EXHIBIT 10.4
AGREEMENT CONCERNING RETAIL NOTES
Deere & Company ("Deere") and Xxxx Deere Credit Company ("Credit Company")
agree as follows:
1. EFFECTIVE DATE. The effective date of this Agreement shall be January
26, 1983, superseding all previous agreements between the parties covering the
same matter.
2. CONTRACTS BETWEEN CREDIT COMPANY AND SALES COMPANIES. Deere and
Deere's United States agricultural equipment sales branch and industrial
equipment regional subsidiaries (hereinafter "Sales Companies") have entered
into contracts with the Credit Company governing the sale of retail installment
sale and loan contracts (collectively "retail notes") by the respective branches
of the Sales Companies (collectively "sales branches") to the Credit Company,
setting out the assignment price at which retail notes may be acquired by the
Credit Company, providing that all moneys payable between the Sales Companies
and the Credit Company shall be paid to Deere for the account of the party
entitled to payment.
3. MONTHLY SETTLEMENT STATEMENTS. As soon as practicable after the close
of each month, Deere shall present to the Credit Company a definitive settlement
statement of all transactions, of all amounts becoming due and payable, and of
the closing balance of the Credit Company's account with Deere, through and as
of the close of such month.
4. PAYMENTS AND BORROWING IN SETTLEMENT. The debit balance of each
monthly settlement statement is payable immediately upon presentation by the
Credit Company to Deere or by Deere to the Credit Company. Any unpaid balance
shall constitute a demand borrowing bearing interest at the 30-59 day
directly-placed commercial paper rate as of the 15th day of the month then
ended plus a service fee mutually agreed upon by the Companies (of 1/2% per
month until otherwise agreed upon).
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5. PAYMENT OF AMOUNTS COLLECTED. Failure or delay by the Sales Companies
in remitting to Deere amounts due the Credit Company shall not relieve Deere of
its obligation to settle with the Credit Company for all collections by the
Sales Companies.
6. DEMAND FOR PROCEEDS. The Credit Company may at any time take
immediate possession of all cash and other proceeds held for it by Deere, and
Deere agrees to surrender the same on demand.
7. SERVICES TO BE PERFORMED BY DEERE. Deere agrees, upon request of the
Credit Company, to provide the Credit Company with such reports as have been
prepared upon such audits of the sales branches as have been performed by
Deere's internal audit staff and by its independent auditors, and, at the
convenience of Deere and the Credit Company, to perform periodic internal audit
programs, of a nature and scope agreed upon between the Credit Company and
Deere, including confirmation of retail notes by direct contact with
representative numbers of retail note debtors.
8. INSPECTIONS. Deere agrees that Credit Company employees or other
persons designated by the Credit Company may make all such reasonable
inspections during business hours of the books and records of Deere relating to
this agreement as the Credit Company shall reasonably deem necessary. Deere
further agrees that the Credit Company may make periodic confirmation of retail
notes by direct contact with debtors, and that such periodic confirmation may be
made either by employees of the Credit Company or through such other persons as
it may direct.
9. TERMINATION. this contract is terminable on 30 days' written notice
by either party.
Signed as of this 26th day of January, 1983.
XXXX DEERE CREDIT COMPANY DEERE & COMPANY
By /s/ K.B. Xxxxx By /s/ X. X. Xxxxxxx
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VICE PRESIDENT VICE PRESIDENT
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