ASSOCIATE DEALER PROGRAM ENROLLMENT FORM
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1 ASSOCIATE DEALER PROGRAM ENROLLMENT FORM Please print clearly. All fields are required for enrollment into the Hankook ONE Associate Dealer Program. If there are multiple locations, an enrollment form must be submitted for each location. Return this form to your Hankook Tire Territory Manager with a minimum opening purchase order of 24 units. Associate Dealer Information ONE Account Number Dealer Name Dealer Address City, State, Zip Code Federal Tax ID Number Phone Number Contact Person s Name Address Dealer URL (if applicable) Unit Sales Objectives Primary Distributor Information Hankook Account Number Distributor Name Distributor Address City, State, Zip Code Phone Number Fax Number Distributor Salesperson Address Program Agreement QTR 1st QTR 2nd QTR 3rd QTR 4th QTR Fax Number Unit Sales Objectives As a participating Hankook Associate Dealer, I agree to all terms and conditions of the Hankook ONE Associate Dealer Program including Program Rules and Guidelines. I understand enrollment into the Program can be terminated after each calendar year if I am unable to maintain and adhere to the terms and conditions of the Hankook ONE Associate Dealer Program. If established conditions which are set by Hankook are met annually, I understand this agreement will be automatically renewed for one calendar year. I understand my location will be responsible for keeping a record of all units sold (Invoices),and description of products for my location(s). I agree to the following annual sales targets/objectives and must inventory a minimum of two premium lines. I understand I may be terminated from the program for failure to meet annual requirements. I understand Hankook Tire America Corp. has the right to amend or modify the terms and/or Program guidelines at its discretion at any time with or without notice. I understand my distributor location will be responsible for reporting all units, description of products, and purchased prices for the Associate Dealer location(s) named in this agreement by announced deadlines. Associate Dealer Authorized (Signature) Distributor Principal/Manager (Signature) Print Name Distributor Principal/Manager (Print Name) Hankook Tire America Corp. USE ONLY: Hankook Account Manager HQ Received Enrollment Enrolled QTR Enrollment YR Associate Dealer Account Number 1220
2 AUTHORIZED ASSOCIATE DEALER PROGRAM AGREEMENT The Authorized Associate Dealer Program Agreement (the Agreement ) is made as of th day of, 20, by and among Hankook Tire America Corp. with its office located at 333 Commerce St. 5F Nashville, TN ( Hankook ), with its office located at, (the Distributor ) and, with its office located at. (the Associate Dealer ) W I T N E S S E T H: WHEREAS, Hankook is in the business of marketing Hankook and its associate brand tires (the Products ) throughout the United States through a network of authorized distributors who in turn resell the Products to associate dealers who sell to end users in retail; WHEREAS, Hankook adopted an Authorized Associate Dealer Program (the Program ) through which it provides certain incentives to qualified associate dealers for the purpose of promoting sale of the Products and furthering brand image of its Products; WHEREAS, the Distributor and the Associate Dealer desire to enroll in the Program and Hankook desires to appoint the Associate Dealer as an authorized Associate Dealer of the Program; NOW, THEREFORE, in consideration of mutual covenants herein contained, and for other valuable consideration the receipt and legal sufficiency of which is hereby acknowledged, parties agree as follows: 1. Appointment (a) Hankook hereby appoints and the Associate Dealer accepts the appointment as a non-exclusive authorized Associate Dealer of the Products subject to terms and conditions set forth in the Program, including but not limited to the Program Rules and Guidelines for Associate Dealers and for Distributors, Program Enrollment form for the Associate Dealer, Secondary Distributor Request form, Primary Distributor Transfer request form, and Enrollment process. (b) Associate Dealer agrees to do its best to promote sale of the Products and further image of Hankook and its associate brand of the Products and Hankook agrees to do its commercially reasonable best to support and assist Associate Dealer in the promotion, sale and servicing of the Products. (c) Hankook may alter, modify or change terms and conditions of the Program at any time, at its sole and absolute discretion, with or without notice. 2. Term & Termination This agreement shall take effect upon execution hereof by all parties and will remain in effect until it is terminated by any party by a written notice to the others thirty (30) days before the effective date of termination. Termination may be with or without cause. 3. Advertising Associate Dealer shall maintain throughout the term of this Agreement all its sales locations by prominently displaying Hankook advertising signs or other point-of-sale materials supplied by Hankook. 4. Product Warranties Associate Dealer agrees to display Hankook s limited product warranty in its place of business and process and settle any of the Products presented for warranty adjustment in accordance with warranty procedures established by Hankook. 5. Independent Contractor Associate Dealer is an independent contractor and not a franchisee of Hankook or Distributor. Associate Dealer acknowledges that it shall not hold itself out as representative or agent of Hankook and will not do anything that may legally bind Hankook.
3 Eligibility and Requirements of the Hankook ONE Associate Dealer The Associate Dealer enrolling in the Hankook ONE Associate Dealer Program is a retail customer of a designated Hankook Distributor who agrees to the following conditions. A retail customer location is defined as any location that sells to a retail consumer and has the equipment necessary to mount and balance the tires at the location. (Therefore, online sales cannot be counted on the ONE Program.) 1. To participate in the Program, each retail location must commit to purchase a minimum of 240 units of Hankook Passenger and/or Light Truck Products annually. The annual requirement may be adjusted depending on the official date of enrollment at the discretion and approval of Hankook Tire America Corp. ONE Program Yearly Purchase Requirements for Associate Dealers is as follows: Enrolled QTR 1st QTR 2nd QTR 3rd QTR 4th QTR Enrolled Month January February March April May June July August September October November December 2017 Minimum Unit Requirements Per Retail Location (Prorated Units) The Associate Dealer may be subject to termination from the program for failure to meet the Minimum annual requirement. If the Associate Dealer is tracking based on the provided chart they will be renewed for the subsequent year 3. The signed Associate Dealer Agreement must be submitted to Hankook Tire America HQ along with a minimum opening order of 24 tires per retail location. 4. Associate Dealer must inventory a minimum of two premium lines Hankook Tires listed in this agreement. 5. Any Hankook Dealer that purchases tires directly from Hankook is not eligible to participate as an Associate Dealer. All OE Manufacturers affiliated Car Dealerships are excluded from the ONE Program. 6. Hankook does not allow direct or drop shipments to an Associate Dealer.
4 Enrollment Process To enroll as an Authorized Associate Dealer into the Hankook ONE Program and receive quarterly rewards and benefits, the Associate Dealers must first be approved by Hankook Tire America Corp. 1. Complete the attached Associate Dealer enrollment form and forward it to your Designated Primary Hankook Distributor. 2. If you are choosing to select a Designated Secondary Hankook Distributor, you must fill out a Secondary Hankook Distributor Request Form and forward it to your Designated Secondary Distributor. 90% of your quarterly purchases must be made with your Primary Distributor. No more than 10% of your purchases from your Secondary Hankook Distributor may count toward your quarterly program requirements. Failure to comply to this rule may mean the Associate Dealer will not be paid on these units. 3. Place an opening order of 24 units with your Primary Hankook Distributor along with your signed enrollment application. 4. Your Primary Hankook Distributor will forward the enrollment form and proof of your opening order to the Hankook Tire Territory Manager for approval. 5. Once your enrollment has been approved and activated, you will receive notification of your official acceptance and enrollment date from Hankook Tire America Corp. 6. You will also receive a Welcome Startup Kit which includes marketing materials to support your business.
5 Program Rules and Guidelines All Associate Dealers participating in the Hankook ONE Associate Dealer Program must agree to the following conditions: 1. Official enrollment date is defined as the date approved by Hankook HQ. Associate Dealer enrollments which are dated and signed in a specific month must be submitted no later than 10 days into the subsequent month in order to be enrolled into the dated and signed month. 2. For new Associate Dealers, the annual ONE Associate Dealer purchase requirements shall be prorated based on the Quarter of enrollment. 3. The unit totals must be reported with the format and required sales information established by Hankook. The Associate Dealer must make Hankook or reporting distributor aware of any discrepancies no later than the quarter immediately following the reported discrepancy. All discrepancies will be resolved by Hankook at its sole discretion. 4. The ONE Associate Dealer Program applies to the purchase of Hankook Passenger and Light truck tires only. 5. Associate Dealers will earn cash rewards on all qualifying tire purchases from their Designated Distributor(s) on a quarterly basis. Reported purchase units must only be for retail consumer sales and not for wholesale sales. Reward checks made payable to the retail location will be mailed by Hankook to Associate Dealers that attain their minimum quarterly requirements. 6. It is forbidden to use any financial incentives, growth Incentives, Co-op, advertising/promotion monies, or spiffs, to lower the retail price of Hankook products. 7. Quarterly cash rewards will be calculated for all Associate Dealers who meet their minimum quarterly sales targets/objectives according to the incentive levels established by Hankook in Table A. 8. The Associate Dealer must remain under the Primary Distributor for one year from the effective start date of enrollment. If the Associate Dealer s request to change the Primary Distributor is granted, The Associate Dealer must remain under the New Primary Distributor for two years before any additional requests are honored. The new Primary Distributor must be active in the Hankook ONE Associate Dealer Program for a minimum of 2 quarters and be approved by Hankook before a transfer is granted. Transfers require a minimum 2 week notice to Hankook and will become effective once the date of the change is approved. A Distributor Transfer Request Form must be submitted to Hankook for approval. Contact your Hankook ONE Program to request a transfer form. Your Primary Hankook Distributor will be notified of the transfer request. 9. The Associate Dealer understands and agrees to abide by all the terms and conditions of the Hankook ONE Associate Dealer Program. 10. The Associate Dealer will use its best efforts to advertise, promote, merchandise, sell and service Hankook tires. 11. The Associate Dealer has the right to terminate this Agreement at any time upon 30 days prior written notice to Hankook Primary Distributor and Secondary Distributor. 12. The Associate Dealer agrees to administer and service all Hankook programs, including national accounts, government sales, and warranty and adjustment policies for Hankook replacement and OE tires. 13. Hankook reserves the right to audit Associate Dealer purchases reported by the Distributor at either the Distributor or the Associate Dealer. Both the Distributor and Associate Dealer must maintain all invoices reported by the Primary Distributor to verify sales performance. If invoices cannot be supplied Hankook reserves the right to withhold future payments and / or terminate the Associate Dealer.
6 Program Rules and Guidelines 14. The Associate Dealer agrees to identify each retail location with Hankook brand identification and any POS materials provided by Hankook related to the program. 15. At the request of Hankook, the Associate Dealer will participate in online training and certification programs including surveys related to the program. 16. The Associate Dealer agrees to only sell tires from the location signing this Agreement. Sales of Hankook products through the Internet are not eligible for the Hankook ONE Associate Dealer Program. 17. The Associate Dealer agrees to represent Hankook as good stewards of the brand according to established corporate guidelines in usage of its trademark and representation of products. 18. Hankook retains sole right and ownership of its trademark, Hankook. Any and other trademarks of Hankook and its Products may not be used to promote or advertise for purposes other than the sale and use of Hankook Products. Upon termination of this Agreement, Hankook retains the right to revoke Associate Dealer from using or displaying all Hankook trademarks. 19. Hankook will not be liable to either Distributor or Associate Dealer, and shall not be made a party to any dispute for breach of contract or damage claims arising from their dealings with one another, caused by any act or omission by either Distributor or Associate Dealer. 20. Hankook has the right to designate other locations as Authorized Associate Dealers without regard to the geographical relation between sales locations. Hankook reserves the right to deny enrollment based on the geographic location of the Associate dealer requesting enrollment. 21. The Hankook ONE Program is available to US tire dealers only. 22. The Associate Dealer shall not disclose the terms and conditions of the Hankook ONE Program to any third party. 23. The terms of this agreement shall be governed by the laws of the State of Tennessee without regard to its choice of law rules and parties agree to submit to jurisdiction of Federal or State courts located in the State of Tennessee.
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