CREDIT APPLICATION TERMS & CONDITIONS

Revised on October 9th, 2025.

IN CONSIDERATION OF TRAIL TIRE SUPPLY PERMITTING THE PURCHASES OF GOODS AND SERVICES ON A CREDIT BASIS, THE CUSTOMER HEREBY COVENANTS AND AGREES TO THE TERMS AND CONDITIONS SET OUT HEREIN

1. Definitions

1.1. “Account Holder” means all persons or entities identified as an applicant or account holder in the Credit Application, including the business entity and any individuals, principals, or authorized signing authorities.
1.2. “Agreement” means the Credit Application together with Trail Tire Supply’s Terms and Conditions, as amended from time to time.
1.3. “Credit Application” means Trail Tire Supply’s credit application completed and signed by the Customer in connection with this Agreement.
1.4. “Customer” means all Account Holders of a single credit account with Trail Tire Supply.
1.5. “Credit Limit” means the maximum amount of credit Trail Tire Supply extends to the Customer, as amended from time to time on notice to the Customer.
1.6. “Goods” means products supplied by Trail Tire Supply to the Customer on credit pursuant to this Agreement.
1.7. “Services” means any installation, maintenance, or related services provided by Trail Tire Supply to the Customer on credit pursuant to this Agreement.
1.8. “Special-Order Goods” means any Goods that Trail Tire Supply procures, manufactures, modifies, or specially stocks at the Customer’s request, that are not readily saleable to other customers, or that Trail Tire Supply designates as non-cancellable or non-returnable.
1.9. “Statement” means a periodic billing statement or invoice prepared by Trail Tire Supply in respect of the Customer’s credit account, issued in accordance with this Agreement.
1.10. “Terms and Conditions” means the Terms and Conditions, as amended from time to time, set out herein, which are incorporated by reference into the Credit Application.

2. Credit Terms and Payment

2.1. The maximum amount of credit extended to the Customer shall be as set out in a written letter of approval issued by Trail Tire Supply specifying the Credit Limit. The Customer shall ensure that the total outstanding balance on the account does not exceed the Credit Limit at any time. Trail Tire Supply may refuse to supply goods or services if the Credit Limit is exceeded.
2.2. The Customer agrees to pay Statements within 30 days of the invoice date. Statements not paid within 30 days shall accrue interest at 2% per month (24% per annum), calculated and compounded monthly, until paid in full.
2.3. Payments must be made without deduction, set-off, or counterclaim.
2.4. Trail Tire Supply may establish, increase, reduce, suspend, or cancel a credit limit at its sole discretion at any time, and any such change will be communicated to the Customer in writing.
2.5. Unless otherwise agreed in writing, all payments received shall be applied in the following order: first, to accrued interest and finance charges; second, to collection costs, legal fees, and other charges; third, to outstanding principal amounts, beginning with the oldest invoices.
2.6. If the Customer provides a credit card for payment, the Customer authorizes Trail Tire Supply to retain the card information on file until all outstanding amounts owing on the Customer’s account are paid in full and after any applicable chargeback period has expired. Trail Tire Supply reserves the right to charge the card for any overdue amounts or balances exceeding the approved credit limit. The Customer agrees that such charges shall constitute valid and binding payments on the account.

3. Account Statements

3.1. Trail Tire Supply will prepare a periodic billing Statement for the Customer’s credit account. Statements are issued and sent with the Customers order(s) and subsequent Statements are provided to the Customer monthly, unless the account has no activity and no balance owing or reflects a credit balance.
3.2. The Customer is responsible for ensuring that it receives a Statement each month and must notify Trail Tire Supply promptly if a Statement is not received.
3.3. If a Statement is sent by mail and there is a postal disruption or other delivery failure, the Customer must contact Trail Tire Supply to obtain Statement information. The Customer must pay the amount shown on each Statement by the due date, whether or not the Statement is received.
3.4. The Customer shall review each Statement and notify Trail Tire Supply in writing of any dispute or error within 30 days of the Statement date. If the Customer does not object within that period, the Statement will be deemed accurate and binding.

4. Online Portal Access and Responsibility

4.1. The Customer acknowledges Trail Tire Supply may provide an online ordering portal or similar electronic platform (the “Portal”) to facilitate the purchase of goods and services. The Customer agrees that each Account Holder, and any other authorized representative the Customer designates in writing, shall be responsible for managing the Customer’s access to the Portal, including establishing and maintaining user permissions, passwords, and account access.
4.2. Trail Tire Supply shall not be liable for any unauthorized use of the Portal and the Customer shall be solely responsible for all orders placed, actions taken, or information submitted through the Portal by any person using the Customer’s account credentials, whether or not such person is authorized internally by the Customer or Trail Tire Supply.
4.3. The Customer agrees to promptly notify Trail Tire Supply in writing of any change in authorized users, or any suspected unauthorized access to the Portal.
5. Consent to Collection, Use, and Disclosure of Information
5.1. The Customer agrees, authorizes, and consents to Trail Tire Supply, collecting, using, and disclosing personal, business, and financial information for the purposes of assessing creditworthiness, exchanging information with credit reporting agencies, financial institutions, trade references, and other parties with whom the Customer has or may establish financial relations, and administering the credit account; obtaining updated financial statements, banking information, and trade references from the Customer upon request; and recording and exchanging information related to the Customer’s performance of this Agreement.

6. Security Interest and Transfer of Title

6.1. The Customer grants to Trail Tire Supply a security interest in all of the Customer’s present and after-acquired personal property, including all goods supplied by Trail Tire Supply, and all proceeds thereof, as security for payment and performance of all obligations to Trail Tire
Supply
from time to time, and Trail Tire Supply retains a continuing lien and security interest in all goods supplied, wherever located, until full payment is received.
6.2. Title to goods does not transfer until payment is received in full for said goods.
6.3. The Customer waives the rights to receive any financing statement or verification statement relating to any registration of the security interest.

7. Default, Termination & Remedies

7.1. An ‘Event of Default’ occurs if the Customer:
7.1.1. fails to pay any amount when due;
7.1.2. becomes insolvent, makes an assignment for the benefit of creditors, or is subject to bankruptcy/receivership;
7.1.3. breaches or defaults on any term of this Agreement;
7.1.4. breaches or defaults under any other agreement or obligation between the Customer (or its affiliates) and Trail Tire Supply (or its affiliates).
7.2. Upon an Event of Default, Trail Tire Supply may, without notice to the Customer, and without prejudice to any other rights and remedies:
7.2.1. terminate or suspend the amount of credit extended to the Customer;
7.2.2. declare all amounts owing by the Customer to Trail Tire Supply, whether or not yet due, immediately due and payable;
7.2.3. set-off or apply any amounts owed by Trail Tire Supply to the Customer (including rebates, credits, or other entitlements) against any indebtedness of the Customer to Trail Tire Supply;
7.2.4. consolidate all of the Customer’s accounts with Trail Tire Supply or its affiliates and treat them as one obligation;
7.2.5. suspend further deliveries of goods and services;
7.2.6. enter the Customer’s premises and repossess goods or enforce its rights as a secured creditor;
7.2.7. recover all losses, costs, expenses, and legal fees (including legal fees on a solicitor-and-own-client basis) incurred by Trail Tire Supply in the collection of amounts owing or the enforcement of this Credit Application and Agreement; or
7.2.8. Exercise any other rights or remedies available to Trail Tire Supply.

8. Returns and Cancellations

8.1. Prior authorization of Trail Tire Supply must be obtained before returning goods for credit, and Trail Tire Supply may grant or withhold such authorization in its sole discretion. If a return is accepted, confirmation will be provided to the Customer and must be clearly indicated on the Customer’s returns (prepaid shipments only). All returned goods must be in saleable condition, be in original containers and/or packaging, and will be subject to inspection and a restocking charge to be determined by an authorized Trail Tire Supply representative. Return freight is to be prepaid by the Customer.
8.2. Orders may not be cancelled, in whole or in part, except with Trail Tire Supply’s written consent and on terms that fully indemnify Trail Tire Supply for all costs, expenses, and losses incurred, including loss of profits.

9. Exclusions and Limitation of Liability

9.1. Trail Tire Supply makes no representation or warranty that Goods are fit for any particular purpose beyond the manufacturer’s warranty (if any). The only warranties applicable to Goods sold by Trail Tire Supply are those provided directly by the manufacturer of the goods (if any). The Customer assumes all risks of use.
9.2. Trail Tire Supply shall not be liable for any indirect, special, incidental, punitive, or consequential damages, including loss of profits, revenues, or goodwill, and in any event, Trail Tire Supply’s total liability shall not exceed the amount actually paid by the Customer for the specific Goods or services giving rise to the claim.
9.3. Trail Tire Supply shall have no liability for goods, parts, or services supplied by third parties, even if obtained through Trail Tire Supply.

10. General Provisions

10.1. Amendments – Trail Tire Supply may amend these terms at any time on notice to the Customer. Continued use of credit shall constitute acceptance of any amendments.
10.2. Assignment – Trail Tire Supply may assign or transfer its rights and obligations under this Agreement at any time to a third party. If Trail Tire Supply does so, it may disclose information about the Customer and their credit account to the assignee, provided the assignee agrees to maintain such information in confidence. The Customer may not assign this Agreement or any rights or obligations hereunder without Trail Tire Supply’s prior written consent.
10.3. Change of Control – The Customer acknowledges that this Credit Application and Agreement is specific to the Customer named herein and does not automatically transfer to any purchaser, successor, or new ownership of the Customer’s business. In the event of a sale, transfer, merger, or other change in ownership or control of the Customer, the Customer shall immediately notify Trail Tire Supply in writing prior to or upon completion of the transaction. Upon such notice, Trail Tire may, at its sole discretion, close the existing account and require the new owner or entity to complete a new Credit Application or enter into a separate credit agreement with Trail Tire Supply. The Customer remains fully responsible for all amounts owing and obligations incurred under this Agreement up to and including the date Trail Tire confirms in writing that the account has been closed.
10.4. Currency – All amounts owing to Trail Tire Supply under the Agreement shall be paid in lawful money of Canada (CAD), without deduction or set-off of any kind, and free and clear of any taxes, charges, or currency exchange costs.
10.5. Entire Agreement – The Agreement constitutes the entire agreement between the parties and supersedes all prior oral or written representations.
10.6. Electronic Communications – The Customer consents to receiving invoices, statements, notices, and other communications electronically. Electronic, email, or facsimile signatures shall be binding on the Customer.
10.7. Force Majeure – Trail Tire Supply shall not be liable for any delay or failure to perform its obligations if caused by circumstances beyond its reasonable control, including without limitation: strikes, lockouts, labour disputes, fire, flood, natural disasters, acts of God, war, terrorism, civil unrest, pandemics, governmental orders, supply chain disruptions, transportation delays, shortages of labour, materials, or utilities, or failure of suppliers. If a force majeure event occurs, Trail Tire Supply’s obligations shall be suspended for the duration of the delay. Trail Tire Supply may, at its option, cancel any affected order without liability by providing notice to the Customer.
10.8. Governing Law & Jurisdiction – This Agreement shall be governed by the laws of the Province of Alberta and the federal laws of Canada applicable therein. Trail Tire may enforce this Agreement and recover any amounts owing in any jurisdiction where the Customer or any signatory has assets, without restriction.
10.9. Joint and Several Liability – The Customer, acknowledges and agrees they shall be jointly and severally liable to Trail Tire Supply for all indebtedness, charges, and obligations incurred pursuant to the Agreement, whether arising from goods or services supplied to the business, to any one of the signatories, or otherwise. For clarity, this provision binds all Account Holders, whether they are a corporate entity or individual owners/principals, and is not a separate personal guarantee. Trail Tire Supply may enforce its rights against any one or more of the Account Holders, individually or collectively, without first exhausting remedies against the business or individual Account Holder.
10.10. Limitation Period Extension – Notwithstanding the Alberta Limitations Act, the parties agree that any action by Trail Tire Supply to recover amounts owing under this Agreement may be commenced within six (6) years from the later of: (a) the date of default; or (b) the date on which Trail Tire Supply knew or ought reasonably to have known of the default.
10.11. Notice – Any notice, demand, Statement, or other communication required or permitted to be given to the Customer under this Agreement may be sent to the mailing address, email address, or fax number provided in the Credit Application (or as subsequently updated by the Customer in writing). Notices may be delivered by hand delivery, personal service, courier, registered mail, email, facsimile, or any other method agreed to by Trail Tire Supply and the Customer in writing. Notice shall be deemed to have been received: (a) if delivered personally or by courier, on the date of delivery; (b) if sent by registered mail, on the 5th business day following mailing; (c) if sent by email or facsimile, on the date of transmission, provided no delivery failure notice is received; and (d) if delivered by any other agreed method, in accordance with the terms of such agreement.
10.12. Returned Payments / NSF Fees – A service charge of $25 applies to any dishonoured cheque or rejected electronic payment.
10.13. Set-Off Rights – Trail Tire Supply may set-off any amounts owing to the Customer (including rebates, credits, or warranty claims) against the Customer’s indebtedness.
10.14. Severability – If any provision is found invalid, the remaining provisions remain enforceable.
10.15. Successors & Assigns – This Agreement binds the Customer, its principals, successors, and permitted assigns.

11. Acknowledgment

11.1.
The Customer has certified that all information provided to Trail Tire Supply, including that provided in the Credit Application, is accurate, true and correct, and acknowledges having had the prior opportunity to obtain independent legal advice regarding this Agreement.