<br />Elk Grove Village
<br />This Agreement (the "Agreement") is by and among Chicago Running and Special Events Management, Inc., d/b/a
<br />Special Events Management (hereinafter referred to as "Agency") with a mailing address of 1960 North Clybourn
<br />Ave., Chicago, IL 60614 and Village of Elk Grove, (hereinafter referred to as "Client"), with a mailing address of Go
<br />901 Wellington Avenue, Elk Grove, Village IL 60007-3499. This Agreement confines the terms and conditions upon
<br />which Agency will render marketing, project management and revenue and expense management services to
<br />Client for the 2006 Home Giveaway Raffle (Program) as outlined in Addendum "A".
<br />1. Engagement and Term. Client engages Agency to provide marketing and related services for Client,
<br />upon the terms and conditions set forth in this agreement. The teen of the engagement will commence on
<br />June 1, 2005, and will end on August 30, 2006, unless sooner terminated as provided in this agreement.
<br />2. Fees. As compensation for services rendered in connection with the Program, Client shall pay Agency a
<br />fee of $ $48,000.00 (the "Base Fee"). The Base Fee covers Agency completion of those portions of the
<br />Program mutually agreed upon, provided there are no substantial changes in the scope of Agency's
<br />engagement with Client. If, due to changes requested by Client, the number of hours necessary for
<br />Agency to complete the Program increase substantially, and/or to finalize those portions of the Program not
<br />covered by the Base Fee, Client will pay Agency the additional fees mutually agreed upon prior to said
<br />service being rendered.
<br />3. Payment. Upon Client's execution of this letter, Client will pay Agency an initial base fee payment of
<br />$6,000.00 and then subsequent monthly base fee payments of $3,500.00 no later than the 10th of each
<br />month. Expenses, if applicable, will be billed and payable on a monthly basis. If any past due balance
<br />remains outstanding more than 45 days from its due date, until such overdue statement is paid in full,
<br />Agency will, at its option: (i) stop work on the Program; (ii) withhold deliverables to Client under the
<br />Program then process only if Client pays for the same in full on or before delivery; or (iii) terminate the
<br />Program. Upon any such termination of the Program, Agency shall have the right to retain possession and
<br />ownership of any work in progress under the Program
<br />4. Expenses. In addition to Fees invoiced to Client, Client shall reimburse Agency for all budgeted marketing
<br />and out-of-pocket expenses incurred by Agency on behalf of Client (collectively, the "Expenses"), including
<br />but not limited to, print advertising placements, printing and reproduction, outreach coordination,
<br />messenger service, wire service, web design, graphic design, travel, lodging, meals, photography, clipping
<br />services, overnight services and audio/video retrieval and dubbing. Agency agrees not to incur any non -
<br />agreed upon individual reimbursable Expense on Client's behalf in excess of $250.00, without Client's prior
<br />approval. All Expenses reimbursable to Agency shall be itemized and included in the invoices sent from
<br />Agency to Client under Section 3 above.
<br />5. Collection/Enforcement Expenses. If Agency retains the services of any attorney or entity to assist
<br />Agency in receiving payments of Fees or Expenses due under this engagement, Client shall reimburse
<br />Agency, on demand, for all costs and expenses Agency incurs (including but not limited to attorneys' and
<br />paralegals' fees) in collecting any such amounts.