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MINNESOTA COMMERCE - Unhappy Franchisee

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(1) THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES<br />

Mateo and Its Predecessors<br />

NMTC, Inc. d/b/a Mateo Tools ("Mateo") is a Delaware corporation, incorporated on January 12, 1993, with<br />

its principal office at 4403 Allen Road, Stow, Ohio 44224, telephone number (330) 929-4949. References to<br />

"you" in this Disclosure Document mean the person(s), corporation, partnership or other entity purchasing a<br />

Mateo Tools Distributorship. Mateo is a wholly-owned subsidiary of Mateo Tools Corporation ("MTC"), and<br />

operates as an indirect wholly-owned subsidiary of Danaher Corporation ("Danaher"). MTC is Mateo's<br />

parent company. MTC is a New Jersey corporation with its principal office at 4403 Allen Road, Stow, Ohio<br />

44224. Danaher is a Delaware corporation, with its principal place of business at 2200 Pennsylvania Avenue<br />

NW, Suite 800W, Washington, DC 20037-1701. Mateo does business under the name "NMTC, Inc. d/b/a<br />

Mateo Tools," "Mateo Tools," and "Mateo," and under no other names. Mateo's agent for service of process<br />

in this state is disclosed on Appendix H and/or on the acknowledgement of receipt pages which are the last<br />

pages in this Uniform Franchise Disclosure Document.<br />

Mateo is a manufacturer and distributor of professional quality tools, tool boxes, and service equipment.<br />

Malco has developed a distinctive business system (the "System") relating to the establishment and operation<br />

of Mateo mobile distributorships which sell tools, tool boxes, service equipment, and other goods and services,<br />

including, for example, apparel, model cars and other collectible items, and consumables (such as mechanic's<br />

hand soaps), and such other items that Mateo may in its sole discretion offer (collectively, the "Products").<br />

Mateo mobile distributors offer and sell Products to professional mechanics and other businesses which<br />

operate from a single location and purchase tools for their own use. The Products currently consist of more<br />

than 15,000 items, many of which are manufactured by or for Mateo, and are distributed by Mateo and sold to<br />

our distributor network. The System is identified by means of certain trade names, service marks, trademarks,<br />

logos and emblems, including the marks "MATCO®" and "MATCO® TOOLS" (the "Marks").<br />

MTC began offering distributorships in 1979, and since then MTC and Mateo (beginning in 1993) have sold<br />

the majority of the Products through independent distributors throughout the United States. As of<br />

December 31, 00^2011. there were 1.44-M23 independent distributors selling MATCO® Products in the<br />

United States. The distributorship agreement offered and described in this Disclosure Document differs from<br />

agreements Mateo entered into with its distributors before 1993, in that the current distributorship agreement<br />

provides for additional duties and obligations for both parties. Currently M.atCi3_d.Q.e.S_Jiot own or ooexale<br />

distributorships. However., prior to 2006, Mateo operated distributorships similar to ,the type described in this<br />

disclosure document. Also, in 2010 and most of 2011. Mateo operated a small number of distributorships in<br />

the Boston. Massachusetts area. Most of these routes were sold to new franchisees in 2011 and two companvowned<br />

distributorships/routes were closed in late 2011.<br />

Mateo also sells the Products through commercial sales representatives to businesses and educational<br />

institutions including students with central purchasing operations, multiple locations, state, local and federal<br />

agencies and/or to other commercial account customers who generally purchase tools for their own use. In<br />

50-i-02011, these sales accounted for approximately 4795.0% of Mateo's revenues.—Prior to December 31,<br />

2005, Mateo operated diotribulonihips. but Mateo did not operate any distributorohipr. in 2006 through 2009.<br />

Beginning in 2010, and ar. of December 31, 2010, Matoo operates 5 difitHhulornhipii. Mateo may also employ<br />

persons or utilize independent manufacturers' representatives and specialized resellers to make sales calls and<br />

to support customers in specific market segments. Mateo also uses export distributors and agents to promote<br />

its products in locations outside of the United States.<br />

Mateo has offered franehised distributorships since 1993. Other than as indicated in this Disclosure<br />

Document, Mateo (or prior to February 1993, its predecessor MTC) has not offered distributorship agreements,<br />

franchises, or business opportunities in any other line of business. Mateo is not engaged in any business other<br />

than the manufacture, distribution, sale and servicing of tools and equipment as described in this Disclosure<br />

Mateo 2m2,FDD/PK 4j4?§4a^44349Q51.8 03/09/4412

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