Document:

EX-10.1

 

Exhibit 10.1.

Limited Waiver of Contract Provision

     WHEREAS, Huntington Preferred Capital Holdings, Inc. (“Holdings”) acquires from time to time
participation interests in loans originated by The Huntington National Bank (the “Bank”) and its
affiliates under a Third Amended and Restated Loan Participation Agreement between Holdings and the
Bank dated May 12, 2005 (the “Holdings Participation Agreement”); and

     WHEREAS, Huntington Preferred Capital, Inc. (the “Corporation”) acquires from time to time
participation interests in loans originated by the Bank and its affiliates under a Third Amended
and Restated Loan Subparticipation Agreement between the Corporation and Holdings dated May 12,
2005, (the “HPCI Subparticipation Agreement”), and an Second Amended Loan Participation Agreement
between the Corporation and the Bank dated May 12, 2005 (the “HPCI Participation Agreement”); and

     WHEREAS, pursuant to the terms of the Holdings Participation Agreement, the HPCI
Subparticipation Agreement and the HPCI Participation Agreement (collectively the “Agreements”), at
the time of any transfer of a participation interest, the transferor will assign to transferee
transferee’s share of the transferor’s right, title and interest in the loans including any
associated origination fees; and

     WHEREAS, pursuant to the terms of the Agreements, the Bank performs servicing of the loans
underlying the participations held by the transferees in exchange for a loan servicing fee; and

     WHEREAS, the amount and terms of the loan servicing fee payable to the Bank are determined
from time to time by the mutual agreement of the Bank and the Corporation in the case of
participation interests transferred under the HPCI Participation Agreement, and by the mutual
agreement of the Bank and Holdings in the case of participation interests transferred under each of
the other Agreements, and shall be subject to review and adjustment at any time.

     WHEREAS, the Corporation is the ultimate transferee of the participation interests transferred
under all of the Agreements; and

     WHEREAS, the Corporation has determined in connection with its recent review of loan servicing
fees that, in lieu of paying higher servicing fees to the Bank with respect to commercial and
commercial real estate loans, the Corporation will continue to waive its right as transferee to
receive any origination fees associated with participation interests in commercial and commercial
real estate loans transferred on or after July 1, 2004, until such time as the Corporation,
Holdings and the Bank agree otherwise.

     NOW, THEREFORE, the undersigned hereto agree as follows:

	 	1.	 	The Corporation, and Holdings each agree to waive their respective rights as
transferees under the Agreements to receive any origination fees associated with
participation interests in commercial and commercial real estate loans transferred on
or after July 1, 2004, until such time as this waiver is terminated by the subsequent
agreement of each of the Corporation, and Holdings.
	 
	 	2.	 	This waiver does not effect the transfer of origination fees with respect to
loan participation interests in loans other than commercial and commercial real estate
loans.

 

 

	 	 	 	 	 	 	 
	 	 	Huntington Preferred Capital, Inc.
	 

	 	By:
	 	/s/ Donald R. Kimble	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Donald R. Kimble	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	President	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:
	 	August 13, 2007	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	Huntington Preferred Capital Holdings, Inc
	 

	 	By:
	 	/s/ Michael S. Mayer	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael S. Mayer	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:
	 	August 13, 2007	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 
	Acknowledged by:	 	The Huntington National Bank
	 

	 	By:
	 	/s/ Edward J. Kane	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Edward J. Kane	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 
	 

	 	Date:
	 	August 13, 2007EX-10(a)

 

Exhibit 10(a)

[*] TEXT OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Confidential Treatment Requested by Core Molding Technologies, Inc.

Under 17 C.F.R. Sections 200.80(B)(4), 200.83 and 240.24b-2

Supply and Management Agreement

     This Supply and Management Agreement (“Agreement”) is made on June 1, 2006, by and
between PACCAR Inc, a Delaware corporation (“PACCAR”), and Core Molding Technologies, Inc., a
Delaware corporation (“Core”).

The parties agree as follows:

     1. Purchase and Sale of Products and Parts. During the term of this Agreement and any
extensions thereof, Core agrees to sell to PACCAR all of its requirements for the products
described in Schedule A (“Products”) as PACCAR may order from time to time. “PACCAR” shall include
Kenworth, Peterbilt and PACCAR of Canada, LTD. Kenworth Mexicana S.A. de C.V., PACCAR Parts
divisions and subsidiaries, including PACCAR Parts U.S., PACCAR Parts of Canada, PACCAR Parts
Mexico, S.A. de C.V., and PACCAR Parts Australia (collectively, “PACCAR Parts”) may purchase
Products and the non-production products listed on Schedule C (“Parts”) on a non-requirements basis
from Core under the terms and conditions of this Agreement. Notwithstanding the above, Kenworth
may purchase Products for its Renton facility on a non-requirements basis.

     2. Purchase of CFG Assets. Core agrees to purchase, on an as-is basis, the PACCAR owned
assets, excluding PACCAR-owned tooling, located at Core Composites Cincinnati, as set forth in
Schedule B for [*****], which will include manufacturing equipment as well as any documentation
relating to the operation or maintenance of the PACCAR-owned assets that PACCAR may have in its
possession. On January 1, 2008, PACCAR agrees the Equipment in Schedule B will be free of
encumbrances and will remain the property of Core.

     3. Term of Agreement. This Agreement commences on June 1, 2006, and expires on June 30, 2010,
unless earlier terminated as provided in this Agreement. By mutual written agreement of the
parties, this Agreement may be extended by one year. If requested in writing by PACCAR, Supplier
shall, upon expiration of the Agreement cooperate with PACCAR in the orderly and smooth transition
of business to a new supplier, in the manner set forth in Section 36.

     4. Pricing. [*****]

 

			
	*****	 	Confidential Treatment Requested by Core Molding Technologies, Inc.

 

 

     5. Incremental Business. [*****]

 

			
	*****	 	Confidential Treatment Requested by Core Molding Technologies, Inc.

 

 

     6. Most Favored Customer. Core will provide the Products and Parts to PACCAR on terms and
conditions that are no less and no more favorable to PACCAR than those of any other of the Core’s
OEM customers purchasing comparable quantities of the same or similar products. With respect to
the Products, these terms and conditions include, but are not limited to: price, price discounts,
rebates, marketing and promotional incentives, technology, and performance, weight, delivery times
and availability, warranty and service.

     7. Cost Management Program.

     a. Core shall propose cost savings ideas in accordance with PACCAR’s Cost Management
Partnership (“CMP”) program. The CMP program is a method by which Core reduces Cost to
PACCAR through the implementation of approved product or process changes and improvements
for Core and PACCAR. “Cost” includes the cost PACCAR pays for the activity, Product, Part
or service from Core, as well as any

 

			
	*****	 	Confidential Treatment Requested by Core Molding Technologies, Inc.

3

 

associated costs for PACCAR to procure or assemble the Products or other products into the
vehicle, such as PACCAR labor costs, or funding for tooling or testing PACCAR would be
required to fund. Cost savings is calculated on an annualized basis, and Core will be
credited for such proposals in the year (from the commencement date of the Agreement) the
proposal is submitted by Core and accepted by PACCAR. Core will receive credit upon
acceptance by PACCAR Corporate Purchasing whether or not changes are implemented during that
year.

     b. Core shall submit CMP proposals based on the previous years’ sales, by the
31st day of December which, when implemented, will decrease the Cost of the
Products, service or activity in an appropriate verifiable and quantified manner to PACCAR
each year. The total value of CMP proposals to be submitted by Core shall be, at [*****] of
PACCAR’s aggregate purchases of products and parts in the prior calendar year from all Core
facilities (the “CMP Goal”).

          PACCAR shall review all CMP proposals and will notify Core of its acceptance or
rejection (at PACCAR’s sole discretion) within sixty (60) calendar days of receiving such
proposals. Upon written approval of a proposal by PACCAR, Core shall begin implementation
of those aspects of the proposal that are within the control of Core. Upon implementation
of the proposal, the price listed on Schedule A and/or C for each affected Product and/or
Part shall be adjusted to reflect the Cost savings to Core after recovery of non-recurring
expenses (e.g., tooling amortization). If, in any year, Core meets or exceeds the CMP goal,
the excess above the CMP Goal shall be [*****] for the following year’s CMP goal.

          PACCAR agrees to accept the following as CMP ideas, as well as any others that fall
within PACCAR’s CMP guidelines:

	 	(i)	 	Cost reductions to the [*****] or its
tooling that are received after June 10, 2005. All design changes
after June 10, 2005 that impact part or tooling costs will be quoted
using the same quotation form and Core will receive full CMP credit for
any design changes from Core’s suggestions that reduce PACCAR’s costs,
limited to on-site engineering support, tooling price reductions,
weight reductions, material reductions, improvements in plant labor,
handling and line sequencing. The last item on the form will include
the discount offered by Core in their CMP submission.
	 
	 	(ii)	 	Cost reductions resulting from moving
production of [*****] from [*****] to [*****]. In this case, CMP
valuation shall be calculated as the sum of the [*****].
	 
	 	(iii)	 	Price reductions resulting from [*****] plus any repair and maintenance adjustments.

     c.  [*****]

 

			
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4

 

     8. PACCAR Parts Supplier Guidelines. Unless otherwise specified, Core shall comply with the
PACCAR Parts Supplier Guidelines (the “Guidelines”) attached as Schedule D. In case of a conflict
between the provisions of this Agreement and the Guidelines, this Agreement shall govern. To the
extent possible, the Guidelines and this Agreement shall be construed as being mutually consistent.

     9. Quality and On-Time Delivery Performance. Core agrees to maintain the current quality and
on-time delivery levels as Cincinnati Fiberglass at Core Composites Cincinnati through April 1,
2006. Current levels are as follows:

	 	 	 	 	 
	3 month rolling average PPM:
	 	 	[*****]	 
	On-Time Delivery:
	 	 	[*****]	 

Core and PACCAR will jointly develop quarterly quality and delivery improvement targets and
implementation schedules that will become effective on April 3, 2006, and remain in effect
for the remainder of the term of the Agreement.

     a.  [*****]

     b.  [*****]

     c. If Core fails to meet applicable delivery and quality targets for any Product for
two (2) consecutive quarters, then, in addition to any other remedies available to it,
PACCAR may, on [*****]. In that event, Core will cooperate fully with the move of
Product(s) and Part(s), tooling and equipment in a manner that allows for a smooth
transition with no disruption to PACCAR truck production.

Any plant rework or warranty on Cincinnati Fiberglass Products or work in progress produced prior
to August 1, 2005, including those from the bank build, along with any past charges, are not Core’s
responsibility and accordingly will not be charged to Core.

     10. Six Sigma Program. Core shall enroll at least one (1) black belt in PACCAR’s Six Sigma
Training Program in 2005 and at least two (2) black belts in PACCAR’s Six Sigma Training Program in
2006. Each black belt will be expected to develop, work and complete multiple projects each year
that benefit both PACCAR and Core.

     11. Payment Terms. Payment terms are net [*****] from the date of invoice. All prices shall
be F.O.B. Core’s manufacturing location.

 

			
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     12. Set-Off. In addition to any right of set-off provided by law, all amounts due Core shall
be considered net of indebtedness of Core to PACCAR, and PACCAR may deduct any amounts due or about
to become due from Core to PACCAR from any sums due or to become due from PACCAR. The parties
agree that any set-off should be preceded by good faith negotiations to resolve any disputes that
might lead to PACCAR’s exercising its right to set-off.

     13. Changes. With regard to unreceived Products, PACCAR’s authorized representative may, by
change order, make changes, at any time, in the methods of packing and shipping, and the time and
place of delivery of Products and Parts. Core shall notify PACCAR within [*****] after receipt of
the order if the change will affect time of performance, or the amount to be paid by PACCAR
hereunder, and an adjustment will be negotiated.

     14. Lead-Time.

     a. Standard lead-time for delivery of Products for production shall be [*****] from
receipt of release authorization from PACCAR’s manufacturing facility. If for any reason
other than tooling capacity limitations, Core fails to have Product available for shipment
at the time specified, PACCAR may, at its option, approve a revised delivery schedule,
request shipment via air or expedited routing (at Core’s expense), or terminate the order
without any liability. [*****].

     b. Standard lead-time for delivery of Parts to PACCAR Parts shall be [*****] from
receipt of order from PACCAR Parts. Any Parts ordered within full lead-time and not shipped
within [*****] of the requested ship date shall be shipped by [*****] to the specified
PACCAR Parts destination.

15. Packing, Marking and Shipping.

     a. All Products shall be properly packaged to prevent damage or deterioration and to
obtain the lowest transportation rates in accordance with PACCAR Supplier Packaging
Guidelines, Part 1 as set forth in Schedule E.

     b. Each packing list, bill of lading, invoice and correspondence shall bear the
applicable purchase order number (or the release order number applicable to each shipment
for blanket purchase orders). Minimum requirements for the packing lists and bill of ladings
are detailed in the PACCAR Supplier Packaging Guideline, Part 2 as set forth in Schedule E.

     c. Bar code shipping labels are required for shipments to PACCAR Production facilities.
Bar code shipping label requirements are established in the PACCAR Supplier Packaging
Guidelines, Part 2, as set forth in Schedule E.

     d. All Products shall be properly identified as to country of origin and all
documentation in connection with the Products shall comply with all applicable governmental
regulations, and Core shall indemnify and save PACCAR harmless from

 

			
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reasonable costs arising out of the failure of the Products to be properly marked or the
failure of such documentation to comply with all applicable governmental regulations,
including but not limited to (i) all costs incurred in bringing the Products or the
documentation into compliance with governmental regulations, (ii) all freight costs for
additional materials to cover production or customer requirements, (iii) any fines,
penalties or forfeitures levied by any government or governmental agency, and (iv) any legal
expenses and fees as they are incurred.

     e. Core shall not fabricate any of the Products covered by a purchase order, procure
any materials required in their fabrication, or ship any such Products to PACCAR, unless
specific delivery dates or an authorization for raw material acquisition and stocking
periods has been provided on a purchase order or in written instructions subsequently
furnished to Core by PACCAR. PACCAR shall have no responsibility for Products for which
delivery dates or such written instructions have not been provided. Shipments in excess of
those authorized may be returned to Core, and Core shall pay PACCAR for reasonable expenses
incurred in connection with the return of such shipments.

     16. Inspection. Notwithstanding prior payment, all Products and Parts are subject to
inspection and acceptance by PACCAR within a reasonable time after they arrive at their
destination. PACCAR shall notify Core if any Products or Parts are rejected for any reason and
provide digital photos to document product defects. At PACCAR’s election, rejected Product(s) or
Part(s) may be held for Core’s account or returned to Core [*****]. No replacement or correction
of nonconforming Products or Parts shall be made by Core without written authorization from PACCAR.

     17. Returnable Container Program. Core agrees to participate in PACCAR’s Logistics &
Returnable Container Program upon PACCAR’s request. PACCAR shall provide support through its
Logistics coordinator. The parties agree to negotiate in good faith cost reductions to PACCAR for
PACCAR-funded containers as well as costs to Core for Core-purchased containers that are not
substantially off-set by savings from eliminated non-returnable packaging. After implementation of
the returnable container program, the piece part cost of the Products and Parts supplied to PACCAR
under this program [*****].

     18. Capacity. Should Core become unable to provide adequate quantities of Products to satisfy
total industry demands, Core shall allocate the available supply of Products to PACCAR on a
non-discriminatory basis with other customers, such that the supply of Products to PACCAR will be
equal to or greater than PACCAR’s historical share percentage of Core’s past production output for
the immediately preceding six (6) month period.  [*****]

 

			
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     19. Movement of Product from the Core Composites Cincinnati Facility.

     a. Except where otherwise provided in this Agreement, production of Products and Parts
will remain at Core Composites Cincinnati unless PACCAR and Core jointly agree to transfer
any Product or Part to other Core locations. PACCAR retains the right to move Product(s) or
Part(s) out of Core Composites Cincinnati during the term of the Agreement in the event
PACCAR decides to implement a material change for the process for manufacturing such Product
or Part, and the capability for performing that process does not exist at Core Composites
Cincinnati (for example: a change from open mold to SMC, LFTP, etc.). Provided, however,
that if Core has proven capability to perform the new process, PACCAR will offer Core an
opportunity to quote. If Core’s quote is not competitive, Core will be provided an
additional opportunity to revise the proposal.

     b. If Core breaches a material obligation under this Agreement and fails to cure it
[*****] of such breach from PACCAR, then, in addition to any other remedies available to it,
PACCAR may [*****]. Core will cooperate fully with the movement of Product(s) and Part(s),
tooling and equipment in a manner that allows for a smooth transition with no disruption to
PACCAR truck production. In addition, Core will relinquish ownership to PACCAR at [*****]
of any asset acquired from PACCAR and located at Core Composites Cincinnati that may be
required for the production of the Product(s)/Part(s) at the new supplier. In the event
that Core replaces portions of the equipment required for operation, the parties agree to
discuss reimbursement in good faith. Core will not relinquish ownership of equipment
purchased by Core from sources other than PACCAR (identified with Core asset tags).

     20. Labor Union. This Section applies only to Core’s facilities that have labor unions.
Sixty (60) days prior to the expiration of any of Core’s material labor agreements, Core shall
submit to PACCAR a plan to ensure the continued supply of Products to PACCAR in the event of a
labor action. Said plan may include either maintaining an additional inventory of Products at a
site separate from Core’s unionized manufacturing facility or securing an alternative method of
manufacture of Products (either by non-union labor at the affected manufacturing site or moving
manufacturing to a facility not affected by the labor union). In any case, Core shall commit to
ensure the continued supply of Products to PACCAR in the event of any labor action.

     21. Strategic Relationship.

     a. PACCAR recognizes a strategic relationship with Core. As such, Core will be invited
to quote on future programs if Core has demonstrated capability in the desired manufacturing
process and meets PACCAR’s overall supplier performance requirements. Provided Core has
demonstrated the preceding requirements,  [*****].

     b. To further support this strategic relationship, PACCAR agrees to establish periodic
technology reviews with Purchasing, Engineering, Core and others as

8

 

appropriate to provide Core development opportunities (materials and processes) and the
opportunity to secure product manufacture through new or existing facilities or processes.
These meetings may lead to Core providing on-site engineering support for a period of time
and collaboration with PACCAR on technology and process development.

     22. Competitive Requirements. Core shall remain competitive with respect to the Products
and/or Parts in terms of pricing, quality, performance, technology, and delivery during the term of
this Agreement and any extension thereof. If, Core is not competitive in any of these areas, and
PACCAR so notifies Core in writing, Core will have ninety (90) days (“Notice Period”) from the date
of the notice to make its Product(s) and/or Parts competitive. If Core does not make its
Product(s) and/or Parts competitive within the ninety (90) day period, PACCAR may, at its sole
option: (a) discontinue purchasing Core’s non-competitive Product(s) and/or Parts and purchase
from the other supplier(s) or (b) purchase the Product(s) and/or Parts from both the Core and the
other supplier(s). In any case, Core shall cooperate fully with the move of Product and/or Parts,
tooling and equipment, and, if requested in writing by PACCAR, agree to a transition period of
ninety (90) days, and, take other steps reasonably necessary to avoid disruption to PACCAR truck
production, including a bank build plan. Further, if this event takes place prior to January 1,
2008, at PACCAR’s request, Core will relinquish ownership of, and return to PACCAR  [*****], any
of the assets Core acquired from PACCAR pursuant to Paragraph 2 that are required to manufacture
the Product(s) and/or the Part(s) whose production PACCAR decides to move elsewhere. In the event
that Core replaces portions of the equipment required for operation, the parties agree to discuss
reimbursement in good faith. Core will not relinquish ownership of equipment purchased by Core
from sources other than PACCAR (identified with Core asset tags).

     23. Electronic Data Interchange. Should PACCAR and Core choose to engage in Electronic Data
Interchange (“EDI”) with respect to any Products, Core agrees to comply with any and all terms and
conditions in PACCAR’s EDI Implementation Guideline attached as Schedule F. Core and PACCAR agree
that any EDI shall be deemed a “writing” sufficient for enforceability under any statute of frauds
or similar law.

     24. Marketing Assistance. Core will supply Products [*****]. Core shall supply these
Products to each PACCAR division and subsidiary purchasing Products for production. Core agrees to
assist PACCAR in product selection.

     25. Returned Products and Parts.

     a. Returns of Products other than Products purchased by PACCAR Parts shall be handled
in accordance with the PACCAR Return Goods Guideline attached as Schedule G.

     b. Returns of Products and Parts purchased by PACCAR Parts shall be handled in
accordance with the PACCAR Parts Return Goods Policy attached as Schedule H.

 

			
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     26. Warranty/Recall. Core agrees to comply with the terms of the PACCAR Supplier Warranty
Support Agreement attached as Schedule I.

     27. Indemnification. Core shall protect, defend, indemnify and save harmless PACCAR, its
employees, agents and customers and the users of any Products for defects in materials or
workmanship covered by this Agreement from any and all suits, actions, liability, loss of life or
personal injury (including but not limited to employees of Core or of PACCAR), or property damage
(including but not limited to property of Core or of PACCAR), including costs and reasonable
attorney fees, arising out of, or in connection with, or resulting from the activities of Core, its
employees, agents or subcontractors, or in connection with the work performed, services rendered,
or Products or materials furnished, under this Agreement. Provided, however, that this provision
shall not apply with respect to injuries or damage resulting from PACCAR’s defective design.

PACCAR shall protect, defend, indemnify and save harmless Core, its employees and agents, from any
and all suits, actions, liability and costs, including costs and reasonable attorney fees, for loss
of life or personal injury (including but not limited to employees of PACCAR or of Core) or
property damage (including but not limited to property of PACCAR or Core), resulting from the
negligent or intentionally wrongful acts of PACCAR, its employees or agents in connection with the
work performed, services rendered, or Products or materials furnished, under this Agreement.

     28. Force Majeure. Core shall not be in default by reason of any failure in the performance
of this Agreement, or any purchase order issued hereunder, if such failure arises out of causes
beyond the control and without the fault or negligence of Core including, but not restricted to,
acts of God, acts of government, fires, flood, epidemics, quarantine restrictions, strikes, and
freight embargoes. Core shall give notice to PACCAR within three (3) business days after it
becomes aware of any circumstance or event which may reasonably be anticipated to cause or
constitute, or which constitutes, an event of force majeure as described above. Such notice shall
contain a detailed description of the delay and of the affected portion of work. Within seven (7)
business days after delivering such notice, Core shall deliver a detailed written description of
the work-around plan, alternative sources, and any other means that Core shall, at its own cost,
use to prevent further delay. If delivery of any Products shall be delayed for more than one (1)
month beyond the last day of the month in which the next delivery was scheduled following the onset
of an event of force majeure, PACCAR may, upon written notice to Core, terminate any or all
purchase orders, or terminate this Agreement and all purchase orders hereunder.

     29. Insurance. Core shall maintain insurance coverage in amounts not less than the following:

     a. Workers Compensation-Statutory Limit(s) for the jurisdiction(s) in which this
Agreement is to be performed (or evidence of authority to be self-insured therefore);

     b. Employer’s Liability — $1,000,000;

     c. Commercial General Liability (including Contractual Liability, Products/Completed
Operations, Independent Contractors, Premises/Operations and Broad Form Property Damage):
For Safety Code 1 Products and Parts — $10,000,000

10

 

Each Occurrence, $10,000,000 Annual Aggregate; For all other Products and Parts -$5,000,000
Each Occurrence, $5,000,000 Annual Aggregate; and

     d. Automobile Liability (including owned, non-owned and hired vehicles) — $1,000,000
Each Occurrence.

     At PACCAR’s request, Core shall furnish to PACCAR a certificate of insurance naming PACCAR as
an additional insured for coverages described in (c) and (d). Each certificate shall disclose each
applicable deductible and/or self insured retention and contain a statement of the insurer’s
obligation to notify PACCAR at least thirty (30) days prior to cancellation, expiration or material
change in any policy covered thereunder. Any policy that provides the insurance required shall be
endorsed to be primary to and noncontributory with any insurance maintained by PACCAR and shall
provide a waiver of any rights of subrogation against the additional insured. Core’s purchase of
appropriate insurance coverage or the furnishing of certificates of insurance shall not release
Core of its obligations or liabilities under this Agreement. Core may be self-insured for all or
part of these requirements only with the prior written approval of PACCAR.

     30. Intellectual Property. Core warrants that the Products and Parts (and their sale or use,
alone or in combination, according to Core’s specifications or recommendations, if any) shall not
infringe any United States or non-U.S. patents, trademarks, or other intellectual property rights,
and agrees to defend, indemnify and save harmless PACCAR and anyone selling or using any of the
Products or Parts against all loss, damage, liability, costs, expenses and legal fees as they are
incurred by reason of any infringement or alleged infringement except when any such infringement or
alleged infringement arises solely from specifications or designs provided to Core by PACCAR.

     31. Proprietary Rights/Tooling.

     a. Core acknowledges that all drawings, designs, prototypes, specifications, tools,
equipment, or materials of every description furnished to Core by PACCAR or specifically
paid for by PACCAR, and all tooling, patterns, and molds manufactured from PACCAR’s
specifications and specifically paid for by PACCAR shall be and remain the personal property
of PACCAR. Further Core acknowledges that Core shall have no rights or claims to any CAD
drawings, patents, or other intellectual property, relating to the Products that are
produced at the Core facilities, and which are owned by PACCAR or were developed by PACCAR
independently of Core. Core shall hold such property at its risk and insure such property
at its expense in an amount equal to the replacement cost of such property with loss payable
to PACCAR. It shall be safely stored, maintained, and, wherever possible, clearly marked
“Property of PACCAR Inc” by Core. PACCAR shall have the right to enter upon Core’s premises
to inspect such property and any related records. Upon PACCAR’s written request, Core shall
prepare the property for shipment to PACCAR in the same condition in which it was received,
reasonable wear and tear excepted, or at PACCAR’s option, Core shall assemble the property
for pickup by PACCAR or destroy or have destroyed any such property designated by PACCAR, at
PACCAR’s expense, and certify to PACCAR that such property has been destroyed.

11

 

     b. PACCAR shall have no rights or claims to ownership of any patents or other
intellectual property, relating to the Products produced at the Core facilities that are
owned by Core or were developed by Core independently of PACCAR.

     c. The right to use any of PACCAR’s drawings, designs, specifications, prototypes,
trademarks, patents, tools or molds which may be disclosed or provided to Core by PACCAR is
limited to producing articles for sale exclusively to PACCAR and its divisions, subsidiaries
and affiliated companies. Except as otherwise authorized in writing by PACCAR, Core will
use any such information or property solely in connection with Core’s performance of this
Agreement. Excluding the Schedule B assets, the transfer of any of PACCAR’s information or
property to Core shall not be construed as granting a license or any right of ownership in
any such information or property. CORE’S USE OF PACCAR’S TRADEMARKS IS LIMITED TO PRODUCING
PRODUCTS OR PARTS SOLELY IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT. CORE IS NOT
AUTHORIZED TO USE SUCH TRADEMARKS FOR ANY OTHER PURPOSE.

     d. PACCAR will issue a purchase order (and, if necessary, a release thereunder) for its
requirement for tooling. All such orders shall be made pursuant to, and shall be governed
by, the terms and conditions of PACCAR Inc’s Corporate Tooling Purchase Order, attached
hereto as Schedule J and incorporated herein for all purposes. In the event of any conflict
between the Terms and Conditions and this Agreement, the terms of this Agreement will
prevail. To the extent possible, the Terms and Conditions of this Agreement will be
construed as being mutually consistent.

     32. Confidential Information. All oral and written communication and information exchanged
between Core and PACCAR, including but not limited to PACCAR’s proprietary information described in
Section 30, shall be treated as confidential information in accordance with the terms of PACCAR’s
standard Non-Disclosure Agreement attached as Schedule K. Core and PACCAR shall not disclose such
information except to their respective employees on a need-to-know basis. Core agrees that it will
not sell, distribute, deliver, or authorize the manufacture of any goods incorporating PACCAR’s
confidential or proprietary information to any person other than PACCAR without the written
permission of PACCAR.

     33. Financial Information. Core agrees to provide PACCAR with publicly available financial
information relating to Core as PACCAR may reasonably request from time to time.

     34. Ingredients Disclosure, Special Warnings, and Instructions. Core shall promptly furnish
to PACCAR in such form and detail as PACCAR may direct: (a) a list of all hazardous ingredients in
the Products; (b) the amount of each of such ingredients; and (c) information concerning any
changes in or additions to such ingredients. Prior to and with the shipment of the Products, Core
agrees to furnish to PACCAR sufficient warning and notice in writing (including appropriate labels
on Products, containers and packing) of any hazardous material which is an ingredient or a part of
any of the Products, together with such special handling instructions as may be necessary to advise
carriers, PACCAR, and their respective employees of how to exercise that measure of care and
precaution which will best prevent bodily injury or property damage in the handling,
transportation, processing, use, or disposal of the Products, containers and packing shipped to
PACCAR.

12

 

     35. Termination. This Agreement may be terminated at any time:

     a. by mutual agreement of PACCAR and Core; or

     b. by PACCAR, in the event of material breach by Core of any representation,
warranty, or obligation contained in this Agreement, which Core fails to cure within
thirty (30) days of receipt of notice from PACCAR.

If notice of termination is given before January 1, 2008, and at PACCAR’s request, Core will
relinquish ownership of the assets acquired from PACCAR that are located at Core Composites
Cincinnati to PACCAR  [*****] to PACCAR. In the event that Core replaces portions of the
equipment required for operation, the parties agree to discuss reimbursement in good faith.
Core will not relinquish ownership of equipment purchased by Core from sources other than
PACCAR (identified with Core asset tags); or

          c. by Core, in the event of material breach by PACCAR of any representation, warranty,
or obligation contained in this Agreement, which PACCAR fails to cure within thirty (30)
days of receipt of notice from Core. PACCAR will reimburse Core for the balance of its
lease payments for the Core Composites Cincinnati facility. Further, at PACCAR’s request,
Core will relinquish ownership of the assets acquired from PACCAR and located at Core
Composites Cincinnati back to PACCAR [*****]. In the event that Core replaces portions
of the equipment required for operation, the parties agree to discuss reimbursement in good
faith. Core will not relinquish ownership of equipment purchased by Core from sources other
than PACCAR (identified with Core asset tags); or

          d. by Core, if Core demonstrates to PACCAR’s reasonable satisfaction that it has been
unable to operate Core Composites Cincinnati at a profit, in the manner set forth herein.

	 	i.	 	Core will provide PACCAR with ninety (90) days notice of its
intent to terminate under this subsection (the “Notice Period”). During the
Notice Period, Core will provide PACCAR with satisfactory documentation of its
revenues and expenses for the relevant period. If Core makes the required
demonstration, then PACCAR may propose measures to permit Core to operate the
facility profitably. If Core declines to implement such measures, then the
parties will agree upon a ninety (90) day Transition Plan, , in the manner set
forth in Section 36, to commence upon the expiration of the Notice Period.
	 
	 	ii.	 	Termination under this provision shall not affect Core’s
responsibility to pay any required payments under the terms of its lease of the
Core Composites Cincinnati facility.
	 
	 	iii.	 	In the event of termination under this provision, Core will
relinquish to PACCAR ownership of the assets it acquired from PACCAR under
Section 2 of this Agreement [*****] to PACCAR. In the event that Core
replaces portions of the equipment required for operation, the parties agree to
discuss reimbursement in good faith. Core will not relinquish ownership of

 

			
	*****	 	Confidential Treatment Requested by Core Molding Technologies, Inc.

13

 

	 	 	 	equipment purchased by Core from sources other than PACCAR (identified with
Core asset tags).

     e. by PACCAR, based on Core’s failure to demonstrate price competitiveness in the
manner required under Section 22. In the event of termination under this provision,

	 	(i)	 	the parties will agree upon a ninety (90) day transition plan
to commence upon the expiration of the Notice Period, which will include a
mutually agreed upon inventory bank build to enable PACCAR to transfer
production to other supplier(s) without disruption of its truck manufacturing
schedule.
	 
	 	(ii)	 	PACCAR will reimburse Core for the balance of its lease payments for
the Core Composites Cincinnati facility, and will purchase any remaining raw
material and hardware that Core has purchased to produce the Products
manufactured at Core Composites Cincinnati.

     f. immediately, if either party (a) ceases to conduct operations under this Agreement
in the normal course of business, (b) ceases to function as a going concern,
(c) applies or has applied, or others apply or have applied for the appointment of a
receiver for all or substantially all of its assets, (d) petitions for bankruptcy
proceedings or such proceedings are petitioned for or on behalf of either party, or (e)
makes an assignment of its assets for the benefit of creditors; or

     g. as otherwise provided specifically in this Agreement.

     36. Transition Period. If either party terminates this Agreement, and if requested in writing
by PACCAR, Core shall cooperate with PACCAR to enable PACCAR to achieve an orderly and smooth
transition of PACCAR’s business to a new supplier. This shall include, but not be limited to:

     a. The continued supply of quality Products and Parts delivered on-time to PACCAR
facilities for 90 days from the date that the terminating party gives notice of termination,
or, at PACCAR’s option, for a shorter period.

     b. The production of a bank of Product, to be determined by PACCAR, to insure
continuity of supply while PACCAR-owned tooling and assets are being transferred to a new
supplier.

     c. Material handling and administrative support in moving PACCAR owned tooling and
other assets out of Supplier’s facility.

          d. Providing to PACCAR in an orderly and complete manner all PACCAR owned information, as
outlined in Section 30 within thirty (30) days of PACCAR’s written request.

     37. Assignment. Neither party may assign any of the rights, duties, obligations, or benefits
of this Agreement without the prior written consent of the other party. Any merger or
consolidation with or into any person, or any conveyance, transfer, lease or other disposition

14

 

(whether in one transaction or a series of transactions) of all or substantially all of a party’s
assets, or any other change in control of a party not approved by the other in writing shall be
deemed to be an assignment prohibited by this Section. Any assignment without prior written
approval will render this Agreement immediately subject to termination at the option of the
non-assigning party.

     38. No Waiver. Failure or delay of either party at any time to exercise any of its rights
under this Agreement shall not be deemed to be a waiver of such rights, nor will it in any way
prevent such party from subsequently asserting or exercising such rights.

     39. Severability. If any provision, or portion thereof, of this Agreement shall for any
reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provision hereof, and this Agreement shall be construed as if such invalid or
unenforceable provision had never been contained in this Agreement.

     40. Amendment. This Agreement may only be amended or modified by an instrument in writing
executed by both parties. Schedule A may be modified at any time by attaching a new schedule that
is executed and dated by the parties.

     41. Duty Drawback Rights. PACCAR shall be entitled to all duty and import drawback rights
related to the Products and Parts that Core can transfer to PACCAR, including rights developed by
substitution and rights that may be acquired from Core’s suppliers. Core agrees to inform PACCAR
of the existence of any such rights and upon request to supply such documents as may be required to
obtain such drawback.

     42. Canadian Goods and Services Tax. Core shall, if it has not already done so, furnish
PACCAR with its Canadian Goods and Services Tax registration number, and Core warrants that any
Goods and Services Tax registration number so furnished is the registration number assigned to it
by the Government of Canada.

     43. NAFTA. Upon request, Core shall promptly furnish PACCAR an accurate and complete North
American Free Trade Agreement Certificate of Origin in accordance with applicable laws and
regulations. Core agrees to indemnify PACCAR and/or its customers against all loss resulting
directly or indirectly from Core’s delay in furnishing such certificates to PACCAR and from
incorrect information therein furnished by Core.

     44. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of Washington, without regard to its conflict of law rules.
[Notwithstanding the foregoing, if the plaintiff brings an action in a foreign court under Section
40, the laws of that state, province and/or country shall apply.] In no event shall the United
Nations Convention on Contracts for the International Sale of Goods apply.

     45. Jurisdiction and Venue. No party will commence or prosecute any suit, proceeding, or
claim to enforce the provisions of this Agreement, or otherwise arising under or by reason of this
Agreement, other than in the courts of King County in the State of Washington, or in the United
States District Court for the Western District of Washington in Seattle, Washington. Each party
irrevocably consents to the jurisdiction and venue of the above-identified courts.

15

 

     46. Compliance with Laws and Regulations. Core agrees that in the performance of this order
it will comply with the requirements of all applicable governmental, federal, state and local
statutes, regulations and orders and will indemnify and save PACCAR harmless from any claim, loss
or damage arising from Core’s violation or alleged violation of the same. PACCAR serves from time
to time as a contractor for the United States Government. Core agrees that, if applicable to this
Agreement, Core will comply with the requirements of U.S. Executive Order 11246, 41 CFR §60-250.4,
41 CFR §60-741.4, and other applicable equal employment opportunity laws. Contract clauses
required by the U.S. Government in such circumstances are incorporated herein by reference. Core
shall promptly notify PACCAR of any applicable export or import requirements or restrictions of any
government or governmental entity with respect to the Products, Parts, articles, materials or work
covered by this Agreement.

     47. No Agency Relationship. Nothing contained in this Agreement shall create any agency,
fiduciary, joint venture, or partnership relationship between PACCAR and Core.

     48. Attorney’s Fees. Should any party employ an attorney or attorneys to enforce any of the
provisions hereof or to protect its interests in any manner arising under this Agreement, or to
recover damages for the breach hereof, the non-prevailing party in any action pursued in courts of
competent jurisdiction (finality of which action is not legally contested) agrees to pay to the
prevailing party or parties all reasonable costs, damages, and expenses, including reasonable
attorney’s fees, expended or incurred in connection therewith.

     49. Notices. All notices, consents, requests, reports, and demands hereunder shall be in
writing and shall be effective when delivered against receipt, or five (5) days after deposited in
the mail, postage prepaid, addressed as follows:

	 	 	 
	If to Core:

	 	If to PACCAR:
	 
	 	 
	Core Molding Technologies, Inc.

	 	PACCAR Inc
	800 Manor Park Drive

	 	777 — 106th Ave. N. E.
	P.O. Box 28133

	 	P. O. Box 1518 (98009)
	Columbus, OH 43228-0183

	 	Bellevue, WA 98004
	Attention: PACCAR Account Manager

	 	Attention: Director of Purchasing

or to such other address or to such other person as either party shall have last designated by
notice to the other party.

     49. Fair Construction. This Agreement shall be interpreted without regard to which party
initiated the drafting process or proposed or drafted particular language and shall not be
construed for or against any party.

     50. Entire Agreement. This Agreement, together with the schedules and any other document
referenced herein, contains the entire agreement between the parties hereto regarding the purchase
and sale of the Products and Parts, and there are no agreements, modifications, conditions, or
understandings, written or oral, expressed or implied, pertaining to the subject matter hereof
which are not contained herein or superseded hereby. The terms of this Agreement

16

 

supersede and replace the standard terms and conditions of any purchase orders or other
documentation related to the sale of the Products and Parts unless specifically incorporated
herein.

     51. Counterparts. This Agreement may be executed in one or more counterparts, each of which
may be deemed to be an original instrument, but all of which together shall constitute but one
instrument.

     52. Survival. The rights and obligations of Sections 25 on Returned Products, 26 on
Warranties, 27 on Indemnification, 30 on Intellectual Property, 31 on Proprietary Rights, and
32 on Confidential Information shall survive termination or expiration of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Long Term Supply Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Core Molding Technologies, Inc.	 	 	 	PACCAR Inc	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Stephen J. Klestinec
	 	 	 	By:
	 	/s/ T. A. Lundahl
	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Name: Stephen J. Klestinec	 	 	 	Name: T. A. Lundahl	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Title: COO	 	 	 	Title: VP Purchasing	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

17

 

SCHEDULES

	 	 	 
	Schedule A:

	 	Part Numbers, Description, Raw Material Content, Costs, Surcharges and Price
	 
	 	 
	Schedule B:

	 	PACCAR Assets at the Batavia Facility
	 
	 	 
	Schedule C:

	 	Non-Production Part Numbers, Description, and Price
	 
	 	 
	Schedule D:

	 	PACCAR Parts Supplier Guidelines
	 
	 	 
	Schedule E:

	 	PACCAR Packaging Guidelines
	 
	 	 
	Schedule F:

	 	PACCAR EDI Implementation Guideline
	 
	 	 
	Schedule G:

	 	PACCAR Return Goods Guideline
	 
	 	 
	Schedule H:

	 	PACCAR Parts Return Goods Agreement
	 
	 	 
	Schedule I:

	 	PACCAR Core Warranty Support Agreement
	 
	 	 
	Schedule J:

	 	PACCAR Tooling Purchase Order
	 
	 	 
	Schedule K:

	 	Non-Disclosure Agreement
	 
	 	 
	Schedule L:

	 	Amendment for Additional PACCAR Requirements ([*****])

 

			
	*****	 	Confidential Treatment Requested by Core Molding Technologies, Inc.

18

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