1. Non-Intrusive Partnership
The Partnership is a private, non-intrusive agreement between
a) Multi Arts Training Support (NPC) / MATS
b) The Equipment Partner (for advertising rights only)
c) The Partner Facility
MATS / The Equipment Partner:
a) will not hold any share in the Partner Facility’s business,
b) will not interfere with the running of the Partner Facility’s business,
c) will not require the Partner Facility to produce financial statements at any time.
The Partnership also offers a Buy-Out Option.
2. The Equipment
The Equipment is defined as the items of equipment required by the Partner Facility.
3. Total Partnership Value
The Total Partnership Value is based on the actual total costs of The Equipment at the time of the agreement. This reference amount is based on a quote from the actual Equipment Supplier/Partner.
The Total Partnership Value will be used to determine:
a) The Partner Facility Contribution and
b) The monthly Partnership Profit due to MATS.
4. Partner Facility Contribution
The Partner Facility will contribute between 60-70% towards the Total Partnership Value, unless otherwise negotiated. The Partner Facility Contribution is payable in advance (upfront) before The Equipment is ordered.
5. MATS Contribution
MATS will contribute between 30-40% towards the Total Partnership Value, unless otherwise negotiated. The MATS contribution is discount negotiated with the Equipment Partner. In exchange for this discount, MATS in return has an obligation towards The Equipment Partner to perform the required Terms of Advertising – as stipulated by the Equipment Partner in the final agreement.
Once the Equipment is available in Cape Town South Africa, it will be distributed to the Partner Facility for installation. Local distribution and delivery costs are excluded from the Total Partnership Value and Partner Facility Contribution. The Partner Facility will cover the cost of the delivery of The Equipment from Cape Town to The Agreed Location.
Installation costs are excluded from the Total Partnership Value and Partner Facility Contribution. Equipment Partner installation is compulsory on all MATS Partnership Packages. The Partner Facility will cover all related cost of installation at the Agreed Location. The Zebra Wall Padding are optional and can be added to the package.
8. Use of The Equipment
The Partner Facility can use The Equipment at the Agreed Location for classes and training purposes, competitions and seminars.
a) The Partner Facility cannot sell The Equipment.
b) The Partner Facility must keep The Equipment comprehensively insured at all times.
c) The Partner Facility is responsible for the care and maintenance of The Equipment using safe Equipment Partner Approved cleaning instructions and solutions.
9. Partnership Profit
The Partner Facility keeps most of the profit generated from the agreement. The monthly Partnership Profit due to MATS is based on the Total Partnership Value.
9.1 Total Partnership Value below R100 000
For Total Partnership Values below R100 000, the Partnership Profit due to MATS is only R1000 per month. IMPORTANT: The monthly Partnership Profit is a profit-component and will be due to MATS for as long as the Partnership Agreement remains in place, until the Partner Facility decides to use their Buy-Out option or Termination of Partnership option clause.
9.2 Total Partnership Value R100 000 or above
For Total Partnership Values at R100 000 or above, the monthly Partnership Profit due to MATS is calculated at 1% of the Total Partnership Value. For example, on a Total Partnership Value of R120 000, the monthly Partnership Profit due to MATS is R1200. IMPORTANT: The monthly Partnership Profit is a profit-component and will be due to MATS for as long as the Partnership Agreement remains in place, until the Partner Facility decides to use their Buy-Out option or Termination.
10. Buy-Out Option
Over time, when the Partner Facility grows financially stronger and wishes to own the equipment issued under the Partnership – the Partner Facility can pay the difference between the Total Partnership Value and their initial Partner Facility Contribution.
If the original Total Partnership Value was R100 000 and the initial Partner Facility Contribution was R60 000, then the Buy-Out Payment will be R40 000.
IMPORTANT: The sum of the monthly Partnership Profit payments made to MATS, during the period of the Partnership, is a profit-sharing component. It is therefor excluded from, and cannot be taken into account and does not affect the Buy-Out Payment value.
Fulfilling the Buy-Out terms will
a) terminate the agreement between the Partner Facility and MATS,
b) stop the Monthly Partnership Profit payments to MATS,
c) transfer full ownership of The Equipment from MATS to the Partner Facility and
d) issue an invoice to the Partner Facility for the equipment.
11. Termination of Partnership
Sometimes in business, things don’t always go to plan. In the unfortunate event where the Partner Facility will be closing their business, the MATS Partnership agreement can be terminated. The Partner Facility can invoke the Termination of Partnership clause as specified in the MATS Partnership Agreement. The Equipment will be sold and the proceeds from the sale will be split between the Partner Facility and MATS according to the Partnership Agreement contribution percentage split. Terms and conditions apply.