Document:

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                                                                   Exhibit 10.22

                                EARNOUT AGREEMENT

         THIS EARNOUT AGREEMENT ("Agreement") dated as of September 13, 2000, by
and among MERIDIAN DIAGNOSTICS, INC., an Ohio corporation ("Meridian"), PRESTON
H. DORSETT, KAREN C. DORSETT, ROBERT F. NAEGELE and RONALD W. KIM (individually
a "Stockholder" and collectively the "Stockholders").

         WHEREAS, Meridian, the Stockholders, Meridian Acquisition Company
("Transitory Subsidiary") and Viral Antigens, Inc. ("Viral") have entered into a
Merger Agreement dated as of September 13, 2000 (the "Merger Agreement");

         WHEREAS, pursuant to the Merger Agreement, Meridian has agreed to
acquire all of the issued and outstanding stock of Viral pursuant to the merger
of Transitory Subsidiary with and into Viral with Viral being the company
surviving the Merger (the "Surviving Corporation");

         WHEREAS, pursuant to the terms of the Merger Agreement, the Earnout
Consideration (as calculated herein) is payable only on the condition that the
Surviving Corporation meets certain target financial objectives; and

         WHEREAS, the parties desire to define the target financial objectives
and other events which would result in the distribution of the Earnout
Consideration.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and conditions contained herein, and other good and valuable
consideration, the parties agree as follows:

         1. DEFINITIONS. The following terms for purposes of this Agreement
shall have the respective meanings as follows:

               (a) "ACQUISITION DEBT" means Nine Million Dollars ($9,000,000)
under the Merger Agreement, which debt shall be adjusted annually based upon the
net increase in cash, if any, as reflected in Viral's audited statement of cash
flows for the fiscal year ended September 30, and the payment of this cash flow
to Meridian. For purposes of determining the Year 1 Earnout Consideration, the
Acquisition Debt shall be deemed to be $9 million.

               (b) "CONTRIBUTION EARNINGS" means:

              Surviving Corporation's Adjusted Pretax Income (as defined
herein);

              LESS

              Cost of Acquisition Debt (as defined herein);

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                                      -2-

                  LESS

                  Financing costs related to future working capital or capital
                  expenditures incurred by Meridian on behalf of Surviving
                  Corporation;

                  LESS

                  Non-deductible Depreciation and/or Amortization (as defined
                  herein);

                  LESS

                  federal, state and local income taxes calculated on Adjusted
                  Pretax Income reduced by the Cost of Acquisition Debt and
                  financing costs related to future working capital or capital
                  expenditures incurred by Meridian on behalf of Surviving
                  Corporation, and the applicable GAAP treatment of
                  non-deductible depreciation and/or amortization using a
                  Surviving Corporation separate-company basis tax rate in
                  accordance with GAAP (the effective tax rate);

               (c) "COST OF ACQUISITION DEBT" means:

               i. Year 1 - Acquisition Debt multiplied by an interest rate of
eight percent (8%).

               ii. Year 2 through Year 6 - At each September 30 anniversary
date, the interest rate will be adjusted to the weighted average interest rate
in effect for the Acquisition Debt over the previous year.

               iii. In the event that Meridian retires the Acquisition Debt with
proceeds from an offering of debt or equity securities, the interest rate in
Year 2 through Year 6, as applicable, will be adjusted (increase or decrease) to
Meridian's cost of equity. The cost of equity capital shall be determined by
dividing the average closing price of Meridian Diagnostics common stock for the
20 trading days immediately preceding the equity transaction date by the
preceding four quarters' reported earnings per share from continuing operations,
and before extraordinary gains or losses, to determine the adjusted price
earnings ratio and then dividing one (1) by such price earnings ratio. The
result being the cost of equity capital, providing such capital is used to
retire or reduce the acquisition debt.

               (d) "EARNOUT PERIOD" means Year 1, Year 2, Year 3, Year 4, Year 5
or Year 6, as the case may be.

               (e) "ADJUSTED PRETAX INCOME" means the Surviving Corporation's
audited income before federal, state and local income taxes, determined in
accordance with GAAP and adjusted for the following:

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                  EXCLUSIONS:

                  i. Changes in application of GAAP unless such changes are
         accretive to Meridian's consolidated net income and the Earnout
         Calculation;

                  ii. Extraordinary items as defined by GAAP in accordance with
         Accounting Principles Board Opinion No. 30;

                  iii. Gain(s) or loss(es) on sale(s) of assets that exceed
         $25,000 on a cumulative basis in any one year;

                  iv. Gain(s) or loss(es) on insurance settlements;

                  v. Gain(s) or loss(es) on litigation settlements; and

                  vi. Intercompany interest charges from Meridian to Viral for
         Acquisition Debt or financing costs related to future working capital
         or capital expenditures incurred by Meridian on behalf of the Surviving
         Corporation.

                  INCLUSIONS:

                  i. Discontinued operations.

               (f) "PRO RATA SHARE" means, with respect to each Stockholder, his
or her share of the Earnout Consideration, expressed as a percentage, as set
forth on EXHIBIT A.

               (g) "NON-DEDUCTIBLE DEPRECIATION AND/OR AMORTIZATION" means the
sum of (i) the lesser of

                  (1) the actual depreciation and amortization related to
         adjustments to state tangible and intangible assets at fair value as of
         the effective date of the Merger Agreement based on the initial $9
         million purchase price

         or

                  (2) the calculated amount of amortization where such amount is
         defined as the sum of $9 million less total equity reported in the
         Audited Balance Sheet of Viral as of the closing date less acquisition
         costs less $20,000 divided by 20 years

         or

                  (3) $195,000

         plus (ii) additional amortization related to the Earnout
         Consideration.

               (h) "YEAR 1" means the twelve (12) month period commencing
October 1, 2000 through and including September 30, 2001.

               (i) "YEAR 2" means the twelve (12) month period commencing
October 1, 2001 through and including September 30, 2002.

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                                      -4-

               (j) "YEAR 3" means the twelve (12) month period commencing
October 1, 2002 through and including September 30, 2003.

               (k) "YEAR 4" means the twelve (12) month period commencing
October 1, 2003 through and including September 30, 2004.

               (l) "YEAR 5" means the twelve (12) month period commencing
October 1, 2004 through and including September 30, 2005.

               (m) "YEAR 6" means the twelve (12) month period commencing
October 1, 2005 through and including September 30, 2006.

               (n) "ZERO BASIS PRETAX INCOME" means Non-deductible Depreciation
and/or Amortization; PLUS Cost of Acquisition Debt; PLUS financing costs at
Meridian's interest cost related to future working capital or capital
expenditures incurred by Meridian on behalf of Surviving Corporation; PLUS
federal, state and local income taxes calculated by the following formula:

         [A/(1-Surviving Corporation's statutory tax rate)] - A

         Where A equals goodwill amortization.

               (o) "GAAP" means generally accepted accounting principles.

         Capitalized terms which appear in this Agreement but are not defined
herein shall have the respective meanings therefor set forth in the Merger
Agreement, unless the context requires otherwise.

         2. EARNOUT CONSIDERATION. Stockholders may receive additional purchase
price consideration ("Earnout Consideration" as calculated in this Section 2),
up to a maximum aggregate amount of $8.25 million, contingent upon Surviving
Corporation achieving certain financial targets within a specified time period
as defined herein. As a general guideline, it is the intention of the parties
that the earnout be based on the operating results of Viral as a stand-alone
business using fair and reasonable business practices, after consideration of
Non-Deductible Depreciation and/or Amortization, Cost of Acquisition Debt and
financing costs related to working capital or capital expenditures incurred by
Meridian on behalf of Viral. No Earnout Consideration may be earned subsequent
to September 30, 2006. Earnout Consideration will be measured during each year
of the Earnout Period. If Earnout Consideration is payable hereunder, it shall
be payable between 75 and 120 days, at the option of the Stockholder(s),
following the close of each year of the Earnout Period.

         In order for Earnout Consideration to be earned and payable for a year
during the Earnout Period, Contribution Earnings, as defined herein, must be
greater than zero. If Contribution Earnings are less than or equal to zero, no
Earnout Consideration is payable for the applicable

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Earnout Period. If Viral's Adjusted Pretax Income is negative, or a loss, such
loss does not affect the amount of Earnout paid in a previous year, nor payable
in a future year.

         If Contribution Earnings are greater than zero, then Earnout
Consideration for the period is equal to the LESSER of:

            a) 50% of Adjusted Pretax Income of Surviving Corporation; or

            b) 100% of Adjusted Pretax Income of Surviving Corporation less Zero
Basis Pretax Income.

         The Earnout Consideration shall be paid to each Stockholder based upon
his or her Pro Rata Share.

         3. MERIDIAN BUSINESS TRANSFERRED TO SURVIVING CORPORATION. The parties
hereby agree that any Meridian business transferred to the Surviving Corporation
will be provided on a basis commercially reasonable to the Surviving Corporation
and mutually agreeable to Meridian. The parties hereby further agree that
Meridian reserves the right to move its business (present and future) from Viral
to another vendor.

         4. TERMINATION OF PRESTON DORSETT OR ROBERT NAEGELE.

            (a) TERMINATION WITH CAUSE. Notwithstanding anything to the
contrary contained in Section 2, if Preston H. Dorsett ("Dorsett") or Robert F.
Naegele ("Naegele") is terminated by Meridian "for cause" (as defined in his
respective employment agreement), the right to Earnout Consideration payable to
Dorsett or Naegele, as the case may be, pursuant to this Agreement shall
automatically terminate and Dorsett or Naegele, as the case may be, shall
forfeit all future payments of Earnout Consideration.

               (b) TERMINATION WITHOUT CAUSE DURING YEAR 1. Notwithstanding
anything to the contrary contained in Section 2, if Dorsett or Naegele is
terminated by Meridian other than "for cause" (as defined in his respective
employment agreement) on or before September 30, 2001, the total Earnout
Consideration payable to the Stockholders shall be as follows:

                   i.      Year 1 Earnout Consideration - $  330,000
                   ii.     Year 2 Earnout Consideration - $  637,000
                   iii.    Year 3 Earnout Consideration - $  912,000
                   iv.     Year 4 Earnout Consideration - $1,200,000
                   v.      Year 5 Earnout Consideration - $1,046,000

               The Earnout Consideration will be paid on a pro rata share basis
to each Stockholder between 75 and 120 days, at the option of the Stockholders,
after the close of the respective Earnout Period.

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               (c) TERMINATION WITHOUT CAUSE DURING YEAR 2 THROUGH YEAR 6.
Notwithstanding anything to the contrary contained in Section 2, if Dorsett or
Naegele is terminated by Meridian other than "for cause" (as defined in his
respective employment agreement) after September 30, 2001 but on or before
September 30, 2006, the Earnout Consideration payable to the Stockholders shall
be equal to the average of the actual Earnout Consideration earned in all
Earnout Periods prior to the effective date of termination other than "for
cause" based upon the following projected payments:

                  i.        Projected Year 1 Earnout Consideration - $  660,000
                  ii.       Projected Year 2 Earnout Consideration - $1,274,000
                  iii.      Projected Year 3 Earnout Consideration - $1,824,000
                  iv.       Projected Year 4 Earnout Consideration - $2,400,000
                  v.        Projected Year 5 Earnout Consideration - $2,092,000

               For example, if either Dorsett or Naegele is terminated on
December 1, 2002 and if the actual Earnout Consideration paid to the
Stockholders in Year 1 and Year 2 is $1,500,000 then the Stockholders would be
entitled to 77.6% ($1,500,000 divided by $1,934,000) of the remaining Earnout
Consideration based upon the Projected Earnout Payments for each remaining
Earnout Period (i.e. the Year 3 Earnout Consideration payable to the
Stockholders would be $1,415,424 (77.6% of $1,824,000); Year 4 Earnout
Consideration payable to the Stockholders would be $1,862,400 (77.6% of
$2,400,000) and the Year 5 Earnout Consideration would be $1,623,392 (77.6% of
$2,092,000)).

               The Earnout Consideration will be paid on a pro rata share
basis to each Stockholder between 75 and 120 days, at the option of the
Stockholders, after the close of the respective Earnout Period.

               (d) OTHER TERMINATION PROVISIONS. If Dorsett's and/or Naegele's
employment with Meridian is terminated upon mutual agreement of Dorsett or
Naegele, as the case may be, and Meridian, or if Dorsett or Naegele, as the case
may be, elect to resign, then the Earnout Consideration shall be paid to the
Stockholders (including Dorsett and Naegele) in accordance with Section 2. In
the event of Dorsett's or Naegele's, as the case may be, death or disability (as
defined in his respective employment agreement), then the Earnout Consideration
shall be paid to the Stockholders or, as applicable, pursuant to probate or
intestacy laws in accordance with Section 2. If both Dorsett and Naegle die or
become disabled then the Earnout Consideration shall be paid to the Stockholders
or, as applicable, pursuant to probate or intestacy laws in accordance with
Section 4(b) if such event occurs in Year 1, or 4(c) if such event occurs in
Year 2 through Year 6.

         5. ASSIGNMENT. All provisions contained in this Agreement shall extend
to and be binding upon the parties hereto or their respective successors and
permitted assigns whether such succession or assignment occurs by operation of
law or otherwise.

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         6. SIGNATURES. For purposes of this Agreement, facsimile signatures
shall be treated as original signatures and shall be binding upon the parties.
It is further agreed that the parties shall exchange original hard copies of
signature pages as soon as reasonably possible.

         7. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the internal substantive laws of Tennessee without giving effect
to any choice or conflict of law provision or rule, whether of Tennessee or any
other jurisdiction, that would cause or result in the application of the laws of
any jurisdiction other than Tennessee.

         8. SEVERABILITY. If any provision of this Agreement is held invalid or
unenforceable for any reason, the invalidity shall not affect the validity of
the remaining provisions of this Agreement, and the parties shall substitute for
the invalid provisions a valid provision which most closely approximates the
intent and economic effect of the invalid provision.

         9. ENTIRE AGREEMENT. This Agreement and the Merger Agreement, including
Exhibits to the Merger Agreement, sets forth all of the promises, agreements,
conditions and understandings between the parties respecting the subject matter
hereof and supersedes all negotiations, conversations, discussions,
correspondence, memorandums and agreements between the parties concerning the
subject matter. This Agreement may not be modified except by a writing signed by
authorized representatives of both parties to this Agreement. This Agreement may
be executed in any number of counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

         10. DISPUTE RESOLUTION.

             (a) Meridian will cause Arthur Andersen, L.L.P., Meridian's
auditors, to audit a calculation of the Earnout Consideration of the Company for
each Earnout Period. Arthur Andersen LLP shall have fifteen days after receipt
of the calculation of the Earnout Consideration ("Earnout Calculation") from
Meridian to review the Earnout Calculation and deliver to Meridian and the
Stockholders the Auditor's Report stating that the Earnout Calculation fairly
presents the Earnout Calculation for the respective Earnout Period in conformity
with this Agreement. If within ten days following delivery of the Earnout
Calculation, the Viral Stockholders have not given Meridian notice of their
objection to the Earnout Calculation (such notice must contain a detailed
statement of the basis of such objection), then the Earnout Calculation will be
used and the Earnout Consideration paid. If the Viral Stockholders give such
notice of objection, Meridian and the Viral Stockholders shall attempt in good
faith to resolve the matter or matters in dispute. If Meridian and the Viral
Stockholders, notwithstanding such good faith effort, shall have failed to
resolve the matter or matters in dispute within twenty Business Days after
receipt of the written notice of dispute, then any remaining disputed matters
shall be submitted to the Ernst & Young, L.L.P., or any successor thereto
("E&Y") for arbitration. Any such arbitration shall take place in, and shall be
in accordance with the Commercial Arbitration Rules in Tennessee. Each of
Meridian and the Viral Stockholders shall promptly file with E&Y a notice of
appointment. The fees and expenses of E&Y shall be borne fifty percent by
Meridian and fifty percent by the Viral Stockholders. In

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resolving any disputed item, E&Y may not assign a value to any particular item
more than the greatest value for such item claimed by either party or less than
the smallest value for such item claimed by either party in each case, as
presented to E&Y. The fees and disbursements of E&Y shall be allocated between
Meridian and the Seller based upon the percentage ratio that the sum of the net
amounts subject to dispute resolved against each of the parties bears to the
total of the net amounts subject to dispute. For this purpose, the "net amounts
subject to dispute" shall represent the difference between the amount of such
items as proposed by Meridian and the corresponding amount of such items
proposed by the Viral Stockholders, in each case as submitted to E&Y.

               (b) On the fifth Business Day following the date on which the
Earnout Consideration is established to in accordance with this Section 10, the
final determination of the Earnout Consideration shall be made, and Meridian
will pay the Earnout Consideration, if any.

               For purposes of complying with the terms set forth herein, each
party shall cooperate with and promptly make available to the other party and
E&Y and their representatives, all information, records, data, auditors' working
papers, and access to its personnel, shall permit access to its facilities and
shall permit the other party and its auditors and representatives to make copies
of all information, records, data and auditors' working papers, in each case as
may be reasonably required in connection with the analysis of the Earnout
Consideration and the resolution of any dispute(s) thereunder.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

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         IN WITNESS WHEREOF, the undersigned do hereby execute this Contingent
Earnout Agreement as of the day and year first above written.

                                   MERIDIAN DIAGNOSTICS, INC.

                                   BY:  /s/ William J. Motto
                                     ----------------------------------------

                                   Its: Chairman and Chief Executive Officer
                                        -------------------------------------

                                   STOCKHOLDERS:

                                   /s/ Preston H. Dorsett
                                   ------------------------------------------
                                   Preston H. Dorsett

                                   /s/ Karen C. Dorsett
                                   ------------------------------------------
                                   Karen C. Dorsett

                                   /s/ Robert F. Naegele
                                   ------------------------------------------
                                   Robert F. Naegele

                                   /s/ Ronald W. Kim
                                   ------------------------------------------
                                   Ronald W. Kim

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EXHIBIT A

Preston H. Dorsett and Karen C. Dorsett              51.6%
Robert F. Naegele                                    27.5%
Ronald W. Kim                                        20.9%EXHIBIT 10.13
                                 AGENCY CONTRACT

Between:

U.T.I.T. S.p.A., seated in Modena, Via L. Perosi, 183, personified by the legal
representative, Dr.ssa Nicoletta Ognibene (hereinafter called "the Principal")

And

SPEIZMAN INDUSTRIES, INC., seated in Charlotte, North Carolina, 701 Griffith
Road (hereinafter called "the Agent"):

IT IS AGREED AS FOLLOWS:

1.       TERRITORY AND PRODUCTS

         1.1      The Principal appoints the Agents, who accepts, as his
                  commercial agent to promote the sale of the products listed in
                  Annex I, ss.1 (hereinafter called "the Products") in the
                  territory defined in Annex I, ss.2 (hereinafter called "the
                  Territory").

         1.2      If the Principal decides to sell any additional products in
                  the Territory, he shall inform the Agent in order to discuss
                  the possibility of including them within the Products defined
                  under Article 1.1. Exception to this obligation is made for
                  products which:

                  a.  Will not be sold in the textile field;

                  b.  Do not match with the product lines already marketed by
                      the agent.

2.       GOOD FAITH AND FAIR DEALING

         2.1      In carrying out their obligations under this agreement the
                  parties will act in accordance with good faith and fair
                  dealing.

         2.2      The provisions of this agreement, as well as any statements
                  made by the parties in connection with this agency
                  relationship, shall be interpreted in good faith.

3.       AGENT'S FUNCTIONS

         3.1      The Agent agrees to use his best endeavors to promote the sale
                  of the Products in the Territory in accordance with the
                  Principal's reasonable instructions and shall protect the
                  Principal's interests with the diligence of a responsible
                  businessman.

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         3.2      The Agent shall not solicit orders from outside the Territory
                  unless permitted to do so by the Principal. Where the Agent
                  negotiates with customers in the Territory business which
                  results in contracts of sale with customers established
                  outside the Territory, Article 13.4. will be applied.

         3.3      Unless otherwise specifically agreed, the Agent has no
                  authority to make contracts on behalf of, or in any way to
                  bind, the Principal towards third parties. He only solicits
                  orders from customers for the Principal, who is free to accept
                  or to reject them.

         3.4      When negotiating with customers, the Agent shall offer
                  Products strictly in accordance with the term and conditions
                  of the contract of sale which the Principal has communicated
                  to him.

         3.5      The Agent binds himself to give his assistance for the
                  after-sale service too (included assembling and running test
                  of the plants), receiving possible observations, requests or
                  claims, and informing immediately the Principal and shall
                  participate to the arguments resolution and to reach friendly
                  agreements and reconciliation.

         3.6      The Agent is not entitled to receive payments on the
                  Principal's behalf without prior written authorization from
                  the Principal to that effect. When the Agent has been so
                  authorized, he must transmit them as soon as possible to the
                  Principal and until then hold them separately on deposit on
                  the Principal's behalf. The Agent is in no case supposed to
                  hold the above mentioned payments, even not as compensation of
                  eventual credits towards the Principal, unless differently
                  authorized by the Principal himself in written form.

4.       UNDERTAKING NOT TO COMPETE

         4.1      The Agent shall not represent, manufacture or distribute any
                  products which are in competition with the Products, for the
                  entire term of this contract and for six months after its
                  dissolution.

         4.2      The Agent may represent, distribute or manufacture any
                  products which are not competitive with the Products, provided
                  he informs the Principal in advance of such activity.

         4.3      The Agent shall not represent or distribute, directly or
                  indirectly, non-competitive products of a manufacturer who is
                  a competitor of the Principal: such obligation will be in
                  force for the entire term of this contract and for six months
                  after its dissolution.

         4.4      The Agent declares that he represents (and/or distributes or
                  manufactures, directly or indirectly) the products listed in
                  Annex III on the date on which this contract is signed.

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<PAGE>

5.       SALES ORGANIZATION, ADVERTISING AND FAIRS

         5.1      The Agent shall provide an adequate organization for sales and
                  after-sales service, with all necessary means and personnel,
                  in order to ensure the fulfillment of his obligations
                  throughout the Territory under this agreement.

                  In particular, the Agent will have to supply, at its costs, a
                  CAD engineer design person already familiar with drawing and
                  designing U.T.I.T. systems.

         5.2      The Agent will be responsible for promotion and sales, as well
                  as advertising of U.T.I.T's equipment in the Territory. It is
                  understood that the contents of any advertising must be
                  approved by the Principal beforehand. The parties shall agree
                  on their participation in fairs or exhibitions within the
                  Territory. The cost of the Agent's participation in such fairs
                  and exhibitions shall be apportioned between the parties as
                  specifically agreed each time.

         5.3      The Agent will make available, on his own cost, part of his
                  show room in Charlotte for displaying U.T.I.T. systems. The
                  cost of U.T.I.T. equipment displayed in the show room shall be
                  apportioned between the parties as specifically agreed.

6.       PRINCIPAL TO BE KEPT INFORMED

         6.1      The Agent shall exercise due diligence to keep the Principal
                  informed about his activities, market conditions and the state
                  of competition within the Territory. He shall answer
                  reasonable request for information made by the Principal.

         6.2      The Agent shall exercise due diligence to keep the Principal
                  informed about: (i) the laws and regulations which are to
                  apply in the Territory to which the Products must conform
                  (e.g. import regulations, labeling, technical specifications,
                  safety requirements, etc.), and (ii) the laws and regulations
                  concerning his activity, as far they are relevant for the
                  Principal.

7.       ADMINISTRATIVE AND COMMERCIAL SECRETS

         The Agent binds himself not to reveal to third parties administrative
         and commercial secrets or other confidential information he has learned
         in his activity for the Principal, neither after the dissolution of the
         present agreement, nor for the exploitation of such secrets or
         confidential information for purposes different from the ones of the
         present agreement.

8.       FINANCIAL RESPONSIBILITY

         8.1      The Agent shall satisfy himself, with due diligence, of the
                  solvency of customers whose orders he transmits to the
                  Principal. He shall not transmit orders from customers of
                  which he knows or ought to know that they are in a critical
                  financial

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<PAGE>
                  position, without informing the Principal in advance of such
                  fact.

         8.2     The Agent shall also use every possible influence to obtain
                 payments punctually from customers.

         8.3      The Agent shall assist the Principal for credit collection.

9.       PRINCIPAL'S TRADEMARKS AND SYMBOLS

         9.1      The Agent shall use the Principal's trademarks, trade names or
                  any other symbols, but for the only purpose of identifying and
                  advertising the Products, within the scope of this contract
                  and in the Principal's sole interest. However, the use of
                  trademarks, names and symbols of the Principal on the
                  letterhead sheet of the Agent, on advertising material and on
                  all materials delivered by the Agent to third parties, must be
                  authorized in advance by the Principal in written form.

         9.2      The Agent hereby agrees neither to register, nor to have
                  registered, any trademarks, trade names or symbols of the
                  Principal (or which are confusingly similar with the
                  Principal's ones), in the Territory or elsewhere.

         9.3      The right to use the Principal's trademarks, trade names or
                  symbols, as provided for under the first paragraph of this
                  article, shall cease immediately for the Agent, on the
                  expiration or termination of the present contract, whatever
                  the reason. After the expiration or termination of the present
                  contract, the Agent bind himself to avoid any reference to
                  third parties of the past relationship with the Principal, so
                  as to avoid any confusion with customers.

         9.4      The Agent shall notify the Principal of any infringement of
                  the Principal's trademarks, trade names or symbols that comes
                  to his notice.

10.      PATENT RIGHTS AND INFRINGEMENTS

         The Principal will obtain and maintain any patents, trademarks or other
         similar protection of the Products, and it will, at its own expense,
         protect such rights.

11.      EXCLUSIVITY

         11.1     The Principal shall not, during the life of this contract,
                  grant any other person or company with the Territory the right
                  to represent or sell the Products.

         11.2     The Principal reserves itself the right to supply the Products
                  through the spinning machinery manufacturers, in which case
                  the Agent will only be entitled half the commission. These
                  cases will be dealt with the following procedure: Upon receipt
                  of an inquiry from a machine maker, for a supply in the
                  U.S.A., the Principal will immediately contact the Agent to
                  check if the same inquiry has already been

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<PAGE>

                  submitted to it by the end user. In case a quotation has not
                  yet been submitted, the Principal reserves to itself the right
                  to decide whether to submit the quotation through the Agent or
                  directly through the machinery maker (turn key project
                  requested by the end user). The final decision will be taken
                  by the Principal and the Agent will accept it.

         11.3     Exception to what is stated at Paragraph 11.2 is made for the
                  sales made through the manufacturer Marzoli S.p.A., which will
                  generate no commissions for the Agent during the first eight
                  months following the date of coming into force of this
                  contract.

         11.4     The Principal is, however, entitled to deal directly, without
                  the Agent's intervention, (provided he informs the Agent) with
                  customers situated in the Territory; in respect of any sales
                  arising therefrom, the Agent shall be entitled to the
                  commission provided for in this contract.

         11.5     Regarding all Principal's products not included in Annex I
                  ss.1, the Principal shall be free to promote their sales,
                  directly or through other agents, commissioners, distributors,
                  concessionaires, or in any other way, and the Agent shall not
                  be entitled to any commission thereon.

12.      AGENT TO BE KEPT INFORMED

         12.1     The Principal shall provide the Agent with all necessary
                  written information relating to the Products (such as price
                  lists, brochures, videotapes etc.) as well as with the
                  information needed by the Agent for carrying out his
                  obligations under the contract.

         12.2     The Principal shall keep the Agent informed of any relevant
                  communication with customers in the Territory.

13.      AGENT'S COMMISSION

         13.1     The Agent is entitled to a commission of ten percent (10%), on
                  all sales of the Products to customers established in the
                  Territory during the validity of this contract.

         13.2     Sales of machinery other than those included in U.T.I.T.
                  product range (even if they are part of a U.T.I.T. system such
                  as: wrapping machines, weighing, labeling machines and so on)
                  only generate a commission of five percent (5%).

         13.3     In case of direct sales through textile machine manufacturers,
                  the Agent shall be entitled to half the commission, that is,
                  five percent (5%).

         13.4     If the Agent, when dealing with customers established in the
                  Territory, solicits orders resulting in contracts of sale with
                  customers established outside the Territory, and if the
                  Principal accepts such orders, the Agent shall be entitled to
                  receive a commission of five

                                                                               5
<PAGE>

                  percent (5%). Similarly, the Agent's commission shall be
                  reduced to five percent (5%) when another agent solicits with
                  customers established outside the Territory resulting in
                  contracts of sale with customers established within the
                  Territory.

         13.5     Both parties agree that in special cases and/or for special
                  customers and for contract prices less than the minimum
                  requested by the Principal, the commission amount shall be
                  discussed and agreed case by case. In case of discount given
                  beyond the minimum price requested by the Principal, the
                  commission due to the Agent shall be proportionally reduced.

                  (i.e.:   Minimum price          =    $500.000
                           Effective sale price   =    $400.000
                           Commission             =    $(40.000 - 20% = $32.000)

         13.6     Unless otherwise agreed in writing, the commission covers any
                  expenses incurred by the Agent in fulfilling his obligations
                  under this contract (such as telephone, telefax, office,
                  travel expenses, etc.)

14.      METHOD OF CALCULATING COMMISSION AND PAYMENT

         14.1     Commission shall be calculated on the net amount of the
                  invoices, i.e., on the effective sales FOB price (any discount
                  being deducted, clear of any additional charges such as
                  packing, erection, duty, transportation, insurance and clear
                  of all tariffs on taxes of any kind).

         14.2     The Agent shall acquire the right to commission after full
                  payment by the customer of the invoiced price. In case the
                  Principal is insured against the risk of non-payment by his
                  customers, the parties may agree that a commission be paid on
                  the sums obtained by the Principal from the insurer.

         14.3     If the Principal grants the customers particular price
                  reductions because of accepted quality defaults of the
                  Products, the commission due to the Agent shall be calculated
                  and settled only on the amount effectively paid by the
                  customer, therefore with the exclusion of the discount and
                  reduction.

         14.4     Any possible overprice is on Principal's favor, excepted
                  different written specific agreements for each single
                  business.

         14.5     The Principal will provide the Agent with a statement of the
                  commissions due in respect of each period of two months and
                  will set out all the business in respect of which such
                  commission is payable. The commission will be paid not later
                  than the last day of the month following the relevant period
                  of two months.

                                                                               6
<PAGE>

         14.6     Any taxes imposed on the Agent's commission in the Territory
                  are for the Agent's account.

15.      UNCONCLUDED BUSINESS

         15.1     No commission shall be due in respect of offers or orders
                  transmitted by the Agent and not accepted by the Principal.

         15.2     If a contract made by the Principal as a result of orders
                  transmitted by the Agent is not thereafter put into effect for
                  the whole or in part, the Agent shall not be entitled to
                  commission on the not executed part, unless non-performance of
                  the contract is due to a great non-fulfillment by the
                  Principal.

16.      TERM OF THE CONTRACT

         16.1     This contract enters in force on the date of signature and
                  shall remain in force for two years.

         16.2     This contract shall be automatically renewed for successive
                  periods of one year, unless terminated by either party by
                  notice given in writing by the registered mail with return
                  receipt, not less than four months before the date of
                  expiration. If the contract has lasted for more than five
                  years, the period of notice will be of 6 months.

17.      UNFINISHED BUSINESS

         17.1     Orders transmitted by the Agent or received by the Principal
                  from customers established in the Territory before the
                  expiration or termination of this contract and which result in
                  the conclusion of a contract of sale not more than 6 months
                  after such expiration, shall entitle the Agent to commission.

         17.2     No commission is due to the Agent for contracts of sale made
                  on the basis of orders received after the expiration of
                  termination of this contract, save if such transaction is
                  mainly attributable to the Agent's efforts during the period
                  covered by the agency contract and if the contract was entered
                  into within a reasonable period after the expiration or
                  termination of this contract. The Agent must however inform
                  the Principal in writing, before the expiration or termination
                  of this contract, of the pending negotiations which may give
                  rise to commission under this paragraph.

18.      EARLIER TERMINATION

         18.1     Each party may terminate this contract with immediate effect,
                  by notice given in registered mail with return receipt, in
                  case of a substantial breach of the obligations arising out of
                  the contract by the other party, or in case of exceptional
                  circumstances justifying the earlier termination.
                                                                               7
<PAGE>

         18.2     Any breach by a party of his obligations under the contract
                  resulting in such detriment to the other party as not to
                  permit him to continue the business relationship based on
                  mutual trust, shall be considered as a substantial breach for
                  the purpose of Article 18.1 above.

                  Circumstances in which it would be unreasonable to require the
                  terminating party to continue to be bound by this contract,
                  shall be considered as exceptional circumstances for the
                  purpose of Article 18.1 above.

         18.3     The parties hereby agree that the violation of the provisions
                  under Articles 4.1 - 4.3 - 7 - 9.1 - 9.2 and 9.4 of the
                  present contract is to be considered as a substantial breach
                  of the contract. Moreover, any violation of the contractual
                  obligations may be considered as a substantial breach, if such
                  violation is repeated notwithstanding a request by the other
                  party to fulfill the contract obligations.

         18.4     Furthermore, the parties agree that the following situations
                  shall be considered as exceptional circumstances which justify
                  the earlier termination by the other party:

                  Bankruptcy, moratorium, receivership, liquidation or any kind
                  of composition between the debtor and the creditors.

                  Civil and penal condemnation of the Agent which could damage
                  his well-known name;

                  Any other circumstances which are likely to affect
                  substantially one's party's ability to carry out his
                  obligations under contract.

         18.5     The contract may also be terminated by the Principal with
                  immediate effect in case of change of control, ownership
                  and/or management of the agent-company.

         18.6     If a party terminates the contract according to this article,
                  the Agent renounces from now on to claim indemnity for damages
                  by the Principal at any title.

19.      INDEMNITY IN CASE OF TERMINATION

         The Agent shall not be entitled to any indemnity for goodwill or
         similar compensation in case of termination of the contract under
         Articles 16 and 18.

20.      DISPOSITION IN CASE OF CONTRACT'S TERMINATION

         Upon expiration of this agreement, the Agent shall have to stop
         immediately his activities on behalf of the Principal, avoiding from
         assuming behaviors which might lead customers to mistaken or however to
         damage the Principal. The Agent shall also return to the Principal all
         advertising material and other documents and samples which have been
         supplied to him by

                                                                               8
<PAGE>
the Principal and are in the Agent's possession.

21.      ARBITRATION - APPLICATION LAW

         21.1     Any dispute arising out of or in connection with the present
                  contract shall be finally settled in accordance with the Rules
                  of Conciliation and Arbitration of the International Chamber
                  of Commerce by one or more arbitrators designated in
                  accordance to said Rules.

         21.2     This contract is governed by Italian Low.

22.      PREVIOUS AGREEMENTS - MODIFICATIONS -- NULLITY

         22.1     This contract replaces any other preceding agreement between
                  the parties on the subject.

         22.2     No addition or modification to this contract shall be valid
                  unless made in writing.

         22.3     The nullity of a particular clause of this contract shall not
                  involve the nullity of the whole agreement.

23.      PROHIBITION OF ASSIGNMENT

         The present contract cannot be assigned without prior written agreement
between the two parties.

24.      AUTOMATIC INCLUSION UNDER THIS PRESENT CONTRACT

         The annexes and the ADDENDUM attached to this contract and listed
         hereunder form an integral part of the agreement:

         Annex I:  the Products, the Territory.

         Annex II: considerations discussed with the Agent in the meeting held
         in Modena on December 1, 1999 and accepted by him as guidelines of his
         activity in the name of U.T.I.T.

         Annex III:  list of the products distributed or sold by the Agent at
         date of signature of this contract.

         ADDENDUM:  additional Agent's obligations.

                                                                               9
<PAGE>
25.      AUTHENTIC TEXT

         The English text of this contract is the only authentic text.

Made in Modena, Italy on the 22nd day of March, 2000.

The Principal                               The Agent

U.T.I.T. S.p.A.                             SPEIZMAN INDUSTRIES, INC.
Nicoletta Ognibene                          Bob Speizman

/s/ Nicoletta Ognibene                      /s/ Robert S. Speizman, President
----------------------                     -----------------------------------

In accordance with Article 1341 of the Italian Civil Code, the following
Articles of this contract are hereby specifically approved by the Agent:

4        (UNDERTAKING NOT TO COMPETE)

9        (PRINCIPAL'S TRADEMARKS AND SYMBOLS)

11       (EXCLUSIVITY)

18       (EARLIER TERMINATION)

19       INDEMNITY IN CASE OF TERMINATION)

21       (ARBITRATION - APPLICABLE LAW)

The Agent

SPEIZMAN INDUSTRIES, INC.
Bob Speiman

/s/ Robert S. Speizman, President
------------------------------------

                                                                              10
<PAGE>
ANNEX I:  Products and Territory
(Article 1.1)

ss. 1  Products:

TEXTILE FIELD

o   COTTON BALES transportation systems

o   CAN transportation systems:  - link between Draw Frames and Roving Frames
                                 - link between Draw Frames and O.E. Frames

o   COTTON AND WOOL ROVING BOBBIN transportation systems: - link between Roving
    Frames and Ring Frames

o   CONE transportation, palletizing, conditioning and packing systems: - cone
    originating from Cone Winding and O.E. Frames

o   FABRIC ROLLS palletizing systems

o   SPARE PARTS for the above mentioned systems

The Principal is free to promote the sales of all the products he produces,
which are not listed above, directly or through other agents, commissioner,
distributors, or in any other way, and the Agent shall not be entitled to any
commission.

ss. 2  Territory:

The Territory assigned to the Agent is:

o        U.S.A.
Canada

Modena, 22nd March 2000

The Principal                                  The Agent

U.T.I.T. S.p.A.                       SPEIZMAN INDUSTRIES, INC.
Nicoletta Ognibene                             Bob Speizman

/s/ Nicoletta Ognibene                /s/ Robert S. Speizman, President
------------------------              -----------------------------------
                                                                              11

<PAGE>

ANNEX II: considerations discussed with the Agent in the meeting held in Modena
on December 1st, 1999 and accepted by him as guidelines of his activity in the
name of U.T.I.T.

Real implication in promoting, selling and servicing automation

o    Sales
     Each and every quotation has to be tailored, customer is to be visited
     several times, prior to focus on his real needs and every visit brings
     about a new quotation, a process which is long and time consuming.

o    Erection and start up
     The start up of every installation is a very critical moment, only at this
     stage in fact, the automation put in place makes it evident shortcomings in
     the existing mill organization and the possibility to overcome them with
     the addition of new automation. This gives normally start to discussions in
     which the customers tend to pretend the supply of this additional
     automation free of charge, as a necessary completion of the contracted
     installation.
     This phase needs a lot of visits, a lot of competence and patience to
     convince customers that what has been supplied is what has been contracted
     and paid.

o    After sales
     After start up, customers have to be constantly supported till when they
     know perfectly how to use and troubleshoot the installation.

Modena, 22nd March 2000

The Principal                                 The Agent

U.T.I.T. S.p.A.                               SPEIZMAN INDUSTRIES, INC.
Nicoletta Ognibene                            Bob Speizman

/s/ Nicoletta Ognibene                        /s/ Robert S. Speizman, President
---------------------------------             ---------------------------------

                                                                              12
<PAGE>
The Agent hereby declares that he represents (and/or distributes or
manufactures) the following products, directly or indirectly, at the time of the
conclusion of the present contract:

 ------------------------------------------ ----------------------------------
                 Principal                                 Products
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Lonati Group                               Knitting machines and accessories
 (Dinema, Santoni, Lonati, MCM, Marzoli,
 Vignoni)
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Conti Complett                             Seamers
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Fimatex                                    Turning devices
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Margasa                                    Reclaiming machines
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Italtubetti                                Tubes
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Platt                                      Flats
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Carresi                                    Pillow stuffers
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Cason                                      Yarn bobbin stripper
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Shanghai Erfrinji                          Spinning machines, etc.
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 China Textile Machinery                    Looms
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Milnor                                     Laundry machines
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Chicago Dryer                              Laundry folders & presses
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 ADC                                        Dryers
 ------------------------------------------ ----------------------------------
 ------------------------------------------ ----------------------------------
 Energenitics                               Laundry machines
 ------------------------------------------ ----------------------------------

The Agent

SPEIZMAN INDUSTRIES, INC.
Bob Speiman

/s/ Robert S. Speizman, President
-----------------------------------
                                                                              13
<PAGE>

                                 AGENCY CONTRACT

                                    ADDENDUM

Between:

U.T.I.T. S.p.A., seated in Modena, Via L. Perosi, 183, personified by the legal
representative, Dr. ssa Nicoletta Ognibene (the Preponent)

And

SPEIZMAN INDUSTRIES, INC., seated in Charlotte, North Carolina, 701 Griffith
Road (the Agent):

As integration of the Agency Contract stipulated on this day, it is agreed as
follows:

1.   The Agent recognizes the long time commercial cooperative relationship
     between U.T.I.T. and Marzoli S.p.A. in the U.S. market, which provides for
     the selling of certain U.T.I.T. textile transport systems by Marzoli.
     Considering that the punctual prosecution of that relationship has a
     particular importance for U.T.I.T. , the Agent binds himself to abstain
     from any action or behavior which could jeopardize the normal course of
     such a relationship. The non-observance of that obligation will constitute
     good cause for the early termination of the Agency Contract, according to
     article 18.2;

2.   The Agent undertakes to furnish at his own cost a deposit of U.T.I.T.
     equipment spare parts, and to resell those spare parts to customers who ask
     for them at the price U.T.I.T. fixes. U.T.I.T. gives the Agent the sole
     spare parts selling right, with the exclusion of those which will be sold
     directly by U.T.I.T. to the textile machinery manufacturers, such as
     Marzoli, Rieter and so on. The Agent expressly binds himself not to sell
     any spare parts for U.T.I.T. equipment which aren't manufactured by
     U.T.I.T. and deposited by U.T.I.T. at the Agent to be resold. Violation of
     the above obligation will bring about the early termination of the Agency
     Contract according to article 18.2;

To integrate and explain those matters provided for in article 5.2 of the Agency
Contract, it is agreed that every kind of U.T.I.T. Product advertising will be
based on U.T.I.T. photos and logo. U.T.I.T. reserves the right to get published
adverts in textile magazine, on its own initiative and at its own cost, and/or
to carry out other advertising initiatives at its own cost, in every case making
it clear that the Agent has exclusive rights of sale in the sales area
specified.

The Principal                          The Agent

/s/ Nicoletta Ognibene                 /s/ Robert S. Speizman, President
------------------------------         ---------------------------------

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