The Cleveland Trencher Company - Page 3

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          to be made by petitioner to AA&H or Mr. Aydin and was signed                
          twice by Mr. Aydin, in his personal capacity and on behalf of               
          AA&H.  The second commission agreement does not refer to the                
          first commission agreement, but the two agreements cover similar            
          subject matter, the entitlement to payments in respect of the               
          supply and sale of trenching machines to a Turkish Government               
          agency (first commission agreement) or the Government of Turkey             
          (second commission agreement).                                              
               The first commission agreement refers to BID 86-8203 and               
          provides for a schedule of payments to AA&H of all proceeds in              
          excess of specified amounts received for three types of trenching           
          machines, the specified amounts ranging from $118,00 to $122,000            
          per unit, f.o.b. factory.  For example, if petitioner should sell           
          one of its least expensive trencher machines to the Turkish                 
          Government agency for $160,000 with the assistance of AA&H,                 
          petitioner would be obligated under the commission agreement to             
          remit $42,000 ($160,000 - $118,000) to AA&H.  Petitioner agrees             
          to absorb any penalties imposed for late payment provided that              
          delays are not caused by situations beyond its control, and AA&H            
          agrees to pay from its share of the "proceeds all commissions,              
          consulting fees, freight and other miscellaneous expenses related           
          to this contract".                                                          
               The second commission agreement fixes the liability to make            
          payments under the underlying sales contract, specifies that its            





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Last modified: May 25, 2011