ADDENDUM TO THE XXXXXXXX
YARN MACHINES AGREEMENT TO BE THE EXCLUSIVE
DISTRIBUTOR FOR MARZOLI IN THE UNITED STATES AND CANADA
(Original agreement signed and dated on or about July 15, 1998)
1. Xxxxxxxx Industries, Inc./Xxxxxxxx Yarn Equipment, Inc. (Xxxxxxxx) will
retain the exclusive right to sell all spare parts in the United States
and Canada. Xxxxxxxx will maintain the inventory reporting system so
that consignment spare parts are segregated from new spare part
purchases. Reports on spare part sales will be submitted monthly to
Marzoli International, Inc. (Marzoli).
2. Xxxxxxxx will assume the right to sell Marzoli and Xxxx machines in the
United States and Canada as the exclusive agent of Marzoli-Italy,
Xxxx-Italy and Marzoli International. Marzoli-Italy and Xxxx-Italy will
submit quotations for new machinery directly to the customer with a
commission percentage included for Xxxxxxxx Yarn Equipment. The
commission percentage will be subject to negotiation with Xxxxxxxx Yarn
Equipment, Inc. on a case by case, i.e. quote by quote, customer by
customer basis and shall be neither fixed nor guaranteed until the
final selling price is negotiated with the customer. Sales will be
received and recorded in the accounts of Marzoli International.
Commission will be earned upon receipt of the signed sales orders and
commissions will be paid to Xxxxxxxx within 30 days after receipt of
full payment from the customer and in no case will Speizman's
commission be less than 3%.
3. The following expenses will be paid for by Marzoli:
o Rent of office/warehouse space at 000 Xxxxxxxxx Xxxxx,
Xxxxxxxxxxx, XX.
o Utilities and other operating costs of rental space.
o Cost to administer the payroll and management of the facility either
as payroll costs or contract costs.
o Marzoli agrees to assume the lease at 000 Xxxxxxxxx Xxxxx,
Xxxxxxxxxxx, XX at the end of the distributorship contract.
4. Xxxxxxxx will be responsible for the cost of salesmen and all related
costs.
5. Xxxxxxxx will be responsible for the cost of all personnel currently on
the Xxxxxxxx payroll and any other personnel added in the future.
6. An invoice will be issued once a month for services rendered by
Marzoli. A base monthly amount of $31,000 will be due and payable to
Marzoli no later than the 15th of the month. The base amount will be
for technician services performed for that month and will be adjusted
either up or down for the actual amounts incurred for the prior month.
7. Marzoli and Xxxx agree to leave the price of their spare parts to
Xxxxxxxx unchanged until the end of the contract, barring any major
devaluation of the lira or other economic catastrophe.
8. Marzoli agrees to assume booth rental costs of the ATME show in
Greenville, SC (October 23-27, 2000). Marzoli will reimburse to
Xxxxxxxx $121,894 for deposits already paid and pay the remaining
balance of $121,894.
Marzoli, spa Xxxxxxxx Industries, Inc.
/s/ Xxxxxxx Xxxxxxx /s/ Xxxxxx X. Xxxxxxxx
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Xxxxxxx Xxxxxxx, President Xxxxxx X. Xxxxxxxx, President
Dated 6/9/99
