Exhibit 10.3
Execution Copy
MASTER PURCHASE, SUPPLY AND DISTRIBUTION AGREEMENT
THIS MASTER PURCHASE, SUPPLY AND DISTRIBUTION AGREEMENT (this Master Agreement) is made and entered into as of this 7th day of May, 2004 (the Effective Date) by and between GEORGIA-PACIFIC CORPORATION, a Georgia corporation (Seller), and BLUELINX CORPORATION, a Georgia corporation (Buyer).
BACKGROUND
Seller and Buyer have entered into an Asset Purchase Agreement (the APA) pursuant to which Seller and Buyer provide for the sale to Buyer of the Acquired Assets (as defined in the APA) and the assumption by Buyer of the Assumed Liabilities (as defined in the APA) upon the terms and subject to the conditions set forth in the APA. Capitalized terms used herein and not otherwise defined herein shall have the meaning given to them in the APA.
Subject to the terms and conditions contained in this Master Agreement and the applicable Exhibit (as hereinafter defined) attached hereto, Seller desires to supply to Buyer, and Buyer desires to purchase and receive from Seller, the Products (as hereinafter defined) for marketing, distribution and sale by Buyer upon the terms and conditions set forth in this Master Agreement and the applicable Exhibit hereto.
NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
The following words, terms and phrases, when used herein, shall have the following respective meanings:
1.1 Exhibit shall mean Exhibit A, Exhibit B, Exhibit C, Exhibit D or Exhibit E to this Master Agreement, as applicable.
1.2 Intellectual Property means (i) copyrights and any other rights to any form or medium of expression; (ii) Seller Trade Secrets, privacy rights and any other protection for confidential information or ideas; (iii) patents and patent applications; (iv) any items, information or theories which are protectable or registrable under any copyright, patent, trade secret, confidentiality or other similar laws; (v) trademarks, service marks, trade-dress and trade names; and (vi) any other similar rights or interests recognized by applicable law; in each case associated with or of the Products but not including any of the foregoing to the extent developed or created by or for
Buyer or embodied in any work product developed or created by or for Buyer (including, without limitation, any trademarks and service marks of Buyer used or held for use in connection with the sale or distribution of Products as permitted pursuant to the terms of this Master Agreement).
1.3 Laws shall mean and include all United States and Canadian federal, provincial, state and local laws, statutes, codes, rules, regulations, ordinances, administrative rules and orders in effect from time to time, including, without limitation, any environmental or other laws relating to health and safety.
1.4 Products shall have the meaning given to such term in Exhibit A, Exhibit B, Exhibit C, Exhibit D or Exhibit E, as applicable.
1.5 Product Literature means all specifications, performance, and promotional claims, advertising materials, instructions for installation and use, other product literature, building code evaluation reports, other test reports, Material Safety Data Sheets (MSDS), and published warranties authorized by Seller for each Product.
1.6 Seller Proprietary Information means any and all of Sellers knowledge, data or information, including Seller Trade Secrets (i) concerning the design, specifications or other characteristics of the Products, except that which Seller has distributed or hereafter approves for distribution to the public and the Products themselves; (ii) which is contained in any material or information provided by Seller for use only by Seller and its distributors, or is marked by Seller as being confidential or proprietary; (iii) regarding the prices and terms of payment paid by or warranties or guarantees extended to any customer (other than Buyer) for any Product, except that which Seller approves for distribution to the public; and/or (iv) lists of Sellers prospective customers for the purchase of Products. Upon any expiration or termination of this Master Agreement, Buyer and Seller acknowledge and agree that Sellers customer lists shall no longer be considered to be a part of the Seller Proprietary Information. For the avoidance of doubt, the term Seller Proprietary Information does not include (a) any of the Acquired Assets; or (b) (A) information already in the public domain, or that comes into the public domain through no wrongful act of Buyer; (B) information made available to Buyer from third parties who are not under obligation of confidentiality with respect to such information; (C) information that the Buyer can demonstrate was already in Buyers possession and not subject to an obligation of confidentiality; and (D) information that Buyer can demonstrate was independently developed by employees of Buyer without reference to the Seller Proprietary Information. Notwithstanding anything to the contrary, Buyer may disclose Seller Proprietary Information pursuant to the requirements of a governmental agency, court order, discovery request in litigation or otherwise where under legal or regulatory compulsion, provided that, to the extent permissible, it gives Seller reasonable advance notice of such required disclosure sufficient to contest such requirement of disclosure or seek a protective order or other appropriate remedy.
1.7 Territory shall mean the United States and Canada.
1.8 Seller Trade Secret means any information of Seller, without regard to form, including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data,
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financial plans, product plans, which (A) derives economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from its disclosure or use and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Trade Secrets specifically include all inventions, discoveries and improvements described in Section 11.3 and any information described herein which Seller obtains from a third party which Seller treats as proprietary or designates as trade secrets, whether or not owned or developed by Seller. For the avoidance of doubt, the term Seller Trade Secrets does not include any of the Acquired Assets.
Buyer and Seller acknowledge and agree that the terms and conditions set forth in this Master Agreement are hereby incorporated into each of the Exhibits attached hereto. This Master Agreement, together with each Exhibit attached hereto, evidences and documents the terms of a fully integrated and binding agreement between Buyer and the applicable Seller regarding the sale and purchase of the Products identified in each Exhibit. Each Exhibit shall be subject to all of the terms and conditions of this Master Agreement. If there is any inconsistency between the provisions of this Master Agreement and the applicable Exhibit, the provisions of the Exhibit will prevail.
Seller agrees to provide reasonable assistance to Buyer and to cooperate in good faith with Buyer, consistent with past policies and practices, to arrange backhauling services to enable Buyer to effectively and efficiently plan, manage and utilize Buyers trucking operations.
If any claim or demand is asserted against Buyer by a third party with respect to the indemnities set forth in this Agreement (a Third Party Claim), Buyer shall give prompt written notice thereof to Seller, including copies of any pleadings in Buyers possession. Within twenty (20) days of receipt of such notice, Seller shall either (i) pay the Third Party Claim in full or upon compromise agreed to by Seller and such third party, and obtain a complete and final written, release of Buyer from the Third Party Claim, or (ii) notify Buyer that Seller disputes the Third Party Claim and intends to defend against it, and thereafter so defend and pay any adverse
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final judgment, award or settlement amount in regard thereto. Such defense shall be controlled by Seller, and the costs and expenses of such defense shall be borne by it. Buyer may monitor the defense of the Third Party Claim with its own counsel and at its own expense. If Seller fails to take action on a Third Party Claim within twenty (20) days as set forth above, then Buyer shall have the right to pay, compromise or defend the Third Party Claim and to assert the amount of any payment on the Third Party Claim plus the costs and expenses of defense or settlement as an indemnity claim against Seller. Buyers failure to conduct independent Product testing or to take other steps to verify the accuracy of Sellers Product Literature or its representations or warranties made herein shall not be deemed to be negligence or evidence of negligence adversely, affecting, restricting or compromising Buyers rights under this Section 9.2 in any way.
The rights provided for in this Section 10.6 are in addition to but without duplication of, and not in limitation of, any other right or remedy available to the non-breaching party (including, without limitation, any right of setoff, offset, combination of accounts, deduction, counterclaim, retention, or withholding), whether arising under this Master Agreement, any applicable Exhibit hereto or any other agreement, under applicable law, in equity, or otherwise. For purposes of this Section 10.6, the term owed means, as of any date of determination, any amounts invoiced, capable of being invoiced, or accrued as of such date. Each party shall give the other party notice of any setoff pursuant to this Section 10.6, as soon as practicable thereafter; provided that failure to give such notice shall not affect the validity of the setoff.
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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Master Agreement as of the day and year first above written.
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Seller |
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GEORGIA-PACIFIC CORPORATION |
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By: |
/s/ David J. Paterson |
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Name: David J. Paterson |
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Title: Executive Vice PresidentBuilding Products |
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Buyer |
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BLUELINX CORPORATION |
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By: |
Steven C. Hardin |
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Name: Steven C. Hardin |
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Title: Vice PresidentWest |
[Signature Page to Master Purchase, Supply and Distribution Agreement]
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EXHIBIT A
ENGINEERED LUMBER PRODUCTS
The terms and conditions of the Master Agreement are incorporated herein by reference. In the event of any inconsistency between this Exhibit A and the Master Agreement, the terms of this Exhibit A shall control.
ARTICLE 1
DEFINITIONS
1.1 Definitions. For purposes of this Exhibit A, the following terms shall have the following meanings:
Contract Year means each consecutive twelve (12) month period following the Effective Date of the Master Agreement.
Products means Wood I Beam, G-P Lam® LVL, and Rim Board manufactured by Seller at its facilities in Roxboro, North Carolina and Ocala, Florida, and such other products as may be added from time to time upon the mutual agreement of Seller and Buyer. For the avoidance of doubt, the name associated with any of the Products may be changed upon the mutual agreement of Buyer and Seller for marketing or other purposes, and the definition of Products shall include all products substantially similar to the Products listed above, regardless of the name given to such products.
1.2 Other Definitional Provisions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Master Agreement.
ARTICLE 2
PURCHASE AND SUPPLY
2.1 All Output. During the term hereof, Seller shall supply the Products exclusively to Buyer and, subject to Section 2.2 hereof, Buyer shall use Commercially Reasonable Efforts (as hereinafter defined) to purchase from Seller*** of the Products manufactured by Seller. For purposes of this Exhibit A, the term Commercially Reasonable Efforts means that Buyer will ensure that the*** manufacturing facilities are*** utilized for customers*** .
2.2 ***
2.3 ***
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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2.4 New Seller Manufacturing Facilities. If Seller (i) adds greater than*** of additional capacity on an annualized basis at*** or (ii) purchases, builds or otherwise acquires any new or additional facilities that will be utilized to manufacture the Products, then Buyer and Seller agree to negotiate in good faith regarding how such additional quantities of and capacity for the Products will be sold, purchased, marketed, promoted and distributed by the parties.
ARTICLE 3
PRICING
***
ARTICLE 4
SALES FORCE, CONSULTING AND MARKETING
4.1 Sales Force and Consulting. Seller and Buyer agree (i) to use commercially reasonable efforts to sell the Products, (ii) to cause their respective employees to cooperate in all marketing and sales efforts related to the sale of the Products*** .
4.2 Marketing. Buyer and Seller shall mutually agree on the level and extent of marketing aid and support that Seller will provide to Buyer during each twelve (12) month period following the Effective Date. Such aid may include, without limitation, marketing and promotion through Product Literature and print advertising.
ARTICLE 5
***
ARTICLE 6
PRODUCTION SCHEDULE
Seller agrees to notify Buyer weekly regarding the production scheduling of Sellers manufacturing facilities of engineered lumber Products. Other than as a result of force majeure*** , Seller shall not reduce the availability to Buyer of Products*** or cease the manufacture of Products at the*** manufacturing facilities without twelve (12) months prior notice to Buyer.***
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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ARTICLE 7
INTELLECTUAL PROPERTY
7.1 Ownership of Intellectual Property. All intellectual property including, but not limited to, certain software developed for or used in connection with technical services provided by Buyer in connection with the Products belongs solely and exclusively, to Seller (the Engineered Lumber Intellectual Property).
7.2 License. In connection with Buyers provision of technical services in relation to sales of the Products, Seller hereby grants a limited, non-exclusive, royalty free, fully-paid license to Buyer, with the right to sublicense to its customers, for the Engineered Lumber Intellectual Property. The license granted hereby shall survive the termination of this Exhibit A and the Master Agreement as it relates to this Exhibit A.
ARTICLE 8
TERM
Unless earlier terminated in accordance with the provisions of the Master Agreement or this Exhibit A, the term of the agreement between Buyer and Seller with respect to this Exhibit A and the incorporated terms of the Master Agreement shall commence on the Effective Date and shall thereafter continue in effect until the fifth (5th) anniversary of the Effective Date (the Initial Term). Either party may terminate this Exhibit A and the Master Agreement, solely as it relates to this Exhibit A, by giving two (2) years prior written notice thereof to the other party, which written notice may not be given by either party prior to the fourth (4th) anniversary of the Effective Date. If neither party has delivered a written termination notice to the other party pursuant to the foregoing, following the Initial Term the term of this agreement shall continue until either party terminates this Exhibit A and the Master Agreement, solely as it relates to this Exhibit A, by giving two (2) years prior written notice thereof to the other party.
ARTICLE 9
NOTICES
All notices and other communications required or permitted under the Master Agreement or this Exhibit A shall be in writing and given to the parties at the addresses listed below (or to such other address as shall at any time be designated by any party in writing to the other parties): (a) by certified U.S. mail, return receipt requested, postage prepaid; (b) by facsimile transmission (provided confirmation of the receipt thereof is obtained); (c) by a nationally-recognized overnight courier service (e.g., Federal Express); or (d) by hand-delivery:
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If to the Seller: |
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Georgia-Pacific Corporation 55 Park Place, 17th Floor Atlanta, GA 30303 Attention: Walter Robbins Phone: 404-652-3549 Fax: 404-487-3989 |
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If to Buyer: |
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BlueLinx Corporation 4100 Wildwood Parkway Atlanta, GA 30339 Attention: Barbara V. Tinsley Phone: 770-953-7089 Fax: 770-953-7008 |
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All such notices shall be deemed effective (i) when actually delivered or when sent by facsimile (upon electronic confirmation of receipt), (ii) three (3) days after being deposited in the United States mail, first class, postage prepaid, or (iii) one (1) day after being delivered to a nationally-recognized overnight delivery service.
[NOTE: Any Product Warranties will be attached to this Exhibit A.]
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EXHIBIT B
IWP EXCLUSIVE PRODUCTS
The terms and conditions of the Master Agreement are incorporated herein by reference. In the event of any inconsistency between this Exhibit B and the Master Agreement, the terms of this Exhibit B shall control.
ARTICLE 1
DEFINITIONS
1.1 Definitions. For purposes of this Exhibit B, the following terms shall have the following meanings:
Catawba® Products means Catawba® Hardboard Siding and PrimeTrim®.
Contract Year means each consecutive twelve (12) month period following the Effective Date of the Master Agreement.
Decking means Particleboard Decking (Novodeck® and Novoflor®).
Decorative Paneling means Simulated Wood Grain and Decorative Finished Wall Paneling, Prefinished Real Wood Paneling, Wainscot Paneling, Melamine Finish on Hardboard (Tileboard).
Products means Simulated Wood Grain and Decorative Finished Wall Paneling, Prefinished Real Wood Paneling, Wainscot Paneling, Melamine Finish on Hardboard (Tileboard), Catawba® Hardboard Siding, PrimeTrim®, Particleboard Decking (Novodeck® and Novoflor®) and such other products as may be added from time to time upon the mutual agreement of Seller and Buyer. For the avoidance of doubt, Buyer acknowledges and agrees that Seller reserves the right to change the name associated with any of the Products for marketing or other purposes, and the definition of Products shall include all products substantially similar to the Products listed above, regardless of the name given to such products.
1.2 Other Definitional Provisions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Master Agreement.
ARTICLE 2
PURCHASE AND SUPPLY
2.1. All Output. During the term hereof, and subject to Section 2.2 and Section 5.2 hereof, Seller shall supply the Products exclusively to Buyer for distribution and marketing in the Territory and Buyer shall use Commercially Reasonable Efforts (as hereinafter defined) to
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purchase from Seller*** of the Products manufactured by Seller for distribution and marketing in the Territory. For purposes, of this Exhibit B, the term Commercially Reasonable Efforts means that Buyer will ensure that Sellers manufacturing capabilities for the Products are*** utilized*** .
2.2 ***
2.3 ***
ARTICLE 3
PRICING
***
ARTICLE 4
TERM
Unless earlier terminated in accordance with the provisions of the Master Agreement or this Exhibit B, the term of the agreement between Buyer and Seller with respect to this Exhibit B and the incorporated terms of the Master Agreement shall commence on the Effective Date and shall thereafter continue in effect until the fifth (5th) anniversary of the Effective Date (the Initial Term). Either party may terminate this Exhibit B and the Master Agreement, solely as it relates to this Exhibit B, by giving two (2) years prior written notice thereof to the other party, which written notice may not be given by either party prior to the fourth (4th) anniversary of the Effective Date. If neither party has delivered a written termination notice to the other party pursuant to the foregoing, following the Initial Term the term of this agreement shall continue until either party terminates this Exhibit B and the Master Agreement, solely as it relates to this Exhibit B, by giving two (2) years prior written notice thereof to the other party.
ARTICLES
MARKETING AND SALES
5.1 Sales Efforts. Seller and Buyer agree (i) to use commercially reasonable efforts to sell the Products, (ii) to cause their respective employees to cooperate in all marketing and sales efforts related to the sale of the Products*** .
5.2 ***
5.3 ***
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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5.4 Product Promotion. Buyer and Seller shall mutually agree on the level and extent of marketing aid and support that Seller will provide to Buyer during each twelve (12) month period following the Effective Date. Such aid may include, without limitation, marketing and promotion through Product Literature and print advertising.***
ARTICLE 6
FIELD REPRESENTATIVES AND CLAIMS INSPECTIONS
6.1 Field Representatives. For all Products, Buyer agrees to employ field representatives to perform reasonable and customary support services related to the Products. Buyer and Seller agree that the nature and extent of such services shall be determined by what is typical, standard or customary in the relevant marketplace.
6.2 ***
ARTICLE 7
NOTICES
All notices and other communications required or permitted under the Master Agreement or this Exhibit B shall be in writing and given to the parties at the addresses listed below (or to such other address as shall at any time be designated by any party in writing to the other party):
By certified U.S. mail, return receipt requested, postage prepaid; (b) by facsimile transmission (provided confirmation of the receipt thereof is obtained); (c) by a nationally-recognized overnight courier service (e.g., Federal Express); or (d) by hand-delivery:
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If to the Seller: |
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Georgia-Pacific Corporation 55 Park Place, 17th Floor Atlanta, GA 30303 Attention: H. Elliott Savage Phone: 404-652-3615 Fax: 404-749-2379 |
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If to Buyer: |
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BlueLinx Corporation 4100 Wildwood Parkway Atlanta, GA 30339 Attention: Barbara V. Tinsley Phone: 770-953-7089 Fax: 770-953-7008 |
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*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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All such notices shall be deemed effective (i) when actually delivered or when sent by facsimile (upon electronic confirmation of receipt), (ii) three (3) days after being deposited in the United, States mail, first class, postage prepaid, or (iii) one (1) day after being delivered to a nationally-recognized overnight delivery service.
[NOTE: Any Product Warranties will be attached to this Exhibit B.]
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EXHIBIT C
IWP NON-EXCLUSIVE PRODUCTS
The terms and conditions of the Master Agreement are incorporated herein by reference. In the event of any inconsistency between this Exhibit C and the Master Agreement, the terms of this Exhibit C shall control.
ARTICLE 1
DEFINITIONS
1.1 Definitions. For purposes of this Exhibit C, the following terms shall have the following meanings:
National Accounts shall mean*** and such other parties as may be added from time to time upon the mutual agreement of Seller and Buyer.
Products means Particleboard, Industrial and Dealer Hardboard, Thick and Thin Medium Density Fibreboard, Thermally Fused Melamine Board (Duramine), Softboard Sheathing, Hardwood Plywood and such other products as may be added from time to time upon the mutual agreement of Seller and Buyer. For the avoidance of doubt, Buyer acknowledges and agrees that Seller reserves the right to change the name associated with any of the Products for marketing or other purposes, and the definition of Products shall include all products substantially similar to the Products listed above, regardless of the name given to such products.
1.2 Other Definitional Provisions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Master Agreement.
ARTICLE 2
PURCHASE AND SUPPLY
2.1 Buyer Obligations. Buyer agrees to use commercially reasonable efforts (subject to availability of supply, distance to customer and pricing levels determined to be at or near market averages) to purchase Products from Seller rather than purchasing competing products from third party manufacturers or suppliers. For Products that are priced at or near market average prices, Buyer agrees to designate Seller as its preferred supplier of such Products, as opposed to purchasing competing products, or to otherwise give preferential consideration to Seller in respect of such Products relative to competing products.
2.2 Seller Obligations. Seller agrees to use commercially reasonable efforts for Products that are priced at or near market average prices to designate Buyer as its preferred distributor of such Products and to otherwise give preferential consideration to Buyer in respect of such Products relative to distributors or dealers.
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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2.3 Sale of Products*** . Notwithstanding anything to the contrary set forth in the Master Agreement or in this Exhibit C, Buyer acknowledges and agrees that*** .
ARTICLE 3
PRICING
***
ARTICLE 4
MARKETING AND SALES
4.1 Cooperation. Seller and Buyer agree to cause their respective employees to cooperate in all marketing and sales efforts related to the sale of the Products to National Accounts*** .
4.2 Product Promotion. Buyer and Seller shall mutually agree on the level and extent of marketing aid and support that Seller will provide to Buyer during each twelve (12) month period following the Effective Date. Such aid may include, without limitation, marketing and promotion through Product Literature and print advertising.
ARTICLE 5
FIELD REPRESENTATIVES AND CLAIMS INSPECTIONS
5.1 Field Representatives. Unless otherwise agreed by the parties, Buyer agrees to employ field representatives to perform certain services related to the Products to*** and such other customers as the parties may mutually agree. Such services shall include, without limitation, in-store support, store aisle management, sign installation, literature stocking and point of purchase display maintenance.***
5.2 ***
ARTICLE 6
TERM
Unless earlier terminated in accordance with the provisions of the Master Agreement or this Exhibit C, the term of the agreement between Buyer and Seller with respect to this Exhibit C and the incorporated terms of the Master Agreement shall commence on the Effective Date and shall thereafter continue in effect until the fifth (5th) anniversary of the Effective Date (the Initial Term). Either party may terminate this Exhibit C and the Master Agreement, solely as it relates to this Exhibit C, by giving two (2) years prior written notice thereof to the other party, which written notice may not be given by either party prior to the fourth (4th) anniversary of the Effective Date. If neither party has delivered a written termination notice to the other party pursuant to the foregoing, following the Initial Term the term of this agreement shall continue until either party terminates this Exhibit C and the Master
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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Agreement, solely as it relates to this Exhibit C, by giving two (2) years prior written notice thereof to the other party.
ARTICLE 7
NOTICES
All notices and other communications required or permitted under the Master Agreement or this Exhibit C shall be in writing and given to the parties at the addresses listed below (or to such other address as shall at any time be designated by any party in writing to the other parties): (a) by certified U.S. mail, return receipt requested, postage prepaid; (b) by facsimile transmission (provided confirmation of the receipt thereof is obtained); (c) by a nationally-recognized overnight courier service (e.g., Federal Express); or (d) by hand-delivery:
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If to the Seller: |
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Georgia-Pacific Corporation 55 Park Place, 17th Floor Atlanta, GA 30303 Attention: H. Elliott Savage Phone: 404-652-3615 Fax: 404-749-2379 |
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If to Buyer: |
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BlueLinx Corporation 4100 Wildwood Parkway Atlanta, GA 30339 Attention: Barbara V. Tinsley Phone: 770-953-7089 Fax: 770-953-7008 |
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All such notices shall be deemed effective (i) .when actually delivered or when sent by facsimile (upon electronic confirmation of receipt), (ii) three (3) days after being deposited in the United States mail, first class, postage prepaid, or (iii) one (1) day after being delivered to a nationally-recognized overnight delivery service.
[NOTE: Any Product Warranties will be attached to this Exhibit C.]
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EXHIBIT D
LUMBER PRODUCTS
The terms and conditions of the Master Agreement are incorporated herein by reference. In the event of any inconsistency between this Exhibit D and the Master Agreement, the terms of this Exhibit D shall control.
ARTICLE 1
DEFINITIONS
1.1 Definitions. For purposes of this Exhibit D, the following terms shall have the following meanings:
Contract Year means each consecutive twelve (12) month period following the Effective Date of the Master Agreement.
Products means, Southern Lumber, Western Lumber, Hardwood Lumber, Treated Lumber and such other products as may be added from time to time upon the mutual agreement of Seller and Buyer. For the avoidance of doubt, Buyer acknowledges and agrees that Seller reserves the right to change the name associated with any of the Products for marketing or other purposes, and the definition of Products shall include all products substantially similar to the Products listed above, regardless of the name given to such products.
1.2 Other Definitional Provisions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Master Agreement.
ARTICLE 2
PURCHASE AND SUPPLY REQUIREMENTS
2.1 Southern Lumber. Each Contract Year during the term hereof, Seller agrees to make available for sale to Buyer*** Southern Lumber (the Southern Lumber Minimum), which amount shall be broken down to a designated number of truckloads per week from the specified Seller mills. The breakdown per mill attached hereto shall be applicable for the first Contract Year following the Effective Date. Contracted volumes/tallies may be revised, amended or modified based on mutual agreement between Buyer and Seller.
2.2 Green Douglas Fir and Hem Fir. Each Contract Year during the term hereof, Seller agrees to make available for sale to Buyer*** Green Douglas Fir and*** Hem Fir (the Green Douglas Fir and Hem Fir Minimum), which amount shall be broken down to a certain number of carloads/truckloads per week from the specified Seller mills. The initial contracted volumes/tallies shall be as set forth in the Green Douglas Fir and Hem Fir volume schedule attached hereto (the Fir Volume Schedule). Contracted volumes/tallies may be revised, amended or modified based on mutual agreement between Buyer and Seller.
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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2.3 ***
ARTICLE 3
PRICING
***
ARTICLE 4
FIELD REPRESENTATIVES AND CLAIMS INSPECTIONS
4.1 Field Representatives. Unless otherwise agreed by the parties, Buyer agrees to employ field representatives to perform certain services related to the Products to various customers of the Products, as mutually agreed by the parties. Such services shall include, without limitation, in-store support, Product knowledge classes, store aisle management, sign installation, materials inspections, literature stocking and point of purchase display maintenance. Seller agrees to pay to Buyer*** .
4.2 ***
ARTICLE 5
TERM
Unless earlier terminated in accordance with the provisions of the Master Agreement or this Exhibit D, the term of the agreement between Buyer and Seller with respect to this Exhibit D and the incorporated terms of the Master Agreement shall commence on the Effective Date and shall thereafter continue in effect until the fifth (5th) anniversary of the Effective Date (the Initial Term). Either party may terminate this Exhibit D and the Master Agreement, solely as it relates to this Exhibit D, by giving two (2) years prior written notice thereof to the other party, which written notice may not be given by either party prior to the fourth (4th) anniversary of the Effective Date. If neither party has delivered a written termination notice to the other party pursuant to the foregoing, following the Initial Term the term of this agreement shall continue until either party terminates this Exhibit D and the Master Agreement, solely as it relates to this Exhibit D, by giving two (2) years prior written notice thereof to the other party.
ARTICLE 6
NOTICES
All notices and other communications required or permitted under the Master Agreement or this Exhibit D shall be in writing and given to the parties at the addresses listed below (or to such other address as shall at any time be designated by any party in writing to the other party): (a) by certified U.S. mail, return receipt requested, postage prepaid; (b) by facsimile transmission (provided confirmation of the receipt thereof is obtained); (c) by a nationally-recognized overnight courier service (e.g., Federal Express); or (d) by hand-delivery:
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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If to the Seller: |
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Georgia-Pacific Corporation 55 Park Place, 15th Floor Atlanta, GA 30303 Attention: Clayton Blanton Phone: 404-652-8026 Fax: 404-230-5711 |
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If to Buyer: |
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BlueLinx Corporation 4100 Wildwood Parkway Atlanta, GA 30339 Attention: Barbara V. Tinsley Phone: 770-953-7089 Fax: 770-953-7008 |
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All such notices shall be deemed effective (i) when actually delivered or when sent by facsimile (upon electronic confirmation of receipt), (ii) three (3) days after being deposited in the United States mail, first class, postage prepaid, or (iii) one (1) day after being delivered to a nationally-recognized overnight delivery service.
[NOTE: Any Product Warranties will be attached to this Exhibit D.]
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EXHIBIT E
STRUCTURAL PANELS PRODUCTS
The terms and conditions of the Master Agreement are incorporated herein by reference. In the event of any inconsistency between this Exhibit E and the Master Agreement, the terms of this Exhibit E shall control.
ARTICLE 1
DEFINITIONS
1.1 Definitions. For purposes of this Exhibit E, the following terms shall have the following meanings:
Contract Year means each consecutive twelve (12) month period following the Effective Date of the Master Agreement.
Non-Standard Products means Products that are utility grade, shop grade, rejects, decorative siding, on-grade production overruns, veneer and webstock.
Products means Plytanium Brand Products (Ply-Bead® Panels, Radiant Barrier Roof Sheathing, Sanded Panels, Sheathing, Siding and Sturd-I-Floor®), Oriented Strand Board and Non-Standard Products, and such other products as may be added from time to time upon the mutual agreement of Seller and Buyer. For the avoidance of doubt, Buyer acknowledges and agrees that Seller reserves the right to change the name associated with any of the Products for marketing or other purposes, and the definition of Products shall include all products substantially similar to the Products listed above, regardless of the name given to such products.
1.2 Other Definitional Provisions. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Master Agreement.
ARTICLE 2
PURCHASE AND SUPPLY
2.1 Purchase Volumes.
(a) Annual. During*** , and except as otherwise provided in this Section 2.1, Seller agrees to supply and Buyer agrees to purchase the following volumes of Products:
***
(b) Weekly. Except as otherwise provided in this Section 2.1, Seller agrees to supply to Buyer and Buyer agrees to purchase from Seller*** , and to attempt in good faith to
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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supply to Buyer, and if available Buyer agrees to purchase from Seller*** . In addition*** , Seller agrees to attempt in good faith to supply to Buyer*** . Buyer and Seller agree to cooperate in good faith and to communicate with one another regarding production scheduling and Buyers daily sales and inventory volumes in order to facilitate the purchase and sale of Products.***
(c) Volumes Subject to Variation. Buyer expressly acknowledges and agrees that the availability of the volumes set forth on Schedule 1 is subject to variation depending upon a number of factors including, without limitation***. In the event Seller changes its ongoing production capacity*** . The nature of the relationship between Buyer and Seller with respect to the Products is such that*** . In the event Seller is unable during any week to supply any portion of the*** , then,*** Seller will supply*** .
(d) Sanded Panels and Siding. Notwithstanding anything to the contrary set forth in this Exhibit E, Buyer acknowledges and agrees that Seller*** .
(e) Sturd-I-Floor®. Buyer acknowledges and agrees that Seller*** .
2.2 Failure to Purchase or Supply.
(a) Buyers Obligations. Subject to Section 2.2(c) hereof, in the event Buyer fails to purchase any*** when such*** is available for purchase from Seller*** . Buyer shall pay such amount to Seller within*** following receipt of Sellers invoice therefore.
(b) Sellers Obligations. On average during*** , Seller shall be obligated to supply to Buyer at least the*** and the*** set forth on Schedule 1*** . In the event during any*** Seller fails to supply at least the*** and the*** set forth on Schedule 1 (any shortfall amount being the Seller Shortfall), then, with respect to the*** , Seller shall*** determined in accordance with Section 5 of the Pricing Schedule. Upon Sellers agreement to*** , Seller*** . Within*** , Seller shall*** to Buyer under this Section 2.2(b).
(c) Shutdown of Sellers Manufacturing Facilities. In the event Seller shuts down or otherwise takes any one or more of its manufacturing facilities for the Products offline as a result of general market or economic conditions or for any other reason (in each case, a Shutdown), Buyer and Seller*** during such Shutdown with respect to the*** .
2.3 Sales to*** .*** acknowledges and agrees that*** , to sell the Products to the*** set forth on Schedule 2(a) attached hereto. During the term hereof, Buyer agrees*** .
2.4 Sale of the Products*** . *** shall have the right to sell*** to the*** identified on Schedule 2(b) attached hereto and incorporated herein by this reference. During the term hereof, Seller agrees*** .
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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2.5 Sale of Products*** . Notwithstanding anything to the contrary set forth in the Master Agreement or in this Exhibit E, Buyer acknowledges and agrees that*** .
2.6 Electronic Data Interchange. Buyer and Seller agree to utilize, at least to the extent historically utilized by Seller with respect to the Products, electronic data interchange to facilitate the interaction between Buyer and Seller for such functions as (but not limited to) order entry and freight systems. Buyer acknowledges and agrees that Seller shall have the right to impose such reasonable restrictions on Buyers access to Sellers businesses processes or data to the extent necessary to protect the Seller Proprietary Information in connection with such electronic data interchange.
2.7 Marketing. At Sellers discretion, Seller agrees to provide marketing aid to Buyer. Such aid may include, without limitation, marketing and promotion through Product Literature and print advertising. Buyer will use reasonable efforts to implement any marketing programs reasonably suggested by Seller. Seller may pay to Buyer sales incentives to assist Buyer in motivating Buyers employees.
ARTICLE 3
PRICING
***
ARTICLE 4
FIELD REPRESENTATIVES AND CLAIMS INSPECTIONS
4.1 Field Representatives. Buyer agrees to employ field representatives to perform certain services related to the Products to*** as long as they are customers of the Products. Such services shall include, without limitation, in-store support, Product knowledge classes, store aisle management (including Product rotation), sign installation, materials inspections, literature stocking and point of purchase display maintenance. Seller agrees to pay to Buyer*** .
4.2 ***
ARTICLE 5
TERM
Unless earlier terminated in accordance with the provisions of the Master Agreement or this Exhibit E, the term of the agreement between Buyer and Seller with respect to, this Exhibit B and the incorporated terms of the Master Agreement shall commence on the Effective Date and shall thereafter continue in effect until the fifth (5th) anniversary of the Effective Date (the Initial Term). Either party may terminate this Exhibit E and the Master Agreement, solely as it relates to this Exhibit E, by giving two (2) years prior written notice thereof to the other party, which written notice may not be given by either party prior to the fourth (4th) anniversary of the Effective Date. If neither party has delivered a written
*** Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Rule 24b-2 of the Exchange Act.
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termination notice to the other party pursuant to the foregoing, following the Initial Term the term of this agreement shall continue until either party terminates this Exhibit E and the Master Agreement, solely as it relates to this Exhibit E, by giving two (2) years prior written notice thereof to the other party.
ARTICLE 6
NOTICES
All notices and other communications required or permitted under the Master Agreement or this Exhibit E shall be in writing and given to the parties at the addresses listed below (or to such other address as shall at any time be designated by any party in writing to the other parties): (a) by certified U.S. mail, return receipt requested, postage prepaid; (b) by facsimile transmission (provided confirmation of the receipt thereof is obtained); (c) by a nationally-recognized overnight courier service (e.g., Federal Express); or (d) by hand-delivery:
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If to the Seller: |
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Georgia-Pacific Corporation 55 Park Place, 19th Floor Atlanta, GA 30303 Attention: Ronald L. Paul Phone: 404-652-8404 Fax: 404-487-4365 |
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If to Buyer: |
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BlueLinx Corporation 4100 Wildwood Parkway Atlanta, GA 30339 Attention: Barbara V. Tinsley Phone: 770-953-7089 Fax: 770-953-7008 |
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All such notices shall be deemed effective (i) when actually delivered or when sent by facsimile (upon electronic confirmation of receipt), (ii) three (3) days after being deposited in the United States mail, first class, postage prepaid, or (iii) one (1) day after being delivered to a nationally-recognized overnight delivery service.
[NOTE: Any Product Warranties will be attached to this Exhibit E.]
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