EX 10.31
[Xxxxxxxx Group letterhead]
Contract of Flat Price Sale
DATE: March 18, 1999
SELLER: BUYER:
Xxxxxxxx Xxxxxx Uno Restaurant Corp.
An Operating Unit of Xxxxxxxx Group, Inc. 000 Xxxxxxx Xxxx Xx.
000 X. Xxxxxxxxxx Xx. West Roxbury, MA 02132
Waukesha, WI 53186 Attn: Xxxx Xxx
Attn: Xxxx Xxxx
ITEM: 8/6# 2.5% Mozzarella Loaf
PRICE: $1.40/lb.
QUANTITY: 5,180,000 lbs. (approximately 130 truckloads).
SHIPMENT: 540,000 lbs. April; 680,000 lbs. May; 520,000 lbs. June; 600,000 lbs.
July; 720,000 lbs. August; 480,000 lbs. September; 480,000 lbs. October; 680,000
lbs. November; 480,000 lbs. December 1999.
F.O.B.: Xxxxxxxx Production Plant
REMARKS: Any open monthly contract balances (both shortfalls and excesses) to be
settled against BFP settlement price for that particular month. Conversion
factor is 400,000 lbs. BFP to every 40,000 lbs. of finished good (10:1 ratio).
Cash settlement against open monthly contract balances. BFP base prices
correlating to finished goods prices are: April $11.09/cwt., May $10.85/cwt.,
June $10.85/cwt., July $11.49/cwt., August $12.36/cwt., September $12.74/cwt.,
October $12.98/cwt., November $12.94/cwt., December $12.70/cwt. (Please see
addendum outlining specific examples).
Xxxxx will notify seller immediately by wire if there are differences from
original agreement. Failure to sign and return contract within 7 days
constitutes acceptance of all contract terms.
Xxxxxxxx Xxxxxx, Inc. Uno Restaurant Corp.
By: /s/ Xxxxx X. Xxxx By: /s/ Xxxx Xxx
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Its: Vice-President Its: Senior Vice President
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Date: 3/18/99 Date: 3/18/99
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Contract of Flat Price Sale
ADDENDUM
SETTLEMENT EXAMPLES:
EXAMPLE #1
April BFP at $11.09 at consummation of contract. Xxxxxxxx xxxxxxxxx as hedge.
Uno ships only 500,000 of 540,000 lbs. contracted.
April BFP settles at $10.50 on 5/5/99.
Shortfall of 40,000 lbs. of cheese equals 400,000 pounds of BFP.
400,000 lbs./100 X ($11.09-10.50/cwt.) = 4000 cwt. X $.59/cwt. = $2360 in equity
owed to Xxxxxxxx.
EXAMPLE #2
Should the April BFP settle at $11.50 on 5/5/99, then the settlement mechanism
would be
400,000 lbs./100 X ($11.09-$11.50/cwt.) = 4000 cwt. X -$.41/cwt. = $1640 in
equity owed to Uno.
EXAMPLE #3
Uno ships 580,000 lbs. on April portion of contract calling for 540,000 lbs.
April BFP settles at $10.50 on 5/5/99.
Excess of 40,000 lbs. of cheese equals 400,000 lbs. of BFP.
Uno will still pay $1.40/lb. FOB Production Plant for excess pounds of
finished goods, yet will receive equity in amount of
400,000 lbs./100 X ($11.09-$10.50/cwt.) = 4000 cwt. X -$.41/cwt. = $1640 in
equity owed to Uno.
We understand and accept the terms of the settlement mechanism for this
contract.
Xxxxxxxx Xxxxxx, Inc. Uno Restaurant Corp.
By: /s/ Xxxxx X. Xxxx By: /s/ Xxxx Xxx
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Its: Vice-President Its: Senior Vice President
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Date: 3/18/99 Date: 3/18/99
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