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First Addendum To Comprehensive Supply Agreement

Supply Agreement

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 This Supply Agreement involves

CORE MOLDING TECHNOLOGIES INC | Navistar, Inc

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Title: FIRST ADDENDUM TO COMPREHENSIVE SUPPLY AGREEMENT
Date: 4/7/2010
Industry: Fabricated Plastic and Rubber     Sector: Basic Materials

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Exhibit 10(a)(1)

[*] TEXT OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
Confidential Treatment Requested by Core Molding Technologies, Inc.
Under 17 C.F.R. Sections 200.80(B)(4), 200.83 and 240.24b-2

FIRST ADDENDUM TO COMPREHENSIVE SUPPLY AGREEMENT

THIS FIRST ADDENDUM is entered into this 28th day of January, 2010 by and between Navistar, Inc., a Delaware corporation (“Buyer”), and CORE MOLDING TECHNOLOGIES, INC./CORE COMPOSITES CORPORATION , a Delaware corporation (“Seller”). Capitalized terms used herein but not defined have the meanings set forth in the Agreement.

WHEREAS, the parties hereto are parties to that certain Comprehensive Supply Agreement dated June 23, 2008 (the “Supply Agreement”); and

WHEREAS, Buyer and Seller wish to add provisions to the Supply Agreement as a result of Buyer’s relocation of certain production to Buyer’s Escobedo Assembly Plant, which prompted Buyer to ask Seller to shift production of certain of Seller’s Products to Seller’s Matamoros, Mexico production facility.

NOW, THEREFORE, in consideration of the promises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

 

1.

 

Seller will install, at its expense (approximately $4,000,000), additional compression molding presses at its plant in Matamoros, Mexico, in numbers and configurations needed to ensure adequate capacity to produce the following Products under historically-typical demand conditions:

 

a.

 

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* Confidential Treatment Requested by Core Molding Technologies, Inc

 

 


 

Buyer and Seller will work jointly to determine the appropriate size of the inventory banks required to support the Product moves considering the production needs of Buyer and the timing requirements to move the equipment. Buyer will ultimately be responsible for determining the inventory bank quantities and will assume any risk of actual demand fluctuations in relation to the bank size. Seller will be responsible for meeting the timing requirements of the equipment move.

 

3.

 

Seller and Buyer will develop a final move timeline once the inventory bank sizes are determined, as the size of the bank will impact timing. It is currently estimated that production start-up for the [*] will start in Mexico in May 2010 and production of the [*] will begin in June 2010.

 

4.

 

Seller will initiate move of production lines to Mexico once this First Addendum is executed and the inventory bank sizes are determined.

 

 

5.

 

Buyer will be responsibl


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