Exhibit 10.80
PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. SUCH PORTIONS ARE DESIGNATED "***".
This Automotive Filter Sales Agreement (Agreement) is made October 1,
2002 by and between Monro Muffler Brake, Inc.(Buyer), having an office at 000
Xxxxxxxx Xxxxxxx, Xxxxxxxxx, XX 00000 and The Valvoline Company (Seller), having
an office at 0000 Xxxxxx Xxxxxxx, Xxxxxxxxx, XX 00000, and continuing until
October 31, 2007 unless previously terminated as allowable herein.
PRICING
The pricing on the attached Schedule A will be firm for one year from
the signing of this agreement. Seller may from time to time change prices upward
or downward. Price increases may take effect on the anniversary date of this
agreement providing the Buyer has been given ninety (90) days written notice.
Such future price increases shall be limited to ***.
MARKETING AND PROMOTIONAL ALLOWANCES
The following cooperative advertising promotional allowance credits will
be issued quarterly to assist Buyer in the promotion of oil changes:
Valvoline Branded Oil Filters *** per unit
Valvoline Branded Air filters *** per unit
The above cooperative advertising promotional allowance credits will be
issued in the form of credit memos within 30 days of the end of each calendar
quarter.
CHANGEOVER
In consideration of entering into this agreement and in recognition of the
Buyer's costs with such implementation, and the waiver of the Buyer requiring
the Seller to relabel and/or replace existing product, the Seller agrees to
provide an initial changeover credit to the Buyer of ***. Thereafter, a credit
of *** each year will be provided by October 15th, beginning in 2003. This will
provide a total reimbursement of *** for costs related to the changeover.
BRAND DEVELOPMENT FUND
Seller will provide Buyer with a Brand Development Fund of *** per filter unit
to promote the growth of the filter line. This fund will be capped at ***
annually. This fund will be paid quarterly in the form of a credit to Buyer's
account based upon the filters purchased.
FREIGHT
Seller agrees to deliver product to the Buyer at up to five (5)
warehouse destinations, freight prepaid, FOB the Buyer's receipt address for
regular stock orders meeting prepaid shipment minimums. Freight will be prepaid
on orders of 500 units or more. For orders less than 500 units, freight will be
added to the bottom of the invoice. Seller agrees to allow the Buyer to
transport orders from the Seller's designated shipping/receiving point.
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PAYMENT TERMS
All orders, regardless of size, will receive terms of ***.
TURN TIME
All orders will be shipped within five (5) working days from receipt of
order.
ORDER FILL
Seller agrees to all terms and conditions relating to shipping and order
fill as shown in Buyers Vendor Compliance Policy.
DEFECTS/WARRANTY
Credit for field defects will be provided via a credit of *** annually.
Filters will be disposed of at the store level.
STOCK ADJUSTMENT
Annual obsolescence stock returns will be allowed in the amount of 15%
of the previous year's purchases. No handling charge will be assessed for goods
in salable condition. Salable condition is defined as packaging that is clean
and free of all pricing stickers, marks, scratches, and in good physical
condition.
CATALOG SUPPORT
Seller will provide buyer with an updated application catalog each year,
along with any needed supplements or bulletins.
Seller will also provide application data in an industry accepted AAIA
format. Updates to be provided on a monthly basis, or as requested by buyer.
LINE REVIEW
Seller and Buyer to review product line assortment on an annual basis
using sales history and VIO (vehicles in operation) data. All product groups
will be reviewed and products will be added and deleted as deemed necessary.
ASSIGNMENTS
This agreement is non-assignable by the Buyer without the prior written
approval of the Seller.
WARRANTY
Contact Valvoline Key Account Manager. Filter Kit will be sent overnight
to store with instructions on necessary form completion and mailing
instructions. After the filter review, a report will be generated which will
indicate either the filter was not the cause of the problem or it was. If it
was, the address and contact information for the insured party (Champion Labs)
will be provided.
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SUPPLIER CHANGE OF CONTROLLING INTEREST
a. In the event that a change of control of the Seller
shall result in a party, person or corporate entity controlling a
majority share of the Seller, and such party, person or corporate entity
shall be a citizen of, or based in, a country which is, or becomes,
listed on the United States of America's Department of State's Office of
Defense Trade Control's Embargo Reference Chart, Buyer shall have the
immediate right to terminate this agreement.
b. In the event that the Seller is acquired, either
directly or indirectly, through the sale of assets, merger, or
otherwise, the Buyer, at its sole discretion, may terminate this
Agreement upon 60 days written notice.
c. In the event of a material change affecting the Buyer's
petroleum products merchandise agreement The Valvoline Company, the
Buyer reserves the right to cancel this agreement with 60 days written
notice to the Seller.
CUSTOMER CHANGE OF CONTROLLING INTEREST
In the event that the Buyer is acquired, either directly or indirectly, through
the sale of assets, merger, or otherwise, the Buyer, or its successor(s) may
terminate this Agreement upon 60 days written notice.
MONRO MUFFLER BRAKE, INC. THE VALVOLINE COMPANY, A DIVISION OF ASHLAND INC
By: /s/ Xxxxx X. Xxxxx By: /s/ Xxxxxxx X. Xxxxxxx
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Print Name: Xxxxx X. Xxxxx Print Name: Xxxxxxx X. Xxxxxxx
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Title: Vice President Title: Vice President
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