Exhibit 10.38
AMENDMENT NO. 1
TO
MASTER SUPPLY CONTRACT
FOR
RESALE OF OILS AND GREASES
This AMENDMENT NO. 1 TO MASTER SUPPLY CONTRACT
FOR RESALE OF OILS AND GREASES (this “Amendment
No 1”) is made as of July 1, 2005 (the
“Effective Date of Amendment No 1”), between ExxonMobil
Oil Corporation (formerly known as Mobil Oil Corporation)
(“Seller”) with offices at 3225 Gallows Road, Fairfax,
VA 22037, and PETRO STOPPING CENTERS, L.P. (“Buyer”),
with offices at 6080 Surety Drive, El Paso, TX 79905. (Seller and
Buyer are sometimes referred to herein individually as a
“Party” and collectively as the
“Parties.”)
WHEREAS, Seller and Buyer have entered into that
certain Master Supply Contract for Resale of Oils and Greases (the
“Supply Contract”) dated as of July 23, 1999;
and
WHEREAS, Seller and Buyer wish to amend certain
terms, conditions, and provisions of the Supply Contract for the
mutual benefit of the Parties;
NOW THEREFORE, the Parties agree as
follows:
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1.
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Section 1,
“Products; Quantities,” is amended to read in its
entirety as follows:
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(a)
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(i) Seller agrees to sell
and Buyer agrees to purchase on the terms and conditions of this
Supply Contract, Seller’s lubricants for those Buyer-Operated
Truckstops located at the addresses set forth on the “List of
Locations/Buyer-Operated Truckstops” on Exhibit 1, attached
to and made part of this Supply Contract (referred to herein as the
“Buyer-Operated Truckstops”). Seller also agrees to
sell and Buyer agrees to use its commercially reasonable efforts to
cause to be purchased said lubricants by those Franchisee-Operated
Truckstops located at the addresses set forth on the “List of
Locations/Franchisee-Operated Truckstops” on Exhibit 1,
attached to and made part of this Supply Contract (referred to
herein as the “Franchisee-Operated Truckstops ”
and collectively with the Buyer-Operated Truckstops, the
“Truckstop Locations”). As Buyer adds new
Buyer-Operated Truckstops and Franchisee-Operated Truckstops to its
Truckstop chain, Exhibit 1 will be modified to include them.
“Buyer-Operated” locations include locations operated
by an affiliate of Buyer and branded PETRO. For
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1
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purposes herein,
“Seller’s lubricants” shall be those set forth on
Exhibit 2, as it may be amended by Seller from time to
time.
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(ii) Buyer agrees to purchase, or to
use its commercially reasonable efforts to cause to be purchased at
the Franchisee-Operated Truckstops, for the Truckstop Locations,
the Minimum Purchase Gallons of Seller’s lubricants set forth
in the table below for each remaining calendar year of the Initial
Term, as adjusted from time to time pursuant to paragraphs (b),
(c) and (d) below. The historical gallons requirements
for the years 1999 through 2004 are shown for convenient reference.
In the event that the Supply Contract is not extended into the
Extended Term, the Minimum Purchase Gallons for the year 2009 shall
be prorated, based on the actual number of days of Initial Term
remaining in calendar year 2009. The Parties understand and agree
that the Minimum Purchase Gallons for years after 2005 set forth
below are based on an annual growth rate of one percent
(1%) from the 2005 amount:
Minimum Purchase Gallons from PETRO
Corp
Stores and PETRO Franchisee Stores
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YEAR
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GALLONS
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1999
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1,250,000
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2000
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1,464,000
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2001
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1,545,000
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2002
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1,635,000
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2003
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1,725,000
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2004
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1,790,000
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2005
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2,080,000
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2006
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2,100,000
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2007
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2,121,000
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2008
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2,142,000
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2009
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2,163,000
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(iii) In the event that the Supply
Contract is extended into the Extended Term, then (I) the
Minimum Purchase Gallons for calendar year 2009 shall be 2,163,000,
as indicated in the chart above (or as adjusted pursuant to
paragraphs (b), (c) and/or (d) below), (II) the Minimum
Purchase Gallons for calendar years 2010 through 2014 shall equal
the Minimum Purchase Gallons for
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calendar year 2009, and (III) the
Minimum Purchase Gallons for the year 2014 shall be prorated, based
on the actual number of days of Initial Term remaining in calendar
year 2014.
(iv) Buyer understands and agrees
that except as set forth in the paragraph immediately below, and
except for adjustments made pursuant to paragraphs (b), (c), and/or
(d) below, the Minimum Purchase Gallons set forth in the table
above, and in paragraph (iii) immediately above, are firm
figures, and that if the total aggregate gallons required for the
five (5) year period 2005 through 2009, (as these amounts may
be adjusted in accordance with the terms and conditions of this
Amendment No 1) are not purchased by Buyer and Buyer’s
Franchisee-Operated Truckstops, then Buyer shall pay Seller,
promptly after the end of such period, One Dollar ($1.00) for each
gallon that such actual purchases for that period fall short of the
aggregate required gallons for that period. In the event that the
Supply Contract is extended into the Extended Term, and Buyer and
the Franchisee-Operated Truckstops do not purchase the total
aggregate gallons required for the five (5) year period of the
Extended Term, then Buyer shall pay Seller, promptly after the end
of such period, One Dollar ($1.00) for each gallon that
Buyer’s actual purchases for that period fall short of the
aggregate required gallons for that period.
(v) In the event that the price of
bulk Delvac 1300 Engine Oil to Buyer from Seller for any
consecutive sixty (60) day period in a calendar year is equal
to or greater than the higher of (i) the price of Shell
Rotella T plus ten (10) cents a gallon or (ii) the price
of Chevron Delo plus ten (10) cents a gallon, then
(i) the Minimum Purchase Gallons for that calendar year shall
be reduced by one percent (1%), (ii) the remaining calendar
years of the Initial Term shall be recalculated from such reduced
base using a one percent (1%) growth rate, and (iii) if
the Supply Contract is extended into the Extended Term, the
remaining calendar years of the Extended Term shall also be
recalculated accordingly, using a one percent (1%) growth
rate.
(vi) In addition to the purchase
requirements set forth above, Buyer shall purchase from Seller, in
aggregate for Buyer-Operated Truckstops, ninety-five percent
(95%) of all of its requirements of synthetic lubricants and
ninety-five percent (95%) of all of its requirements of all
lubricants other than diesel engine oils.
(vii) For purposes of this Supply
Contract, 8 pounds of grease equals 1 gallon of conventional oil
and 1 gallon of synthetic oil
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equals 4 gallons of conventional
oil. As used in this Supply Contract, the terms
“Seller’s product” and “Seller’s
lubricants” are used interchangeably.
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(b)
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For any of
calendar years 2006 through 2009, Minimum Purchase Gallons as set
forth in the table above shall be adjusted by adding to that
calendar year’s Minimum Purchase Gallons 30,000 gallons for
each new Buyer-Operated Truckstop Location and 20,000 gallons for
each new Franchisee-Operated Truckstop Location that comes on
stream in the prior calendar year, and subtracting any Permanent
Adjustments (as defined below) and any Temporary Adjustments (as
defined below). For purposes of this paragraph, “prior
year’s Minimum Purchase Gallons” means as adjusted by
application of this paragraph, when applicable.
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(c)
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A list of
Seller’s lubricants that may be purchased by Buyer (or caused
to be purchased by Buyer) is set forth on Exhibit 2, which is
attached to and made part of this Supply Contract. Seller’s
lubricants, grades, trademarks, and packaging shall be those
marketed and used by Seller at times of deliveries for similar
buyers in Buyer’s area, all as determined by Seller. Seller
may change the grade, specifications, characteristics, delivery
package, brand name, or other distinctive designation of any of
Seller’s products, and such products as so changed shall
remain subject to this Supply Contract. Buyer may purchase or cause
to be purchased any combination of lubricants listed on Exhibit 2
in order to comply with the purchase obligations set forth above.
If Seller deletes without replacing a product listed on Exhibit 2,
Buyer’s purchase obligations shall be adjusted pursuant to
Section (d) below.
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(d)
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A
“Permanent Adjustment” or a
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