Marketing and Distribution Agreement Term Sheet between Dynamic Response Group and Allstar Marketing Group, LLC
Dynamic Response Group and Allstar Marketing Group, LLC have entered into a one-year agreement, automatically renewable if 100,000 units are sold, to market and distribute the Gem Magic product in the US and Canada through direct response channels. Profits are split 60% to Dynamic Response Group and 40% to Allstar, based on net income. Allstar will sell the product to Dynamic Response Group at cost and provide advertising footage. If Dynamic Response Group spends $1 million on TV advertising, Allstar will pay them a 40% reverse royalty on profits from other distribution channels.
Exhibit 10.1
Allstar Marketing Inc
MARKETING & DISTRIBUTION AGREEMENT
TERM SHEET
AGREEMENT EFFECTIVE DATE: | 6/9/09 | |
PARTIES: | Dynamic Response Group 4770 Biscayne Blvd, Ste 780 Miami, FL 33137 Contact: Melissa Rice, CEO ***@*** | |
AMG | Allstar Marketing Group, LLC (herein referred to as AMG) 4 Skyline Drive Hawthorne, NY 10532 Contact: Scott Boilen, President ***@*** | |
PRODUCTS, COMPONENT PARTS, & DESCRIPTION/USE | Gem Magic | |
TERRITORY | Us & Canada | |
DISTRIBUTION CHANNELS | Direct Response (TV, Internet & Print) | |
TERMS | 40% To Allstar- 60% to DRG profit split based on Net income. | |
TERM OF AGREEMENT | 1 year with automatic Renewals upon sales of 100K units. | |
SPECIAL TERMS & CONDITIONS | Allstar Marketing Inc will sell the Product to DRG at Allstars actual cost of goods. Allstar will provide all footage on the Product to DRG for DRG to utilize in its advertisement. | |
At the point in which DRG spends 1,000,000 in TV advertising, AMG agrees to pay DRG a reverse royalty of 40% of the profits generated through the sale of the Product by AMG through all other channels of distribution. |
The Parties each agree to the terms of this Agreement which expression includes this Term Sheet.
Signed for and on behalf of: | Signed for and on behalf of: Allstar Marketing Group, LLC | |||
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Date: _____________________________________________ | Ron Steblea, Executive Vice President | |||
Date: 7-13-09 |