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Exhibit 10.16
PRODUCT SALES AGREEMENT
This Agreement, effective as of the 13th day of January, 1999, by and
between Rockford Corporation, having offices at 000 X. Xxxxxxxx Xxxxx, Xxxxx,
Xxxxxxx 00000 ("Buyer") and AVNET ELECTRONICS MARKETING, a group of Avnet, Inc.
having offices at 0000 X. 00xx Xx., Xxxxxxx, Xxxxxxx 00000 ("Seller").
1. CONDITIONS OF SALE
Any Products Buyer purchases from Seller during the term of this
Agreement shall be governed by Seller's terms and conditions of sale contained
in Exhibit A attached hereto and incorporated herein.
2. TERM
The term of this Agreement shall be for two (2) years and six (6)
months commencing on the effective date hereof, unless sooner terminated in
accordance with the provisions of Paragraph 5 hereof. Pricing will be
renegotiated at least once annually.
3. PRODUCTS
Seller agrees to sell to Buyer and Buyer agrees to buy products listed
on Exhibit B attached hereto and made a part hereof, and such other items as may
be mutually designated in writing by the parties from time to time ("Products").
4. PRICE
(a) Prices for the Products are set forth in Exhibit B, attached
hereto. Prices are exclusive of any and all Federal, State, and local sales,
use, excise, and similar taxes and charges which shall be the responsibility of
Buyer. In the event the manufacturer increases Seller's cost of any Product,
Seller may increase its price(s) of any undelivered Product upon prior notice to
Buyer. If the parties fail to concur on such a price increase within thirty (30)
days of such notice, the effected Product(s) shall be deleted from Exhibit B.
(b) Additional terms regarding pricing, as set forth in Attachment A
attached hereto, shall also apply.
5. TERMINATION
(a) This Agreement may be terminated at any time, without cause, by
either party upon giving the other part at least thirty (30) days prior written
notice. Such termination shall be effective on the date stated in such notice.
(b) This Agreement may be terminated immediately for cause by either
party in the event the other party: (i) shall become insolvent, (ii) ceases to
function as a going concern or (iii) fails to perform any of its obligations
hereunder so as to be in default and fails to cure such default within thirty
(30) days after written notice thereof.
(c) Notwithstanding termination of this Agreement, the Buyer shall pay
for all Non-Standard Products ordered by Seller for Buyer's account prior to,
and work in process (including charges for labor and materials) as of, the
effective date of termination of this Agreement.
6. NOTICES
Any notice provided for or permitted in this Agreement will be deemed
to have been given when mailed postage prepaid by certified mail or registered
mail, return receipt requested, to the party to be notified, at the addresses
set forth above or such other addresses as the parties may from time to time
designate in writing.
7. GENERAL
(a) This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and supersedes all prior agreements
relating thereto, written or oral, between the parties. This Agreement may be
modified only by writings signed by authorized representatives of both parties.
(b) The parties agree that the terms and conditions of this Agreement
shall control, notwithstanding conflicting or additional terms on any purchase
order, sales acknowledgement, confirmation or other documents issued by either
party. Where the terms and conditions of this Agreement and Exhibit A hereto
conflict, the terms and conditions of this Agreement shall take precedence.
(c) This Agreement shall be governed by and construed in accordance
with the laws of the State of Arizona.
(*)CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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IN WITNESS WHEREOF, the parties have duly executed this Agreement
effective as of the date first set forth above.
AVNET ELECTRONICS MARKETING, ROCKFORD CORPORATION
a group of Avent, Inc.
"Seller" "Buyer"
By: /s/ By: /s/ Xxxxxx Xxxxxx
----------------------------- -----------------------------
Authorized Signature Authorized Signature
Name: Name: Xxxxxx Xxxxxx
----------------------------- -----------------------------
Printed or Typed Printed or Typed
Title: Director, Contracts Title: Sr. Buyer/Planner
--------------------- ---------------------
Date: 13/13/99 Date: 1/12/99
-------------------- ---------------------
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(LOGO) ROCKFORD
CORPORATION
EXHIBIT B
(PRICING EXHIBIT)PART YEARLY USAGE MANUFACTURER LEAD TIME PRICE
(*)
-----------------------------------------------------------------------------------------------------------------------
CDS-047CAAA 870,000 MCO 12-14 WKS (*)
4.7PF 50 VOLT 5% XXX 0000
CDS-100CAAA 400,000 MCO 12-14 WKS (*)
10PF 50 VOLT 5% XXX 0000
CDS-100CAAB 12,000 MCO 12-14 WKS (*)
10PF 50 VOLT 5% XXX 0000
CDS-101CAAA 1,800,000 MCO 12-14 WKS (*)
100PF 50 VOLT 5% XXX 0000
CDS-101CAAB 28,000 MCO 12-14 WKS (*)
100PF 50 VOLT 5% XXX 0000
CDS-102CBAA 118,000 MCO 12-14 WKS (*)
.001UF 50 VOLT 10% XXX 0000
CDS-103CBBA 160,000 MCO 12-14 WKS (*)
.01UF 50 VOLT 10% X7R 0805
CDS-103CBBB 32,000 MCO 12-14 WKS (*)
.01UF 50 VOLT 10% X7R 1206
CDS-103CCDA 54,000 MCO 12-14 WKS (*)
.01 UF 50 VOLT 20% Z5U 0805
CDS-104CABB 12,000 MCO 12-14 WKS (*)
.1UF 50 VOLT 5% X7R 1206
CDS-104CABB 98,000 MCO 12-14 WKS (*)
.1UF 50 VOLT 5% X7R 1206
CDS-104CCDA 940,000 MCO 12-14 WKS (*)
.1UF 50 VOLT 20% Z5U 0805
CDS-104CCDB 675,000 MCO 12-14 WKS (*)
.1UF 50 VOLT 20% Z5U 1206
CDS-104CCDC 430,000 AVX 12-14 WKS (*)
.01UF 50 VOLT 20% Z5U 1210
CDS-121CAAA 1,300,000 MCO 12-14 WKS (*)
102PF 50 VOLT 5% XXX 0000
CDS-221CAAA 12,000 MCO 12-14 WKS (*)
220PF 50 VOLT 5% XXX 0000
CDS-223CBBA 124,000 MCO 12-14 WKS (*)
.022UF 50 VOLT 10% X7R 0805
CDS-271CAAA 950,000 MCO 12-14 WKS (*)
270PF 50 VOLT 5% XXX 0000
CDS-271CAAB 10,000 MCO 12-14 WKS (*)
270PF 50 VOLT 5% XXX 0000
(*) CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
4
(PRICING EXHIBIT)PART YEARLY USAGE MANUFACTURER LEAD TIME PRICE
(*)
-----------------------------------------------------------------------------------------------------------------------
CDS-333CCBB 10,000 AVX 12-14 WKS (*)
.033UF 50 VOLT 20% X7R 1206
CDS-470DAAA 12,000 MCO 12-14 WKS (*)
47PF 100V 5% XXX 0000
CDS-682CBBA 28,000 MCO 12-14 WKS (*)
.0068UF 50 VOLT 10% X7R 0805
CDS-822CABB 8,000 MCO 12-14 WKS (*)
.0082UF 50 VOLT 5% X7R 1206
CDS-822CCBA 50,000 MCO 12-14 WKS (*)
.0082UF 50 VOLT 20% X7R 0805
CDS-822CCBB 70,000 MCO 12-14 WKS (*)
.0082UF 50 VOLT 20% X7R 1206
CDS-823CABB 8,000 MCO 12-14 WKS (*)
.082UF 50 VOLT 5% X7R 1206
CDS-272CBBB 230,000 MUR 12-14 WKS (*)
.0027UF 50 VOLT 10% X7R 1206
(*) CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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(LOGO) ROCKFORD
CORPORATION
PART YEARLY MANUFACTURER LEAD TIME PRICE NCNR
USAGE (*)
---------------------------------------------------------------------------------------------------------------------
CER-105CSM 80,000 NCH 14-16 WKS (*)
1UF 50 VOLTS QR
NICH UWX1H010MCR1GB
CER-106B-024 100,000 NCH 14-16 WKS (*) *
10UF 35 VOLTS
NICH UVX1V100MDA1CC
CER-106B-031 2,391,000 NCH 14-16 WKS (*) *
1OUF 35 VOLTS AI
NICH UVX1V100MDA1TD
CER-106SM 3,900,000 NCH 14-16 WKS (*)
10UF 15 VOLTS
NICH UWX1C100MCR1GB
CER-107A 73,000 NCH 14-16 WKS (*)
101UF 25 VOLTS
NICH UVX1E101MEA
CER-107A-031 174,000 NCH 14-16 WKS (*)
100UF 25 VOLTS AI
NICH UVX1E101MEA
CER-107C-031 240,000 NCH 14-16 WKS (*) *
100UF 50 VOLTS XX
XXXXXXX SK101M050AT
CER-255CSM 100,000 NCH 14-16 WKS (*) *
2.2UF 50 VOLTS QR NICH
UWX1H2R2MCR1GB
CER-228A-030 72,000 NCH 14-16 WKS (*) *
2200UF 25 VOLTS QR
NICH URZ1E222MHH1CA
CER-228B-030 145,000 NCH 14-16 WKS (*) *
2200UF 35 VOLTS QR
NICH URZ1V222MHH1CA
CER-477C 12,000 NCH 14-16 WKS (*)
47OUF 50 VOLT
NICH UVX1H471MHA
CERHF-228 145,000 NCH 14-16 WKS (*) *
2200UF 16VOLT QR
NICH UPL1C222MHH6
CERHF-337BL-033 33OUF 145,000 NCH 14-16 WKS (*) *
35 VOLT QR NICH
UPLQV331MPH1TD
CERHF-337D-030 340,000 NCH 14-16 WKS (*) *
(*) CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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PART YEARLY MANUFACTURER LEAD TIME PRICE NCNR
USAGE (*)
---------------------------------------------------------------------------------------------------------------------
33OUF 63 VOLT QR NICH
UPLQJ331MHH1CA
CERS-338B 72,000 NCH 14-16 WKS (*) *
3300UF 35 VOLT QR
NICH LLKF1V332MHSZ
CERS-338C 3300UF 176,000 NCH 14-16 WKS (*) *
50 VOLT QR NICH
LLK1H332MHSA
* CERS-338E 6,500 NCH 14-16 WKS (*) *
3300UF 63 VOLT QR NICH
LLK1H332MHSZ
CERS-478C 4700UF 130,000 NCH 14-16 WKS (*) *
50 VOLT QR NICH
LLK1H472MHSB
** CERS-478D 25,000 NCH 14-16 WKS (*) *
4700UF 80 VOLT QR NICH
LLK1K472MHSB
CERS-688D 8,000 NCH 14-16 WKS (*) *
6800UF 80 VOLT QR NICH
LLQIK682MHSC
* Currently shipping LLK1J332MHSZ
** Currently shipping LLK1K472MHSC
(*)CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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(LOGO) ROCKFORD
CORPORATION
GENERAL
PART YEARLY USAGE MANUFACTURER LEAD TIME PRICE
(*)
--------------------------------------------------------------------------------------------------------------------------
SS-0722 30,000 TIS 6-8 WKS (*)
TL594CDR TI
SS-101A-45 700,000 MOT 10-12 WKS (*)
MPS-A56RLRM AI MOT
SS-102A-45 800,000 MOT 4-6 WKS (*)
MPSA06RLRM AI MOT
SS-1375 175,000 MOT/SGS 16-18 WKS (*)
LM317T MOT/SGS
SS-1376 175,000 MOT/SGS 16-18 WKS (*)
LM337T MOT/SGS
SS-1378 230,000 MOT 10-12 WKS (*)
MUR1620CTR MOT
SS-1403 230,000 MOT 10-12 WKS (*)
MUR1620CT MOT
SS-143SM 600,000 MOT/TIS 6-8 WKS (*)
TL072CDR2 MOT/TI
SS-161 511,000 MOT 4-6 WKS (*)
1N4003RL MOT
SS-183 170,000 MOT 6-8 WKS (*)
1N5366BRL MOT
SS-187SM 830,000 MOT/NSC 14-16 WKS (*)
LM833MX MOT/NTL
SS-209 640,000 MOT/FSC 8-10 WKS (*)
MPS6521 MOT
SS-730SM 260,000 MOT/NSC 6-8 WKS (*)
LM339DR2 MOT/NTL
SS-802SM 230,000 MOT/TIS 6-8 WKS (*)
TL494CDR MOT/TI
SS-0113 440,000 MOT/FSC/PHA 4-6 WKS (*)
XXXX0000XXX0
XX-0000 1,096,000 MOT/FSC/PHA 4-6 WKS (*)
MMBT5088LT1
SS-0775 40,000 MOT/FSC/PHA 4-6 WKS (*)
XXXX0000XXX0
XX-0000 4,700,000 XXX/XXX/XXX 0-0 XXX (*)
XXXX0000XX0
XX-0000 4,000,000 MOT/FSC/PHA 8-10 WKS (*)
XXXX0000XXX0
XX-000XX 423,000 MOT/FSC/PHA 4-6 WKS (*)
(*) CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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PART YEARLY USAGE MANUFACTURER LEAD TIME PRICE
(*)
--------------------------------------------------------------------------------------------------------------------------
XXXXX00XX0
XX-000XX 240,000 MOT/FSC/PHA 12-14 WKS (*)
XXXXX00XX0
XX-000XX 1,000,000 MOT/FSC/PHA 4-6 WKS (*)
BAV99LTI
SS-803SM 4,000,000 MOT/FSC/PHA 4-6 WKS (*)
MMBD914LT3
(*)CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
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(LOGO) ROCKFORD
CORPORATION
ATTACHMENT "A"
Following are conditions where Avnet will procure product from other sources:
1) Rockford had placed a purchase order for contract item(s) with Avnet and
manufacturers original commit date is not met and Rockford cannot adjust to
revised delivery to support production and/or line space down situations.
2) Avnet would assist Rockford in locating late delivery item and price
negotiation by a franchised and non-franchised sources. After unsuccessful
attempts to locate product within our franchised manufacturers and/or Rockford's
approved supplies, then reserved dollars will be credited to Rockford and must
be mutually agreed.
3) (*) is set aside per month with a maximum of (*). If, for example, (*) is
spent for June, the unused balance may be used throughout the remainder of the
quarter but cannot exceed (*) for the quarter.
4) Contract pricing on allocated components to be reviewed quarterly to insure
competitive fair market pricing and Rockford is assured any potential cost
savings. It is our intent to offer competitive pricing and cost reductions and
offer assurance of on-time deliveries via set aside purchase dollars.
(*) CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL MATERIAL HAS BEEN REDACTED
AND FILED SEPARATELY WITH THE COMMISSION.
