Exhibit 10.16
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THE KELLY-SPRINGFIELD TIRE COMPANY
(XXXXX)
AND
TBC CORPORATION
(TBC)
10-YEAR COMMITMENT
This Commitment, made this 21st day of March, 1994, by and between THE
KELLY-SPRINGFIELD TIRE COMPANY, a Maryland corporation (hereinafter called
"Xxxxx"), and TBC CORPORATION, a Delaware corporation, of Memphis, Tennessee
(hereinafter called "TBC"), WITNESSETH:
Xxxxx has been supplying tires to TBC and TBC has been purchasing tires
from Xxxxx since 1963.
Xxxxx and TBC now desire to strengthen their business relationship by
pledging continued support to each other for the next 10 years as they look
ahead to the 21st century and to new growth and strong leadership in the custom
brands segment of the replacement tire industry.
As a long-term reliable supplier, Xxxxx pledges the following levels of
support to TBC over the next 10 years: The assignment of a tire engineer to work
closely with TBC's purchasing and engineering group to provide TBC with the
latest and most innovative technology; continued high levels of inventory
availability through the joint pursuit of advanced methods to determine the most
accurate and efficient production and inventory levels required to meet current
and future demand; and exchange of such marketing information which will allow
both companies to achieve the highest levels of service to each other in all
areas of their individual operations.
As a long-term reliable customer, TBC pledges over the next 10 years
continued loyalty in its purchases of products manufactured by Xxxxx as these
business partners strive to provide state-of-the-art tire products to their
customers, current and new, both in the United States and abroad, as they carry
the replacement tire market into the 21st century and beyond as leaders in the
industry.
While this commitment is subject to the changing needs of both business
partners and to the changing needs of the replacement tire market, and to the
terms and provisions of the parties' October 1, 1977 Supply Agreement, Xxxxx and
TBC agree to a long-term pledge of cooperation and teamwork as they strive to
build and grow their own companies and the entire custom brands market in the
replacement tire industry.
THE KELLY-SPRINGFIELD TIRE COMPANY
By /s/ Xxx X. Xxxxxxx
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TBC CORPORATION
By /s/ Xxxxxx X. Xxxxx
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