HomeMy WebLinkAboutJeff Allen - 1987-03-16RE N OULAT FORCNTY CO. UNQL ACTION-14
Date February Z 1997,
Submitted to: The; norable Mayor and Cr,".
Submitted by. Charles W. ThurnPsOnCity Ad &PFJ&0VZD'0y CITY COUNACIL
,
Prepared by: Wi
lliarn G. Ree d, Public Infr,-wa1;on-jffi
Subject: Agreement for sale of reproduction r:gh M. to surfCXTY CLAk
rr holograrp-
Consistent with Council Policy? Yes f I New Policy or Exception
Statement at Issue;, Recommendation, Analysis, Funding Source, Alternative Actions, Artachmen
STATEMENT OF ISSUE:
A marketer r of holograms he s offered to produce and sell,ait his expense copies of the surfer hologram "and
-
ijay.royalties to Om city in exchanga-for the rights to do se.
RECOMMENDATION:
Ado
.Pt,atfreement granting reproduction and safesrightsand extab0shing, royaIties to the city.
ANALYSIS:
A holUP— in- Picture of the surfer statue Was developed for thP, Purpo-se of:
a, publication on the city and I for
promotional sales. A marketer oil. such productwishes to reprint at his expense the holograms and io tali the
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through.gift th:;ps and other outlets throughout the nation. He will pay the city a royaltyI for such sales with
a guarantee of a Minima rn.0f $5,000 the first year.
FUNDING SOURCE:
None necessary., Will result in Positive revenue to the city.-,",
ALTERNATIVE ACTIONS:
I Do not approve the agreement.
2.1, Solicit othe. -proposals for hologram
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ATTACHMENTS:
Agreement between trine City and Sensory Dynamics International.
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1-1'0 4/84
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EXCLUSIVE DEALING AGREEMENT BETWEEN
n THE CITY OF HUNTINGTON BEACH AND '
��, t+,; a7EFF ALLENe AS; AN INDIVIDUAL `'-`
FOR'OGRL)i
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THIS AGREEMENT, made and entered_ nho this day, of
t
V1 1987, by' and between the CITY OF 'HUNTINGTON -BEACH,` a-':
°munic,ipai corporation of the State of .California,' hereinafter
J eferred to as "CITY," and jJEFF ALLEN of 16.0 Seminary,,'Drive, ilE,
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Hill -Valley, CA 9'4941,f.hereinafter raferred to as "ALLEN."
WHEREAS;..CITY desires to engage the services of a Hologram
'
Marketi" Specialist in the City of Huntington .Beach; and'_
ALLEN gas been selected. to perform,' said,.services,,
NOW, THEREFORE, it is 'agreed by CITY `b�'N as follows
1, 'WORK;STATEMENT
,< ALLEN shall'provide-all services as describe& in the
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Marketin 1rrangement Outlinepvh)ereinafter referred to as Exhibit
g',
"Ay ° which is attached hereand i.ncorporatel ;herein by his
reference.` Said services shall sometimes hereinafter be. referred `.
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t0 as "PROJECT."
ALLEN shall represent himselfe6nd be his sole contact
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and agent it all: consultations with CITY during the performance of
this Agreement.
2. CITY STAFF ASSISTANCE
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CITY''S Public Information Officer shall assign'a staff
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coordinator to work directly'WithnALLEhi;in the h prosecution ofthis,
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Agreement. n
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35i TIME OF PERRORMANCE.
"., Time `is of the. essence of this .�-reement. ; The services
of khe F�,LLEN are to commence has soon as' pra'cticabl'e` aftei -the
° e'xecution f this`Agreement and a13'+sks specified 'in" Exhibit' A-P
�b
ha11 be completed wiEh` n.°a reason e, time from the date"qf this
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Agreement~ o ,
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4 A YAL'"�.ibPAYMENTS n
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>I it coy 'a c?era.tion of` this =Agreement ALIEN shall, pay �Ihe
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� -CITY 'minrmtaih_ann,ual -r,xy21tie5 as, =follows:
000 durin the 'first as, follo o
y�5' r g 1' W. .
ear
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(a} $2,j.
000 not later, than October ,30�,
( $3 j'o00 not later than -_- ril 30,, 1988: °
n a (2) .`$4,0,00 not ,later, "..than April
J
30,
3? $3,000 not later'thanAil,• 1990
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( ) $,2,000„n6t later°than April. 300, 1991.
,
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(5) $1,0"00 ;minimum annual royalty thereafter. =
,ate.
In addition to`the"abMinimum royalties,, Allen shall
ove
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pay g1TY the .following royalties on asemi=annual
basis only o
n the' extent that they`\exceed such minimuim
royalties. 4
`pproximately�20%
oftest)@
ofor the"$.0
`
first 1,00,000 holograms gold '($5,OOG?00`� .$.04k @ i�ologram., for the`
second 100,0,00 hologram) sole $ 03 @ hologramrfor the third
Ft' 1T0,000' holograms sold,; $'.02;@ hologram for the `fourth 100,000,
=.
holograms sold,,$ $.01 @ hologram thereafter,. G
5. METHOD OF PAYMENT „
A CITY shall b,6ntitled,to,progress payments towa d
fixed fe6 set- forth iin Section 4 herein in a;ecordance with .the
progress and payment schedules set forth in'Exhibit �"A.
cs '' ��
ti 2�.
°
ular acKnowi"ges that RZLEN`F, mar.Ket]nc .plall8y: ,inVOiLQS
an record records are,instxuments of prbfessiol service;.
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ea,Y` ALLEN .shall notify CITY immediately if .•and when any of sai"d ,
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olicies is reduced'in coverage {er limits due to payment of a
cZa�m"Ar
b its 'insurance carrier.
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to
INDEPENDENT ;CONTRA'CTOR,
ALLEN is, and shall, b'e, acting at all "times ii the
;.,
j
�'- ppeiformance of this Agreement as an infjrpendent contractor ,• ALLEN
'71f' ° shall secure aC. his expense, 'and be responsible for `any and ' -all "
payments vof all taxes, social security, lnsurarice
.State"disability
co�npeasation, unemployment compensation `and othei payroll
"a
4 i cle&Icteions or ALLEN ,and his officers, agents and employees and 7
al"'l' business lieignses; if ariys>in with `'the 'services!o
_connection
1
be' perf�--yea, hereu'xde.r:
(� 1�1 TERMINATION OF AGREEMENT"
Ail work required hereunder shall,�be_ perfbrmed> , in -
All
"with..'the s,tanda�7ds or t'he _profession 'for s" nilar pry=
°s:» r fesai"onal�.. er rmirig services' in' "this area at ,this "time. "`CITY%2
y'
t��terminate
ALLEN'S,serviges hereunder `upon sixty (60)"days°
n,"notic for'" ause, so long as ALLEN tails to remedy such "cause;"'6
7
4 ..
,within such sixty-day, period. Any termination:' of this."Agreement
"'
by CITY'„shall be made 'in writing through the City"s Puiilic
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- Information,'Officer, notice oaf which shall be. delivered to'ALLEN "
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.as provided in Sectiod 15 herein. x
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12 z-'ASSIGNMENT AND StiBCONTRACTING
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This Agreement is apersonal service contract and she-'°'
work h'ereundpr shall not,bercielegated by ALLEN-'to any other person
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a or entity without the prior written consent of •CITY. u
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�marksj etc.., �n. such name as to,,be. mutually, agreed. upon .
coneide*ation�of= the mutual -covenants set,,forth Fie eint, the
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parties ?yree as',foi16wsd ��
2r HOLOGRAkit, Embosse'd,"Benton" (:rainbow type); hologram:
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"T e- _Ul�zmate Chal�enge�" (surfer r
_
,fi6logram%
RuETER BACKGROUND(t Neff,, Allen is, an expert -in' embossed
,-
+" z, hrilography,__"having �been�a majvz "participant in the very, f ist "� ` a.,,
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development,of. the firs, succesbfUl embos.464, holograms in '106
He has beer; involved - with state-of-the•ar.t k>olographic j
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z technology and the marketing of that technology, for the past
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al, sixteen (16) ' years;
He is. oresentl:y :having an image; n'iastered�;by-.the same; -
'holographe'rJwho mastered th`e� -urfer hologram and will soon be. J
s actively marketing thax image in varipus;pr6du t forms.
, MARK(, TIN(...:STRATEGY AND ,PRQTECTION ;,Thra marketer desires
ry
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G to piomote,,paokage,ti�adver,tise, and,,diAribute`the surfer hologram -
and for and whi'_e`doing'so,-,haveithe protection and marketing
"advantage of market `inclusivity' of 'the surfer 4image..
'
S. APPOINTN�ENT: CITTappoints Ai,LEN as exclusive and sole
,
1 «marke,ter wf;thh rights to all domestic and to ,all foreign markets
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for a,, one-year peri•od, commencing on April-L 987ALLEN6'
t h611 be reappointed for succeeding one-year periodson payment,�of
tl. •each' annual royaify payment fore each renewal, pro;riding has
4ALLEN
fulfi.T1edthe c oditions...of this agreement.')
"Not, latter than` six (6) months after the execution of this'
a agreement; ALLEN shall pa; to CITY an advanced' royalty"payment of
t.yo thousand dolYarfs ($2, 000 ) to be used for accrued ortoward .
�,, 2. 3
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f.utur'e royalties, -.with continuing royalty payments to.be-made. on an';;
annual
Royalty payments will be £igo.red on 'the Per pnn'um �
production totals minus ALLEN'sr nventory'of holograms at the end
of each annual period:iand. sample holograms andjor promotional
holograms given away (not to exceed five percent (5%) of the total
production volume}
a
6'. TPv�iDENAME RIGHTS: 'ALLEN has the right to uzie the trade
"name 'The II,ltimate Challengel' for 'the, term of this agreement6 u.
r"`ALLEN
shall obtain necessary licenses and registrations With,
appropriate governmental authorities. The tradename registrationa
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will automatically become the property of,, and' revert to-CITY'or.
termination of this agreement, and'ALLEN shall cause any such =
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transfer, to be made within sixty (60) days of termination.
7. ACCESS.>TO RECORDSs CITY shall;h�ave access to both the
'hologram's production records (Daleco Holographics,�.1603Monrov"ia
Avenue, Coa:a`Mesa, California 92627) in reference to ALLEN's, a
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fe
purchases,.,Land access to ALLEN°s, inventory records.;
8 MIN1MUM ROYALTY REQUIREMENTS: Minimum royalty payment
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v
rdquiremrgnts per annnm,,undei renewals of this agreement shall'be
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as follower royalties paid to CITY on a minimum 'of" one hundred
thousand'(>106,000) holograms per annum.''
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9. TERMINATION: ALLEN may terminate this agreeinent at any;
'
,pl times bIj not request Ong'renewal; or by notifying,.,CITY in, writing. of.
the desire of ALLEN to`ancel,this agreement. CITY mE�y terminate
this 'agreement by notifying ALLEN in writing of the termination,
,`
but only if ALLEN bas violated a provision of`thi-s agreement and