavoring to secure the most advantageous rates available. b. Properly incorporate the message in mechanical or other form and forward it with proper instructions for the fulfillment of the order or at our option, formulate and provide the necessaIy mechanical advertising production instructions to the radio stations, television stations~ or publication offices so that they may complete the required advertising production and fulfill the order. c. Check and verify insertions, displays, broadcasts or other means used, to such degree as is usually performed by agencies. d. Audit invoices for space, time, preparation and services. Page I of5 CONTRACT GENERAL PROVISIONS We agree to refrain during the life of this agreement from acting as advertising agency for other Pool or Aquatic Center competitors without your written consent You agree to refrain from engaging the services of any other advertising agency without first obtaining our written consent We agree to devote our best efforts to your interests, and to endeavor in evet)' way to make your advertising successful, and you agree to aid us in doing so by making available to us needed information pertaining to your business and to cooperate with us in expediting our work. We agree to secure your approval of all expenditures in connection with your advertising. We will keep in our care for a reasonable length of time advertising materials entrusted to us as your property and will use reasonable precaution to secure their return from third parties. You reserve the right. in your best interest, to modify, reject, cancel or stop any and all plans, schedules or work in process; and in such event we shall immediately take proper steps to carry out your instructions; but you agree to assume our liability for all commitments, and to reimburse us for any losses we may sustain derived therefrom, and for all expenses to pay us any service charges relating thereto, in accordance with provisions of this agreement. Nothing in this agreement shall be construed as committing us to violate any lawful contractual commitments to media. We will endeavor to the best of our knowledge and ability to guard against any loss to you through failure of media or suppliers properly to execute their commitments, but we shall not be held responsible for any failure on their part. We shall obtain releases, licenses, permits or other authorization to use photographs, copyrighted materials, art work or any other property or rights belonging to third parties obtained by us for use in performing services for you. You shall obtain the same for any such items obtained by you which are used by us in performing such services, and shall be responsible for any claims with respect to such use. You shall be responsible for the accuracy, completeness and propriety of information concerning your products and services which you furnish to us in comection with the performance of this agreement. We agree to exercise our best judgment in the preparation and placing of all advertising and publicity for you, with a view to avoiding any claims, proceedings, or suits being made or instituted against you or ourselves. It is mUtually agreed, however, that you will indemnify us against any loss we may incur as the result of any claim, suit or proc.P.Piling made or brought against us based upon any advertising or publicity which we prepared for you and which you approved before its publication or broadcast. You will also indemnify us against any loss we may sustain resulting from any claim, suit or proceeding made or brought against us for use of any agency-produced commercials by your dealers or by anyone else, when such claim, suit or proceeding arises out of our obligations under the applicable union codes or contracts relating to the production of commercials. Nothing herein contained shall be deemed to require that we undertake any campaign. prepare any advertising material or publicity, or cause publication of any advertisement or article which, in our judgment, would be misleading, indecent, h"belous, unlawful, or otherwise prejudicial to your interests or to ours. CHARGES FOR ADVERTISING SPACE AND TIME You agree to pay us at current published rates (or at lower rates when available) for advertising nm in all media, except that in the case of media allowing no commission (or less than 15% commission) you agree to pay us at current published rates (or at lower rates when available) plus an amount which (together with the commission, if any, allowed by media) will yield us 15% of our total charge to you, before cash discount. We will bill you for the publisher's charges, and we shall not be liable for any payment to be made to the publisher. Page 2 of5 CONTRACT RATE ADJUSTMENTS If, in a medium having a schedule of gmduated rates, less space or time than contracted for is used, you are to pay us the difference, if any, between the rate billed and the rate actually earned, in accordance with such short rate payments we are obligated to make. If more space or time than contracted for is used, we shall refund to you any excess you may have paid us in accordance with such refunds made to us by media. We shall refund or credit to you any other refimds received by us in connection with advertising space, time, or materials, for which you have paid us. CHARGES FOR MATERIALS. SERVICES AND PROMOTIONAL ITEMS PURCHASED You agree to pay us an amOlmt which will yield us 30% of our total charge to you before cash discount, for all materials, services and promotional items (other than space or time) purchased for you on your authorization. (This does not apply to charges provided for in paragraph 2 of section headed "Charges For Special Services Performed By Us.") Items to be billed on this basis include, but are not limited to, the following: 1. Purchase of Printing. 2. Purchase of Premium or Give-Away Items. 3. Mailing Lists. CHARGES FOR SPECIAL SERVICES PERFORMED BY US For the services listed below, performed by us on your authorization (as distinguished from services bought outside our organization), you agree to pay us such amount as shall be agreed upon between us in advance, or in the absence of such agreement, at the current hourly rates in effect at the time the services are rendered. As of the date of this agreement the fonowing hourly rates are in effect A current rate schedule will be supplied to you upon request. President Account Exec. Art Director Prod. Manager Acet. ExecIV .P. $80.00 $80.00 $80.00 $80.00 $80.00 Writers Artists Media Buyer Clerical (average) Web $80.00 $80.00 $80.00 $30.00 $80.00 Services: Writing Proposals & Reports Secondary Research Other Liaison With Suppliers Client Contact Media Liaison Copy Layout IllustrationlRetouching lnputtinglUpdating Mailing Lists Production SupelVision Travel Account Management Concepting/Creative Sessions Estimates Interviewing List Brokerage Services Media Planning Proofmg PhotographylPhoto Supervision Direct Mail Letter Production Direct Mail Handling Services Administrative Staff Service Data Analysis & Research Rpts. These definitions are subject to change from time to time. A current list will be supplied upon request. Page 3 of5 CONTRACT Should you authorize our staff to travel outside Salina, you agtee to reimburse us for all expenses th~y incur in connection with their travels, including meals and tips, tolls, parldng fees, hotel and motel accommodations, plane, train or bus fare and like items. When travel is by staff member's automobile, you agtee to pay us $0.50 per mile traveled. For services other than those covered under ~ monthly fee (specified later in this agm:ment) we will provide conditional estimates of our charges to you upon your request prior to production. SPONSORSHIP SOLICITATION MarketAide will sell sponsorships for features identified as sponsored features on a first come first served basis to companies, organizations, or entities as outlined by City policy. Businesses deemed to be inappropriate by City policy will not be solicited. For these services, you agree to pay us an amount equal to 15% of the total sponsorship dollars raised. For our part, MarketAide will contact, present, negotiate, and finalize agm:ments with sponsors. Sponsorship rates will come from the Kenwood Cove Sponsorship Program Public Schedule of Annual Fees for the 2010 season. MONTHLY FEE Unless a monthly retainer is requested, MarketAide will bill on a per project basis. TERMS OF PAYMENT Two fundamental principles on which the client-agency-medium financial relationship is based are (1) that the advertising agency shall finance its own setvice, but not the advertising of its clients, and (2) that the advertising agency is held by media as solely liable for payment. Therefore, it is essential that we collect from you in time to pay media. Charges for advertising space and time, rate adjustments, charges for materials, service and promotional items purchased are due upon receipt of statements. If payment is not received by us on or before the last regular work day of the month following the date of each statement, the obligation or any unpaid portion thereof shall bear interest at the rate of one and one-half percent (1 1/2%) per month with charges accruing from the date on the statement. We reserve the right in case of delinquency in your payments to us, or such impairment of your credit as in our opinion might endanger future payments to us, to change the requirements as to terms of payment under this agreement. In the event you make a late or partial payment, we reserve the right to determine who is paid first. Our normal decision will be to apply such late or partial payments to our services first, and to any media or suppliers after that. TERMINATION OF AGREEMENT This agreement shall become effective February 23, 2010, and shall, unless terminated, continue in force wtil terminated by thirty (30) days' notice in writing, 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. The rights, duties, and responsibilities of the agency shall continue in full force during the period of notice including the ordering and billing of advertising in media whose closing dates or broadcast dates fall within such period, and we shall be entitled to all commissions and any other compensation relating to such advertising regardless of who may place it. After the expiration of the agreed-on interval following notice, no rights or liabilities shall arise out of this relationship, regardless of any plans which may have been made for future advertising, with the following exception: That any uncancelable contract made on your authorization, and still existing at the expiration of the agreed-on interval following notice, shall be carried to completion by us and paid for by you unless mutually agreed in writing to the contrary, in accordance with the provisions herein. Page 4 of5 CONfRACT Any materials, services, etc. we have committed omselves to purohase for your account, or with your approval (or any uncompleted work previously approved by you either specifically or as part of a plan), shall be paid for by you in accordance with the provisions of this agreement. Upon termination of this contmct, we shall transfer, assign, and make available to you, or your representative, all property and materials in our possession or control belonging to and paid for by you, and all information regarding your advertising. We also agree to give all reasonable cooperation toward transferring with approval of third parties in interest all reservations, contracts and arrangements with advertising media, or others, for advertising space, broadcasting time, or materials yet to be used and all rights and claims thereto and therein, upon being duly released from the obligations thereof. Any items for which you have paid MarketAide become your property upon termination. Any items for which MarketAide has not been paid will remain our property. In the event that contmcts with advertising media are transferred to another advertising agency, it is understood that after expiration of the agreed-on interval following notice the undersigned agency shall receive its share of commissions on short rate bills and shall add back its share of commissions to refimds made by media by reason of the earning of a lower rate (as described in section on "Rate Adjustments"), unless agreed to the contrary. ' On each annual anniversary date or upon any major change in the nature of the business of Kenwood Cove Aquatic Center, either party may request that the terms of the contract be reviewed and renegotiated. During such review and negotiation, terms stated herein will remain in force until formal changes are made in this document and agreed to by both parties. EXAMINATION OF RECORDS It is understood that you may at any time during the life of this contract, and upon reasonable notice, examine our files and records pertaining to the lumdling of your advertising. iE SERVICES,fINC. I I I I Date ebruarv 12.2010 CLIENT'S ACCEPTANCE This agreement is accepted by JaSOV\ ~. ~e. By (~-J.;du;- Date re.bt'W.\.^{ 1fL \ 10\ 0 en~ W\~U - Page 5 of5