RETAILER PRODUCT SALES AGREEMENT (RPSA) (Shell Brand)
Exhibit
10.46
RETAILER
PRODUCT SALES AGREEMENT (RPSA)
(Shell
Brand)
THIS
AGREEMENT is between Xxxxxx Travel Centers, Inc. (”Buyer") whose address is 000
Xxxxxxxxx Xxxx, Xxxxxxxxxxx, XX 00000 and Arizona Fuel Distributors, LLC
("Seller") whose address is X.X. Xxx 00000 Xxxxxxx, XX 00000.
1. DEFINITIONS.
As used
in this Agreement, the terms below have the following meanings, whether singular
or plural:
(a)
“Business
Entity” - Any legal entity that is not an individual or sole proprietorship,
including, without limitation, a partnership, corporation, limited liability
company, limited liability partnership, or association.
(b)
“Buyer’s
Marketing Premises” - Buyer’s premises, including, but not limited to, Buyer’s
office and storage, and distribution facilities that Buyer uses in connection
with the Products.
(c)
“Buyer’s
Outlets” - Those retail outlets, including marinas and truck stops, operated or
supplied by Buyer and which Seller has authorized Buyer to display the
Identifications in connection with the resale of the Products to
consumers.
(d)
“Identifications”
- The trademarks, trade dress, service marks, and color schemes relating to
the
Shell brand licensed to Buyer by Seller under the terms of this Agreement for
use by Buyer and Buyer’s Outlets in connection with the marketing and sale of
the Products.
(e)
“Law”
-
Any applicable statute, constitution, ordinance, regulation, rule,
administrative order, or other requirement of any federal, state, or local
government agency or authority in effect at the time of execution, or during
the
term, of this Agreement.
(f)
“Plant”
-
The distributing plant from which deliveries of Petroleum Products are made
to
Buyer.
(g)
“PMPA”
-
The Petroleum Marketing Practices Act as may be amended from time to time (15
U.S.C. §2801 et seq.).
(h)
“Products”
- The gasoline and diesel fuel sold to Buyer by Seller for resale under the
Identifications.
2. PURCHASE
AND SALE OF PRODUCTS.
(a)
Subject
to Articles 18 and 19, Seller shall sell and deliver to Buyer, and Buyer shall
purchase and accept from Seller, the minimum quantities of Products identified
in Exhibit A during each month and year during the term of this Agreement
(“Minimum Quantities”). Buyer acknowledges that the Minimum Quantities are
necessary and reasonable for, among other reasons, Seller to plan its supply
operations and, as such, are of material and reasonable significance to the
franchise relationship. Buyer also acknowledges that Seller has established
minimum volume levels for gasoline (“Base Volume”) to be resold through Buyer’s
Outlets for its customers in order to retain a Wholesale Marketer Agreement.
Accordingly, in no event may Buyer’s Minimum Quantities be less than the
following Base Volume:
If
the
Minimum Quantities are less than the minimum Base Volume, the Minimum Quantities
are deemed amended to be the same as the minimum Base Volume; and the Maximum
Quantities will be proportionately increased. If Buyer fails to purchase this
minimum Base Volume, Seller may take such action as Seller deems appropriate,
including, without limitation, terminating or not renewing this
Agreement.
(b)
Seller
may, but will not be obligated to, sell Buyer more than the “Maximum Quantities”
identified in Exhibit A. Seller’s exercise of its right to do so will not
obligate Seller to continue to sell Buyer such excess quantities.
(c)
To
the
extent practicable, Buyer shall take delivery of all Products on a ratable
basis.
(d)
If
Buyer
fails to purchase and accept the Minimum Quantities in any 12-month period,
Seller may unilaterally downward adjust the Minimum/Maximum Quantities each
succeeding 12-month period by the difference between the annual Minimum
Quantities and the amount actually purchased for that 12-month period. In
addition, Buyer may request that Seller downward adjust Buyer’s Minimum/Maximum
Quantities if the need for the downward adjustment is due to a reason beyond
Buyer’s reasonable control. If Seller agrees that the reason is beyond Buyer’s
reasonable control, Seller shall downward adjust the Minimum/Maximum Quantities
each succeeding 12-month period by the difference between the annual Minimum
Quantities and the amount actually purchased for that 12-month period. Likewise,
if Buyer purchases more than the Minimum Quantities, Buyer may request that
Seller upward adjust Buyer’s Minimum/Maximum Quantities. If Seller agrees, the
Minimum/Maximum Quantities will be upward adjusted for each succeeding 12-month
period.
(e)
If
the
term of this Agreement commences at any time after January 1st of any year
during the term of this Agreement, Buyer must purchase and accept the Minimum
Quantities during the remaining months of that 12-month period, but Seller's
rights and remedies set forth in Articles 2(a) and (d) above will not commence
until the next full 12-month period.
(f)
If
Buyer
terminates this Agreement prior to the expiration of its term or if Seller
terminates this Agreement for cause in accordance with the PMPA or applicable
Law, Seller will be entitled to all remedies available at Law or in equity.
Notwithstanding the foregoing, if Buyer terminates this Agreement and Buyer’s
Outlets remain branded under the Identifications, Seller may waive its remedies
pursuant to this article.
3. PRICES
AND TERMS OF PAYMENT.
(a)
PRICES:
For Gasoline and Diesel Fuel: Seller’s price to retailer in effect at time of
delivery.
(b)
TERMS
OF
PAYMENT: Gasoline
and Diesel Fuel terms are net seven days EFT subject to credit
approval.
(c)
Seller
may charge Buyer interest, at a reasonable lawful rate per annum, on all overdue
sums owed to Seller. Further, if Buyer fails to make timely payment of any
amount due Seller, in addition to all other rights or remedies available, Seller
may take such action as Seller deems reasonable under the circumstances. Without
limiting the generality of the foregoing, Seller may setoff or equitably recoup
against any amount then due Buyer, defer further deliveries of the Products
until payment of all outstanding indebtedness is made, and demand advance cash
payment for further deliveries. Buyer shall comply with the terms of any
commercially acceptable reclamation notice issued to Buyer by Seller under
applicable Law.
4. TERM.
The term
of this Agreement is ten years subject to the Seller’s right to terminate or not
renew this Agreement in accordance with applicable law. Upon expiration, this
Agreement will continue on a month-to-month basis until the parties execute
a
new agreement or Seller terminates or does not renew this Agreement in
accordance with applicable law. The term begins on the date of the first
delivery of Shell gasoline.
5. PERMISSION
TO USE THE IDENTIFICATIONS
(a)
Seller
grants to Buyer permission to use the Identifications only in connection with
the resale of the Products and so long as Buyer complies with the terms of
this
Agreement. Buyer acknowledges that the Identifications are a valuable and
important property right and are essential to the goodwill and reputation of
the
Products. Buyer further acknowledges Seller’s interest in the Identifications
and Buyer shall not claim any right to or title or interest
thereto.
(b)
Buyer
must obtain Seller’s prior written authorization to use and display, or permit
the use and display of, the Identifications at any retail outlet.
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(c)
Buyer
shall follow all rules, regulations, standards, and guidelines Seller
establishes from time to time relating to the use and display of the
Identifications in connection with the resale of the Products.
6. PRODUCT
STEWARDSHIP AND QUALITY.
Pursuant
to Seller’s permission to grant Buyer use of the Identifications, Buyer shall
comply with the following requirements relating to the marketing, storage,
and
resale of the Products.
(a)
Buyer
shall not resell, nor may any operator of Buyer’s Outlets resell, gasoline at
Buyer’s Outlets other than the gasoline purchased by Buyer from Seller to be
resold under the Identifications pursuant to the terms of this
Agreement.
(b)
The
quality of the Products must be strictly maintained and not adulterated,
commingled, or blended with any other products or substances in any
manner.
(c)
All
Products must be clearly identified, correctly labeled, and resold under their
proper Identifications and grades.
(d)
All
signs
and other advertising devices or materials furnished by Seller to Buyer will
remain Seller's property, must be used solely in connection with the resale
of
the Products, and must be returned to Seller immediately upon demand at Buyer's
expense.
(e)
Buyer
shall obtain Seller's prior written approval before using, or permitting the
use
of, any promotional materials or advertising that bear any of the
Identifications.
7. BRAND
IDENTIFICATION AND MINIMUM STANDARDS.
Buyer
acknowledges that the Identifications represent to the motoring public the
manufacture and sale of quality Products. Buyer shall undertake no action of
any
kind that may harm or degrade the Identifications. Buyer further acknowledges
that uniform standards of quality and appearance must be maintained at all
retail outlets displaying the Identifications in order to properly market and
sell the Products, preserve and promote the reputation of Seller, and achieve
public acceptance of the Products. Accordingly, Buyer shall comply with, and
cause the operators of Buyer’s Outlets to comply with, all standards of
operation and appearance established from time to time by Seller, including,
without limitation, the following minimum obligations; provided, however, the
means and the manner of performance are within the sole discretion of
Buyer:
(a)
Buyer
shall comply with the Retail Visual Identity Design Standards and Conversion
guidelines (“Image Guidelines”) as may be amended by Seller or Shell from time
to time. If Seller or Shell amends the Image Guidelines, Seller shall provide
Buyer written notice.
(b)
Buyer
acknowledges receipt of, or has been informed on how to access through the
online website of Seller and/or SHELL, the brand standards pertaining to
Seller’s and SHELL’S operations, appearance, and cleanliness requirements
(“Brand Standards”). At all times during the term of this Agreement, Buyer shall
maintain, and cause the operators of Buyer’s Outlets to maintain, Buyer’s
Outlets in accordance with the Brand Standards, as may be amended by Seller
or
SHELL from time to time. If Seller or SHELL amends the Brand Standards, Seller
shall provide Buyer notice. If any Buyer’s Outlet fails to meet the Brand
Standards, Buyer shall de-identify the Buyer’s Outlet upon notice from Seller in
accordance with Article 23.
(c)
The
Products must be diligently and efficiently merchandised and promoted at Buyer’s
Outlets.
(d)
The
operations at Buyer’s Outlets must be conducted in a professional and
business-like manner and the public must be provided with prompt, courteous,
and
efficient service.
(e)
Buyer
shall promptly and courteously respond to any customer complaints (including
written responses when appropriate) and take immediate action to satisfactorily
resolve each customer complaint.
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(f)
In
order
to operate Buyer’s Outlets in an organized and efficient manner, adequate and
competent personnel who are able to converse in English with Seller, customers,
government officials, and other persons, considering both the volume and nature
of the business activity, must be maintained at Buyer’s Outlets.
(g)
The
operators and employees at Buyer’s Outlets shall wear neat, clean uniforms of a
type and style approved by Seller; provided, however, for uniforms with Buyer
logos, such approval will not be unreasonably withheld.
(h)
All
service work at Buyer’s Outlets must be performed in a workmanlike manner
utilizing only first-class new materials and parts except when the customer
specifically authorizes rebuilt or used materials or parts.
(i)
Buyer’s
Outlets must be kept in a clean, sanitary, and safe condition and all property
and equipment kept in good operating condition and repair. The driveways,
sidewalks, and other landscaped areas must be kept in a neat and orderly
appearance free from weeds, debris, snow, ice, and rubbish.
(j)
Buyer’s
Outlets may not be used for any unlawful, offensive, hazardous, unsightly,
or
other objectionable purpose, including, but not limited to, the sale or display
of materials with dominant themes of sex, nudity, prurient interest, or
pornography, which are unacceptable under local community standards. Merchandise
or paraphernalia that is morally offensive or distasteful to the general public
may not be displayed or offered for sale at Buyer’s Outlets.
(k)
Buyer’s
Outlets must be kept clear of vehicles, other mobile equipment, and obstructions
that restrict traffic flow, endanger customer safety, or detract from
appearance. Buyer’s Outlets may not be used to sell, lease, or store motor
vehicles, trailers, boats, or other mobile equipment, without Seller’s prior
written consent.
(l)
Buyer’s
Outlets must be operated in a secure manner so that criminal activity is
adequately deterred from occurring there and so that all persons at Buyer’s
Outlets are adequately protected from injury, harm, or loss. Buyer has complete
control over and the sole responsibility for security at Buyer’s
Outlets.
8. SELLER’S
MARKETING RIGHTS.
SHELL or
Seller may, from time to time: (a) add, change, or modify the grade, Product
brand name, delivery package, or other distinctive designation of any Product;
(b) change or modify the formulations and specifications of any Product; and
(c)
upon 30 days’ prior notice, discontinue at any time the sale of any Product in
which event the parties will be relieved of any further obligation with respect
to that Product.
9. SALES
AND MARKETING OBLIGATIONS.
(a)
Buyer
shall use its reasonable efforts to develop and actively promote the sales
of
Products. Nothing in this Agreement grants Buyer an exclusive territory to
market and resell the Products. Seller reserves the right to market and sell,
and authorize others to market and sell, the Products in any manner Seller
chooses, including, without limitation, through its own retail outlets or
through designated wholesalers or other buyers.
(b)
Buyer
shall keep all Buyer’s Outlets supplied on a timely basis with sufficient
volumes and quantities of Products to meet the needs and demands of all Buyer’s
Outlets and their customers. Buyer shall maintain a sufficient amount of all
grades of Seller’s branded gasoline and, if applicable, branded diesel fuel at
Buyer’s Outlets.
(c)
Buyer
shall not sell, deliver, or otherwise supply the Products to retail outlets
Seller has not authorized, in writing, Buyer to supply. Further, Buyer shall
not
supply the Products to any reseller or retailer who Buyer knows or has reason
to
know will resell the Products under trademarks or brand names other than those
of Seller.
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10. TRAINING.
(a)
Buyer
shall attend and shall cause all the managers or operators of Buyer’s Outlets to
attend a minimum of 2 days (16 hours) of Shell approved training courses or
courses deemed appropriate by Shell for each year of the term of this Agreement,
as and if required by Shell. The training will be conducted at a training
facility designated by Seller.
(b)
Buyers
without previous automobile service station, motor fuel dispensing station,
or
convenience store experience shall attend the appropriate initial new Buyer
training class and shall cause all the operators of Buyer's Outlets without
such
previous experience to attend the appropriate initial new Buyer training class.
The training will be conducted at a training facility designated by
Seller.
(c)
Upon
Seller’s request, Buyer shall provide proof of training for Buyer, Buyer’s
managers, and the operators of Buyer’s Outlets. Buyer shall have available and
utilize training equipment, materials, and programs made available by Seller
from time to time for training purposes.
(d)
Buyer
shall distribute Seller’s communications relating to training and Seller’s
training materials within 90 days after receipt to Buyer’s employees and the
operators and employees of Buyer’s Outlets.
11. DELIVERIES.
(a)
POINT
OF
DELIVERY: 0000 Xxxxxxx Xx., Xxxxxx, XX 00000
(b)
Title
and
risk of loss passes to Buyer when Products pass from Seller's delivery line
into
the receiving connection of Buyer's tank unless otherwise agreed to by
Seller.
12. TRANSACTION
CARDS.
(a)
As
long
as Seller elects to accept specified credit cards, credit identifications,
debit
cards, pre-paid cards, or other transaction authorization cards (collectively
“Transaction Cards”) in the state in which Buyer’s Outlets are located, Buyer
shall accept all Transaction Cards identified in Seller’s Transaction Card guide
(“Guide”) for the purchase of authorized products and services. Buyer shall
account for and process, and cause the operators of Buyer’s Outlets to account
for and process, all such transactions in strict compliance with the terms
set
forth in the Guide, as may be amended by Seller from time to time. If Seller
amends the Guide, Seller shall provide Buyer with notice. Seller may assess
Buyer a Transaction Card processing fee for providing such
services.
(b)
Seller
shall accept from Buyer all transactions generated as a result of purchases
made
with authorized Transaction Cards and processed in accordance with the terms
in
the Guide. At Seller’s option, Seller shall pay the amount of the transactions
to Buyer, after deducting any processing fee in effect under Seller’s then
current Guide, by: (1) setting off the amount against Buyer’s account with
Seller; (2) a credit to Buyer’s bank account by EFT.
(c)
For
each
transaction not authorized, disputed by a customer, or otherwise subject to
chargeback under the Guide, Seller may either charge the amount to Buyer’s
account or require Buyer to make immediate refund to Seller, including refund
by
draft or EFT initiated by Seller, without any deduction for any processing
fee.
(d)
In
order
to provide efficient service to the motoring public, Buyer shall comply with
Seller’s software and hardware standards, established from time to time by
Seller, relating to Electronic Point of Sale (“EPOS”) systems, including, but
not limited to, Seller approved compatible hardware, customer activated
terminals, integrated and non-integrated EPOS systems, and other requirements
necessary to electronically accept and process the Transaction Cards at all
times during the term of this Agreement. Buyer shall upgrade the EPOS system
with any new release of the software within 9 months after notice from
Seller.
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(e)
Buyer
shall execute any applicable Seller agreement relating to the use or access
of
the EPOS system. In addition, if Seller loans or leases any imprinter, EPOS
terminal, or other related equipment to Buyer in connection with acceptance
of
the Transaction Cards, Buyer shall: (1) comply with the terms of the Guide;
(2)
execute any applicable Seller agreement relating to the use of such equipment;
and (3) reimburse Seller for any charges relating to the use of such equipment
(whether third party or internal) incurred by Seller.
(f)
Without
limiting any rights or remedies available to Seller, if Buyer fails to comply
with this article or the Guide, Seller may limit or terminate Buyer’s or the
operator’s right to participate in Seller’s program for Transaction Cards;
provided, however, if the failure is technical or immaterial, in Seller’s sole
discretion, Seller may provide Buyer or the operator of Buyer’s Outlet, as the
case may be, 30 days to correct such failure. Further, Seller may terminate
its
Transaction Card program at any time upon notice to Buyer.
13. INSPECTION
AND AUDIT.
Buyer
grants Seller, its agents, and representatives the right to enter the Buyer’s
Marketing Premises and Buyer’s Outlets at all reasonable times to inspect the
facilities, procedures, and materials being used in connection with the purchase
and sale of the Products, to obtain samples of and conduct tests on the
Products, to inspect the books and records pertaining to the purchase and sale
of the Products, and to audit, observe, and otherwise verify Buyer’s compliance
with this Agreement.
14. TAXES.
Buyer
shall pay all federal, state, and local taxes, excises, duties, license fees,
inspection fees, and other assessments and charges of any kind and nature,
now
or hereafter levied, (“Taxes”) assessed by any governmental authority, relating
to the importation, manufacture, sale, purchase, transportation, storage,
resale, or use of the Products insofar as the same is not expressly included
in
the price for the Products. If Buyer pays directly any Tax normally remitted
by
Seller, Seller may require proof of payment of such charges from Buyer and
may
require Buyer to provide a bond or other form of security necessary to protect
Seller against loss arising from nonpayment. Buyer shall furnish Seller with
satisfactory tax exemption certificates where an exemption is
claimed.
15. WARRANTY
AND DISCLAIMER. SELLER WARRANTS THAT ALL PRODUCTS SOLD TO BUYER WILL MEET THE
THEN-CURRENT SPECIFICATIONS OF SHELL. SELLER MAKES NO OTHER WARRANTIES OF ANY
KIND AS TO THE PRODUCTS SOLD TO BUYER, EITHER EXPRESS OR IMPLIED, INCLUDING,
BUT
NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.
16. |
CLAIMS.
|
(a)
Seller
will not be liable to Buyer for any defect in quality or shortage in quantity
of
the Products unless: (1) Buyer gives Seller notice within 2 business days after
delivery for shortages and within 4 business days after delivery for quality
defects (or 4 business days after discovery if the defect is latent) and (2)
Buyer provides Seller with a reasonable opportunity to inspect, take samples,
and test the Products that are the subject of the claim.
(b)
Except
as
set forth in Article 20 or claims relating to indebtedness, or as otherwise
specified in this Agreement the parties will not be liable to each other for
any
other claim arising out of this Agreement unless the claimant provides the
other
party with written notice of the claim (setting forth fully the facts on which
the claim is based) within 180 days after the date on which the claim
arose.
17. |
COMPLIANCE
WITH LAWS.
|
(a)
Buyer
shall comply with all Laws, licenses, and permits relating to its business
and,
as applicable, the receipt, handling, storage, dispensing, packaging,
transportation, labeling, advertising, and sale of the Products at Buyer’s
Outlets.
(b)
Without
limiting the generality of the foregoing, Buyer shall comply with all Laws
relating to unleaded gasoline, oxygenated gasoline, reformulated gasoline,
Xxxx
vapor pressure, fuel additives, and diesel fuel as specified in Exhibit D,
which
Seller may amend from time to time upon written notice to Buyer. Further, if
Buyer or any operator of Buyer’s Outlets owns or operates any UST systems (as
defined in applicable Laws), Buyer shall comply, and cause the operator to
comply, with all applicable Laws governing UST systems, including but not
limited to financial responsibility requirements through mechanisms provided
for
in such Laws such as guarantees, surety bonds, and insurance. Buyer shall also
comply with Retailer Inventory Control Program (Exhibit D-1).
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18. EXCUSES
FOR NON-PERFORMANCE.
Both
parties will be excused from their obligations under this Agreement (except
for
financial obligations) to the extent that performance is delayed or prevented
by
the following matters: circumstances reasonably beyond the parties’ control
including, but not limited to, flood, ice storm, snowstorm, or earthquake;
fire
or explosion; delay or loss of transportation or delivery equipment; mechanical
breakdown; strikes or other labor trouble, plant shutdown, riots, or other
civil
disturbances; or voluntary or involuntary compliance with any Law or request
of
any governmental authority.
19. ALLOCATION.
If
Seller, for any reason, does not have sufficient supplies of the Products to
supply its customers, then during any period of short supply Seller may restrict
deliveries of the Products to Buyer without liability and may allocate Seller’s
supply of the Products among its customers and classes of customers which in
Seller’s judgment is fair and reasonable under the circumstances. After
cessation of any period
of
short supply, Buyer and Seller shall promptly resume deliveries and receipts
of
the Products but shall not be obligated to make up any deliveries or receipts
not made because of such period of short supply.
20. |
INDEMNITY.
|
(a)
TO THE EXTENT PERMITTED BY LAW, BUYER SHALL INDEMNIFY AND DEFEND
SELLER, ITS MEMBERS, SUBSIDIARIES, AFFILIATES AND JOINT VENTURE
PARTNERS, AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES,
AND AGENTS (“INDEMNIFIED
PARTIES”) AGAINST ALL CLAIMS, DEMANDS,
CAUSES OF ACTION, SUITS, DAMAGES, JUDGMENTS, LIENS, PENALTIES,
AND EXPENSES, INCLUDING, WITHOUT LIMITATION, ATTORNEYS’ FEES
AND
LITIGATION COSTS, WHETHER INCURRED FOR AN INDEMNIFIED PARTY’S
PRIMARY DEFENSE OR FOR ENFORCEMENT OF ITS INDEMNIFICATION RIGHTS
(COLLECTIVELY, “CLAIM”), INCLUDING, WITHOUT LIMITATION, ANY CLAIM
FOR
HARM, INJURY, OR DEATH TO ANY PERSON, OR DAMAGE TO PROPERTY
OR TO THE ENVIRONMENT ARISING OUT OF OR IN CONNECTION WITH
ANY
OF THE FOLLOWING MATTERS.
(1)
BUYER’S
PERFORMANCE OR NONPERFORMANCE UNDER THIS AGREEMENT, INCLUDING, WITHOUT
LIMITATION, BUYER’S POSSESSION, SALE, TRANSPORTATION, STORAGE, HANDLING, AND USE
OF THE PRODUCTS;
(2)
ANY
ACTION OR OMISSION OF BUYER OR BUYER’S EMPLOYEES, AGENTS, CONTRACTORS, ASSIGNS,
OR THIRD PARTIES; AND
(3)
ANY
EVENT OR OCCURRENCE AT OR INVOLVING THE OPERATION OF ANY BUYER’S
OUTLET.
(b)
BUYER’S
OBLIGATION TO INDEMNIFY AND DEFEND EXTENDS TO ANY CLAIM
CAUSED BY THE CONCURRENT OR CONTRIBUTORY NEGLIGENCE OR FAULT
OF
AN INDEMNIFIED PARTY BUT NOT TO ANY CLAIM SHOWN BY FINAL NONAPPEALABLE
JUDGMENT TO HAVE BEEN CAUSED BY THE INDEMNIFIED PARTY’S
SOLE NEGLIGENCE OR ANY DEFECT IN THE PETROLEUM PRODUCTS NOT
CAUSED OR CONTRIBUTED TO BY ANY NEGLIGENCE OR FAULT OF
BUYER.
(c)
NOTWITHSTANDING
BUYER’S OBLIGATIONS IN ARTICLE 20(a), BUYER SHALL INDEMNIFY AND DEFEND THE
INDEMNIFIED PARTIES AGAINST ALL CLAIMS ARISING SOLELY AT PLANTS OWNED OR
OPERATED BY SELLER BUT ONLY TO THE EXTENT OF THE NEGLIGENCE OF BUYER, BUYER’S
EMPLOYEES, AGENTS, OR CONTRACTORS.
(d)
WITHIN
A REASONABLE TIME AFTER ANY OCCURRENCE WHICH MAY RESULT IN A CLAIM BUYER SHALL
REPORT THE SAME TO SELLER BY TELEPHONE AND SHALL PROMPTLY THEREAFTER CONFIRM
THE
SAME BY WRITTEN NOTICE, INCLUDING ALL CIRCUMSTANCES THEREOF KNOWN TO BUYER
OR
THE OPERATORS OF BUYER'S OUTLETS OR THEIR EMPLOYEES.
7
(e)
PROMPTLY AFTER RECEIVING NOTICE OF ANY SUCH OCCURRENCE, AT BUYER’S EXPENSE,
BUYER SHALL INVESTIGATE SAID OCCURRENCE AND RESPOND TO AND DEFEND
ANY CLAIM ASSERTED AGAINST ANY INDEMNIFIED PARTY, INCLUDING, WITHOUT
LIMITATION, ANY CLAIM ALLEGING THE INDEMNIFIED PARTY’S SOLE NEGLIGENCE.
THE INDEMNIFIED PARTY MAY PARTICIPATE IN THE DEFENSE AND SETTLEMENT
OF ANY CLAIM OR LITIGATION WITH ATTORNEYS OF THE INDEMNIFIED
PARTY’S SELECTION WITHOUT RELIEVING BUYER OF ANY OBLIGATIONS
UNDER THIS ARTICLE; PROVIDED, HOWEVER, THE INDEMNIFIED PARTY
SHALL BE RESPONSIBLE FOR ITS OWN ATTORNEYS’ FEES. SELLER SHALL REIMBURSE
BUYER FOR THE AMOUNT OF ANY JUDGMENT AND REASONABLE DEFENSE
COSTS PAID BY BUYER WHICH REPRESENTS THE TOTAL LIABILITY FOUND BY
FINAL
NONAPPEALABLE JUDGMENT TO HAVE BEEN CAUSED BY THE INDEMNIFIED
PARTY'S SOLE NEGLIGENCE OR PRODUCT DEFAULT AS SPECIFIED IN ARTICLE
20(a) OR THE TOTAL LIABILITY FOUND NOT TO BE ATTRIBUTABLE TO THE NEGLIGENCE
OF BUYER, BUYER'S EMPLOYEES, AGENTS, OR CONTRACTORS UNDER ARTICLE
20(b).
(f)
THE
INSURANCE REQUIREMENTS OF ARTICLE 21 DO NOT LIMIT OR RESTRICT IN ANY WAY BUYER’S
OBLIGATIONS UNDER THIS ARTICLE.
(g)
BUYER’S
OBLIGATIONS UNDER THIS ARTICLE SURVIVE TERMINATION OR NONRENEWAL OF THIS
AGREEMENT.
21. |
INSURANCE.
|
(a)
Buyer
shall maintain, at its sole cost, at all times under the term of this Agreement,
the following insurance coverage with providers satisfactory to Seller with
limits not less than those limits required below (the "Insurance"):
(1)
Garage
Insurance with limits of $500,000 each occurrence and $1,000,000 general
aggregate and Garagekeepers Legal Liability Insurance with a limit of $500,000
each occurrence, such policy to include endorsement GL 20 10 Broadened Coverage.
Limits in excess of $500,000 may be provided by Excess or Umbrella Liability
coverage. This Insurance is only required for those locations engaged in
automotive repairs, and should be used in lieu of Commercial General Liability
insurance in Paragraph 21 below. As applicable, Buyer shall maintain the
following:
(i)
Liquor
Liability Insurance if Buyer owns or operates the location and alcoholic
beverages are sold at the location, utilizing endorsement CG 24 08 or its
equivalent.
(ii)
Marine
Terminal or Wharfingers Liability Insurance if Buyer operates a marine facility.
If Buyer operates marine facilities via watercraft the watercraft exclusion
must
be deleted or equivalent coverage purchased.
(2)
Commercial
General Liability Insurance unamended or Comprehensive General Liability
Insurance with Broad Form CGL endorsement with limits of $1,000,000 each
occurrence and $1,000,000 general aggregate. Limits in excess of $1,000,000
may
be provided by Excess Liability or Umbrella Liability coverage. As applicable,
Buyer shall maintain the following:
(i)
Liquor
Liability Insurance if Buyer owns or operates the location and alcoholic
beverages are sold at the location, utilizing endorsement CG 24 08 or its
equivalent.
(ii)
Marine
Terminal or Wharfingers Liability Insurance if Buyer operates a marine facility.
If Buyer operates marine facilities via watercraft the watercraft exclusion
must
be deleted or equivalent coverage purchased.
(3)
Business
Automobile Liability Insurance covering all vehicles used in the operations
of
the Buyer with limits of liability of $1,000,000 each accident, such policy
to
be endorsed with MCS-90 when hazardous material transportation is
involved.
(4)
Workers'
Compensation Insurance as required by Laws applicable to and covering Buyer’s
employees.
8
(5)
Employers'
Liability Insurance protecting Buyer against common law liability, in the
absence of statutory liability, for employee bodily injury arising out of the
master-servant relationship with a limit of $500,000 Each Accident, $500,000
Disease-Policy Limit; $500,000 Disease-Each Employee. Such insurance must
include a waiver of subrogation in favor of Seller where permissible by
Law.
(b)
Insurance
policies must allow for the separation of insureds, and provide for written
notice of cancellation or material change. Notice of cancellation or change
will
not affect the Insurance until 30 days after written notice is received by
Seller. Any deductible or retention of insurable risks will be for the Buyer's
account.
(c)
Buyer
shall assure that the Insurance required in this article and each certificate
evidencing the Insurance issued to Buyer names Seller and its members,
subsidiaries, affiliates and joint venture partners, to the extent of their
interest, as additional insureds (Article 21(a)(1) and (2) as applicable),
without regard to the allocation of liability provisions contained in this
Agreement, to the extent of any claim, loss or liability within the scope of
the
required Insurance. The parties intend that, to the extent of their interest,
the status of Seller and its members, subsidiaries, affiliates and joint venture
partners as additional insureds will not be limited by the indemnity obligations
under this Agreement or otherwise. Buyer shall secure from its insurance
companies and provide to Seller, for all required Insurance (Article 21(a)(1)
and (2) as applicable), an additional insured endorsement with terms equivalent
to ISO Form CG 20 26 11 85.
(d)
At
the
time of execution of this Agreement and during the term of this Agreement,
Buyer
shall provide Seller with a certificate of Insurance evidencing Buyer’s
compliance with Seller’s Insurance Requirements. Buyer’s failure to provide
certificates evidencing the Insurance requirements or purchase Insurance
coverage in compliance with this article will not relieve Buyer of its
obligations in this article.
22. |
ASSIGNMENTS.
|
(a)
Assignment
by Buyer.
This
Agreement is personal to Buyer. Buyer may not sell, transfer, assign, or
encumber any of its interest under this Agreement, or assign any claim against
Seller arising directly or indirectly out of or in connection with this
Agreement, in whole or in part, whether voluntarily, involuntarily, or by
operation of Law (collectively, “Transfer”) without the prior written consent of
Seller, which consent will not be unreasonably withheld. Seller will have 30
days (or any lesser period specified by Law) after receipt of Buyer’s request
for Seller’s consent and all qualification information reasonably required by
Seller to provide Buyer with written notice of its decision to grant or withhold
consent. Seller’s consent to any Transfer is not a waiver of the provisions of
this article as to any future transaction. Any Transfer by Buyer without
Seller’s prior written consent is void.
(b)
Successor
in Interest.
Notwithstanding the foregoing, if Buyer or the person currently in “control” of
the ownership interest of Buyer (“control” being the authority to direct the
operations of Buyer and to have or exercise management responsibility) dies
or
suffers severe physical or mental disability of at least 3 months which renders
Buyer unable to perform all of its obligations under this Agreement, or if
Buyer
seeks to Transfer any of its interest in this Agreement for estate planning
purposes, Seller consents to the Transfer of this Agreement, in whole or in
part, to a qualified member of the individual's immediate family. For the
purposes of this article a “qualified member” includes the individual's spouse,
adult child, parent, brother and sister who is acceptable to Seller under
Seller’s current Transfer guidelines.
(c)
Transfer
Events.
Without
limiting the foregoing, the following events constitute a Transfer:
(1)
Subject
to Article 22(b) above, if Buyer is an individual and Buyer dies and Buyer’s
interest in this Agreement is transferred, whether by will or operation of
Law;
(2)
Buyer
becomes bankrupt or insolvent, Buyer makes an assignment for the benefit of
creditors, or a proceeding is instituted under the Bankruptcy Code, and, if
it
is an involuntary proceeding, Buyer or other affected party has not had it
dismissed within 60 days;
(3)
A
writ of
attachment or execution is levied on this Agreement and is not removed by Buyer
within 30 days;
9
(4)
A
receiver is appointed with authority to take over Buyer’s interest in this
Agreement and is not removed within 60 days in any proceeding or action to
which
Buyer is a party;
(5)
If
Buyer
is a partnership or a limited liability partnership, a withdrawal or any change
of interest (voluntary, involuntary or by operation of Law) of any partner
or
the dissolution of the partnership; provided, however, a Transfer of interests
between existing partner is not a Transfer requiring Seller’s prior
consent;
(6)
If
Buyer
is a limited liability company or a corporation, any dissolution, merger,
consolidation or other reorganization, or other arrangement having similar
effect, or the Transfer by Buyer or any member or shareholder with a controlling
interest or more of the voting shares of the capital stock of Buyer or of any
lesser interest which cumulatively vests a controlling interest of such voting
shares in the transferee; provided, however, if Buyer Transfers more than 25%
of
the interest in any one year or more than 49% of the interest over the term
of
this Agreement, Buyer must obtain Seller’s consent in accordance with Article
22(a) above; and
(7)
If
Buyer
is composed of more than one person, any change of interest (voluntary,
involuntary or by operation of Law) of any such person.
(d)
Notice
of Pending Sale.
If
Buyer formalizes a plan to sell, or receives a proposal or offer to purchase,
Buyer’s business, Buyer’s Marketing Premises, or any Buyer’s Outlet, Buyer shall
provide Seller or its designee with the necessary information relating to the
proposed purchase or sale to afford Seller an opportunity to negotiate an
agreement with Buyer to purchase the business or assets. Upon receipt of the
notice, the parties shall execute a mutually acceptable confidentiality
agreement pertaining to the sale and Seller will have a maximum of 30 days
to
make Buyer an offer to purchase; provided, however Seller shall make a
reasonable effort to respond to Buyer in less time. Buyer shall consider, but
will not be obligated to accept, any purchase offer made by Seller.
(e)
Assignment
by Seller.
Seller
may transfer its interest, in whole or in part, in this Agreement.
23. DE-IDENTIFICATION
OF BUYER’S OUTLETS.
(a)
If
any
action is taken at any Buyer’s Outlet that is prohibited by this Agreement, any
action is not taken that is required or contemplated by this Agreement, or
the
operations at a Buyer’s Outlet are otherwise not conducted in accordance with
this Agreement, Seller may revoke the permission Seller granted to use the
Identifications at that Buyer’s Outlet by giving written notice to Buyer.
Without limiting the generality of the foregoing, if a Buyer’s Outlet is
abandoned, not operated, is no longer supplied by Buyer, or if a sufficient
amount of all grades of Seller’s branded gasoline or, if applicable, branded
diesel fuel is not maintained at a Buyer’s Outlet for 7 consecutive days, or
such lesser period which under the facts and circumstances constitutes an
unreasonable period of time, Buyer must notify Seller, immediately de-identify
the outlet, and then notify Seller of the de-identification.
(b)
Promptly
after receiving notice from Seller as specified in Article 23(a) above, Buyer
shall take all steps necessary and appropriate to cease the marketing and
selling of Products, and otherwise using the Identifications, at the Buyer’s
Outlet. Without limiting the generality of the foregoing, at Buyer’s expense,
Buyer shall, or shall cause the operator of Buyer’s Outlet to: (1) remove, and
if requested by Seller return, all signs or materials bearing any of the
Identifications including, if applicable, the Lazy S canopy fascia, illuminated
light bar, and the building portico unless Buyer has received prior approval
from Seller to relocate the same to another Buyer’s Outlet; (2) remove and
destroy, or permanently paint over, all other brand Identification items,
advertising displays, color schemes and other materials bearing any of the
Identifications (whether used on buildings, equipment, tanks, trucks,
automobiles or stationery; and (3) return any equipment loaned or leased to
Buyer for use at Buyer’s Outlet.
(c)
If
a
Buyer’s Outlet is temporarily closed with Seller’s prior consent, Buyer shall
cover or remove the primary Identifications at the Buyer’s Outlet including, but
not limited to, the canopy, street, and high rise signs, and shall keep, or
cause the operator of the Buyer’s Outlet to keep, the Buyer’s Outlet cleaned and
maintained.
10
24. TERMINATION
OR NONRENEWAL.
(a)
Termination
by Seller.
Subject
to any limitations imposed by Law, Seller may terminate this Agreement for
any
of the following grounds.
(1)
Buyer’s
failure to comply with any provision of this Agreement, which provision is
both
reasonable and of material significance to the relationship under this
Agreement;
(2)
Buyer’s
failure to exert good faith efforts to carry out the provisions of this
Agreement;
(3)
The
occurrence of an event which is relevant to the relationship under this
Agreement and as a result of which termination of this Agreement is reasonable,
including, without limitation, the following events:
(i)
Buyer’s
fraud or criminal misconduct relevant to the operation of Buyer’s business,
Buyer’s Marketing Premises, or Buyer’s Outlets;
(ii) Buyer’s
declaration of bankruptcy or judicial determination of insolvency of
Buyer;
(iii) Buyer’s
continuing severe physical or mental disability if Buyer is an individual,
or if
Buyer is a partnership or corporation, the disability of any individual who
is
currently in “control” of the ownership interest (“control” being the authority
to direct the operations of Buyer and to have or exercise management
responsibility) of at least 3 months that renders Buyer unable to provide for
the continued proper operation of Buyer’s Marketing Premises or Buyer’s
Outlets;
(iv) Loss
of
Seller’s right to grant the right to use the Identifications, which are the
subject of the franchise;
(v) Buyer’s
failure to pay to Seller in a timely manner when due all sums to which Seller
is
legally entitled;
(vi) Buyer’s
failure to operate Buyer’s Marketing Premises for 7 consecutive days, or such
lesser period which under the facts and circumstances constitutes an
unreasonable period of time;
(vii) Buyer’s
willful adulteration, mislabeling, or misbranding of motor fuels or other
trademark violations;
(viii) Buyer’s
knowing failure to comply with the Laws relevant to the operation of Buyer’s
business, Buyer’s Marketing Premises, or Buyer’s Outlets;
(ix)
Buyer’s
conviction of any felony involving moral turpitude;
(x)
Subject
to Article 22(b), Buyer’s death if Buyer is an individual, or if Buyer is a
partnership or corporation, the death of any individual who is currently in
“control” of the ownership interest of Buyer (“control” being the authority to
direct the operations of Buyer and to have or exercise management
responsibility); and
(xi)
Buyer’s
failure to comply with Buyer’s obligations relating to Insurance set forth in
Article 21.
(4)
A
determination is made by Seller in good faith and in the normal course of
business to withdraw from marketing of motor fuel through retail outlets in
the
relevant geographic market area in which Buyer’s Outlets are
located;
(5)
Termination
by Seller for cause of any other agreement between Buyer and Seller pertaining
to this facility.
11
(6)
Any
other
ground for which termination is provided for in this Agreement or is otherwise
allowed by the PMPA or other applicable Law.
(b)
Termination
After Execution.
If
after execution of this Agreement Seller has grounds to terminate or not
renew
any then existing agreement between the parties, or to terminate this Agreement
as if it were then in its term, Seller may terminate this Agreement, as well
as
any existing agreement pertaining to this location, based on those
grounds.
(c)
Non-renewal
by Seller.
Subject
to any limitations imposed by Law, Seller may not renew this Agreement for
any
of the grounds specified in Article 24(a) or any other ground for which
non-renewal is provided for in this Agreement or is otherwise allowed by
the
PMPA or other applicable Law.
(d)
Mutual
Termination.
The
parties may terminate or not renew this Agreement by mutual written agreement
in
the form and manner permitted by the PMPA.
(e)
Acts
Attributable to Buyer.
In
determining whether a ground for termination or non-renewal exists under
this
article, the acts or omissions of Buyer’s employees, agents, and contractors are
the acts or omissions of Buyer. If Buyer is comprised of more than one person,
the acts or omissions of each such person are the acts or omissions of Buyer.
If
Buyer is a Business Entity, in addition to those individuals mentioned above,
the acts or omissions of each partner, shareholder or member, as the case
may
be, are the acts or omissions of Buyer.
25. RIGHTS
AND DUTIES UPON TERMINATION OR NONRENEWAL.
(a)
Upon
termination or non-renewal of this Agreement, Buyer shall immediately cease
marketing and selling the Products and otherwise using the Identifications
or
any marks confusingly similar thereto. Without limiting the generality of the
foregoing, at Buyer’s expense, Buyer shall: (1) remove, and if requested by
Seller return, all signs or materials bearing any of the Identifications
including, if applicable, the Lazy S canopy fascia, illuminated light bar,
and
the building portico; (2) remove and destroy, or permanently paint over, all
other brand Identification items, advertising displays, color schemes and other
materials bearing any of the Identifications (whether used on buildings,
equipment, tanks, trucks, automobiles or stationery; and (3) return any
equipment loaned or leased by Seller to Buyer for use at Buyer’s
Outlets.
(b)
If
Buyer
fails for any reason to cease marketing and selling the Products or otherwise
using any of the Identifications immediately upon the Effective Date of
termination or non-renewal, then Seller may enter Buyer’s Marketing Premises and
the Buyer’s Outlets operated by Buyer to carry out Buyer’s obligations under
Article 25(a) above, at Buyer’s expense. Buyer shall not interfere, and will not
permit any of its employees, agents or representatives to interfere, with
Seller’s rights under this article. Seller’s exercise of its right of entry will
not constitute a trespass or other tort.
(c)
If
Buyer
fails for any reason to cease marketing and selling Products or otherwise using
any of the Identifications immediately upon the Effective Date of termination
or
non-renewal, then Seller may take all necessary and appropriate action, in
Buyer’s name and at Buyer’s expense, to cause the operator of that Buyer’s
Outlet to cease that activity.
(d)
Seller
will be entitled to injunctive and equitable relief for any violation of this
article and Buyer shall pay all costs and expenses, including reasonable
attorneys’ fees and other legal costs Seller incurs, in enforcing this
article.
26. INDEPENDENT
CONTRACTOR.
Buyer is
an independent businessperson, and nothing in this Agreement may be construed
as
reserving to Seller any right to exercise any control over, or to direct in
any
respect the conduct or management of, Buyer’s business or operations conducted
pursuant to this Agreement, but the entire control and direction of such
business and operations are and will remain in Buyer, subject only to Buyer’s
performance of the obligations of this Agreement. Neither Buyer nor any person
performing any duties or engaged in any work at the Buyer’s Outlets will be
deemed an employee or agent of Seller, and none of them is authorized to impose
on Seller any obligations or liability whatsoever.
12
27. BUSINESS
ENTITY OR JOINT BUYER.
(a)
If
Buyer
is comprised of more than one person, the obligations imposed under this
Agreement are joint and several as to each person and all of the terms apply
to
each person with the same effect as though that person were the sole
Buyer.
(b)
If
Buyer
is a Business Entity, all obligations and provisions of this Agreement of
a
personal nature apply as if the Business Entity were an individual and, insofar
as is legally possible and reasonably practicable, to those individuals who
have
or exercise management responsibility for the Business Entity, including,
without limitation, officers, directors or agents of corporations and partners
of partnerships. The Business Entity must manage its affairs with respect
to the
personal obligations and provisions in a manner so as to give full force
and
effect to the same.
28. NOTICES.
(a)
Except
as otherwise specified in this Agreement, all notices must be in writing
and in
compliance with the PMPA and other applicable Law.
Subject
to any requirements of Law, any notice (including price notifications) may
be
given to Buyer by personal service or by electronic mail or to either party
only
by certified mail. Notice will be deemed given based upon the date of the
notice.
(b)
If
Buyer
is a Business Entity, Seller may give notice to: (1) any officer or director
of
a corporation or limited liability company; (2) any partner of a partnership
or
limited liability partnership; or (3) any personal representative, agent,
or
employee of any other Business Entity.
29. ATTORNEY’S
FEES.
Seller
or Buyer, as the case may be, will be entitled to recover from the other party
reasonable attorney’s fees and other legal costs the prevailing party incurs in
order to secure or protect the rights inuring to the prevailing party under
this
Agreement, or to enforce the terms thereof.
30. AMORTIZATION
OF BRANDING COSTS. Buyer understands and acknowledges that Seller expended
a
certain amount of money to brand this location with the Shell brand. These
funds
were spent with the understanding that this agreement would remain in place
for
the full ten year period. Should Buyer wish to terminate this agreement prior
to
its expiration, then Buyer agrees to reimburse Seller for the unamortized
portion of these funds. It is hereby agreed that the funds will amortize at
the
rate of 1/120 of the total amount spent each month that the agreement is in
place. In addition to repaying the unamortized amount to the Seller, Buyer
also
agrees to reimburse the Seller for his expenses to de-brand the site to remove
all signs of the Shell brand.
31. GENERAL
PROVISIONS.
(a)
This
Agreement as of the Effective Date hereof cancels and supersedes all prior
and
contemporaneous representations, inducements, agreements, commitments, and
undertakings with respect to the subject matter of this Agreement, except
those
written agreements relating to any indemnification, reimbursement, indebtedness,
or debt security obligations (including, but not limited to, any security
interest, security agreement, guaranty, mortgage, deed of trust, promissory
note, or UCC filing).
(b)
Except
as
expressly provided under this Agreement, all amendments and supplements to
this
Agreement must be in writing and signed by both parties.
(c)
Any
waiver of any provision of this Agreement must be in writing signed by the
parties. Either party’s delay or failure to enforce any provision of this
Agreement or any course of dealing or trade custom or usage will not operate
as
a waiver of compliance with that provision or a waiver or estoppel of the
party’s right to enforce any other provision of this Agreement.
(d)
The
provisions of this Agreement are severable. If any provision of this Agreement
is, for any reason, invalid or unenforceable, the remaining provisions of
this
Agreement are valid and enforceable if the basic intent of the parties is
still
capable of being achieved.
13
(e)
This
Agreement is binding upon and enforceable against the parties’ respective
successors, permitted assignees, legal representatives, executors,
administrators, heirs, and legatees.
(f)
Neither
this Agreement nor any subsequent agreement amending or supplementing this
Agreement is binding unless a duly authorized representative of the parties
signs the Agreement, amendment, or supplement.
Executed
on the date shown below:
Buyer: |
Xxxxxx
Travel Centers, Inc
000
Xxxxxxxxx Xxxx.
Xxxxxxxxxxx,
XX 00000
|
Seller: |
Arizona
Fuel Distributors, LLC
X.X. Xxx 00000
Xxxxxxx, XX
00000
|
|
By: | /s/ Xxx Xxxxxxx | By: | /s/ Xxxxx X. Xxxxx | |
|
|
|||
Name:
Xxx Xxxxxxx
Title:
Director of Operations
|
Name:
Xxxxx X. Xxxxx
Title:
Operating Manager
|
|||
Date: | January 10, 2007 | Date: | January 15, 2007 | |
|
|
14
EXHIBIT
A
MINIMUM/MAXIMUM
QUANTITIES
Unless
otherwise indicated below, the approximate monthly quantities of the Products
will be 1/12th of the annual Minimum and Maximum Quantities.
GASOLINE
Year
|
Minimum
|
Maximum
|
Year
|
Minimum
|
Maximum
|
Not
Applicable
|
|||||
DIESEL
Month/Year
|
Minimum
|
Maximum
|
Month/Year
|
Minimum
|
Maximum
|
Not
Applicable
|
|||||
15
ENVIRONMENTAL
REGULATION
SUPPLEMENT
Buyer
shall strictly comply with the regulations of the Environmental Protection
Agency ("EPA") promulgated as Part 80 - REGULATION OF FUELS AND FUEL ADDITIVES,
of Chapter I, Title 40, Code of Federal Regulations ("C.F.R."), and with any
applicable state regulations covering the Products, as amended from time to
time
(the "Regulations"), including, but not limited to, those obligations set forth
below. "Gasoline," “Diesel Fuel,” and other terms used in this exhibit have the
same meanings as defined in the Regulations. With respect to the Buyers’
Outlets, Seller and Buyer agree as follows:
(a)
Seller's
Responsibilities. Seller may:
(1)
Continuing
for the period as Seller, in Seller’s sole judgment, deems appropriate, take
periodic samples from the Product dispenser(s) at Buyer’s Outlets or from other
buyers supplied from the same Plant and test such samples to determine whether
the Products are in compliance with the Regulations. Any such sampling and
testing will not relieve Buyer of any obligation Buyer has under the Agreement
or by Law to sell, dispense and offer for sale only Products complying with
the
Regulations.
(2)
Give
prompt notice and details to Buyer (by telephone, followed by formal notice)
if
any test performed under (1) above, or through other circumstances known to
Seller, indicates that the Product inventory at a Buyer’s Outlet is not in
compliance with the Regulations. Seller shall cooperate with Buyer in any
further action taken that is necessary (including pump out) to restore the
availability of complying Products. The costs of any such further action,
including further sampling and testing, will be at Buyer's expense if the cause
of contamination was within Buyer's control.
(b)
Buyer's
Responsibilities.
(1)
No
unleaded Seller-branded gasoline may be mixed with any gasoline containing
lead
anti-knock agents. Unleaded Seller-branded gasoline may not be sold as any
unleaded Seller-branded gasoline that is mixed with lead anti-knock
agents.
(2)
No
leaded
gasoline (i.e. gasoline containing unlawful amounts of lead or phosphorus)
will
be introduced into any motor vehicle which is labeled "UNLEADED GASOLINE ONLY"
or which is equipped with a gasoline tank filler inlet which is designed for
the
introduction of unleaded gasoline only.
(3)
Gasoline
may not be sold, offered for sale, supplied, dispensed, offered for supply,
transported, or be caused to be transported, in which the Xxxx Vapor Pressure
exceeds the legally applicable standard or where the oxygen content is below
the
legally applicable standard. Buyer shall not sell, offer for sale, dispense,
supply, offer for supply, or transport reformulated gasoline which is below
the
legally applicable standard under the Law for the geographical area and time
period in which such gasoline is intended to be dispensed to motor
vehicles.
(4)
Diesel
fuel for use in motor vehicles may not be sold, offered for sale, supplied,
dispensed, offered for supply, transported, or be caused to be transported,
unless the diesel fuel (i) has a sulfur percentage, by weight, no greater than
0.05 percent, (ii) has a cetane index of at least 40, or a maximum aromatic
content of 35 volume percent, (iii) is free of visible evidence of the dye
1,4-dialkylamino-anthraquinone and (iv) is free of visible evidence of the
dye
solvent red 164 unless it is used in a manner that is tax-exempt as defined
under section 4082 of the Internal Revenue Code.
(5)
Gasoline
may not be sold, offered for sale, supplied, offered for supply, transported,
or
be caused to be transported, unless such gasoline is additized in accordance
with the requirements of 40 C.F.R. section 80.161, as may be amended from time
to time.
16
(6)
An
oversight compliance program must be established and enforced to assure that
Buyer and the operators of Buyer, and their respective employees or agents,
or
third parties (including the employees, agents or contractors of Seller) will
not cause, allow, or permit the gasoline or diesel to not be in compliance
with
the Regulations or become contaminated with any other gasoline or diesel fuel
product or foreign substance, at any time after delivery by or for Seller to
Buyer. The oversight program should include periodic sampling and testing of
the
Product inventory; securing the manhole covers, fill line caps and dispensers
to
avoid authorized entry or use; and supervising and instructing those employees
and others having access to the gasoline or diesel fuel system regarding proper
procedures to prevent the Products from becoming non-compliant with the
Regulations and to prevent contamination of the Products.
(7)
Buyer
shall give prompt notice and details to Seller (by telephone to Seller's office)
of (i) the EPA’s or state agency’s taking a sample of any Product at any Buyer’s
Outlet to test for compliance with the Regulations and (ii) receipt of any
test
results from any such sampling.
(8)
Buyer
shall give prompt notice and details to Seller (by telephone to Seller's office,
followed by formal notice) of any circumstance or occurrence at a Buyer's Outlet
which reasonably could cause Buyer's Products or dispensing equipment to not
be
in compliance with the Regulations. Upon discovery of any such condition the
Products may not be sold, dispensed, or offered for sale until Seller and Buyer
can mutually determine by sampling, testing, or other means whether the Product
is in compliance and, if found to be not in compliance, take such further action
as is necessary (including pump out) to restore the availability of a complying
Product. The sampling, testing, or further action will be at Buyer’s expense if
the cause of contamination was within the control of Buyer or the operator
of
Buyer’s Outlet.
(9)
If
the
Laws relating to UST systems or those set forth in this exhibit are not complied
with by Buyer or any operator of Buyer’s Outlets, based upon evidence
satisfactory to Seller, Seller may, in addition to other rights or remedies
available to Seller, suspend deliveries of the affected Products to
Buyer.
(10)
Buyer
certifies that Buyer has read, understands, and is fully informed of the
relevant Regulations pertaining to the Products, and Buyer shall fully comply
with the provisions thereof whether or not such other obligations are referred
to or restated in this Agreement.
17
EXHIBIT
B
RETAILER
(BUYER) INVENTORY CONTROL PROGRAM
This
is
to advise you of ARIZONA FUEL DISTRIBUTOR’S (hereafter referred to as Seller)
comprehensive environmental program and to establish current standards for
maintaining and monitoring retailer inventory control at your station and for
protecting you financially against product loss from tank leaks.
Product
Loss Implications
Federal,
state and local laws regarding water and ground pollution, as well as the
increased interest of the public and the news media in any type of pollution,
make it necessary that Seller and Buyer exert every reasonable effort to prevent
product leaks and spills at their facilities. Furthermore, the potential impact
of a product loss is staggering: businesses, homes, and schools could be shut
down; recreational areas can be affected; and drinking water might be
contaminated. In addition, fines and penalties can range up to $10,000 per
tank
per day and the costs for product recovery and claim settlements can run into
millions of dollars. The consequences should not be taken lightly by any of
us.
Seller's
Comprehensive Environmental Program
Accordingly,
Seller has developed and committed itself to a comprehensive environmental
control program aimed at minimizing the risk of product loss. The program
addresses equipment and installation standards, as well as on-going monitoring,
leak detection, record keeping and reporting requirements. Our efforts, however,
cannot solve this problem without your commitment to maintain methodical daily
inventory control, including daily
reconciliation of physical inventory readings with sales records
and
delivery receipts, and
immediate reporting of evidence or suspicion of leaks
so that
appropriate remedial action can be taken. You must also use one or a combination
of the following monthly
leak detection methods:
automatic tank gauging, monitoring of soil vapors or liquids in ground water;
interstitial monitoring (between tank and secondary barrier); or any other
method that meets the requirements of 40 C.F.R. S 280.43. Because of the grave
consequences that can result from an underground tank leak, we invite your
attention to and emphasize the importance of your contractual obligation in
this
matter and advise you of our intent to monitor the integrity of the underground
storage facilities by periodically performing a review of your inventory control
records and procedures, including, if necessary, a physical inventory. This
is
being done so that you may limit the effects of any tank leaks which might
be
discovered. However, your daily actions will be the backbone of an effective
leak prevention program.
For
your
protection you should fully comply with existing laws and regulations, you
must,
at a minimum, ensure that the following inventory control procedures are adhered
to.
1.
|
Check
the underground storage tanks daily for leakage and
water.
|
2.
|
Check
the underground storage system monthly for leakage by using one of
the
required leak detection methods mentioned
earlier.
|
3.
|
Observe
all motor fuel deliveries to ensure that there are no overspills
or that
spills are immediately detected and reported to
Seller.
|
4.
|
Maintain
regular inventory control records in accordance with Seller's
recommendations.
|
Procedures
for Product Deliveries
Your
maintenance of the daily and monthly inventory systems, as discussed above,
will
help protect you against any costly product losses and reduce the risks of
injury to persons and property, imposition of fines, etc., which can result
from
an undetected leak. In addition, you must ensure that the following procedures
are adhered to for all motor fuel deliveries:
1.
|
Gauge
tanks prior to deliveries to ensure that there is available storage
capacity for the amount of product to be
delivered.
|
2.
|
Take
and record stick readings just prior to and immediately after each
delivery. In the case of manifold tanks, sufficient time should
be allowed
for product equalization.
|
3.
|
Constantly
watch all deliveries of product to ensure that the tank can hold
the
product and that no overfill
results.
|
18
Procedures
to Follow Upon Discovery of Suspicion of Product Loss or Related
Claims
Upon
receiving any notification from you of any suspected or actual spill or product
loss, we will immediately assist you in investigating, correcting and/or
reporting the problem to the proper authorities. Furthermore, you should notify
us immediately of any claim or threatened claim related to such spill or product
loss, or of any newly discovered fact related to such spill or product loss.
Additionally, you should adhere to the following procedures.
1.
|
After
immediate telephone notification to us, promptly send written confirmation
notifying us of the product loss attributed to a delivery of
fuel.
|
2.
|
Make
your inventory control records immediately available for our inspection
and review.
|
3.
|
Confirm
that all fill caps are kept
locked.
|
4.
|
Check
that all pump/dispenser computer weights and measures seals are intact
and
repair any suspect seals.
|
5.
|
Refuse
further product deliveries until equipment is investigated and found
to be
safe to receive motor fuel.
|
Inspection/Retention
of Records
At
various intervals, you should inspect your records relating to daily and monthly
inventory controls and/or your leak detection system to verify your compliance
with your inventory control program. You are required by law to maintain at
the
premises, the following records:
·
|
all
leak detection performance and maintenance information, including
the last
year's worth (12 months) of monthly monitoring results, the most
recent
tightness test, and copies of manufacturers' performance claims and
maintenance schedules,
|
·
|
all
documents concerning tank system
repairs,
|
·
|
a
corrosion expert's analysis of the corrosion potential at your location
(if you do not use corrosion protection
equipment),
|
·
|
the
latest two inspections of all cathodic protection systems, and the
last
three 60-day inspections of impressed current systems,
and
|
·
|
all
information related to notices filed with federal or state agencies
concerning underground tanks and piping, including installation,
site
inspections and cleanup actions.
|
Your
records evidencing methodical daily inventory control, as discussed above,
must
be retained for possible inspection and review by governmental authorities
for
at least one year or longer.
Conclusion
You,
as
an independent business person, have the responsibility for the safe and lawful
operation of your service station. Careful attention to daily inventory control
and prompt action if a gasoline loss is suspected will insure quick repair,
avoidance of financial loss and the safety of our neighbors and the environment.
Please review the foregoing carefully so that you understand it, and if you
have
any questions, discuss them with us.
Please
acknowledge your receipt of and agreement to the terms of this program by
signing and dating in the space provided and returning one copy to us for our
records. The other copy provided should be retained for your files and future
reference.
Buyer | |||
/s/ Xxx Xxxxxxx | Signed: | January 10, 2007 | |
|
|
||
Xxx Xxxxxxx, Director of Operations |
19
ADDENDUM
TO RETAIL SALES AGREEMENT
This
Addendum is to that certain Agreement dated January 10, 2007, by and between
Arizona Fuel Distributors, X.XX. (the “Supplier) and Xxxxxx Travel Centers, Inc.
(the “Retailer”). The Supplier and Retailer (the “Parties) desire to amend the
Agreement on the terms and conditions set forth in this Addendum Agreement
(the
“Agreement).
1. |
The
following provision is hereby added to Item 2.f. “Seller is prohibited
from any entitlements if Retailer terminates the agreement given
that
Seller cannot provide adequate supply of
product.”
|
2. |
Adding
the cost calculation for the price of fuel, which is “the daily rack price
plus 1.5 cents per gallon”, hereby amends Item 3.a. of the
agreement.
|
3. |
Changing
the phase “…execute a new agreement or either
party
terminates…” hereby amends Item 4 of the
Agreement.
|
4. |
The
following provision is hereby added to Item 6.a. “Retailer may purchase
fuel if Seller cannot supply
product.”
|
5. |
Item
7.e. “reasonable” will be added prior to “customer
complaint.”
|
6. |
Item
7.i. “reasonable” will be added prior to “neat and
orderly…”
|
7. |
Item
19 the following provision is hereby added “Retailer will have the ability
to purchase product from another supplier, if Seller is unable or
unwilling to provide product.”
|
8. |
The
following provision is hereby added “unless caused or promoted by Seller’s
actions or policies,” to the first sentence of Item 20.a. after
“…permitted by law”.
|
9. |
Item
20.f. the clause “and Seller’s” will be added after
“Buyer’s”.
|
10. |
Item
22.b.6 will be null and void as Retailer is a public traded company
and
cannot be easily monitored.
|
11. |
Item
23.a. is hereby amended by changing the time frame to “21 consecutive
days” and adding the phrase” Unless non-operation is due to catastrophic
or unforeseen events not within Retailer’s making or
control.”
|
12. |
The
following provision is hereby added to Item 24.a.3iv. “There will be no
penalty to Retailer nor reimbursement of branding costs required
if
Seller’s loss of ability to offer
product.”
|
13. |
Item
24.a.3vi is hereby amended by changing the time frame to “21 consecutive
days” and adding the phrase” Unless non-operation is due to catastrophic
or unforeseen events not within Retailer’s making or
control.”
|
14. |
Item
25.b. of the Agreement is deleted in its
entirety.
|
15. |
Item
28.b. is hereby amended by adding “Written notice will be sent Certified
Mail to: Director of Operations, Xxxxxx Travel Centers, Inc., 000
Xxxxxxxxx Xxxx., XX; Xxxxxxxxxxx, XX
00000.
|
16. |
Item
28.c of the Agreement is deleted in its entirety and should refer
to
28.a.
|
17. |
The
following provision is hereby added to Item 30 “There will be no penalty
to Retailer nor reimbursement of branding costs required if Retailer
terminates Agreement for just cause, such as lack of performance
by Seller
repayment will not be required.”
|
20
IN
WITNESS WHEREOF Supplier and Retailer have hereunto subscribed their
names,
WITNESS: | Arizona Fuel Distributors, L.L.C. | ||
|
|
|
|
/s/ Xxxxx Xxxxx | By: | /s/ Xxxxx X. Xxxxx | |
|
|
||
Xxxxx
X. Xxxxx
Operating
Manager
(Supplier)
|
|||
Date Signed: | January 15, 2007 | ||
|
WITNESS: | Xxxxxx Travel Centers, Inc. | ||
|
|
|
|
/s/ Xxxxxxx X. Xxxxxxx | By: | /s/ Xxx Xxxxxxx | |
|
|
||
Xxx
Xxxxxxx
Director
of Operations
(Retailer)
|
|||
Date Signed: | January 10, 2007 | ||
|
21