Proposal to Wayne Telecom for: Development of Marketing Program From: Martin Stone, President Laura Andersen, Vice President Mark Ward, Account Executive Stone Marketing Services 105 Monton Lane Floral Park, NY 11001 August 25, 1998 Table of Contents Stone Marketing Services: Who We Are 3 A profound understanding of IT and telecom -- and a proven record of success 3 Development of Wayne Telecom Marketing Program 4 Project Description 4 Specifications 4 What We Will Deliver 4 Assumptions 5 Creative, Design and Production 5 Copywriting and Editing Services 5 General Schedule 7 Estimate 8 Billing 9 Terms and Conditions 10 Stone Marketing Services: Who We Are Stone Marketing Services is a full-service marketing communications and strategy firm that specializes in working with telecommunications and information technology companies. Our portfolio of services includes consulting and marketing planning, as well as creative and production services encompassing both traditional and electronic media. Our marketing programs have successfully addressed the needs of a wide range of constituencies, from executive decision-makers to internal sales forces, from resellers to consumers. * For Allmedia Solutions, we planned the launch of a new family of networking products, creating comprehensive salesware for both the Allmedia sales force and service providers who resell the equipment along with their own services * For Frister Consulting, we wrote and produced a proposal that closed several hundred million dollars in business with a leading Fortune 500 company * For NorCom, we published a quarterly magazine designed to cross-sell four families of voice and data products in global markets * For Stuart Technologies, we produced a comprehensive marketing program that demonstrated the added value of its personal computers, successfully countering objections based on price/performance Our excellent reputation is based on our willingness to understand complex subject matter, respond with creative solutions, and attend to detail, while keeping a close eye on budget and scheduling concerns. Stone Marketing Services maintains an absolute commitment to client service and client confidentiality. All of our clients have personal and direct access at all times, not only to their account executive, but also to all Stone Marketing Services staff working on their account. We respond quickly. We understand your products and your market. Above all, we add value. Development of Wayne Telecom Marketing Program Project #2,571 [Include in-depth description of project] Project Description Specifications In order to reach the fastest-growing segments of the $40 billion global networking marketplace, Wayne Telecom requires detailed strategies and plans for marketing next-generation networking products to communications service providers. In this document, Stone Marketing Services proposes to develop these strategies and plans within the next 35 days (with detailed global recommendations to follow soon thereafter), and to support Wayne Telecom in the rapid implementation of these strategies and plans throughout the remainder of your fiscal year. What We Will Deliver We will deliver the following: * Specific recommendations concerning Wayne Telecom's short- and medium-term data networking marketing priorities * Market and competitive analysis supporting these recommendations * A clear statement to your marketplace about Wayne Telecom's compelling advantages as a data networking supplier * Detailed recommendations for an integrated marketing toolkit covering print support and electronic media; sales force support; relationship building through conferences, direct response, and database marketing; and other components as appropriate * Specific input and/or direction, as appropriate, for Wayne Telecom's existing internal and external resources, including your global marketing, public relations and training organizations, and your advertising agency of record Assumptions Our prices reflect the following assumptions. If any of these assumptions do not apply, your Stone Marketing Services Account Executive will be pleased to work with you to adjust them, and to adjust the prices if necessary. Creative, Design and Production Comprehensives Stone Marketing Services will provide two sets of creative showing preliminary designs for the cover and one spread. Upon approval, Stone Marketing Services will produce design templates. Our prices are based on up to 10% changes of the approved design. Proofs Stone Marketing Services will provide two sets of color proofs, the second for confirmation only. Changes on the final confirmation copy will be considered Author's Alternations (AAs), subject to billing at the hourly rates specified in our Terms and Conditions. Illustration/Photography All photo illustrations (photo collages), stock or custom illustrations and or photography, custom charts, tables and graphs are not included, and will be estimated separately as needed. Copywriting and Editing Services Drafts Provided After reviewing your provided background materials, Stone Marketing Services will provide two drafts and a final confirmation copy. Our copy pricing is based upon no more than 35% change on first draft, 15% on second draft; final copy is for confirmation only. Revisions Process To maximize accuracy, efficiency and speed, we prefer that your changes be coordinated in a single Microsoft Word document using Word's Track Changes (or Revision Marks) tool, and E-mailed to Stone Marketing Services. If you need to deliver revisions via another method, or if you need assistance with using Word's tools, your Account Executive will be pleased to assist. Any changes received after signoff on final copy are billed as Author's Alterations (AAs) at the hourly rate specified in our terms and conditions. Meetings Our prices include one-two onsite meetings to review design and copy. File Delivery Unless specified otherwise, we provide one electronic copy of all document files, in Word 6 format. Approvals We assume that your organization will provide a single point of contact for all copy and design issues. We ask that you obtain all internal signoffs, including legal review if needed, consistent with the schedule we agree upon. Additional Items Color proofs, color keys, match prints, pre-press film, messenger, overnight deliveries, out-of-pocket expenses, travel costs outside of the New York Metropolitan area and NJ state sales tax are not included. General Schedule Beginning with your approval to start work, Stone Marketing Services will follow this timeline: Task Week 1 Week 2 Week 3 Week 4 Week 5 Phase I: Research Phase II: Analysis Phase III: Program Design We expect that each phase will culminate in a meeting to review our work, agree on conclusions, and move forward. At the end of Week 5, we will deliver our comprehensive strategy and plan. Estimate [ESTIMATED COSTS HERE] Billing Our prices are based on our understanding of requirements and schedule set forth above. Should your requirements or the schedule change, the price will be adjusted accordingly. Our billing schedule is as follows: the first 35% is due to begin work, the second 35% is due at delivery of the rough illustration and the final 30% is due at delivery of our disk/final mechanicals. Prices are based on the hourly rates described in Stone Marketing Services Terms and Conditions and are subject to those Terms and Conditions. Terms and Conditions 1. Prices quoted within this contract are valid for 30 days from the date posted on the first page. 2. You have retained Stone Marketing Services, Inc. ("Stone Marketing Services") to perform the services described to you ("the project"). Stone Marketing Services may retain third parties to assist in the Project. While Stone Marketing Services will use its best effort to avoid any loss to you by the failure of any such party to properly perform its duties, Stone Marketing Services shall not be liable or responsible for such failure. 3. In addition to the price for the Project, you will also be responsible for the following expenses: (a) All direct costs of mailing, photocopying, packaging, shipping, taxes and duties and telephone calls and e-mail incurred in connection with Stone Marketing Services performance of its services. (b) All costs for any necessary travel done in connection with the Project (outside of the NY metropolitan area) including, without limitation, food and lodging; and (c) all other out-of-pocket costs incurred in connection with the Project. 4. All time periods set forth in the proposal are estimates and while Stone Marketing Services will use its best efforts to meet the time schedule, we shall not be responsible for delays caused by you or beyond our reasonable control. 5. Upon your acceptance of our proposal, these terms and conditions shall be binding upon you and Stone Marketing Services and our respective successors and assigns. 6. Prices are based on the hourly rate schedule: of $100 per hour. These rates do not apply when work being done is considered a "rush" job, or for weekend, overnight or holiday hours. In those cases an additional 50% is added to our standard rates. The rate schedule above does not apply for "critical rush" jobs. Critical rush jobs are those that need to be delivered in a third to one quarter the normal time frame. Critical rush jobs are billed at double our standard hourly rates. 7. If you terminate this contract, except for material default by Stone Marketing Services, you shall pay (a) an amount equal to the aggregate time expended on the Project prior to receipt of notice of termination and any necessary time spent thereafter to terminate the Project multiplied by $200. (b) all third party costs incurred up to the receipt of notice of termination plus any unavoidable cost incurred thereafter; (c) all expenses referred to in 3 above up to the receipt of the notice of termination plus any unavoidable cost incurred thereafter; and (d) an amount equal to 10% of the total price for the Project. 8. The liability of Stone Marketing Services with respect to this proposal shall not exceed the sum of $2,000.00. In no event shall Stone Marketing Services be liable for incidental consequentials or special damages even it is informed of such potential damages. Your remedies as set forth herein are exclusive. The client is responsible for all legal fees relating to the enforcement of this contract. 9. This contract may be canceled, by either party, with 90 days written notice. Proposal To [CUSTOMER NAME] • PROPOSAL NAME•PROJECT # XXX • DATE Page 2