EX-10.33
6
exhibit_10-33.htm
EXHIBIT 10.33 - TITANIUM SPONGE SUPPLY AGREEMENT BETWEEN TOHO TITANIUM CO., LTD. AND TITANIUM METALS CORPORATION DATED AS OF DECEMBER 18, 2009
EXHIBIT 10.33
Portions
of this Exhibit 10.33 have been omitted based upon a request for confidential
treatment. This Exhibit 10.33, including the non-public information, has been
filed separately with the Securities and Exchange Commission “*” designates
portions of this document that have been redacted pursuant to the request for
confidential treatment filed with the Securities and Exchange
Commission.
TITANIUM SPONGE SUPPLY
AGREEMENT
This
Agreement is executed on the 4th day
of January 2010, having an effective date of December 18, 2009, by and between
Toho
Titanium Co., Ltd., a company organized and existing under the laws of
Japan,
having its principal place of business at 0-0-0
Xxxxxxxxx, Xxxxxxxxx-Xxxx, Xxxxxxxx-Xxxx. 000-0000 Xxxxx (hereinafter
called “Toho”) and Titanium Metals Corporation, a company organized and existing
under the laws of the State of Delaware, having its principal place of business
at Three Lincoln Centre, 0000 XXX Xxxxxxx, Xxxxx 0000, Xxxxxx, Xxxxx 00000
(hereinafter called “TIMET”). Toho and TIMET are hereinafter
collectively called the “Parties” and individually a “Party.”
WITNESSETH:
WHEREAS,
TIMET requires a stable supply of Commodity (as hereinafter defined) for use at
its facilities;
WHEREAS,
Toho is desirous of providing TIMET with a stable supply of Commodity throughout
the term hereof;
WHEREAS,
TIMET is desirous of obtaining an assurance by Toho that TIMET will have a
stable source of supply of Commodity, and Toho is willing to provide such
assurance;
WHEREAS, Toho and TIMET have previously
entered into a Titanium Sponge Supply Agreement for the purchase and sale of
titanium sponge dated as of November 14th,
2007 (the “Former Supply Agreement”); and
WHEREAS,
Toho and TIMET desire to terminate the Former Supply Agreement.
NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained, the parties agree as follows:
ARTICLE 1. TERMINATION OF
SUPPLY AGREEMENT
Upon
execution of this Agreement by Toho and TIMET, the Former Supply Agreement shall
be automatically terminated and revoked without further action by the
Parties. The termination of the Former Supply Agreement shall not
affect the rights of the Parties that have accrued thereunder prior to such
termination.
ARTICLE 2.
DEFINITIONS
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2.1
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As
used in this Agreement, the following terms shall have the meanings as
specified below:
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“All Other Types” means SP80, HP120, and HP250 as set out in the Appendix
A.
“Annual
Confirmation” shall have the meaning set forth in Article 4.1.
“Business
Day” shall mean any day other than Saturday, Sunday or national holiday in the
United States of America or Japan.
“Calculation
Notice” shall have the meaning set forth in Article 8.1.
“Commodity”
shall mean Structural Grade (as defined below), Disc Quality (as defined below)
and All Other Types of titanium sponge meeting the Specifications (as defined
below) set forth on Appendix A.
“Commodity
Mix” shall have the meaning set forth in Article 5.3.
“Consignment
Agreement” means the Titanium Sponge Consignment Agreement dated 14 November
2007 by and between Toho and TIMET and attached hereto as Appendix
B.
“Consignment
Place” shall have the meaning set forth in Clause 2.1 of the Consignment
Agreement.
“Contract
Year” means each year from 1st
January to 31st
December during the term of this Agreement, commencing with the year of 1st
January to 31st
December 2011.
“Cost
Adjustment” shall have the meaning set forth in Article 6.4(a).
“Currency
Adjustment” shall have the meaning set forth in Article 6.5(a).
“Disc
Quality” shall mean titanium sponge produced by Toho meeting Specification RMS
71.4.
“Firm
Annual Quantity” shall have the meaning set forth in Articles
5.1(b).
“Firm
Price” shall have the meaning set forth in Article 6.1.
“Forecast
Quantity” shall have the meaning set forth in Article 5.1(a).
“Force
Majeure” shall have the meaning set forth in Article 16.
“Former
Supply Agreement” shall have the meaning set forth in the recitals
hereto.
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“Mitsui
EUROPE” means Mitsui & Co. Europe
PLC.
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“MT”
shall have the meaning set forth in Article 5.2.
“Price
Disagreement” shall have the meaning set forth in Article 7.1.
“Specification”
means the latest version of the specifications for differing purities of
Commodity (Structural Grade, Disc Quality and All Other Types), which are
attached hereto as Appendix A.
“Structural
Grade” shall mean titanium sponge produced by Toho meeting Specification RMS
72.4.
“Take or
Pay Payment” shall have the meaning set forth in Article 8.2.
“Termination
Date” shall have the meaning set forth in Article 14.1.
“TIMET
Final Counteroffer” shall have the meaning set forth in Article
7.2(b)(ii).
“TIMET
Final Offer” shall have the meaning set forth in Article 7.3(a).
“Toho
Facility” means any titanium sponge production facility of Toho located in
Japan.
“Toho
Final Counteroffer” shall have the meaning set forth in Article
7.3(b)(ii).
“Toho
Final Offer” shall have the meaning set forth in Article 7.2(a).
ARTICLE 3.
DELIVERY
Toho
agrees to deliver to TIMET, and TIMET agrees to take delivery from Toho of
Commodity in the amount of the Firm Annual Quantity at the Firm Price pursuant
to the provisions of the Consignment Agreement. In case of a
discrepancy between this Agreement and the Consignment Agreement, the former
shall prevail.
ARTICLE 4. TIMET ANNUAL
CONFIRMATION
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4.1
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The
Firm Price of each specification of Commodity under this Agreement during
each Contract Year shall be confirmed by TIMET and Toho in writing
(hereinafter called the “Annual Confirmation”), which shall be made
annually within thirty (30) days after the Parties have agreed to the Firm
Price of Commodity for the next Contract Year. The form of the
Annual Confirmation is attached hereto as Appendix C. The
Annual Confirmation also will set forth the Commodity Mix (as defined
below).
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4.2
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The
Annual Confirmation shall stipulate the monthly delivery schedule of
Commodity in the applicable Contract
Year.
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4.3
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Each
Annual Confirmation shall be deemed to incorporate the terms and
conditions set forth in this Agreement and the Consignment
Agreement. If there is any conflict or difference in
interpretation between this Agreement and any Annual Confirmation, the
terms and conditions of this Agreement shall supersede those of said
Annual Confirmation, and any such conflicting or different terms or
conditions shall be deemed rejected by the other Party, unless such
conflicting or different terms or conditions are incorporated into the
relevant Annual Confirmation by writing or typing conspicuously on the
Annual Confirmation and identifying the specific changes to this Agreement
as an amendment and signed by the duly authorized representatives of TIMET
and Toho.
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5.1
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(a)
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By
* of each Contract Year, TIMET shall provide Toho with an estimate of
quantity of Commodity (including the estimated quantity of each type of
Commodity) to be purchased and taken delivery of by TIMET for the next
Contract Year pursuant to the Consignment Agreement (the “Forecast
Quantity”). Toho and TIMET shall agree by * to the actual
quantity and price of Commodity by Specification to be supplied by Toho to
TIMET pursuant to the Consignment Agreement during the following Contract
Year.
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(b)
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The
quantity agreed to by * shall be final and binding quantity for both
Parties (the “Firm Annual Quantity”), provided that, where relevant,
* in the case that the Parties fail to reach agreement on the
annual quantity in the relevant Contract
Year.
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(c)
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Both
the Forecast Quantity for the following Contract Year under this Agreement
and the Firm Annual Quantity shall be within the range of quantities
permitted as set forth in Article
5.2.
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5.2
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For
Contract Year 2011, the Firm Annual Quantity of Disc Quality Commodity
shall be * and the Firm Annual Quantity of Structural Grade
Commodity shall be *. For Contract Years 2012-2025, the Parties
have established a range for the minimum and maximum Firm Annual Quantity
of Commodity * as
follows:
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*
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5.3
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For
Contract Years 2011 – 2025 the Commodity Mix by Specification (hereinafter
called the “Commodity Mix”) with respect to All Other Types of Commodity
and for Contract Years 2012 – 2025 the Commodity Mix with respect to Disc
Quality and Structural Grade Commodity will be subject to the limitations
as follows:
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For the
avoidance of doubt, the Firm Annual Quantity of All Other Types of Commodity
shall be included in the Disc Quality minimum and maximum, as the case may
be.
From
Contract Year 2012 to the expiration or termination of this Agreement, TIMET
will provide to Toho an initial forecast (hereinafter called the “Initial
Forecast”) for the total volume of Commodity and Commodity Mix on or prior to
* Such initial forecast shall include *. TIMET will
provide Forecast Quantity by updating such Initial Forecast on
*. Toho shall agree to the final Commodity Mix requested by TIMET if
the total volumes of Commodity are within the permitted minimums and maximums
set forth in Article 5.2 and the volumes of Disc Quality and Structural Grade
are within the permitted minimum and maximum set forth in Article 5.3 and the
volume of All Other Types of Commodity are *. The
Maximum combined quantity of All Other Types of Commodity (SP80, HP120 and
HP250) shall be reasonable in comparison with the past actual quantity ordered
by TIMET. *, the Parties will agree on the final Commodity Mix for such year. In
the case that the Parties fail to reach agreement on the final Commodity Mix in
the relevant Contract Year, the minimum quantity of the All Other Types of
Commodity set forth in Initial Forecast shall be deemed to be the final quantity
for All Other Types of Commodity.
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6.1
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On
or prior to *, Toho will provide to TIMET the price for the Commodity for
the upcoming Contract Year. (In the event that there is a Cost
Adjustment (as defined below) or a Currency Adjustment (as defined below)
applicable to the upcoming Contract Year, Toho will provide to TIMET the
price for the Commodity by *.) The Parties will engage in negotiation
within the applicable price ranges detailed in Article 6.3, and will take
into consideration the market situation of titanium sponge in their final
agreement on the price of Commodity to be reached by * of the year that
precedes such Contract Year (the “Firm Price”). If no agreement
is reached by *, the terms of Article 7 shall
apply.
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6.2
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The
Firm Price shall be set out in each Annual Confirmation issued pursuant to
Article 4.1. All prices are stipulated in U.S. Dollars per kilogram, DDU
(notwithstanding any provisions of the Consignment Agreement, as defined
in INCOTERMS 2000) Consignment Place basis, and the Firm Price shall be
held final and binding on both Parties for the applicable Contract
Year.
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6.3
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The
permissible price ranges for the minimum and maximum Firm Price shall be
as set forth in the table below, as adjusted pursuant to Articles 6.4 and
6.5 below. The price range below, adjusted as applicable, for the
Commodity shall be applicable for each Contract Year during the term of
this Agreement.
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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*
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(b) *
(c) *
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(d)
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With
respect to the Benchmark and Reference Indices for feedstock (i.e., the
BM-F and the RI-F), TIMET shall be permitted upon advance written notice
to audit Toho’s books and records to verify the actual and estimated
purchase costs incurred to purchase all rutile feedstock for all periods
relevant to the Cost Adjustment
calculation.
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(e)
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The
Parties shall complete the calculation of the Cost Adjustment to the price
range by *.
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(c)
*
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(d)
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The
Parties shall complete the calculation of the Currency Adjustment to the
price range by *.
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ARTICLE 7. PRICE
DISAGREEMENT
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7.1
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In
the event that TIMET and Toho fail to agree on the Firm Price of the
Commodity for any Contract Year pursuant to the provisions set forth in
Article 6 on or before * (the “Price Disagreement”), the terms
and conditions of this Article 7 shall
apply.
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7.2
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In
case that the following Contract Year is an odd
year:
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(a)
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*,
Toho shall make an offer to TIMET in writing (hereinafter called “Toho’s
Final Offer”), which will consist of the lowest prices (within the
applicable price range) at which Toho is willing to sell the Firm Annual
Quantity of the Commodity for such Contract
Year.
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(b)
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*,
TIMET shall respond to Toho in writing as
follows:
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(i)
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by
accepting Toho’s Final Offer; or
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(ii)
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by
making its final offer price to Toho (hereinafter called “TIMET’s Final
Counteroffer”), which will consist of the highest prices (within the
applicable price range) at which TIMET is willing to purchase the Firm
Annual Quantity of the Commodity for such Contract
Year.
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(c)
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Unless
the price of Commodity is mutually agreed by both Parties *, the price of
Commodity stipulated in TIMET’s Final Counteroffer shall be deemed to be
accepted by Toho and to be the Firm
Price.
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7.3
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In
case that the following Contract Year is an even
year:
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(a)
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*,
TIMET shall make an offer to Toho in writing (hereinafter called “TIMET’s
Final Offer”), which will consist of the highest prices (within the
applicable price range) at which TIMET is willing to purchase the Firm
Annual Quantity of the Commodity for such Contract
Year.
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(b)
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*,
Toho shall respond to TIMET in writing as
follows:
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(i)
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by
accepting TIMET’s Final Offer; or
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(ii)
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by
making its final offer price to TIMET (hereinafter called “Toho’s Final
Counteroffer”), which will consist of the lowest prices (within the
applicable price range) at which Toho is willing to sell the Firm Annual
Quantity of the Commodity for such Contract
Year.
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(c)
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Unless
the price of Commodity is mutually agreed by both Parties *, the price of
Commodity stipulated in Toho’s Final Counteroffer shall be deemed to be
accepted by TIMET and to be the Firm
Price.
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ARTICLE 8. TAKE OR
PAY
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8.1
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*,
Toho will calculate the amount of Commodity actually sold by Toho to TIMET
hereunder for the immediately preceding Contract Year and shall advise
TIMET in writing of the result of such calculation (hereinafter called the
“Calculation Notice”). If TIMET objects to such calculation, it
shall advise Toho in writing of its objection within * after
receipt of the Calculation Notice. The date on which the
Parties agree in writing as to such calculation shall be referred to as
the “Calculation Date.”
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8.3
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The
liquidated damages in the amount of the Take or Pay Payment stipulated in
Article 8.2 shall settle all the damages arising from TIMET’s failure to
take delivery of the full amount of the Firm Annual Quantity
*.
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ARTICLE 9.
PAYMENT
Pursuant
to Clause 3.4 of the Consignment Agreement, the payment term for Commodity sold
and delivered to TIMET by Toho pursuant to the Consignment Agreement shall be
within * after the end of the month during which the sale shall have
taken place pursuant to Clause 3.2 of the Consignment Agreement and shall be
effected by bank remittance to such bank account as designated by
Toho.
ARTICLE 10. TITLE AND
RISK
Title to
and risk of loss of or damage to Commodity shall pass from Toho to TIMET,
pursuant to the provisions of the Consignment Agreement.
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11.1
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The
shipment of Commodity hereunder shall be made in accordance with the
delivery schedule in the Annual Confirmation. Toho agrees to deliver the
Commodity within * before or after the delivery schedule in the
Annual Confirmation. If any scheduled shipment (other than due
to Force Majeure) is delayed by more than * from the scheduled
delivery date, and the Commodity held in Consignment is not sufficient to
cover for such late delivery, TIMET may, at its sole election, provide
written notice to Toho of TIMET’s election to (i) *; or (ii) take delivery
of the delayed Commodity within * of receipt of TIMET’s notice
of election, and Toho agrees to supply the Commodity to TIMET on a first
priority basis, with time of the essence in performance, until all TIMET’s
orders have been brought current with the original delivery
schedule. *.
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11.2
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TIMET
shall use commercially reasonable efforts to schedule the shipments of
Commodity to be evenly spread by calendar quarter (and also evenly spread
in each calendar month) during each Contract Year. The Parties
understand, however, that actual quantities of Commodity to be purchased
and taken delivery of by TIMET may vary upward or downward from
quarter-to-quarter and month-to-month, depending on TIMET’s production
requirements and availability of Commodity and on the production of
Commodity at the Toho Facility. For the avoidance of doubt, the
actual quantity of Commodity to be delivered in each Contract Year shall
in no way affect the obligation of TIMET or Toho with regard to delivery
of the entire Firm Annual Quantity throughout the relevant Contract
Year.
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12.1
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Toho
warrants to TIMET that Toho holds and will pass marketable title to the
goods sold under the Consignment
Agreement.
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12.2
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Toho
warrants to TIMET that Commodity shall strictly conform to the applicable
Specification.
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12.3
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In
the event that Commodity sold by Toho to TIMET hereunder does not conform
to the warranty set forth in Article 12.2 above, then Toho shall, at its
sole cost and expense, remove or otherwise dispose of such non-conforming
Commodity and replace it promptly with an equivalent quantity of Commodity
which conforms to such warranty. Toho’s obligation to remove or
dispose of and replace non-conforming Commodity with conforming Commodity
shall not be applicable in the event TIMET fails to give notice of such
non-conformity as provided for in Article
13.
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12.4
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Except
for such warranties, no warranties whatsoever, express or implied, with
respect to any quantities of Commodity delivered to TIMET hereunder are
made by Toho and Toho expressly disclaims any warranty of merchantability,
express, implied or statutory, with respect to such quantities of
Commodity, and further disclaims any warranty of fitness for any
purpose.
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TIMET
shall inspect all Commodity delivered by Toho and inform Toho pursuant to Clause
2.3 of the Consignment Agreement if the Commodity does not conform to the
Specifications.
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ARTICLE 14. TERM AND
TERMINATION
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14.1
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This
Agreement shall be effective as of the 18th
day of December 2009 and remain effective until December 31, 2025 (the
“Termination Date”).
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14.2
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This
Agreement shall terminate upon the occurrence of any of the
following:
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(a)
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the
Termination Date;
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(b)
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exercise
of the right to terminate this Agreement set forth in Article 14.3 or 14.4
below.
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14.3
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If
either Party commits a material breach of this Agreement, the Annual
Confirmation or the Consignment Agreement, the non-breaching Party may
give a written notice demanding the breaching Party to remedy such breach,
if such breach is capable of being remedied. If the breaching
Party fails to remedy the same within ninety (90) days (or fails to
commence efforts to remedy the same within thirty (30) days) after receipt
of such notice or such breach is not capable of being remedied, the
non-breaching Party has a right to terminate this Agreement immediately by
written notice to the breaching
Party.
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14.4
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Either
Party has a right to terminate this Agreement immediately if bankruptcy,
insolvency, reorganization proceedings, or any other proceedings analogous
in nature or effect, are instituted by or against the other Party, or the
other Party is dissolved or liquidated, whether voluntarily or
involuntarily, or if a receiver or trustee is appointed for all or a
substantial part of the assets of the other Party or if the other Party
makes an assignment for the benefit of creditors
generally.
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14.5
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The
termination of this Agreement shall not affect the rights of the Parties
that have accrued hereunder prior to such
termination.
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14.6
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Notwithstanding
Clause 5 of the Consignment Agreement, both Parties agree not to terminate
the Consignment Agreement unless this Agreement is
terminated.
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14.7
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An
obligation to pay under Article 8 or Article 11.1 if accrued prior to the
date of termination of this Agreement, shall survive the termination of
this Agreement.
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The
Parties declare it to be their intention that the provisions of this Agreement
shall operate between them fairly without detriment to the interests of either
Party and this understanding forms the basis upon which this Agreement has been
negotiated and entered into. If, during the course of the performance
of this Agreement, one Party notifies the other Party of its good faith belief
that, due to factors beyond the control of such Party, the terms of contract
contained herein have ceased to be fair or have become inequitable, including,
without limitation, substantial changes in economic circumstances from the
circumstances existing at the date hereof, then the Parties shall discuss the
situation and consider all contents hereof for possible
amendment. There shall be no consequence under this Agreement if no
amendment is made as a result of such discussions.
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ARTICLE 16. FORCE
MAJEURE
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16.1
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Neither
Party shall be liable for a failure to perform or delay in performing all
or any part of this Agreement, the Consignment Agreement, or of any Annual
Confirmation when such failure or delay is due to any cause or
circumstance beyond the reasonable control of such Party including,
without limitation, acts of God, fire, flood, storms, earthquake, typhoon,
tidal wave, plague or other epidemics, laws, governmental orders,
regulations, sanctions or restrictions, war (whether declared or not),
armed conflict, or the serious threat of the same, hostilities,
mobilization, blockade, embargo, detention, revolution, riot, looting,
lockout, strike or other labor dispute or unavailability of transportation
(each an event of “Force Majeure”).
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16.2
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If
any of the events of Force Majeure occurs and the failure or delay caused
thereby cannot be cured within ninety (90) days, any part of the Annual
Confirmation affected thereby shall be deemed not to form a part of such
Annual Confirmation and the Parties shall be discharged from any relevant
obligations thereunder accordingly.
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16.3
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The
Party affected by an event of Force Majeure shall promptly notify the
other Party, in writing, as to its commencement and
termination. The Party so affected shall take commercially
reasonable steps to resume performance hereunder with the least possible
delay.
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16.4
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In
the event of any Force Majeure occurring, both Parties shall use their
commercially reasonable endeavors to find out possible lawful means to
minimize the loss and damage resulting from such circumstances and may
also seek alternative means to give effect to the objects of this
Agreement.
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17.1
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If
there shall be any dispute under this Agreement (excluding that related to
the Price Disagreement set forth in Article 7), the regular
representatives of the Parties shall use their best efforts to resolve the
matter on an amicable basis and in a manner fair to the Parties. If one
Party notifies another Party that a dispute has arisen and the Parties are
unable to resolve such dispute within a period of thirty (30) days from
such notice, then the matter shall be referred to arbitration under
Article 17.2
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17.2
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If
a dispute is not resolved in the manner and within the period described in
Article 17.1, the dispute shall be referred by either Party for final
settlement by arbitration in accordance with the Rules of Arbitration of
the International Chamber of Commerce. One arbitrator appointed in
accordance with said Rules shall decide the matters in
dispute.
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17.3
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The
place of arbitration shall be New York City, New York, USA. The costs of
arbitration, including reasonable attorneys’ fees, shall be awarded as the
arbitrator shall equitably determine. The award shall set forth the legal
and factual bases therefor.
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17.4
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The
award of the arbitrator shall be final and binding and not subject to any
appeal. Judgment on the award may be entered in any court
having jurisdiction thereof or having jurisdiction over the unsuccessful
Party or its assets.
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17.5
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When
adjudicating a dispute or proceeding among the Parties, the arbitrator
shall be instructed to first apply the contractual provisions hereof and
the mutual intent of the Parties as set forth in this Agreement and any
Annual Confirmations that are part of such dispute or
proceeding.
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17.6
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If
a dispute, controversy or claim other than an issue of material breach is
submitted to arbitration pursuant to this Article 17, the Parties, during
the period of such arbitral proceedings and pending the making of an
arbitral award, shall continue to perform their respective obligations
under this Agreement insofar as the circumstances reasonably shall allow
without prejudice to a final adjustment in accordance with the arbitral
award made in respect of that dispute, controversy or
claim.
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ARTICLE 18. GOVERNING
LAW
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This
Agreement and any Annual Confirmation shall be in all respects governed by and
construed in accordance with the laws of the State of New York, USA without
regard to the conflicts of laws principles of England.
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ARTICLE 19. ENTIRE
AGREEMENT
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With the
exception of the Consignment Agreement, this Agreement, including the agreements
represented in the Appendices hereto, constitutes the entire agreement among the
Parties regarding the subject matter contained herein and wholly cancels,
terminates and supersedes all previous negotiations, agreements and commitments,
whether formal or informal, oral or written, with respect to the subject matter
hereof.
This
Agreement shall not be amended, changed or modified in any manner except by an
instrument in writing signed by duly authorized representatives of all the
Parties.
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ARTICLE 21
CONFIDENTIALITY
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21.1
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(a)
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Neither
Party shall disclose to any other person any information relating to or
referring to the matters in this Agreement that such party (the “Receiving
Party”) has received from the other party
except:
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(i)
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to
the extent such information was in the lawful possession of the Receiving
Party without confidentiality restrictions prior to its receipt thereof
from the disclosing Party;
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(ii)
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to
the extent such information is or becomes public knowledge without the
fault of the Receiving Party;
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(iii)
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where
disclosure is required by law or is made in compliance with the order of
any court of competent jurisdiction or by the rules or regulations of any
stock exchange on which any securities of the Parties or any of their
affiliates are registered, or any regulatory or statutory
body;
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(iv)
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in
the case of Toho to its subsidiaries or affiliates, or employees,
consultants, advisors, lawyers, accountants or bankers of any of the
foregoing, provided that such recipients of information are made aware of
the confidentiality of such
information;
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(v)
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in
the case of TIMET, to its subsidiaries, its affiliates or its or its
subsidiaries or affiliates’ employees, consultants, advisors, lawyers,
accountants or bankers, provided that such recipients of information are
made aware of the confidentiality of such
information
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(vi)
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where
it is independently developed by it or any of its affiliates without usage
of any information that is confidential under this
Agreement;
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(vii)
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is
or becomes available to the Receiving Party on an unrestricted basis from
a source having a right to make such disclosure;
or
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(viii)
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is
made available on an unrestricted basis by a third
party.
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|
(b)
|
The
Parties will attempt to limit the exchange of information relating to or
referring to the matters dealt with in this Agreement to only such
information reasonably necessary for the purposes of this
Agreement.
|
|
22.1
|
This
Agreement shall be binding upon and inure to the benefit of the Parties
and their respective successors and permitted
assigns.
|
|
22.2
|
Neither
Party shall assign, transfer or otherwise dispose of its rights or
obligations under this Agreement and the Annual Confirmation, in whole or
in part, without the prior written permission of the other Party which
will not be unreasonably withheld.
|
|
23.1
|
No
failure to exercise or delay in exercising any right or remedy under this
Agreement, the Consignment Agreement, or under any Annual Confirmation by
any Party shall operate as a waiver thereof or of any other right or
remedy which such Party may have hereunder or thereunder, nor shall any
single or partial exercise of such right or remedy preclude any further
exercise thereof or of any other right or remedy which such Party may have
hereunder or thereunder.
|
|
23.2
|
The
rights and remedies provided herein are cumulative and not exclusive of
any rights and remedies provided by law, in equity or
otherwise.
|
In the
event that any provision or any portion of any provision of this Agreement turns
out to be invalid, illegal or unenforceable under any applicable law, such
provision or portion thereof shall be deemed to be deleted from this Agreement
and the validity of the remainder of this Agreement shall remain unaffected
thereby.
|
25.1
|
All
notices, requests or other communications required or permitted to be
given hereunder shall be in writing in the English language and shall be
sent by registered mail, postage prepaid, or e-mail or facsimile (with
confirmation by registered mail, postage prepaid) to the Party at its
address set forth below or to such other address as may from time to time
be notified by any Party to the other in accordance with this Article
25.1:
|
If to
TIMET: Titanium
Metals Corporation
Attn:
General Counsel
3 Lincoln
Centre
0000 XXX
Xxxxxxx, Xxxxx 0000
Xxxxxx,
Xxxxx 00000-0000
Facsimile: (000)
000-0000
With a
copy
to: TIMET
UK Limited
XX Xxx
000, Xxxxxx Xxxxxxxxxx X0 0XX
Attention:
Purchase Manager
Facsimile:
0000-000-0000
If to
Toho
: Toho
Titanium Co., Ltd.
0-0-0
Xxxxxxxxx, Xxxxxxxxx-Xxxx
Xxxxxxxx-Xxxx.
000-0000 Xxxxx
Attention:
General Manager, Titanium Sales Dept.
Facsimile:
81-467-82-6661
With a
copy
to: Toho
Titanium America Co., Ltd.
0000 Xxxx
Xxxx Xxxx., Xxxxx000
Xxxxxxx,
Xxxxx 00000
Attention:
President
Facsimile:
With a
copy
to: Toho
Titanium Europe Co., Ltd.
City
Tower, 00 Xxxxxxxxxx Xxxxxx, XX0X 0XX
Xxxxxx,
XX
Attention:
Managing Director
Facsimile:
|
25.2
|
All
notices shall be deemed to have been given when duly transmitted by e-mail
or facsimile or seven (7) days after such notice has been deposited in the
mail and sent by registered mail as the case may
be.
|
ARTICLE 26.
HEADINGS
The
headings of this Agreement are inserted for convenience of reference only and
shall not affect the construction or interpretation hereof.
ARTICLE 27. LANGUAGE;
CURRENCY
English
shall be the official language of this Agreement. Except as expressly
stated otherwise, all currency figures in this Agreement are expressed in United
States dollars.
ARTICLE 28.
CONFLICTS
If there
is any conflict or difference in interpretation between this Agreement and the
Consignment Agreement, the terms and conditions of this Agreement shall
supersede those of the Consignment Agreement, unless provided otherwise in this
Agreement.
ARTICLE 29.
COUNTERPARTS
This
Agreement may be executed in two or more counterparts each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
ARTICLE 30. TAXES AND
DUTIES
All taxes
and duties imposed on the sale of Commodity to TIMET by Toho hereunder shall be
the responsibility of TIMET; provided, however, that any taxes imposed on Toho’s
income shall be the responsibility of Toho.
ARTICLE 31.
COOPERATION
In the
event that TIMET determines to construct a new titanium sponge plant in the
future (excluding any partnership, joint venture, acquisition or investment with
or in a third party or parties), TIMET agrees to enter into discussions with
Toho concerning possible cooperation between the Parties prior to TIMET’s
construction of such new titanium sponge plant. In the event that
Toho is unable or unwilling to accommodate any new or further supply that TIMET
may desire on terms acceptable to TIMET, Toho agrees to enter into discussions
with TIMET concerning the possibility of participation or cooperation in TIMET’s
plans and location of such new titanium sponge plant. In the event
that Toho determines to construct a new titanium sponge plant in the future
(excluding any partnership, joint venture, acquisition or investment with or in
a third party or parties), Toho agrees to enter into discussions with TIMET
concerning possible cooperation between the parties prior to Toho’s construction
of such new titanium sponge plant. For purposes of clarity, neither
party is obligated by the provisions of this Article 31 to continue discussions
beyond an initial meeting or to enter into any agreement with the other party
concerning the subject matter hereof.
ARTICLE 32. APPOINTMENT OF
AGENT
TIMET
agrees that Toho will be permitted to appoint Mitsui EUROPE or its affiliates as
its agent to perform certain services under this Agreement (without cost to
TIMET), including but not limited to, delivery and shipment of the Commodity
hereunder, provided, however, that Toho shall remain obligated to TIMET
hereunder for all such services performed by Mitsui EUROPE.
ARTICLE 33. APPOINTMENT OF
DISTRIBUTORS
TIMET
agrees that Toho will be permitted to appoint Toho Titanium America Co., Ltd.
and Toho Titanium Europe Co., Ltd., which are both wholly owned subsidiaries of
Toho, as its distributors of Commodity.
|
|
[Signature
page follows.]
|
IN
WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized representatives on the day and year first above
written.
Toho
Titanium Co., Ltd.
By: /s/
X. Xxxxxxxx
Name: Xxxxxxxx
Xxxxxxxx
Title: Senior
Executive Managing Officer
Titanium
Metals Corporation
By: /s/
Xxxxx X. Xxxxxx
Name: Xxxxx
X. Xxxxxx
Title:
Vice President
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE:
1 of 6
|
|
|
1.1
|
This
specification covers the manufacture of premium quality titanium sponge
produced by the Vacuum Distillation Process for use in making titanium
alloy products for premium grade aerospace
applications.
|
|
|
1.2
|
This
product shall be controlled by a written Method of Manufacture agreed
between supplier and TIMET. No change shall be made to the
Method of Manufacture without prior approval by
TIMET.
|
|
|
1.3
|
This
is a TIMET designated Class “A” raw
material.
|
The
manufacturer, defined throughout this specification as the supplier, shall
explicitly incorporate this specification, RMS 71.4 and revision number in all
quotations, certification and acknowledgements.
|
|
3.1
|
TIMET
RMS 1000 Critical
Aerospace Application Raw Material Quality Systems Requirements
(latest revision).
|
|
|
3.2
|
PWA
1201, Titanium
Sponge (latest revision).
|
|
|
3.3
|
PWA
300, Control of
Materials, Processes and Parts (latest
revision)
|
|
|
3.4
|
PWA
370, Engineering Source
Approval (latest revision)
|
|
|
3.5
|
GE
P1TF95, Control of
Materials Used in the Melting of Premium Quality Titanium Base
Metals (latest revision).
|
Material
shall conform to the percentages by weight shown in Table
I. Determination shall be by applicable ASTM, spectrographic or other
analytical methods acceptable to TIMET.
|
|
4.2
|
Table
1: Chemical
Analysis
|
The
following elements shall be determined and shall not exceed the limits detailed
below. *
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE: 2
of 6
|
Table 1
|
Element
|
Blend wt%
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
Should
any of the elements fall outside these limits, the Supplier must submit a
Nonconforming Material Request form for TIMET approval as defined in RMS
1000.
The
hardness of each lot of material shall be determined by methods agreed between
the Supplier and TIMET. *;
determination is not required for routine acceptance.
|
|
4.4.1
|
Sponge
shall be uniform in appearance, thoroughly blended and free from high
density inclusions, oxides, nitrides, slag particles, discolored
particles, non-metallic and all other foreign
materials.
|
|
|
4.4.2
|
Sponge
particles from each lot (batch) or blend of lots shall be visually
inspected to an established inspection procedure to a frequency as agreed
in the Method of Manufacture to remove any particle(s) of unusual color or
physical appearance. Any particle(s) that are suspected of burn
shall be sent for analysis. Only the portion of the sponge
particle that exhibits the unusual color or physical appearance shall be
tested for nitrogen.
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE: 3
of 6
|
|
|
4.4.3
|
No
sponge shall be used when *.
|
|
|
4.4.4
|
No
sponge shall be used which has been subjected to a fire or has been
produced in equipment that has experienced a fire until that equipment has
been cleaned, inspected for damage and has produced sponge not used for
product meeting this specification.
|
|
|
4.4.5
|
Specific
procedures must be available dealing with control of any dense metal tools
used in the processing/inspection areas, e.g. tungsten or tungsten
carbide.
|
|
|
4.4.8
|
Every
effort must be made to keep 4.4.6 and 4.4.7 to a minimum and despatch all
of one (1) batch at the same time if
possible.
|
The
titanium sponge shall be in the particle size range listed below.
The
following size ranges shall be reported on the certificate of
analysis:
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE: 4
of 6
|
*
A
representative sample will be obtained by abstracting a representative portion
of the stream of material, when lot is being fed into drums during
packaging. The size of the sample will be defined in the approved
process outline. The minimum size of the sample sent to TIMET and
removed from the representative portion will be 5kg, and this will be sent with
the lot in drum 1. For the first delivery of sponge every year, and upon request
at any other time, the supplier will make available to TIMET a slice of the
manufacturers evaluation ingot. This shall be sent to the attention of the Raw
Materials Quality Engineer of TIMET UK.
The body of each drum
shall be legibly marked with the words “Titanium Sponge”, along with the lot
number, the drum number and the supplier of the sponge. The lot
number shall be repeated on the diametrically opposite side to the primary
markings, on the top third of the drum in characters at least 40mm (1.6”)
high.
*
|
|
7.1
|
All
containers and shipping papers must be in compliance with applicable
regulations. The product shall be prepared for shipment in
accordance with commercial practice and in compliance with applicable
rules and regulations pertaining to handling, packaging and transportation
to ensure carrier acceptance and safe
delivery.
|
|
|
7.2
|
For
shipment overseas, an entire blend shall be contained in one overseas
shipping container.
|
|
|
7.3
|
Within
each delivery the drums will be arranged in order of lot and drum
number.
|
|
|
7.4
|
The
method of packing and delivery will not be altered without the prior
agreement of TIMET.
|
|
|
7.5
|
The
samples that are required by Section 4 of this specification shall be
packed in No.1 drum of the lot.
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE: 5
of 6
|
The
manufacturer will send to TIMET, FAO the Technical Officer – Raw Materials,
prior to, or at the time of despatch a certificate of analysis in duplicate
stating the TIMET specification number and giving:
|
|
8.1
|
Average
values from the chemical analysis of the blends, along with particle size
analysis and hardness of each lot as per section 4 of this
specification.
|
|
|
8.2
|
Statement
that material meets this RMS, RMS 1000, XXX 0000, XXX 000, XXX 000 and GE
P1TF 95 and material has been manufactured in accordance with the
applicable method of manufacture and/or applicable end user agreements. If
a non-integrated process is used, this must be
stated.
|
|
|
8.3
|
Details
of any non-conformances and/or process change requests that apply on the
first lot.
|
Per RMS
1000.
Per RMS
1000.
|
|
11.1
|
The
order of precedence shall be any applicable agreements between TIMET and
the supplier, the requirements listed on the TIMET Purchase Order or
contract, RMS 71.4 (latest revision) and RMS 1000 (latest
revision).
|
|
|
11.2
|
Acceptance
of this RMS by the supplier must be acknowledged and a signed copy of such
acceptance shall be returned to TIMET Purchasing Manager. The
acceptance must indicate the date from which material to the new
specification will be despatched to
TIMET.
|
12 REVISION
HISTORY:
|
Revision
3:
|
15
Dec 08
|
Major
rewrite to bring specification up to date and more in-line with all other
raw material specifications.
|
APPROVED:
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.4
|
|
REV: 3
|
|
PREMIUM
GRADE
TITANIUM
SPONGE
CLASS
A RAW MATERIAL
|
DATE:15
Dec 08
|
|
|
PAGE: 6
of 6
|
|
XX
Xxxxxxxxxxx
|
15/12/08
|
|
Xxxx
XXXXXX
|
15
Dec 08
|
|
Quality
and Technology Manager, Witton
|
Date
|
|
Quality
and Technology Manager, Xxxxxx
|
Date
|
|
Xxxxxxx
Xxxxxxx
|
12
Dec 08
|
|
JR
Xxxxxx
|
10
Dec 08
|
|
Quality
and Technology Manager, Morgantown
|
Date
|
|
Quality
and Technology Manager, Xxxxxxxxx
|
Date
|
|
J
Horodecky
|
15
Dec 08
|
|
Xxxxxxxx
Xxxxxxx
|
12
Dec 08
|
|
Purchasing
Manager, Europe
|
Date
|
|
Purchasing
Manager, Xxxxxxxxx
|
Date
|
|
Xxxxxxxx
X. Xxxxx, III
|
12/12/08
|
|
|
|
|
Purchasing
Manager, Morgantown
|
Date
|
|
|
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE:
1 of 6
|
|
|
1.1
|
This
specification covers the manufacture of premium quality titanium sponge
produced by the Vacuum Distillation Process for use in making titanium
alloy products for premium grade aerospace
applications.
|
|
|
1.2
|
This
product shall be controlled by a written Method of Manufacture agreed
between supplier and TIMET. No change shall be made to the
Method of Manufacture without prior approval by
TIMET.
|
|
|
1.3
|
This
is a TIMET designated Class “A” raw
material.
|
The
manufacturer, defined throughout this specification as the supplier, shall
explicitly incorporate this specification, RMS 71.5 and revision number in all
quotations, certification and acknowledgements.
|
|
3.1
|
TIMET
RMS 1000 Critical
Aerospace Application Raw Material Quality Systems Requirements
(latest revision).
|
|
|
3.2
|
PWA
1201, Titanium
Sponge (latest revision).
|
|
|
3.3
|
PWA
300, Control of
Materials, Processes and Parts (latest
revision)
|
|
|
3.4
|
PWA
370, Engineering Source
Approval (latest revision)
|
|
|
3.5
|
GE
P1TF95, Control of
Materials Used in the Melting of Premium Quality Titanium Base
Metals (latest revision).
|
Material
shall conform to the percentages by weight shown in Table
I. Determination shall be by applicable ASTM, spectrographic or other
analytical methods acceptable to TIMET.
|
|
4.2
|
Table
1: Chemical
Analysis
|
The
following elements shall be determined and shall not exceed the limits detailed
below. *.
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE:
2 of 6
|
Table 1
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
|
*
|
*
|
The
maximum Iron plus Nickel content of the sponge shall be reported separately as
follows: *
Should
any of the elements fall outside these limits, the Supplier must submit a
Nonconforming Material Request form for TIMET approval as defined in RMS
1000.
The
hardness of each lot of material shall be determined by methods agreed between
the Supplier and TIMET. *;
determination is not required for routine acceptance.
|
|
4.4.1
|
Sponge
shall be uniform in appearance, thoroughly blended and free from high
density inclusions, oxides, nitrides, slag particles, discolored
particles, non-metallic and all other foreign
materials.
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 3
of 6
|
|
|
4.4.2
|
Sponge
particles from each lot (batch) or blend of lots shall be visually
inspected to an established inspection procedure to a frequency as agreed
in the Method of Manufacture to remove any particle(s) of unusual color or
physical appearance. Any particle(s) that are suspected of burn
shall be sent for analysis. Only the portion of the sponge
particle that exhibits the unusual color or physical appearance shall be
tested for nitrogen.
|
|
|
4.4.4
|
No
sponge shall be used which has been subjected to a fire or has been
produced in equipment that has experienced a fire until that equipment has
been cleaned, inspected for damage and has produced sponge not used for
product meeting this specification.
|
|
|
4.4.5
|
Specific
procedures must be available dealing with control of any dense metal tools
used in the processing/inspection areas, e.g. tungsten or tungsten
carbide.
|
|
|
4.4.8
|
Every
effort must be made to keep 4.4.6 and 4.4.7 to a minimum and despatch all
of one (1) batch at the same time if
possible.
|
The
titanium sponge shall be in the particle size range listed below.
The
following size ranges shall be reported on the certificate of
analysis:
*
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 4
of 6
|
A
representative sample will be obtained by abstracting a representative portion
of the stream of material, when lot is being fed into drums during
packaging. The size of the sample will be defined in the approved
process outline. The minimum size of the sample sent to TIMET and
removed from the representative portion will be 5kg, and this will be sent with
the lot in drum 1. For the first delivery of sponge every year, and
upon request at any other time, the supplier will make available to TIMET a
slice of the manufacturers evaluation ingot. This shall be sent to the attention
of the Raw Materials Quality Engineer of TIMET UK.
The body of each drum
shall be legibly marked with the words “Titanium Sponge”, along with the lot
number, the drum number and the supplier of the sponge. The lot
number shall be repeated on the diametrically opposite side to the primary
markings, on the top third of the drum in characters at least 40mm (1.6”) high.
Each drum will have a yellow band, with the marking `SP80`, `HP120` or `HP250`
(depending on the particular grade of sponge) clearly written on the drum
body.
|
|
7.1
|
All
containers and shipping papers must be in compliance with applicable
regulations. The product shall be prepared for shipment in
accordance with commercial practice and in compliance with applicable
rules and regulations pertaining to handling, packaging and transportation
to ensure carrier acceptance and safe
delivery.
|
|
|
7.2
|
For
shipment overseas, an entire blend shall be contained in one overseas
shipping container.
|
|
|
7.3
|
Within
each delivery the drums will be arranged in order of lot and drum
number.
|
|
|
7.4
|
The
method of packing and delivery will not be altered without the prior
agreement of TIMET.
|
|
|
7.5
|
The
samples that are required by Section 4 of this specification shall be
packed in No.1 drum of the lot.
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 5
of 6
|
The
manufacturer will send to TIMET, FAO the Technical Officer – Raw Materials,
prior to, or at the time of despatch a certificate of analysis in duplicate
stating the TIMET specification number and giving:
|
|
8.1
|
Average
values from the chemical analysis of the blends, along with particle size
analysis and hardness of each lot as per section 4 of this
specification.
|
|
|
8.2
|
Statement
that material meets this RMS, RMS 1000, XXX 0000, XXX 000, XXX 000 and GE
P1TF 95 and material has been manufactured in accordance with the
applicable method of manufacture and/or applicable end user agreements. If
a non-integrated process is used, this must be
stated.
|
|
|
8.3
|
Details
of any non-conformances and/or process change requests that apply on the
first lot.
|
Per RMS
1000.
Per RMS
1000.
|
|
11.1
|
The
order of precedence shall be any applicable agreements between TIMET and
the supplier, the requirements listed on the TIMET Purchase Order or
contract, RMS 71.5 (latest revision) and RMS 1000 (latest
revision).
|
|
|
11.2
|
Acceptance
of this RMS by the supplier must be acknowledged and a signed copy of such
acceptance shall be returned to TIMET Purchasing Manager. The
acceptance must indicate the date from which material to the new
specification will be despatched to
TIMET.
|
12 REVISION
HISTORY:
|
Revision
4:
|
15
Dec 08
|
Major
rewrite to bring specification up to date and more in-line with all other
raw material specifications.
|
APPROVED:
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 6
of 6
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XX
Xxxxxxxxxxx
|
15/12/08
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Xxxx
XXXXXX
|
15
Dec 08
|
|
Quality
and Technology Manager, Witton
|
Date
|
|
Quality
and Technology Manager, Xxxxxx
|
Date
|
|
Xxxxxxx
Xxxxxxx
|
12
Dec 08
|
|
JR
Xxxxxx
|
10
Dec 08
|
|
Quality
and Technology Manager, Morgantown
|
Date
|
|
Quality
and Technology Manager, Xxxxxxxxx
|
Date
|
|
J
Horodecky
|
15
Dec 08
|
|
Xxxxxxxx
Xxxxxxx
|
12
Dec 08
|
|
Purchasing
Manager, Europe
|
Date
|
|
Purchasing
Manager, Xxxxxxxxx
|
Date
|
|
Xxxxxxxx
X. Xxxxx, III
|
12
Dec 08
|
|
|
|
|
Purchasing
Manager, Morgantown
|
Date
|
|
|
|
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 7
of 6
|
Appendix
B: Consignment Agreement
|
[Missing Graphic Reference]
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 8
of 6
|
Appendix
C: Form of Annual Confirmation
Titanium Metals Corporation/TIMET UK
Ltd.
____________
____________
____________
(Insert Date)
Dear
Sirs:
ANNUAL
CONFIRMATION
Please
refer to the Titanium Sponge Supply Agreement dated (Insert Date) and the Titanium
Sponge Consignment Agreement dated (Insert Date) between you
(“TIMET”)
and us (“Toho”). The
capitalized terms used in this letter shall have the same meaning as defined in
the aforementioned Agreements. For the avoidance of doubt, the
reference herein to the term “Commodity” shall, where required, include the
reference to the term “Material” in the Titanium Sponge Consignment
Agreement.
It is hereby agreed in accordance with
Article 4 of the Titanium Sponge Supply Agreement that the following shall apply
to deliveries and withdrawals of the Commodity to and from the Consignment Place
during the period 1st
January 200_ through 31st
December 20__ in accordance with the terms of the Titanium Sponge
Consignment Agreement.
1. Quantity
:
As agreed
pursuant to Article 5 of the Titanium Sponge Supply Agreement, Toho shall
deliver the following quantities of the Commodity to TIMET during the period
1st
January 20__ and 31 December 200_:
-
Structural Grade: (insert
quantity)
- Disc
Quality: (insert
quantity)
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE: 9
of 6
|
-
SP80: (insert
quantity)
-
HP120: (insert
quantity)
-
HP250: (insert
quantity)
Total (insert
quantity)
TIMET
agrees to purchase the
Commodity in accordance with the terms and conditions of the Titanium Sponge
Consignment Agreement.
2. Price :
As agreed
pursuant to Article 6 and Article 7 (if applicable) of the Titanium Sponge
Supply Agreement the following Firm Prices in US$ shall be applied to deliveries
into the consignment from 1 January 20__ to 31 December 20__ :
-
Structural
Grade: US$ /Kg DDU
Consignment Place
- Disc
Quality US$ /XX XXX
Xxxxxxxxxxx Xxxxx
-
XX00: US$ /Xx XXX
Xxxxxxxxxxx Xxxxx
-
XX000: US$ /Xx
XXX Xxxxxxxxxxx Xxxxx
-
XX000: US$ /Kg DDU
Consignment Place
3. Deliveries : Toho
shall use reasonable endeavour to ship the Commodity from Japan by sea to meet
the target delivery schedule as specified in the attachment no. 1 to this Annual
Confirmation. However Toho does not guarantee to meet the exact date
but agrees to deliver the Commodity within * before or after the
scheduled date. However, if any scheduled shipment (other than due to Force
Majeure) is delayed by more than sixty * from the scheduled delivery
date, and the Commodity held in Consignment is not sufficient to cover for such
late delivery, TIMET may at its sole election, provide written notice to Toho of
TIMET’s election to (i) *; or (ii) take the delivery of the delayed Commodity
within forty-five (45) days of receipt of TIMET’s notice of election, and Toho
agrees to supply the Commodity to TIMET on a first priority basis, with time of
the essence in performance, until all TIMET’s orders have been brought current
with the original delivery schedule. *.
4. Consignment Stock at 31/December
200_: Any and all of the Commodity in the Consignment Stock at
31 December 20__ shall be carried over to 20__, and consumed by TIMET in
accordance with the terms and conditions of the Titanium Sponge Consignment
Agreement. The applicable price for any carried over quantity shall be the Firm
Price applicable at the time of the delivery to the Consignment
Stock.
|
|
RAW
MATERIAL SPECIFICATION
|
RMS: 71.5
|
|
REV: 4
|
|
TITANIUM
SPONGE
PREMIUM
QUALITY
SUPER/HIGH
PURITY (SP80/HP120, HP250)
|
DATE:15
Dec 08
|
|
|
PAGE:
10 of 6
|
5. Payment : Payment of the Firm
Price by TIMET to Toho shall be made within 60 days after the end of the month
during which the sale shall have taken place pursuant to Clause 3.2 of the
Titanium Sponge Consignment Agreement and shall be effected by bank remittance
to such bank account as designated by Toho.
If the
foregoing meets with your approval, would you sign and return the duplicate of
this letter enclosed herewith.
Yours
faithfully,
Agreed by
Toho
Titanium Co.,
Ltd. Titanium
Metals Corporation
| | | | |
|
Name:
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Name:
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|
Title:
| |
Title:
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