EXHIBIT 10(N)
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SUPPLY AGREEMENT
BY AND BETWEEN
REVLON CONSUMER PRODUCTS CORPORATION
AND
THE COSMETIC CENTER, INC.
DATED AS OF [FEBRUARY ], 1997
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SUPPLY AGREEMENT
AGREEMENT (this "Agreement") dated as of [February ], 1997 between Revlon
Consumer Products Corporation, a Delaware corporation ("Revlon"), and The
Cosmetic Center, Inc., a Delaware corporation ("Buyer").
WITNESSETH:
WHEREAS, prior to the date hereof, Revlon supplied to its wholly owned
subsidiary, Prestige Fragrance & Cosmetics Inc., a Delaware corporation ("PFC"),
certain cosmetics, fragrances, skin care and personal care products;
WHEREAS, pursuant to that certain Merger Agreement dated as of November ,
1996 (the "Purchase Agreement"), by and among Revlon, PFC and Buyer,
contemporaneously with the execution and delivery of this Agreement, PFC was
merged with and into Buyer, with Buyer being the survivor of such Merger;
WHEREAS, in connection with the foregoing, Buyer desires to purchase from
Revlon, and Revlon is willing to sell, or cause to be sold, to Buyer for resale
at Buyer's Cosmetic Center retail stores ("Cosmetic Center Stores") and PFC
retail stores ("PFC Stores") certain cosmetics, fragrances, skin care and
personal care products as provided for in this Agreement, for the consideration
and upon and subject to the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the foregoing and the representations,
warranties, covenants and agreements herein contained, the parties hereto agree
as follows:
ARTICLE 1.
SALE OF PRODUCTS
SECTION 1.01 SALE OF PRODUCTS. Subject to the terms and conditions of this
Agreement, for a period of four (4) years from the date hereof (the "Supply
Term"), Revlon will sell, or will cause to be sold, to Buyer its requirements of
(a) cosmetics, fragrances, skin care and personal care products manufactured and
sold by Revlon ("Revlon Products") that are first quality and on Revlon's then
current order form ("First Quality Products"), (b) Revlon Products that have
been returned to Revlon and which are coded in Revlon's inventory system as
"211" merchandise or have been discontinued or are no longer on Revlon's then
current order form and which are coded in Revlon's inventory system as "261"
merchandise (collectively, "Returned/Discontinued Products") and (c) First
Quality Products that are in excess of Revlon's needs ("Excess Products").
Notwithstanding anything herein to the contrary, Revlon's obligation to
supply Revlon Products pursuant to this Agreement shall be subject in its
entirety to the availability of such Revlon Products and, if and to the extent
that there are limited supplies of Revlon Products, Revlon shall be entitled to
allocate such limited supplies of any such Revlon Products among its customers
(including any subsidiaries or affiliates of Revlon) in its sole and absolute
discretion. Revlon shall have no obligation hereunder to manufacture any Revlon
Products in order to fulfill any orders for Revlon Products submitted by Buyer.
SECTION 1.02 SELLING PRICE OF REVLON PRODUCTS. During the Supply Term, the
purchase price (the "Prices") for the Revlon Products shall be as follows: (a)
the purchase price for First Quality Products shall be Revlon's normal trade
prices; (b) the purchase price for Returned/Discontinued Products shall be
Revlon's fully allocated cost of goods plus 8.1%; and (c) the purchase price for
Excess Products shall be at a price mutually acceptable to Revlon and Buyer.
SECTION 1.03 SHIPMENT OF REVLON PRODUCTS; BUYER'S TITLE. Revlon shall ship
or cause to be shipped any Revlon Products purchased by Buyer pursuant to this
Agreement FOB Revlon's manufacturing or warehouse facilities (for purposes of
price, payment and risk of loss). Buyer shall take title to Revlon Products
purchased by Buyer pursuant to this Agreement upon shipment as provided in this
Section 1.03, F.O.B. Revlon's manufacturing or warehouse facilities.
SECTION 1.04 REJECTS AND RETURNS; PRODUCT WARRANTIES.
(a) Revlon represents and warrants that the First Quality Products and
Excess Products (i) were manufactured in accordance with all applicable laws,
statutes, ordinances and regulations in effect from time to time, including,
without limitation, any such laws relating to protection of the environment and
(ii) will conform to the specifications therefor and to all applicable
governmental rules and regulations. Except with respect to latent or hidden
defects, the representations and warranties of Revlon contained in this Section
1.04(a) shall not survive any inspection, delivery, acceptance or payment by
Buyer for such Revlon Products. REVLON MAKES NO WARRANTIES OF MERCHANTABILITY OR
OF FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER EXPRESS OR IMPLIED WARRANTY,
EXCEPT AS SET FORTH ABOVE. WITH RESPECT TO ANY RETURNED/DISCONTINUED PRODUCTS,
BUYER TAKES SUCH PRODUCTS "AS IS" AND REVLON MAKES NO WARRANTIES OF
MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER EXPRESS OR
IMPLIED WARRANTY.
(b) No Revlon Product may be returned to Revlon (or its designee) unless
Revlon has authorized the return in writing, provided, however, that Revlon will
accept returns of First Quality Products and Excess Products that were defective
at the time of shipment if Buyer gives Revlon notice of such defect within ten
(10) days following the date of delivery to Buyer with respect to any defect
apparent on the surface, and within ninety (90) days after the date of delivery
with respect to any latent or hidden defect. Revlon shall not in any event be
responsible for any defect, damage or deficiency that arises following shipment
FOB Revlon's facilities.
SECTION 1.05 RESALE OF REVLON PRODUCTS. Buyer agrees that any Revlon
Products purchased by Buyer pursuant to this Agreement will be sold by Buyer
only in retail stores and that any Returned/Discontinued Products will be sold
only in PFC Stores. Without limiting the generality of the foregoing, Buyer
agrees that it shall not sell any Returned/Discontinued Products in Cosmetic
Center Stores and will not sell any Revlon Products through wholesale channels
of distribution or to any third parties (other than retail customers of its
retail stores). If requested by Revlon, Buyer agrees to provide to Revlon and
its representatives access to its facilities, management and books and records
at reasonable times upon advance notice and in a manner which is not disruptive
to Buyer's operations in order to permit Revlon to monitor compliance with this
Section 1.05.
ARTICLE 2
PROVISIONS OF GENERAL APPLICATION
SECTION 2.01 PAYMENT OF PRICE. Buyer shall pay the Price against Revlon's
detailed invoice and supporting documentation including item, quantity and
shipment dates net 30 days after shipment.
SECTION 2.02 EARLY TERMINATION. (a) Notwithstanding anything herein to the
contrary, if there is a change of control (as defined below) of Buyer at any
time after of the date hereof but prior to the end of the Supply Term, Revlon
may terminate this Agreement upon not less than one year' prior written notice
to Buyer; provided, however, that in no event may Revlon terminate this
Agreement prior to the second anniversary of the date hereof. A "change in
control" of Buyer for purposes of this Agreement shall be deemed to have taken
place if (A) Revlon together with its affiliates no longer has the power to
vote, directly or indirectly, whether through record or beneficial ownership, a
voting trust arrangement, or other contractual arrangement, a majority of the
voting power of outstanding shares of Buyer or (B) all or substantially all of
Buyer's assets are sold to any person other than an affiliate. For purposes of
this Section 2.02, a "person" includes an individual, corporation, partnership,
trust, association, joint venture, pool, syndicate, unincorporated organization,
joint-stock company, or similar organization or group acting in concert. A
person for these purposes shall be deemed to be a beneficial owner as that term
is used in Rule 13d-3 under the Securities Exchange Act of 1934, as amended.
(c) Notwithstanding anything to the contrary, Revlon may terminate this
Agreement (A) upon 30 days' prior written notice if Buyer is in default of the
provisions of Section 1.05, (B) immediately if Buyer is liquidated or dissolved
or adopts a plan of liquidation or (C) immediately if Buyer shall: (i) file a
voluntary petition in bankruptcy or file a voluntary petition or otherwise
commence any action or proceeding seeking reorganization, arrangement or
readjustment of its debts or for any other relief under the Federal Bankruptcy
Code, as amended, or under any other bankruptcy or insolvency act or law, state
or federal, now or hereafter existing, or consent to, approve of, or acquiesce
in, any such petition, action or proceeding; (ii) apply for or acquiesce in the
appointment of a receiver, assignee, liquidator, sequestrator, custodian,
trustee or similar officer for it or for all or any part of its Property; (iii)
make an assignment for the benefit of creditors; or (iv) be unable generally to
pay its debts as they become due; or (D) immediately if an involuntary petition
shall be filed or an action or proceeding otherwise commenced seeking
reorganization, arrangement or readjustment of Buyer's debts or for any other
relief under the Federal Bankruptcy Code, as amended, or under any other
bankruptcy or insolvency act or law, state or federal, now or hereafter existing
and such petition, action or proceeding shall not be dismissed within 60 days
from such filing or commencement.
SECTION 2.03 ASSIGNMENT; SUCCESSORS AND ASSIGNS. This Agreement and all of
the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Neither party may
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the written consent of the other party hereto, except
that Revlon may assign, delegate or otherwise transfer any or all of its rights
or obligations under this Agreement to any of its affiliates or to any successor
to its business (by merger, consolidation, sale of stock or assets, or
otherwise); provided that no assignment shall release Revlon from its
obligations and liabilities under this Agreement.
SECTION 2.04 ENTIRE AGREEMENT; AMENDMENT. This Agreement constitutes the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements, understandings and negotiations, both
written and
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oral, between the parties with respect to the subject matter of this Agreement.
No representation, inducement, promise, understanding, condition or warranty not
set forth herein has been made or relied upon by either party hereto. No
agreement or understanding modifying or amending this Agreement shall be binding
upon either party hereto unless in writing and signed by a duly authorized
officer thereof.
SECTION 2.05 THIRD PARTIES. Except as otherwise provided herein, this
Agreement is not intended to and shall not confer upon any other Person other
than the parties hereto and their affiliates, any rights or remedies with
respect to the subject matter hereof.
SECTION 2.06 NOTICES. Any notice or other communication required or
permitted hereunder shall be made in writing and shall be delivered personally,
sent by certified or registered mail (postage prepaid), or sent by facsimile
transmission, and shall be deemed given when so delivered personally, sent by
facsimile transmission, or, if mailed, four days after the date of deposit in
the United States mails. All communications hereunder shall be delivered to the
respective parties at the following addresses (or to such other person or at
such other address for a party as shall be specified by like notice, provided
that notices of a change of address shall be effective only upon receipt
thereof):
(c) If to Revlon, to:
Revlon Consumer Products Corporation
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Attention: Vice President and Corporate Secretary
and by telecopy to: (▇▇▇) ▇▇▇-▇▇▇▇
(d) If to Buyer, to:
The Cosmetic Center, Inc.
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Attention: President
and by telecopy to:
SECTION 2.07 GOVERNING LAW. The parties hereto agree that all of the
provisions of this Agreement and any questions concerning its interpretation and
enforcement shall be governed by the laws of the State of New York applicable to
agreements executed in New York to be wholly performed in New York by residents
of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and the year first above written.
REVLON CONSUMER PRODUCTS CORPORATION
By: ___________________________________
Name:
Title:
THE COSMETIC CENTER, INC.
By: ___________________________________
Name:
Title:
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