Standard Franchise Agreement
Exhibit
10.
Standard Franchise
Agreement
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1.
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UNIVERSAL INFOTAINMENT SYSTEMS
CORPORATION a USA Company existing under the Laws of the State of
Nevada, having its headquarters at:
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East
West Corporate Center
0000
Xxxx Xxxxx Xxxx, Xxxxx 000
Xxxxxxxxxx,
Xxxxxxxx, XXX
Also
represented by UNS LABS ME, a company under the United Arab Emirates Law, P. O.
Box 29558 Dubai, and represented
in the signature herein
by its Chairman Xx. Xxxxxxx X Xxxxxxxxxxx, a US Citizen, in his capacity as the
Chairman of the Company, hereinafter called the “First Party,” “Universal”
and/or “UISC.”
LOW RIDER ESTABLISHMENT.,
existing under the United Arab Emirates Law, Abu Dubai, represented by its Owner
Thani Xxxxxx Xxxxx Al Romaithi, herein after called the “Second
Party”
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2.
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Whereas
Second Party wishes to acquire a Franchise and Distribution of the
“Aftermarket” version of the UNS Navigation Multimedia System which
Franchise Universal has the right to assign to the Second Party. In
addition to this product, the second Party is given the right to represent
and distribute other Universal products as they become
available.
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3.
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Therefore the parties have
agreed as follows:
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The
above introduction shall be deemed an integral part of this
Contract and read therewith
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First
Party agrees to appoint Second Party in his capacity as a representative
Franchisee of the UNS Navi and UNS FMTS in Abu Dhabi of the United Arab
Emirates with regards to both
Systems
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A 30
day notice in writing will be required of the Second Party to the First
Party with regards to accepting or rejecting new products and services,
from the date the First Party notifies and introduces the said products to
the Second Party.
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Subsequently
all notices and or proposed agreements between the two Parties shall abide
to a (30) Thirty Day notice in
writing.
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Second
Party agrees to the appointment as the Franchisee for the above named
System UNS/Navigation and Multimedia application and UNS FMTS
Applications. Further, Second Party agreed to the conditions set forth
page 2 of this document paragraph
1.
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Second
Party agrees to provide a copy of the Legal Business LICENSE which will
show that the Headquarters Location is on a current contract and in good
standing.
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A
visible UNS Navi business sign will be also made available by Second Party
to which the “First”, will provide “Graphic Logo”. First party retains
“right of approval” of the design and location on the front of the
dealer’s place of business and any other location where franchisee plans
or will plan to display and represent Universal Products/Services. Should
any changes occur with respect to changing the Headquarters Location,
adding additional Locations through out the UAE, Second Party agrees to
notify the First Party in writing, 60 days prior to any such change or
addition, and require of the First party to physically inspect the site/location,
Signage availability, in order to safeguard the business profile
of Universal products and
Services.
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MARKETING
First
Party shall appoint a Regional Marketing Brand Manager for the purpose of
assisting the Second Party in his marketing efforts. Regional Manager will have the
"right of site and procedures inspection", as the person representing at his
capacity the First Party. Regional Manager will possess all necessary knowledge
needed regarding the Automobile Industry at the Sales Retail and Repair Sector.
Suggestions, marketing decisions will be respected by the Second Party, however
in the case where the Second Party does not agree with a decision taken by the
Regional Marketing Manager, the
Second
Party is obliged to notify the First Party in writing, stating his complaint or
disagreement. Universal shall then be obliged to reply within 72 hours and offer
a decision on the matter and which decision will be final.
MARKETING - SUPPORT- LAUNCH
of the SYSTEM
in the
UAE:
1.
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Both
parties hereto agree that the “Goal” set for First Party is at a minimum
of 660 UNS Navi Systems “installed” per month, at the “After market”
level. For this
reason the First Party shall provide the Assistance support and Marketing
to the Second Party
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2.
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Should
the 8000 in numbers of Systems for the First Year be achieved by the
Second Party, Universal (UISC) will return the AED 70,000 Deposit to the
Second Party. Further, a 24 hour & 7 days per week "Support
Center" will be provided by the First Party, for the benefit of live
support to the Second Party and that of the Second Party
Clients.
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For the
purpose of clarifying Initial Marketing, Promotional and Advertising Plan, both
Parties hereto agreed that the First Party in conjunction and co-operation with
the Second Party, plan a "Launch" of the "System" to the UAE "After Market", no
later than November
1st 2009 in Abu Dhabi
UAE first, and subsequently to the remaining Emirates to follow. The Advertising
budget proposed and agreed by both Parties shall be forwarded to Universal no
later than four weeks prior to the first “Launch.”
Both
Parties agree that the Franchise Royalty Fee of 5% on Gross Sales per Year of
the Second Party, will be "waived" for the first year, (Calendar 12 Months from
date of launching the Product) and it will come into effect on, the beginning of
the Second Year and starting with the end of the first calendar quarter of the
second Year.
ADDITIONAL
"DEALER and or DEALERS" within the: Region Territory of United Arab
Emirates.
Both
Parties agree that the Second Party shall not be obliged to keep more than
100 Systems in
stock at any time starting with the "Launch of the Product", and that Universal
must be notified immediately by the Second Party., should his Marketing efforts
see an increase of more than 660 Systems per month. Failure to notify Universal
"promptly" of such a change will result in delay of product availability, a fact
which will be a cause of a loss of considerable business income for both
parties.
Further,
both parties agree that should the "work load/product demand” become such that
the First party will recommend others to be additional Dealers/Distributors, the
Parties shall come together and mutually agree on assigning a "Dealer" or
"Dealers" within the UAE Territory/Region. These "Dealers" shall have the same
agreement with Universal as the Second Party; however they are secondary in rank
to that of the Second Party, in this respect the Second Party is allowed to
recommend such "Dealer" to Universal, and 2% of their Annual Gross Sales, will
be assigned to the First Party.
Pricing
from Universal to these potential Dealers shall be in the same structure as that
of the Second Party, and so will be the Dealers Re-Sale Pricing
Structure.
This
"Franchise Agreement" between the Parties is of a 5 Year period, with "Automatic
Renewal" to be exercised at 5 Year intervals each thereafter, commencing with
the date of signing of this Agreement.
Note: Should the
Second Party wish to end his privilege as Distributor for the Products and
Services of the First Party; a legal Notice will be required from the First
Party stating this fact 180 days prior to the Five Year end. With regards to any
legal disputes between the parties, both hereby agree that the Abu Dhabi Courts
and the Laws of UAE shall apply and be respected as the legal decision and
authority.
Both
Parties further agree that the Second Party shall carry the necessary insurance
(liability business Insurance) as required by UAE Law to cover against any
accidental or intentional damage and any lawsuit which may derive by such an
unfortunate incident to any of the Second Party clients while the vehicle was in
the Second Parties' care or trust by the client. Further, Second Party agrees to
hold (UISC) / Universal Technologies UNS
LABS ME/
and Universal Group of Companies its officers and representatives harmless and
clear of all and any responsibility that may derive through a possible damage to
a clients automobile/property/person, whether accidental or
otherwise.
First
Party reserves the option of “inspection” rights with regards to “installation
procedures” as per Universal specifications, “shop” image, and customer care.
Any possible violations will be given in “writing” to the Second Party, and the
Second will be expected to comply “back” to the Universal original
specifications within 30 days from the said report filed.
MONETARY
OBLIGATIONS
OF
FRANCHISEE
(One Time Cost; Paid Upon
Signing of the Agreement)
*Initial Cost of Franchise*
“Waived”
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Initial
cost of Franchise: 70,000 AED (USD
19,022)
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Training:
Cost of 9,450 AED (up to 12 individuals), is hereby
waived
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Training
/ Materials and certification will be
provided by First Party.
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UGR Support System: 9,000 AED
(USD 2,445)
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(This
cost is inclusive to: the “Custom Software”) created only by UISC, by
which the Franchisee’s Dealers benefits of the
following:
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Billing/Invoicing
Clients
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System
Activation, and Reports
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24X7
Support Center with Universal –
Dubai
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ADSL
Business One Plan by Etisalat Connection (-must be
secured by the Franchisee
for all locations, which will assist the Second Party in Communications
with Universal.)
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Two
Year FREE Support ONLINE with UNS Labs ME. (Subsequent Years Costs to be
determined if there may be need for it based on the use of the Service by
the Franchisee and upon mutual
agreement)
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ADVERTISING and ADVERTISING
BUDGET:
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1.
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Advertising: A 2% on per unit
purchased price allowance is given to the Second party per physical
Quarter.
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2.
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First party reserves the right to
first approval of all advertising campaigns to be issued by Second party
and Second party hereby agrees and commits to “consult” with First party
on advertising campaigns and materials prior to any
release.
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Other Waived
Costs:
Launching the
Product:
i.e.
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Fees
and Costs Locations
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Presenter/Models
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Media
Invite
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Polo
Shirts for Customers and Media personnel at the
Launch
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Printed
Marketing Materials
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Large
Display Units at the Launch Site
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Note:
Subsequent
Years Cost of Advertising to be decided between the Franchisee and
UNIVERSAL.
SIGNAGE /
OPERATIONS
Signage/Operations Supplied
by: Franchisee
First Year COSTS HAVE BEEN
WAIVED FOR THE FOLLOWING
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Business
Sign “Universal Technologies” UNS
logo
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Uniforms
with UNS LOGO (1* PERSONS x 2)
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A
two screen UV300 Multitask Operations Center Computer System (Franchisee
will pay this cost separately)
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System
Manuals
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Tissue
Boxes
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Key
Chains
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Color
Product Brochures
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Business
Cards (UNS Navi, UNS FMTS)
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INVENTORY and
PARTS
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100
Systems are required to be kept in stock starting with 15 days prior to
Launch Date, in the UAE.
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System
is quoted at: AED 9,3204 ea. (USD
2,550)
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SYSTEM COMPONENTS &
PARTS
“As
Required by Franchisee:”
WARRANTIES –
REPRESENTATIONS
Both
Parties agree that no Expressed or Intended Warranties may be acceptable to
either side unless such are in written form and are listed as “amendments to
this contract.”
SYSTEM
WARRANTY
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1.
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Universal
(UISC) (First Party) hereby gives the following “Warranty” and
commits to the Franchisee, that a “Two Year” Warranty will represent
Hardware and Software Components of the
System.
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2.
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Customer
Up-Dates will be free of Charge for the First and Second Year (24 mos.)
from the date of Purchase
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3.
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Universal
will solely be responsible for the “full replacement” of any
Hardware/Software Components of the UNS Systems sold, found to be
factory defective, as long as the
System has been activated by the “pre-qualified
technical
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personnel”
of the Franchisee
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4.
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Universal
will not warranty any System found to have been “tampered” with, after
installation by Franchisee and/or prior to
installation.
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5.
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System
is sold to Franchisee and from Franchisee to his clients, as a “licensed
System” – “Black
Box” design.
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6.
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Only
the appointed – trained and certified by Universal Technicians of the
Franchisee (after successful installation) can activate the System through
the UNS System
Management Software Application, which is installed in the UV200
Multi-task Computer Module at the Franchisee Installation site. Universal
Control Center will appoint a serial number of Activation at the time of
such activation by Franchise.
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SYSTEM and its COMPONENTS
Exhibit “A”
The
Universal UNS Navi and UNS FMTS Multimedia Telematics Systems consist of the
following standard features.
English / Arabic turn
by turn navigational instructions
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On
Board Control Module (OCM)
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Satellite
and or Aerial Imagery Navigable
Mapping
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Human
Voice/Video Guided Street Number
Navigation
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Points
of Interest
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FAX,
GSM, GPRS Etisalat Mubashir Card
(Customer provided)
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Internet
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E-mail
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WiFi-Bluetooth
capabilities
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SMS/MMS
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Word
Processing
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In
Cabin Microphone (For Phone)
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GPS
Receiver
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Power
Harness connecting the OBCM to: Touch Screen, Power/Speedometer/Break/Steering
and in the case of the FMTS version of UNS additional connections to be provided
by UISC to the Second party to satisfy the potential client needs of the First
party not to exceed the above and in addition to; seat belt warning system, tire
pressure, engine warning/service system, door lock/unlock/ad jar warning system,
passenger airbag on/off reporting system
Standard
feature:
SOS Audio Video Conferencing, (Requires user provided: Mubashir ETISALAT Card
–customer provided -or 3G connectivity SIM Card and In Cabin Camera (30fps
minimum quality –customer provided - )
Signed
this 20th day of
April 0000
Xxx Xxxxx,
UAE
First
Party:
For:
UNIVERSAL INFOTAINMENT SYSTEMS
COPROPORATION (UISC)
_________________________________
Xxxxxxx X
Xxxxxxxxxxx
Chairman
Second
Party:
For: LOW
RIDER – Abu Dhabi UAE
________________________________
Thani
Xxxxxx Xxxxx Al Romaithi
General
Manager / Director
Witness:
_________________________________
Xx. Xxxxx
X Xxxxxxx
CEO/UISC
End of
Agreement:
This
Agreement, in its English Version was prepared in 8 pages counting the present
page.