Retainer Agreement - Alliance Data Systems Inc.
ALLIANCE DATA SYSTEMS, INC.
RETAINER AGREEMENT
[CUSTOMER]-FALL [YEAR] SEASON
The following represents the proposed Retainer Agreement (the "Agreement")
between Alliance Data Systems, Inc. ("Alliance Data") and [CUSTOMER]
("Customer") for the Fall [YEAR] season, consisting of [AUGUST ____ THROUGH
JANUARY _____]. Customer and Alliance Data have agreed that Alliance Data will
execute certain database marketing programs defined below during the Fall [YEAR]
Season for the benefit of Customer.
ANALYTICAL RESOURCES PROVIDED BY ALLIANCE DATA
As part of the Agreement, Alliance Data commits to providing the following
resources as an Account Team to Customer during the Fall [YEAR] season:
Account Manager 100%
Senior Analyst 100%
Analyst 100%
Analyst 100%
Analyst 50%
SERVICES INCLUDED IN THE RETAINER FEE
- Strategic and tactical consulting
- Database program development, implementation, analysis, and management
- Segmentation model building using CHAID techniques
- Coordination of database programs with Alliance Data MIS, Credit Marketing
Projects Group, and Portfolio, plus Epsilon and outside vendors (as defined
in programs)
- Account administration, including billing, budgeting, maintenance of
account documentation, and ad-hoc pricing
- Data processing (tape production, CPU time)
<PAGE>
SERVICES INCLUDED IN THE RETAINER FEE (CONTINUED)
- Flexibility Clause:
In an effort to be responsive to Customer's changing business needs,
the Alliance Data Account Team can work on new, higher priority
projects outside of those described in this Agreement below as a trade
to existing, lower priority projects. Or, Customer can request
additional Analysts be added to the team to support the extra projects
with 30 days notice. Alliance Data will propose the experience level of
the Analyst to be added and the increase in retainer fee.
SERVICES EXCLUDED FROM THE RETAINER FEE
OTHER ALLIANCE DATA AGREEMENTS
- Fixed cost of the database updates and maintenance
- Credit program services provided by Alliance Data's Credit Marketing
Projects Group, except for the execution of standard Gold upgrades.
ADDITIONAL PRODUCTS AND SERVICES
These products and services can be purchased at Customer's request.
- Alliance Data's Portrait TM consumer profile product
- Demographic and Lifestyle overlays of the Customer subset
- Building statistical models (utilizing regression or neural network
modeling techniques), outside those proposed below.
- Execution of surveys and tabulation of results
- Prospecting list acquisition and processing expenses
- Insert coordination
DATABASE MARKETING FALL [YEAR] PROGRAMS
Exhibit 1 illustrates the Database marketing programs scheduled to be performed
by Alliance Data for Customer during the Fall [YEAR] season as part of this
Agreement.
2
<PAGE>
RETAINER FEE FOR THE FALL [YEAR] SEASON
Alliance Data's charge for the retainer team of one account manager, one senior
analyst, plus two and a half analysts is $________. Alliance Data will bill
Customer the base fee of $________ on the 15th of each month beginning August
15, _____ through December 15, _____, with the sixth and final bill to be
submitted on January 15, _____ totaling $_______. Payment is due within thirty
(30) days of the invoice date.
EFFECTIVE DATES
Upon receipt of written sign off below, Alliance Data will assign an a account
team to be retained by Customer for the Fall season from August ___, _____
through January ___, _____. A renewal retainer proposal for the Spring _____
Season will be submitted to Customer by ____________.
CUSTOMER
Date:
------------------------------- ---------------
(Vice President Marketing)
Date:
------------------------------- ---------------
(Chief Financial Officer)
ALLIANCE DATA SYSTEMS
Date:
------------------------------- ---------------
(Director, Database Marketing Analysis & Modeling)
3
<PAGE>
[CUSTOMER] FALL [YEAR]
SAMPLE DATABASE MARKETING PROGRAMS
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
PROGRAM TIMING TYPE CIRCULATION
--------------------------------------------------------------------------------------------------------------------
DIRECT MAIL
--------------------------------------------------------------------------------------------------------------------
Fall Preview Private Sale 8/22-23 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Venezia Event 8/29-31 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
One Day Sale 9/20-21 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Fall Sale 10/11 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Fashion Mailer (#1) Test 10/24-25 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Private Sale 11/15 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Fashion Mailer (#2) Test 11/28-29 Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Two Day Sale 12/12-13 TBD
--------------------------------------------------------------------------------------------------------------------
Repetitive Fashion Test 9/20-21, 10/11, 11/15, Strategy, Selection, Analysis TBD
& 12/12-13
--------------------------------------------------------------------------------------------------------------------
New Store Announcements August - Tape Selections (11) TBD
January
--------------------------------------------------------------------------------------------------------------------
CREDIT *
--------------------------------------------------------------------------------------------------------------------
$0 Balance Newsletter (#1) August Strategy, Database Tape TBD
Selection, Analysis
--------------------------------------------------------------------------------------------------------------------
Merchandise Insert October Analysis TBD
--------------------------------------------------------------------------------------------------------------------
Gold Upgrade (Welcome Kit) October Database Tape Selection TBD
--------------------------------------------------------------------------------------------------------------------
Miss You / Thank You October Strategy, Selection, Analysis TBD
--------------------------------------------------------------------------------------------------------------------
$0 Balance Newsletter (#2) November Strategy, Database Tape TBD
Selection, Analysis
--------------------------------------------------------------------------------------------------------------------
Holiday Card Insert December Analysis TBD
--------------------------------------------------------------------------------------------------------------------
OTHER
--------------------------------------------------------------------------------------------------------------------
Season Strategic Planning
--------------------------------------------------------------------------------------------------------------------
Trend Reports Qualitative Analysis October
--------------------------------------------------------------------------------------------------------------------
Quarterly Business Analysis August, November
--------------------------------------------------------------------------------------------------------------------
Season Results Recap September
--------------------------------------------------------------------------------------------------------------------
Competitive Data On-going
--------------------------------------------------------------------------------------------------------------------
Develop Incremental Sales Model October-November
--------------------------------------------------------------------------------------------------------------------
* Database marketing retainer does NOT cover Alliance Data Credit Marketing
Projects Group's support of Credit related programs. Credit Marketing
Projects' services for credit systems coordination, quality checking program
implementation will be covered under a separate agreement.
4