Common use of Projected Costs Clause in Contracts

Projected Costs. Bankmark's fees are disbursed monthly over the life of the project. Other costs are paid by the Bank but managed by Bankmark. As the Project Supervisor (PS) and/or Project Manager (PM) prepare to implement the various stages and expense items of this agreement, they will present to the Bank a more detailed anticipated monthly expense of the various budget category line items of the Stocksale Expenses. These monthly presentations of anticipated expense will, in turn, be reviewed with the Bank's Senior Management or the Project's designated representative every thirty (30) days. Items or services to be purchased on behalf of the Bank will be outlined in a contract or estimate form provided by the specific supplier and approved by Bank personnel prior to purchase of the item or service. Based on the assumption that the Bank will have to host 85-100 investment meetings with an average attendance of 25 attendees to meet 2,500 (minimum) qualified investors, the following costs are projected: [Is there any way to estimate a range/maximum increase for each item based upon Bankmark's experience?] Logo, Letterhead, Business Cards, Envelopes, prospectus, promotional materials, organization website (design to production), no printing. At time of execution, a supplemental contract will be presented to the Bank with a more detailed description of items and payment schedule. September $ 6,000 October $ 6,000 November $ 10,000 December $ 10,000 January $ 14,000 February $ 14,000 March $ 14,000 April $ 14,000 The staffing budget only represents a monthly estimate. As we begin the hiring process closer to the stock sale campaign, we will present a more specific (weekly) cost per person spreadsheet for approval. September $ 2,000 October $ 4,000 November $ 8,000 December $ 4,000 January $ 8,000 February $ 8,000 March $ 8,000 April $ 8,000 These amounts only represent estimates. As each month is planned in advance, the estimates will be recalculated on a per event cost. The event costs are also tracked weekly as each event occurs. Costs are posted so at all times the PM and the client know exactly where the project stands in relationship to the budget. This is a cost category tracked jointly by the client and Bankmark. • Invitations • Offering circular & all the packaging • Presentation boards for investment meetings • Letterhead, Business Cards, Envelopes The quantities, paper specification, etc. will be bid out/estimated upon completion of the design phase. If possible, Bankmark will secure a local printer provided the quality standards can be met in relationship to the budget. All print estimates and purchase orders will be signed and approved by the Bank. Internal Printing is a service provided by Bankmark whereby full digital color printing is needed only during the stock sale process. Some examples are Sponsor development handouts, Chairman Circle Advisory/Founders' Group Handout. Because Bankmark prints these files digitally in-house, the Bank is afforded a cost per piece savings in comparison to using a "Kinko's" of at least 50%. This in-house process allows Bankmark the ability to manage on behalf of the Bank ordering only what is needed on a weekly basis. Therefore, our quantity counts are low. • The chairman's' circle/Founders coffee promotion • Logo golf style shirts • Other name recognition items The specifics (i.e. count, item, color specifications, set-up fees) will be outlined in a separate agreement for approval by bank/project management prior to beginning the events process. This will include all design, dye-cast, set-up, production and shipping requirements. Speaker Honorariums are paid to any qualified industry expert identified by Bankmark. These individuals most likely have previous experience with the Bankmark program, content and format especially as it relates to regulatory dos and don'ts. They could be ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, or ▇▇▇▇▇ Lakes. Each event fee is $450 per event (80 events approx). The dollar amount listed represents an estimate amount only. The Bank will be charged on a per speaker per event basis. At the end of each 15-day period during the events phase of the project, Bankmark and the Bank will review and reconcile the speaker honorariums to be paid for that period. This is a non-negotiable item as it is a crucial part of the Bankmark process. Public and Promotional Events are events "outside of the box" or a standard event whereby the event has a theme that is usually time sensitive, that a special guest speaker has been scheduled, the event requires a broader scope and scale or marketing to draw a larger qualified audience. Any event in this category budget must be approved in advance by the Bank's Senior Management. The most important factor in holding the events cost to a minimum is to maintain a high average attendance: 1) get them to an event and 2) follow up to gauge their interest within 24-48 hours. If our goal is a minimum of 2,500 qualified attendees and we maintain an average attendance of 25 per event, the Bank can reach its capitalization goal upon completion of the 100th event. The caveat is the follow-up by Directors and the Bank is imperative to the success of the Capital Acquisition Program based on these assumptions. **Fees paid directly to Bankmark