AGREEMENT

Between the Government of FUJAIRAH, Trucial States, (hereinafter called the GOVERNMENT), of the one part, and Finbar Kenny, residing in New York, U.S.A., (hereinafter called the AGENCY), of the other part, the following is hereby established and agreed upon:

  1. The Government hereby agrees that the Agency will have the exclusive rights for the production, promotion and sale of the stamps of the Government, both within and outside the territory of the Government.

  2. Finbar Kenny, hereinafter referred to as the Agency, hereby accepts the exclusive franchise, and will establish a separate company to be designated the "STAMP AGENCY OF FUJAIRAH," solely for this purpose. The books and records of this company will be open for inspection by the Government at all times.

  3. The Agency will employ a Postmaster and other personnel needed for a basic minimum postal service within the territory of the Government. It will provide in adddition all supplies, forms, and equipment which are necessary. It will further make any contracts necessary for internal and external mail service.

  4. The Agency will have those stamps produced which it deems best suited for postal use, and for the production of publicity and philatelic sales revenue. It will submit to the Government the themes and rough suggested designs, for the issues which it plans to have produced. The Government may request changes in the planned stamps. However, any revision, rejections, or changes must be made promptly, and in writing, and must be for important considerations. If the Government's specific and detailed revisions are not received within one (1) month after it receives advice on planned stamps, the Agency will proceed with the production of the stamps.

  5. The Government will promptly transmit to the Agency, to be dealt with, all inquiries, orders, requests, correspondence, and all other communications concerned with its stamps or postal service received by the Government.

  6. The Government will provide a building or office space within its territories suitable for normal mail service. It will provide normal legal and official protection for such mail service. It will promptly issue formal orders, statements or decrees, confirming the production and validity of the stamps produced under this Agreement, if such are requested by the Agency.

  7. The Government agrees and represents that while this Agreement shall be in force and effect, it shall not enter into a similar agreement with any other individual or company, and that no other person or company will have the right of selling stamps in its territory.

  8. All mint stamps produced will be forwarded directly from the producing Bank Note company to a repository, or bank, suitable to both parties. The Agency will draw such stamps against formal itemized receipt. It will pay to the Government fifty per cent (50%) of the face value printed thereon.

  9. The Government will be charged with fifty per cent (50%) of the printing cost of the stamps, and the expenses of local mail service. The Agency will pay in advance the Government's share of the costs, and deduct the corresponding amount from its remittance to the Government for the sale of the stamps. The Agency, in addition to paying fifty per cent (50%) of the printing cost (sic) will pay all other expenses connected with the publicizing and philatelic sale of the stamps.

  10. To maintain the philatelic value of the stamps produced, the Agency may at its discretion request the destruction of unsold stamps. However, at all times sufficient denominations of postage stamps will be kept on hand to cover at least six months' normal postal service.

  11. For maximum publicity benefits to the Government, and to accelerate the demand for mint stamps, the Agency may order whatever quantities of cancelled stamps it wishes. Should it wish such cancelled stamps, it will receive these without charge, but it must pay the full printing costs.

  12. The Agency will pay to the Govenment at the end of every three (3) months fifty per cent (50%) of the face value of all mint stamps drawn by it, less any amounts advanced by the Agency for postal service and the Government's share of the printing cost.

  13. The Agency guarantees to the Government a minimum annual net revenue of 300,000 Rupees during the first year of this Agreement, 400,000 Rupees during the second year, 500,00 Rupees during the third year, 600,000 Rupees during the fourth year, and 700,000 Rupees during the fifth and all following years that this Agreement remains in force. Should quarterly payments not total to at least these sums each year, the final payment of that year will bring the annual total up to this quaranteed minimum amount, or the Government can hold this Agreement to be in default.

  14. The Government represents to the Agency that it has no other valid agreement in force and effect, and that this Agreement supercedes and replaces any other agreement which it may have entered into.

  15. This Agreement shall be in force for a period of five (5) years, automatically renewable for an additional five (5) years, on the same terms and conditions, unless advance written notice to the contrary is given by one party to the other at least six (6) months before the expiration date of the Agreement.

  16. Should either party serve notice on the other that it does not wish to renew this Agreement, then all unsold mint stamps will be the property of the Government.

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