ProspectusMaster Franchise

Experts in Borehole drilling

Borehole drilling is Big Business

…Now is the time to join the Experts

If you have a passion for sales and for people, join the winning team ofexperts and be a success by owning a WaterWiz Master franchise.

…we are looking for new master franchisees that are dynamic, positively minded,

go-getter-type people with a great sense of business ethics, who place a high

value on social development and will be willing to join a structured franchise

system with WaterWiz in their country.

About WaterWiz

Audie Steel & Engineering is a small manufacturing

business that is situated in Limpopo, South-Africa. Their

focus is to manufacture drill rigs for contractors who do

blast hole drilling as well as water well drilling rigs. The

rigs are usually truck mounted but they have started

with a range of trailer and tractor mounted drill rigs.

These rigs are for DTH and mud rotary operation. Audie Steel & Engineering is a

young company with a dynamic team that is open to new ideas. They are

registered builders at the dept. of transport in South-Africa. Audie Steel &

Engineering trading as WaterWiz franchisor has found a gap in the market and

realized the best way to get a dedicated water drilling operation countrywide and

in the whole of Africa would be to set it up as a franchise. Audie Steel &

Engineering want to expand to the rest of Africa by making master franchises

available for each country. The master franchisor will then set up a franchise

organization in their country.

Southern Africa's water resources are "dwindling" due to poor use of land in the

region, according to a recent report by the Southern African DevelopmentCommunity (SADC). Overgrazing and deforestation coupled with droughts have

caused water shortages. The global weather phenomenon El Nino also has had

adverse effects in SADC countries. For example, El Nino caused droughts in

Zambia and Zimbabwe but caused floods in Mozambique and Malawi. According

to the report, South Africa and Botswana were among the countries that

"escaped the devastating impact of drought."

The SADC report recommended that all member countries take up an "integrated

development and management" system to deal with water resources. This would

include "revisiting issues" such sharing trans-boundary water resources,

particularly along the Zambezi river system, and equitable allocation of water.

According to the Department of Water Affairs, agriculture used 54 percent of the

nation's water in 2007, while urban and domestic use stood at 11 percent, mining

and industry at 8 percent, forestry at 8 percent, and the environment at 19

percent.

Groundwater can play an extremely important role in this respect, particularly in

delivering water to dispersed rural communities. As a reliable and relatively

accessible resource, it is particularly appropriate in arid areas that are prone to

drought and where the surface waters dry up for months at a time. For example,

they estimate the potential of groundwater for domestic use in the Eastern Cape

as over 80%, in comparison to a present estimated use of 25% across all

communities. If present trends in water supply statistics continue, we can expect

to see widespread reliance on groundwater in the years ahead.

South Africa is not alone in its realisation of the value of groundwater. There is

growing international recognition that groundwater is a fundamental component

of freshwater resources. Groundwater is increasingly used to supplement surface

water where supplies are unreliable. It is often safer to drink untreated. It may,

therefore, be regarded as a key factor in local development and poverty

alleviation.

The master franchisee will set up a complete franchise system in their own

country and develop their own area selection for franchisee sales. This is great to

expand a working system into the rest of Africa. Are you ready to take on this

challenge?

The advantage that a master franchise will have is that it will be classified as a

manufacturing plant. Many of the African countries will fund these ventures and

specifically if the company focuses on water drilling which alleviates water

shortages. The master franchise will have to set up a manufacturing plant that

would do all the assemblies of the drills. The master franchise will not be limited

to assembling drill machinery for the franchisees but also assemble drill

machinery for all other industries including mining. This will create a lucrative

income. The master franchise will be able to play a vital role in their local

economy.

The income stream will be from four areas:

1. Franchise fee

2. Royalty or management fee.

3. Sale of equipment and drill machinery to the franchisees.

4. Assembly of other drill equipment and accessories.

Our Service

Drilling has over the years developed to a highly specialized and technical

activity. Drilling with jumper rigs as in the olden days rarely takes place and most

of the boreholes drilled are drilled with

the air percussion technique. This

technique is fast and efficient. However,

when drilling a borehole for groundwater

abstraction purposes, drilling becomes

much more than just making a hole in

the ground.

For many people drilling is only the

activity above the ground that they can

see and observe. A water borehole is

however a specially engineered hole in

the ground, making provision for water

to flow into this hole and allowing for a

pump to be installed inside the hole to

allow abstraction of water. Part of this

engineered design is to prevent the

surrounding geological formations to

collapse and closing the borehole. This

could mean cost and energy to re-drill

or clean the hole to be able to use it

again. The task of the Driller is to drill

and construct a borehole, not to get

water. This task should be left to the

scientist dealing with the nature and

study of the geological formations.

None can however operate in isolation

and it important to see the actions of the

scientist and driller as a team effort.

There are very few people that take

time to consider how the drillers

manage to keep a vertical borehole, which went through sand and hard rock,

open until the casing is installed. How does one manage to remove the drilled

pieces of rock from deep below the surface? Skill is needed to guide and control

a water well drill as it penetrates sand, gravel, clay and solid rock formations

underground. The drill rods are quite heavy and can weigh several tons; if the

drill pushes too hard or turns too fast, the drill bit will wear out too fast; if it does

not push hard enough, it won’t penetrate. Quite often several rock layers are

encountered in a single borehole, each requiring different drilling pressures and

speeds. When water is encountered the drilling becomes even more complicated

and the driller needs to understand exactly what forces need to deal with to

further penetrate.

Two methods are typically used in South Africa for the drilling of water boreholes,

these being the (mud) rotary and air percussion methods. A third method the

cable tool method used to be quite popular, but due to the time it takes to drill a

hole with this technique it is not quite as popular any more. There are other

methods, and combinations of methods, but these are the most common. Most

home wells are drilled to 6 or 8 inches in diameter. Municipal or irrigation wells

are likely to be drilled at larger diameters, sometimes as much as 24 inches or

more.

The (mud) rotary technique.

In rotary drilling, a drill bit is attached to a length of connected drill pipe. The drill

bit will be made of tough metals such as tungsten, and as the drill is rotated the

bit grind up the rock. The drill fluids (sometimes referred to as drilling mud) are

circulated through the drill string into the borehole and back to the surface and

carries (flush) the broken pieces (cuttings) upwards and out of the hole. This fluid

also serves as a formation stabilizer preventing possible cave-in of unstable

sands or crumbly rock before the well casing or well screen is installed.

Furthermore this fluid acts as drill bit lubricant. As the drill intersects water

bearing rock formations water will flow into the hole. Drillers on site will carefully

monitor the depth of water “strikes” and keep a note of the formations in which

they occur.

Air percussion technique

This technique utilizes compressed air to operate a down-hole air hammer on the

end of the drill string that helps to break up the rock formation. This technique is

currently the most commonly used technique in Southern Africa and many

successful boreholes have been drilled applying this technique. The compressed

air that is used to operate the down-hole air hammer also blows the crushed rock

fragments out of the hole to the surface along with any water that flows into the

hole during drilling. This has many times lead to the believe that This is of course

not (**always) true as it is the compressed air that forces the water out of the

borehole and not necessarily the relief of water pressure that allows water to

freely flow on the surface. (** Artesian wells do exist where after completion of

drilling, water carry on flowing on the surface s specific application.

Costs

The cost of a borehole can be significantly influenced by the applied design as

well as the difficulty to construct a borehole in a specific geological formation.

Many times people try to save on costs and therefore they will budget for the

drilling of a borehole, but not for the casing of a complete hole. Installation of

casing, which might in the short term seem costly, will almost always pay off in

the long run. This casing will allow for the borehole to stay open for years after

completion, and correctly installed it will also assist in keeping the borehole clean

and free of material that could damage your borehole pump.

A question of quality: - As the water crisis in Africa expands the focus

becomes more specialized on other water supply specialties. This expansion has

created an enormous opportunity in borehole drilling.

In touch with the future: - Borehole drilling is the most effective way to

access free water and alleviate the water crisis currently experienced in Africa.

Our mission

WaterWiz can reach out to areas that most need water as part of the social

responsibility to give people in all communities the opportunity to grow

economically with having access to water and compete in this increasingly

globalized environment economically. This will be achieved by expanding the

franchises to the rest of Africa .

Our Values

� Respect – We value people and seek to understand and appreciate each

person’s contribution. We seek to build high trust relationships.

� Integrity – We honor our commitments to others. We are ethical, honest

and fair in our business affairs.

� Communication – We share useful information timely, openly, and

honestly. We listen attentively and consider all points of view.

� Teamwork – We collaborate with and are accountable to one another. We

strive to achieve the most for the collective good of all.

� Action – We take action, meet challenges, and find solutions. We are

creative and innovative.

� Service – We honor our customers and franchisees by providing timely,

accurate, and complete service and support. We strive to exceed their

expectations and create opportunities for success.

� Growth – We continually learn and improve ourselves to ensure greater

opportunities, successes, and rewards for the entire WaterWiz network.

We will grow and strengthen our brand presence domestically through

planned strategies that ensure success for our franchisees and our brand.

� Well-being – We contribute to the spiritual and physical well-being of

others.

WaterWiz Drillers cc

is in the process of applying for membership

THE FRANCHISE ASSOCIATION of SA

WaterWiz MD and Operations Manager - Cornelius Petrus Wilhelmus Audie

Employment History

Period of Employment

and CompanyPosition and Key Performance Areas

1987-1991Veterinary Laboratory

Lab assistant – testing of specimens, preparing

cultures, drawing blood and general handyman

1991 – 1994Self Employed

Rhino Steel & Fencing

Vision Panel Beaters

1994 – 1996

Norware

Sales manager – generate new revenues of

income, control sales reps

1996 – 2007

Self Employed – CSS &

Nelo

Computer Solution Services – hardware sales,

installation, business solutions, programming in

Delphi, training. Developed Nelo point-of-sale

software and established Nelo as a company – still

running currently

1999 – current

Self Employed – Audie

Steel & Engineering

Began Audie Staalwerke – steel manufacturing

business which developed into Audie Steel &

Engineering which specializes in manufacturing

Period of Employmentand Company

Position and Key Performance Areas

drilling rigs.

Qualified design engineer

Education

Year of Study and Institution Course of Study and Major Subjects

SecondaryEngineering – Science, Geography, Maths

TERTIARYNECSASoftline

BorlandMecad Systems

NECSA Electronics Diploma

Pastel Certified Installer

Delphi Programmer

Solid Works Designer

Accounting and Marketing Manager- Chéron Marlene Audie

Employment History

Period of Employmentand Company

Position and Key Performance Areas

1984-1986

Woolworths CenturionStarted as a part time cashier and was promoted to part

time student management within a few months

1987-1988VerwoerdburgJewellers

Part time sales consultant

1988-1989

Mega Paints Valhalla

Part time sales consultant & admin lady

Period of Employmentand Company

Position and Key Performance Areas

1989-1992

MINK Photography

Part time credit & stock controller

1992 - 1993

Silver Lakes Golf Estate

Bookkeeper

1993 – 1994

ACE Construction

Bookkeeper

1994 – 1995

Clearline

Manager of the purchasing department

1995 - 1996

Bircraft

Bookkeeper

1996 - 2007

Computer Solution

Services

Started my own company, partnered with my husband

and built this business in Limpopo to top 20 Pastel

Accounting software resellers and top 3 Pastel Payroll

software resellers in SA

2007 - current

Audie Steel &

Engineering

Financial and marketing manager

Education

Year of Study and Institution Course of Study and Major Subjects

Secondary Administrative – Accounting, Maths, Business

Economics

TERTIARYSoftline Pastel Train the Trainer

Payroll Administrator

Pastel Payroll Certified Installer

Pastel Partner Certified Installer

Pastel Evolution Certified Installer

Year of Study and Institution Course of Study and Major Subjects

Authorized Trainer for Payroll, Partner &

Evolution

Unique selling point

Groundwater can play an extremely important role in relieving water shortages,

particularly in delivering water to dispersed rural communities. As a reliable and

relatively accessible resource, it is particularly appropriate in arid areas that are

prone to drought and where the surface waters dry up for months at a time.

The heads of the WaterWiz franchise agreement is:

� 5 Years with the option to renew after five years

� Setting up costs: R 2 146 100.00 (excluding VAT) which includes the

franchise fee.

� Master Franchise fee R 1 000 000.00 (excluding VAT) which is included in

the above set up costs

� Owner operated

Total Set-up costs: - R 2 146 100.00 (Excluding VAT)Master Franchise Fee: - R 1 000 000.00 (Excluding VAT) included in

set up costs.

The total set up cost provides you with a complete turnkey operation. The set up

costs includes the franchise fee. The franchise fee is a once of payment for each

franchisee that is opened. It secures the rights to operate a franchise, using the

WaterWiz trademarks and business systems. This fee is included in the set up

costs. This includes training for 30 days.

Management and marketing franchise fee:-

Management Fee: - 25 % of the Franchise fees Monthly with escalation of

10% per annum.

Marketing Fee: - 25 % of the Franchise fees Monthly with escalation of

10% per annum.

Franchise Fees: - 25% of the franchise fee of new franchisees in their

country

Transportation

Each new Franchisee will purchase a new, fully branded vehicle. The vehicle will

come with a 150 000km or 5 year service plan, which will be financed with the

vehicle over 60 months. A very favorable corporate discount has been

negotiated with Toyota and Sign-a-Rama will assist the Franchisee with the

wrapping of the vehicle at the Franchisees’ cost.

This vehicle will serve important functions, which will benefit the franchisee.

Advertising: The beautifully wrapped vehicle acts as an eye catching, moving

billboard for the franchisee, as the vehicle will have the individual franchisee’s

contact details on it.

WaterWiz’s marketing Ethos

WaterWiz conducts marketing and advertising activities which are funded by a

central marketing fund from monies collected from the advertising levy

appropriated to all franchisees.

We will advise on any local marketing. Appropriate mediums and advertorials in

relevant consumer and trade magazines are generally used with a combination

of shows and press advertising. Joint promotions and direct mail will be

encouraged to convey WaterWiz message to a defined market.

The direct selling concept is the very core to WaterWiz’s mode of operation.

Each franchise operates independently, marketing and selling the services to the

consumer.

Training

WaterWiz offer an intensive in-house training Course for franchisees and

managers for 30 days followed by on-the-job training on one or more sites. Other

training courses are also available at various times during the year and will be

run on an ongoing basis.

Franchisee profile

n A peoples person who is able to work with the public and professionals

and have a pleasant positive, and caring nature

n Must have good selling and marketing skillsn Self motivated and organized person who wants to succeed and be

prepared to work as part of the team

n Financially and ethically sound person who is genuine with customers and

applicants.

n Know, understand and implement WaterWiz policies and procedures

n Be familiar with the company’s mission statement, pledge and fee

structures

n Always maintain good relations and practice sound ethics.

n Maintain utmost confidentiality of company procedures, candidate and

client details.

Current Franchisees

WaterWiz Mokopane

Benefits of being a WaterWiz Franchisee

1. You immediately become part of a going concern

2. You start your business step by step with the support, expertise and

know how of the WaterWiz management team.

3. You have the WaterWiz brand name which is readily accepted by

customers and potential customers.

4. You benefit from continuing guidance and management support

5. You are equipped with marketing and sales support and administrative

procedures to ensure maximum result s

6. You benefit from the constant interplay of new ideas resulting franchisee

interaction.

7. You receive the benefits of co-operative national advertising.

WaterWiz recipe for success

1. Top class customer service in a pleasant atmosphere.

2. Smart work of excellent quality boreholes.

3. Competent management and personnel.

4. Well planned and organized business management.

5. Tight control of staff, administration and finances.

6. Never taking unfair advantages of clients, but conducting business in a

fair and ethical manner.

7. To maintain excellent payment record with all suppliers, landlords and

other creditors.

8. Brilliant expertise in sales and marketing.

What you get for your investment:

1. Assistance with the start-up program and identification of needs.

2. Advertising material templates.

3. Assistance with joining specified suppliers.

4. Training and continued follow up training.

5. Proven marketing and sales strategies.

6. Advice and assistants.

7. Annual conference held in the beginning of each year where all

franchisees will be present.

8. Once the franchise agreement has been signed and the franchise fee has

been paid, on the job training and start-up assistance will be provided.

9. Franchise operations manual.

10. Opening stock and equipment.

What we expect of you:

1. A commitment and determination to succeed.

2. Hard work and dedication to do the task.

3. Hands on Management.

4. Loyalty to WaterWiz ideals and objectives

5. A consistent standard of service in the areas of service range, customer

relations and efficient service.

6. Compliance with the franchise agreement.

Where are we looking for Franchisees?

Borehole drilling is Big Business!…Now is the time to join the Experts – WaterWiz.

We invite you to join our winning team and become part of our successstory by starting your own WaterWiz Master franchise. You will be backedand supported by the management and dedicated staff of WaterWiz.

Call Cheron Audie now onCellular 082 788 9978 or Tel 051 491 5553

Fax 086 509 0133Physical address

Plot 2, Planknek, Mokopane. 0601PO Box 4698, Mokopane. 0600

Thank you for your time. If you wish to receive further information regarding this

Master franchise Concept, please complete the Confidentiality Agreement below

and fax back to the number above.

Algeria Gabon Mauritius Sudan

Angola Ghana Morocco Tanzania

Botswana Guinea Mozambique Zambia

Chad Kenya Namibia Zimbabwe

DR Congo Libya Niger

Egypt Madagascar Nigeria

Ethiopia Mauritania Somalia

Confidentiality Agreement

I, ………………………………………………………………………………………….

ID Number………………………

of……………………………………………………………………………………………

………………………………………..

acknowledge that I am looking into the possibility of purchasing a WaterWiz

master franchise from WaterWiz. Confidential information will be made available

to me. I agree for a period of two years from the date of signature that I shall

neither directly or indirectly, nor through family, a Company or Close corporation,

participate or have any interest in the carrying on of business in competition with

WaterWiz operation, anywhere.

The parties hereto acknowledge that the aforesaid restraint of trade is just and

reasonable, both as to period and areas. I will also not disclose any confidential

information regarding the affairs of WaterWiz to any other party.

Prospective Purchaser: __________________________

As Witnesses 1.___________________________

2___________________________

Date __________________________

WaterWiz __________________________

As Witnesses 1.___________________________

2___________________________

Date __________________________