Company Profile

Business Concept

Michal Negrin’s products -jewellery, fashion items, shoes, accessories and decorative items are sold in specialized Michal Negrin stores or in a special sections within stylish, elegant shops, in line with our successful global concept.“We set up the framework for your success. As our representative, you ensure that Michal Negrin customers feel at home in your shop, and are able to enjoy a unique shopping experience typical of all Michal Negrin Stores”. Principles for setting up a Michal Negrin Store-Michal Negrin items have a recommended consumer price for Europe & USA Market- Licensees of Michal Negrin store are entitled to a discounted price of 72.2% off the consumer pricelists on our website (eg. an item that costs 100 Euros will be sold to you at 27.8 Euros).Your earning ratio is 3.6 from the purchase (gross price) including territory VAT & local policies.-There are additional costs of approx 5%-8% associated with total purchase (these include shipping costs, packaging materials and local taxes according to local policies). Finding a Suitable Store LocationBelow are recommendations for finding a suitable location for your Michal Negrin Boutique.

Location guideline policy for suitable premises for Michal Negrin store: *-City with population of over 250,000 inhabitants.-Store location should preferably be in a tourist area(tourists must comprise 20% of the total traffic)**-Stores in the street must comprise 20% fashion (most of these should be prominent international jewellery and fashion brands)

* Michal Negrin reserves the right to approve location for each Michal Negrin boutique concept shop**Pedestrian traffic to be assessed at different hours of the day to determine feasibility of the store to ensure local is situated

Business PlanAfter finding an appropriate location with suitable lease terms which will be approved by Michal Negrin,you will be requested to submit a Business Plan including all expected expenses (eg. wages, electricity, telephone, insurance, etc.). Michal Negrin team will review Plan and provide its recommendations.

Total Investment (approx.) to establish a Michal Negrin Store-Recommended size for concept store:40sqm - 70sqm-Minimum (average) investment to set up a Michal Negrin store - 105,000€-Maximum (average) investment to set up a Michal Negrin store- 150,00€-Total investment in goods initially required for concept store - 70,000 €-95,000€(70% jewellery, 20% fashion and 10% accessories and gifts)-Total investment for design of store (Decoration) - 35,000 € - 55,000 € investment includes(example only): -Chandeliers, mirrors, rosetta, polyester vases, cushion for ring stands, small and big flowers arrangements, cornice, central sign for shop, borders for walls and niches, Michal Negrin software, costs for architect services, shipping costs for first order only ,boxes and packing materials for first order only, flights and hotels for MN team on grand opening date*. *All expenses for the project manager, Michal Negrin and her assistant will be borne by the licensee,with costs varied according to the territory : western and eastern Europe 6000€ and Asia and USA- 10000 €- please note that this a separate expense and does not includ in the total investment. The figeres noted above reflect an average investment. However, this issue will be discussed in depth per each case depending on the size of the store, location etc. The investment costs do not includ renovation of the store (paint, parquet flooring, carpentry work, electricity, telephone infrastructure and building plaster walls where necessary).

Designing your Store & Construction Plans:After your store location is approved by Michal Negrin, a licensed agreement will be signed by both parties which will govern the relationship between the parties.Following are steps after licensed agreement is signed:

Licensee will provide Michal Negrin’s team with:-Original plans of the store which will include: accurate measurements of the store from all angles(front, walls, windows, ceiling, niches (if any), storage room, interior and exterior).-Photo images of the potential store to be provided to Michal Negrin team(photos should be comprehensive and should include pictures from every possible angle(front, interior, all walls,ceiling/s, storage room, exterior, balconies (if any) etc.)

Michal Negrin team will provide Licensee with:

-Michal Negrin licensed boutique concept store plan and designs-Cost estimation for the store (eg. lights, curtains, software for the cash register, architectural plan for the store, signs, displays, Michal Negrin packing materials – all the items necessary for opening and successfully running your Michal Negrin store)-Comprehensive instructions regarding carpentry and lighting plans for the store.-It is the duty of the Licensee to hire an architect on his behalf to ensure that all the plans submitted by Michal Negrin are clear. All costs for the architect and workers, including construction and all building in the shop will be the Licensee’s responsibility.-Recommendation for first order including Michal Negrin “best sellers” and also items from our“newest collection”

Payment terms

30% of the total expenses will be paid to Michal Negrin upon signing of the agreementRemaining 70% of total expenses are to be transferred to Michal Negrin before shipping of items and merchandise needed for setting up the shop.

After receipt of payment above,the project will be finalize as follows:

-Grand opening date for the new Michal Negrin boutique concept store to be agreed upon by both parties.Michal Negrin will allow the licensee access to its marketing materials and will support the local PR agency of the licensee with any image files etc. needed for advertising in the new location.

-A Michal Negrin project manager will be appointed and dedicated to assisting you in setting up your store. He will work directly with your contractor regarding renovations required for the new store.

-All interior items required must be in accordance with Michal Negrin’s specifications for each store.These are designed and manufactured in the Michal Negrin factory in Israel.

-Shipping date for the above meatrials will be agreed upon by both parties.

-Your store representative/store manager will be required to visit Michal Negrin headquarters in Israel for professional training which will include: visits to Michal Negrin stores in Israel, learning aboutMichal Negrin company and adherence to our work methods, visual merchandising, operation of our cash register system etc.

-A representative from Michal Negrin team will travel to your store location and confirm that the store meets with all the Michal Negrin requirements. Your shipment will be released accordingly.

-Michal Negrin team, in close cooperation with your store manager, will assist in setting up the store(store design and display items, merchandise and packing materials etc.).

Marketing package for your new Michal Negrin store:

1 . Marketing Strategy

- Launching collections according to local holidays and events

- Setting out a marketing plan for the local target market

- Defining the right local marketing channels

- Defining the local marketing platforms (magazines, bloggers, celebrities)

2 . Our Marcom includes

- Semi annual photo shoots for each collection (spring-summer/ fall-winter)

- Catalogs production

- All visuals for store interior design

- Visual merchandising

- All graphical elements: business cards, brochures, invitations, postcards etc.

- Design ads (offline and online)

- Online marketing: newsletters, promotions, social media, etc.

- The do’s and don’ts principles

3 . Public Relations

We highly recommend hiring a local PR agency that specializes in traditional and online PR witha lifestyle brand. Hiring the right agency that knows how to break through the local market, can really make a strong impact when launching the brand in a new territory. Our marketing department will give you a full PR support: - Guide you step by step building your PR strategy in collaboration with your local agency - Writing and creating the media pack to include: •Press release •Biographical info sheet on Michal Negrin •Images from each collection- Participating in celebrity placement for buzz creation- The grand opening event with the designer’s presence • planning the concept of the event •guiding your local agency •creating the press kit •sending gifts for guests •design all graphics elements for the event

In addition guidance and training will be provided upon your specific needs in order to suit your local market, target clients and social culture.

We welcome you to join Michal Negrin’s magical world and our global family, and share our success.

Michal Negrin Marketing Team.

*This document is for preliminary purposes and its purpose is to be a reference guideline ONLY.All binding details required to be specified in the legal contract which will be duly signed by both parties.This document does not hold any legal obligations and/or undertakings of any kind on behalf of Michal Negrin.

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