Document:

qpsa_ex105.htm

 

EXHIBIT 10.5

 

Quepasa Marketing Services Letter of Agreement

 

April 14, 2010

Mr. Alonso Ancira

Chairman of the Board

AHMSA

Campos Eliseos No. 29 Piso 8

Col. Polanco, C.P. 11580

Mexico, DF

Dear Mr. Ancira,

Quepasa Corporation (“Quepasa”) is pleased to have been engaged to implement a marketing program for Altos Hornos de Mexico (“Client”), and we are looking forward to working with you and your team. This letter sets for the principle terms and conditions (the “Agreement”) governing our ongoing relationship and will be effective as of the date hereof. 

	
1.

	
Work and Fees

Quepasa has agreed to conceive, plan and execute the marketing program more specifically described in Exhibit A attached hereto (the “Program”). Quepasa will bill for its work according to the timeline and fee schedule provided in Exhibits B and C. If we need to bill beyond this to execute elements of the Program, we will secure approval in writing signed by both parties before any such work is performed. Any work we perform outside the scope of the Program will be subject to additional charges, which shall be agreed to in writing signed by both parties before any such work is performed.

	
2.

	
Third-Party Charges

During our engagement Quepasa may recommend retaining third-party vendors.  The retention of all third-party vendors will require the Client’s prior written approval and ensuing expenses will be passed through without mark-up to the Client.

	
3.

	
Invoices & Payment

All invoices are due and payable within ten (10) business days of the invoice date and those more than thirty (30) days overdue will be subject to an automatic bookkeeping charge of five percent (5%) per month. If your accounts receivable ever exceeds forty-five (45) days from the invoice date, Quepasa retains the right to cease all work being performed for the Client.

	
4.

	
Term

The Agreement shall be effective as of the date hereof and cover work performed by Quepasa for the Client from April 14, 2010 through April 13, 2011 (the “End Date”), unless terminated sooner according to the provisions below.  The “Term” shall be the actual period covered by the Agreement.  Either party may terminate the Agreement prior to the End Date for any reason or no reason with thirty (30) days prior written notice to the other party (“Termination Notice”),

which thirty-day period will begin on the date that the Termination Notice is received.  The parties may only agree to extend the Term beyond the End Date pursuant to a writing signed by both parties. 

 

 

  

1

  

	
5.

	
Press

The Client agrees to participate in press releases to announce its engagement with Quepasa, as well as individual marketing initiatives therein. Quepasa will bear all the costs for the press releases.

	
6.

	
Warranties

Quepasa disclaims all express and implied warranties and does not make any guarantees regarding the success of the Program or any other work we perform for the Client.  The Client acknowledges and agrees that no statements made by Quepasa may be construed as a promise or guarantee of success.

	
7.

	
Indemnification

The Client shall, at its own cost and expense, indemnify and hold harmless Quepasa, their affiliates, and their officers, directors and employees from and against any and all liability, cost, loss, damage, injury or expense, including reasonable attorneys' fees, arising in connection with any third-party claim resulting from the Program cleared and approved by Client.

	
8.

	
General

This Agreement will be governed by and construed with the laws of the State of California, without regard to or application of conflicts of laws or principles. This Agreement is the complete and exclusive understanding and agreement between the parties regarding its subject matter, and supersedes all proposals, understandings or communications between the parties, oral or written, regarding its subject matter.

 

If the terms described above are acceptable to you, please so indicate by signing both of the enclosed copies of this letter and returning one of them to Quepasa.   Please retain the other signed original of this Agreement for your records. 

 

We look forward to working with Altos Hornos de México and to a long and mutually rewarding relationship. 

 

 

	 Sincerely,	 	 	 	 
	 	 	 	 	 	 
	John Abbott	 	 	 	 
	CEO	 	 	 	 
	Quepasa Corporation	 	 	 	 
	 	 	 	 	 	 
	Approved and Agreed:	 	 	 	 
	 	 	 	 	 	 
	Altos Hornos de México	 	Quepasa Corporation	 
	 	 	 	 	 	 
	Signed:  	
/s/ Alonso Ancira Elizondo

	 	Signed:  	
/s/ John Abbott

	 
	Name:	Alonso Ancira Elizondo	 	Name:	John Abbott	 
	Title:	
Chairman of the Board 

	 	Title:	
CEO

	 
	Date:	
April 14, 2010

	 	Date:	
April 14, 2010

	 

 

  

2

  

EXHIBIT A

Marketing Program for Altos Hornos de México

	
●

	
AHMSA Corporate Site

	
  

	
o

	
Corporate site beta launch

	
  

	
o

	
Corporate site serving and hosting

	
  

	
o

	
Corporate site feature launch (promotional application)

	
  

	
o

	
Corporate site official launch

	
  

	
o

	
Corporate site feature launch (social media integration)

	
  

	
o

	
Corporate site feature launch (interactive widget)

	
●

	
Social Media Marketing Campaigns

	
  

	
o

	
Campaign 1:

	
  

	
§

	
Interactive Game Application & Campaign

	
  

	
§

	
Prizing and fulfillment

	
  

	
o

	
Campaign 2:

	
  

	
§

	
AHMSA Corporate Art Design DSM Campaign

	
  

	
§

	
Prizing and Fulfillment

	
  

	
o

	
Campaign 3:

	
  

	
§

	
Video Submission-Based DSM Promotion

	
  

	
§

	
Prizing and Fulfillment

  

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EXHIBIT B

Timeline and Pricing

 

	
Milestone

	 	
Deadline

	 	
Fee

($US)

	 
	
Up Front Payment

	 	
May 1, 2010

	 	 	1,000,000	 
	  	 	  	 	 	 	 
	
AHMSA Corporate Site

	 	  	 	 	 	 
	
Corporate Site Beta Launch

	 	
May 1, 2010

	 	 	100,000.00	 
	
Corporate site serving and hosting*

	 	
May 1, 2010 - ongoing

	 	
tbd

	 
	
Corporate Site Feature Launch (Promotional Application)

	 	
July 15, 2010

	 	 	100,000.00	 
	
Corporate Site Official Launch

	 	
September 1, 2010

	 	 	100,000.00	 
	
Corporate Site Feature Launch (social media integration)

	 	
November 15, 2010

	 	 	100,000.00	 
	
Corporate Site Feature Launch (Interactive widget)

	 	
February 1, 2011

	 	 	100,000.00	 
	
Corporate Site Total

	 	  	 	 	500,000.00	 
	  	 	  	 	 	 	 
	
Social Media Marketing Campaigns

	 	  	 	 	 	 
	
Campaign 1

	 	  	 	 	 	 
	
Interactive Game Application & Campaign

	 	
July 15, 2010

	 	 	333,333.33	 
	
Prizing and Fulfillment

	 	
October 15, 2010

	 	 	333,333.33	 
	
Campaign 2

	 	  	 	 	 	 
	
AHMSA Corporate Art Design DSM Campaign

	 	
September 1, 2010

	 	 	333,333.33	 
	
Prizing and Fulfillment

	 	
December 1, 2010

	 	 	333,333.33	 
	
Campaign 3

	 	  	 	 	 	 
	
Video Submission-Based DSM Promotion

	 	
November 15, 2010

	 	 	333,333.33	 
	
Prizing and Fulfillment

	 	
November 15, 2010

	 	 	333,333.33	 
	
Marketing Campaigns Total

	 	  	 	 	2,000,000	 
	
Grand Total

	 	  	 	 	3,500,000	 

*Cost will be passed through

 

  

4

  

EXHIBIT C

Fee Schedule

	
Date

	 	
Due ($ US)

	 
	
May 1, 2010

	 	 	1,100,000.00	 
	
July 15, 2010

	 	 	500,000.00	 
	
September 1, 2010

	 	 	500,000.00	 
	
October 15, 2010

	 	 	333,333.33	 
	
November 15, 2010

	 	 	300,000.00	 
	
December 1, 2010

	 	 	333,333.33	 
	
February 1, 2011

	 	 	100,000.00	 
	
February 15, 2011

	 	 	333,333.33	 
	
Total

	 	 	3,500,000.00	 

5qpsa_ex106.htm

 

EXHIBIT 10.6

 

Quepasa.com

 

Executive Summary

 

PROMOTIONAL CAMPAIGN FOR THE “LEY PARA EL FOMENTO DEL PRIMER EMPLEO”

 

Objectives

	
  

	
1.

	
Create an online strategy that drives awareness of Manlio Fabio Beltrones (hereafter referred to as “MFB”) as a politicion who generates change in Mexico

	
  

	
2.

	
Successfully launch the “Ley de Fomento al Primer Empleo” and create online visibility and support for the proposed law

Communication strategy

	
  

	
1.

	
DIAGNOSIS

- Analyze and evaluate MFB’s current online communications

* Objectives, strategies, desired positioning

* Current web content

* Followers, influences, users, critics

- MFB website redesign

* General website development and programming

* Hosting

* Content Integration

* Beta testing of site

* Site maintenance and administration

	
  

	
2.

	
DSM

	
  

	
-

	
Create and launch a Social Media Marketing campaign using Quepasa’s Distributed Social Media Platform, which distributes content across multiple social networks. This generates a massive impact through viral sharing across the social web.

 

	
  

	
3.

	
SEARCH ENGINE OPTIMIZATION

- Create an SEO strategy that supports campaign goals:

- Drive awareness/education of MFB’s proposed law

- Generate users for the online voting platform

 

  

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4.

	
SOCIAL MEDIA

- Leverage DSM to establish MFB’s presence across relevant social media platforms

- Create a strategy to ensure penetration across different social groups through segmented media buying

	
  

	
5.

	
VERTICAL AND HORIZONTAL ONLINE MEDIA

- Specialized media buying strategy to ensure efficient distribution of media/message

- Focus on for the initiative on horizontal sites to drive traffic to DSM campaign

- Identify and leverage most relevant timing of messaging/media execution

	
  

	
6.

	
MOBILE MARKETING

- Integrate a mobile option for supporting DSM campaign

- Launch SMS platform

- Data administration

- Content integration

- Platform maintenance

Participation Mechanics

	
  

	
1.

	
Enter the application

	
  

	
a.

	
Demographic data (name, gender, age, location, email, mobile number)

	
  

	
b.

	
Option to receive information from MFB email

	
  

	
c.

	
Accepting Terms and Conditions

	
  

	
2.

	
Learn about MFB’s propose law

	
  

	
a.

	
Explain the new initiative

	
  

	
b.

	
Social benefits of law

	
  

	
3.

	
Vote

	
  

	
a.

	
Option to vote for the initiative

	
  

	
b.

	
Option to share information about the law to your social profile

	
  

	
4.

	
Participate and Win

	
  

	
a.

	
If you are one of the users with the most shares you could become an “ambassador” of the initiative. Also, you could have access to an exclusive breakfast with MFB to present the new law.

  

2

  

Quepasa.com

Quepasa Corporation Marketing Services Agreement

June 7th, 2010

 

Mr. Alonso Ancira

Chairman of the Board

AHMSA

Dear Mr. Ancira,

 

At Quepasa Corporation we thank you for the opportunity to bring our Marketing Services to Altos Hornos de Mexico. We are pleased to work with you and your team.

The present agreement sets the terms and conditions for our services to the date.

	
  

	
1.

	
Services

Quepasa will create, plan and execute the Marketing Campaign for MFB, as described on appendix A.

	
  

	
2.

	
Fees

Quepasa will charge for its services according to the timetable described on appendix B. Any other work that is generated outside of the established on the present agreement will be charged separately, as previously authorized and agreed by both parties before it takes place.

	
  

	
3.

	
Invoices and Payments

The invoices must be settled in a 10-working-days period after they were received. Otherwise, this will generate a monthly 5% interest rate.

	
  

	
4.

	
End of the Agreement

This agreement will be valid from the date it was signed. It will cover all the services described on appendix A until the last day of the campaign described on appendix B. Both parties agree that there can be an extension of the agreement, as long as both parties are in agreement.

  

3

  

Both parties read and agreed on the content and legal reach of the present agreement, and signed it in Mexico City on June 9th, 2010.

We are pleased to work with Altos Hornos de Mexico and we will be looking forward to consolidate a long-term relationship with you.

 

 

	Sincerely,	 	 	 	 
	 	 	 	 	 	 
	
John C. Abbot

CEO

Quepasa Corporation

	 	 	 	 
	 	 	 	 	 	 
	On behalf of Altos Hornos de Mexico	 	On behalf of Quepasa Corporation	 
	 	 	 	 	 	 
	Nombre:	Alonso Ancira Elizondo	 	Nombre:	John Abbott	 
	Signature:   	
/s/ Alonso Ancira Elizondo

	 	Signature:  	
/s/ John Abbott

	 
	Position: 	
Chairman of the Board

	 	Position: 	CEO	 
	Date:	
June 9th, 2010

	 	Date:	June 9th, 2010	 

 

  

4

  

Appendix A

Marketing Campaign

	
  

	
1.

	
Redesign of website for MFB

	
  

	
a.

	
Analysis and Evaluation of the new website

	
  

	
b.

	
Execution of changes on the new website

	
  

	
c.

	
Hosting service for the website

	
  

	
d.

	
Beta testing of the website

	
  

	
e.

	
Website maintenance

	
  

	
f.

	
Content administration on the website

 

	
  

	
2.

	
Launching of Social Media Campaign

	
  

	
a.

	
DSM development and programming

	
  

	
b.

	
Creative and concept development

	
  

	
c.

	
Content integration

	
  

	
d.

	
Beta testing of the website

	
  

	
e.

	
Website maintenance

	
  

	
f.

	
Content administration on the website

	
  

	
g.

	
Strategy development for online media mix

	
  

	
h.

	
Generation of metrics and reports

	
  

	
i.

	
Offline communication actions

	
  

	
j.

	
Creation of SMS platform

	
  

	
k.

	
Setting up and using the SMS platform

	
  

	
l.

	
Maintenance and administration of SMS platform

  

5

  

Appendix B

Timetable

	
CONCEPT

	 	
DEADLINE

	 	
COST (US)

	 
	  	 	  	 	 	 
	
1. Redesign of website for MFB

	 	  	 	 	 
	
Analysis and Evaluation of the new website

	 	
June 15th, 2010

	 	 	50,000	 
	
Execution of changes on the new website

	 	
June 30th, 2010

	 	 	50,000	 
	
Hosting service for the website

	 	
July 15th, 2010

	 	 	100,000	 
	
Beta testing of the website

	 	
September 1st, 2010

	 	 	50,000	 
	
Website maintenance

	 	
September 1st, 2010

	 	 	100,000	 
	
Content administration on the website

	 	
September 1st, 2010

	 	 	100,000	 
	
 

 

SUBTOTAL:

	 	  	 	 	  450,000	 
	
Launching of Social Media Campaign

	 	  	 	 	 	 
	
DSM development and programming

	 	
July 1st, 2010

	 	 	50,000	 
	
Creative and concept development

	 	
July 15th, 2010

	 	 	300,000	 
	
Content integration

	 	
July 15th, 2010

	 	 	100,000	 
	
Beta testing of the website

	 	
July 30th, 2010

	 	 	100,000	 
	
Website maintenance

	 	
July 30th, 2010

	 	 	100,000	 
	
Content administration on the website

	 	
July 30th, 2010

	 	 	100,000	 
	
Strategy development for online media mix

	 	
August 15th, 2010

	 	 	1,000,000	 
	
Generation of metrics and reports

	 	
December 30th, 2010

	 	 	50,000	 
	
Offline communication actions

	 	
December 30th, 2010

	 	 	50,000	 
	
Creation of SMS platform

	 	
December 30th, 2010

	 	 	50,000	 
	
Setting up and using the SMS platform

	 	
December 30th, 2010

	 	 	550,000	 
	
Maintenance and administration of SMS platform

	 	
December 30th, 2010

	 	 	100,00	 
	
 

 

SUBTOTAL:

	 	  	 	 	  2,550,000	 
	  	 	  	 	 	 	 
	
TOTAL:

	 	  	 	 	3,000,000	 

 

 

6

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