Appendix 9: Sample Client Agreement
The client agreement must be reviewed by a local attorney, as each state requires individual language to conform with the code. However, this template provides Event Leaders with the conceptual framework for a basic client agreement.
Client Agreement
Account number: XYZ-1
This agreement is between ABC Event Leadership Company (hereafter referred to as EVENT LEADER) and XYZ Firm (hereafter referred to as CLIENT).
I. EVENT LEADER agrees to provide:
1. Research, design, planning, coordination, and evaluation of the event entitled “The Night of a Thousand Stars.”
2. Research that will commence with the joint execution of this agreement.
3. A professional event that will begin on July 15, 2010 at 8 p.m. central time in the city of Kansas City, Kansas, and conclude on the same date at 11:00 p.m. central time.
4. A comprehensive evaluation including financial and attitudes and opinions will be submitted to CLIENT by August 15, 2010 at 5:00 p.m. central time.
5. Comprehensive general liability insurance with a $1 million limit per occurrence, naming CLIENT as additional insured for the period of the event.
II. CLIENT agrees to provide:
1. One person as principal contact and decision maker for the EVENT LEADER.
2. General liability insurance with a $1 million limit per occurrence, naming EVENT LEADER as additional insured for the period of the event.
3. Decisions in a timely manner as required by the final approved production schedule.
4. Ten (10) volunteers to coordinate registration and guest relations during the event from 7:00 p.m. central time to 11:00 p.m. central time.
III. INVESTMENT
1. The EVENT LEADER will receive a fee for professional services in the amount of $10,000 exactly. The EVENT LEADER will receive fees for all direct expenses approved by CLIENT.
IV. TERMS
1. The CLIENT agrees to provide the following payments to the EVENT LEADER as compensation for the services described above.
2. June 30, 2010: 25% of fee ($2,500) plus 50% of direct expenses.
3. July 15, 2010: 65% of fee ($6,500) plus balance of pre-approved direct expenses.
4. August 15, 2010: 10% of fee plus any additional charges approved by client plus the balance of all approved direct expenses.
V. CANCELLATION
1. Should the EVENT LEADER cancel his or her services for any reason other than acts of God, the CLIENT shall receive a refund of all prepaid fees less any costs expended on behalf of the event. Should the CLIENT cancel his or her event, the following payments shall be due:
a. Cancellation more than 120 days prior to event date: 25% of professional fee and 50% deposit of all direct expenses.
2. Cancellation less than 120 days prior to event date: 50% of professional fee and 50% deposit of all direct expenses.
3. Cancellation less than 60 days prior to event date: 75% of professional fee and 100% of all direct expenses.
4. Cancellation less than 30 days prior to event date: 100% of professional fee and 100% of all direct expenses.
VI. FORCE MAJEURE
1. This agreement is canceled automatically if the event is interrupted due to acts of God, including, but not limited to, hurricanes, tornadoes, strikes, war, volcanic eruption, earthquakes, or pestilence.
VII. ARBITRATION
1. The American Arbitration Association is designated as the official body for arbitrating any disputes resulting from this agreement.
VIII. HOLD HARMLESS and INDEMNIFICATION
1. The EVENT LEADER and CLIENT agree to hold one another harmless from negligence caused by either party and mutually indemnify one another.
IX. TIME IS OF THE ESSENCE
1. The services and related costs described in this agreement are guaranteed through 5:00 p.m. central time March 15, 2010. After this date, these services and related costs must be renegotiated.
X. THE FULL AGREEMENT
1. This agreement and any attachments constitutes the full agreement. Any changes, additions, or deletions to this agreement must be approved in writing by both parties.
XI. ACCEPTANCE
1. The parties whose signatures are affixed below agree to accept the terms and conditions stated within this agreement.
______
CLIENT DATE
______
EVENT LEADER DATE
Note: Sign both copies and return one signed original to the EVENT LEADER.
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