Exhibit 10.1
CONTRACTFORRENTALOFDCAKIOSKSWITHOPTIONTOPURCHASE
| Lessor: | TheConsortiumbetweenIDGlobal SolutionsCorp.andHancoTechnologies,S.A.S. |
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| | Tax ID Numbers: | ID Global Solutions Corp.: 4-2069547 |
| | | Hanco Technologies, S.A.S.: 900.326.893-5 |
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| | Legal Representative: | Douglas Solomon |
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| | Lessor’s Colombian Address: | Calle 109 #19-48, Oficina #302 |
| | | Bogotá, Colombia |
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| | Subject of the Contract: | Provision of 80 DCA units with the technical specifications listed in Annex #2, pursuant to a rental with option to purchase; which units will be installed at the transportation stations managed by Recaudo Bogotá, S.A.S. |
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| | Value of the Services/Form of Payment: | The price of each DCA unit is COP $45.600.000 plus VAT, which shall be paid in equal monthly installments of COP $380.000, pre-VAT, for each DCA unit. This price includes maintenance of the DCA units throughout the term of the Contract. |
ThiscontractisaRentalContractwithPurchaseOptionforthe80DCAunits (hereinafterthe"Contract"),andincludesfullmaintenanceof the units.The Contract is between:
(i) BASETEKSAS(hereinafter"BASETEK"),acompanywithitsheadquartersin Bogotá,Colombia,incorporatedunderShareholders'RecordofMarch26,2014,registeredundernumber01823011ofBookIXoftheBogotáChamber of Commerce, existingandlegally constitutedunderthelawsoftheRepublicof Colombia, identified withNIT 900.739.824-1.
(ii) THECONSORTIUMidentifiedabove(hereinafter"THECONSORTIUM"),constitutedviaaprivateconsortiumagreementbetweenIDGlobalSolutionsCorporation,identifiedwithEIN4-2069547,andHancoTechnologies,S.A.S.,identifiedwithNIT900.326.893-5.
BASETEKandTHECONSORTIUM(individuallya"Party"andcollectivelythe "Parties") haveagreedtoenterintothisContract,whichshallbegovernedbytheprovisionsof thecivilandcommerciallawsofColombiaandtheterms andconditionsthisContract,subjectto thefollowing:
CONSIDERATIONS:
1. -.ThatonAugust11,2011,acontractwassignedbetweenTRANSMILENIO S.A. and RECAUDO BOGOTÁ, S.A.S.("RBSAS"), the object of which is"theconcessionofthedesign, supply,implementation,operation,maintenanceandintegrationofthesystemoffarecollection for the TransMilenio Integrated Public Transportation System in Bogotá, Colombia.
2. That theobjectives oftheIntegratedPublic Transportation Systemestablished in Decree District 3092009,among others,aretoimproveservicecoveragetodifferentpartsofthecity, provideimprovedaccessandconnectivity, andperformtheoperationalintegrationandfarecollectionassociatedtherewith,establishingtheprinciplesofprogressivity,timeliness, accessibility,efficiency,financialandenvironmentalsustainability,safety,qualityand coordination.
3. ThatupontheissuanceofConcessionContract0012011,RBSAStookoverthe collectionfunctionfortheIntegratedPublicTransportSystem,therebyextendingthecharging networkthroughoutthecity.
4. BASETEKhastheorganization,infrastructure,personnel,tradeagreementsand appropriatefinancialresourcestofacilitatetheimplementationofcollection services in Bogotá.
5. BASETEKandRBSASexecutedaframeworkagreement,aimedat"Unitingtheirefforts toensuretheexpansionofthechargingnetwork."
6. Consistent withtheaforementioned Contract,BASETEKconductedaselectionprocessfor the rental-with-option-to-purchaseof 80 DCA units.
7. The selection process was awarded to THE CONSORTIUM.
8. THECONSORTIUMhasbeenconstitutedviaaprivateconsortiumagreementdated August21,2015,acopyofwhichwasprovidedtoRBSASandunderwhichanofficerofID GlobalSolutionsCorp.hasbeendesignatedastheLegalRepresentativeofTHECONSORTIUM.
9. Therefore, the Parties agree as follows:
CLAUSES
FIRST.OBJECT.ThepurposeofthisContractisforTHECONSORTIUMtosupply80DCA unitswiththetechnicalspecificationslistedinAnnex#2hereto,bywayofarental-with-option-to-purchase,andwhichwillbeinstalledonthepremisesofthetransportationstationsmanaged byRBSAS,whichforthepurposesofthisAgreementshallbecalledthe“End User”.RBSAS willprovideTHECONSORTIUMwiththespecificinstallationlocationsinadvance.
SECOND.OBLIGATIONSOF THE CONSORTIUM.
a) Provide the added-value propositions listed in Annex #1 at the request of BaseTek.
b) Provision of 80 DCA units with the features listed in Annex #2.
c) Provide data on a real-time reporting basis, including information for previous days, detailing recharge transactions, card sales, a log of unit events, cash flow reporting, amount of cash entered into the unit, amounts of recharges and payment rejections.
d) Provide maintenance for the DCA units throughout the ten-year Contract term, pursuant to the terms and provisions of Clause #8 of the present Contract, without additional cost to BaseTek.
e) Guarantee and maintain the service levels delineated in Clause #7 of the present Contract.
f) The DCA units must be installed and properly functioning in the places to be designated by BaseTek and/or the End User.
g) Assume the cost of all import taxes, as well as transportation costs to the installations sites.
h) Ensure the integration of the DCA units with the End User’s collection platform via the available associated systems and mechanisms.
i) Technical personnel must provide reports in relation to technical services provided.
j) Develop the units according to the features that are stated in the API (Application Programming Interface).
k) Employ an LSAM and an OLSAM provided by BaseTek to perform laboratory testing in the event that validation uses are presented in the zonal system with charges generated from the units, which must be paid by THE CONSORTIUM.
l) Guarantee the transmission of payment transactions to the central collection system. In the event that transactions become lost and therefore not transmitted to the central collection system, THE CONSORTIUM shall assume the financial responsibility for such transactions, and such amounts will be deducted from the amounts otherwise invoiced, subject to the correct functioning and performance of the communications platform provided by BASETEK and/or End User.
m) In the event of unit failures that cannot be resolved via the procedures established in Clause Seven, THE CONSORTIUM must replace the respective unit within 24 hours of the failure.
n) Provide semester-basedtraining sessions for BASETEK and/or End User personnel related to operation of the DCA units.
o) Provide technical and operating manuals for the DCA units, and update them as necessary.
p) Deliver detailed operating information from an internal Help Desk and update such information as necessary.
q) Constitute the policies listed in Clause #9 of the present Contract.
r) THE CONSORTIUM warrants that it is the owner of the DCA units, title to which it will transfer to BaseTek upon termination of the term of the Contract or upon exercise of the option to purchase.
s) At the time of transfer of title to the DCA units, THE CONSORTIUM will provide BaseTek with all related documentation, including importation, license and all other related documentation.
t) THE CONSORTIUM warrants that its property rights in and to the DCA units do not infringe any third-party intellectual property rights.
u) Obtain any licenses necessary to provide the DCA units.
v) Comply with all legal requirements applicable to this type of contract, which requirements are incorporated herein.
w) Provide replacement parts for the DCA units, which such parts shall be guaranteed by THE CONSORTIUM.
x) Generate a daily income report for each unit.
y) Comply with the delivery schedule set forth in Annex #3.
z) Guarantee the availability of the purchase option in favor of BaseTek, pursuant to the terms and condition set forth in the present Contract.
aa) Permit BaseTek to sublease the DCA units to RBSAS or other End User that shall use them for the collection of transit fares.
bb) Provide BaseTek with the software source code in the event of the dissolution of THE CONSORTIUM.
cc) Perform the necessary steps to procure a Colombian Tax ID Number for THE CONSORTIUM.
THIRD. OBLIGATIONS OF BASETEK.
a) Ensure that the equipment is permitted to be installed in the designated transportation stations.
b) Ensure payment of the monthly rental invoices.
c) Report directly or through the End User any developments or changes relating to the functioning or operation of the equipment.
d) Ensure directly or through the End User the power supply and communications solution for the DCA units. Nevertheless, BaseTek is not responsible for non-compliance of third parties in conjunction with the provision of such services, and therefore THE CONSORTIUM cannot hold BaseTek responsible for such non-compliance and cannot invoice for units not in service as result of such power/communications failures.
e) Provide civil works, directly or through the End User, if necessary, to adapt the facilities for installation of the DCAs, always and as long as the associated costs are reasonable. THE CONSORTIUM shall inform BASETEK of the availability of the DCA units for installation, and if after 15 working days the sites are not available for installation, THE CONSORTIUM may invoice the monthly fee for such DCA units.
f) Procure all necessary permits for installation of the DCAs. Nevertheless, if the relevant third-party authority will not issue a permit, BaseTek shall not be responsible therefore, and THE CONSORTIUM cannot invoice for the associated unit.
g) Provide and manage the transport debit cards.
h) Collect and manage the cash received into the DCA system.
i) Ensure the procurement of risk policies for vandalism and damage caused by natural disasters.
j) Procure and maintain in effect a compliance policy, guaranteeing payment on a six-month rolling basis.
FOURTH.VALUEOFRENTALPAYMENTS.BASETEKshallremittoTHECONSORTIUMthesumofthree hundredandeightythousandColombian PesosplusVAT (COP$380.000plusVAT)monthlyperdevicethroughouttheterm oftheContract.Suchsumis subject to applicable tax retentionsunder Colombian law.
Suchamountwillbeupdated annuallybyapplying theCPIindexfromthepreviousyear,asof themonthofJanuaryforeachyear of the termofthe Contract.
Therentalpaymentamountincludes allmaintenance, includingsparepartsforthedevicesandthe software and licenses required for operation.
ThefailurebyBaseTektomakethemonthlyrentalpaymentsforfivestraightmonthsshallallowTHECONSORTIUM toremove anyDCA unit to which such failure of payment is applicable, as wellasinvokethepenalty provisions in Clause #12 of the present Contract.
FIFTH.PAYMENTMETHOD.THECONSORTIUMshallsubmitaninvoiceattheendof eachmonthincludingallDCAunitsthathavebeeninstalledandacceptedduringthatmonth,as wellastheproratedworkingdaysinthemonthonthebasisof$380,000pesospermonth,whichtotals$12,667pesosperday.Therewillbeaformalactofacceptancefor eachDCA,whichact willenabletheinitiationofinvoicingforeachrespectiveunit.
Invoicesshallbepaidwithinthirty(30)daysfollowingpresentation,subjecttosatisfactory delivery and functioning of the DCA units.
SIXTH.TERMANDPURCHASEOPTION.ThetermofthisContractisten(10)years.In caseofterminationforbreach,theprovisions of Clause 16 shall be exhausted.
Inanycase,BASETEKreservestherighttoexercisetheoptiontopurchasetheDCAsunderthe following conditions:
-.Attheendofthetermof10years,BaseTekshallbepermittedtoexercisethepurchaseoption bymakingapaymentofCOP$10.000toTHECONSORTIUMforeachDCAunit,foratotalof COP $800.000.
-.Intheeventthat,uponterminationoftheContract,rentalpaymentsremaindueandpayableto THECONSORTIUMunderthetermoftheContract,BASETEKwillsatisfysuchpayments viaasinglepayment,basedonpresentvalueand then discounted ata rate of 10%.
-.ThesameformulaaboveshallapplyintheeventofearlyterminationoftheContractasthe result of any cause, in order for BASTEK tobe able to exercise the purchase option.
FirstParagraph:IntheeventthatBaseTekmustexercise the purchase option as a result of a breach of contract by THE CONSORTIUM, and aresultingcancelationoftheContract,the purchaseoptionshallbeexercised without prejudice to BaseTek’srighttoinvokethetermsand provisions of the penalty clause setforth in Clause #12.
SecondParagraph:ThepurchaseoptionisalsoavailabletotheEndUserintheeventthat BaseTek electsnotoexercisetheoption.
SEVENTH.SERVICELEVELS.THECONSORTIUMwillensureamonthly“uptime”of 99.5%system-wide.Ifthepercentageof“uptime”inagivencalendarmonthfallsbelowthis guaranteed amount, the following penalty shallapplytothatmonth’s invoice.
Thepenalty iscalculated as follows:
A=%guaranteed minimum “uptime” (99.5%)
B=% ofcomputed“uptime”forinvoicedcalendarmonth
C =(% penalty) = A-B
Thepenalty shallapplytothe currentmonth’s invoice.
Themonthly “uptime”of99.5%ismeasured fromthearrivalofatechnicianatthephysicallocationof the DCA.
Paragraph: Thedealershallguaranteethedelivery datessetforthinAnnex#3,andforeachday ofdelaythatisattributable totheact oromissionofTHECONSORTIUM,anamountof.5%of themonthly value of each delivery shall apply.
EIGHTH.MAINTENANCE. THECONSORTIUMshallprovideongoingmaintenance and supportfortheDCAunitsthroughoutthetermofthecontract based on the "Terms ofService"as defined below:
1) TheresponsetimeforamaintenanceproblemismeasuredfromthetimeBASETEKformallynotifiesTHECONSORTIUMofthefailure.Thenotificationofthefailureshallbe receivedbyaservicecentermaintainedbyTHECONSORTIUM,wherearecordofthereportedproblemshallbemade.TheoperatorwillprovidetheCustomerwithatickernumberwithan associatedtimestamp.THECONSORTIUMshall committ to have a technicianarrive at the DCA site within 45minutes undernormal conditions, and within 90minutes during peak traffic orunderunusualcircumstancesrelated to traffic flow in the City.
2) Therestorationtimeismeasuredfromthetimethetechnicianarriveson-siteuntilthe timeofthecompletionofthenecessaryrepairs.Themonthly“uptime”of99.5%ismeasured fromthe arrival of a technician at the DCA site.
3) The critical spots are the sites where one (1) DCA is installed.
4) The non-critical sites are locations where more than one (1) DCA is installed.
5) Therestorationtimesrelateonlytorepairsmadetoaddressnormalwearandtearnot associatedwithorresultingfromvandalismor natural disasters.
6) Necessaryrepairsorreplacementsrequiredasaresultofvandalismornaturaldisastersmaybeprovidedbutisnotincluded within the monthly rental payment.
7) “Downtime” iscalculatedfromthetimeanissueisregistered intheTHE CONSORTIUMsystemuntilthetime itisresolved andtheunitisrunning. “Downtime”doesnotincludeoperationalfailuresduetopowerandenergynetworkoutagesorotherservice interruptionsduetostrikesorcivilunrest.“Downtime”doesnotincludeblockagesinthebill andcoinacceptors,giventhatthisiscontemplatedintheFirstLevelofservice thatBaseTekor the Final User provides.
8) TheuptimepercentageisbasedontotalnumberofDCAunitsinstalledandis calculated as follows:
X = Total Number of DCAs Installed
Y = Total number of hours in a calendarmonth
Z = X * Y, or total “uptime” available in a calendarmonth.
T = Total number of hours of“downtime” in a calendarmonth
Uptime% = [(Z - T) / Z] x 100
9) Maintenance levels are defined as follows:
Level1:BASETEKorEndUserpersonnel,coordinatedviaBASETEK,removebillsandcoins thathavebecomestuckorotherwiselodged,andmanageallissuesrelatedtocurrencyand shuttingdown/restartingoftheunitsonadailybasis.Noserviceticketisassociatedwiththis process.
Level2:Calibrationandupdatesofbillandcoinacceptors,hoppers,andotherperipherals. Regularcleaningofthemachines,replacementofpartsthatmaybefailingandmanagementof alloperationalmatters.Ingeneral,theseareallitemsthatnotcoveredbyLevel1,andshall includecalibrationandpreventativemaintenance,recommendedbythemanufacturersofthe componentparts,includingthebillacceptors andcyclers,typicallyoccurringbetween20,000 and25,000transactions.Theseitems willgenerateaserviceticket.
Level3.Correctiveandpreventivemaintenanceofthehardwareandsoftwareresolvedatthe Second Level of service. These interventions will generatea service ticket.
Aftercompletionofthe10-yeartermoftheContract,theConsortiumwillbeabletocontinueto providethemaintenanceservicesintheeventthatthePartiescanagreeonthemarketpriceat thattime.
NINTH.GUARANTEES.BASETEKshallprocureacompliancepolicyonbehalfofTHE CONSORTIUMtoguaranteepayment,andsuchpolicyshalloperateonaminimum-6-months rolling basis, specifically in the amount of COP $211.584.000.
TheConsortiummustprocureacompliancepolicyintheamountofCOP$126.950.400,which amount shall increase on an annual basis inconformitywiththenationalCPIindex.
TheConsortiummustprocurea“civilresponsibility”and“third-partyliability”policyintheamount of COP $423.168.000.
TENTH.EXCLUSIONOFEMPLOYMENT.THECONSORTIUMisanindependent contractor.BASETEKis notresponsibleforCONSORTIUMpersonnelunderColombianlaborlaw.THECONSORTIUMisresponsibleforallcosts,includinggovernment-mandated costs andcontributions,foritspersonnel.
ELEVENTH.INDEMNITY.THECONSORTIUMagreestoindemnifyBASETEKandtheEndUserinconnectionwithanyaction,claim,demand,judgment,order,sanction,fine,orcivil orcriminalproceeding,arisingoutof anyactattributable to THECONSORTIUMinconjunction withthedeliberatefailuretocomplywiththetermsofthisContract.THECONSORTIUMshall beresponsiblefortheexpensesandcostsincurredbyBASETEKortheEndUserinrelationto any oftheevents specified in this clause, including court costs and attorneys’ fees.
Also,BASETEKagreestoindemnifyTHECONSORTIUMinconnectionwithanyaction,claim,demand,judgment,order,sanction,fine,orcivilorcriminalproceeding,arisingoutofanyactattributabletoBASETEKortheEndUserinconjunctionwiththeperformanceofthis Contract.BASETEKshallberesponsiblefortheexpensesandcostsincurredbyTHE CONSORTIUMinrelation toanyoftheeventsspecifiedinthisclause, includingcourtcostsandattorneys’ fees.
TWELFTH.PENALYCLAUSE.IntheeventofabreachofthisContractbyeitherofthe Parties,itisagreedthatapenaltyequivalentto10%ofthetotalvalueofthisContractshallapply.MaterialdefaultbyTHECONSORTIUMshallbeunderstoodasfollows:Sixconsecutivemonthsofmonthly“uptime”oflessthan99.5%system-wide(whichwilllead tothepenalty provisionintheClause12ofthisAgreement),plusthree(3)months(aftertheaforementioned six(6)months)tocureproblem.Iftheproblempersists,resultinginan“uptime”oflessthan 99.5% in the system for nine consecutivemonths, such will be a failure by THECONSORTIUM, which shall allow BASETEKto terminate the Contract.
MaterialdefaultbyBaseTekand/ortheEndUsershallbeconstitutedbyfive(5)consecutive monthsoffailuretomakepaymentoftheinvoicesissuedbyTHECONSORTIUM,whichshall permitTHECONSORTIUMtocanceltheContractandinvoketheaforementioned10%penalty, withoutprejudicetoitsotheravailableremediesunderthisContractoravailableatlaw.
ThecomplyingPartymaydirectlydiscountanysumsdueunderthispenaltyclauseandnopre- requirement or notification ofdoing so shall be necessary.
THIRTEENTH.ENFORCEABILITY.TheobligationsdescribedinthisContractshallbe fully enforceable.
FOURTEENTH.APPLICABLELEGISLATION.ThisContractshallbegovernedbythelaws of the Republic of Colombia.
FIFTEENTH.CONFIDENTIALITY.AllinformationexchangedbetweentheParties,which isisconfidentialortheintellectualpropertyofaParty,maynotbeusedforpurposesotherthan thosespecifiedinthecontractandnecessarytofulfilltheContract,andfurthermoremaynotbe usedfortheindividualinterestsofaPartyoutsideoftheexecutionoftheContract.
ForpurposesoftheContract,“ConfidentialInformation”isanyinformationdisclosedin written,graphic,verbal,ormachine-recognizableform,unlessitismarked,designated,labelledoridentifiedatthetimeofdisclosureasbeingnon-confidential.Notwithstandinganyother provisionsofthisContract,ConfidentialInformationshallnotincludeanyinformationthat:(i)is orbecomespubliclyknownthroughnowrongfulactofthereceivingParty;(ii)isalreadyknown tothereceivingPartywithoutrestrictionwhenitisdisclosed;(iii)is,orsubsequentlybecomes, rightfully and withoutbreach of this Contract, in the receiving Party’s possession without any obligationrestrictingdisclosure;(iv)isindependentlydevelopedbythereceivingPartywithoutbreach of this Contract; or (v) is explicitly approved for release by written authorization of the disclosingParty.
EachPartywill:(i)maintaintheconfidentialityoftheotherParty’sConfidential Informationandnotdiscloseittoanythirdparty,exceptasauthorizedbythedisclosingPartyin writingorasrequiredbyacourtofcompetentjurisdiction;(ii)restrictdisclosureofConfidential Informationtoitssubcontractors,representatives,consultants,legaladvisorsandemployeeswhohavea“needtoknow”andnotcopyorreproducesuchConfidentialInformation;(iii)take necessaryandappropriateprecautionstoguardtheconfidentialityofConfidentialInformation, including informing its employees who handle such Confidential Information that it is confidential and not to be disclosedtoothers,butsuchprecautions shall rise at least to the same degree of care that the receiving Party applies to its own Confidential Information and shall not belessthan reasonablecare;and(iv)usesuch ConfidentialInformationonlyinfurtheranceof the performance of this Contract. Confidential Information is and shall at all times remain the propertyofthedisclosing Party,andnograntofanyproprietaryrightsinConfidentialInformationisherebygivenorintended,includinganyexpressorimpliedlicense,otherthanthe limited right of the recipient to use Confidential Information in the manner and to the extent permitted bythis Contract.
UponcompletionoftheContract,thePartieswillberequiredtoreturntotheotherParty alldocumentationthathasbeenprovided.Theseprovisionshallremainineffectforanadditional five years followingcompletionoftheContract.
SIXTEENTH.ALTERNATIVEDISPUTERESOLUTION. ThePartiesagree thatinthe eventthatdisputesarisebetween themconcerningtheperformanceandexecutionofthis Contract,thefollowing proceduresshallapply: (i)ThePartiesshallattempt toamicablyand directlyresolve thedispute,forwhichtheywillhaveamaximum periodoffifteen (15)calendar days,countedfromthedateonwhichaPartysubmitsawrittencomplaint totheotherParty.(ii)the Parties shall submit to amutually-selectedmediator.IfthePartiescannotagreeontheselectionofamediator,onewillbeappointedpursuanttotherules andproceduresoftheCamara deComercioofBogotá. ThePartiesshallhave fifteen (15) days following selection or appointment of themediatior to attempt to resolve the dispute. If the dispute is not resolved via the abovemechanism, the dispute shallbe submitted to the arbitral tribunal, which will be responsible for resolvingthedispute.TheTribunalofArbitrationshallbegovernedbythe following rules and conditions: (a) The Arbitration and Conciliation Division of the Camara de Comercio of Bogotá; (b) one (1) arbitrator shall be appointed by the Parties. If the Parties cannot reachanagreement attheendoffifteendaysfromthewrittenrequest forarbitration, one shall be appointedby the Camara de Comercio of Bogotá from lists submitted by each of the Parties, which shall designate atmost 5 arbitrators from said chamber. (c) The Tribunal will operate according to the rules established by the DivisionofArbitrationandConciliationoftheCamarade Comercio of Bogotá; (d) The award shall be in law; (e) The Tribunal shall sit in the city of Bogotá. The rules applicable to the arbitration shall be those in force on the subject under the laws of the Republic of Colombia; (iii) Fees incurred by the Tribunal will be shared equally betweentheParties.
SEVENTEENTH.ASSIGNMENT.NeitherPartymayassigntheContractwithouttheprior written consent of the other Party.
EIGHTEENTH.TERMINATION.ThisContractshallbeterminatedbytheoccurrenceof any of the following events:
1. Bymutual agreement of the Parties.
2. ByearlyterminationoftheContractinthecaseofamaterialbreachbyeitherPartyofanyof the obligations stated herein,subject to the provisions of theTwelfth and Sixteenth Clauses.
NINETEENTH.PLACEOFPERFORMANCEOFTHECONTRACT.Theplaceof performance of the Contract will be inthe city of Bogotá, D.C, Colombia.
TWENTIETH.ADDRESSANDNOTIFICATION.Forlegalandtaxpurposes,BASETEK shallreceivenotificationsatCalle73No.6-30,Bogotá,D.C.,andTHECONSORTIUMshallreceive notifications at Calle 109 No. 19-48 Oficina 302, Bogotá, D.C.
TWENTY-FIRST.CONTRACTEXPENSES.Allexpensesincurredinthedevelopmentand execution of the Contract shall be borne bythePartiesseparatelyandindividually.
TWENTY-SECOND.DOCUMENTS.Thefollowingdocuments,attachedasexhibits,aredeemedapartofthisContract:a)theConsortiumAgreement;b)CertificatesofGoodStandingforIDGlobalSolutionsCorp.andHancoTechnologies,S.A.S.;c)theawardletteraccepting THECONSORTIUM’sproposalthatgivesrisetothisContract,andwhichitisincorporated herein; d) any other documentedpre-contractualconditions.
TWENTY-THIRD.ENTIRECONTRACT.ThisContract,includinganyexhibitsorannexes hereto,representtheentireunderstandingofthePartieswithrespecttothesubjectmatterhereofandsupersedesallotherContractsandunderstandings,bothwrittenandoral,withrespecttothe subjectmatter hereof.
TWENTY-FOURTH.INTELLECTUALPROPERTY.THECONSORTIUMgrantsnon-exclusive,transferableauthorizationtousethe intellectual propertyright associated withthe unitsandincorporatedsoftware, forthemaximum timepermitted bytherespective countries underwhoselawssuchrightsarise,andwithaterritorialscopeencompassing theentireworld. THECONSORTIUMrepresentsthatithasproperly acquiredallright andtitletotheDCAunits andtheirrespectivecomponents,andguaranteesthatneithertheunits,northesoftware,violateany third-party intellectual property rights. Inthe event of a termination of the consortiumrelationshipbetweenIDGSandHanco,THECONSORTIUMpromises todeliverthesource code to BaseTek.
Paragraph:THECONSORTIUMshallindemnifyBaseTekforanythird-partyclaims,demands or lawsuits against BaseTek resulting fromthe breach of thisClause.
TWENTY-FIFTH.GUARANTEEOFTHEUNITS.THE CONSORTIUMguaranteesthe unitsforaminimum ofsevenyearsfromthedate ofexerciseofthepurchaseoption,without limiting in any way the other obligations contained herein.
TWENTY-SIXTH.JOINTANDSEVERALRESPONSIBILITY.Themembers ofTHE CONSORTIUMarejointlyandseverallyresponsibletoBaseTekfortheexecutionanddeliveryof the present Contract.
TWENTY-SEVENTH.TAXES.EachPartyisresponsibleforitsowntaxesasapplicabletoitunder Colombian law.
ExecutedinBogotáD.C.this15thday ofSeptember 2015.
FOR BASETEK S.A.S.
/s/ PEDRO LUIS CASTRO RUANO
PEDROLUIS CASTRO RUANO.
Legal Representative
FORTHECONSORTIUM
/s/DOUGLAS SOLOMON
DOUGLASSOLOMON
Legal Representative
ANNEX #1
ADDED-VALUESERVICES
THE CONSORTIUMiscommitted todelivering added-valueservicesforadditional compensation,pursuantto independentcontractsapartfromthepresentContract,suchas:
| - | Creating neworalternativepayment servicesandmethods,includingCorrespondentBanking,WireTransfersandCollection.THECONSORTIUMrepresentsthatit possessesitsowntransactional platformswitchviaitssubsidiary, MultiPay,S.A.S., whichcurrentlyoperatestheplatformofRed4-72andcorrespondentbankingforColpatria Bank. |
| - | Outreach tootherrechargingnetworksthroughavendingmodelassociatedwithTHE CONSORTIUMaccount,whichincludechargingpointswithvendingmachinethatcanperformtherecharging oftheTuLlavecard(subject topilottestapproval withthe vendingoperator),thescopeofwhichwillbe relatedtotheawardofadditional devicesapartfromthe80DCAunitsthatarethe subjectofthepresent Contract. |
| - | Support BASETEK in API development on the Android platform. |
Ensure thattheDCAunitshavetheabilitytoaccommodatethecurrentonlinepayment modeloperatedbyRecaudoBogotáS.A.S.,viaanalliancethatBaseTekwillcreatewiththe monetarytransportationsecuritycompany withwhichitpresentlycontracts.
ANNEX #2
FUNCTIONALREQUIREMENTS
The Means of Payment
| - | Saleanddispensingofthephysicalmethodofpayment(DebitCards).Thedebitcard dispensationmodulemustdeliverthecardthatthecustomerisactivatingatthetime of purchase.Cards available for sale within thedevice are inactive. |
| - | Therechargemodulemustpermitrechargingofallcardtypescurrentlyoperating withtheSITPsystem. BASETEKmustensurethecorrectchargingmodule functionalitywiththeapplicationinterface(API)andcomplywithallcurrentand futuremodifications oftheinterfaceapplication. |
| - | Mustallow virtualrechargesforcardactivationforuserswhoutilizesubsidies,balancetransfersorreloadsexecutedviatheInternet. |
Collection
| - | ReceptionofCurrencyBills:ReceiveColombiancurrencybillsofalldenominationswithaninitialconfigurationrangingfromthe$1.000pesosdenominationtothe $20.000 pesos denomination. The units must be configurable for receiving new bill denominations that may be introduced in the Colombian currency system. THE CONSORTIUM shall undertake the necessary developments to ensure that the units can accept denominations above $20.000 pesos. |
| - | ReceptionofCoinswithEscrowSystem:ReceiveallColombiancoindenominations withaninitialconfigurationrangingfrom$50pesosto$1.000Pesos.Theoptionof whichcoinstheunitswillreceiveshallbeparameterizedonamachine-by-machine basisandupdatabletoreceivenewcoindenominationsthatmaybeintroducedintothenationalcurrencysystem. |
| - | Bills must be entered into the units one-at-a-time. |
| - | The minimum storage capacity for each DCA is 1,000 bills. |
| - | Each unit must come with three bill acceptors, each with a 1,000-bill capacity. |
| - | Ifcounterfeitbillsareintroduced,theunitsshallreturnthebillsbacktotheuser, informingtheuserastothereasonforthereturn,andthenresolicitthesubmissionof thebillsintothesystem. |
| - | Ifcounterfeitbillsareintroduced,theunitsshallreturnthebillsbacktotheuser, informingtheuserastothereasonforthereturn,andthenresolicitthesubmissionof thebillsintothesystem. |
| - | CalibrationoftheBillAcceptors.Theriskofacceptanceofcounterfeitmoneybytheunits lies with THE CONSORTIUM. |
| - | Ifacard-chargingtransactioncannotbecompletedasaresultofasystemfailure,the unitshallreturnthemoneytothecustomerandinformthecustomerthatthe transactionwasnotfeasible.Thefailedtransactionshallremainregisteredinthe systembutnotaffectthefunctionality of the unit going forward. |
| - | Cross-referencethepaymentmethodagainstthecurrent“blacklist”anddenythe processingoftransactionsifthecardisblocked.Theunitmustupdatetheblacklistat leastonceadaybefore4:00a.m.BASETEKshallmakeavailabletoTHE CONSORTIUM the API and the updated blacklist. |
| - | Allowthecustomertoconsulthis/herbalanceonthecard,andintheeventthatthe balanceisnegative,informtheclientoftheamountoftherechargethatisnecessary toeliminatethenegativebalance. |
| - | Ifacard-chargingtransactioncannotbecompletedasaresultofasystemfailure,the unitshallreturnthemoneytothecustomerandinformthecustomerthatthe transactionwasnotfeasible.Thefailedtransactionshallremainregisteredinthe system. |
Other Features
| - | Inventory Management: Card control and virtual control of cash/currency. |
| - | Generationofalertsiftherearebilljams,unitfailureorunavailability,hardwarefailures, softwarefailures and/or connectivityproblems. |
| - | Compatibleforusebydisabledpersons,perthespecificationslistedinthetechnical annex attached hereto. |
| - | TheDCAmusthavetheabilitytoprovidetheuserwithinformationonhowtouse theunit,viaanimation,visualmessagesandaudio. |
| - | Anintegratedmonitoringandsecuritycamera,whichwillbelocatedonthefrontoftheunitandcantakeaphotooftheuserandthebillacceptor.Videoaccessshallremainavailableforeightdays.Videosshallbereviewableon-siteandwhichshall includedateandhouroftransaction as well as card number. |
| - | TheDCAmusthaveamenuofferingotherlanguagesforoperationoftheunit,withaminimum offering of English. |
| - | Provideinformationonthedisplayscreen,suchastransportationroutefinding, changesorupdatesinthesystem,whichmustbeconfiguredaccordingtotheneedsof theoperation,aswellasanyothercontingenciesinthesystemthatcanprovide additionalinformationtoimprove the service experience. |
| - | Providedataonareal-timereportingbasis,includinginformationforpreviousdays, detailingrechargetransactions,cardsales,alogofunitevents,cashflowreporting,amountofcashenteredintotheunit,amounts ofrecharges and payment rejections. |
Technicality and Structure
| - | A requirement of 5% in spare parts in stock. |
| - | TheDCAsmustbedesignedtooperateforthedurationContractunderthe environmentalconditionstypicalinthecityofBogota.Theunitsmustbeableto workoutdoorswiththerespectivedustyandhumidity/moistureconditionsinherentin theCity.ThedevicesarecertifiedwithInternationalProtection54(IP54),andmust be waterproof. |
| - | Beequippedwithaninternalbatterywithaminimumcapacityof15minutestomeet contingenciesincaseofpowerfailure. |
| - | Functional software and licenses meeting all legal requirements. |
| - | Thedevelopmentofanintuitive,user-friendlyinterface,socustomerscanexecute purchasesandrechargesquickly,thusexpeditingthetimeofthe transactions. |
| - | TheinterfacedesignmustbeapprovedbyRBSAS,andifrequiredTHE CONSORTIUMshallmakerequestedadjustments.Furthermore,ifnewunit functionsareincorporatedafterreceiptandacceptanceoftheDCAs,THECONSORTIUMmustexecutethem. |
| - | Theunitsmustcomewithanonline,centralmonitoringsolution,whichallowsfor prompt attention related tomaintenance and operational issues. |
| - | THECONSORTIUMmustprovideatechnicalmanualwiththedetailsofthe component parts, including respective life cycles. |
| - | Theunitsshallcomeequippedwithametalliccabinet,withafrontalopeningand equippedaccordingtotheoperationalneeds.Thecabinetstructureshallensure sturdinessforplacementandlocationofthecomputer,utilizingamainmetal structure,whichmustbefixedtothefloorbyatleastfour(4)screwsorbolts,witha properrusttreatment. TheDCAmusthavea suitablefasteningsystem sothatits heightdoesnotallowforvibrationormisalignment when force is exertedvia use. |
| - | Thedeviceshouldbevandalism-proof,abuse-resistant,andbeformattedtoabsorb shock, scratches, liquids and easy-cleaning following attempts at vandalism. |
| - | Regardingtheinternalstructureoftheunit,accesstomoneyshouldbelocatedina compartmentindependentoftheelectronicsormaintenancecomponents,and ensuringmechanisms for secure access. |
| - | The locks must be “security” grade. |
| - | Thedeviceshallcontinuetooperatein“offline”modeintheeventofa telecommunicationsfailure. |
| - | Intheeventoffailure,theunitsmustbeabletoaccountlocallyforthepossibilityofrecuperation of information of sales and recharge transactions. |
| - | THECONSORTIUMshallincorporateatoolformonitoringandmanagingtheunits on a 24/7 basis, which includes: |
| - | A messaging package that allows for the sending of alert messages and cost communication. |
| - | Online ability to check the operationof all equipment. |
| - | Remote management should allow for the validation of active configurations in the units. |
| - | Display devices shall be grouped according to a defined classification (e.g., by portals and station types). |
| - | Must have storage functionality withan event log of at least 30 days. |
| - | Capacity to inform the central control station of intervention events at the site location of the units, via an alarm system. |
| - | Capacity to inform the central control station and/or RBSAS of any changes occurring during the execution of operations, including the capacity to inform such via an alarm system. |
| - | Systems and inventory reports proving data to management regarding the sales of cards to customers. |
| - | Be equipped with alarmsystemforcashmanagement purposes. |
| - | Alarms related to failures of the hardware, software and connectivity. |
| - | The systemshall conform to existing protocols for connection tothe central collection system. |
| - | AccessandMonitoringofUnits’Compartments:Mustensurethattheequipmenthas propercompartmentsforaccessbytechnicalpersonnel,andthatsuchcompartmentscanbesecurelylockeduponterminationofmaintenanceandinstallationwork.Inthe event of any change or update in conjunction with the aforementioned, the system shall report an immediate failure designated “high priority”. |
Other Features
| - | Provideonetrainingsessionpersemesterforgroupsofuptotwentypeoplerelatedto technical operation of theDCA units, including for updates or changes to the units. |
| - | Deliver technical and operational manuals and updates thereto when appropriate. |
| - | THECONSORTIUMtechnicalpersonnelmustprovidereportsinrelationtotechnical services provided. |
| - | The card recharge module must comply with the following minimum requirements: |
| - | CardreadermustcomplywithISO14443TypeA. |
| - | SupplyVoltage:110VAC+/-10%60HZaccordingtoColombianelectricalregulations. |
| - | Must have electrical protectionsystems for the electrical outlets. |
| - | Come equipped with a MTBF (Mean Time Between Failures)module. |
| - | OperatingTemperature:0°Cto–50°C. |
| - | Humidity:15%to90%withoutcondensation. |
| - | Possibilitytoincorporate2cxt6SAMmodules (Secure Access Module). |
| - | Maximumtimeoffull(recharge)transaction,fromwhichthecardissituated facingthereaderuntilthetransactionlog is generated in the terminal: 300 ms. |
| - | RTC(RealTimeClock),whichmustmaintainaprecisiontimeinexcessof 500msifupdatedonadailyorlessfrequentbasis.Itmustcomewithanexternal sync command that ensuresperiodicsynchronization. |
| - | ThedeployedunitsmusthaveatleastoneEthernetportandcommunications modemupgradeableandscalableaccordingtotheadvancesincellular communicationtechnology(3G,LTE,etc.),coveringthedatasubmission requirementsofthesolution,whichallowsthetransferofserverdatatoRecaudo Bogota’s central processing unit. |
| - | Thetransferofinformationmustbe programmedautomaticallyviaEthernet,GPRS,3G,4GLTE,etc. |
| - | ThedeployedunitsmusthavetheabilitytooperateundertwocontingencyIProuting servicesforhighavailability,sothatintheeventthattheprimaryconnectionfails, automaticroutingtothesecondary connection occurs. |
ANNEX #3
DELIVERYSCHEDULE
THE CONSORTIUM commits tocomply with thefollowingdelivery schedule:
First Delivery: September 23, 2015 – 20 DCA units.
SecondDelivery:October28,2015–20DCAunits.
ThirdDelivery:November4,2015–20DCAunits.
Fourth Delivery: November 11, 2015– 20 DCA units.
