EXHIBIT 10.17
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AGREEMENT
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THIS AGREEMENT made at Findlay, Ohio and effective as of January 1,
1994, by and between TBC CORPORATION, a Delaware corporation, with its principal
offices located at 0000 Xxxxxxx Xxxx, Xxxxxxx, Xxxxxxxxx 00000 (hereinafter
called "TBC") and XXXXXX TIRE & RUBBER COMPANY, a Delaware corporation, with its
principal offices located at Lima & Xxxxxxx Xxxxxxx, Xxxxxxx, Xxxx 00000
(hereinafter called "COOPER").
WITNESSETH:
In consideration of the mutual promises and covenants hereinafter set
forth, the parties agree as follows:
1. QUANTITY
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XXXXXX agrees to manufacture and sell, upon the terms and subject to
the conditions hereof, and to make shipments as provided hereinafter, and TBC
agrees to purchase passenger, light truck and medium truck tires bearing brand
names owned and/or controlled by TBC and generic brands as offered by COOPER
(individually "Passenger Tire(s)", "Light Truck Tire(s)" or "Medium Track
Tire(s)", as the case may be, and collectively "Tire(s)") and inner tubes
("Tubes"), in such sizes, types and quantities as agreed to by the parties.
2. MOLDS
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TBC will furnish all molds, plates and rings required for the
production of Tires, unless otherwise agreed to in writing. Cooper will furnish
all mold equipment required to produce Tubes.
TBC shall be responsible for all costs involved in mold preparation or
modification, in those molds owned by TBC, necessary to comply with government
laws, rules, standards and regulations.
XXXXXX shall keep all molds, rings and plates in good operating
condition, normal wear and tear excepted. XXXXXX shall be responsible only for
its negligence in the use and handling of said molds, rings and plates. XXXXXX
shall insure all molds, rings and plates against loss by fire, lightning and
perils covered by extended coverage insurance and endorsements.
3. FORECASTS, PRODUCTION ORDERS, PRODUCTION AND SHIPMENT
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REPORTS
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Any required Tire forecasts, production orders, production and shipment
reports shall be in accordance with the provisions of an operating procedure as
agreed upon between the parties from time to time.
The following operating procedures will be followed unless otherwise
agreed to in writing:
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TBC and XXXXXX shall agree no later than the 1st day of September of
each year during the life of this Agreement what TBC's estimated production
requirements forecast will be, by size and type, for the subsequent year.
In addition to the above annual estimated production requirements
forecast, TBC will provide XXXXXX with a ninety (90) day production requirements
forecast by size and type, acceptable to COOPER, updated monthly, by the 12th
day of each month.
It is agreed TBC will purchase all winter Passenger Tires for which TBC
requests production and further all said Tires will be purchased prior to
December 15 of each calendar year. Should any of said Tires remain in XXXXXX'x
inventory for which there are no instructions for shipment prior to December 31,
TBC agrees to accept transfer of title and related invoices during December and
to pay such invoices when due.
4. PRICE
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XXXXXX'x billing prices to TBC for Tires and Tubes sold and purchased
hereunder will be established by COOPER prior to the beginning of each calendar
quarter during the life of this Agreement and will be firm for that quarter.
XXXXXX will notify TBC of any changes in billing prices thirty (30) days prior
to the start of such quarter. Exhibit A is a listing of billing prices in effect
on January 1, 1994.
From time to time, it may be in the best interests of both parties to
forgo a price revision at the start of a calendar quarter. In such an event,
XXXXXX reserves the right to revise prices once, at any time during said
quarter, upon thirty (30) days prior written notice to TBC.
Notwithstanding the above, XXXXXX'x billing prices to TBC for winter
Passenger Tires sold and purchased hereunder will be established by COOPER and
will be firm for the period of May 15 - December 15 of each calendar year during
the life of this Agreement; provided, however, during any other period of the
Agreement, XXXXXX may change the billing prices to TBC.
5. PAYMENT TERMS
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TBC agrees to pay COOPER the net billing price for all Tires and Tubes
purchased hereunder within sixty (60) days of the date of invoice. Anticipation
discounts will be allowed on advanced payments computed using (i) a variable
daily rate based on the prime interest rate as quoted in The Wall Street Journal
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plus one and one-half percent (1.5%), (ii) the amount prepaid, and (iii) the
number of days paid in advance as determined by date of receipt of funds by
XXXXXX.
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6. FREIGHT
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All shipments are F.O.B. XXXXXX'x factory warehouses, freight collect.
All shipments will be in full truckloads and full pallet quantities.
7. SPECIFICATIONS
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All specifications used by COOPER in Tires and Tubes shall be the same
or equivalent to the specifications used by COOPER in the manufacture of the
same sizes and types of tires and inner tubes bearing COOPER-owned or controlled
trademarks, unless otherwise agreed in writing between the parties hereto.
COOPER agrees it will notify TBC in writing of the following:
(a) Any change in any specification for Tires and/or Tubes
furnished hereunder which will be, in the sole opinion of
COOPER, a significant specification change; and,
(b) Any change in any specification for Tires and/or Tubes
furnished hereunder which will, in the sole opinion of COOPER,
significantly affect the cost or performance of any of the
Tires and/or Tubes being furnished hereunder.
8. BLEMISHED TIRES
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TBC will purchase from COOPER those Blemished Tires which are raised
letter Blemished Tires, and TBC shall have the right and option to purchase any
other Blemished Tires resulting from the manufacture of Tires for TBC pursuant
to this Agreement. Such Blemished Tires shall meet XXXXXX'x established
blemished specifications approved by TBC which approval shall not be
unreasonably withheld. The price for such Blemished Tires shall be discounted
twenty-five percent (25%).
TBC shall not be obligated to purchase (i) nonuniform Tires, (ii)
tubeless Tires when downgraded from tubeless to tube-type, or (iii) Blemished
Tires for which the blemished specifications are not approved by TBC, as
provided above. TBC-owned or controlled brand names or identification, excepting
the Department of Transportation Identification Number, shall be removed from
such downgraded Tires prior to being sold or disposed of by COOPER.
Notwithstanding the above, in the event TBC should refuse to purchase
any raised letter Blemished Tires for which TBC has approved the Blemished
specifications, COOPER shall have the right to sell such Blemished Tires without
removing the raised letters, provided all other TBC trademarks or other
identification, except the Department of Transportation Identification Number,
are removed from such raised letter Blemished Tires.
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9. ADJUSTMENTS
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EXCEPT AS SET FORTH HEREIN, COOPER MAKES NO OTHER WARRANTIES, EXPRESS,
IMPLIED OR STATUTORY, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL XXXXXX BE LIABLE TO TBC ON A
CLAIM OF ANY KIND FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING
WITHOUT LIMITATIONS, LOSS OF ANTICIPATED PROFITS, OR DAMAGE TO BUSINESS
REPUTATION.
(a) Definitions
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(i) Adjustable Tires
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Adjustable Tires shall mean those Tires which have
been placed in service and are adjustable in
accordance with XXXXXX'x standard practice for
adjusting tires.
(ii) New Adjustable Tires
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New Adjustable Tires shall mean any
COOPER-manufactured and/or sold Tire (excepting all
steel Light Truck and Medium Radial Truck Tires) with
two-thirty-seconds inch (2/32nds") or less tread wear
and is adjustable in accordance with XXXXXX'x
standard practice for adjusting tires. With respect
to all steel Light Truck and Medium Radial Truck
Tires, a New Adjustable Tire shall mean any
COOPER-manufactured and/or sold all steel Light Truck
and Medium Radial Truck Tire with one-thirty seconds
(1/32nds") or less tread wear and is adjustable in
accordance with XXXXXX'x standard practice for
adjusting tires.
(iii) Adjustable Tubes
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Adjustable Tubes shall mean those Tubes which are
adjustable in accordance with XXXXXX'x standard
practice for adjusting inner tubes.
(b) Adjustment Practice
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TBC will adjust, initially at its expense, all Tires and Tubes
sold hereunder.
(c) Adjustment Verification
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TBC's customers shall return all Adjustable Tires and Tubes to
locations specified by COOPER to be examined by XXXXXX'x adjustor.
Any shipment of Adjustable Tires by a TBC customer to COOPER
in quantities weighing less than one thousand (1,000) pounds shall be
freight
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prepaid. TBC will advise its customers to make all such shipments
freight prepaid. The freight expense for any shipment of less
than one thousand (1,000) pounds, if sent freight collect will be
charged to TBC. All shipments of Adjustable Tires in quantities
weighing one thousand (1,000) pounds or more may be shipped freight
collect, and the freight expense for such shipments will be borne and
paid for by XXXXXX.
Freight on shipments of Adjustable Tubes will be determined as
follows: If the Adjustable Tubes are included in a shipment of
Adjustable Tires, the provisions of the prior paragraph will apply. If
the shipment consists entirely of Adjustable Tubes, it will be accepted
freight collect but the customer will be charged back for freight costs
as follows:
Weight of Adjustable Tube Shipment Freight Chargeback
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1,000 pounds or more None
500 to 1,000 pounds 50%
200 to 499 pounds 75%
under 200 pounds 100%
After verification by COOPER of the adjustable condition, TBC
shall be reimbursed in accordance with Subsection (d) below.
Adjustable Tires and/or Adjustable Tubes shall become XXXXXX'x
property, after verification of the adjustable condition, for
reclassification and disposition.
Such Adjustable Tires shall be reclassified by COOPER as
either being scrap tires or used tires. Upon such reclassification
COOPER shall:
(i) Render those Adjustable Tires or Tubes reclassified
to scrap tires or tubes unusable prior to
disposition; and
(ii) Brand those Adjustable Tires reclassified to "used
tire nonadjustable" prior to resale.
(iii) Allow to TBC a salable value, determined by COOPER,
for those tires reclassified to "used tire
nonadjustable."
New Adjustable Tires shall be returned by TBC's customers to COOPER
freight collect to a location specified by COOPER.
New Adjustable Tires shall become XXXXXX'x property after verification
of the adjustable condition. If such New Adjustable Tires are resold by COOPER
to someone other than TBC, COOPER shall remove all TBC identification from such
New
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Adjustable Tires except any brand name owner designation in the Department of
Transportation's identification number.
(d) Reimbursement
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(i) Adjustable Tires
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For each annual production period (calendar year),
COOPER agrees to reimburse TBC for Adjustable Tires
manufactured and sold by COOPER to TBC and which are
submitted to COOPER for verification of the
adjustable condition within twenty-four (24) months
from the end of the calendar year of manufacture as
follows:
Large Bias and Radial Truck Tires (20" and
larger) - any adjusted over and above a four
percent (4%) cumulative unit adjustment
level for all such Large Truck Tires.
All Passenger Car and Light Truck Tires
(Highway and Snow) - any adjusted over and
above a two percent (2%) cumulative unit
adjustment level for all such Passenger Car
and Light Truck Tires.
COOPER's reimbursement to TBC for a Tire adjusted
over and above the cumulative unit adjustment level
will be based upon the annual average price
(excluding any applicable Federal Excise Tax) to TBC
for such Tire during the production year in which the
Tire was produced times the percentage of treadwear
(nonskid) remaining.
Tires are considered one hundred percent (100%) worn
when the tread depth remaining is two-thirty-seconds
inch (2/32") or less and no reimbursement shall be
made for such Tires.
XXXXXX shall provide TBC on a quarterly basis the
results of XXXXXX'x adjustment verification in a form
mutually agreeable to both parties.
(ii) New Adjustable Tires
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XXXXXX agrees to reimburse TBC, after verification by
COOPER of the adjustable condition, in full for all
New Adjustable Tires returned to locations designated
by COOPER, freight collect; provided, however, any
applicable Federal Excise Tax will be refunded
only on New Adjustable Tires which have vent marks on
the face of the tread.
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(iii) Adjustable Tubes
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Cooper agrees to reimburse TBC, after verification by
Xxxxxx of the adjustable condition, in full for all
Adjustable Tubes returned to locations designated by
Xxxxxx.
(e) Road Hazards
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It is expressly understood XXXXXX at no time shall have any
obligation for Road Hazard adjustments, or for any of those conditions
or circumstances which have historically been considered as a basis for
Road Hazard adjustments.
(f) Adjustments After Termination
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In the event this Agreement is terminated for any reason, then
COOPER shall thenceforth continue its above described and limited
responsibility for adjustments of Adjustable Tires, New Adjustable
Tires and Adjustable Tubes, but only for a period of thirty (30) months
from and after the effective date of termination of this Agreement.
Notwithstanding any other term or condition contained herein, after
said thirty (30) month period, XXXXXX shall have no further liability
or responsibility for any adjustment expenses or costs of any kind or
nature whatsoever other than product liability as set forth in
Paragraph 12. "Product Liability."
(g) No Admission
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It is expressly understood and agreed any reimbursement by
XXXXXX, pursuant to the foregoing, shall not in any way be determined
or construed as an admission or indication on the part of COOPER, or
any other party, that said Tire or Tube is, in fact, either defective
in workmanship and/or material, of poor or unmerchantable quality, or
in any way unfit for the use for which it was intended.
10. UNIFORM TIRE QUALITY GRADING, CONSUMER TIRE REGISTRATION
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AND DEFECT AND NONCOMPLIANCE REPORTS
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COOPER will perform Uniform Tire Quality Grading tests for Passenger
Tires and provide TBC the results thereof in order to mutually determine and
assign Uniform Tire Quality Grades for each size and type of Passenger Tire. TBC
recognizes and agrees to perform its responsibilities under 49 CFR 575.6
including, but not limited to, submission of grading information to the National
Highway Traffic Safety Administration and the distribution of grading
information to consumers.
Consumer tire registration procedures will be handled by TBC and, in
the event of a recall pursuant to Section 11., XXXXXX agrees to assume and
perform
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any and all responsibilities of TBC under 49 CFR 573 ( "Defect and
Noncompliance Reports"), provided TBC shall:
(a) maintain lists of purchasers;
(b) jointly report with XXXXXX defects per agreement, pursuant to
Subsection 11.1(b), to the National Highway Traffic Safety
Administration;
(c) jointly report with XXXXXX nonconformities per agreement,
pursuant to Subsection 11.1(b), to motor vehicle safety
standards to the National Highway Traffic Safety
Administration;
(d) provide XXXXXX with quarterly reports on defect and
noncompliance notification campaigns for filing with the
National Highway Traffic Safety Administration; and
(e) provide XXXXXX with copies of communications with
distributors, dealers and purchasers regarding defects and
noncompliance for filing with the National Highway Traffic
Safety Administration.
TBC agrees to assume and perform any and all responsibilities of TBC
and XXXXXX under 49 CFR 577 ("Defect and Noncompliance Notification"),
including, but not limited to, notifying purchasers and owners of defective and
noncomplying Tires provided, however, COOPER shall provide to TBC a proposed
form of the notice to be given and the parties shall agree as to the final form
of such notice.
11. RECALL
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11.1 Without affecting any other provision herein, COOPER agrees, in
accordance with Subsection 11.2, to replace for TBC, or reimburse TBC, for all
new and used Tires, including Blemished Tires, which COOPER has manufactured and
supplied to TBC under this Agreement which are:
(a) recalled, either in accordance with:
(i) an order of the Department of Transportation or the
National Highway Traffic Safety Administration
validly issued under the provisions of the National
Traffic and Motor Vehicle Safety Act of 1966, as
amended; or
(ii) any state law; or
(b) recalled per agreement between the parties hereto which are
defective in a way relating to motor vehicle safety or which
fail to conform with the National Traffic and Motor Vehicle
Safety Act of 1966, as amended, which agreement shall not be
unreasonably withheld by either party.
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11.2 In the event of a recall, as set forth above, for those recalled
Tires returned to COOPER by TBC, COOPER, at its option, shall either:
(a) replace the recalled Tires freight prepaid with identical or
reasonably equivalent tires; or
(b) pay TBC the total replacement price including freight for the
Tires, plus any transportation expense necessary to return the
recalled Tires from TBC locations to COOPER-designated
locations.
11.3 In the event of a recall referred to in Subsection 11.1, COOPER
shall, in the case of Tires which have been placed in service by consumers and
returned as a result of the recall, pay six dollars ($6.00) per Tire replaced to
cover mounting and balancing expense.
11.4 This Section 11. of this Agreement shall continue in effect
following the termination of this Agreement so long as Tires made under this
Agreement are subject to the recall provisions of any applicable state or
Federal law.
12. PRODUCT LIABILITY
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XXXXXX agrees to hold harmless and indemnify TBC and undertake TBC's
defense from and against all claims, demands, losses, expenses, damages,
recoveries and settlements approved by XXXXXX or judgments (including attorneys'
fees) for death, personal injury or property damage arising or alleged to have
arisen from or attributable to any defect in workmanship and/or material or
COOPER design of any Tires or Tubes supplied by COOPER to TBC.
TBC agrees to hold harmless and indemnify COOPER and undertake XXXXXX'x
defense from and against all claims, demands, losses, expenses, damages,
recoveries and settlements approved by TBC, or judgments (including attorneys'
fees) for death, personal injury or property damage arising, or alleged to have
arisen from, or attributable to:
(a) the negligence of TBC or any of its agents, servants or
employees in connection with any Tires or Tubes supplied by
COOPER to TBC;
(b) any failure to provide appropriate and adequate user
instructions, installation instructions, labeling (excluding
any labeling required to be placed on Tires by statute and/or
regulation of the United States or any state therein) or
warning copy;
(c) any advertising, promotional materials or other items or
matters related to the distribution and marketing of any Tires
or Tubes supplied by COOPER to TBC; and
(d) any unique design or specification by, or provided by, TBC.
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If either TBC or XXXXXX proposes to claim indemnity or reimbursement,
under the terms of this Agreement, from the other, it shall:
(a) give the other party reasonably prompt notice of the pendency
of any such claim or case after it learns of such claim or
case;
(b) make known to the other party any material fact concerning
such claim or action; and
(c) give its complete cooperation to the other party, including
the cooperation of its officers, agents and employees.
The party from whom indemnification is claimed under the terms of this
Agreement shall have the right to control the defense of such claim or case, and
it shall have the further right to settle or compromise such claim or case as it
deems advisable.
This Section 12. shall survive the termination of this Agreement.
13. CONTINGENCIES
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Neither party to this Agreement shall be held liable or deemed to be in
default if prevented from performing the obligations of this Agreement by reason
of fire, flood, acts of God, war, riots, labor disturbances, strikes, slowdowns,
lockouts, sabotage, embargoes, failure of transportation, inability to obtain
raw material or supplies or equipment, government laws or requirements or
regulations, or any cause or circumstances beyond its reasonable control. In the
event of limited production due to any of the causes listed above, COOPER agrees
to furnish Tires or Tubes to TBC on a pro rata basis of remaining available
capacity for similar sizes and types of Tires or Tubes as the case may be.
14. PATENTS AND TRADEMARKS
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COOPER shall indemnify TBC from all expense resulting from any actual
or alleged infringement of any U.S. Letters Patent by reason of XXXXXX'x use of
methods, processes of manufacturing materials, machinery or equipment in
connection with the Tires and Tubes furnished to TBC under this Agreement;
provided TBC shall promptly notify COOPER in writing of any claim or lawsuit
against TBC, transmit to XXXXXX all documents and information TBC has on the
claim or lawsuit, cooperate fully in XXXXXX'x defense of such claim or lawsuit,
and allow XXXXXX full authority to settle or otherwise dispose of same.
TBC shall indemnify XXXXXX from all expense resulting from actual or
alleged infringement of any U.S. copyright or trademark right of TBC or of a
third party because of XXXXXX'x use of any such trade name, trademark or
information furnished by TBC for the Tires and Tubes, provided COOPER shall
promptly notify TBC in writing of any claim or lawsuit, transmit to TBC all
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documents and information XXXXXX has on the claim or lawsuit, cooperate fully in
TBC's defense of such claim or lawsuit, and allow TBC full authority to settle
or otherwise dispose of same.
15. CONFIDENTIALITY
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In connection with XXXXXX'x manufacturing and supplying Tires and Tubes
to TBC hereunder, COOPER has and, from time to time, will be furnishing TBC,
verbally and in writing, certain confidential and proprietary information for a
multiple range of sizes, constructions, designs and applications of Tires and
Tubes and other nonpublic, confidential and/or proprietary COOPER information
("COOPER Confidential Information"). In consideration of furnishing COOPER
Confidential Information, TBC agrees:
(a) XXXXXX Confidential Information will be kept confidential and
shall not, without XXXXXX'x prior written consent, be
disclosed by TBC, its agents or employees, in any manner
whatsoever, in whole or in part, and shall not be used by TBC,
its agents or employees, other than in connection with the
purchase of Tires and Tubes hereunder. Moreover, TBC agrees to
transmit the COOPER Confidential Information only to TBC
agents and employees who need to know such COOPER Confidential
Information for the purpose of purchasing Tires and Tubes
hereunder and who are informed by TBC of the confidential
nature of the COOPER Confidential Information; provided, if
XXXXXX Confidential Information is provided to any agent, such
agent shall agree in writing to be bound by the terms and
conditions of this Agreement. In any event, TBC shall be
responsible for any breach of this Agreement by TBC's agents
or employees.
(b) TBC will know the location of any written XXXXXX Confidential
Information. Any written XXXXXX Confidential Information will
be returned to XXXXXX immediately upon request. Any written
XXXXXX Confidential Information will be held and kept
confidential and subject to the terms of this Agreement, or
destroyed.
(c) In the event TBC, or any agent or employee, becomes legally
compelled to disclose any of the XXXXXX Confidential
Information, TBC will provide XXXXXX with prompt notice so
XXXXXX may seek a protective order or other appropriate remedy
and/or waive compliance with the provisions of this Agreement.
In the event such protective order or other remedy is not
obtained, or XXXXXX waives compliance with the provisions of
this Agreement, TBC and/or any agent or employee will furnish
only that portion of the XXXXXX Confidential Information which
is legally required and will exercise best efforts to obtain a
protective order or other reliable assurance that
confidential treatment will be accorded the XXXXXX
Confidential Information.
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(d) Notwithstanding anything to the contrary herein, XXXXXX
Confidential Information may be used by TBC and its employees
in the ordinary course of its business.
(e) The above confidentiality obligations shall apply equally to
any nonpublic, confidential and/or proprietary TBC
information, including any pricing information ("TBC
Confidential Information") provided to XXXXXX. TBC
Confidential Information may be used by XXXXXX and its
employees in the ordinary course of its business.
Both parties to this Agreement acknowledge that maintaining a
reputation for quality products and services is an important aspect of doing
business in the tire and inner tube industries. Accordingly, both parties agree
not to make any public or private disclosures concerning the nonperformance of
either party under the terms of this Agreement without the expressed written
consent of the other party.
16. NOTIFICATION OF SIGNIFICANT EVENTS
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Each party shall notify the other of the occurrence of, or the
reasonable anticipation of the occurrence of, any of the following events;
provided the notifying party is not barred from doing so by either applicable
law or the necessity of obtaining the consent of a third party (including any
parent or subsidiary corporation) and in the event a third party's consent is
required, the notifying party shall make a good faith effort to obtain the
consent of such third party to so notify of:
(a) a change in ownership;
(b) a transfer of business which would materially affect this
Agreement;
(c) a merger, acquisition or consolidation; or
(d) any other significant alterations in the organization or
operation of the notifying party's business.
17. TERM AND TERMINATION
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17.1 Term
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This Agreement shall be effective commencing January 1, 1994, and shall
continue thereafter until such time as either party gives the other party
written notice of its intent to terminate this Agreement; provided, however,
neither party shall be permitted to give such notice of termination prior to
June 30, 2003. During the period from receipt of the notice of termination until
the effective date of termination, TBC will continue to purchase under the terms
of this Agreement and XXXXXX will continue to supply TBC's requirements for
Tires under the terms of this Agreement.
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17.2 Termination for Breach
----------------------
In the event XXXXXX shall default in the performance of any obligation
to be performed by it under this Agreement and said default shall not have been
remedied within one hundred twenty (120) days after written notice thereof, TBC
may (a) terminate this Agreement by written notice to XXXXXX, which termination
shall be effective upon receipt by XXXXXX of said notice; (b) cancel any or all
outstanding orders and/or shipping instructions; and/or (c) elect to cease
purchasing any or all Tires and Tubes. In the event TBC shall default in the
performance of any obligation to be performed by it under this Agreement and
said default shall not have been remedied within (a) thirty (30) days, in the
case of payment obligations which are not the subject of a dispute, or (b) one
hundred twenty (120) days, in the case of other obligations after written notice
thereof, XXXXXX may terminate this Agreement by written notice to TBC, which
termination shall be effective upon receipt by TBC of said notice. The rights
and remedies contained in this Section 17.2 are in addition to and not in lieu
of any other rights and remedies which may be available to either party in the
event of breach by the other.
17.3 Termination for Insolvency, or Bankruptcy
-----------------------------------------
If (a) a voluntary petition in bankruptcy shall be filed by either
party, or (b) an involuntary petition in bankruptcy or petition alleging
insolvency or inability to pay debts when due in the ordinary course of business
shall be filed against either party and not be dismissed within thirty (30)
days, or (c) a receiver shall be appointed for the assets of either party and
not be dismissed within thirty (30) days, or (d) either party shall make an
assignment for the benefit of creditors, shall become insolvent, or shall be
unable to pay its debts when due in the ordinary course of business, the other
party shall, to the extent permitted by law, have the right to terminate this
Agreement upon notice to the party so affected.
17.4 Termination for Adverse Events
------------------------------
Notwithstanding any other term or condition contained in this
Agreement, either party may, at its sole option, terminate this Agreement upon
written notice of termination to the other party upon the occurrence of any
event which would adversely and materially affect the other party's security or
materially increase such other party's financial risk; provided, however, should
XXXXXX give notice to TBC pursuant hereto, termination will not occur and this
Agreement will continue if TBC within ten (10) days of such notice, (i) pays
XXXXXX all monies owing XXXXXX, whether due or not, and (ii) agrees to pay
XXXXXX for future orders hereunder on a cash with order basis.
17.5 Termination Inventory
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Should this Agreement be terminated (i) due to TBC's failure to make
its payment obligations, or (ii) as provided pursuant to Section 17.3, XXXXXX
may dispose of all Tires in process or in inventory at its discretion.
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In the event of any termination by either party for any other reason,
pursuant to this Section 17., TBC will immediately purchase, accept delivery of,
and pay for all Tires produced by XXXXXX prior to the date of such termination
against TBC's firm order at the prices then in effect.
It is specifically agreed TBC may purchase, on a C.O.D. basis, any or
all Tires produced by XXXXXX in excess of the number it is required to purchase
under the above provisions of this Section 17. at the prices then in effect, and
any remaining Tires may be sold or disposed of by XXXXXX.
18. SURVIVAL OF OBLIGATIONS
-----------------------
All obligations of either party pertaining to payment, reimbursement,
warranty, adjustment, recall and indemnity, and all obligations hereunder which,
by the terms of this Agreement, arise at or after termination, shall survive any
termination of this Agreement as provided in the applicable section(s) hereof or
for the duration of the applicable statute of limitations, whichever is shorter.
19. WAIVER
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Waiver by TBC or XXXXXX of any breach of any of the terms and
conditions contained herein shall not be construed as a waiver of any other term
or condition hereof or of any other breach hereunder or any continuing breach
hereunder.
20. MODIFICATION, ASSIGNMENT and CONTINUATION
-----------------------------------------
Any modification or change in this Agreement can be made only in
writing signed by the parties hereto. Neither party shall have the right to
assign this Agreement without the prior written consent of the other party.
Notwithstanding the above, XXXXXX shall review in good faith any TBC proposed
assignment, or partial assignment, of this Agreement.
Specific elements of consideration for a good faith review shall
include, but not be limited to:
(a) continuation of the tire wholesaling business;
(b) impairment of overall credit-worthiness;
(c) merchandising strategy and customer service; and
(d) restructuring within the current ownership framework.
Both parties to this Agreement acknowledge a general evaluation of
business practices, reputation, integrity and credit-worthiness was an integral
part of the decision to enter into this Agreement. In the event all or a
majority of the stock of TBC is acquired by a third party without XXXXXX'x prior
written
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consent, XXXXXX shall have the option of terminating this Agreement upon giving
such third party not less than one hundred eighty (180) days written notice of
XXXXXX'x intent to terminate this Agreement, provided such notice shall be given
within ninety (90) days of the date TBC provides XXXXXX written notice of the
completion of such sale. Upon the receipt of such notice from TBC, XXXXXX shall
have the right to review and modify, in XXXXXX'x sole discretion, the credit
terms in effect for TBC prior to the consummation of the sale.
21. NOTICES
--------
Notices and other communications, required or permitted hereunder,
shall be sufficiently given, if in writing and when sent, by registered or
certified United States mail, postage prepaid, addressed as follows:
If to COOPER: President, The Xxxxxx Tire Company
XXXXXX TIRE & RUBBER COMPANY
Lima & Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxx 00000
If to TBC: Xx. X. X. Xxxxxxx
Senior Vice President Purchasing & Engineering
TBC CORPORATION
0000 Xxxxxxx Xxxx
X.X. Xxx 00000
Xxxxxxx, Xxxxxxxxx 00000
or to such other address as either party hereto shall furnish to the other in
writing.
22. PROHIBITED CLAUSE
-----------------
In the event any clause, or portion of a clause, of this Agreement is
finally determined by a court of competent jurisdiction, from which an appeal
either cannot be taken or is not taken, to be in violation of any applicable
Federal, state or local law, all other clauses or portions of a clause of this
Agreement shall nevertheless remain in full force and effect to the extent not
clearly prohibited by applicable Federal, state or local law.
23. CAPTION AND SECTION AND SUBSECTION HEADINGS
--------------------------------------------
The caption and section and subsection headings used herein are for
convenience only and shall not be deemed part of this Agreement and shall not in
any way restrict or modify the context and substance of any section or
subsection hereof.
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24. ENTIRE AGREEMENT
----------------
This instrument and Exhibit A contain the entire agreement between the
parties hereto regarding the matters contained herein.
25. GOVERNING LAW
-------------
This Agreement shall be construed under the laws of the State of Ohio.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the day and year first above
written.
ATTEST: TBC CORPORATION
By: /s/ Xx Xxxxxx By: /s/ XXXXX X. XxXXXXXX
---------------------------- ---------------------------------
Title: President/COO
------------------------------
Title: Assistant Secretary Date: April 25, 1994
------------------------- -------------------------------
ATTEST: XXXXXX TIRE & RUBBER COMPANY
By: /s/ X. X. Xxxxxx By: /s/ X. X. XXXXXX
---------------------------- ---------------------------------
Title: President
------------------------------
Title: Tire Div. Controllor Date: April 25, 1994
------------------------- ------------------------------
By: /s/ X. X. XXXXXXXXXX
---------------------------------
Title: Treasurer
-----------------------------
Date: April 25, 1994
------------------------------
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