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Box Trading (Pvt) Ltd

Draft Franchise Agreement Page 1 of 12


THIS AGREEMENT is made on the 1
March of 2013 BETWEEN:

BB!! S"AR "T# $hose UK registered office is at 215 Normanton
Road !er"# !E2$ %US UK ha%in& s'( office in )a*istan &'&o( Trading )*+t, -td 1.
Ma/inine &e+er0# Center 1inna2 A+en3e &03e Area Is0ama"ad *a4istan )5t2e


A&C )*+t, -td' $hose registered office is at S2o6 7 12$ Street 7 12$ a"c
Road 89: Area Is0ama"ad ,-the .ranchisee-/

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 2 of 12

NW IT IS AGREE# as fo00o$s:


In this a&reement the fo00o$in& e12ressions sha00 ha%e the fo00o$in& meanin&s:

131 -The .ranchise- sha00 mean a franchise of the ('siness o2erated (4 the .ranchisor
name045 B3 B! Tradin& ,)%t/ "td+

132 -The .ranchise B'siness- sha00 mean the .ranchise ('siness o2erated (4 the
.ranchisee in terms of this a&reement+

133 -The .ranchisee Man'a06 sha00 mean the o2erationa0 man'a0 &i%en (4 the .ranchisor
to the .ranchisee at the start of this a&reement+

137 -The Initia0 .ranchise .ee- sha00 mean the initia0 cost of the .ranchise as 2aid (4 the
.ranchisee to the .ranchisor+

138 -Inte00ect'a0 )ro2ert46 sha00 mean those trade mar*s5 ser%ice mar*s5 0o&os and a00
other inte00ect'a0 2ro2ert4 0isted in Sched'0e 2+

139 :;no$<ho$6 sha00 mean a (od4 of non<2atented 2ractica0 information5 res'0tin& from
e12erience and testin& (4 the .ranchisor5 $hich is secret5 s'(stantia0 and identified:

:secret6 means that the *no$<ho$5 as a (od4 or in the 2recise confi&'ration and
assem(04 of its com2onents5 is not &enera004 *no$n or easi04 accessi(0e+ it is not
0imited in the narro$ sense that each indi%id'a0 com2onent of the *no$<ho$ sho'0d
(e tota004 'n*no$n or 'no(taina(0e o'tside the .ranchisor=s ('siness+

:s'(stantia06 means the *no$<ho$ inc0'des information $hich is of im2ortance for the
sa0e of &oods or the 2ro%ision of ser%ices to end 'sers5 and in 2artic'0ar for the
2resentation of &oods for sa0e5 the 2rocessin& of &oods in connection $ith the
2ro%ision of ser%ices5 methods of dea0in& $ith c'stomers5 and administration and
financia0 mana&ement+ the *no$<ho$ m'st (e 'sef'0 for the .ranchisee (4 (ein&
ca2a(0e5 at the date of conc0'sion of the a&reement5 of im2ro%in& the com2etiti%e
2osition of the .ranchisee5 in 2artic'0ar (4 im2ro%in& the .ranchisee>s 2erformance or
he02in& it to enter a ne$ mar*et+

:identified6 means that the *no$<ho$ m'st (e descri(ed in a s'fficient04
com2rehensi%e manner so as to ma*e it 2ossi(0e to %erif4 that it f'0fi00s the criteria of
secrec4 and s'(stantia0it4+

13? -Mana&ement Ser%ice .ee- sha00 mean the cost of mana&in& and o%erseein& the
.ranchise as 2aid (4 the .ranchisee to the .ranchisor+

13@ -)rod'ct .ee- sha00 mean the cost of 2rod'cts and materia0s ordered from the
.ranchisor as 2aid (4 the .ranchisee to the .ranchisor+

13A -Mar*etin& .ee- sha00 mean the cost of mar*etin& the .ranchise as 2aid (4 the
.ranchisee to the .ranchisor+

1310 :The Territor46 sha00 mean the area or areas 0isted in Sched'0e 13

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 3 of 12


231 The .ranchisor a22oints the .ranchisee on an non e1c0'si%e (asis3 E1c0'si%it4 $i00
on04 (e &i%en if the fo00o$in& n'm(er of franchises are 2'rchased (4 the franchisee in
the fo00o$in& territories:

Sho'0d e1c0'si%it4 (e &i%en in an4 area $ith in 2artic'0ar cit4 5 then the 2erformance
tar&ets detai0ed in Sched'0e 1 of this a&reement $i00 need to (e met to maintain the
e1c0'si%e arran&ement3

E1c0'si%it4 does not e1c0'de the franchisor from o2enin& in an4 territor4 sho'0d the4
$ish to3

232 The .ranchisor here(4 a22oints to the .ranchisee a00 the re0e%ant ri&hts to carr4 on
('siness as a .ranchisee3

$ -;CATI;N

The .ranchisee $i00 o2erate the .ranchised B'siness from the a&reed '2on Area $ith
in a00o$ed cit4 or to$n3) As Franc2isor can 2a+e m30ti60e Franc2isee <it2 in a
6artic30ar cit# de6ending 36on t2e demogra62# and "3siness 6otentia0 of a
6artic30ar cit#,


731 This a&reement sha00 remain in force for a 2eriod of FI>E 9EARS from the date of
si&nat're (4 the 2arties and is (ased on 2erformance tar&ets detai0ed in sched'0e 1
(ein& achie%ed3

732 The .ranchisor consents to a00o$ the .ranchisee to rene$ the a&reement s'(Bect to
rene$a0 terms (ein& a&reed and $here the .ranchisee has o2erated the .ranchise
s'ccessf'004 and in accordance $ith the terms of this a&reement and the .ranchisee
2erationa0 Man'a03


831 The .ranchisee $i00 2a4 to the .ranchisor the initia0 .ranchise .ee of Rs' 88888
)R36ees ((((((( on0#, for a&reed '2 territor4,s/ and 0ocation,s/

The franchisee $i00 2a4 to the .ranchisor a s'm of Rs' 88888 )R36ees (((((((
on0#, $hich $i00 (e 'sed to 2'rchase stoc* for the res2ecti%e franchise o't0et ,this
inc0'des the dis20a4 stoc*/

832 The .ranchisee $i00 2a4 a Mana&ement Ser%ice .ee of 2C of an4 order %a0'e 20aced3

833 A00 2a4ments m'st (e 2aid thro'&h Dross DheE'e or Ban* #raft fa%o'rin& B3Bo1
Tradin& ,)ri%ate/ "td dra$n a(0e at )a*istani Ban*s3

837 The .ranchisee ma4 (e as*ed to contri('te to$ards an Mar*etin& .ee3 The amo'nt
of this fee sha00 (e determined (4 the .ranchisor accordin& to the 0e%e0 of ad%ertisin&

838 A00 fees are d'e for 2a4ment as 2er the in%oice criteria3 No credit terms are offered3

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 4 of 12

83? The .ranchisor is a0so entit0ed to reco%er a00 reasona(0e e12enses inc'rred in
o(tainin& 2a4ment from the .ranchisee $here an4 2a4ment d'e to the .ranchisor is


#'rin& the term of the a&reement the .ranchisor $i00:

931 2ro%ide detai0ed technica0 2rod'ct *no$0ed&e and franchise store 0a4o'ts $hich m'st
(e adhered to+

932 2ro%ide initia0 trainin& to the .ranchisee so that the .ranchisee can o2erate the
.ranchise s'ccessf'004 and offer on&oin& trainin& $here the .ranchisor deems
necessar43 An4 f'rther trainin& after the initia0 trainin& session ma4 (e char&ea(0e at
a reasona(0e rate3

933 2ro%ide re&'0ar monitorin& of the .ranchise to ens're that acce2ta(0e standards of
o2eration are (ein& met and that an4 sa0es tar&ets set (4 the .ranchisor are achie%ed
(4 the .ranchisee+

937 2ro%ide re&'0ar '2dates to the .ranchisee on mar*etin& strate&4 for the .ranchise3


#'rin& the term of the a&reement the .ranchisee $i00:

?31 com204 $ith the terms sti2'0ated in this a&reement at a00 times+

?32 de%ote $hate%er time and attention to the .ranchise as is necessar4 to carr4 o't and
2roc're the &reatest %o0'me of ('siness consistent $ith the 2ro%ision of a &ood
ser%ice to c'stomers+

?33 do e%er4thin& that is reE'ired to 2romote and e12and the .ranchise+

?37 2rotect the name and &ood$i00 of the .ranchise (4 cond'ctin& ('siness in a
res2onsi(0e manner+

?38 restrict the 'se of the .ranchise name and assets for the 2'r2ose of the .ranchise

?39 a(stain from an4 direct or indirect in%o0%ement $ith a com2etin& ('siness+

?3? cond'ct the .ranchise ('siness from the address &i%en in this a&reement and fit o't
said address as 2er the instr'ctions &i%en (4 the .ranchisor+

?3@ o(ser%e a00 nationa05 re&iona0 and 0oca0 0a$s of the Territor4+

?3A re&ister the .ranchise for Sa0es Ta1 and Income Ta1 and an4 other ta1es that ma4
a2204 in the Territor4 if reE'ired+

?310 o2erate %a0id ins'rance 2o0icies to co%er .ranchise 2ro2ert4 and contents5 2'(0ic
0ia(i0it45 %ehic0es and other assets and 0ia(i0ities of the .ranchise B'siness+

?311 o(tain a00 necessar4 0icences reE'ired to o2erate the .ranchise in the Territor4+

?312 not disc0ose to third 2arties the *no$<ho$ 2ro%ided (4 the .ranchisor3
B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 5 of 12

?313 the franchisee a&rees not to 2romoteFse00 an4 other 2rod'cts or (rands in the
franchised o't0et3

?317 the franchisee $i00 see* 2ermission from the franchisor


@31 The .ranchisee is reE'ired to maintain f'00 and acc'rate records for the d'ration of
the .ranchise3

@32 The .ranchisee is reE'ired to 2ro%ide the .ranchisor $ith access to acco'nts he0d (4
the .ranchisee in res2ect of the .ranchise B'siness on a ann'a0 (asis or $ith the
.ranchisor &i%in& 10 da4s notice to the .ranchisee3

@37 The .ranchisee is reE'ired to 2ro%ide the .ranchisor $ith detai0s of a00 mar*etin&
20ans carried o't and an4 f't're 20ans (4 the .ranchisee3


A31 The .ranchisor &rants to the .ranchisee a00 ri&hts to 'se the trade mar*s5 co24ri&hts5
2atents5 0iterat're5 0o&os5 *no$<ho$ and other inte00ect'a0 2ro2ert4 as detai0ed in
Sched'0e 2 of this a&reement on04 at the a&reed 2ro2ert4Fsite5 s'(Bect to the
restrictions in D0a'se A32 of this a&reement3

A32 The .ranchisee sha00 not 'se the Inte00ect'a0 )ro2ert4 in an4 $a4 so as to in%a0idate
an4 re&istration reE'irements or 2ermit the 'se of the Inte00ect'a0 )ro2ert4 (4 an4
third 2arties3

A33 The 2ermission &ranted (4 the .ranchisor to the .ranchisee in res2ect of the 'se of
the Inte00ect'a0 )ro2ert4 (e0on&in& to the .ranchisor e1ists on04 for the d'ration of the

A37 The o$nershi2 of the Inte00ect'a0 )ro2ert4 remains $ith the .ranchisor3


1031 A00 terms of this a&reement and information re0atin& to the .ranchise sha00 (e *e2t
confidentia0 (4 the .ranchisee for the term of the .ranchise and for a 2eriod of fi%e
4ears from the date of termination of this a&reement 'n0ess disc0os're is reE'ired (4
0a$ in the B'risdiction of this a&reement3

1032 Donfidentia0 information inc0'des5 ('t is not 0imited to5 financia05 mar*etin&5 sa0es5
trade and technica0 data3


1131 The .ranchisee m'st com204 $ith a00 2roced'res set o't (4 the .ranchisor3

1132 )ersons em20o4ed (4 the .ranchisee $ho fai0 to meet the reE'isite standards of
em20o4ment as sti2'0ated (4 the .ranchisor m'st (e dismissed (4 the .ranchisee3
An4 costs associated $ith s'ch a dismissa0 are the res2onsi(i0it4 of the .ranchisee3

1137 The .ranchisee m'st dea0 $ith a00 c'stomer com20aints 2rom2t04 and in accordance
$ith the standards sti2'0ated (4 the .ranchisor3 An4 com20aint 'na(0e to (e reso0%ed
'nder these terms m'st (e notified to the .ranchisor immediate043

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 6 of 12


1231 The .ranchisee is reE'ired to a00o$ ins2ections of the .ranchise B'siness (4 the
.ranchisor at an4 time3

1232 )rod'cts and eE'i2ment reE'ired (4 the .ranchisee for the 2'r2ose of o2eratin& the
.ranchise m'st (e 2'rchased from the s'220iers nominated (4 the .ranchisor3
A0ternati%e s'220iers are 2ermitted $ith the 2rior consent of the .ranchisor3


1331 The .ranchisee a&rees to indemnif4 the .ranchisor a&ainst a00 dama&e5 0oss or
0ia(i0it4 s'ffered (4 the .ranchisor as a res'0t of the actions or omissions of the

1332 The .ranchisor sha00 not (e 0ia(0e to the .ranchisee for an4 direct or indirect dama&es
$hether act'a0 or reasona(04 foreseen3

1333 The .ranchisor and .ranchisee sha00 indemnif4 each other for fra'd5 2ersona0 inB'r4
or death ca'sed (4 the ne&0i&ence of their em20o4ees $hi0st 2erformin& their d'ties in
terms of this a&reement3

1337 A00 other 0ia(i0it45 not e12ress04 ass'med $ithin this a&reement5 is e1c0'ded3

1338 The .ranchisor and .ranchisee here(4 a&ree that the 0imitations and e1c0'sions of
0ia(i0it4 set o't in this a&reement are reasona(0e3


1731 )ermission for the .ranchisee to se00 the .ranchise sho'0d not (e 'nreasona(04
$ithhe0d (4 the .ranchisor sho'0d the necessar4 conditions reE'ired for o(tainin& an
initia0 .ranchise (e met (4 an4 2ros2ecti%e 2'rchaser3

1732 The *no$<ho$ and other confidentia0 information re0atin& to the .ranchise m'st not
(e 2assed to an4 2ros2ecti%e 2'rchaser 2rior to a confidentia0it4 a&reement (ein&

1733 The .ranchisee m'st meet a00 the .ranchisor=s 0e&a0 and other costs associated $ith
the sa0e of the .ranchise as $e00 as 8C of the 2'rchase 2rice in res2ect of
administrati%e e12enses3

1737 If the .ranchisee reE'ests that the .ranchisor find a s'ita(0e 2'rchaser for the
.ranchise then a fee of 8C of the 2'rchase 2rice is 2a4a(0e (4 the .ranchisee to the

1738 In the e%ent of the .ranchisee se00in& the .ranchise the .ranchisor m'st (e &i%en the
o2tion to 2'rchase the .ranchise at the same 2rice and in the same terms as the
2ro2osed 2'rchaser3


1831 This a&reement ma4 (e terminated $itho't 2reB'dice to an4 ri&ht or remed4 either
2art4 ma4 ha%e a&ainst the other for (reach or non<2erformance of this a&reement if
an4 of the fo00o$in& circ'mstances arise:

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Draft Franchise Agreement Page 7 of 12

183131 either 2art4 commits a s'(stantia0 (reach of this a&reement inc0'din&5 ('t not
0imited to5 non<2erformance5 defa'0t or ne&0ect of the d'ties as s2ecified in
this a&reement5 the .ranchisee fai0in& to o2en the o't0et as a&reed5 the
termination of an4 0icence needed for the o't0et to f'nction5 the con%iction of a
crimina0 offence $hich materia004 affects the o2eration of the .ranchise
B'siness or the .ranchisee 2ro%idin& fa0se or mis0eadin& information to the

183132 2ersistent (reaches of an4 terms of this a&reement $hich are not remedied
after thirt4 ,30/ da4s> notice of the (reach to the defa'0tin& 2art4+

183133 $here the &enera0 cond'ct of the .ranchisee is 0i*e04 to ha%e a serio's or
detrimenta0 effect '2on the .ranchisor+

183137 either 2art4 is 'na(0e or has no reasona(0e 2ros2ects of 2a4in& their de(ts or
enters into an a&reement $ith creditors to the detriment of the .ranchise5 or
(ecomes s'(Bect to an administration order as a com2an45 or &oes into
0iE'idation or has the recei%er of an4 assets a22ointed or threatens to cease
o2eratin& the .ranchise3

1832 Termination $i00 (e immediate '2on $ritten notice to the offendin& 2art4 and $itho't
2reB'dice to an4 remed4 either 2art4 ma4 ha%e a&ainst the other for an4 (reach
committed 2rior to the date of s'ch termination or $hich &a%e rise to the termination3

1833 G2on termination of this a&reement the .ranchisee sha00 2rom2t04 ret'rn a00
doc'mentation re0atin& to the 2rod'cts5 ser%ices and ('siness acti%ities of the
.ranchise that ha%e re0e%ance to the .ranchisor3

1837 A00 terms of this a&reement intended (4 the .ranchisor to s'r%i%e an4 termination of
the a&reement sha00 contin'e5 inc0'din&5 ('t not 0imited to5 confidentia0it4 and
inte00ect'a0 2ro2ert4 conditions3

1838 In case of termination there $i00 (e no c0aim of ref'nd a&ainst amo'nt 2aid to
.ranchisor (4 .ranchisee3


1931 The .ranchisee sha00 not for a 2eriod of 27 months after the termination of this
a&reement (e direct04 or indirect04 in%o0%ed $ith a third 2art4 ('siness that com2etes
$ith the .ranchise3 This inc0'des5 ('t is not 0imited to5 the de%e0o2ment5 2romotion5
sa0e or s'2204 of an4 2rod'cts or ser%ices that com2ete $ith the 2rod'cts and
ser%ices of the .ranchisor3

1932 The .ranchisee sha00 not for a 2eriod of 27 months after the termination of this
a&reement a22roach or can%ass c'stomers or former c'stomers of the .ranchise3

1933 The .ranchisee sha00 not disc0ose an4 information or co24 an4 2art of the .ranchisors
('siness mode0 to an4 third 2art4 at an4 time after the termination3

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 8 of 12


An4 notice reE'ired to (e &i%en (4 either 2art4 to the other ma4 (e sent (4 either
emai05 fa1 or recorded de0i%er4 to the most recent emai0 address5 fa1 n'm(er or
address notified to the other 2art45 and if sent (4 emai0 sha00 'n0ess the contrar4 is
2ro%ed (e deemed to (e recei%ed on the da4 it $as sent or if sent (4 fa1 sha00 (e
deemed to (e ser%ed on recei2t of an error free transmission re2ort5 or if sent (4
recorded de0i%er4 sha00 (e deemed to (e ser%ed 2 da4s fo00o$in& the date of 2ostin&3


Neither 2art4 sha00 (e 0ia(0e for de0a4 or fai0're to 2erform an4 o(0i&ation 'nder this
a&reement if the de0a4 or fai0're is ca'sed (4 an4 circ'mstance (e4ond their
reasona(0e contro05 inc0'din& ('t not 0imited to5 acts of God5 $ar5 ci%i0 'nrest or
ind'stria0 action3 If s'ch de0a4 or fai0're contin'es for a 2eriod of at 0east 9 months
then the 2art4 not s'(Bect to the force $i00 (e entit0ed to terminate the a&reement (4
$ritten notice to the other3


.ai0're or ne&0ect (4 either 2art4 to e1ercise an4 of its ri&hts or remedies 'nder this
a&reement $i00 not (e constr'ed as a $ai%er of that 2art4=s ri&hts nor in an4 $a4
affect the %a0idit4 of the $ho0e or 2art of this a&reement nor 2reB'dice that 2art4=s ri&ht
to ta*e s'(seE'ent action3


This a&reement is 2ersona0 to the 2arties and neither this a&reement nor an4 ri&hts5
0icences or o(0i&ations 'nder it ma4 (e assi&ned (4 either 2art4 $itho't the 2rior
$ritten a22ro%a0 of the other 2art43


This a&reement contains the entire a&reement (et$een the 2arties re0atin& to the
s'(Bect matter and s'2ersedes an4 2re%io's a&reements5 arran&ements5
'nderta*in&s or 2ro2osa0s5 ora0 or $ritten3 This a&reement ma4 (e %aried on04 (4 a
doc'ment si&ned (4 (oth 2arties3


If a220ica(0e5 an4 s'(seE'ent incor2oration of the .ranchise B'siness (4 the
.ranchisee as a 0imited 0ia(i0it4 com2an4 is on04 2ossi(0e $ith the 2rior 2ermission of
the .ranchisor3


The .ranchisee ac*no$0ed&es that it has (een ad%ised (4 the .ranchisor to ta*e
inde2endent 2rofessiona0 ad%ice on the terms of this a&reement and the 2'rchase of
the .ranchise 2rior to enterin& into this a&reement3

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Draft Franchise Agreement Page 9 of 12


If an4 2ro%ision of this a&reement is he0d in%a0id5 i00e&a0 or 'nenforcea(0e for an4
reason (4 an4 co'rt of com2etent B'risdiction5 s'ch 2ro%ision sha00 (e se%ered and
the remainder of the 2ro%isions hereof sha00 contin'e in f'00 force and effect as if this
a&reement had (een a&reed $ith the in%a0id i00e&a0 or 'nenforcea(0e 2ro%ision


The .ranchisee is 2rohi(ited from $ithho0din& an4 monies d'e to the .ranchisor on
the &ro'nds that the4 are d'e to recei%e monies o$ed (4 the .ranchisor3


2?31 The Sched'0es to this a&reement constit'te an inte&ra0 2art thereof3

2?32 No addition or modification of an4 c0a'se or term of this a&reement sha00 (e (indin& on
the 2arties 'n0ess made in $ritin& and si&ned (4 the si&natories to this a&reement or
their d'04 a'thorised re2resentati%es3

2?33 Reference to an4 Stat'tor4 )ro%ision in this a&reement sha00 inc0'de an4 f't're
Stat'tor4 )ro%isions $hich amend or re20ace it3


This a&reement sha00 (e &o%erned (4 and constr'ed in accordance $ith the 0a$ of
Go%ernment of )a*istan and the 2arties s'(mit to the e1c0'si%e B'risdiction of the
co'rts of Is0ama(ad Da2ita0 Territor45 Go%ernment of )a*istan 3

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Draft Franchise Agreement Page 10 of 12

IN WITNESS $hereof this a&reement is si&ned at 20ace Is0ama"ad on the date hereof as

SIGNE# H(4 R for and on (eha0f ofI the .ranchisor:


Si&nat're K Stam2:


Before this $itness:

Witness si&nat're:

Witness name:
Witness DNID L:
Witness address:

SIGNE# H(4 R for and on (eha0f ofI the .ranchisee:


Si&nat're K Stam2


Before this $itness:

Witness si&nat're:

Witness name:
Witness DNID L:

Witness address:

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 11 of 12



The &eo&ra2hica0 area $i00 (e:


)0ace of B'siness With in Dit4:

)erformance tar&ets $i00 (e enacted for each area to maintain e1c0'si%it45 these $i00 (e
decided on an area (4 area (asis and disc'ssed $ith each indi%id'a0 franchisee and added to
this a&reement3

Monthly Sales target for First Quarter

Monthly Sales target for Second Quarter

Later on quarterly sales target will be forwarded by the B.Box Trading (Priate!
Li"ited ti"e to ti"e.

S#$%&T'() * Sta"+ S#$%&T'() * Sta"+
F(&%,-#S)) F(&%,-#S.(

B.Box Trading (Pvt) Ltd
Draft Franchise Agreement Page 12 of 12



Inte00ect'a0 )ro2ert4 0icensed to the .ranchisee (4 the .ranchisor:

.ranchisor=s trade mar*s5 2atents5 co24ri&hts5 0o&os and a00 other inte00ect'a0 2ro2ert4

The &eo&ra2hica0 area $i00 (e:


)0ace of B'siness With in Dit4:

S#$%&T'() * Sta"+ S#$%&T'() * Sta"+
F(&%,-#S)) F(&%,-#S.(