ITDG Independent Tire Dealers Group Volume Bonus Program 2012 (Revised 3/27/2012)
INTRODUCTION Alliance Tire Americas, Inc. [ATA] classifies its Dealers based on their annual purchase commitments. The three classifications are: Dealer, Major, and Distributor. Pricing is calculated by taking a designated percentage discount off of the current List Price in effect at the time of purchase. DEALER A Dealer is defined as a replacement tire dealer with a currently active account number. MAJOR DEALER A Major Dealer is defined as a replacement tire dealer with a currently active account number and purchases from ATA greater than $500,000 per year. DISTRIBUTOR A Distributor is defined as a replacement tire dealer with a currently active account number and purchases from ATA greater than $1,000,000 per year. ATA reserves the right to change its list prices at any time without notice. 2
ITDG VOLUME BONUS PROGRAM This program applies only to authorized Alliance Tire Americas [ATA] dealers who agree to the terms and conditions outlined herein. The terms, discounts and conditions stated in this Program apply to ATA s Galaxy, Primex, Constellation brands, and also includes Aeolus and Triangle brands that are marketed by ATA. ATA may also include other brands either owned by ATA, or over which ATA has a distribution agreement. Merchandise other than the defined products may or may not be covered under this program. ELIGIBILITY In order for a Dealer who is a member of the ITDG to be eligible to participate in the ITDG Volume Bonus [VB] Program, the Dealer must be designated as either a Dealer or Major Dealer. Dealers purchasing at the Distributor level are not eligible to participate in the Volume Bonus Program. Should an ITDG member wish to purchase from ATA at a discount level that exceeds MAJOR, then this automatically disqualifies their purchases from the ITDG Volume Bonus program. It is the ITDG Member s obligation to immediately report such intent to the ITDG. Should an ITDG Member change to a higher discount at any time during a quarter, the entire quarter will be considered at the discounted level and as such, all purchases in this quarter will not qualify for the Volume Bonus. ATA is pleased to extend to the ITDG the Major level pricing based on the dealer s performance. This is based on the understanding that the ITDG management has influence over the purchases made by its members and that it will assist ATA in promoting the ATA brands. CONTINUED ELIGIBILITY * ATA offers their ITDG program based upon a commitment towards continual growth in purchases. * ATA reserves the right to change prices at any time and without notice. * ATA welcomes the ITDG to discuss special needs and to work with ATA to develop programs that offer mutual benefits. This may include unique programs in certain geographic areas, inventory specials, etc. * ATA reserves the right to restrict volume bonus eligibility on certain tires that are marked as specials, etc. 3
* ATA reserves the right to decline admission to the ATA dealer base at any time for any ITDG member. This may result in some ITDG members not being eligible to purchase ATA products. Reasons for this may vary. The most common reason is market saturation due to long standing ATA dealers operating in a market. The ATA Regional Manager determines admission of dealers in his territory (this goes beyond ITDG members). ITDG PURCHASE CREDIT ITDG members will receive 125% purchase credit towards their year-end ITDG volume bonus and dividend. Purchase credit will be calculated on the eligible revenue from the sale of eligible products (as defined on page 3 herein), minus any credits or unpaid balances. ATA Tire will identify certain tires as ineligible based on a special discounted price, etc. Ineligible items may include Blemished, down-graded (seconds or tube type), used, clearance, or additionally discounted tires. ITDG STOCKHOLDER BONUS (AVB) ATG will extend the following annual volume bonus paid to the ITDG office: A. For purchases totaling not less than $2,000,000 and up to $2,999,999 a 1% AVB will be paid. B. For purchases totaling not less than $3,000,000, a 2% AVB will be paid. FREIGHT POLICY ATA Tire provides its Dealers with a freight pre-paid policy for all orders shipped from a given ATA Distribution Center provided that the total weight of the deliverable tires exceeds 2,500 lbs. Less than 2,500 lbs. 2,500 to 4,999 lbs. 5,000 to 24,999 lbs 25,000+ lbs. Freight Collect Freight Pre-Paid Discount 2% Trailer Load Discount of 4% Container-Direct Shipments ATA will offer a 10% Container-Direct discount. 4
MERCHANDISE RETURN POLICY Only product originally purchased directly from Alliance Tire Americas, Inc. will be eligible for return. Obsolete, blemished, and special purchased products will not be accepted. Shipping, Labeling, Order-Entry and New Defective Errors Contact your Sales representative for a Return Merchandise Authorization number when such errors occur. This number must be clearly written on the tire with a tire marking crayon. Returns of merchandise under this section will be accepted with no handling or freight charges if returned within 30 days of purchase. If returned merchandise is deemed not to meet one of the above conditions, the Dealer will be charged back the freight and restocking fee. All Other Returns - Products returned for any other reason must be current, clean, first class product in saleable condition. If the product was purchased less than 120 days prior to return, the Dealer will be assessed a 10% restocking fee. For product purchased more than 120 days prior to return, ATA will not accept returns without written authorization of the Regional Manager. 1) RETURNS OF PRODUCT PURCHASED MORE THAN 120 DAYS AGO WILL NOT BE ACCEPTED WITHOUT THE WRITTEN AUTHORIZATION OF THE REGIONAL MANAGER. 2) PRIOR TO RETURNING THE PRODUCT THE DEALER MUST GET A RETURN MERCHANDISE AUTHORIZATION (RMA) NUMBER FROM THEIR SALES REPRESENTATIVE. THIS RMA NUMBER MUST BE WRITTEN ON THE TIRE WITH A TIRE MARKING CRAYON. 3) THE CUSTOMER IS REQUIRED TO PREPAY THE TRANSPORTATION CHARGES ON THE RETURN. PRODUCT RETURNED UNDER THIS SECTION WILL NOT BE ACCEPTED AT ATA S DISTRIBUTION CENTERS UNLESS IT IS RETURNED FREIGHT PREPAID. 4) IF RETURNED PRODUCT IS NOT IN CLEAN, FIRST CLASS, SALEABLE CONDITION ATA WILL DEDUCT AN ADDITIONAL 10% TO CLEAN THE TIRES BEFORE PUTTING THEM BACK IN STOCK. Important Note: ATA s Distribution Centers are instructed not to accept ANY returned tires or wheels without a return merchandise authorization number (RMA). The purpose of this policy is to ensure that returned tires are properly credited to the correct account in a timely fashion. DAMAGED MERCHANDISE AND SHORT SHIPMENTS ATA is not responsible for shortages or damage to shipments while in transit. Each incoming shipment should be checked thoroughly by the Dealer prior to accepting the merchandise from the Freight Company. If there is a shortage and/or damage on a shipment the dealer must do the following: Shortages Shortages must be noted on the bill of lading before signing and the Dealer must have the Carrier s driver co-sign the freight bill. The Dealer should contact their ATA sales representative to notify them of the problem and a copy of the bill of lading should be forwarded to ATA. 5
Damaged Merchandise For Shipments received by LTL, damaged merchandise should be refused at the time of delivery. The Dealer should contact their ATA sales representative to notify them of the problem. ATA will initiate a claim with the carrier. For Truckload shipments, the Dealer is advised to receive the shipment and immediately report damages to ATA. ATA will work with the Dealer in order to investigate the claim and resolve in an expeditious manner. For Direct Container Shipments, the Dealer is advised to receive the shipment and immediately report damages to ATA. ATA will initiate a factory claim. 6
WARRANTY ADJUSTMENTS ATA Tire warrants its tires against defects in workmanship and materials. (Please refer to the Alliance Limited Warranty Policy attached as Exhibit A). MISCELLANEOUS Alliance Tire Americas reserves the right to modify or terminate any part or all of the program or the foregoing Discounts, Terms, Allowances, Understandings and Conditions at any time and without prior notice to the Dealer, however, no such changes shall be retroactive. All dollar figures are stated in U.S. Dollars. ALLIANCE TIRE CONTACT INFORMATION Corporate Headquarters & Northeast Sales Office 201 Edgewater Drive, Suite 285, Wakefield, MA 01880 Tel: (781) 321-3910 Toll Free: (800) 343-3276 Fax: (781) 322-2147 USA Southeast Sales Office 800 Watterson Curve, Trussville, AL 35222 Tel: (205) 322-7001 Toll Free: (800) 777-9926 USA West/Southwest Sales Office & Distribution Center 9700 Wingfoot Road, Houston, TX 77041 Tel: (713) 227-2800 Toll Free: (800) 999-5775 Memphis Distribution Center 5838 Advantage Cove, Memphis, TN 38141 Tel: (901) 795-4232 Toll Free: (866) 848-8473 7
Limited Warranty Policy Appendix A Every agricultural, off-the-road and material handling tire distributed by Alliance Tire Americas, Inc. (ATA) and bearing the Galaxy, Primex, or Constellation name is warranted against defects in workmanship and material for the original usable tread depth (original tread depth less 2/32), limited to 60 months from the date of manufacture. If an examination by ATA shows that any such tire became unserviceable as a result of a workmanship or material related condition, it will, at the option of ATA, either be repaired at no charge or replaced charging the customer for tread wear, prorated by multiplying the original purchase price of the tire by the percentage of usable tread depth that has been worn from the tire. Costs of mounting, filling, and any other service charges or applicable taxes are payable by the customer. Galaxy branded tires will be replaced at no charge (excluding mounting and service charges) if a defect in the workmanship or materials is found within the first 25% of tread wear. Primex or Constellation branded tires will be replaced at no charge (excluding mounting and service charges) if a defect in the workmanship or materials is found within the first 2/32nds or 10% of tread wear whichever comes first. For warranty information, the owner or dealer may contact: Aftermarket Warranty Original Equipment Warranty Rich Sergi Lois Guido (800) 343-3276 x239 (800) 343-3276 x230 Fax (781) 480-1059 Fax (781) 321-1688 rsergi@atgtire.com or claims@atgtire.com lguido@atgtire.com What is NOT covered: Tires purchased as seconds, mark downs, or used; Tire exhibiting field or road hazards including cuts, punctures, impact breaks and stubble damage; Failures due to improper mounting procedures improper repairs, machine damage or spinning; Failures due to overloading or use at speeds in excess of the maximum recommended speed; Tires that have been run under-inflated or over-inflated; Tires mounted on rims which are not recommended by the Tire & Rim Association; Tires that have been patched; Uneven or rapid wear due to mechanical irregularity of the vehicle; Damage resulting from fire, accidents, chemical corrosion or vandalism; Weather cracking or ozone damage on tires more than four years old; Tires that have been used in applications other than the application for which the tire was designed; Incidental or consequential damages. Federal Excise Tax (FET) paid on a DOT marked tire, even if the tire is determined to be adjustable under this warranty. ATA shall not be liable for any other warranty or representation of any kind, expressed or implied, without ATA s prior written agreement. 8
Warranty Submission Information Alliance Tire Americas, Inc. s (ATA) warranty submission procedure has been established with the goal of having credits issued within 7-10 business days* of receiving the claim on tires deemed eligible under ATA s Limited Warranty Policy. A sample of the Alliance Limited Warranty Claim Form is attached for your information. This form supersedes all prior Alliance claim forms. Please use this form for all warranty tire claims. The new procedure is: Complete the claim form in entirety. Use additional tab for each claim tire. 1) Take the following required photos (.jpeg format 15mb or smaller using a digital camera will save the photos in this format) for each tire(s) claimed: a. Picture of the whole tire, b. Picture of the tread, c. Picture of the serial number (and DOT if applicable), d. Pictures of the areas of the condition including one of the inner liner at the damage area. (Please note that a minimum of two (2) photos of the defect are required.) 2) Submit the completed claim form, photos, and invoice via email to claims@atgtire.com for processing. If email is not possible, please fax completed claim form, photos, and invoice to 781-480-1059. 3) Acceptable invoices for credit determination per our warranty are the following: a. Customer billing invoice or, b. Alliance invoice. Claim(s) submitted without appropriate invoice(s) will result in tire credit determination based on manufactured date (serial number) rather than date of purchase. 4) Claims received in good order with the photos and invoice will be processed within 7-10 business days. Alliance will send either a Credit Note or Letter of Decline acknowledging disposition**. 5) Claims not received in good order will be delayed, and we will notify you of the deficiency in documentation via email to resolve. 6) For questions regarding claims or claims processing, please contact: Rich Sergi, Warranty Customer Service Manager @ 1-800-343-3276 Ext. 239. *Credits on tires that are requested to be sent back to Quality Assurance Center by Alliance and approved for coverage will be longer than 7-10 business days. Customer is responsible for return freight and scrap charges on any returned tire that is declined for warranty consideration, unless Alliance requested the tire back for analysis purposes. **Compensation according to Alliance s Limited Warranty shall be paid only in accordance with Alliance s Limited Warranty procedure and shall not under any circumstances exceed the tire purchase price unless expressly authorized by Alliance Tire Americas, Inc. 9
A sample of the Alliance Limited Warranty Claim Form is shown below. To obtain an electronic version or faxed copy of this Claim Form, please contact Rich Sergi rsergi@atgtire.com (800) 343-3276 x239 Fax (781) 480-1059, or your Alliance Sales Representative. SA M PL 10