Amendment to Supply Agreement between TBC Corporation and Cooper Tire & Rubber Company (May 17, 2000)

Contract Categories: Business Finance › Modification Agreements
Summary

TBC Corporation and Cooper Tire & Rubber Company have amended their 1994 agreement regarding the supply of Sigma brand tires. Cooper agrees to purchase 91 new molds for tire production, with the cost dependent on TBC's purchase volume from 2000 to 2003. If TBC buys at least 18,905,012 units during this period, it can buy the molds for $1.00 after December 31, 2003. If not, or if the agreement ends early through no fault of Cooper, TBC must buy the molds for $1,311,300. All other terms remain unchanged.

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EX-10.1 3 g72756ex10-1.txt AMENDMENT TO AGREEMENT Exhibit 10.1 AMENDMENT TO AGREEMENT This Amendment is effective as of May 17, 2000 by and between TBC CORPORATION ("TBC") and COOPER TIRE & RUBBER COMPANY ("COOPER") and modifies a certain Agreement dated January 1, 1994, by and between the parties hereto (the "Agreement"), as follows: Section 2 of the Agreement shall be amended to include the following provisions at the end of that Section: "Without affecting any other provision herein, TBC and COOPER agree that with respect to the Sigma brand line of Tires to be manufactured and sold by COOPER and purchased by TBC, and subject to the conditions set forth in this Article 2, Cooper shall purchase the following molds:
SA Code Line Name New Molds Cost 51 Stampede Radial H/T 10 $ 147,000 21/46 Stampede Radial A/S 23 338,100 19/45 Stampede Radial A/T 25 367,500 08/09 Sigma Supreme TR 33 458,700 TOTALS: 91 $1,311,300
provided however, that Cooper's agreement to purchase such molds is based on TBC's commitment to increase its purchases of Tires from Cooper during the years 2000 through 2003 and to purchase equivalent units as follows: Year 1 (2000) 4,591,620 Year 2 (2001) 4,678,445 Year 3 (2002) 4,769,611 Year 4 (2003) 4,865,336 TOTAL: 18,905,012
Cooper agrees that if TBC's aggregate purchases for the years 2000 through 2003 meet or exceed the total equivalent units of 18,905,012, promptly after December 31, 2003 Cooper shall sell the ninety-one (91) molds as set forth in this Article 2, and TBC shall buy such molds for the total purchase price of one dollar ($1.00); provided however, if TBC's aggregate purchases for the years 2000 through 2003 do not meet or exceed the total equivalent units of 18,905,012, promptly after December 31, 2003 Cooper shall sell the ninety-one (91) molds as set forth in this Article 2, and TBC shall buy such molds for the total purchase price of $1,311,300; provided further, if the Agreement shall terminate prior to December 31, 2003 through no fault of Cooper, the purchase of the molds by TBC for $1,311,300 shall occur promptly upon such termination." -16- page 2 AMENDMENT TO AGREEMENT The remaining terms and conditions of the Agreement shall remain unchanged. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized officers as of the day and year first written above. ATTEST: TBC CORPORATION By: /s/ Virginia Taylor By: /s/ J. Glen Gravatt ------------------------ -------------------------- Name: J. Glen Gravatt ------------------------ Title: Sr. Vice President ----------------------- ATTEST: COOPER TIRE & RUBBER COMPANY By: /s/ John A. Zito By: /s/ John Fahl ------------------------- -------------------------- Name: John Fahl ------------------------ Title: Vice President ----------------------- By: /s/ E.B. White -------------------------- Name: Eileen B. White ------------------------ Title: Controller ----------------------- -17-