Here is some of the agreement with MATW and ETNL
This could be great for both companies once the products roll out.
SECTION 1 – REGISTRANT’S BUSINESS AND OPERATIONS
ITEM 1.01 Entry into a Material Agreement.
On February 16, 2010, Eternal Image, Inc. (the “Company”) entered into a binding letter of understanding (the “LOU”) with Matthews International Corporation (“Matthews”). Matthews’ acceptance was delivered to the Company on February 17, 2010. The LOU grants to Matthews the exclusive right to design, manufacture, and distribute certain caskets, urns, and monuments for the Company’s Vatican Observatory™ line; and urns for Eternal Image’s Star Trek line™ (“Branded Products”). Matthews is a designer, manufacturer and marketer of memorialization products and brand solutions whose securities are traded on the NASDAQ stock market under the symbol “MATW”.
The LOU is binding on the parties, but contemplates them entering into a more definitive contract in the future. It has an extendable initial term of two years, and the mechanics of its arrangement are that Matthews will initially manufacture and sell to the Company the Branded Products and repurchase them (on a quarterly basis) for sale and distribution (throughout the United States, Canada and Puerto Rico) through Matthews’ network of associated funeral homes and cemeteries. The specific number of product units that Matthews will manufacture and sell to the Company during a contract year is as follows:
a.
250 Star Trek Urns (which Product and design have been previously approved);
b.
720 Vatican Observatory Urns;
c.
200 Vatican Observatory bronze memorial pieces; and
d.
2,000 Vatican Observatory caskets.
The specific number of products that Matthews will repurchase from the Company during a contract year per quarter is:
a.
62 Star Trek Urns (plus an additional 2 units in the fourth quarter);
b.
180 Vatican Observatory Urns;
c.
50 Vatican Observatory bronze memorial pieces; and
d.
500 Vatican Observatory caskets.
The pricing for Products sold pursuant to the LOU shall be negotiated in good faith by and between the parties at such time as they are respectively designed and approved.
The executed Letter of Understanding is attached hereto as exhibits 10.1 and incorporated by reference.
SECTION 9 – FINANCIAL STATEMENTS and EXHIBITS
ITEM 9.01(d) EXHIBITS
Exhibit Number Description
10.1 Letter of Understanding between Eternal Image, Inc. and Matthews International Corporation
SIGNATURES
