Document:

exhibit_10-1.htm

EXHIBIT 10.1

 

EJ MEDIA GROUP LLC

 

February 15, 2016

Friendable, Inc. 

1821 S. Bascom Ave. 

Campbell, CA 95008 

ATTN: Robert Rositano

 

RE: PUBLIC RELATIONS AGREEMENT FOR FRIENDABLE

 

TERM

 

Friendable, Inc. (hereafter referred to as "you") and EJ Media Group LLC (hereafter referred to as “we” or "us") hereby agree that we will be the public relations representative for Friendable for the United States.  The initial engagement will be for a period of three (3) months commencing on the date of this agreement (such engagement period is hereafter referred to as "Term"). Should you and we decide to extend the engagement beyond this, all terms and conditions indicated below will still apply.

 

EJ MEDIA GROUP LLC RESPONSIBILITIES AND OPERATIONS

 

We will be responsible, as appropriate, for: coordinating the agreed upon media coverage relating to Friendable (including all forms of print media, television and internet) within the United States of America; supervising the preparation and issuance of press releases, pitch letters and media alerts; providing general media interview preparation; and coordinating and supervising any other activities which we determine are appropriate.

 

We will be available to consult with you periodically regarding publicity and we will keep you apprised of our activities on behalf of you. We will make best efforts to obtain media coverage for you, however, you acknowledge that such coverage is beyond our control and therefore there is no guarantee for specific results from this engagement.

 

Specifically excluded from our responsibilities are: booking of events; more formal media training, which would require the services of a specialist; writing of extensive biographies or company backgrounders, which would require the services of a specialist; design and production of invitations, EPKs and other collateral material, which would require the services of a specialist; Account Executive travel and introductions for other than press/editorial purposes.

 

The day-to-day operations will be handled under the direction of an Account Executive as well as the support of other key staff.

 

While the Account Executive will be available to cover some events and/or interviews, it is understood that scheduling and other demands may limit such involvement. In those cases, at the sole discretion of the Account Executive, a qualified other EJ Media Group staff member may perform these escorting functions.

 

FRIENDABLE, INC. RESPONSIBILITIES

 

You will appoint a sole representative to act on your behalf with the authority to provide us with the necessary approvals that may be required for the coordination of all aspects of the public relations services. We will not be responsible for missed deadlines and/or related late charges, penalties or loss of income due to your delays in making approvals by pre-determined and pre-advised deadlines.

 

You will be responsible for the accuracy and completeness of any information provided to us. Furthermore, you are responsible for approval and final proofing of all press releases, biographies and quotes from you or your representatives, and for approval of any photographs that may be used for distribution and reproduction.

  

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PUBLICITY SERVICES FEE, EXPENSES AND PAYMENT TERMS

 

You agree that our fee for the services indicated above will be Eight Thousand Dollars ($8,000) per month during the Term (“Publicity Services Fees”) and that you will pay us Eight Thousand Dollars ($8,000) immediately (i.e., upon signature of this Agreement).

 

Reasonable expenses are not included in the Publicity Services Fees and will be billed separately. Please see details on the attached Expense Agreement; the Expense Policy Agreement is deemed incorporated herein and will be considered part of this contract. You will be required to pay a $500 deposit against expenses, and that deposit will be applied to the final expense bill with any unapplied balance refunded. Publicity Service Fees which are past due 30 days after receipt of the invoice are subject to a 1.5% per-month late fee. Returned checks are subject to a 5% surcharge.

 

RIGHTS/RELEASES/INDEMNIFICATION

 

You hereby grant us the right to use the name and approved material for Friendable in connection with our services.

 

You release us and our employees and agents, and accordingly acknowledge that you are waiving your right to claim damages for conduct, from any liability arising out of our performance of services on behalf of you, except in the case of gross negligence or willful misconduct. In no event shall we be liable for special, punitive or consequential damages and our liability shall in no event exceed the amount of fees paid to us hereunder.

 

You and we each warrant and represent that we each have the full right to enter into this agreement. You agree to be fully liable to us for all payments due to us thereunder.

 

We cannot independently verify factual material supplied to us by you or your agents, and therefore you will indemnify and hold us harmless for any claims, loss, damage, expenses (including attorney's fees), or other legal liability arising out of information or material supplied by you and contained in any reports, press releases or other material distributed by us.

 

This Agreement embodies the entire understanding and agreement of the parties hereto in relation to the subject matter hereof, and no terms, conditions, representations or warranty, express or implied, not herein set forth, shall bind any party hereto.

 

If any provision of this Agreement shall be declared illegal or ineffectual by a Court of competent jurisdiction, then none of the other provisions of this Agreement shall be considered impaired or affected and such other provisions shall continue in full force and effect.

 

The laws of the State of New York shall govern this Agreement and if there is any litigation, the prevailing party will be paid its reasonable attorney fees by the other party.

 

LIMITATIONS

 

You acknowledge that we are generally engaged in public relations and communications activities for you and for third parties, and shall devote only so much time to you as shall be necessary to perform the services referred to in this contract; provided, however, that at all times we shall devote sufficient staff and resources to fulfill our duties under this Agreement.

 

TERMINATION

 

Either party may terminate this agreement before the end of the Term if the other party is in default. To exercise this termination option, written notice and indication of the nature of the default must be delivered to the offending party. The offending party will have fifteen (15) days to remedy the problem, but if the default is not satisfactorily remedied by that time, the non-offending party may terminate this agreement with a second written notice. The date of termination will be thirty (30) days after delivery of this notice to terminate. All fees earned and expenses incurred by us through the termination date will be due and payable upon termination.

 

Kindly indicate agreement of terms by signing below and returning to us immediately with the payments indicated above. This agreement may be signed in counterparts, and a facsimile or PDF-format signature shall constitute an original. We are looking forward to working with you and enjoying a long and prosperous relationship.

  

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ACCEPTED AND AGREED:

 

	FRIENDABLE, INC.     	 	EJ MEDIA GROUP LLC
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Robert Rositano	 	By:	/s/ Elizabeth Rosenthal Traub
	 	Robert Rositano  	 	 	Elizabeth Rosenthal Traub

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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Exhibit A

 

to the Agreement between EJ Media Group LLC and Friendable, Inc.

 

Dated February 15, 2016

 

Expense Policy Agreement:

General Terms: Expenses will be billed on a monthly basis and are payable within 10 days of receipt.  No single expenditure in an amount in excess of $250 will be incurred without specific client approval.

Outside Expenses: 10% accounting fee on advances to third parties on behalf of clients.  However, whenever possible we would like to have third party billing for these expenses.  The client will allow us to use their accounts for services like Fedex, Messengering, etc., if possible.

Entertainment & Editorial Meetings: It may be beneficial to the client for EJ Media Group to meet with and pitch editors and other key individuals over a meal or at an event.  In these cases, the cost of the meal/event will be billed back to the client; if multiple clients were pitched at the same time, the cost will be pro-rated among these corresponding clients.

Database Services: There is an annual charge of $500 for database services. If EJ Media is actively pitching gift guides, there is an annual charge of $300.

Travel:  All travel related expenses including meals, cab fare, airport transfers, and hotel incidentals are the responsibilities of the client.  EJ Media Group requests that all hotel, airfare, car rental and car service be arranged for and paid in advance by the client.  If EJ Media Group employees are required to travel on behalf of the client, EJ Media Group uses the following guidelines. Air Travel: Business Class; Car Rental: Mid-sized; Hotel: Reputable establishment, single occupancy.

Client Events: It should be noted that when there are client events requiring our staff to work, the client will be responsible for all cab fare and car service charges.  Whenever possible, staff will split cabs to minimize costs. Modest meals may also be necessary for those staff required to work through reasonable dinner times.  In any case, such day-of event expenses will not exceed a total of $500 per event without client sign off.

Photography, Biographies and Graphic Design Needs:  If a client requires a biography, photographs or graphic design work, EJ Media Group can suggest a number of appropriate suppliers.  Clients are responsible for all facets of an agreement with a photographer, graphic designer, or writer, including fees, supplies, overtime, negative ownership, etc. Whenever possible direct billing is to be arranged between the client and the third party.

 

 

 

 

 

 

 

 

 

 

4exhibit_10-2.htm

EXHIBIT 10.2

 

 

T K A

January 27, 2016

Friendable, Inc.

1735 E Ft Lowell Rd Ste 9

Tucson, AZ 85719

Dear Sirs:

You have retained us and we hereby agree to serve as your agent for the brand and/or product and with respect to the marketing activities set forth below, the whole in accordance with and subject to the terms and conditions set forth herein.

 

	 	
BRAND:  

	
Friendable

	 	
(the “Brand”)

	  
	 	  	  
	 	
PRODUCT:

	
Mobile App

	 	
(the “Product”)

	  
	 	  	  
	 	
MARKETING:

	
Identifying and securing relationships with music celebrities.  Effecting a product integration of your Brand into [redacted] music videos with Major A-List recording artists.

For the purposes of this Agreement, "Client" or “You” refers to Friendable, Inc., its employees, agents and officers, and its successors and assigns, “TKA” refers to our agency and “Parties” refers to both You and TKA.

	
1.

	
The Marketing Project

The marketing project which you have mandated to us and which we accept relates to the providing of brand consulting and marketing services and the integration of your Brand known as Friendable and/or your product containing the Brand.  We shall act as your agent to identify, negotiate and contract for the integration of the Product in a music video (“Video”) set for global distribution (the “Production”) featuring the following artist:

  

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	 	ARTIST: 	Artist(s) to be determined, subject to selection and approval of Client (the “Artist”) unless otherwise instructed by the Client.
	 	 	 
	 	PRODUCTION: 	Production(s) to be determined, subject to approval of Client unless otherwise instructed by the Client.

 

During the term of this Agreement, the Parties hereto agree that TKA shall be the sole party charged with the responsibility of providing Client with the services set forth herein.

	
2.

	
The Services

	
  

	
a.

	
TKA shall negotiate, on behalf of Client, to secure the services of the Artist(s) set forth above for the planning, preparation and integration of the Brand and/or the Product in the Production(s);

	
  

	
b.

	
TKA shall perform, or obtain the commitment from the Artist to perform, all of the deliverables set forth in Section 3 below (the “Deliverables”) with respect to the Productions.

	
  

	
c.

	
TKA shall obtain, on behalf of Client, the rights to use the Artist’s name and likeness in the Production.

	
  

	
d.

	
TKA shall obtain, on behalf of Client, the right to use all images from the Production(s) containing the Product to promote Client’s business, brand, or services in press releases and on the Clients website.

	
  

	
e.

	
TKA shall provide such other media related consulting and marketing services as mutually agreed in support of Client’s Brand.

	
3.

	
The Deliverables

	
  

	
The following are the Deliverables to the Agreement:

	
  

	
a.

	
[Redacted] music video Integrations between February 1st, 2016 and July 31, 2016 by [redacted] major artists TBD targeting the Client’s core demographic.

 

	
  

	
b.

	
TKA will provide the Brand with videos opportunities as they become available.  Brand will have the first right of first refusal on all video opportunities before any other TKA client in the social app category.

 

	
  

	
c.

	
The Brand will be integrated into each Production a minimum of [redacted].  The integration will clearly display the Product in each shot.  The total aggregate screen time in each video will be [redacted]. The brand will provide TKA will minimally 10 still screen shots of the app for post-production usage in each video.

 

  

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d.

	
The Artist will interact with the Product in each production OR the artist’s actual Friendable profile will be viewed by another individual. This indicates the celebrity is either a user or member of Friendable.

 

	
  

	
e.

	
Client officers and/or employees may, at their option and expense, attend the filming of the Production.  During the filming of the Production, they may film content and take still photography. Client agrees that this footage shall not be released until after the Production is released in the USA.

	
  

	
f.

	
TKA will make introductions for the Client with both a publicist and social media management firm. Following the campaign launch, a senior executive of TKA will be assigned to oversee this campaign in partnership with the brand, publicity firm, and social media management firm.

	
4.

	
Fees and Payment

For the services described above, Client hereby agrees to pay to TKA, and we agree to accept, the sum of Four Hundred Thousand United States Dollars (US$400,000), and the share consideration and warrant consideration payable as follows:

 

	
  

	
a.

	
One Hundred Thousand dollars ($100,000), within [redacted];

 

	
  

	
b.

	
One Hundred Thousand dollars ($100,000) due [redacted.

 

	
  

	
c.

	
Fifty Thousand dollars ($50,000), within [redacted].

 

	
  

	
d.

	
Fifty Thousand dollars ($50,000), within [redacted].

 

	
  

	
e.

	
One Hundred Thousand dollars ($100,000), within [redacted].

 

	
  

	
f.

	
The stock and warrant set forth in Section 4.1 below.

 

In the event that TKA provides client with at least 8 Major opportunities with A-List recording artists whom average over [redacted] per video on Youtube, and the client refuses to approve any selection within a 6 month period, Client will forfeit any funds paid to TKA to procure these services.

 

	
4.1 

	
Stock and Warrant Issuance

In addition to the foregoing, Friendable shall issue, and TKA shall accept, the following shares and warrant to acquire shares in the share capital of Friendable:

	
  

	
a.

	
Eight Million (8,000,000) common shares in the share capital of Friendable; the whole subject to a holding period of six (6) months during which TKA shall not be entitled to sell such shares in any public market for such securities; and

 

  

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b.

	
A warrant (“Warrant”) entitling TKA to subscribe for an additional seventeen million (17,000,000) common shares in the share capital of Friendable for an aggregate subscription price of one hundred and seventy dollars ($170.00).  The foregoing Warrant shall not be exercisable by TKA for a minimum of ninety (90) days from the date hereof.  In addition, any shares received by TKA pursuant to its exercise of the Warrant shall be subject to a six (6) month holding period (from the date of TKA’s exercise of the Warrant) during which such shares may not be sold in any public market for such securities. The terms and conditions with respect to the issuance of the Warrant shall be established and agreed upon between TKA and Friendable on or prior to the shooting of the first video and such details shall be summarized on Schedule A annexed hereto which Schedule, once completed, shall form part of this Agreement.  The eight (8) million common shares and the seventeen (17) million common shares underlying the Warrant shall have full piggyback registration rights such that should the Company file a registration of its securities for any purpose, the foregoing twenty-five (25) million shares shall be included for registration if they are not already registered to be free trading.

 

	
  

	
c.

	
TKA and Friendable agree that the fair market value of the foregoing Warrant is not ascertainable due to the large number of shares to be issued thereunder and the lack of a market for such shares.  As a consequence, the parties agree that they shall reflect the tax consequences of the Warrant at such time as it is exercised and a fair market value becomes determinable.

 

	
5.

	
Right of Renewal

Client shall, for a period of thirty (30) days following the completion of all of the Deliverables hereunder, have the option to renew this Agreement upon the same terms and conditions as set forth herein including its right of first refusal on all video opportunities before any other TKA client in the app category.  In the event that Client elects to renew this Agreement, it shall provide written notice of such renewal to TKA within the foregoing delay period.

 

 

	
6.

	
Grant of Rights

	
  

	
a.

	
You hereby authorize us to act as your agent with respect to the services described herein and to negotiate and, where required, enter into agreements on your behalf with respect to the subject matter hereof.

	
  

	
b.

	
You further grant to Artist, his/her successors, licensees and assigns, the right and license to use the Brand and the name and likeness and designs, trademarks, logos and physical characteristics of the Product in the Productions and to exhibit, publicize and otherwise utilize and exploit the Productions containing the Product (and any other related Production including a modification of the original Productions) by any and all means and methods whether now known or hereafter created or devised, in any and all media, whether now known or hereafter created or devised, including but not limited to, theatrically, non-theatrically, by all forms of radio, television and via the internet, and to exploit all other related rights relating to the Productions.

  

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7.

	
Non-disclosure

All information disclosed to You relating to the characters, themes, plots, story and story elements, designs, effects and special effects, hardware, artwork and visual representations in connection with the development and production of the Productions shall be considered confidential and shall be retained in confidence by You.  Further, any information obtained by TKA or Client about the other party's business including, without limitation, marketing programs, customer lists and other customer data, financial information, pricing information, information concerning business plans or business strategy, technical and non-technical information, trade secrets, all information related to the party’s current, future, and proposed products and services and the existence and subject matter of this Agreement shall be retained in confidence.

	
8.

	
Verification of Exposure

Verification of exposure shall take place as follows:

	 	
a.

	
TKA shall work with the Artist to establish the most effective integration of the Brand and/or Product into the Production;

	 	
b.

	
When possible, TKA shall, prior to the filming of the Production, provide Client with a general description of how the Brand and/or Product is intended to be integrated in the Production;

	 	
c.

	
Following of the filming and editing of the Production, TKA shall obtain, and provide to Client, a first release screening of the Production for its review;

	 	
d.

	
Client shall, within forty eight (48) hours of receipt of the first release screening (the “Verification Delay”), verify that the exposure of its Brand in the Production, as set out in the Deliverables, has been satisfied;

	 	
e.

	
The criteria of identifiability of the Brand in the Production is based upon the on-screen, in-focus identification of the brand name or the Product.  Where the identification is of the brand name, such name shall be imprinted on the Product in such manner that is legible and clear, and of such a sufficient size, that an average viewer would be able to clearly identify the name without difficulty at normal playback speed in the Production.

	 	
f.

	
Client shall be entitled, during the Verification Delay, to advise TKA of any comments which it may have regarding any deficiencies in the exposure of the Brand and TKA shall, to the best of its ability, work with the Artist to resolve any deficiencies.  In the event that Client has not provided any comments during the Verification Delay, it shall be deemed to have accepted the exposure of its Brand in the Production.

  

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g.

	
Should there be disagreement relating as to whether exposure has taken place, the Parties shall in good faith attempt to resolve the dispute through meeting and conferring about the dispute.

	 	
h.

	
Any and all stills and/or video screenings furnished to You for purposes of verification of exposure shall be for the sole purpose of the aforesaid verification and may not be used by You for any other purpose, and You are strictly prohibited from distributing such stills and/or footage to third parties.

	
9.

	
Additional Services

You may assign additional products or services to us from time to time, subject to our ability to handle same. If additional products or services are assigned to us and we agree to handle same, our additional compensation must be agreed upon in writing. All other terms and conditions hereof shall apply in the same manner as with respect to the originally assigned product(s) or service(s), unless otherwise mutually agreed to in writing. Client agrees that for a period of one (1) year from the date hereof, TKA shall be the exclusive agent representing the Brand for product integration. The Parties hereto agree that any renewals, extensions or future dealings between Client and Artist or any extension of the relationship between Client and Artist shall be brokered by TKA in consideration of a reasonable brokerage fee.

	
10.

	
Liability

The Parties acknowledge that TKA is relying upon the Artist for the performance of its obligations hereunder, including the satisfying of the Deliverables.  TKA shall exercise is reasonable best efforts in the performance of its obligations under this Agreement (including the performance of the services set forth in Section 2 hereof).  Client hereby agrees to limit the liability of TKA and TKA’s employees, officers, partners and subcontractors for any and all claims, losses, costs, damages of any nature whatsoever or claim expenses from any cause or causes including attorney fees and costs, so that the total aggregate liability of TKA to Client shall not exceed the fee received by TKA from Client hereunder.  Neither Party shall be liable for incidental, punitive, exemplary, indirect or consequential damages, or lost profits arising under or related to this Agreement.

 

 

 

 

 

 

 

 

  

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11. 

	
Entire Agreement

This Agreement constitutes the entire agreement and understanding between the Parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, relating to such subject matter.

 

	
12.

	
Governing Law

This Agreement shall be governed by and interpreted and construed in accordance with the laws of the State of Florida, Broward County applicable to agreements made and to be performed in that state, without regard to any of its principles of conflicts of laws or other laws that would result in the application of the laws of another jurisdiction.

 

	
13.

	
Severability

Any section, subsection or other subdivision of this Agreement or any other provision of this Agreement which is, or becomes, illegal, invalid or unenforceable shall be severed herefrom and shall be ineffective to the extent of such illegality, invalidity or unenforceability and shall not affect or impair the remaining provisions hereof, which provisions shall (a) be severed from any illegal, invalid or unenforceable section, subsection or other subdivision of this Agreement or any other provision of this Agreement; and (b) otherwise remain in full force and effect.

	
14.

	
Waiver

No waiver, whether by conduct or otherwise, of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provisions (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided in an instrument duly executed by the Parties to be bound thereby.

	
15.

	
Counterparts

 

This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which shall only constitute one instrument.  To facilitate the execution and delivery of this Agreement, the Parties may execute and exchange counterparts of the signature pages by facsimile or e-mail, and the signature page of any Party to any counterpart may be appended to any other counterpart.

 

 

 

 

 

  

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If the above accords with your understanding and agreement, kindly indicate your consent hereto by signing in the place provided below.

Very truly yours,

TKA

Per:           /s/ Chief Executive Officer 

Chief Executive Officer

We have reviewed the foregoing and accept and agree to the terms set forth herein.

FRIENDABLE, INC.

Per:          /s/ Robert Rositano 

Robert Rositano

President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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