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EXHIBIT 10.6
INTERCORPORATE SERVICES AGREEMENT
This INTERCORPORATE SERVICES AGREEMENT (the "Agreement"), effective as
of January 1, 1997, amends and supersedes that certain Intercorporate Services
Agreement effective as of January 1, 1996 between CONTRAN CORPORATION, a
Delaware corporation ("Contran"), and TREMONT CORPORATION, a Delaware
corporation. ("Recipient").
Recitals
A. Employees and agents of Contran and affiliates of Contran,
including Xxxxxx X. Xxxxxxx, perform management, financial and administrative
functions for Recipient without direct compensation from Recipient.
B. Recipient does not separately maintain the full internal
capability to perform all necessary management, financial and administrative
functions that Recipient requires.
C. The cost of maintaining the additional personnel by Recipient
necessary to perform the functions provided for by this Agreement would exceed
the fee set forth in Section 3 of this Agreement and that the terms of this
Agreement are no less favorable to Recipient than could otherwise be obtained
from a third party for comparable services.
D. Recipient desires to continue receiving the management,
financial and administrative services presently provided by Contran and
affiliates of Contran and Contran is willing to continue to provide such
services under the terms of this Agreement.
Agreement
For and in consideration of the mutual premises, representations and
covenants herein contained, the parties hereto mutually agree as follows:
SECTION 1. SERVICES TO BE PROVIDED. Contran agrees to make available
to Recipient, upon request, the following services (the "Services") to be
rendered by the internal staff of Contran and affiliates of Contran:
(a) Consultation and assistance in the development and
implementation of Recipient's corporate business strategies, plans and
objectives;
(b) Consultation and assistance in management and conduct
of corporate affairs and corporate governance consistent with the
charter and bylaws of Recipient;
(c) Consultation and assistance in maintenance of
financial records and controls, including preparation and review of
periodic financial statements and reports to be filed with public and
regulatory entities and those required
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to be prepared for financial institutions or pursuant to indentures
and credit agreements;
(d) Consultation and assistance in cash management and in
arranging financing necessary to implement the business plans of
Recipient;
(e) Consultation and assistance in tax management and
administration, including, without limitation, preparation and filing
of tax returns, tax reporting, examinations by government authorities
and tax planning; and
(f) Such other services as may be requested by Recipient
from time to time.
SECTION 2. MISCELLANEOUS SERVICES. It is the intent of the parties
hereto that Contran provide only the Services requested by Recipient in
connection with routine management, financial and administrative functions
related to the ongoing operations of Recipient and not with respect to special
projects, including corporate investments, acquisitions and divestitures. The
parties hereto contemplate that the Services rendered in connection with the
conduct of Recipient's business will be on a scale compared to that existing on
the effective date of this Agreement, adjusted for internal corporate growth or
contraction, but not for major corporate acquisitions or divestitures, and that
adjustments may be required to the terms of this Agreement in the event of such
major corporate acquisitions, divestitures or special projects. Recipient will
continue to bear all other costs required for outside services including, but
not limited to, the outside services of attorneys, auditors, trustees,
consultants, transfer agents and registrars, and it is expressly understood
that Contran assumes no liability for any expenses or services other than those
stated in Section 1. In addition to the fee paid to Contran by Recipient for
the Services provided pursuant to this Agreement, Recipient will pay to Contran
the amount of out-of-pocket costs incurred by Contran in rendering such
Services.
SECTION 3. FEE FOR SERVICES. Recipient agrees to pay to Contran
$135,000.00 quarterly, commencing as of January 1, 1997, pursuant to this
Agreement.
SECTION 4. ORIGINAL TERM. Subject to the provisions of Section 5
hereof, the original term of this Agreement shall be from January 1, 1997 to
December 31, 1997.
SECTION 5. EXTENSIONS. This Agreement shall be extended on a
quarter-to-quarter basis after the expiration of its original term unless
written notification is given by Contran or Recipient thirty (30) days in
advance of the first day of each successive quarter or unless it is superseded
by a subsequent written agreement of the parties hereto.
SECTION 6. LIMITATION OF LIABILITY. In providing its
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Services hereunder, Contran shall have a duty to act, and to cause its agents
to act, in a reasonably prudent manner, but neither Contran nor any officer,
director, employee or agent of Contran or its affiliates shall be liable to
Recipient for any error of judgment or mistake of law or for any loss incurred
by Recipient in connection with the matter to which this Agreement relates,
except a loss resulting from willful misfeasance, bad faith or gross negligence
on the part of Contran.
SECTION 7. INDEMNIFICATION OF CONTRAN BY RECIPIENT. Recipient shall
indemnify and hold harmless Contran, its affiliates and their respective
officers, directors and employees from and against any and all losses,
liabilities, claims, damages, costs and expenses (including attorneys' fees and
other expenses of litigation) to which Contran may become subject arising out
of the Services provided by Contran to the Recipient hereunder, provided that
such indemnity shall not protect any person against any liability to which such
person would otherwise be subject by reason of willful misfeasance, bad faith
or gross negligence on the part of such person.
SECTION 8. FURTHER ASSURANCES. Each of the parties will make,
execute, acknowledge and deliver such other instruments and documents, and take
all such other actions, as the other party may reasonably request and as may
reasonably be required in order to effectuate the purposes of this Agreement
and to carry out the terms hereof.
SECTION 9. NOTICES. All communications hereunder shall be in writing
and shall be addressed, if intended for Contran, to Three Lincoln Centre, 0000
XXX Xxxxxxx, Xxxxx 0000, Xxxxxx, Xxxxx 00000, Attention: President, or such
other address as it shall have furnished to Recipient in writing, and if
intended for Recipient, to 0000 Xxxxxxxx, Xxxxx 0000, Xxxxxx, Xxxxxxxx 00000,
Attention: President, or such other address as it shall have furnished to
Contran in writing.
SECTION 10. AMENDMENT AND MODIFICATION. Neither this Agreement nor
any term hereof may be changed, waived, discharged or terminated other than by
agreement in writing signed by the parties hereto.
SECTION 11. SUCCESSOR AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of Contran and Recipient and their respective
successors and assigns, except that neither party may assign its rights under
this Agreement without the prior written consent of the other party.
SECTION 12. GOVERNING LAW. This Agreement shall be governed by, and
construed and interpreted in accordance with, the laws of the State of Texas.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered as of the date first
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above written.
CONTRAN CORPORATION
By: /s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx, Vice President
TREMONT CORPORATION
By: /s/ J. Xxxxxx Xxxxxx
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J. Xxxxxx Xxxxxx, Chairman of
the Board, President and
Chief Executive Officer
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