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Exhibit 10.46
RETAILER PRODUCT SALES AGREEMENT
(RPSA)
(Shell Brand)
THIS AGREEMENT is between Bowlin Travel Centers,
Inc. ("Buyer") whose address is 150 Louisiana Blvd, Albuquerque, NM
87108 and Arizona Fuel Distributors, LLC ("Seller") whose address
is P.O. Box 63634 Phoenix, AZ 85082.
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: 2631 Johnson
Rd., Benson, AZ 85602
(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.
(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.
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17.
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COMPLIANCE WITH LAWS.
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(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, Reid
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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1 8. 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.
(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.
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(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 INDE
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