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<br />ADDENDUM 11. TQ CONTRACT EFFECTIVE <br />BETWEEN AUDIO TREK INTERNATIONAL LTD.. <br />. ("ZOO"). <br /> <br />1996 (the "CONTRACT") <br />("ATI"). AND <br /> <br />WHEREAS: ZOO has elected to use the "Refundable Deposit Method" <br />("DEPOSIT") of offering ZOOKEYS to their visitors for free use <br />during their visit for a deposit paid by the visitor of at least <br />two dollars ($2.00), rather than the outright sale of the ZOOKEYS <br />as described in sections 4.2 and 4.3 of CONTRACT, and <br /> <br />WHEREAS: ATI will provide ZOO with ZOOKEYS with elastic neckband <br />for the DEPOSIT program for fifty percent (50%) of the deposit <br />requested from visitors for the duration of the initial DEPOSIT <br />program and any subsequent similar DEPOSIT programs instituted by <br />ZOO in the future dur1ng the term of the CONTRACT and any exten- <br />tions of same, so the ZOO will receive net revenue of fifty <br />percent (50%) of the deposit received from visitors for every <br />ZOOKEY a visitor elects to keep and forfeit his deposit when he <br />leaves the zoo. <br /> <br />TIlE PARTIES AGREE THAT: <br /> <br />1. ZOO may purchase ZOOKEYS from ATI for a minimum of one <br />dollar ($1. 00) each and offer them to their visitors for a <br />refundable deposit of two dollars ($2.00) each, for as long as <br />the ZOO wishes to continue the said DEPOSIT program. If ZOO <br />wishes to charge a higher deposit than two dollars ($2.00) it may <br />do so in which case the cost of the key becomes fifty percent <br />(50%) of that higher deposit. <br /> <br />2. ZOO will place purchase orders for ZOOKEYS from ATI and will <br />accompany each order with a deposit payment of twenty-five per- <br />cent (25%) of the deposit to be requested from visitors for each <br />key. Upon delivery of the ZOOKEY order to the ZOO the balance of <br />payment of twenty-five percent (25%) of the deposit amount per <br />ZOOKEY will be due to ATI by ZOO under the same payment terms <br />specified in section 4.3 (a) of CONTRACT. <br /> <br />3. Section 4.3 (a) of CONTRACT is modified by the addition of <br />the following clause x). <br /> <br />x) Zoo may elect to offer FREE USE of ZOOKEYS to visitors for a <br />Refundable Deposit either as an initial promotion, a special <br />.event, or a continuing method of distribution. For this <br />use, ZOO may purchase ZOOKEYS from ATI for fifty percent <br />(50%) of the amount of the deposit requested from visitors, <br />with a minimum said deposit of two dollars ($2.00). <br /> <br />If ZOO elects to increase the deposit for the ZOOKEYS over <br />two dollars ($2.00) I ZOO will notify ATI the date the in- <br />crease will take effect and ATI may invoice ZOO an addition- <br />al amount over the previous ZOOKEY cost paid or due to be <br />paid by ZOO to equal fifty percent (50%) of the increased <br />deposit amount. <br />