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Exhibit 10.2  

 
 

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT    
    

        This FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "Amendment") is entered into as of this
13th day of May, 2004 by and among J.B. POINDEXTER & CO., INC., a Delaware corporation ("Poindexter"), MORGAN TRAILER MFG.
CO., a New Jersey corporation ("Morgan"), TRUCK ACCESSORIES GROUP, INC., a Delaware corporation
("TAG), MAGNETIC INSTRUMENTS CORP., a Delaware corporation ("MIC"), MORGAN OLSON CORPORATION, a Delaware
corporation ("MOC"), and EFP CORPORATION, a Delaware corporation ("EFP") (Poindexter, Morgan, TAG, MIC,
MOC and EFP are each a "Borrower" and collectively referred to as "Borrowers"), the other Loan Parties
signatory hereto, LaSalle Bank National Association, a national banking association, for itself, as a Lender, and as Agent for the Lenders, and all other Lenders parties hereto. Unless otherwise
specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them by the Loan Agreement (as hereinafter defined). 

RECITALS  

        WHEREAS, the Borrowers, the Loan Parties, the Agent and the Lenders have entered into that certain Loan and Security Agreement dated as of March 15, 2004
(as amended, supplemented, restated or otherwise modified from time to time, the "Loan Agreement"); and 

        WHEREAS,
the Borrowers and the Loan Parties desire that Agent and the Lenders amend certain provisions of the Loan Agreement as herein set forth. 

        NOW
THEREFORE, in consideration of the foregoing recital, mutual agreements contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrowers, the Loan Parties, the Agent and Lenders hereby agree as follows: 

SECTION 1.    Amendments.  

        (a)   The
definition of "Senior Notes" set forth in Section 1 of the
Loan Agreement is hereby amended and restated to read in its entirety as follows: 

        ""Senior Notes" shall mean collectively, the 83/4% Senior Notes due 2014, issued by Poindexter pursuant to the terms of the
Senior Note Indenture in an initial aggregate principal amount of $125,000,000 (which amount may be subsequently increased to up to $155,000,000 as permitted by subsection
13(b)(vi) hereof) as such Senior Notes may be amended, modified, supplemented, extended, renewed, restated or replaced as permitted by the terms of  subsection 13(b) hereof."

        (b)   The
first sentence of Section 8(a) of the Loan Agreement is hereby amended and restated to read in its entirety as
follows: 

        "On
or prior to June 1, 2004, each Borrower shall establish one or more blocked accounts (collectively, "Blocked Accounts") and
shall deposit and cause its Respective Loan Parties to deposit or cause to be deposited promptly, and in any event no later than the first Business Day after the date of receipt thereof, all cash,
checks, drafts or other similar items of payment relating to or constituting payments made in respect of any and all Collateral (whether or not otherwise delivered to a lock box) into such Blocked
Accounts." 

        (c)   The
ninth sentence of Section 8(a) of the Loan Agreement is hereby amended and restated to read in its entirety as
follows: 

        "On
or prior to June 1, 2004, each Loan Party shall cause all accounts of such Loan Party, other than Blocked Accounts established at LaSalle, to be subject to control agreements
in favor of and on terms and conditions reasonably acceptable to the Agent." 

 

        (d)   Section 12(j) of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 

        "(j)
Checking Accounts. On or prior to June 1, 2004, each of Borrower Representative and TAG shall establish a general
checking/controlled disbursement account with LaSalle. In the case of such account held with LaSalle, normal charges shall be assessed thereon, and although no compensating balance is required, each
of Borrower Representative and TAG must keep monthly balances in order to merit earnings credits which will cover LaSalle's service charges for demand deposit account activities." 

        (e)   The
second line of Subsection 13(b)(vi) of the Loan Agreement is hereby amended by deleting the amount "$150,000,000"
where it appears therein and inserting the amount "$l155,000,000" in place thereof. 

SECTION 2.    Effectiveness. The effectiveness of this Amendment is subject to the satisfaction of each the following
conditions precedent: 

        (a)   this
Amendment shall have been duly executed and delivered by the Borrowers, the Loan Parties, the Agent and each Lender; and 

        (b)   The
representations and warranties contained herein shall be true and correct in all respects. 

SECTION 3.    Representations and Warranties. In order to induce the Agent and each Lender to enter into this
Amendment, each Loan Party hereby represents and warrants to the Agent and each Lender, which representations and warranties shall survive the execution and delivery of this Amendment, that: 

        (a)   all
of the representations and warranties contained in the Loan Agreement and in each Other Agreement are true and correct as of the date hereof after giving effect to
this Amendment, except to the extent that any such representations and warranties expressly relate to an earlier date; 

        (b)   the
execution, delivery and performance by the Loan Parties of this Amendment has been duly authorized by all necessary corporate action required on their part and this
Amendment, and the Loan Agreement is the legal, valid and binding obligation of the Loan Parties enforceable against the Loan Parties in accordance with its terms, except as its enforceability may be
affected by the effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of creditors generally; 

        (c)   Neither
the execution, delivery and performance of this Amendment by the Loan Parties, the performance by the Loan Parties of the Loan Agreement nor the consummation of
the transactions contemplated hereby does or shall contravene, result in a breach of, or violate (i) any provision of any Loan Party's certificate or articles of incorporation or bylaws or
other similar documents, or agreements, (iii) any law or regulation, or any order or decree of any court or government instrumentality, or (iii) any indenture, mortgage, deed of trust,
lease, agreement or other instrument to which any Loan Party or any of its Subsidiaries is a party or by which any Loan Party or any of its Subsidiaries or any of their property is bound, except in
any such case to the extent such conflict or breach has been waived herein or by a written waiver document, a copy of which has been delivered to Agent on or before the date hereof; and 

        (d)   No
Default or Event of Default has occurred and is continuing. 

SECTION 4.    Reference to and Effect Upon the Loan Agreement.  

        (a)   Except
as specifically set forth above, the Loan Agreement and each of the Other Agreements shall remain in full force and effect and are hereby ratified and confirmed;
and 

        (b)   The
amendments set forth herein are effective solely for the purposes set forth herein and shall be limited precisely as written, and shall not be deemed to
(i) be a consent to any amendment, waiver or modification of any other term or condition of the Loan Agreement or any Other 

2

 

Agreement,
(ii) operate as a waiver or otherwise prejudice any right, power or remedy that the Agent or the Lenders may now have or may have in the future under or in connection with the Loan
Agreement or any Other Agreement or (iii) constitute a waiver of any provision of the Loan Agreement or any Other Agreement, except as specifically set forth herein. Upon the effectiveness of
this Amendment, each reference in the Loan Agreement to "this Agreement", "herein", "hereof' and words of like import and each reference in the Loan Agreement and the Other Agreements to the Loan
Agreement shall mean the Loan Agreement as amended hereby. 

        This
Amendment shall be construed in connection with and as part of the Loan Agreement. Each Loan Party hereby acknowledges and agrees that there is no defense, setoff or counterclaim of
any kind, nature or description to the Liabilities or the payment thereof when due. 

SECTION 5.    Costs And Expenses. As provided in  Section 4(c)(v) of the Loan Agreement, the
Borrowers agree to reimburse Agent for all fees, costs, and expenses, including the reasonable fees,
costs, and expenses of counsel or other advisors for advice, assistance, or other representation in connection with this Amendment. 

SECTION 6.    GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF ILLINOIS. 

SECTION 7.    Headings. Section headings in this Amendment are included herein for convenience of reference only and
shall not constitute part of this Amendment for any other purposes. 

SECTION 8.    Counterparts. This Amendment may be executed in any number of counterparts, each of which when so
executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument. 

[Signature
Pages Follow] 

3

 

        IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first written above. 

	BORROWERS:
	
J.B. POINDEXTER & CO., INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
MORGAN TRAILER MFG. CO.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
TRUCK ACCESSORIES GROUP, INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
MAGNETIC INSTRUMENTS CORP.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
MORGAN OLSON CORPORATION
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 

[Signature
Page to First Amendment to Loan and Security Agreement] 

S-1

 

	EFP CORPORATION
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
AGENT AND LENDER:
	

LASALLE BANK NATIONAL ASSOCIATION,

as Agent and Lender
	

By:	

 	
 	

 
	 	
	 	 
	Name:	 	 	 
	 	
	 	 
	Title:	Senior Vice President	 	 

S-2

 

        The
following Persons are signatories to this Amendment in their capacities as Loan Parties, not as Borrowers: 

	LOAN PARTIES:
	
LOWY GROUP, INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
RAIDER INDUSTRIES INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
SWK HOLDINGS, INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
UNIVERSAL BRIXIUS, INC.
	

By:	

/s/ Robert S. Whatley
	
 	

 
	Name:	Robert S. Whatley	 	 
	Title:	Vice President	 	 
	
MORGAN TRAILER FINANCIAL CORPORATION
	

By:	

/s/ Thomas Daly
	
 	

 
	Name:	Thomas Daly	 	 
	Title:	President	 	 

S-3

 

	
MORGAN TRAILER FINANCIAL MANAGEMENT, L.P.
	

By:	
 	
MORGAN TRAILER MFG. CO.,

its general partner
	

 	
 	

By:	

/s/ Robert S. Whatley
	
 	

 
	 	 	Name:	Robert S. Whatley	 	 
	 	 	Title:	Vice President	 	 

S-4

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Exhibit 10.5  

 
 

SALES AGREEMENT    
    

        This Sales Agreement ("Agreement") is hereby entered into and effective as of this 1st day of October, 2004 by and between E. I. du Pont de Nemours
and Company, a Delaware corporation, having its principal place of business at 1007 Market Street, Wilmington, DE 19898, and Morgan Trailer Mfg. Co., d/b/a Morgan Corporation, a New Jersey
corporation, whose principal place of business is located at 35 Thousand Oaks Boulevard, Morgantown, PA 19543 ("Morgan" or "Customer"). 

 
 

WITNESSETH    
    

        Whereas, DuPont (as herein defined) is a seller of automotive paint materials; and, 

        Whereas,
Morgan (as herein defined) desires to purchase automotive paint from DuPont and DuPont desires to sell such automotive paint to Morgan. 

        This
Agreement shall be for all current Morgan locations. 

        Now
therefore, intending to be legally bound hereby Morgan agrees to purchase from DuPont and DuPont agrees to sell to Morgan under the following terms and conditions: 

        1.    Definitions.    

        For
purposes of this Agreement, the following terms shall have the following meanings: 

        (a)   "DuPont"
shall mean E. I. du Pont de Nemours and Company. 

        (b)   "Product"
shall mean any and all DuPont Automotive Products listed on the Morgan price list attached hereto on Exhibit A. 

        (c)   "Morgan
Location(s)" shall include, but shall not be limited to, any and all facilities set forth on Exhibit B, which is attached hereto and incorporated into
this Agreement. 

        (d)   "Morgan"
shall mean Morgan Corporation and all its current subsidiaries. 

        2.    Replacement of Prior Agreements.    This Agreement shall take the place of and entirely supersede any oral or
written contracts/arrangements that deal with the same subject matter as referenced herein and shall specifically supercede the Sales Agreement between Morgan Corporation and DuPont dated May
            2002 ("Original Morgan Agreement"). 

        3.    Quantity.    

        During
the term of this Agreement, DuPont shall sell and Morgan shall purchase Products for at least ninety-eight percent (98%) of all of the paint materials Morgan requires in order to
paint and/or finish the vehicles and/or parts Morgan manufactures, paints, and/or sells from any current Morgan Location. In the event a Morgan customer specifies that it desires
non-DuPont paint materials, Morgan agrees to cooperate and work together with DuPont in an effort to convert such customer to using DuPont Products exclusively. Notwithstanding the
preceding, if a Morgan customer requests non-DuPont Product or DuPont is incapable of providing the specified Product in the quantity and time-frame requested by Morgan to
satisfy a Morgan customer's requirements, such customer shall not be included as a part of Morgan's obligation to purchase its requirements pursuant to this Section 3. In the event DuPont is
unable to supply Morgan with Products in the time-frame and quantity specified on pre-approved Morgan Purchase Orders, provided such time-frame is commercially
reasonable and, in the event such quantities are necessary for Morgan to meet their customer's reasonable requirements, the resulting replacement product purchased by Morgan shall not be included as a
part of Morgan's obligation to purchase its requirements pursuant to this Section 3. DuPont shall have the right to survey any Morgan Location at any time during regular working hours, with
written notice, to ensure compliance hereunder. 

 

        4.    Price.    

        (a)   During
the first two (2) years of this Agreement from October 1, 2004 until October 1, 2006, Morgan shall pay DuPont the prices for Products set
forth on the price list attached hereto as Exhibit A and incorporated as part of this Agreement ("Price List"). 

        (b)   Beginning
October 1, 2006, the prices for Products set forth in Exhibit A shall be adjusted to correspond to the average annual increase or decrease, as
the case may be, of the U.S. Department of Labor's Producer Price Index for Paint Material—Index No. 0662 ("PPI"), calculated on the most recently available twenty-four
(24) month period immediately prior to the date of the increase or decrease (hereinafter described as the "Process"). Any changes or modifications to the Price List shall be cumulative.
Further: 

        (i)    If
on October 1, 2006 the increase or decrease of the PPI as described above is eight percent (8%) or more, then prices shall be increased or decreased by
one-half the comparison percentage. In no event shall the price increase or decrease exceed five percent (5%). In this event, the price determined on October 1, 2006 shall remain in
effect until October 1, 2008, and the Process shall be repeated on October 1, 2008 and on every October 1 thereafter in the event this Agreement is extended; or 

        (ii)   If
on October 1, 2006, the increase or decrease of the PPI as described above is less than eight percent (8%), then the prices for the next
twenty-four (24) months will remain the same as the prior twenty four (24) month period. In this event, then on October 1, 2008, the Process shall be repeated. If on
October 1, 2008 said increase or decrease of the PPI is eight percent (8%) or more, then prices shall be increased or decreased by one-half the comparison percentage. In no event
shall the price increase exceed five percent (5%) of the prices then in effect. In this event, or if the increase or decrease of the PPI is less than eight percent (8%) on October 1, 2008, then
the price determined on October 1, 2008 shall remain in effect until October 1, 2009, and on every October 1st thereafter in the event this Agreement is extended. 

        (c)   Morgan
shall be responsible for all taxes, excises, or other charges, excepting income taxes and franchise taxes based upon income, where DuPont may be required to pay
any government (national, state, or local) relating to the Sale of the Product hereunder. 

        5.    Morgan Warranty.    Morgan represents and warrants to DuPont that (i) execution and performance of this
Agreement by Morgan does not and will not constitute a breach of any existing contract to which
Morgan is a party (ii) it has received an offer to purchase products of like grade and quality from another supplier and (iii) DuPont has offered the terms and conditions set forth in
this Agreement in order to meet such competitive offer. 

        6.    Payment.    Morgan shall pay DuPont for Products that conform to the quantity and specifications of the Product
ordered within thirty (30) days after the date of DuPont's invoice. If Morgan remits payment within fifteen days after the date of DuPont's invoice, the amount due shall be discounted by two
percent (2%). In the event that Morgan fails to pay in accordance with this provision, and any amounts left unpaid after thirty (30) days shall accrue interest at the rate of two percent (2%)
per month or at the lawful rate of interest, the higher amount which is permitted by law. 

        7.    Term.    This Agreement shall be effective upon signing, shall extend for a period of five (5) years and
thereafter shall continue on a month to month basis after the initial term unless either party provides the other thirty (30) days' notice of termination. 

        8.    Delivery.    All Products ordered in quantities of forty (40) gallons or more shall be shipped to Morgan
F.O.B. (Morgan's receiving location) freight pre-paid. All Products ordered in quantities less than forty (40) gallons shall be shipped to Morgan F.O.B. DuPont's shipping point.
Title and risk of loss of Product shall pass at Morgan's receiving location. 

2

 

        9.    OSHA Compliance.    DuPont represents that the goods to be supplied hereunder were or shall be produced and
supplied in accordance with The Occupational Safety and Health Act of 1970, all rules, standards and regulations promulgated thereunder and any amendments thereto ("OSHA"). 

        10.    Other Laws.    DuPont and Morgan shall comply with all applicable federal, state and local laws and all rules
and regulations of any governmental authority. 

        11.    Insurance.    DuPont represents that it is sufficiently self-insured and will continue to remain
self insured at or above for the following levels and types of risk throughout the term of this Agreement: 

        (a)   Comprehensive
general liability insurance and comprehensive automobile liability insurance, each with a minimum liability limit of $1,000,000 combined single limit per
occurrence, covering (1) DuPont's properties, (2) goods delivered under this Agreement, (3) injury to or death to persons during the
performance of this Agreement, (4) damage to properties during the performance of this Agreement, (5) contractual liabilities of DuPont under this Agreement; and 

        (b)   Workers'
compensation and employers liability insurance with a minimum liability limit of $500,000. 

        12.    Indemnity by DuPont.    Pursuant to this Agreement, DuPont shall indemnify, save harmless and defend Morgan
from and against any and all claims, losses, damages, costs and expenses, including reasonable attorney fees, arising out of a claim by a third party for personal injury, death, or property damage
resulting from paint materials supplied to Morgan by DuPont, provided that, such damages were not caused by Morgan's sole negligence. 

        13.    Indemnity by Morgan.    Morgan shall indemnify, save harmless and defend DuPont from and against any and all
claims, losses, damages, costs and expenses, including reasonable attorney fees, arising out of a claim by a third party for personal injury, death or property damage resulting from Morgan's materials
or workmanship relating to the application of DuPont's products. 

        14.    New Marketing Allowance.    

        (a)   As
additional consideration for entering into this Agreement, DuPont agrees to credit Morgan each year during the term hereof, an annual rebate in an amount equal to
eight percent (8%) of the total dollar amount of Product shipped and billed for that year ("Rebate"). DuPont will credit this Rebate for each year from the effective date of this Agreement. 

        (b)   As
additional consideration for entering into this Agreement, DuPont agrees to provide to each Morgan Location, a signing bonus in an amount of three percent (3%) of the
total dollar amount of the year-to-date purchases made by Morgan. For the purposes of calculation, the total dollar amount of purchases shall be pro-rated from
January 1, 2004 through the signing date of this Agreement. 

        (c)   Morgan
acknowledges that DuPont has provided certain Morgan Locations equipment for its paint facilities as more fully described in Exhibit C ("Equipment"). If
the Equipment malfunctions during the term, DuPont will be responsible to repair the Equipment, normal wear and tear excepted. DuPont shall assign any warranty provided by the equipment manufacturer
to Morgan. Morgan shall bear all risk of loss and/or damage associated in any way with the Equipment. In the event that the Equipment provided hereunder by DuPont is lost, damaged, and/or destroyed
during the term of this Agreement, Morgan shall be solely responsible for any and all costs associated with repairing and/or replacing said Equipment. Additionally, any liability arising from use or
operation of the Equipment, shall be solely for the account of Morgan. Upon termination of this Agreement, Morgan shall return at DuPont's expense (except in the event of a material breach by Morgan,
in which case at Morgan's expense) all Equipment to DuPont within thirty (30) days. 

3

 

        15.    Liability.    DuPont's sole liability and Morgan's sole remedy shall be as follows: (1) replacement of
any non-conforming Product or, at Morgan's option, the refund of the purchase price; and (2) reimbursement of out-of-pocket costs reasonably incurred by
Morgan for removal, storage, transportation and return of any non-conforming Product. 

        16.    Claims and Liquidated Damages.    

        (a)   In
no event shall this Agreement be the basis for claims for damages beyond those specifically contained herein or customarily available to DuPont customers. IN NO EVENT
SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, INDIRECT, AND/OR CONSEQUENTIAL DAMAGES. 

        (b)   In
the event of a material breach by Morgan of this Agreement in any way and such breach is not remedied within thirty (30) business days after written notice
from DuPont of said breach and received by Morgan, then Morgan shall immediately pay DuPont the entire three percent (3%) signing bonus amount previously received from DuPont as liquidated damages. 

        (c)   In
addition to liquidated damages, Morgan shall immediately return all equipment to DuPont upon notice. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR
SPECIAL, INDIRECT, AND/OR CONSEQUENTIAL DAMAGES. Morgan agrees that the liquidated damages are a reasonable measure of DuPont's damages, in addition to any other remedies available to DuPont in law or
in equity. 

        (d)   In
the event DuPont is unable or unwilling to deliver Products to Morgan at the prices indicated in Exhibit A, and/or in the quantities and/or timeframe required
by Morgan pursuant to Sections 3 and 4
herein, DuPont shall immediately pay Morgan any reasonable increased costs incurred by Morgan as a result of Morgan's need to procure replacement product, provided that Morgan shall have notified
DuPont prior to purchasing such replacement product. 

        17.    DuPont Warranty.    DuPont agrees to provide the warranty set forth in Exhibit D. 

        18.    Force Majeure.    Neither Party shall be considered in default in performance of its obligations hereunder to
the extent and during the period the performance of such obligations is hindered, delayed or prevented by accidents, riots, fire, war, floods, earthquakes, acts of God, strikes, or other labor
dispute, labor shortages, acts of any governmental agency, or any other cause not reasonably within such party's control. Nothing herein shall relieve Morgan from its obligation to make payment
hereunder when due. If such an event of force majeure occurs, as set forth herein, DuPont shall allocate its available supply of Products to Morgan on a nondiscriminatory basis with other customers of
DuPont. 

        19.    User Protection.    Morgan acknowledges that they have received and are familiar with DuPont's labeling and
literature (attached hereto as Exhibit E) concerning the Products and will forward such information to its employees who handle, use, process, or sell such Products and customers of such
Products, if any. 

        20.    Confidentiality.    In the event that either DuPont or Morgan discloses any Confidential Information to the
other, such Confidential Information may only be disclosed by the receiving party upon written notice from the disclosing party. 

        For
purposes of this Agreement, information is "Confidential Information" to the party receiving it if it is presented in writing by one party to the other party hereunder and marked as
confidential by the disclosing party; or if the Confidential Information is disclosed orally or visually by one party to the other party, it shall be identified as confidential at the time of
disclosure. In the event that some Confidential Information may be disclosed under circumstances where it is impractical to reduce such information to writing or where documentation of confidential
information is inadvertently omitted, and it is agreed that the receiving party will treat such information under the same terms and conditions as 

4

 

documented
Confidential Information herein. The obligations and duties set forth in this Paragraph shall survive the termination of this Agreement. 

        21.    Termination.    Either party may terminate this Agreement in the event of material breach by the other party,
if the non-breaching party gives the breaching party written notice of such breach and the breach has not been corrected within thirty (30) days after receipt of such notice. 

        22.    Governing Law.    This Agreement shall be governed by and interpreted in accordance with the laws of the State
of Delaware. 

        23.    Arbitration.    All disputes, which may arise between the parties out of or in relation to this Agreement, or
for its breach, including, without limitation, disputes relating to the validity or existence of this Agreement as a whole, which cannot be settled by agreement between the parties, shall be submitted
to arbitration pursuant to the Uniform Arbitration Act. 

        If
dispute is to be arbitrated, Morgan and DuPont shall each appoint an arbitrator, who shall select a third disinterested and competent person to act as the third arbitrator. The
decision of the three arbitrators, or a majority of them, shall be final and conclusive. 

        The
arbitration shall take place in the state of the party against whom arbitration is demanded, unless mutually agreed to otherwise. Each party shall bear its own costs and the costs of
the third arbitrator shall be borne equally between the parties. 

        24.    Notices.    All notices required hereunder shall be sent by certified mail return receipt requested, or by
telex confirmed by such certified mail, to the party to be notified at its following address or at such other address as shall have been specified in written notice from the party to be notified. 

        If
to DuPont, addressed to: 

E.
I. du Pont de Nemours and Company, Inc.

DuPont Automotive Products

4417 Lancaster Pike

Barley Mill Plaza 21-1282

Wilmington, DE 19805

Attention: OEM/Fleet Business Manager 

        If
to Morgan, addressed to: 

Mark
Albertson, Vice President of Engineering/Purchasing

Morgan Corporation

35 Thousand Oaks Boulevard

P.O. Box 588

Morgantown, PA 19543

(610) 286-5025 

        All
notices hereunder shall be effective upon date of receipt. 

        25.    Assignment.    Neither party may assign any of the rights, duties, obligations and/or benefits of this
Agreement without the prior consent in writing of the other party. Notwithstanding the above, this Agreement shall be binding upon Morgan and DuPont successors and/or assigns. 

        26.    Amendment.    This Agreement may not be amended except upon the prior written agreement of the other party. No
amendment, modification or release from any provision hereof shall be of any force or effect unless it is in writing, signed by the party claimed to be bound thereby, and specifically refers to this
Agreement. 

5

 

        27.    Waiver.    No waiver by either party of any breach of the covenants herein contained to be performed by the
other party shall be construed as a waiver of any succeeding breach of the same or any other covenants or conditions hereof. 

        28.    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. 

        29.    Entirety of Agreement.    This Agreement embodies the entire agreement and understanding between DuPont and
Morgan relative to the subject matter hereof and there are no understandings, agreements, conditions or representations, oral or written, expressed or implied, with reference to the subject matter
hereof that are not merged or superseded hereby. 

6

 

	E. I. DU PONT DE NEMOURS AND COMPANY ("DuPont")	 	MORGAN TRAILER MFG. CO. d/b/a MORGAN CORPORATION ("Morgan")
	

 	
 	

 
	 	 	/s/ Robert S. Whatley
	
	 	

	Signature	 	Signature
	

 	
 	

Robert S. Whatley
	
	 	

	Print Name	 	Print Name
	

 	
 	

Vice President, Finance
	
	 	

	Title	 	Title
	

 	
 	

October 1, 2004
	
	 	

	Date	 	Date

7

 
 
 

EXHIBITS    
    

	Exhibit A	 	Morgan Price List
	

Exhibit B	
 	

Morgan Locations
	

Exhibit C	
 	

Equipment
	

Exhibit D	
 	

DuPont Warranty
	

Exhibit E	
 	

DuPont Labeling and Literature

8

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SALES AGREEMENT

WITNESSETH

EXHIBITS

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