Michelin Retread Shop

Franchisor requires franchisee to use computer system with Bib Tread NEXT™ software to record sales, expenses, production, and adjustment data; system must be capable of running Bib Tread NEXT™ software including thin/client router (purchased from third-party vendor); estimated cost $150,000-$200,000 plus software license cost. Franchisee must execute Bib Tread NEXT™ Software License Agreement (Exhibit D-1). Equipment includes hard drives, monitors, keyboards, printers, telephone/power lines, modems, and related accessories. Franchisee must also provide computer post with internet access for internet-based operator training module. Franchisor may update/upgrade software at any time requiring franchisee installation at franchisee's cost; no specific contractual limitations on upgrade frequency or cost. Franchisor has no obligation to assist with computer system but may suggest suppliers. Instructional materials include the Manual (table of contents in Exhibit I). Training conducted by MRTI Training Team Managers and staffs; Training Officer is Michael Widmyer (with franchisor since December 1996).