Dear Registered Haulers and Processors,

On May 5th 2014 the new OTS Stakeholder Agreements took effect. Among the revised provisions in the Agreements was section 2.3 dealing with registered Hauler and Processor relationships with Subcontractors. Section 2.3 of the Agreements states that a Hauler or Processor:

…may not engage as a Subcontractor any person having any unresolved default(s) of which Hauler/Processor is aware under any agreement with OTS; if Hauler/Processor does engage such a person as a Subcontractor, the Hauler/Processor shall become jointly and severally liable with such person for all amounts owed to OTS with respect to the default(s). For greater clarity, in addition to the actual knowledge of Hauler/Processor from time to time, Hauler/Processor shall be deemed to have awareness of any unresolved default included in any list published by OTS from time to time of persons in default of obligations to OTS.

Additionally under Article 7 in both the Hauler and Processor Agreements, it states:

Events of Default. The occurrence of any of the following while this Agreement is in effect shall constitute an “Act of Default” by the Hauler under this Agreement:

• If Hauler/Processor engages a Subcontractor who has an unresolved default contrary to Section

Consequences of Default. Immediately following any Act of Default, OTS may, in its sole and absolute discretion, do any, some or all of the following by written notice to the Hauler/Processor:

• suspend payment of all incentives and other amounts hereunder, with immediate effect, until the Act of Default is resolved to OTS’s satisfaction;
• require Hauler/Processor to pay any Repayment Amount arising in connection with an Act of Default;
• terminate this Agreement, with immediate effect;
• include the Hauler/Processor on a published list of persons having unresolved defaults under agreements with OTS, until the Act of Default is resolved to OTS’s satisfaction; or
• exclude Hauler/Processor from future participation in the Used Tires Program in any capacity, on a temporary or permanent basis.

This notice shall service to advise you that OTS has posted a list of stakeholders with Unresolved Defaults under an Agreement with OTS on the OTS website. This list can be viewed on the Find a Registered Participant page of the website.

Should any registered Hauler/Processor have as a subcontractor an organization identified on this list, OTS is providing you 30 days to make the necessary arrangements to comply with the conditions of your Agreements relating to Subcontractors. Any registered Hauler/Processor employing one of the listed organizations after July 5th, 2014 may be subject to the Consequences of Default listed in the Hauler/Processor Agreement.

Should you have any questions regarding the listed organizations, or the Terms of the Agreement please do not hesitate to contact OTS at info@rethinktires.ca.