Exhibit 10.18

 

CONFIDENTIAL TREATMENT HAS BEENREQUESTED FOR CERTAIN REDACTED PROVISIONS OF THIS AGREEMENT. THE REDACTEDPROVISIONS ARE INDICATED BY THREE ASTERISKS ENCLOSED BY BRACKETS AND UNDERLINED.THE CONFIDENTIAL PORTIONS HAVE BEEN FILED SEPARATELY WITH THE SECURITIES ANDEXCHANGE COMMISSION.

 

| [NBO Systems, Inc. Logo]   
[Children's Heroes Logo]
 
**MERCHANT PARTICIPATIONAGREEMENT

 **
This Agreement isentered into as of 10-25, 2004 ("Effective Date"), by and between NBO Systems,Inc., ("NBO") also doing business as Children's Heroes, located at 3676 W.California Avenue, Bldg. D, Salt Lake City, Utah 84104, and [*** * ***] ("Merchant") with business locations as provided herein, collectivelyreferred herein as the ("Parties").

 

In consideration ofthe mutual covenants provided herein, both Parties agree to and accept the termsas follows:
-  **The	Merchants:**This agreement covers the following Merchants: Ultimate	Electronics and Sound Track**The	Programs:**The Merchant agrees to participate in NBO programs as set	forth in this Agreement. This includes the Children's Heroes community	fundraising program involving schools, churches, youth sports groups and	other non-profit organizations ("NBO customers") It also includes	business-to-business incentive programs with NBO corporate and Mall clients	["NBO customers"). Participation in the NBO program as defined in this	agreement requires Merchant to provide NBO a discount/rebate in the amount	agreed upon and as stated herein. NBO customers agreement with NBO allows	NBO customers to purchase gift certificates, gift cards and other Stored	Value financial instruments from NBO for redistribution to NBO customers at	full retail face value, with the NBO customers earning a rebate or discount	as revenue. The Merchant rebate/discount will be split between NBO and NBO	customers participating in the programs.**The	Products:**The products to become an integral part of this agreement	include the following, unless otherwise agreed upon in writing:-  **Corporate Incentive Card, Mall Incentive Card, Community Scrip Card:**		A Stored Value Card that will be honored by multiple merchants		participating in NBO programs. Processed and billed on a major credit /		debit card platform just like consumer credit cards. Such Stored Value		Card shall be issued by NBO to NBO customers, which in turn may redeem		the value on the Stored Value Card at participating merchant locations,		including those of Merchant.-  **The	Rebate/Discount:**The Stored Value Card may be used at the locations	of participating merchants, including that of Merchant. To the extent an NBO	customer uses or redeems the Stored Value Card at a Merchant location,	Merchant agrees to contribute a rebate/discount of the following % based on	the Gross amount of the transactions at all participating Merchant	locations. The rebate/discount applies to each product identified in	paragraph 3 above and is determined on a graduated basis in accordance with	the purchase volume achieved in a given calendar year.
[***		* ***]
-  **The	Payment:**The Merchant agrees to participate in NBO programs	identified in paragraph 2 above by accepting Stored Value Cards distributed	by NBO and used or redeemed by NBO customers at Merchant locations. The	Merchant agrees to pay NBO the rebate/discount disclosed in paragraph 3	above, which amount will be paid on the gross amount of all transactions.	NBO will track the use of Stored Value Cards issued by it and the dollar	amount of purchases at Merchant's stores. NBO will report such gross sales	to Merchant together with an invoice for the rebate percentage applicable to	such gross sales. The rebate/discount will be paid by Merchant within thirty	days of its receipt of invoice. NBO shall retain accurate books and records	tracking such sales and rebates owed by Merchant and shall provide	supporting documentation at Merchant's request.**The	Term:** The term of this agreement is perpetual and will remain in	effect until either party provides 30 days written notification of its	intent to terminate. Either party may terminate the agreement at any time,	with or without cause, by such 30 day notice. Nothing herein obligates the	parties to refrain from terminating this agreement for any period of time.**Advertising.** NBO may use Merchant's name in its sales and marketing,	advertising or promotion of the relationship between the parties, solely	with Merchant's prior written approval. Any mass media advertisements or	promotions using Merchant's name, logos or proprietary trademarks of	Merchant shall require prior Merchant approval, which shall not be	unreasonably withheld.**Indemnification:**NBO shall indemnify and hold harmless Merchant from	and against any and all liability, claims, damages, judgments, fines,	amounts paid in settlement, losses, costs or expenses, including reasonable	attorneys' fees ("Losses") resulting from any NBO breach of this agreement,	or violation of law, or any tortious conduct. In no event shall either party	be liable to the other party for any consequential, incidental, punitive,	special or indirect damages of any kind. Merchant shall not be responsible	for any Losses resulting from lost or stolen Stored Value cards, or any	fraudulent activity with respect to their issuance, use, or redemption. NBO	shall indemnify Merchant from any Losses resulting from the foregoing.**Independent Contractors:**The parties hereto are independent	contractors. Nothing in this agreement shall be construed to create a	employment, partnership or agency relationship between the parties. Except	as otherwise expressly stated in Exhibit B attached hereto, NBO shall not	make any representations or warranties, or enter into any agreement or	assume any obligation, on behalf of Merchant.**Governing Law:** This Merchant Participation Agreement shall be	construed and governed by the laws of the State of Colorado, without regard	to conflicts of law principles thereof.**Entire	Agreement:** This Merchant Participation Agreement including all	attachments hereto, constitutes the entire agreement between the parties,	and supersedes all prior agreements, whether written or oral, regarding the	subject matter of this agreement This agreement may not be modified except	in writing by authorized representatives of each party.
       Upon signature, the Parties agree with and accept all terms and conditions asstated herein.

 

[*** * ***]    /s/ Chris Hutcherson

 

Signature		(Merchant)   
 Signature		(NBO Systems, Inc.)
 
 
 
[*** * ***]   
 Chris		Hutcherson [Children's Heroes Logo]
Print Name  		
 Print		Name
 
 
 
C.F.O.  		
 Senior		V.P.
Print Title  		
 Print		Title** 

 

EXHIBIT A

 

NBO / Children'sHeroes Fundraising Program

INFORMATION SHEET

 

[NBO Systems, Inc. Logo]   
[Children's Heroes Logo]
 

Business		Contact Information
 

[*** * ***]   
 9/24/04
Name of Company   
 Date of Enrollment

[*** * ***]   
 54/11
Name of Store (DBA)   
 # of Locations

[*** * ***]   
 [mike.denuzzi@ulte.com]
Owner or Authorized Agent Name  		
 Email Address

[*** * ***]   
   
Corporate Office Address   
   

[*** * ***]   
   
Website URL Fax #]   
   
    

**EXHIBIT B**** 

AUTHORIZATION FORRELEASE OR DEBIT CARD TRANSACTION DATA

 **
The undersigned makes thisauthorization in connection with the undersigned's enrollment and registrationas a participating merchant partner in the Children's HeroesTMandrelated NBO loyalty programs (referred to collectively below as the "Program").NBO Systems, Inc. ("NBO") either directly or through an appointed agent, isrequired to perform certain services in connection with the Program, includingthe initial processing of any data received from NBO's participating merchantpartners through the VISA/MasterCard bank card and/or commercial issuerinterchange network(s). To facilitate the establishment of these data and/ortelecommunications links, the undersigned, by its signature below, authorizesNBO, its employees and/or appointed agents (referred to below collectively as"Agent") as follows:
-  The undersigned		authorizes and directs Agent to represent and act for the undersigned		before its settlement bank, settlement processor, authorization network		processor, information technology department and others within the		VISA/MasterCard bank card and/or commercial issuer interchange network(s)		for the limited purpose of obtaining electronic authorization and		capture/settlement of debit card transaction data of the undersigned as		contemplated under the Program, subject to the limitations of the		Program and as set forth below.
-  The undersigned		authorizes and directs the acquirer of it's debit card transactions to		report and deliver its transaction data to the Agent and to cause and/or		direct the clearing and settlement agents within the VISA/MasterCard		bank card and/or commercial issuer interchange network(s), as		applicable, to report transaction data to the Agent, through a		telecommunications link with or to the Agent; *provided that* Agent		shall discard and make no use of the undersigned's transaction data for		consumer transaction data for consumers who are not consumers enrolled		or participating in the Program except at the undersigned's separate,		specific and written authorization or request to Agent.
-  The undersigned		authorizes NBO to use the undersigned's transaction data as contemplated		by and in furtherance of the objectives of the Program, subject to any		limitations contained in Program and NBO's and the undersigned's privacy		policy, as the same may be amended from time to time at NBO's or the		undersigned's discretion and in accordance with applicable law. The		undersigned further authorizes Agent to process and use the data in		accordance with the foregoing purposes and subject to the foregoing		limitations, including qualification of transactions for consumer		participants and participating merchant members in the Program.
-  The undersigned		acknowledges that it will remain responsible for any fees imposed by its		settlement bank, settlement processor, authorization network processor,		or information technology department in connection with the transmission		of data to Agent.
-  Agent confirms and		agrees that it will only use transaction data provided to it in		connection with the Program for purposes of fulfilling its obligations		to NBO and the undersigned in connection with the Program and shall be		consistent with NBO's and the undersigned's privacy policy.
-  This authorization may		be executed in two or more counterparts, each of which shall be deemed		to be an original and all of which together shall constitute one and the		same instrument.
-  NBO and Agent shall at		all times treat transaction, financial, and customer information		obtained and/or processed as a result of the Program in strict		confidence. Such information shall be deemed to be the confidential		information of the undersigned, and shall not be used or disclosed		except as expressly authorized herein.

ACKNOWLEDGED AND AGREED to as		of Sept. 27, 2004

 

		[*** * ***]  		

 /s/		Chris Hutcherson

		[*** * ***]  		

 Chris Hutcherson [Children's Heroes Logo]

 

Print Name  		

 Print Name

C.F.O.  		

 Senior VP

Print Title  		

 Print Title** |
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