printer-friendly

Sample Business Contracts

Exclusive Supply Agreement - Rock of Ages Corp. and Eurimex

Sponsored Links

                         EXCLUSIVE SUPPLY AGREEMENT
 
 
 BETWEEN:
 
 1)   Rock of Ages Corp., a Delaware corporation, having its principal
      quarry office in the Town of Barre, Vermont at:  P.O. Box 482, County
      of Washington, Town of Barre, State of Vermont, USA 05641 ("ROAC");
      and
 
 2)   Eurimex, a societe anonyme, having its principal office at Rue Pierre
      de Coubertin 4, L-1358 Luxembourg ("Eurimex").
 
 WHEREAS:
 
 ROAC is a producer of granite blocks and wishes to appoint Eurimex as its
 exclusive distributor of its Salisbury Pink granite blocks to customers
 which are companies or entities which are residents of countries outside of
 North America ("Territory") in order that Eurimex can promote the sale of
 Salisbury Pink granite blocks.
 
 Eurimex has substantial experience in selling granite blocks in the
 Territory and desires to become the exclusive distributor of Salisbury Pink
 granite blocks quarried by ROAC and its affiliates.
 
 Eurimex and Carolina Quarries, Inc., now a subsidiary of ROAC, entered into
 a supply agreement dated January 21, 1997 which the parties now believe it
 is in their mutual best interest to terminate and to substitute this
 Exclusive Supply Agreement for it.
 
 THE FOLLOWING HAS BEEN AGREED:
 
 1)   ROAC hereby appoints Eurimex as its exclusive distributor in the
      Territory to promote and sell Salisbury Pink granite blocks all upon
      the terms and conditions as set forth in this agreement.  This
      agreement shall become effective upon its date of execution but the
      term of this agreement ("Term") shall be from February 1, 1998 through
      December 31, 2003.
 
 2)   The price terms and miscellaneous criteria for Salisbury Pink granite
      for 1998 are as set forth in Exhibit A attached hereto and by this
      reference incorporated herein.  ROAC agrees that the future F.O.B.
      quarry prices through the term of this agreement will not increase
      more than ***% per cubic meter per ***.  Any increases in the
      established allowance for inland freight to and wharfage at the port
      of Savannah, as referenced in Exhibit A, will be charged directly to
      Eurimex as they occur.  Eurimex will be invoiced for all actual
      containerization charges at the port of Savannah as well as
      miscellaneous sur charges as they occur.
 
 3)   If shipments are made from any port other than Savannah, Eurimex will
      be invoiced for all total actual inland freight charges, wharfage,
      handling, containerization, and miscellaneous sur charges that are
      incurred for delivery to the port of embarkation.
 
 4)   ROAC will make every effort to ensure that the grade of blocks listed
      in Exhibit A and sold within North America are not processed for
      ultimate export outside of North America, so that Eurimex can be
      confident of their exclusive rights to distribute outside North
      America.  Eurimex and ROAC will make every effort to discuss details
      of various projects to maintain open communications and to avoid
      Territory disputes.
 
 5)   Eurimex agrees to purchase the following minimum quantities and ROAC
      agrees to provide the same:
 
      Year                       Quantity/Month           Quality
      ----                       --------------           -------
      1998 (Feb. through May)       ***                      E+
      1998 (May through Dec.)       ***                      E+
      1999 through 2003             ***                      E+
 
 6)   Eurimex may accumulate blocks as needed in order to have sufficient
      quantities for shipping.  Eurimex agrees to be invoiced (fob quarry
      price plus any freight or handling charges incurred) and pay for
      accumulated blocks on a monthly basis if invoiced by ROAC.
 
 7)   ROAC and Eurimex agree to negotiate in good faith beginning no later
      than July, 2003 for an extension of this agreement under which ROAC
      will supply Salisbury Pink to Eurimex.  It is agreed, however, by each
      of the parties, that the agreement in the preceding sentence to
      negotiate in good faith does not obligate either Eurimex or ROAC to
      either extend this agreement or to enter into a new agreement unless
      each party is satisfied as to the terms thereof and those terms are
      incorporated in a written agreement executed by each of ROAC and
      Eurimex.
 
 8)   This agreement supercedes all prior agreements between the parties
      hereto and is binding upon and shall inure to the benefit of the
      parties hereto and their successors and permitted assigns and neither
      party hereto may assign any of its rights, duties and obligations
      under this agreement without the written consent of the other parties
      hereto.
 
 9)   All notices required or permitted under this agreement shall be given
      by fax and shall be deemed given when the sending party's fax machine
      acknowledges in writing the transmission of the notice to recipient's
      fax machine.
 
 10)  This agreement is governed by the substantive and procedural laws of
      Luxembourg.
 
 11)  All disputes between the parties arising in connection with this
      agreement shall be finally settled under the Rules of Conciliation and
      Arbitration of the International Chamber of Commerce by three
      arbitrators appointed in accordance with said Rules.  The arbitration
      shall take place in the City of Luxembourg and the language of the
      arbitration shall be English.
 
 12)  In the event that the specific terms and conditions of this agreement
      are not being met, either party may terminate the agreement at any
      time upon ninety (90) days notice.  The party wishing to terminate the
      agreement must give written notice to the other, stating the specific
      reason why notice is given for termination.
 
 IN WITNESS WHEREOF, the parties hereto have executed this agreement in five
 (5) originals as of the 8th day of December 1997.
 
                               ROCK OF AGES CORP.
 
 
                               By: /s/ Jon Gregory                         
                                  ----------------------------------
                                    Jon Gregory
                                    Quarry Div. President
 
 
                               EURIMEX, S.A.
 
 
                               By: /s/  Carlo Kirsch                       
                                  ----------------------------------
                                    Carlo Kirsch
                                    Managing Director
 
 
                               By:  /s/ Christian Weiler                   
                                  ----------------------------------
                                    Christian Weiler
                                    President


                                 EXHIBIT A
 
 
 To:       Exclusive supply agreement for Salisbury Pink Granite
           Rock of Ages Corp. and Eurimex, S.A.
 
 Subject:  Prices and terms
 
 
 1.   All prices and sales are made in U.S. Dollars
 2.   Payment is due 30 days from the date of invoice from Rock of Ages
      Corp.
 3.   Prices are per cubic meter
 
                                      INL. FREIGHT
                        PRICE/M3       & WHARFAGE      PRICE/M3
 GRADE        SIZE*     FOB QUARRY      SAVANNAH       FOB SAVANNAH 
 -----        -----     ----------    ------------     ------------

 E+           Large     $***          $***             $***

 E+           Medium    $***          $***             $***

Classic II    Misc.     $***          $***             $***
 ________
 *    E+ Large: highest quality; min. length = 8'-0"; min. rise = 4'-0"
      E+ Medium:     highest quality; min. length = 6'-0"; min. rise = 4'-0"

 Classic II     (as available) low quality; random sizes
 
 Notes:
 
 1.   ROAC agrees that the future F.O.B. quarry prices through the term of
      this agreement will not increase more than ***% per cubic meter per
      ***.  Any increases in the established allowance for inland freight to
      and wharfage at the port of Savannah, as referenced in this exhibit,
      will be charged directly to Eurimex as they occur.  Eurimex will be
      invoiced for all actual containerization charges at the port of
      Savannah as well as miscellaneous sur charges as they occur.
 
 2.   If shipments are made from any port other than Savannah, Eurimex will
      be invoiced for all total actual inland freight charges, wharfage,
      handling, containerization, and miscellaneous sur charges that are
      incurred for delivery to the designated port of embarkation.