Document:

EXHIBIT 10.33

                               FORMATION AGREEMENT

         THIS AGREEMENT, made as of the ___ day of October, 1986, BETWEEN:
NISHIKAWA RUBBER CO., LTD., a corporation organized under the laws of Japan and
having its principal office in Hiroshima, Japan (hereinafter called
"Nishikawa"), and THE STANDARD PRODUCTS COMPANY, a corporation organized under
the laws of the State of Ohio, United States of America, and having its
principal office in Cleveland, Ohio (hereinafter called "Standard"),

         WITNESS AS FOLLOWS:

         WHEREAS, Nishikawa is engaged in the manufacture and sale in Japan of
sponge and multi-durometer extruded and molded rubber products for use by
Japanese motor vehicle manufacturers;

         WHEREAS, Standard is experienced in the manufacture and sale in North
America of other rubber and plastic parts for use by North American motor
vehicle manufacturers; and

         WHEREAS, the parties desire jointly to establish in the United States a
facility to manufacture sponge and multi-durometer extruded and molded rubber
products ("the Products") to motor vehicle manufacturers located in the United
States, Canada and Mexico ("the Territory").

         NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

         1. Formation of Company.

              1.1 Name. The name of the entity that operates the jointly owned
facility shall be Nishikawa Standard Company ("the Company").

              1.2 Purpose. The purpose of the Company shall be the manufacture
and sale of the Products and related products to motor vehicle manufacturers
located in the Territory. It is understood that the Company may elect to
manufacture windlace which would be attached to Products, and that windlace is a
"related product". The initial sales targets shall be Japanese owned, operated
or licensed motor vehicle manufacturers, particularly Honda, Mitsubishi
("Diamond Star") and Mazda. Secondary targets will be Toyota, Nissan and Nummi.
If practicable, the Company may eventually attempt to sell to North American
motor vehicle manufacturers such as General Motors, Ford and Chrysler.

              1.3 Plant. The parties have agreed that the Company shall purchase
a plant in Topeka, Indiana, presently owned by United Technologies, Inc.

              1.4 Formation. The parties have agreed to form a corporation under
the laws of the State of Indiana. The Articles of Incorporation and Bylaws shall
be in the form of Exhibits A and B attached hereto. The parties agree to take
such action and file such notices and other documents as may be legally
necessary to establish the Company.

         2. Financing.

              2.1 Capital. The initial share capital of the Company shall be
Three Hundred Thousand Dollars ($300,000) of which sixty percent (60%) shall be
contributed by Nishikawa and forty percent (40%) shall be contributed by
Standard. The initial capital shall be paid in cash promptly after the Company
is organized. Upon call of the Board of Directors, the share capital of the
Company may be increased from time to time to an aggregate of not to exceed Five
Million Dollars ($5,000,000), it being understood that all additional capital
contributions shall be made in the same 60/40 ratio.

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              2.2 Borrowings. It is anticipated that the Company will be
financed in part by borrowed funds. If feasible, some or all of such financing
will be raised through the issuance of industrial revenue bonds. Regardless of
the means by which the Company is financed, an effort will be made to avoid
guarantees of the Company's debt by Nishikawa and Standard. If the parties
subsequently determine that guarantees cannot be avoided, the guarantees will be
limited so that Nishikawa guarantees sixty percent (60%) of the debt and
Standard guarantees forty percent (40%) of the debt.

         3. Management.

              3.1 Overall Responsibility. Nishikawa will be responsible for
overall operation of the Company, including engineering, manufacturing, sales
and general administration of the Company, while Standard will be responsible
for personnel-labor matters and otherwise assist the Company in obtaining
qualified personnel and in doing business in North America.

              3.2 Board of Directors. Initially, there shall be seven members of
the Board of Directors. The initial members of the Board of Directors
representing Nishikawa shall be FUMYEA TAKEDA, TAKASHI ISE, YASUO NISHIKAWA and
JACK K. KURAMOTO. Standard's initial representatives shall be JAMES S. REID,
JR., ROBERT B. STEVENS and THOMAS E. JUDY. Either of Nishikawa or Standard may,
at any time, and from time to time, remove its representative(s) on the Board of
Directors and designate a successor. In the event the parties agree on a change
in the number of directors, the approximate 60/40 representation concept shall
be retained. During the term of this Agreement the parties agree to vote their
shares in the Company to preserve the 4/3 representation contemplated by this
section. The

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Board of Directors shall have such powers and duties as provided by law and as
set forth in Exhibit B.

              3.3 Officers. Fumyea Takeda shall act as President of the Company
and, initially, J. Richard Hamilton shall act as Secretary of the Company. The
remaining officers of the Company shall be selected by its Board of Directors.

              3.4 Auditors. A nationally recognized accounting firm acceptable
to both parties shall be engaged as auditors of the Company. Fully audited
financial statements of the Company shall be prepared annually in accordance
with generally accepted accounting principles.

              3.5 Books of Account - Financial Information. To the extent
feasible under United States law and practice, the books of the Company shall be
maintained in accordance with Nishikawa's practices and recommendations. Monthly
financial reports shall be prepared by the Company and furnished to Nishikawa
and Standard. Nishikawa and Standard shall have full access to the books of
account and financial records at all reasonable times.

         4. Technical Information.

              4.1 Information Furnished. Each party shall furnish to the Company
such technical information and know-how regarding the design, manufacture and
sale of the Products as may be required to make the Company commercially viable.
Except for any patented technology owned by third parties, all information and
know-how to be utilized in manufacturing the Company's initial group of Products
consists of existing technology, product designs, know-how patents and related
technical information owned by Nishikawa and/or Standard which shall be
furnished without charge to the Company. For new technology, designs for new
products and other related technical information, know-how and/or patents which
the

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Company wishes to acquire from Nishikawa and/or Standard, the parties from time
to time may agree upon a fee or royalty to be paid to the supplying party to
reimburse it for an appropriate share of the cost of the research and
development or otherwise compensate for its efforts.

              4.2 Reimbursable Expenses. Because of its experience, it is
anticipated that Nishikawa will furnish to the Company the bulk of the technical
information required to design and manufacture the Products. If in this
connection it is necessary to send from Japan technical employees of Nishikawa,
Nishikawa shall be reimbursed by the Company for the wages, travel and living
expenses of such employees.

              4.3 Information Kept Confidential. Technical information and
know-how furnished to the Company shall be kept confidential. It is expressly
understood that non-public information relating to the Company's prices, costs,
sales, production plans and forecasts, designs and similar matters will not be
exchanged with or disclosed to, directly or indirectly, individuals responsible
for making decisions on such matters at Standard's Canadian subsidiary.

         5. Purchases from Nishikawa and Standard.

              5.1 General. The Company shall be under no obligation to purchase
equipment, raw materials or other goods from either Nishikawa or Standard.

              5.2 Equipment. No item of equipment shall be purchased at a price
in excess of $50,000 from Standard without the prior approval of Nishikawa or
from Nishikawa without the prior approval of Standard. In addition, Nishikawa
will give written notice to Standard as to any equipment purchased at a price in
excess of $5,000 from Nishikawa.

              5.3 Materials from Standard. Standard agrees to make available to
the Company raw materials such as rubber and finished or semi-finished products
such as windlace (for incorporation into a completed OEM part) on the same
pricing basis as it uses in interplant

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transactions, normally not more than 11.11% over Standard's cost (determined on
the same basis as "cost" is determined for Standard's interplant transactions).

         6. Start-up Matters.

              6.1 Preformation Expenses. Each party will bear its own expenses
relating to the planning and formation of the Company, except that expenditures
solely for the benefit of the Company incurred by either party prior to its
formation shall be reimbursed by it upon its formation. Examples of such
expenditures are:

         (a) Cost of an option for a plant or plant site;

         (b) Deposit against or cost of a plant or plant site;

         (c) Deposits made on equipment for the plant;

         (d) Salaries of employees of Nishikawa and Standard assigned full-time
    to this project.

         (e) Cost of engineering and construction of the plant incurred before
    formation.

              6.2 Plant Equipment. Nishikawa, after consultation with Standard,
shall determine the number of production lines, the general type of equipment to
be initially installed in the plant, and the estimated aggregate cost of such
equipment. Thereafter the acquisition and installation of such equipment shall
be the responsibility of the President under the overall direction of the Board
of Directors.

              6.3 Office Assistance. Standard agrees to make available without
charge at its Westborn, Michigan offices one fully equipped office, plus
secretarial assistance, for use by Nishikawa employees until offices are
available at the Company's plant.

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              6.4 Additional Assistance. It is anticipated that the Company will
eventually function as a completely separate entity with full-time staff in all
positions. If, prior to the availability of offices at the Company's plant
and/or the availability of a full staff of employees, the Company requires
special administrative, sales, engineering, accounting, purchasing or similar
services, the parties shall from time to time agree upon a fee or commission to
be paid Standard fairly to reimburse it for such services, but no element of
profit shall be included in such reimbursement.

         7. Miscellaneous.

              7.1 Applicable Law. This Agreement and the Exhibits hereto shall
be construed in accordance with the law of Indiana, United States of America.

              7.2 Entire Agreement. This Agreement and the Exhibits hereto set
forth the entire agreement and understanding between the parties pertaining to
the subject matter thereof. The provisions of this Agreement shall supersede any
prior written or oral agreement or understanding which is inconsistent with this
Agreement or the Exhibits hereto.

              7.3 Amendment. This Agreement may be amended only in writing
signed by both parties hereto. Any approvals, notices or consents required
hereunder must be signed by the party giving such approval, notice or consent.

              7.4 Notices. Any notice, acceptance or other communication
provided for herein shall be deemed duly given when mailed by registered
postpaid airmail to the other party. Until otherwise notified in writing, the
addresses of the parties hereto for all such notices shall be:

                 Nishikawa Rubber Co., Ltd.
                 2-2-8 Misasamachi
                 Hiroshima, Japan
                 Attention:

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                 The Standard Products Company
                 2130 West 110th Street
                 Cleveland, Ohio 44102
                 Attention: President

              7.5 Assignment. This Agreement and the rights and obligations
hereunder and the shares of the Company shall not be assignable by either party
without the prior written consent of the other, provided that no such consent
shall be required (1) in the event of a merger, consolidation or sale of
substantially all of the assets of either party, or (2) for an assignment to a
wholly owned subsidiary of, or to a corporation which owns all of the voting
stock of, either party, or (3) in connection with a transfer of shares in
accordance with Section 7.6 below.

              7.6 Right of First Refusal. Except for transfers permitted by
Section 7.5, neither Nishikawa nor Standard shall transfer shares of the Company
owned by them except as follows:

         (a) If either party (the "Offeror") desires to transfer all or any part
    of its shares in the Company to a third party, the Offeror shall first offer
    in writing to sell such shares to the other party (the "Offeree") on the
    same terms and conditions as offered to the third party. The Offeree shall
    have 60 days to purchase all of the shares so offered. The election to
    exercise the option shall be made in writing and mailed by certified mail,
    return receipt requested, to Offeror. If all the shares so offered are not
    purchased by the Offeree, the Offeror shall be free to sell all the shares
    to the third party, provided the sale is (1) on the same terms offered to
    the Offeree and (2) closed within 60 days after the Offeree's option to
    purchase has expired.

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         (b) Any transfer under this Section 7.6 shall be invalid until the
    party transferring its shares shall obtain the transferee's express written
    agreement to become subject to all the terms of this Agreement.

         (c) The certificates for shares of the Company shall bear an
    appropriate reference to the restrictions on transfer set forth in this
    Section 7.6.

         7.7 Waiver. The waiver of either party of any right hereunder or breach
    by the other party of any right hereunder shall not be deemed a waiver of
    any other right hereunder, or of any subsequent right arising from a breach
    of this Agreement of the same or similar nature.

         7.8 Inconsistencies. In the event of any inconsistency between the
    provisions of this Agreement and the provisions of the Exhibits attached
    hereto, the provisions of the Exhibits shall control.

         7.9 Illegal Provisions. In the event any one or more of the provisions
    of this Agreement or the Exhibits hereto shall be determined to be invalid,
    illegal or unenforceable in any respect, the validity, legality and
    enforceability of the remaining provisions shall not in any way be affected
    or impaired thereby.

         7.10 Term of Agreement. The obligations of the parties hereto shall
    survive the formation of the Company and shall remain binding on each party
    so long as it or an assignee permitted by Section 7.5 is a shareholder of
    the Company. This Agreement is intended to be a "voting agreement" as
    authorized by Section 23-1-31-1 of the Indiana Business Corporation Law.

         7.11 This Agreement is subject to approval by appropriate Japanese
    authorities, which approval shall be promptly requested by Nishikawa.

                                       9EXHIBIT 10.34
                                                                December 7, 1992

                        SUPPLEMENTAL FORMATION AGREEMENT

         THIS AGREEMENT, made as of the 7th day of December 1992 between
NISHIKAWA RUBBER CO., LTD., a corporation organized under the laws of Japan and
having its principal office in Hiroshima, Japan (hereinafter called
"Nishikawa"), and THE STANDARD PRODUCTS COMPANY, a corporation organized under
the laws of the State of Ohio, United States of America, and having its
principal office in Cleveland, Ohio (hereinafter called "Standard"),

         WITNESS AS FOLLOWS:

         WHEREAS, Nishikawa and Standard executed on October 9, 1986 a Formation
Agreement relating to the organization and operation of an Indiana corporation
to be known as Nishikawa Standard Company and owned 60% by Nishikawa and 40% by
Standard (the "Formation Agreement"); and

         WHEREAS, Nishikawa and Standard subsequently agreed that Nishikawa
Standard Company should be reorganized as a general partnership and caused to be
established on March 23, 1989 a Delaware general partnership as evidenced by a
Partnership Agreement (the "Partnership Agreement"), which on March 31, 1989
pursuant to the terms of an Asset Purchase Agreement acquired substantially all
of the assets and assumed substantially all of the liabilities of the Indiana
corporation known as Nishikawa Standard Company (the Delaware general
partnership is hereinafter referred to as "NISCO"); and

         WHEREAS, Nishikawa of America, Inc., a Delaware corporation wholly
owned by Nishikawa presently owns a 60% partnership capital interest in NISCO
and NISCO Holding Company, a Delaware corporation wholly owned by Standard, owns
a 40% partnership capital interest in NISCO; and

         WHEREAS, the partnership capital of NISCO was originally established in
the Partnership Agreement at $25,000,000, which capital was increased by an
amendment to the Partnership Agreement dated November 1, 1990 ("Amendment No.
1") to $28,500,000; and

         WHEREAS, Amendment No. 1 granted to the Policy Committee authority to
further increase NISCO's capitalization to $30,000,000, which increase was
approved by the Policy Committee by action taken on March 20, 1991; and

         WHEREAS, the parties agreed on July 31, 1992 to increase the capital of
NISCO to $32,000,000 and have contributed to NISCO the cash required, although a
formal amendment to the Partnership Agreement has not yet been executed; and

         WHEREAS, by this agreement the parties have agreed to further increase
the capital of NISCO to an aggregate of $38,400,000 and to authorize a further
increase in capital up to $41,400,000.

         WHEREAS, NISCO has been advised by Ford Motor Company, a substantial
customer, that products now being produced by NISCO for Ford and additional Ford
products scheduled for future production by NISCO over the next several years
will be removed from NISCO and awarded to another supplier as long as NISCO is
controlled by a Japan based manufacturer, i.e., Nishikawa; and

         WHEREAS, the parties have agreed that the partnership interest of
Standard held by NISCO Holding, Inc. should be increased to 50%, so that each
party will have an equal equitable interest, and that, subject to certain
limitations, Standard will be in primary charge of overall management of NISCO
for at least five years, as hereinafter provided; and

         WHEREAS, as a result of such change in percentage of ownership and of
management, as well as the parties' experience in operating NISCO and its
predecessor

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corporation for the past six years, the parties hereto have agreed
that certain matters relating to the management and operation of NISCO as set
forth in the Formation Agreement should be revised or clarified, all as
hereinafter provided.

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and intending to be legally bound hereby, the parties hereto, who are
hereinafter jointly called "the partners", hereby agree as follows:

         1. Overall Philosophy.

              1.1 During the period when it owned 60% of NISCO, Nishikawa
assumed a responsibility and fully supported the growth of NISCO. To enhance
customer relationships with United States automobile manufacturers, particularly
Ford Motor Company, the parties are in agreement that equal ownership of NISCO
is now essential. The advent of 50-50 ownership creates a different relationship
between the partners.

              1.2 Standard recognizes that, as an equal partner, its obligation
to assist and support NISCO has increased to a level equal to that of Nishikawa.
With equal ownership it is also appropriate that neither partner be obliged to
financially subsidize NISCO; instead there should be an effort at equalization
and normalization so that each of the partners is fairly reimbursed for any
significant expenditure made by it on behalf of NISCO. Further, it remains the
long-term goal of NISCO to be a complete "stand alone" operation as stated in
Paragraph 6.4 of the Formation Agreement.

              1.3 It is to the best interests of both Nishikawa and Standard
that NISCO emerge as a successful and profitable entity. The partners have
agreed that for the next five years Standard shall be primarily in charge of
overall management of NISCO, subject to certain limitations as subsequently
provided. Nevertheless, the partners have also agreed that they will jointly
cooperate and use their experience and expertise, in a spirit of friendship and

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unity, to make NISCO a solid and profitable company while simultaneously seeking
to reduce the cost of parent company support. Such mutual cooperation relates to
all aspects of NISCO's operations including technology, research and
development, sales, production, purchasing, finance and administration.

              1.4 The partners believe it is in the best interests of NISCO to
serve both Japanese transplant and domestic automobile manufacturers and that
NISCO should strive to balance its sales evenly between these two types of
customers.

              1.5 In order to achieve the goals set forth above, the partners
have agreed that continued growth of NISCO should be controlled as contemplated
by this Agreement.

         2. Increase in Capital.

              2.1 As noted above, the present partnership capital of NISCO is
$32 million, of which Nishikawa through Nishikawa of America has contributed
$19.2 million and Standard through NISCO Holding Company has contributed $12.8.
To bring its partnership equity to 48.10%, Standard agrees promptly after
execution of this agreement to contribute through NISCO Holding Company $6.4
million to the partnership capital of NISCO, bringing NISCO's total capital to
$38.4 million.

              2.2 NISCO has been awarded by Ford Motor Company contracts for
future production which will require establishment of a third plant. In
anticipation of the need for further capital, the partners have agreed to
authorize the Policy Committee to call from time to time for an increase in the
capital of NISCO to $41,400,000. The partners will subsequently determine how
the remainder of the cost of the third plant will be financed.

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         3. Purchase of 1.9% Partnership Interest.

              3.1 Standard agrees promptly after the execution of this Agreement
to cause NISCO Holding Company to purchase from Nishikawa of America a 1.90%
equity interest in NISCO at a price of $1,500,000, and Nishikawa agrees to cause
Nishikawa of America to sell such 1.90% interest at such price.

              3.2 Section 3.1 "Capital Contributions" of the Partnership
Agreement shall be amended to reflect the matters set forth in subparagraphs
2.1, 2.2 and 3.1 above. In addition, all references in the Partnership Agreement
to "60%" and "40%" shall be changed to "50%."

         4. Change in Policy Committee.

              4.1 In view of the fact that Nishikawa and Standard are to become
equal partners in NISCO, it has been agreed that the Policy Committee should be
reduced to six members and that both Nishikawa and Standard should designate
three members of the Policy Committee. They have also agreed that the Chairman
of the Policy Committee, who pursuant co the provisions of Article IV, Section 1
of the Bylaws of the Policy Committee shall be the Chief Executive Officer of
the partnership and shall preside at all meetings of the Policy Committee,
should have a second or casting vote. Section 5.1 of the Partnership Agreement
shall be revised accordingly. In addition, Section 9.4 of the Partnership
Agreement shall designate the partner represented by the Chairman of the Policy
Committee as the "Tax Matters" partner, provided that NISCO's current
independent accounting firm shall not be changed without the consent of both
partners.

              4.2 The partners have agreed that for the five-year period
beginning with the execution of this agreement Standard shall be entitled to
designate one of its Policy Committee representatives as the Chairman of the
Policy Committee of NISCO. Standard's

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initial designee as Chairman is Theodore K. Zampetis. If for any reason Mr.
Zampetis is unable to serve for the full five-year term, his designated
successor shall be subject to the approval of Nishikawa.

              4.3 The partners have also agreed that the right to designate the
Chairman of the Policy Committee will basically be provided to each party for
five years alternatively. At the end of the five-year period referred to in
subparagraph 4.2 above, the partners shall discuss in good faith whether
Standard should continue to be authorized to designate the Chairman of NISCO or
whether the Chairman shall be designated by Nishikawa. In deciding this issue,
the partners will consider, inter alia, the following factors:

                  (i) The position of Ford Motor Company at that time regarding
         purchases from Japanese-controlled parts suppliers and the significance
         of Ford as a customer of NISCO. If approximately half of NISCO's
         business is at that time with Ford and/or other traditional North
         American automakers, then the partners shall favorably consider that
         Standard continue to designate the Chairman unless Ford has changed its
         policy as to Japanese-controlled parts suppliers.

                  (ii) NISCO's financial success, or lack thereof, during the
         five-year period referred to above.

If after consideration of the foregoing factors and of all other factors which
either partner may consider relevant in determining whether the right to appoint
the Chairman of NISCO should remain with Standard or pass to Nishikawa, no
factor is controlling and the partners are unable in good faith to reach
agreement on the matter, Nishikawa shall have the right to designate the

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Chairman of the Policy Committee of NISCO for the next ensuing five-year period,
provided that the designated representative of Nishikawa shall be subject to the
approval of Standard.

              4.4 During the five-year period referred to in subparagraph 4.2
above and for any additional period in which Standard is entitled to designate
the Chairman of the Policy Committee, Nishikawa shall be entitled to designate
one of its Policy Committee representatives as the President of NISCO, who,
pursuant to Article IV, Section 2 of the Bylaws, shall serve as its Chief
Operating Officer. Nishikawa's initial designee as President is Manabu Higashi.
If for any reason Mr. Higashi is unable to serve for such period, his designated
successor shall be subject to the approval of Standard.

              4.5 During any period in which Nishikawa is entitled to designate
the Chairman of the Policy Committee, Standard shall be entitled to designate
the President of NISCO under the same conditions, mutatis mutandis, set forth in
Section 4.4 above.

         5. Limits on Authority of Chairman of Policy Committee.

              5.1 During the period when one partner has the right to designate
the Chairman of the Policy Committee and is therefore in primary charge of the
overall management of NISCO, the following limitations will apply to the second
or "casting" vote granted to the Chairman of the Policy Committee:

              (a) The Chairman shall not exercise his second or casting vote:

                  (i) to discharge the President of NISCO (so long as such
         President was designated by the other partner from one of its
         representatives on the Policy Committee);

                  (ii) to amend the Bylaws of the partnership;

                  (iii) to approve borrowing from banks or other third parties
         beyond the borrowings in place at the time this agreement is executed;

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                  (iv) to license to anyone any of NISCO's technical
         information.

                  (v) to determine whether to accept an order and to determine
         pricing for an order.

              (b) On matters other than those specified in subparagraph (a)
    above, if the Chairman exercises such casting vote and the Policy Committee
    representatives of the other partner (i.e., the partner which did not
    designate the Chairman) request a review, the action encompassed by such
    casting vote shall not take effect until the matter is reviewed in
    face-to-face discussions between top management of Nishikawa and Standard,
    during which discussions every effort will be made to reach an agreement to
    resolve the matter to the satisfaction of both parties.

              5.2 The partners acknowledge that neither the Chairman nor the
Policy Committee as a whole can amend the Partnership Agreement. The Partnership
Agreement can be amended only by a writing signed by both partners. It is
further understood that since the Partnership Agreement establishes the equity
capital of the partnership, the equity capital of NISCO cannot be increased
beyond the amount provided for in this Agreement without the approval of both
partners.

         6. Services Furnished to NISCO.

              6.1 The partners confirm that Sections 4.1 and 4.2 of the
Formation Agreement remain appropriate. However, it is deemed advisable to
clarify herein how those sections should be applied in practice.

              6.2 Effective upon the execution of this Agreement, or at such
later date as may be mutually agreed, when either partner is required to expend
substantial design and development efforts on products to be manufactured by
NISCO, such partner shall be

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compensated for its cost in performing such services through a cash payment
and/or a mutually agreed royalty. As used in the preceding sentence "cost" means
such partner's hourly salary cost (including fringe benefits) for employees of
such partner working on the design and development project, plus any material
and out-of-pocket expenses reasonably incurred by such partner.

              6.3 Whenever employees of Nishikawa or Standard (other than
executive officers) are required to spend significant time on matters other than
those specifically described in 6.2 above but which are solely for the benefit
of NISCO, the direct cost (as defined in 6.2 above) of such efforts will also be
billed to NISCO. Nishikawa and Standard will continue to furnish NISCO normal
and routine technical and business assistance without charge.

              6.4 Detailed statements for services described in paragraphs 6.2
and 6.3 above shall be promptly submitted to NISCO on a monthly basis, with a
copy furnished by NISCO to the partner not invoicing such services.

              6.5 NISCO shall reimburse Nishikawa and Standard for basic salary,
fringe benefits and travel and, in the case of short-term employees, living
expenses, of their respective employees who are transferred on either a short or
long term basis to NISCO. However, the respective partners will be directly
responsible, and not seek reimbursement from NISCO, for bonuses and similar
payments which the partners elect to award to such transferred employees, since
such bonuses are deemed to be made for the benefit of the partner's long term
relationship with its transferred employee.

              6.6 The partners agree to discuss in good faith the fairness of
requests by either party for reimbursement from NISCO of payments not
specifically described in paragraph 6.5 above which are incurred by the partners
in respect of their transferred employees.

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              6.7 A renewed effort will be made to reduce the number of
"trainers" sent from Japan on a temporary basis to train local employees of
NISCO

              6.8 At the present time no technology fee or royalty is being
charged NISCO by Nishikawa because, while fees are charged for the design of
specific products, the manufacturing process of NISCO uses Nishikawa existing
technology. Nishikawa and Standard reserve the right to request in the future a
fee or royalty for new technology as contemplated by the last sentence of
Paragraph 4.1 of the Formation Agreement.

         7. Purchases from Nishikawa and Standard.

              7.1 The partners confirm that Section 5 of the Formation Agreement
remains appropriate. However, it is deemed advisable to clarify herein how those
sections should be applied in practice.

              7.2 NISCO (along with Nishikawa) is a participant in Standard's
worldwide purchasing group and as such is entitled to receive the full benefit
of any price reduction in raw materials or other products which may result from
these joint purchasing efforts. NISCO is also entitled to directly benefit from
Standard's specially bargained volume discounts for computer hardware and
software, and any similar purchasing programs developed in the future by either
Standard or Nishikawa. No handling fee or commission will be charged NISCO under
such group purchasing arrangements so long as the raw materials or other
products are shipped directly to and paid for by NISCO.

              7.3 While direct purchasing by NISCO is in all cases encouraged,
in the event it is necessary for Nishikawa or Standard to purchase equipment or
materials on behalf of NISCO, the handling fee for the transaction shall not
exceed 5.05% plus actual shipping costs. To comply with Section 5.2 of the
Formation Agreement, NISCO shall furnish to the other partner a copy of each
handling fee invoiced to NISCO by a partner.

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              7.4 For materials or products to which Standard has added value,
as exemplified by "master batch" furnished NISCO by Oliver and "U-COAT"
furnished NISCO by Standard's Rocky Mount plant, the parties confirm that
Section 5.3 of the Formation Agreement remains applicable. If any materials or
products to which Nishikawa has added value are sold to NISCO, the same pricing
formula shall be applicable.

         8. Expansion of NISCO; License to Standard.

              8.1 The partners agree that, unless they subsequently decide
otherwise, NISCO's production capacity shall not be expanded during the next
five years beyond that already planned for business currently booked or
anticipated except to the extent such expansion is financed with funds generated
by NISCO's internal operations.

              8.2 In view of the limitation set forth in Section 8.1 above and
in recognition of the need from time to time for Standard to offer to its United
States OEM customers a complete line of automotive sealing products, including
sponge and multi-durometer extruded and molded rubber products, Nishikawa agrees
that, if a customer opportunity arises with one of Standard's United States OEM
customers which cannot be satisfied through NISCO, Nishikawa will provide
Standard an appropriate license, as agreed by Nishikawa, to use Nishikawa's
technology in the United States. Such license will be modeled after the present
agreements between Nishikawa and Standard Products (Canada) Ltd. and Silent
Channel Ltd., with such modifications as Nishikawa and Standard may deem
appropriate to make such license applicable to the United States market.

         9. Nishikawa of America Engineering Unit.

              9.1 Standard has been advised by Nishikawa that it intends to
establish through Nishikawa of America, Inc. ("NOA") an engineering unit which
will be staffed with

                                                                              12

permanent and temporary engineers transferred from Hiroshima. Eiso Tamaki will
serve initially as President.

              9.2 The basic function of the NOA engineering unit will be to
furnish engineering services to Nishikawa, NISCO and Standard and the
subsidiaries of Standard which Nishikawa has licensed, as well as to observe
first hand automotive engineering developments in the United. States at both
Japanese transplant and domestic OEMs. It is contemplated that some initial
design and development work will be performed by this unit.

              9.3 In appropriate cases the NOA engineering unit may also furnish
contract engineering services to third parties; however, Nishikawa has assured
Standard that no such engineering services will be furnished a third party which
could have an adverse effect, directly or indirectly, on NISCO, Standard or the
subsidiaries of Standard which Nishikawa has licensed. The engineering unit will
not be engaged in commercial manufacture of automotive parts, although it may
engage in experimental production.

              9.4 Any design or development work performed by the NOA unit on
behalf of NISCO will be billed to NISCO pursuant to the provisions of Section
6.1 above.

              9.5 Space will be made available for the NOA engineering unit at
Standard's Dearborn facility under lease terms which are to be mutually agreed.
Nishikawa's targeted effective date is January 1993, although there may be some
delay.

         10. Technical Cooperation.

              10.1 The partners agree to establish a Technological Exchange
Committee whose function shall be to collect, distribute and coordinate
technical and marketing data among Nishikawa, NOA, Standard and Standard's
subsidiaries.

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         11. Documents Required to Implement this Agreement.

              11.1 The partners shall execute an appropriate "Amendment No. 2"
to the Partnership Agreement to incorporate those matters agreed to herein which
customarily appear in a partnership agreement. They shall also execute such
further supplemental letters and documents as they may deem necessary fully to
implement the agreements contained herein.

         12. Consolidation of Financial Statements.

              12.1 If at some future time either Standard or Nishikawa wish to
discuss consolidating NISCO's financial statements, the partners will consider
in good faith such a proposal.

         13. Non-Substantive Changes to This Agreement.

              13.1 The partners reserve the right to request non-substantive
changes to this Agreement and/or the supplemental documentation referred to in
Section 11 above to reflect such advice as the partners may receive from their
respective tax, accounting and legal advisors. In the event the terms of this
Agreement create problems in obtaining appropriate visas for Japanese citizens
who are or have been employed by Nishikawa and are needed as employees of NISCO,
the parties agree to work together to resolve such problems for the benefit of
NISCO.

         14. Effect of This Agreement.

              14.1 In all other respects the Formation Agreement shall remain in
force to the extent it relates to the continuing business, rather than the
initial formation, of NISCO. To the extent any provision of the Formation
Agreement is inconsistent with this Agreement, this Agreement shall control. To
the extent any provision of this Agreement is inconsistent with the Partnership
Agreement as amended from time to time, this Agreement shall control and the
Partnership Agreement shall be amended to conform to this Agreement. Where there
is no specific provision in any of the foregoing documents and there is a
question as to the intention of

                                                                              14

the partners, the spirit expressed basically in Article I, "Overall Philosophy"
of this Supplemental Formation Agreement shall control.

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