MultiCourseOperatorAgreement(“Agreement”)
ByandBetween:
OBSportsLLC
AND
Digital Caddies,Inc.
THISMultiCourseOperatorAgreement(“Agreement”)isbetweenOBSportsLLC.(“OB”),andDigitalCaddiesUS,Inc. (“DCI”).WhenreferencingOBandDCIindividually,theymayhereinafterbealsoreferredtoasthe“Party.”Whenreferenced together,theymayhereinafterbereferredtoasthe“Parties.”
DCIdesigns,develops,andmarketsatabletbasedappandwebservicesforgolfcourseoperations(hereaftercollectively reveredtoas“Services”)andOBmanagesgolfcoursesthroughouttheUnitedStates.
DCI’sservicesutilizeawirelesslyconnected7”androidbasedtabletandwebbasedinformationservicestoprovidea broadrangeoffunctionalityspecificallytargetedtoimprovetheoperationefficienciesandrevenuegeneratingcapabilitiesat thegolffacility.TheServicesalsoprovidegolfersmanydesirablecapabilitiesthatimprovethegolferexperience.Somekey featuresthatbenefitthegolffacilityincludetheabilityto:
| ● | Trackwheregolfcartsarelocatedonthegolfcoursetomanagepaceofplay |
| ● | CommunicatedirectlytocartsorgroupsofcartsfromaPCorothermobiledevicethroughamessagingservice |
| ● | Creategeofencingsomanagementand/orgolferscanbeautomaticallyalertedifcartsenterarestrictedarea |
| ● | Seethehistoryofwherecartshavebeendrivenformoreefficientmaintenanceofthegolfcourse |
| ● | Alertthebeveragecartifagolferwantsserviceallowingmoreefficientdistributionoffooditemsonthecourse |
| ● | Havefooditemspreorderedbeforetheturntohelpwithpaceofplayinincreasesales |
| ● | Promoteeventsand/orsaleitems |
ThetabletsareinstalledoneachgolfcartatthefacilityandthewebservicescanbeaccessedthroughaMAC,PCorother mobiledevices.Therearemanymorefeaturesthatprovidevaluetoboththegolfcourseandgolferalike.Afulllistof featurescanbeprovidedonrequest.
DCIiscurrentlyofferingtheseservicestogolfcourseswithnofinancialobligationrequiredfromthegolfcourse.Thecostof thesystemissubsidizedthroughtheplacementofsmallweb/mobileadsonthetabletsthatarespecificallytargeted towardsthegolfer(s)usingthedevice.TheServiceispresentlybeinglaunchedandmarketedtogolfcoursesthroughout theUnitedStatesonlyandinstallationsareexpectedtobegininthe2ndquarterof2013.
OBthroughthemanagementofmanycoursesthroughouttheUnitedStateshasindicatedtheywouldliketobethelaunch clientforDCIandinstalltheServicesatthegolfcourseslistedinAppendix“A”.Itisunderstoodthatthelistdoesnotinclude allOBmanagedfacilitiesandthatadditionalcoursesmaybeaddedtothelist.
WHEREAS,thePartiesagreetoenterintoabusinessrelationshipwhichleveragesonthecombinedexpertise, capabilities,contacts,knowledgeandservicestoenableDCItoproperlyplanwiththeirpartnersforthedeliveryofDCI ServicestoOBManagedgolffacilitieslistedinAppendix“A”,and
WHEREAS,thePartiestothisAgreementagreethattheirbusinessrelationshipshalltaketheformofDCI,inconnection withitspartners,provideinstallationoftheService,support,technicalexpertise,software improvementsand enhancements,and
WHEREAS,thePartiestothisAgreementagreethattheirbusinessrelationshipwillalsotaketheformofDCIofferinga
bonuspaymenttoOB(“Bonus”)fortheprivilegeofprovidingourServicetoOBmanagedgolfcourseslistedinAppendix“A”
NOW,THEREFORE,inrecognitionoftheirmutualinterestsanddesiresandthepremisessetforthabove,thePartiesdo herebymanifestbythisAgreementaformalbindingagreementbetweentheParties.
OVERVIEWOFDEFINITIVEAGREEMENT.Subjecttotheforegoing,thetermsandconditionsforthePartiestothis Agreementare:
OBwill,onabesteffortsbasis,promoteDCIServicestobeinstalledattheirmanagedgolffacilitieslistedinAppendixA. OBhasindicatedthateachfacilityhasapproximately75golfcartsper18holesandcompletesanaverageof25,000 roundsormoreongolfcartsperyear.
TERMTheinitialtermoftheagreementwillbefor36monthswithOBLLC.Agreementswitheachgolffacilitywillbeunder thesametermsandwillbeginwhenequipmentisinstalledatthegolffacility(SeeexampleofDCIServicesAgreementin ExhibitB).
INSTALLATIONDCIortheiraffiliatesshallinstallandconfiguretheSystematOBgolffacilitiesondatesmutuallyagreed upon.
ACCEPTANCEUponinstallationoftheSystem,thegolffacilityshallexecuteanddeliveraDeliveryandAcceptance CertificateoutliningtheServicesinstalledatthegolfcourse.
FEESAllfeesfortheSystemwillbewaivedforOBmanagedgolfcourses.
| Installation Fee $50.00/per cart: | Waived | |
| Installations Reservation Cancellation Fee $2,500 Fee: | Waived | |
| Penalties and Interest. | Waived |
BONUSPAYMENT
BonusTerm.DuringtheperiodoftwelvemonthsfromthedatethisAgreement,DCIwillgrantbonuspayments listedbelowforeachOBSportsmanagedpropertyexecutingaDCIServicesAgreementandinstallingtheDCI ServiceswithintwelvemonthsfromthedateofthisAgreement.
Advertising.OBwillretaintherighttooptoutofadvertisingcategoriesand/orspecificadvertisers.AdditionallyOB willowntherightsto20%oftheimpressionscreatedonthesystemateachoneoftheirmanagedcourses.OB willhavetherighttoprovidethoseimpressionstowhateveradvertiserOBsochooses,subjecttotheapprovalof DCI.
StockOptions.DCIshallprovideOBanOptiontopurchase1,000sharesofDCICommonStockforeach eighteenholeequivalentgolfcoursesigningastandard36monthDCIServicesAgreement.TheOptionswillhave astrikepriceof$0.30/pershareandavestingscheduleof30%/30%/40%onthefirst,secondandthirdanniversary ofeachindividualgolfcourseinstallationdate.
SignUpFee.UponinstallationDCIshallyprovidetoOB$1,500foreacheighteenholeequivalentgolfcourse signingastandard36monthDCIServicesAgreement.SignUpFeeshallbepayableasfollows,$500upon systeminstallationateachgolfcourse,$500ontheoneyearanniversaryoftheinstallation,and$500inthe twoyearanniversary.ShouldagolfcourseterminatetheDCIagreementpriortotheoneyearanniversarydateof theAgreementforanyreasonwhatsoever,OBwillremitbacktoDCIsaid$500payment.
10”Tablet.ShouldDCIbegintooffer10”tabletstoit’sgolfcoursepartners,DCIwillprovidesuchtabletstoOB propertiesunderthesametermsandconditionssetforthinthisAgreement.DCIwillremove7”productandinstall 10”productatit’sownexpense.
GoverningLAWThedefinitiveagreementshallbegovernedbythelawsoftheStateofArizona.
REPRESENTATIONSANDWARRANTIES.ThePartiesrepresentandwarranttotheotherpartythat:(a)ithasthefullright
andauthoritytoenterintoandperformthisAgreement;(b)thepersonsigningthisAgreementonbehalfofthatpartyhas beendulyauthorizedtodoso;
RelationshipofPartiesNothingcontainedinthisAgreementshallbeconstruedascreatingarelationshipofemployment, agencyorpartnershipbetweentheParties.
MUTUALCOOPERATIONThePartiesintendtocooperatewitheachotherinthepursuitofbusinesstransactions.Each Partywillfurnishinformationtotheother,workonmutuallybeneficialtechnical,andmarketingefforts,andperformother suchactivitiesasmaybereasonablyrequiredtosupportthedeploymentoftheService.
CONFIDENTIALITY.AnyinformationregardingthisAgreement,oranythingrelatingtothisAgreementshallnotbereleasedto thenewsmediaorgeneralpublic,withoutthepriorapprovalofthenonreleasingParty;suchapprovalshallnotbe unreasonablywithheld.DCIasapublicentityisobligatedtocertainpublicdisclosurerulesandthereforeshallberequired
toreleaseanyandallmaterialeventsinatimelymanner.Itisunderstoodbybothpartiesthatamutualpressreleaseshall beissuedafter June1st,2013.
PUBLICITY.DCIispreparingamultiplatformPRcampaign.ItistheintentionofDCItopromoteOBasaleadpartnerin rollingoutthePlayersNetwork.DCIwillprepareanddistributepressreleasesannouncingtheOBpartnership.OBwill haveapprovalrightsoverthelanguageincludedinthereleases.
MARKETINGEXPENSES.EachPartywillbearallofitsownexpenses,costs,risks,andliabilitiesarisingoutofany marketingeffortsrelatedtothisAgreement,andneitherPartywillmakeanyclaimorchargesagainsttheotherforsuch effortsunlessmutuallyagreedtoinadvanceofanysuchoccurrencebybothparties.
EFFECTIVEDATE.TheeffectivedateofthisAgreementisthesignaturedatewrittenbelow.ToaccomplishtheParties’ objectives,thisAgreementshallbeexecutedpriortoJune1,2013..IfaDefinitiveAgreementisnotexecutedanddelivered onmutuallyacceptabletermsbythePartiesbythisdate,thentheproposedrelationshipwithDCIandOBdescribedinthis Agreementshallterminate.
INWITNESSWHEREOF,thePartiesheretohavecausedthisAgreementtobeexecutedinduplicateasofthedatebelow written.
AppendixB-DCIServicesAgreement
DIGITALCADDIES,INC. SERVICESAGREEMENT
Thisagreementismadeat(time) ___________________________________
BETWEEN(Partner):
| Golf Course Name | |
| Golf Course Address | |
| Represented By/Position |
AND:DigitalCaddiesUSInc.,corporationlegallyincorporatedunderthetermsoftheNevadalaws,havingits mainofficeat15051KierlandBlvd,Scottsdale,AZ85254,USArepresentedbyMichaelLoustalot,President,duly authorizedastheydeclare;(hereaftercalled«DCI»)
WHEREASthepurposeoftheagreementistooutlinethetermsoftheinstallationofawirelesslyconnecttablet basednetworkdevelopedbyDCIforuseonthegolfcourseoperatedbyPartner(hereinaftertobereferredtoas the“System”,theindividualcomponentsofwhichshallhereinafterbereferredtoasthe“Products”).
ANDWHEREASthePartnerandDCIdesirethatDCIinstalltheSystemforuseonthePartner’sgolfcourse underthetermsandconditionsinthisAgreement.
NOWTHEREFORETHISAGREEMENTWITNESSETHthatinconsiderationforthemutualcovenantsand agreementscontainedhereinandforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhich areherebyacknowledged,DCIandthePartnerherebyagreeasfollows:
TITLETitletotheSystemandallinformationdevelopedorcollectedinconnectionwiththeuseoftheSystemis andshallremaininDCI.DCImayremovetheSystemoranyProductatanytimeaftertheterminationofthe Term.AllProductsaremoveablepersonalpropertyandnotrealorimmovable,eventhoughaffixedtorealproperty orplacedonapermanentfoundation.ThePartnershallnotchangeorremoveanyinsignia,letteringorothermark placedontheProductsbyDCI.
TERMThisAgreementshallcontinuefor36monthsafterthesystemisinstalledatPartner’sgolfcourseandwill renewautomaticallyunlesswrittennoticeisgivenbyeitherpartyatleast60dayspriorthethenendoftheterm.
INSTALLATIONDCIortheiraffiliatesshallinstallandconfiguretheSystematthePartner’sgolfcourseatadate tobemutuallyagreedupon.
ACCEPTANCEUponinstallationoftheSystem,thePartnershallexecuteandreturnaDeliveryandAcceptance CertificateoutliningtheProductsinstalledatthegolfcourse.
ADVERTISINGIMPRESSIONSDCIagreestoprovidePartner10%oftheadimpressionsgeneratedonthe tablets.ThePartnerhastherighttousetheseimpressionsastheysochoose,includingsellingimpressionsto anadvertiseroftheirchoosing.DCImustapprovePartner’sadvertiser,suchapprovalwillnotbeunreasonably withheld.ThePartnermustprovideallcreativeneededfortheadvertisementattheirownexpense.
ADVERTISINGAPPROVALPartneracknowledgesthatDCI’ssourceofincomeisdrivenbyadvertisingrevenue collectedfromadvertiserswhodeliveradstoDCI’stabletbasednetwork.Partneragreesthatallincomederived fromthisactivityisthepropertyofDCI.WithacceptanceofthedeliveryofthenetworktoPartner’sgolfcartfleet, Partnerexpresslyapprovesalladvertisersthatadvertise onthe DCI network. Partnermayprohibit advertisementsfromanydirectcompetitororfromadvertiserthePartnerdeemsmorallyoffensive.
FEESByexecutingthisagreementpriorto _________________,allfeeswillbewaived.Therewillbenorequired paymentfromthePartner.
Installation Fee$50.00/percart: __________________
Installations ReservationCancellationFee$2,500: __________________
Penalties andInterest. __________________
REPRESENTATIONSANDWARRANTIESEachpartyrepresentsandwarrantstotheotherpartythat:(a)ithas thefullrightandauthoritytoenterintoandperformthisAgreement;(b)thepersonsigningthisAgreementon behalfofthatpartyhasbeendulyauthorizedtodoso;(c)entryintoandperformanceofthisAgreementdoesnot requireanyconsentsorapprovalsnotobtained,nordoesitviolateanyagreementstowhichsuchpartyisaparty; and(d)thisAgreementconstitutesavalid,bindingandenforceableobligation ofsuchparty.
ADDITIONALOBLIGATIONS
DutyofCare.ThePartner(a)shallexercisereasonablecarewithrespecttoitspossessionanduseofthe SystemandallProducts;(b)shallnotaltertheSystemoranyProduct;and(c)shalluseitsbesteffortsto avoiddamaginganyandallProduct.
LossorDamage.DCIshallinsuredamagetotheProducts,otherthanthatarisingfromordinarywearand tear,inanamountnomorethan10%oftheProductsoutlinedinExhibitA.IftheProducts,asdescribedon ExhibitA,arelostordamagedotherthanasarisesfromordinarywearandtear,andinexcessofthe aforementionedinsurance,thenthePartnershallpurchasereplacementProductsfromDCIatacostasper ExhibitA.
Indemnification. Eachparty(the“IndemnifyingParty”)shallindemnify,defend,protectandhold harmlesstheotherparty,itsrespectivedirectors,officers,employees,shareholders,agents,successorsand permittedassigns(the“IndemnifiedParty”),fromandagainstallliabilities,damagesandcosts,including reasonablelegalfees,incurredbytheIndemnifiedPartyasaresultofamisrepresentationorbreachofthis AgreementbytheIndemnifyingParty.
Nondisclosure. ThePartnerherebyacknowledgesandagreesthatthetermsofthisAgreementarestrictly confidentialandthePartnershallnotdisclosethetermsofthisAgreementtoanypersonorotherentity.
MAINTENANCEDCIshallmaintainandrepairtheSystemasneeded.DCIwilltrainPartnerstaffandleavespare replacementpartstoensureaquickturnaroundtimeforrepairstobecompleted.Shouldstaffnotbeableto repairthesystem,DCIwillprovidesupportviatelephone/emailorweb.Ifrequired,DCIwilldispatchpersonnelto thesite.
DEFAULTSTheoccurrenceofanyoneormoreofthefollowingeventsshallconstituteamaterialdefaultand breachofthisAgreementbythePartner(“EventofDefault”).
Misuse.ThePartnerfailstousereasonablecarewithrespecttotheSystemoranyProductandsuchfailure continuesforTHIRTY(30)ormorecalendardaysafterDCIgiveswrittennoticetothePartnerofsuch.
DCI’sREMEDIESInadditiontoanyotherlegalorequitableremedypermittedbylaw,uponanEventofDefault, DCIshallhavetherighttoterminatethisAgreementandtoretrieveallproductsand/orpaymentforreplacement valueoftheproductsasoutlinedinExhibitA.
PARTNERSREMEDIESIfDCIfailstoperformitsobligationsunderthisAgreement,thePartnershallgivewritten
noticetoDCIsettingforthinreasonabledetailthenatureofthebreach(the“Notice”).IfDCIdoesnotcurethe breachwithinTHIRTY(30)calendardaysfollowingreceiptoftheNotice,thePartnershallhavetherightto terminatethisAgreement;provided,however,thatifDCIisunable,actingreasonably,toremedythebreachwithin THIRTY(30)calendardays,aTHIRTY(30)dayperiodshallbeextendedforaslongasDCIdiligentlypursues suchcorrectiveactioninapromptandreasonablemanner.
NOREMOVALThePartnershallnotremoveorattempttoremoveanyProductfromitsgolfcoursewithoutthe priorwrittenconsentofDCI.
ASSINGMENTDCImayassignanyorallofitsrights,andobligationshereunderafterwrittennoticetothe Partner.ThePartnershallnotassignortransfer,whethervoluntarilyorinvoluntarily,itsinterestunderthis AgreementwithoutfirstobtainingDCI’spriorwrittenconsentineachinstance,whichconsentfromDCIwillnotbe unreasonablywithheld.AnyattemptedtransferwithoutDCI’spriorwrittenconsentshallbenullandvoid.
SEVERABILITYIfanyprovisionofthisAgreementisdeemedinvalidorunenforceabletoanyextentbyacourtof competentjurisdictionthentheremainderofthisAgreementandtheaffectedprovision,totheextentitisnotheld invalid,shallbevalidandenforceabletothefullestextentpermittedbylaw.
GOVERNINGLAWThisAgreementshallbegovernedbythelawsoftheStateofArizona.
RELATIONSHIPOFTHEPARTIESNothingcontainedinthisAgreementshallbeconstruedascreatinga relationshipofemployment,agencyorpartnershipbetweenDCIandthePartner.
INWITNESSWHEREOF,thepartieshavecausedthisAgreementtobeexecuted:
| DCI: | Partner: | |
| By: | By: |
| Name: | Michael Loustalot | Name: |
| Title: | President | Title: |
ExhibitA
CourseInformation:
| Number of Holes | |
| Number of Golf Carts | |
| Make/Model of Golf Carts | |
| Gas or Electric | |
| Cart Lease End Date | |
| Number of Rounds on Carts per Year | |
| Other specifics |
Equipmentrequired(subjecttochange)
| # | Equipment | Replacement Cost |
| Tablets Required | $299 | |
| Cart Mounts and related equipment | $149 |
DetailedContactInformation:
| Administrative Contact Name: | Course ‘Champion’ Contact Name: |
| Position: | Position: |
| Email: | Email: |
| Phone : | Phone : |
| Mobile Phone: | Mobile Phone: |
| Notes | Notes |
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