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Agreement of Franchise

Document Cited in Related
Updated atMarch 2010

This agreement is made on this 5th day of May 2007 between...... Co.Limited, a company registered under the applicable laws of South Africa having its office at 5 Trans Road,GemLane, SouthAfrica(hereinafter called the FRANCHISOR which term shall include its successors and assigns) of the first part and..... Jewellers Limited, a company registered under the Companies Act 1956 and carrying on business at 56 Blue Diamond Apartments,Mumbai (hereinafter called the franchisee which term shall include its successors and permitted assigns) of the second part.

Whereas the FRANCHISOR is engaged in mining and manufacturing Gold Jewellery and trading in gold and gold jewelleryat the above mentioned addressand has acquired a reputation for supplying high quality ingots and jewellery under the registered Trade Marks inSouth Africafor the last 10 years and having all the requisite licences and permission from the appropriate authorities for export and sale thereof through inter alia franchisees in other countries.

And whereas the FRANCHISOR has a paid up capital equivalent to Rs. 99,000 crores and has assets worth Rs. 10,00,000 crores and has been making regular profits commensurate to its investment.

And whereas the FRANCHISOR has acquired a reputation for its brand namesEVITA andEVAL and goodwill for quality of its gold and jewellery.

And whereas the franchisee is a company registered under the Companies Act 1956 with a paid-up capital of Rs. 10 crores carrying on business as a Jeweller having the requisite technical and administrative personnel and turnover of Rs. 20 crores per year with a profit of Rs. 2 crores per year.

And whereas the franchisee has several buildings in good localities where existing outlets are situate and where other outlets can be obtained for sale of jewellery.

And whereas the franchisee has inspected the relevant Title Deeds, Licences, Balance Sheets and other documents of the FRANCHISOR and satisfied itself about the goodwill, credit-worthiness and ability to keep its commitments, render technical services and maintain good trade relations for mutual benefit.

And whereas the FRANCHISOR has made local enquiries about the franchisee, inspected its Title Deeds, Licences, Balance Sheets and other relevant documents and inspected the Works site and had discussions with the technical personnel and satisfied itself about the competence and ability of the franchisee to promote the sales of the FRANCHISOR’s gold, gold products and jewellery from the franchisee’s present outlets and its ability to honour its commitments as to the payment of Royalty and other obligations including the improvement and development of the franchisee company.

And whereas the FRANCHISOR has given the lists of franchisee in other countries and in India of the said FRANCHISOR.

And whereas the FRANCHISOR has been given list of companies of other FRANCHISORs for which the franchisee is acting in India and the Trade Marks and service marks under which the franchisee is carrying on business.

And whereas the FRANCHISOR has agreed to give the franchisee the right to use the FRANCHISOR’s Trade Marks, service marks, business systems, operation manual and to impart initial and ongoing training to the...

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