Document:

Exhibit 10.4

 

PMPA FRANCHISE AGREEMENT

 

BETWEEN

 

Lehigh Gas Wholesale LLC

as the “Distributor”, with an address of:

702 West Hamilton Street, Suite 203, Allentown, PA 18101

 

AND

 

Lehigh Gas — Ohio, LLC

as the “Franchise Dealer”, with an address of:

702 West Hamilton Street, Suite 203, Allentown, PA 18101

 

EFFECTIVE DATE: October 30, 2012

 

END DATE: October 30, 2027

 

“Marketing Premises”:

The Premises identified on the attached Exhibit A — LGO Site List

 

“Branded Supplier”:

The Branded Suppliers identified on the attached Exhibit A — LGO Site List

 

 

PMPA FRANCHISE AGREEMENT

 

This PMPA Franchise Agreement (“Agreement”) between the Distributor and Franchise Dealer, takes effect on the Effective Date (Distributor and Franchise Dealer are hereinafter collectively referred to as the “Parties”).  Capitalized Terms are as identified on the cover page of this Agreement or as otherwise defined herein.

 

ARTICLE I

GRANT

 

1.1                                   PMPA Franchise Relationship. By this Agreement, the Parties establish a “Franchise” and a “Franchise Relationship” as defined by the Petroleum Marketing Practices Act, 15 U.S.C. Sections 2801-2806 (the “PMPA”). Subject to the terms and conditions of this Agreement:

 

(a)                                  Distributor grants Franchise Dealer the right to use those Proprietary Marks specified by Distributor from time to time for use in connection with the sale of the Products (as defined in Section 2.1) at the Marketing Premises;

 

(b)                                 Franchise Dealer shall exclusively purchase the Products from Distributor for retail sale at the Marketing Premises; and

 

(c)                                  Distributor grants Franchise Dealer the right to sell Products at the Marketing Premises a retail motor-fuels business (the “Motor Fuels Business”).

 

1.2                                   Related Businesses. Subject to the terms and conditions of this Agreement,

 

(a)                                  Distributor grants Franchise Dealer the right to operate at the Motor Fuels Business at Marketing Premises as well as the additional related business(es) identified in Section 1.2(c) (the “Related Businesses”*), if any, and to use in connection with the Related Businesses the Proprietary Marks specified by Distributor from time to time for use in connection with the Related Businesses.  Franchise Dealer may operate a Related Business only if Franchise Dealer complies with Distributor’s requirements for that Related Business including those requirements contained in Article IV  and in the attachments referred to in Section 1.3. If Franchise Dealer fails to comply with the requirements for a Related Business, without limiting Distributor’s other rights or remedies under applicable Law or under this Agreement or a related or supplemental agreement including termination or non-renewal of this Agreement and the Franchise Relationship, Distributor may require Franchise Dealer to stop operating the Related Business at the Marketing Premises.

 

(b)                                 During the Term, Franchise Dealer shall operate the Related Businesses at the Marketing Premises and shall not operate any other businesses or activities at the Marketing Premises or change, delete or add a Related Business unless agreed in writing by the Parties. Nothing contained in this Section 1.2 may be construed as limiting or preventing Distributor from changing, deleting or adding:

 

(i)                                     a Related Business if this Franchise Agreement is terminated or non-renewed or upon the termination or non-renewal of any supplemental or related agreement,

(ii)                                  any Proprietary Marks used in connection with a Related Business, or

(iii)                               a Related Business as permitted under an agreement relating to that business.

 

(c)                                  The Related Businesses permitted under this Agreement consist only of those business identified on Exhibit A attached to this Agreement.

 

1.3                                   Related Business Attachments.  In operating Related Businesses, Franchise Dealer shall comply with Distributor’s requirements for that Related Business which when provided to Franchise Dealer and acknowledged by Franchise Dealer, in writing, shall be deemed incorporated into this Agreement.

 

1.4                                   No Exclusive Marketing Rights. This Agreement and the Franchise Relationship created by this Agreement do not give Franchise Dealer an exclusive right in any market or geographic area to sell the Products or conduct any of the Related Businesses. At Distributor’s sole discretion, it and its Affiliates may compete with Franchise Dealer by any means, including but not limited to by:

 

(a)                                  supplying or continuing to supply at locations of its choice Products and other motor fuels to others; or

 

(b)                                 directly selling motor fuels or operating retail service stations, convenience stores, automotive repair and other services, and other related businesses, at locations of its choice.

 

1.5                                   Term. The term of this Agreement shall begin on Effective Date identified on the cover page to this Agreement, and end on End Date identified on the cover page to this Agreement, unless terminated earlier under the provisions of

 

 

this Agreement (the “Term”). By writing furnished to Franchise Dealer, Distributor may grant temporary extensions of the Term for periods not exceeding 180 days for each extension. An extension is not to be construed as a renewal of this Agreement or of the Franchise Relationship.

 

1.6                                   No Franchise Dealer Right to Purchase.  No provision of this Agreement, including any provision of this Article I, shall be construed as granting Dealer a right to purchase any of the Marketing Premises.

 

1.7                                 Lease/Sublease for Marketing Premises.  The Franchise Dealer, as tenant, and certain affiliates of Distributor, as landlord, are parties to certain Lease/Sublease Agreements for the Marketing Premises (each a “Lease/Sublease” and collectively, the “Leases/Subleases”).  Franchise Dealer agrees that in the event that the Lease/Sublease for a particular Marketing Premises is terminated pursuant to the terms of such Lease/Sublease, then the Franchise Dealer and Distributor shall execute an amendment to this Agreement which shall delete the applicable Marketing Premises from Exhibit A and, except for those provisions of this Agreement that expressly survive the expiration or termination of this Agreement, such Marketing Premise shall thereafter be deemed severed from this Agreement.

 

ARTICLE II

PURCHASE  AND  DELIVERY  OF  PRODUCTS

 

2.1                                   Purchase Obligation.

 

(a)                                  Franchise Dealer shall use good-faith and best efforts to maximize the sale at the Marketing Premises of the Products. “Products” means motor fuel which is:

 

(i)                                     sold by Distributor to Franchise Dealer; and

 

(ii)                                  specified in the schedule entitled “Purchase Schedule” attached hereto as Exhibit B and incorporated into this Agreement (the “Purchase Schedule”).

 

(b)                                 Franchise Dealer agrees to buy and receive directly from Distributor all Products sold by Franchise Dealer from the Marketing Premises.

 

2.2                                   Prices. The price per gallon to be paid by Franchise Dealer shall be the Distributor’s price pursuant to the pricing methodology specified in the Purchase Schedule attached hereto as Exhibit B.  All prices charged by Seller are subject to the provisions of applicable law.

 

2.3                                   Terms of Payment. Franchise Dealer shall pay all amounts due Distributor under this Agreement in U.S. currency in the manner specified by Distributor; and pay for Products and services prior to delivery and provision of Products and services.

 

The method of payment specified by Distributor may include Distributor’ electronic settlement program, automated direct debit system, certified check, bank or other financial-institution check or any other method as Distributor may designate from time to time. Distributor may charge, and Franchise Dealer shall pay, fees as Distributor may from time to time specify and as are permitted by Law, for any late payments, for any checks or bank or other financial-institution debits that are not honored by Franchise Dealer’s bank or other financial institution or are otherwise returned or reversed by Franchise Dealer’s bank or financial institution. If, as a result of any dishonored checks or debits, Distributor may also charge, and Franchise Dealer shall pay, fees as Distributor may from time to time specify and as are permitted by Law, which fees are determined by Distributor to recoup its costs and expenses in administering Franchise Dealer’s payments under this Agreement.  Cash discounts, if any, do not apply to taxes, freight charges or container charges, if any. Distributor may withhold, setoff or recoup any amount due and owing Franchise Dealer or held by Distributor on behalf of Franchise Dealer under this Agreement, any related or supplemental agreement or any other agreement between the Parties from or against any amount owed by Franchise Dealer to Distributor and/or any of its related or affiliated entities. In the event there are additional business transactions between Franchise Dealer and Distributor and/or any of Franchise Dealer’s related or affiliated entities or individuals, including without limitation those relating to credit sales of products other than those identified herein or promissory notes, then such payments that are not clearly designated shall be applied by Distributor in the following order of priority:  (i) trade accounts, (ii) promissory notes, (iii) other amounts due under any other agreement or transactions.

 

If at any time the financial responsibility of Franchise Dealer shall be deemed impaired or unsatisfactory to Distributor, or should Franchise Dealer be in arrears in Franchise Dealer’s account(s) with Distributor, Distributor may require, as a condition of making further deliveries under this Agreement, payment by Franchise Dealer of all past due accounts and cash payment for all future deliveries.

 

2.4                                  Credit.  In its sole discretion, Distributor may extend credit to Franchise Dealer on terms and conditions as specified by Distributor, and Distributor may modify the terms and conditions of credit, or revoke credit, at any time or from time to time. If any agreement to provide credit is extended by Distributor to Franchise Dealer, such agreement shall be reflected in the Credit Provisions attached to this Agreement as Exhibit C.

 

 

2.5                                   Deliveries. Distributor will deliver Products to the Marketing Premises on terms and conditions as specified by Distributor in its sole discretion from time to time. Franchise Dealer shall take all actions necessary to facilitate the receipt of deliveries, including prompt removal of snow and ice from all fill cap areas. Distributor may, but is not obligated to, make single deliveries of Product of less than its standard full load delivery quantity as specified by Distributor from time to time. In that event, Distributor may in its sole discretion, charge Franchise Dealer delivery charges for its standard full load delivery quantity.  Franchise Dealer shall participate in and comply with Distributor’ Product delivery programs and policies in effect from time to time. If Franchise Dealer fails to comply with or participate in Distributor’ delivery program or policy, without limiting any other remedies available to Distributor, Franchise Dealer shall pay to Distributor a reasonable charge imposed in accordance with Distributor’ delivery policy or program to recover administrative or delivery costs resulting from Franchise Dealer’s noncompliance with the program or policy.  Franchise Dealer shall accept delivery of Product whether or not Franchise Dealer or anyone else representing Franchise Dealer is on the Marketing Premises to receive the delivery. Franchise Dealer shall pay for all Product delivered.  Passage of title and risk of loss shall be at the point of delivery.

 

2.6                                   Other Terms and Conditions of Sale. Franchise Dealer shall use the dispensing and storage facilities that are owned or provided by Distributor or its affiliates, bearing the Branded Supplier name or Proprietary Marks for the storage or sale of the Products. Franchise Dealer shall purchase and resell the Products, and use the Proprietary Marks, brand names and packaging as determined by Distributor and Branded Supplier. Distributor may, at any time, add new products or change the grade, specifications, characteristics or delivery package, brand name or other distinctive designation of any Product sold by Distributor under this Agreement, and the Products so added or changed are subject to this Agreement.  Distributor may discontinue the sale of any Product without affecting other rights or obligations of Distributor and Franchise Dealer under this Agreement.  As between Distributor and Franchise Dealer, and subject to all applicable law, only Distributor has the right to determine what Products will be offered at the Marketing Premises.

 

2.7                                 Distributor Product Certification. Distributor certifies that to the best of its ability and to the extent in its control, at the time of delivery, the Products delivered by it will comply with all fuel requirements under applicable Laws in effect at the time of delivery in the area of the Marketing Premises.

 

2.8                                   Franchise Dealer Product Control; Safeguards. Franchise Dealer shall exercise the highest degree of care and diligence in handling, storing, selling and using Products delivered to the Marketing Premises. Franchise Dealer shall not cause or allow any contamination, mixing or adulteration of any Products. Franchise Dealer shall not sell, or offer for sale, from the Marketing Premises, Products which are contaminated or adulterated or fail to meet the Distributor’s requirements. Distributor may refuse to make Product deliveries into any tank until, in Distributor’s judgment, such quality problems or any problems associated with the storage tank(s) and appurtenances thereto are corrected. Franchise Dealer also shall:

 

(a)                                  protect Product from adulteration, mixing or contamination by water or other substances;

 

(b)                                 comply with the provisions in the Leases/Subleases and all applicable environmental laws, regulations, rules, and standards;

 

(c)                                  inspect all storage tanks daily for water accumulation; where automated water readings are used, a manual stick reading shall be performed and recorded at least monthly to confirm the accuracy of the automated reading;

 

(d)                                 comply with any procedures developed by Branded Supplier and/or Distributor from time to time to safeguard the integrity of all Products sold from the Marketing Premises;

 

(e)                                  immediately notify Distributor by telephone and confirmed in writing:

 

(i)                                     of any suspicion that Product is contaminated, mixed or adulterated,

 

(ii)                                  if water exceeds 1 inch depth in any tank,

 

(iii)                             of any governmental testing or sampling or testing or sampling by any other person, of Products at the Marketing Premises, or

 

(iv)                              of any suspicion that any Product has been released to the environment from any tank, line or other source at the Marketing Premises;

 

(f)                                  if requested, provide Distributor with the results of any test of Product conducted by or for the Franchise Dealer and permit Distributor to conduct tests as Distributor may determine;

 

(g)                               upon any suspicion of adulteration, mixing, contamination of any Product, take such action as Distributor may direct;

 

(h)                                 where blending dispensers are utilized, use blending ratios as directed by Distributor; and

 

 

(i)                                     immediately stop sales of any product whose storage tank contains 1 inch of water or more.

 

2.9                                   Effect of Quality Violations; Samples. Franchise Dealer acknowledges that the sale of quality products the customer can trust is one of Franchise Dealer’s fundamental commitments and obligations under this Agreement.  Franchise Dealer’s failure to comply with the obligations under Section 2.8 constitutes a failure by Franchise Dealer to comply with a reasonable and materially significant provision of this Agreement and the Franchise Relationship.  Franchise Dealer shall permit Distributor and/or Branded Supplier, its employees, agents and contractors to enter the Marketing Premises at all reasonable times to obtain Product samples and review of all Franchise Dealer’s documents and records relating to compliance with Section 2.8.

 

2.10                             Product Quality or Quantity Claims. Distributor is not liable to Franchise Dealer for any defect in quality (including failure to meet the requirements under Section 2.7), or shortage in quantity, of any Products delivered, unless:

 

(a)                                  Franchise Dealer gives Distributor notice of the claim of quality defect or shortage in quantity or disputes or disagreements regarding the prices charged for the price of product within 96 hour after delivery; and

 

(b)                                 Franchise Dealer provides Distributor and all federal or state regulatory agencies, including their designated sub-contractors, with reasonable opportunity to inspect the Products and take test samples.

 

ARTICLE III

CONFIDENTIALITY

 

3.1                                 Confidentiality. Franchise Dealer acknowledges that Distributor and/or Branded Supplier may be disclosing and transmitting to it certain confidential and proprietary information of Seller and/or Branded Supplier, including without limitation guidelines, manuals, methods, policies, procedures, programs, software, firmware, specifications, standards (both operational and visual), strategies, and other related information (“Confidential Information”) in connection with Franchise Dealer’s operation of the Marketing Premises.  Except where otherwise required by law, Franchise Dealer shall:  (i) treat and maintain Confidential Information as confidential;(ii) use Confidential Information only for the operation of the Marketing Premises under this Agreement; and (iii) restrict disclosure of Confidential Information only to Franchise Dealer and its officers, directors employees, contractors or agents who are directly connected with the performance of work and require knowledge of the Confidential Information.  Franchise Dealer may not use, or cause or permit to be used by, or disclose to, or cause or permit to be disclosed to, third parties any Confidential Information for purposes other than operating the Marketing Premises under this Contract.  This Agreement, including all Exhibits hereto, and all terms contained herein, are also considered Confidential Information.

 

3.2                                 Failure to Comply/Survival.  Franchise Dealer acknowledges that any failure to comply with the requirements of this Article III. will cause Distributor and/or Branded Supplier irreparable injury.  The provisions of this Article III. shall survive the expiration or earlier termination of this Agreement and apply to all Confidential Information disclosed or transmitted to Franchise Dealer during the Franchise Relationship, whether prior to, during or after the expiration, termination, or nonrenewal of this Agreement, and justify termination of this Agreement in the sole discretion of Distributor.

 

ARTICLE IV

PROPRIETARY MARKS

 

4.1                                   Use of Proprietary Marks. In using the Proprietary Marks, Franchise Dealer shall:

 

(a)                                  Subject to the approval of Distributor and, where applicable, Branded Supplier, Distributor grants to Franchise Dealer the non-exclusive right to use the Proprietary Marks at the Marketing Premises in connection with the advertising, marketing, and resale of the petroleum products purchased from Distributor under this Agreement.  Franchise Dealer agrees that petroleum products of others will not be sold by Franchise Dealer under the Proprietary Marks.  Franchise Dealer understands and agrees that Branded Supplier retains the right, subject to requirements of law, to withdraw the right to use such Proprietary Marks from Franchise Dealer at any time.  Franchise Dealer understands, acknowledges, and agrees that Branded Supplier may promulgate from time to time standards, policies, guidelines, procedures, programs, requirements, specifications, strategies, and instructions (“Guidelines”) regarding image, appearance, station operations, promotions, advertising, the size and location of signs, the wearing of uniforms, and other matters related to the sale of motor fuels under the Proprietary Marks.  Franchise Dealer agrees that such Guidelines may be promulgated by any means, including without limitation Distributor’s and/or Branded Supplier marketing website, email or other electronic means.  Irrespective of the means by which such Guidelines are promulgated, Franchise Dealer shall comply fully with the Guidelines as they exist from time to time and cause its employees to do the same.  Failure on the part of Franchise Dealer or Franchise Dealer’s employees to comply fully with the requirements set forth in any such Guidelines shall be grounds for termination of this Agreement.

 

(b)                                 It is further expressly understood and agreed that Distributor shall have the right to substitute the trademarks,

 

 

service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, image standards and/or other brand identifications.  In the event of such substitution, all references to the Branded Products in this Agreement shall be deemed to refer to the substituted Branded Supplier and all references to the Proprietary Marks herein shall be deemed to refer to the trademarks, service marks, trade names, brand names, trade dress, logos, color patterns, color schemes, design schemes, insignia, image standards and/or other brand identifications of said substituted Branded Supplier.

 

(c)                                  Upon termination, nonrenewal, or expiration of this Agreement or prior thereto upon demand by Distributor, Franchise Dealer shall discontinue the posting, mounting, display or other use of said Proprietary Marks except only to the extent they appear as labels or identification of products manufactured or sold by Distributor and are still in the containers or packages designed or furnished by Distributor.  In the event that Franchise Dealer fails to do so to the satisfaction of Distributor, subject to applicable law, Distributor (i) shall have the right to enter the Marketing Premises and cause any and all signage, placards, and other displays bearing the Proprietary Marks to be removed from the Marketing Premises; and (ii) shall have the right to use any means necessary to remove, cover or obliterate the Proprietary Marks, including entry to the Marketing Premises, to do so.  In the event the Distributor takes any such action hereunder, Franchise Dealer shall bear all costs and expenses thereof, including without limitation the costs of removing, obliterating, or covering the Proprietary Marks, attorney fees, and other legal costs and expenses.  Franchise Dealer shall provide, upon Distributor’s request, a list of all signage bearing the Proprietary Marks at the Marketing Premises.  Under no circumstances will Franchise Dealer display signage bearing the Proprietary Marks at the Marketing Premises without the prior written approval of Distributor.

 

(d)                                 Franchise Dealer acknowledges and understands that it is not Branded Supplier’s licensee of the Proprietary Marks.  Franchise Dealer shall not shall not mix, commingle, blend, adulterate, or otherwise change the composition of any of the product(s) purchased hereunder and resold by Franchise Dealer under said Proprietary Marks with other products or substances in any manner.

 

(e)                                  Franchise Dealer hereby gives Distributor and Branded Supplier the right to enter the Marketing Premises and to examine at any time, and from time to time, the contents of Franchise Dealer’s tanks or containers in which said product(s) purchased hereunder are stored and to take samples therefrom and, if in the opinion of Distributor or Branded Supplier, any samples thus taken are not said Product(s) and in the condition in which delivered by Distributor to Franchise Dealer, then Distributor may at its option cancel and terminate this Agreement.

 

(f)                                    If there shall be posted, mounted, or otherwise displayed on or in connection with the Marketing Premises any Proprietary Marks or any other sign, poster, placard, plate, device or form of advertising matter whether or not received from Distributor, consisting in whole or in part of the name of Branded Supplier or Distributor owned or used by Branded Supplier or Distributor in its business, Franchise Dealer agrees at all times to display same in compliance with the standards, guidelines and instructions of Branded Supplier and Distributor and to discontinue the posting, mounting or display of same immediately upon Franchise Dealer’s ceasing to sell motor fuels (or other products of Branded Supplier) under the Proprietary Marks or, in any event, upon demand by Distributor or Branded Supplier.  Franchise Dealer shall take no action, or otherwise do anything or fail to do anything that will diminish, reduce, injure, dilute, or otherwise damage the value of the Proprietary Marks or other trademarks or identifications of Branded Supplier.

 

(g)                                 While using the Proprietary Marks, Franchise Dealer shall: (i) operate the Marketing Premises responsibly, with due care, prudence, good judgment, and skill; (ii)  not engage in dishonest, fraudulent, or scare-selling practices; (iii)  promote diligently the sale of motor fuel from the Marketing Premises; (iv)  perform all services in a good, workmanlike manner; (v)  keep the Marketing Premises, the driveways, parking spaces, and sidewalks neat, clean and in good repair; (vi) keep the yards, lawns, shrubs and other plantings neat and clean and free from weeds, debris, snow, ice, and rubbish; (vii) comply with all laws, ordinances, rules and regulations of any constituted public authority governing the use and occupancy of the Marketing Premises and the conduct of Franchise Dealer’s business at the Marketing Premises; (viii) ensure that no material in any form of a pornographic or sexually explicit nature are displayed, used, stored, offered, rented or sold at the Marketing Premises; and (ix) prohibit the consumption of alcoholic beverages and the sale and use of illegal drugs or drug paraphernalia at the Marketing Premises.

 

(h)                                 Franchise Dealer understands that Branded Supplier may require retail service station dealers operating under the Proprietary Marks and their employees to attend and complete Branded Supplier conducted or sponsored training programs from time to time.  Franchise Dealer shall attend and complete such training, or where Franchise Dealer is not an individual, cause its employees to attend and complete such training as may be required by Branded Supplier.  Distributor shall be under no obligation to bear any costs or expenses associated with the attendance of Franchise Dealer or Franchise Dealer’s employees at such training.

 

(i)                                     Franchise Dealer shall participate in Branded Supplier’s image evaluation program, “mystery” or shop audit program, or any other similar program, conducted or sponsored by Branded Supplier.  Franchise Dealer shall promptly take corrective action as required by Branded Supplier to bring the Marketing Premises into compliance with the Image and Operations Guidelines. Franchise Dealer understands and agrees that

 

 

Franchise Dealer’s failure to comply with any such program shall be a material breach of this Agreement.

 

(j)                                     Franchise Dealer understands and acknowledges that Distributor may install, or has installed, certain signage at the Marketing Premises for the purpose of displaying the Proprietary Marks.  Unless the parties hereto have agreed otherwise, Franchise Dealer agrees that said signage shall remain the property of Distributor and that said signage may not be removed, transferred, sold, or otherwise disposed of without the prior written consent of Distributor.

 

(k)                                  While using the Proprietary Marks at the Marketing Premises, Franchise Dealer shall conduct only such businesses or activities at the Marketing Premises that are approved in writing by Distributor.  Except as otherwise permitted, Franchise Dealer shall not use the Proprietary Marks or Branded Supplier’s name as part of Franchise Dealer’s corporate name or other name.

 

(l)                                     At no time may Franchise Dealer use any trademarks, trade dress, logo types, or names confusingly similar to the Proprietary Marks.

 

(m)                               Image and Trademark Standards; Promotion Programs. Franchise Dealer shall use and display sales, marketing and promotional materials provided by Distributor and/or Branded Supplier from time to time, in the manner and for the time periods designated by Distributor and/or Branded Supplier. Franchise Dealer shall ensure that all stationery, signage and other printed materials used in connection with the Businesses bear the Proprietary Marks in the form, colors, location and manner prescribed by Distributor and/or Branded Supplier. Subject to applicable Laws, Franchise Dealer shall participate fully in all Branded Supplier national promotional programs including point-of-purchase programs.

 

ARTICLE V

OPERATIONS

 

5.1                                   Operation of Marketing Premises. Franchise Dealer shall operate the Businesses in strict conformity with the methods, procedures, standards and specifications as Branded Supplier or Distributor may prescribe from time to time in writing. Without limiting the general requirements of the immediately preceding sentence, the specific requirements of this Article V. also apply.

 

5.2                                   Operating Hours.  Subject to applicable Laws, Franchise Dealer shall prominently and clearly post the operating hours at each Marketing Premises.  During the Term, operating hours may be modified only by written agreement of the Parties.  Upon any renewal of this Agreement, operating hours will be determined in accordance with Distributor’s hours of operation policy in effect at that time.

 

5.3                                   Use of Marketing Premises. Franchise Dealer shall:

 

(a)                                  use the Marketing Premises solely for the operation of the Motor-Fuels Business and any Related Businesses;

 

(b)                                keep the Motor-Fuels Business open and in normal operation for the periods specified in Section 5.2;

 

(c)                                  refrain from using, or permitting the use of, the Marketing Premises for any other purpose or activity at any time; and

 

(d)                                 not allow the use of the Marketing Premises in connection with any purpose prohibited by Law, covenant, condition or restriction, including but not limited to, those identified in this Agreement and the Exhibits attached hereto.

 

5.4                                   Maintenance Obligations. Subject to the provisions of the Leases/Subleases, Franchise Dealer shall undertake, at its expense, all maintenance and make all repairs, replacements, alterations and additions as may be required to maintain the Marketing Premises in good repair and condition including periodic cleaning, landscaping, repainting and repairs, replacing obsolete signs, equipment and fixtures, and complying with any other standards promulgated by Distributor or Branded Supplier from time to time.

 

5.5                                   Compliance with Laws; Covenants and Restrictions. Franchise Dealer shall operate and maintain the Marketing Premises and the Businesses in compliance with all applicable laws including those concerning the environment, hazardous substances or waste, toxic substances, right to know and occupational safety and health. Franchise Dealer shall comply with all applicable covenants, conditions or restrictions applicable to the operation and maintenance of the Marketing Premises and the Related Businesses.  Franchise Dealer shall also comply with the Americans with Disability Act and relevant or related state and local statutes.

 

5.6                                   Safety Procedures. Without limiting Franchise Dealer’s status and obligations as an independent businessperson, Franchise Dealer shall implement and maintain procedures for safe operation of the Marketing Premises and the Businesses including safe cash handling and employee training. Distributor and Franchise Dealer expressly

 

 

acknowledge that Franchise Dealer has sole responsibility for the security of all persons at the Marketing Premises including Franchise Dealer’s customers, contractors and employees at the Marketing Premises. Nothing contained in this Agreement is to be construed as:

 

(a)                                  an assumption by Distributor of any duty owed by Franchise Dealer to any person including any customer, contractor or employee of Franchise Dealer; or

 

(b)                                 giving Distributor the right to control Franchise Dealer’s provision of security measures employed by Franchise Dealer at the Marketing Premises.

 

5.7                                   Staffing. Franchise Dealer shall hire and maintain a competent, conscientious and trained staff and shall take all steps necessary to ensure that Franchise Dealer’s employees preserve good customer relations and comply with requirements for dress and appearance as Distributor and/or Branded Supplier may prescribe from time to time in writing.

 

5.8                                   Retail Credit and Debit Program. For so long as Distributor offers to Franchise Dealer the opportunity to participate in Branded Supplier’s or Distributor’ Retail Credit or Debit Program (“Program”), Franchise Dealer shall comply with the Program, as it may be amended by Branded Supplier or Distributor from time to time.

 

(a)                                  Franchise Dealer agrees to read and become familiar with all applicable credit card instruction manuals and to maintain them at the Marketing Premises for reference by the Franchise Dealer and its employees, contractors and agents.  If Franchise Dealer fails to comply with the instructions, and any related agreements, or other documents setting out Franchise Dealer’s obligations relating to any retail credit and debit program, including the requirement that Franchise Dealer take reasonable precautions to prevent sales to unauthorized persons, Distributor may, in addition to any other remedy that may be available to it including termination or non-renewal of this Agreement and the Franchise Relationship, take any one or more of the following actions as it deems necessary or appropriate in its sole discretion:

 

(i)                                     charge back to Franchise Dealer’s account the amount of any credit or debit transaction and any losses incurred by Distributor;

 

(ii)                                  on notice to Franchise Dealer, impose special terms and procedures on Franchise Dealer’s participation in any such Program; or

 

(iii)                             on notice to Franchise Dealer, exclude Franchise Dealer from participation in the Program.

 

(b)                                 Franchise Dealer is in default of this Agreement if:

 

(i)                                   Franchise Dealer fails to comply with the instructions, and any related agreements, or other documents setting out Franchise Dealer’s obligations relating to any such Program; or

 

(ii)                                  Franchise Dealer fails to pay promptly any charge to Franchise Dealer’s account resulting from non-compliance.

 

Franchise Dealer shall, upon Distributor’ request, immediately return to Distributor any manual credit card imprinter and electronic credit card point of sale terminal leased to Franchise Dealer by Distributor.

 

5.9                                   Technological and Communication Updates. Franchise Dealer acknowledges that the use of current technology and communications systems in the operation of the Businesses is of critical importance in meeting customer needs and preferences and adjusting to competitive conditions.  Franchise Dealer further acknowledges that technology and communications systems are expected to change over time requiring periodic addition, replacement or updating of equipment or systems used in the Businesses. Accordingly, Franchise Dealer shall:

 

(a)                                  as required by Branded Supplier and/or Distributor in Franchise Dealer’s marketing area, install and maintain in good operating condition, at Franchise Dealer’s expense:

 

(i)                                     a facsimile machine for sending and receiving written communications;

 

(ii)                                  equipment that allows access to the Internet, e-mail or other electronic-transmission or data-communications system designated by Branded Supplier and/or Distributor; and

 

(iii)                               dedicated telecommunication lines for tank monitoring or applicable communication as required by Distributor.

 

(b)                                 make other expenditures or investments as may be reasonably required in writing by Branded Supplier and/or Distributor from time to time to update equipment, technology and communications systems at the Marketing Premises including the addition, replacement or updating of point of purchase equipment, pump dispensing technology, credit and cash processing equipment and software. Distributor will provide

 

 

Franchise Dealer with reasonable notice specifying the required expenditures or investment and any specifications or requirements necessary to assure uniformity and compatibility.

 

In the event Franchise Dealer fails to install and/or maintain the technological and communication requirements as set forth in 5.9(a) above, Distributor shall have the right, but not the obligation, to install and/or maintain those deficit items and charge all associated costs back to the Franchise Dealer.  In particular, it is critical for Franchise Dealer to note that the obligation to maintain the dedicated telecommunications line for tank monitoring (as specified in 5.9(a)(iii)), is for the purpose of maintaining compliance with applicable tank monitoring regulations.  In the event Franchise Dealer fails to maintain such communications, any fines or penalties assessed as a result, shall be borne by Franchise Dealer.  Notwithstanding the requirement for Franchise Dealer to install and maintain in good operating condition such telecommunication lines, neither the presence nor absence of such telecommunication lines shall relieve Franchise Dealer from its obligations to satisfy all necessary tank monitoring data and records in accordance with applicable Laws.

 

5.10                             Inspection. At all reasonable times, Franchise Dealer shall permit Distributor and/or Branded Supplier, their respective affiliates, contractors, employees and agents to enter and inspect the Marketing Premises, including any and all records relating to the Motor-Fuels Business and/or Related Businesses (if any)or required to be maintained under this Agreement, to determine compliance with this Agreement and applicable laws. Franchise Dealer shall cooperate fully with Distributor and/or Branded Supplier and its contractors, employees and agents in conducting any inspection and shall render assistance as may be reasonably requested. Upon notice from Distributor of any deficiencies detected in an inspection, Franchise Dealer promptly shall take such steps as may be necessary to correct the deficiencies including the temporary closing of the Marketing Premises if so directed by Distributor.

 

5.11                             Pricing. Franchise Dealer shall determine its own retail prices, pricing policies and discounting policies in accordance with applicable Laws. Distributor may, from time to time, communicate with Franchise Dealer about prices and periodically may counsel Franchise Dealer on retail pricing. Franchise Dealer is not required to accept any pricing suggestions of Distributor and shall not rely on Distributor’s suggestions, nor is Distributor obligated to provide such counseling.

 

5.12                             Maintain Inventory. Franchise Dealer shall maintain an inventory of Products sufficient to serve customers during the hours specified in Section 5.2, subject to Section 2.5.

 

ARTICLE VI

INSURANCE

 

6.1                                   Types of Insurance.

 

During the time this Agreement is in effect, in addition to any other insurance or surety bonding required by applicable laws, Franchise Dealer will carry and maintain in force with companies satisfactory to Distributor, solely at Franchise Dealer’s expense, insurance satisfactory to Distributor as follows for each Marketing Premises:

 

(a)                                  Comprehensive/Commercial General Liability insurance or Garage Liability insurance including, but not limited to, coverage for the sale of motor fuel, food preparation and service (if applicable), operation of retail motor fuel stores, premises operations, products, contractual liabilities, including, without limitation, Franchise Dealer’s contractual indemnity liability under this agreement, with a minimum combined single limit of $1,000,000 providing coverage for injury, death or property damage resulting from each occurrence.

 

(b)                                 In the event Franchise Dealer has alcoholic beverages for sale at any location, a minimum limit of $1,000,000 shall be maintained covering liabilities arising out of the dispensing or selling of alcoholic beverages including, without limitation, any liabilities imposed by a dram shop or alcoholic beverage control act.

 

(c)                                  Business Auto Liability insurance coverage for operation of vehicles hired, owned or non-owned with a minimum combined single limit of $1,000,000 providing coverage for injury, death or property damage resulting from each occurrence.

 

(d)                                 Garage keepers’ Legal Liability insurance (if Marketing Premises includes service bays) including, but not limited to, coverage for fire, theft, riot, vandalism, and collision with limits of at least $50,000 for each occurrence.

 

(e)                                  Fire Legal Liability Insurance for an amount of at least the full replacement cost of fixtures and equipment on Marketing Premises.

 

(f)                                    Workers Compensation and Employers Liability insurance or similar social insurance, for all Franchise Dealers employees engaged in performing services where required by laws which may be applicable to Franchise Dealers employees with a waiver of all rights of subrogation and/or contribution against Distributor where such waiver is permitted by law.

 

 

(g)                                 Environmental impairment insurance coverage with minimum of $1,000,000 on a continuous and uninterrupted basis insuring Franchise Dealer for environmental legal liabilities arising out of, or in any manner associated with, related to, Franchise Dealers use of, and/or presence on the Marketing Premises if any storage tanks are installed on Marketing Premises, in whole or in part, by anyone other than Distributor or a contractor hired by Distributor.

 

(h)                                 Distributor periodically may reasonably require Franchise Dealer to carry additional types of insurance coverages and amounts, including modifications to existing insurance under this Article.

 

(i)                                     Each policy of insurance described in this Section shall cover Distributor, the deeded property owner of each Marketing Premises and their respective parents, affiliates, lenders and successors and assigns, as additional insured (except Workers Compensation and Employers Liability), by endorsement if required by Distributor, and shall be primary and non-contributory as to all other policies which may provide coverage and, in the case of all liability policies, be written on an occurrence basis.  Franchise Dealer waives their right of subrogation on all policies where applicable.  If any insurance maintained hereunder is maintained under a “blanket policy”, such policy shall contain an endorsement providing that coverage limits required hereunder are not subject to reduction or impairment by claims or losses at other locations.

 

6.2                                   Additional Insurance Obligations — Leases/Subleases. Additional insurance requirements shall apply as specified in the Leases/Subleases.

 

6.3                                   Evidence of Insurance. Prior to the date of this Agreement and any time upon request by Distributor, Franchise Dealer shall have its insurance carrier(s) furnish to Distributor and other persons as directed by Distributor certified copies of the required insurance policies, and/or certificates of insurance specifying the types and amounts of coverage in effect, expiration dates, confirmation that each policy complies with the requirements of this Article XI specifying that no insurance shall be cancelled or materially changed during the time this Agreement is in effect without twenty (20) calendar days prior written notice to Distributor and such other persons as Distributor may designate.  In the event Franchise Dealer fails to maintain any policy of insurance required under this Agreement in a form and in amounts required, Distributor shall have the right, but not the obligation, at any time to purchase any of such policies on behalf of Franchise Dealer and at Franchise Dealer’s sole expense, which cost shall be paid by Franchise Dealer immediately upon demand.

 

6.4                                 Franchise Dealer acknowledges that any failure to comply with the requirements of this Article VI. will cause Distributor and/or Branded Supplier irreparable injury and justify termination of this Agreement in the sole discretion of Distributor.

 

ARTICLE VII

TRANSFER OF INTEREST; SURVIVORSHIP

 

7.1                                   Assignment by Franchise Dealer.  Franchise Dealer’s interest in this Agreement shall not be transferred or assigned by Franchise Dealer in whole or in part, directly or indirectly, without the prior written consent of Distributor, unless as otherwise required by law.  Such consent shall be in the sole discretion of Distributor.  As a condition for Distributor’s consent to the transfer or assignment of Franchise Dealer’s interests under this Agreement, Distributor shall have the right, to the extent permissible by law, to require the proposed transferee or assignee to execute a mutual termination agreement terminating this Agreement and enter into a trial franchise motor fuel supply agreement, as the term “trial franchise” is defined in the Petroleum Marketing Practices Act, 15 U.S.C. §2801, et seq. (the “PMPA”).  Nothing contained in the foregoing sentence shall limit Distributor’s right to impose other conditions or requirements for its consent under this paragraph.

 

In the event Distributor, in its sole discretion, grants written consent to the transfer or assignment of Franchise Dealer’s interests under this Agreement, Franchise Dealer shall pay a fee to Distributor for the administrative costs of such transfer or assignment in the amount of $5,000 for an individual station transfer or assignment or $10,000 for a multi-station transfer or assignment.  Such fee shall accompany the written request from Franchise Dealer to Distributor for the transfer or assignment and shall only be refunded in the event Distributor does not grant consent.

 

7.2                                   Assignment by Distributor.  Distributor may assign this Agreement in whole or in part upon ten (10) days’ prior written notice to Franchise Dealer.  In the event of an assignment by Distributor, Franchise Dealer acknowledges that:

 

(a)                              an assignment or delegation by Distributor may have an impact upon Franchise Dealer’s rights and obligations under this Agreement to the extent that an assignee or delegatee has policies or programs that differ from Distributor’s policies and programs;

 

(b)                             this impact is contemplated by the Parties under this Agreement; and

 

(c)                            Franchise Dealer and any other person with an interest in Franchise Dealer hereby waive any claim for constructive termination or claim for damages.

 

 

7.3                                   Right of First Refusal — Transfer of Interest.

 

(a)                                  In connection with the proposed transfer of an interest under Section 7.1, Distributor shall have the right to meet the offer of any transferee which and acquire the Interest on the same terms and conditions as those contained in the transferee’s offer.  If Franchise Dealer owns property or businesses unrelated to this Agreement, the Franchise Dealer shall offer to sell to Distributor the property (including any interest in the Marketing Premises) equal to the consideration in the proposed transferee’s offer (the “Covered Interests”).

 

(b)                                 No later than 90 days before the proposed sale or closing date, Franchise Dealer must furnish to Distributor a written offer to sell Distributor the Covered Interests in accordance with Section 7.3(a) accompanied by a copy of the proposed transferee’s offer, which will be a binding offer (the “Offer”) by the Franchise Dealer to Distributor on the terms and conditions of the Offer. The Offer must be bona fide, in writing and signed by all parties thereto and contain all terms and conditions of the proposed transfer. Franchise Dealer also shall furnish Distributor with such additional information relating to the Interest, the proposed Transfer, the proposed transferee, the Interest and the Covered Interests, as Distributor may request in order to evaluate the offer or review the proposed Transfer, and ensure compliance with this Article VIII.

 

(c)                                  Upon receipt of the Offer and all requested information, Distributor will have 60 days (unless otherwise required by law) within which to evaluate the Offer, and to advise Franchise Dealer in writing whether or not Distributor exercises its right to acquire the Interest or the Covered Interests, whichever is applicable. An Offer that includes the exchange of other property interests for any Interest or Covered Interests may be accepted by Distributor by substituting for that other property payment of an amount equal to the fair-market value of that other property but not more than the value attributed to that other property in the Offer. Franchise Dealer shall provide Distributor with full access to Franchise Dealer’s books and records if the Offer includes an exchange of property; or is an offer by Franchise Dealer to sell the Covered Interests at fair-market value.

 

(d)                                 If Distributor chooses to exercise its right of first refusal under this Article VII, closing and the effective date of any termination of this Agreement will be the proposed sale or closing date:

 

(i)                                     specified in the proposed transferee’s offer if the Offer is that of a proposed transferee; or

 

(ii)                                  as agreed by Distributor and Franchise Dealer if the Offer is an offer by Franchise Dealer to sell the Covered Interests. The closing will take place at the location designated by Distributor.  At closing, Franchise Dealer shall deliver to Distributor documentation satisfactory to Distributor conveying good, marketable and clear title to all property, subject only to reasonable liens and conditions expressly provided in the Offer. If the Interest or Covered Interests subject to the offer includes Franchise Dealer’s Interests in this Agreement and the Franchise Relationship, this Agreement and all related and supplemental Agreements will terminate on the sale or closing date, subject to any obligations or liability of Franchise Dealer to Distributor accrued prior to termination and/or which survive termination, and Franchise Dealer shall sign and deliver to Distributor, at least 7 business days prior to the sale or closing date, a binding mutual termination agreement in form and substance acceptable to Distributor.

 

(e)                                  If Distributor does not exercise its right under this Section 7.3 with respect to any Interest, Distributor shall:

 

(i)                                     notify Franchise Dealer in writing of its decision;

 

(ii)                                  review the proposed Transfer in accordance with Section 7.1, above; and

 

(iii)                               notify Franchise Dealer as to whether Distributor consents to the Transfer and as to which conditions will apply to the Transfer.

 

(f)                                    If Distributor notifies Franchise Dealer that Distributor consents to the Transfer, the Franchise Dealer may proceed with the Transfer of the Interest only in accordance with the terms and conditions in the proposed transferee’s offer constituting, or giving rise to, the Offer. Franchise Dealer shall provide Distributor with documentation satisfactory to Distributor that the Transfer was completed in accordance with the proposed transferee’s offer.

 

(g)                                 Distributor’ rights under this Article VII will apply to each offer by a transferee to Transfer an Interest and include any material renegotiations or material modifications of all or any part of an offer. Each offer (including any material renegotiation or modification of any offer) is a separate offer entitling Distributor to its rights under this Section 7.3.

 

(h)                                 Except as otherwise provided by law, if any transferee fails to meet any requirements or conditions under Distributor’s then-current requirements for new franchise dealers, Distributor, in addition to withholding its consent to the Transfer and in lieu of exercising its rights under Section 7.1 above, may, consistent with

 

 

applicable Laws, substitute another transferee who meets those requirements and conditions and who accepts and is able to meet the terms and conditions of the Offer.

 

(i)                                     Distributor’s failure to exercise its purchase rights under this Section 7.3 on one or more occasions:

 

(i)                                     does not affect Distributor’s rights under this Section 7.3 on other occasions whether or not involving the same Interest; and

 

(ii)                                  does not constitute Distributor’s consent to the Transfer of an Interest.

 

ARTICLE VIII

DEFAULT  AND TERMINATION

 

8.1                                   Termination of Agreement and Franchise Relationship. This Agreement shall terminate upon expiration of the Term of this Agreement.

 

(a)                                  This Agreement may be terminated by Distributor:

 

(i)                                     if Franchise Dealer makes any materially false or misleading statement or representation which induces Distributor to enter into this Agreement, or which is relevant to the relationship between the parties hereto;

 

(ii)                                  if Franchise Dealer becomes insolvent or commits an act of bankruptcy or takes advantage of any law for the benefit of debtors or Franchise Dealer’s creditors, or if a receiver is appointed for Franchise Dealer;

 

(iii)                               if possession of the business location(s) of the Franchise Dealer is interrupted by act of any government or agency thereof;

 

(iv)                              if Franchise Dealer fails to pay in a timely manner any sums when due hereunder upon Franchise Dealer’s failure to pay any amount when and as due, and no forbearance, course of dealing, or prior payment shall affect these rights of termination;

 

(v)                                 if Franchise Dealer defaults in any of its obligations under this Agreement;

 

(vi)                              if Franchise Dealer is declared incompetent to manage his property or affairs by any court, or if Franchise Dealer is mentally or physically disabled for three (3) months or more to the extent that Franchise Dealer is unable to provide for the continued proper operation of the business of the Franchise Dealer;

 

(vii)                           under the circumstances described as causes for termination by Distributor elsewhere in this Agreement;

 

(viii)                        if Franchise Dealer engages in fraud or criminal misconduct relevant to the operation of the business, and/or Related Business, of the Franchise Dealer;

 

(ix)                                if Franchise Dealer is convicted of a felony or of misdemeanor involving fraud, moral turpitude or commercial dishonesty, whether or not the crime arose from the operation of the business of the Franchise Dealer;

 

(x)                                   if Franchise Dealer fails to operate the Marketing Premises for seven (7) consecutive days, or any shorter period of time which, taking into account the facts and circumstances, amounts to an unreasonable period of time not to operate;

 

(xi)                                if Franchise Dealer fails to maintain an inventory of any one or more grades of motor fuel covered by this Agreement in an amount adequate to meet customer demand;

 

(xii)                             if there occurs any other circumstance under which termination of a franchise is permitted under the provisions of the Petroleum Marketing Practices Act (15 U.S.C. 2802);

 

(xiii)                          upon assignment of the Agreement by Franchise Dealer contrary to the terms of this Agreement; or

 

(xiv)                         if Franchise Dealer is an individual and Franchise Dealer dies; or if Franchise Dealer is a corporation and such corporation winds up its business or dissolves.

 

(b)                                 Upon loss of Distributor’s right to grant the use of Branded Supplier’s Proprietary Marks, Distributor may terminate this Agreement. Distributor will not be liable for the consequences of such loss unless they result from an act by Distributor taken in bad faith for the purpose of causing the loss of Distributor’s right to grant the right

 

 

to use the Proprietary Marks.

 

(c)                                  If Franchise Dealer fails to comply with the terms of any of the Leases/Subleases, upon the expiration of any applicable notice and cure periods thereunder, such failure shall be deemed a default under this Agreement.

 

(d)                                 Franchise Dealer agrees not to engage in or permit any illegal or improper act or conduct, on or about the Premises, which act or conduct is detrimental to Distributor or any member of the public.  If Franchise Dealer engages in any such illegal act or conduct, this Agreement may be terminated without further notice.

 

(e)                                  Any termination of this Agreement shall be accompanied by such notice from Distributor as may be required by law.

 

(f)                                    Upon the expiration of the Term hereof or upon termination hereof, Distributor shall have the right, at its option, to enter upon the Premises and to remove, paint out, or obliterate any signs, symbols or colors on said Premises or on the buildings or equipment thereof which in Distributor’s opinion would lead a patron to believe that Distributor’s products are being offered for sale at the Premises.

 

(g)                                 Termination of this Agreement by either party for any reason shall not relieve the parties of any obligation theretofore accrued under this Agreement.

 

Upon any termination or non-renewal, Franchise Dealer shall comply with the provisions of this Agreement and with Distributor’s normal post-termination procedures as furnished in writing to Franchise Dealer from time to time.

 

8.2                                   Right of Termination Due to Governmental Action. Either Party may terminate this Agreement upon not less than 180 days’ prior written notice to the other Party if any federal, state or local governmental action results in  the adoption or imposition of laws that:

 

(a)                                  significantly alter the reasonable expectations of the Parties at the time of entering into this Agreement including the expectation that Franchise Dealer will be obligated to pay rent as specified in each Lease/Sublease or purchase the Products from Distributor in accordance with Section 2.1;

 

(b)                                 result in the imposition of an obligation upon Distributor to install or construct equipment, facilities or improvements on the Marketing Premises and, in Distributor’s sole judgment, the cost of such installation would be uneconomical to Distributor; or

 

(c)                                  modify in any way the present relationship of Distributor’s and/or Branded Supplier’s exploration, production, supply, transportation, refining or marketing functions.

 

8.3                                   Accrued Rights. Any termination or non-renewal is subject to Distributor’s rights which have accrued prior to the termination or non-renewal.

 

8.4                                   Remedies of Distributor. If Franchise Dealer defaults on any obligation contained in this Agreement or any related or supplemental agreement, Distributor may, but is not obligated to, exercise any or all of it rights allowable by law, including but not limited to the following remedies, whether or not Distributor exercises its right to terminate or non-renew:

 

(a)                                  suspend all deliveries of Products to Franchise Dealer until the default is corrected or remedied; and/or

 

(b)                                 apply any sums or security furnished by Franchise Dealer to Distributor under this Agreement or any related or supplemental agreement to the payment of any indebtedness. Franchise Dealer immediately shall provide additional security, as directed by Distributor, to replace the sums or security applied by Distributor.

 

Distributor’s rights and remedies under this Agreement are distinct, separate and cumulative, and no one of them, whether or not exercised by Distributor, is an exclusion of any others under this Agreement or any related or supplemental agreement, or at law or in equity.

 

ARTICLE IX

OBLIGATIONS  UPON  TERMINATION  OR  EXPIRATION

 

9.1                                   Termination of Business Operation. Upon the termination or non-renewal of this Agreement, the Franchise and the Franchise Relationship, Franchise Dealer’s rights under this Agreement and all related and supplemental agreements terminate, and Franchise Dealer shall stop all operation of the Motor-Fuels Business and the Related Businesses and all use of the Proprietary Marks. In particular, and without limiting the general requirements of the preceding provisions of this Section 9.1,  Franchise Dealer shall:

 

(a)                                  Immediately stop operating the Motor-Fuels Business and the Related Businesses and at no time after

 

 

termination or non-renewal represent Franchise Dealer, directly or indirectly, as a current or former franchise dealer of Distributor or Branded Supplier.

 

(b)                                 Immediately and permanently stop using, in any manner whatsoever, any Confidential Information, Branded Supplier’s name and all signs, advertising, materials, displays, stationery and forms containing the Proprietary Marks.

 

(c)                                  Promptly pay:

 

(i)                                     all sums owing to Distributor and its Affiliates and to all financial institutions and other persons that have loaned money or leased property to Franchise Dealer in connection with an arrangement under which Distributor or its Affiliate furnished any consideration including any inducement, guarantee or credit enhancement. Without limiting the preceding general requirements of this Section 9.1(c), Franchise Dealer shall pay all the outstanding principal balance and all interest and other charges under Distributor-backed loan programs, direct Distributor loans and Distributor reimbursement or amortization agreements; and

 

(ii)                                  all indebtedness to contractors or vendors that have furnished goods or services to the Marketing Premises.

 

(d)                                 Immediately return to Distributor all Branded Supplier signs and other personal property of Distributor. Franchise Dealer grants and shall cause any other person in possession of the Marketing Premises to grant to Distributor a non-revocable license to enter the Marketing Premises to remove Branded Supplier signs and property. Franchise Dealer shall bear all removal, site-restoration and transportation costs relating to the removal of Branded Supplier signs and equipment under this Section 10.1(d).

 

9.2                                 Post-Termination Obligations.  Franchise Dealer shall continue to be responsible after termination or non-renewal of this Agreement for any obligations under this Agreement which by their nature involve performance after termination, including but not limited to any payment and indemnification obligations.

 

ARTICLE X

TAXES,  PERMITS, INDEBTEDNESS

 

10.1                           Taxes and Fees. It is agreed that any duty, tax, fee or other charge which Distributor may be required to collect or pay under any municipal, state, federal or other laws now in effect or hereafter enacted with respect to the production, manufacture, inspection, transportation, storage, sale, delivery or use of the Product(s) covered by this Agreement shall be added to the prices to be paid by Franchise Dealer for product(s) purchased hereunder.

 

10.2                             Indebtedness Dispute. Notwithstanding any dispute by Franchise Dealer of its liability to pay any governmental charges under Section 10.1, Franchise Dealer shall not permit a tax sale, foreclosure or seizure by levy or execution or similar writ or warrant, or any attachment, lien or encumbrance by a creditor or governmental authority, of or on the Marketing Premises, any Related Business or any improvements, equipment or fixtures on the Marketing Premises.

 

10.3                            Permits and Licenses. Franchise Dealer shall timely obtain and comply with all permits, certificates or licenses necessary for the full and proper conduct of the Motor-Fuels Businesses and any Related Businesses, including licenses to do business, fictitious name registration, underground storage tank permits and licenses, sales tax permits and fire clearances. Franchise Dealer shall pay all fees or charges relating to these permits, certificates and licenses.

 

11.4                             Notices. Franchise Dealer shall notify Distributor in writing within 5 days of:

 

(a)                                  the commencement of any action, suit or proceeding,

 

(b)                                 the issuance of any writ, injunction or award or of a decree of any court, agency, or other governmental authority, or

 

(c)                                  any indebtedness, event or occurrence, which may adversely affect the operation or financial condition of the Businesses, the Franchise Dealer or the Marketing Premises.

 

ARTICLE XI

INDEPENDENT  CONTRACTOR

 

11.1                             Relationship of the Parties. The relationship of the Parties is as follows:

 

(a)                                  neither Party has a fiduciary relationship with the other;

 

 

(b)                                 Franchise Dealer is an independent business person with responsibility for and control over the manner and means of the day-to-day operations of the Businesses including Product deliveries, Product leak or release detection, Product leak or release reporting and compliance with all Laws;

 

(c)                                  neither Party is an agent, legal representative, subsidiary, joint venturer, partner, employee or servant of the other for any purpose; and

 

(d)                                 Franchise Dealer has exclusive control and direction over the duties, supervision, compensation, hiring and firing of its employees, contractors and agents.

 

11.2                             Public Notification. Franchise Dealer shall represent itself to the public as an independent business person operating the Motor-Fuels Business under franchise from Distributor.  Franchise Dealer shall take necessary action to effect this representation, including placing a notice of Franchise Dealer’s status in a conspicuous place on the Marketing Premises and on stationery and written or graphic materials.

 

11.3                             Other Franchise Dealer Obligations. Franchise Dealer shall not:

 

(a)                                make any contract, agreement, warranty or representation on behalf of Distributor or Branded Supplier or their Affiliates;

 

(b)          incur any debt or obligation in the name of Distributor or Branded Supplier or their Affiliates; or

 

(c)                                  by act or omission, cause Distributor or Branded Supplier or their affiliates to be liable, or be found to have assumed liability, for any activities of Franchise Dealer at the Marketing Premises or relating to the Businesses including any claim or judgment arising from Franchise Dealer’s act or omission.

 

ARTICLE XII

INDEMNIFICATION

 

12.1                             Definition of Losses. “Losses” includes all, compensatory, exemplary or punitive damages, fines, penalties, charges, costs, lost profits, legal fees and costs, accountants’ and expert witness fees, expenses (including expenses for environmental personnel), settlement amounts, judgments, damage to Distributor’s reputation and goodwill and any other amounts incurred in connection with the matters described.

 

12.2                             Indemnity. Franchise Dealer assumes the risk of and sole responsibility for and agrees to defend (with counsel acceptable to Distributor, unless such defense, but not Distributor’s defense costs, is waived by Distributor), indemnify, release and hold harmless Distributor, its affiliates and each of their officers, employees, agents, successors, and assigns (altogether “Indemnitees”), from and against any and all of the following (each a “Proceeding”):  expenses, costs (including, without limitation, legal fees and costs and other professional fees), penalties, fines (without regard to the amount of such fines), liabilities, claims, demands and causes of action, at law or in equity (including, without limitation, any arising out of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), the Resource Conservation and Recovery Act (RCRA), the Clean Air Act, or any other laws), for violations of law or injuries, death, loss, or damage of any kind or character to person, property, or natural resources, by whomever suffered or asserted including Franchise Dealer, its agents, officers, directors, servants, contractors, partners, affiliates, shareholders, employees, invitees, licensees, and/or trespassers, owner or representative of Franchise Dealer (“Related Party”) resulting from, related to, or arising out of the actual or alleged:

 

(a)                                  violation or asserted violation, by Franchise Dealer or any Related Party of any Laws;

 

(b)                                 Franchise Dealer’s breach or alleged breach of any contract;

 

(c)                                  libel, slander or any other form of defamation by Franchise Dealer or any Related Party;

 

(d)                                 violation or breach by Franchise Dealer of any warranty, representation or obligation of this Agreement or any related or supplemental agreement;

 

(e)                                  any environmental contamination or occurrence as follows:

 

(i)                                     unless Section 12.2(e)(ii) applies, any environmental contamination or occurrence in whole or in part arising out of the operation of any Marketing Premises during any period when Franchise Dealer was or is in possession or entitled to be in possession of the Marketing Premises or arising out of any act or omission of Franchise Dealer or any Related Party, or

 

(ii)                                  if Franchise Dealer and all Related Parties have no interest in the storage tanks, lines or dispensing equipment located at the Marketing Premises and have no interest in the underlying estate of the Marketing Premises (excluding only the Leases/Subleases), any environmental

 

 

contamination or occurrence in whole or in part arising out of any act or omission of Franchise Dealer or any Related Party;

 

(f)                                    use of the Marketing Premises by Franchise Dealer, its agents, contractors, and/or employees;

 

(g)                                 purchase, delivery, receipt, storage, dispensing, or sale of motor fuel not bought from Distributor;

 

(h)                                 installation, existence, use, or removal of any storage tank(s), lines or dispensing equipment, in whole or in part, not owned by Distributor or its Affiliates, and the delivery of products into or out of such storage tank(s), lines or dispensing equipment;

 

(i)                                     defective condition of the Marketing Premises whether due to any latent or patent defect;

 

(j)                                     failure by Franchise Dealer to comply with Franchise Dealer’s maintenance obligations under this Agreement or any related or supplemental agreement including any agreement relating to a Related Business (“failure” shall include any unreasonable delay);

 

(k)                                  acts or omissions, whether occurring on or off the Marketing Premises, of any person(s) including, without limitation, Franchise Dealer, its agents, contractors, employees and/or any third parties, and excepting only Distributor, its agents, and/or employees, even if such acts or omissions, by whomever committed, constitute a criminal act;

 

(l)                                     activities of third parties acting on behalf of or pursuant to any joint venture, partnership, co-branding arrangement, sublease, license or other agreement with, Franchise Dealer with respect to the Marketing Premises, management of the Franchise or conduct of the Businesses;

 

(m)                               claims by creditors of Franchise Dealer or any Related Party;

 

(n)                               failure by Franchise Dealer to obtain or keep current the amounts and types of insurance required by this Agreement or to comply with the terms and conditions of the insurance obtained;

 

(o)                                 failure by Franchise Dealer, its agents, contractors, and/or employees, to fully comply with: any laws, or any provision, covenant, standard, or requirement of this Agreement and any related agreements; or

 

(p)                                 liens or claims of any contractors, subcontractors, suppliers, materialmen, workers, other persons or entities (excepting only Distributor, its agents, contractors, and/or employees) relating to the Marketing Premises.

 

12.3                             Notices; Choice of Counsel. Franchise Dealer shall promptly notify Distributor of any Proceeding. If Distributor is or may be named as a party in the Proceeding, Distributor may elect (but is not obligated) to undertake the defense or settlement of the Proceeding with counsel of Distributor’s choice. If Distributor does not elect to undertake the defense or settlement of the Proceeding, Franchise Dealer shall use counsel acceptable to Distributor. If Franchise Dealer fails to use counsel acceptable to Distributor or if Distributor, in its discretion, determines that a conflict of interest exists between Distributor and Franchise Dealer in the defense of the Proceeding, Distributor may engage counsel of its choice to separately represent it in the Proceeding. No undertaking or separate representation of counsel by Distributor under this Section 12.3 in any manner limits or waives Franchise Dealer’s obligation to indemnify and defend, or pay for the defense of, Distributor.

 

12.4                             Remedies. With respect to any Proceeding, Distributor may, at any time and without notice, in order to protect persons or property or the reputation or goodwill of Distributor or others, consent or agree to any settlement or remedial or corrective action as Distributor deems expedient, if, in Distributor’ sole judgment, there are reasonable grounds to believe that:

 

(a)                                  any of the acts or circumstances enumerated in Section 12.2 have occurred; or

 

(b)                                 any act or omission of Franchise Dealer or any Related Party may result directly or indirectly in future damage, injury or harm to any person or any property.

 

12.5                             Defenses. All Losses incurred under this Article XII shall be chargeable to and paid by Franchise Dealer, regardless of any actions, activities or defenses undertaken by the Indemnitees, or subsequent success or failure of any actions, activities or defenses.

 

12.6                             Recovery Obligations. Under no circumstances will Indemnitees be obligated to seek recovery from third parties or mitigate their Losses in order to maintain a claim against Franchise Dealer. Any Indemnitee’s failure to pursue a recovery or mitigate a Loss will in no way reduce the amounts recoverable by that Indemnitee from Franchise Dealer.

 

12.7                             Claims against Distributor. Franchise Dealer represents and warrants that Franchise Dealer has no knowledge of

 

 

any claim by Franchise Dealer or any related party against the Indemnitees on the date of this Agreement. Franchise Dealer’s obligation to disclose claims includes the disclosure of claims of which Franchise Dealer would have acquired knowledge upon reasonable inquiry or the exercise of due diligence.

 

12.8                             Criminal Act. “Criminal Act” as used in the Agreement means any act(s) or omission(s) having the nature of crime. criminal Act does not require proof of arrest, the filing of criminal charges, formal criminal processing, indictment, or conviction.

 

12.9                             Survival.  The provisions of this Article XII shall survive the expiration or earlier termination of this Agreement.

 

ARTICLE XIII

FAILURE  TO  PERFORM; ALLOCATION

 

13.1                             General Contingencies; Force Majeure.

 

(a)                                  Distributor is not liable for any consequences to Franchise Dealer, including loss, damage, or demurrage due to any delay or failure in performance, arising out of any cause beyond Distributor’s reasonable control including:

 

(i)                                     Governmental Action. Compliance with any action, order, direction, request or control of any governmental authority or person purporting to act for any governmental authority; or

 

(ii)                                  Force Majeure. Interruption, unavailability or inadequacy of the supply of the Products or of any facility of production, manufacture, storage, transportation, distribution or delivery, for any reason, including wars, hostilities, public disorders, acts of enemies, sabotage, strikes, lockouts, labor or employment difficulties, fires, floods, acts of God, accidents or breakdowns, plant shutdowns for repairs, maintenance or inspection, or weather conditions.

 

(b)                                 Distributor shall not be required to remove any cause or replace the affected source of supply or facility if Distributor determines the action would involve additional expense or a departure from its normal practices.

 

(c)                                  Franchise Dealer is not liable for failure to receive Products if Franchise Dealer is prevented from receiving and using them in Franchise Dealer’s customary manner by any cause beyond Franchise Dealer’s reasonable control.

 

13.2                             Allocation.

 

(a)                                  If there is, or Distributor determines there may be, a shortage of supplies, for whatever reason, so that Distributor is or may be unable to meet the demands of some or all of its customers, Distributor may allocate to and among its retail dealers those quantities of Product that Distributor determines it has available for distribution to that class of trade, or subgroup within that class of trade, from any specific terminal or point of supply. Distributor is not required to make up any deliveries or quantities omitted as a result of any cause or allocation under this Article XIV including deliveries or quantities omitted by Distributor in allocating Products among its retail dealers under this Section 13.2, and Distributor is not liable for any damages or losses in connection with those omitted deliveries or quantities.

 

(b)                                 In all situations of perceived or actual supply shortages, Distributor may join or comply with any voluntary or non-mandatory price, supply, allocation or delivery restriction systems or programs designed or supported by any governmental authority. Any decision or determination made by Distributor under this Article XIII will be made in Distributor’s sole discretion when acting in good faith in the ordinary course of business.

 

ARTICLE XIV

MISCELLANEOUS

 

14.1                             Significance of Terms and Conditions.

 

(a)                                  FRANCHISE DEALER ACKNOWLEDGES THAT EACH TERM AND CONDITION OF THIS AGREEMENT IS A REASONABLE AND MATERIALLY SIGNIFICANT PROVISION AND THAT ANY BREACH OF THE TERMS AND CONDITIONS IS SUBSTANTIAL AND PROVIDES REASONABLE BASIS FOR TERMINATION OR NON-RENEWAL.  THE PARTIES ALSO ACKNOWLEDGE THAT THIS AGREEMENT IS SUBJECT TO THE PMPA, AND NOTHING CONTAINED HEREIN IS INTENDED TO REDUCE THE RIGHTS OF EITHER PARTY UNDER THAT LAW.

 

(b)                                 Franchise Dealer has expressly acknowledged in this Agreement that the failure to meet certain obligations constitutes a failure to comply with a reasonable and materially significant provision of this Agreement or the Franchise Relationship. These acknowledgments may not be construed as intending that other provisions, which are not so acknowledged, are not reasonable and materially significant provisions of this Agreement and the

 

 

Franchise Relationship.

 

14.2                             Approvals and Consents. If this Agreement requires the prior approval or consent of Distributor, Franchise Dealer shall make a timely written request to Distributor for its approval or consent, and any approval or consent must be obtained in writing. Distributor makes no warranties or assurances upon which Franchise Dealer may rely, and assumes no liability or obligation to Franchise Dealer by:

 

(a)                                  providing any waiver, approval, consent, or suggestion to Franchise Dealer in connection with any approval or consent; or

 

(b)                                 reason of any neglect, delay or denial of any request.

 

14.3                             Strict Compliance. Subject to the PMPA, Distributor’s rights at any time to:

 

(a)                                  demand strict compliance with any obligation or condition under this Agreement or any related or supplemental agreement, or

 

(b)                                 exercise any rights or remedies in connection with Franchise Dealer’s default under this Agreement or any related or supplemental agreement,

 

are not waived or impaired by:

 

(i)                                     Distributor’s failure to exercise any right under this Agreement or any supplemental or related agreement,

 

(ii)                                  Distributor’s failure to insist upon strict compliance by Franchise Dealer with any obligation or condition in this Agreement or any supplemental or related agreement,

 

(iii)                               any course of dealing of the parties or any trade practice or practice of the Parties at variance with this Agreement or any related or supplemental agreement,

 

(iv)         Distributor’s waiver of any prior default, whether or not similar, or

 

(v)                                 Distributor’s delay, forbearance or failure to exercise any power or right arising out of default by Franchise Dealer under this Agreement or any related or supplemental agreement.

 

14.4                             Notices. Unless otherwise expressly provided in this Agreement, all notices, communications and delivery of information must be in writing and must be:

 

(a)                                  if to Distributor, posted by registered or certified mail, return receipt requested, or overnight mail by a recognized carrier, signature required, to the following address:

 

Lehigh Gas Wholesale LLC

702 West Hamilton Street

Suite 203

Allentown, PA 18101

Attn: David Hrinak

 

(b)                                 if to Franchise Dealer, posted by registered or certified mail, return receipt requested, or overnight mail by a recognized carrier, signature required, to the following address:

 

Lehigh Gas — Ohio, LLC

702 West Hamilton Street

Suite 203

Allentown, PA 18101

Attn: Joseph V. Topper, Jr.

 

Where commercially reasonable, Distributor may also communicate or deliver information to Franchise Dealer by electronic or telephonic means including those means of communication specified in Section 5.9.

 

Distributor may change the address for delivery of notices to it by furnishing written notice pursuant to this Section 14.4. Notice is deemed furnished on the first to occur of the following:

 

(a)                                  if made by personal delivery, the date the notice is personally delivered;

 

(b)                                 if made by registered or certified mail, three (3) business days after the date the notice is deposited in the United

 

 

States mail, postage prepaid, and properly addressed; or

 

(c)                                  if made by Distributor using electronic or telephonic communications, upon receipt by Franchise Dealer.

 

14.5                             Distributor Legal Fees and Costs. Franchise Dealer will promptly reimburse Distributor on demand for all costs, fees (including attorneys and expert witness fees), and expenses incurred by Distributor in enforcing its rights or remedies under this Agreement.

 

14.6                             Claims. All claims by Franchise Dealer whether or not arising out of this Agreement are barred unless asserted by the commencement of a lawsuit naming Distributor as a defendant in a court of competent jurisdiction within 12 months after the event, act or omission to which the claim relates.

 

14.7                             Limitation of Liability. Distributor is not liable to Franchise Dealer or any other person for:

 

(a)                                  prospective profits or special, incidental, indirect, punitive or consequential damages in any circumstances arising out of the subject matter of this Agreement or Distributor’s acts or omissions relating to that subject matter; or

 

(b)                                 claims under Section 2.10 in excess of Franchise Dealer’s purchase price of the Products to which the claims relate.

 

14.8                             Entire Agreement; Modifications. This Agreement, (including the Exhibits, attachments, and addenda, if any, which are incorporated for all purposes) contains the entire Agreement and understanding between Franchise Dealer and Distributor pertaining to the covered subject matter, and supersede all prior agreements relating to that subject matter. There are no binding oral representations, stipulations, warranties, or “understandings” relating to this Agreement that are not fully set out in this Agreement. Except for those permitted to be made unilaterally by Distributor under this Agreement, no amendment, change or variance from this Agreement is binding on either Party unless agreed in writing by the Franchise Dealer and Distributor’s authorized representative.

 

14.9                             Severability and Construction. Except as otherwise expressly provided in this Agreement, each provision, and portion of any provision, of this Agreement is severable.  If, for any reason, a provision or portion of any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the invalidity or unenforceability will not affect the validity or enforceability of any other provision or portion of a provision. The unaffected provisions, and portions of provisions, will remain in full force and effect.

 

14.10                       Third Party Rights. Except as otherwise expressly provided in this Agreement, no person or entity not a party to this Agreement has any rights or remedies under this Agreement.

 

14.11                       Headings. All headings in this Agreement are intended solely for convenience and do not affect the meaning or construction of any provision of this Agreement.

 

14.12                       Joint and Several Obligations. All acknowledgments, representations, warranties and obligations of Franchise Dealer under this Agreement are made by, and binding on, all those signing this Agreement jointly and severally as Franchise Dealer.

 

14.13                       Distributor Approval. This Agreement is not binding on Distributor until approved and signed on Distributor’s behalf by Distributor’s authorized representative.

 

14.14                       Terms on Renewal. Nothing in this Agreement is to be construed as preventing Distributor, upon renewal of the Franchise Relationship, from offering Franchise Dealer terms and conditions in good faith and the normal course of business which differ from or are in addition to those in this Agreement, including terms and conditions relating to the Related Businesses or other businesses which may be operated at the Marketing Premises.

 

14.15                     Governing Law.  This Agreement shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania, except to the extent preempted by federal law, without giving effect to conflicts of law doctrine of such state. Franchise Dealer hereby consents to the jurisdiction of any federal or state court within the Commonwealth of Pennsylvania and also consent to service of process by any means authorized by state or federal law.

 

ARTICLE XV

ADDITIONAL  FRANCHISE  DEALER  REPRESENTATIONS  AND WARRANTIES

 

15.1                             Business Risks. Franchise Dealer represents and warrants that it has conducted an independent investigation of the Related Businesses and recognizes that the related businesses involve business risks and that its success will be largely dependent upon the ability of Franchise Dealer as an independent businessperson. Distributor expressly disclaims the

 

 

making of, and Franchise Dealer represents that it has not received, any representation, warranty or guarantee, express or implied, as to the potential volume, profits or success of the Businesses covered by this Agreement.

 

15.2                             Representations. Franchise Dealer represents and warrants that it has no knowledge of any representation or warranty by Distributor or any of its Affiliates or its officers, directors, shareholders, employees, agents or contractors concerning the Businesses that is contrary to the terms of this Agreement or the documents referred to in this Agreement. Franchise Dealer represents and warrants that:

 

(a)                                  Distributor has made no representation or warranty to Franchise Dealer that Franchise Dealer will earn or is likely to earn a positive return on any investment made by Franchise Dealer;

 

(b)                                 the Franchise includes no right of exclusivity;

 

(c)                                  Distributor has made no representation or warranty that it will buy back or otherwise accept from Franchise Dealer any Products, supplies or equipment purchased or leased by Franchise Dealer in connection with the Businesses;

 

(d)                                 Franchise Dealer has made no misrepresentation in applying for the Franchise or entering into this Agreement; and

 

(e)                                  if Franchise Dealer is a corporation or a limited liability company:

 

(i)                                     Franchise Dealer is duly organized and validly existing;

 

(ii)                                  Franchise Dealer is authorized to do business and in good standing under the laws of the state of its organization and under the laws of any state in which this Agreement is to be performed;

 

(iii)                               Franchise Dealer has the power and authority to enter into this Agreement, to perform its obligations under this Agreement and to consummate the transactions contemplated by this Agreement; and

 

(iv)                              Franchise Dealer’s signing, delivery and performance of this Agreement has been duly authorized by all required action.

 

15.3                             Receipt of Attachments and Disclosures. Franchise Dealer represents and warrants that it received a copy of the complete Agreement, the schedules and attachments to the Agreement, and any supplemental and related disclosures required by applicable Law.

 

15.4                             Understanding of Agreements. Franchise Dealer represents and warrants that it has read and understands this Agreement, any attachments, and any related or supplemental agreements, and that Distributor has afforded Franchise Dealer ample time and opportunity to consult with advisers of Franchise Dealer’s own choosing about the potential benefits and risks of entering into this Agreement. Franchise Dealer represents and warrants that Franchise Dealer understands and agrees with the terms of this Agreement.

 

-Signatures on Next Page-

 

 

Intending to be legally bound, this Agreement, the Parties have executed this Agreement by their duly authorized representatives.

 

Signed by the Parties.

 

 

	
Witness/Attest:
    	
 
    	
DISTRIBUTOR
    
	
 
    	
 
    	
Lehigh   Gas Wholesale LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Dennis M. McCarthy
    	
 
    	
By:
    	
/s/   David F. Hrinak
    
	
 
    	
 
    	
Name:
    	
David   F. Hrinak
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness/Attest:
    	
 
    	
FRANCHISE   DEALER
    
	
 
    	
 
    	
Lehigh   Gas — Ohio, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   Lehigh Gas — Ohio Holdings, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   Dennis M. McCarthy
    	
 
    	
By:
    	
/s/   Joseph V. Topper, Jr.
    
	
 
    	
 
    	
Name:
    	
Joseph   V. Topper, Jr.
    
	
 
    	
 
    	
Title:
    	
General   Manager
    
	
78410
    	
 
    	
 
    	
 
    

 

 

EXHIBIT A

 

	
SiteID
    	
 
    	
Location
    	
 
    	
FUEL
   BRAND
    
	
KY0001
    	
 
    	
506   Commonwealth, Erlanger KY
    	
 
    	
BP
    
	
KY0002
    	
 
    	
7961   US Highway 42, Florence KY
    	
 
    	
BP
    
	
KY0003
    	
 
    	
30   Donnermeyer Dr, Bellevue KY
    	
 
    	
BP
    
	
KY0004
    	
 
    	
610   West 4th Street, Covington KY
    	
 
    	
BP
    
	
KY0005
    	
 
    	
2447   Anderson Road, Crescent Springs KY
    	
 
    	
BP
    
	
KY0006
    	
 
    	
4301   Winston, Covington KY
    	
 
    	
BP
    
	
KY0007
    	
 
    	
2625   Alexandria Pike, Highland Hts KY
    	
 
    	
BP
    
	
KY0009
    	
 
    	
8039   Burlington Pike, Florence KY
    	
 
    	
BP
    
	
MA0001
    	
 
    	
181   Elm Street, Westfield MA
    	
 
    	
MOBIL
    
	
MA0004
    	
 
    	
162   Southampton, Westfield MA
    	
 
    	
MOBIL
    
	
MA0006
    	
 
    	
236   Route 15, Sturbridge MA
    	
 
    	
MOBIL
    
	
MA0008
    	
 
    	
65   Main Street, Milford MA
    	
 
    	
BP
    
	
MA0009
    	
 
    	
1744   Centre St., West Roxbury MA
    	
 
    	
BP
    
	
MA0010
    	
 
    	
1   Powder Mill Rd, Maynard MA
    	
 
    	
BP
    
	
MA0011
    	
 
    	
221   Main St., Gardner MA
    	
 
    	
BP
    
	
MA0012
    	
 
    	
663   Washington St, Stoughton MA
    	
 
    	
BP
    
	
MA0013
    	
 
    	
295   Mass. Ave., Arlington MA
    	
 
    	
BP
    
	
MA0014
    	
 
    	
484   Broadway, Methuen MA
    	
 
    	
BP
    
	
MA0016
    	
 
    	
245   N. Main St., Randolph MA
    	
 
    	
Gulf
    
	
MA0017
    	
 
    	
110   Galen St., Watertown MA
    	
 
    	
BP
    
	
MA0018
    	
 
    	
22   Bridge Street, Dedham MA
    	
 
    	
BP
    
	
MA0019
    	
 
    	
4   Whiting Street, Hingham MA
    	
 
    	
BP
    
	
MA0020
    	
 
    	
61   Homer Avenue, Ashland MA
    	
 
    	
Getty
    
	
MA0021
    	
 
    	
325   Washington St, Woburn MA
    	
 
    	
BP
    
	
MA0022
    	
 
    	
563   Trapelo Rd., Belmont MA
    	
 
    	
BP
    
	
MA0023
    	
 
    	
792   Truman Hywy, Hyde Park MA
    	
 
    	
BP
    
	
MA0024
    	
 
    	
2081   Revere Beach Parkway, Everett MA
    	
 
    	
Getty
    
	
MA0025
    	
 
    	
527   Grafton Street, Worcester MA
    	
 
    	
BP
    
	
MA0026
    	
 
    	
609   Park Ave., Worcester MA
    	
 
    	
BP
    
	
MA0027
    	
 
    	
East   Main St, Webster MA
    	
 
    	
BP
    
	
MA0028
    	
 
    	
185   Mechanic St, Clinton MA
    	
 
    	
BP
    
	
MA0029
    	
 
    	
10   Main St., Foxborough MA
    	
 
    	
BP
    
	
MA0030
    	
 
    	
564   Main St., Clinton MA
    	
 
    	
BP
    
	
MA0031
    	
 
    	
331   Bennington St, Boston MA
    	
 
    	
BP
    
	
MA0032
    	
 
    	
964   Boylston St, Newton MA
    	
 
    	
BP
    
	
MA0033
    	
 
    	
30   Lowell Street, Methuen MA
    	
 
    	
BP
    
	
MA0034
    	
 
    	
399   Webster Street, Rockland MA
    	
 
    	
BP
    
	
MA0035
    	
 
    	
1052   S. Main Street, Bellingham MA
    	
 
    	
BP
    
	
MA0036
    	
 
    	
571   Main St., Walpole MA
    	
 
    	
BP
    
	
MA0037
    	
 
    	
785   Turnpike Street, North Andover MA
    	
 
    	
BP
    
	
MA0038
    	
 
    	
1   Oak Hill Road, Westford MA
    	
 
    	
BP
    
	
MA0039
    	
 
    	
309   Chelmsford Street, Lowell MA
    	
 
    	
BP
    

 

 

	
MA0040
    	
 
    	
481   Washington Street, Auburn MA
    	
 
    	
BP
    
	
MA0041
    	
 
    	
245   Haverhill Street, Methuen MA
    	
 
    	
BP
    
	
MA0042
    	
 
    	
9   Haverhill Road, Amesbury MA
    	
 
    	
BP
    
	
MA0044
    	
 
    	
581   Boston Post Rd, Billerica MA
    	
 
    	
BP
    
	
MA0045
    	
 
    	
801   Lakeview Ave, Lowell MA
    	
 
    	
Getty
    
	
MA0046
    	
 
    	
163-164   Pelham Street, Methuen MA
    	
 
    	
BP
    
	
MA0047
    	
 
    	
1-1/2   Sylvan Street, Peabody MA
    	
 
    	
BP
    
	
MA0048
    	
 
    	
60-70   Franklin Street, Quincy MA
    	
 
    	
BP
    
	
MA0049
    	
 
    	
94   Jackson Street, Salem MA
    	
 
    	
BP
    
	
MA0050
    	
 
    	
869   Main St (Rt 38), Tewksbury MA
    	
 
    	
BP
    
	
MA0051
    	
 
    	
262   Groton Road, Westford MA
    	
 
    	
BP
    
	
MA0052
    	
 
    	
317   Montvale Ave., Woburn MA
    	
 
    	
BP
    
	
MA0053
    	
 
    	
724   Bedford St, Bridgewater MA
    	
 
    	
BP
    
	
MA0054
    	
 
    	
860   Southbridge St., Auburn MA
    	
 
    	
BP
    
	
MA0055
    	
 
    	
2   Summer St, Barre MA
    	
 
    	
BP
    
	
MA0056
    	
 
    	
390   Belmont Street, Worcester MA
    	
 
    	
BP
    
	
MA0057
    	
 
    	
1177   No. Main Street, Clinton MA
    	
 
    	
BP
    
	
MA0058
    	
 
    	
974   Southbridge Street, Worcester MA
    	
 
    	
BP
    
	
MA0059
    	
 
    	
77   Highland Street, Worcester MA
    	
 
    	
Getty
    
	
MA0060
    	
 
    	
288   Central Street, Leominster MA
    	
 
    	
BP
    
	
MA0061
    	
 
    	
248   Lincoln Street, Worcester MA
    	
 
    	
BP
    
	
MA0062
    	
 
    	
48   West Main Street, Northborough MA
    	
 
    	
BP
    
	
MA0063
    	
 
    	
21   West Boylston Street, West Boylston MA
    	
 
    	
BP
    
	
MA0064
    	
 
    	
176   Worcester Rd., Southbridge MA
    	
 
    	
BP
    
	
MA0065
    	
 
    	
205   Worcester Road, Sterling MA
    	
 
    	
BP
    
	
MA0066
    	
 
    	
318   Boston Road, Sutton MA
    	
 
    	
BP
    
	
MA0067
    	
 
    	
1107   Pleasant Street, Worcester MA
    	
 
    	
BP
    
	
MA0068
    	
 
    	
Rt.140,Main   St. & Hartford Pk, Upton MA
    	
 
    	
BP
    
	
MA0069
    	
 
    	
11   Milk Street, Westborough MA
    	
 
    	
BP
    
	
MA0070
    	
 
    	
30   Chandler Street, Worcester MA
    	
 
    	
BP
    
	
MA0072
    	
 
    	
942   South Street, Fitchburg MA
    	
 
    	
BP
    
	
MA0073
    	
 
    	
702   West Boylston Street, Worcester MA
    	
 
    	
BP
    
	
MA0074
    	
 
    	
90   Worcester Street, North Grafton MA
    	
 
    	
BP
    
	
MA0075
    	
 
    	
109   South Main Street, Oxford MA
    	
 
    	
BP
    
	
MA0076
    	
 
    	
54   Stafford Street, Worcester MA
    	
 
    	
BP
    
	
MA0078
    	
 
    	
1264   Grafton Street, Worcester MA
    	
 
    	
BP
    
	
MA0079
    	
 
    	
1660   Worcester Road, Framingham MA
    	
 
    	
BP
    
	
MA0080
    	
 
    	
Cape   Road (Rt. 140) & Water St, Milford MA
    	
 
    	
BP
    
	
MA0081
    	
 
    	
2   W Hartford Avenue, Uxbridge MA
    	
 
    	
BP
    
	
MA0082
    	
 
    	
274   High Street, Lowell MA
    	
 
    	
BP
    
	
ME0001
    	
 
    	
515   Lisbon St, Lewiston ME
    	
 
    	
Getty
    
	
ME0002
    	
 
    	
Main   And Elm Sts, Biddeford ME
    	
 
    	
Gulf
    
	
ME0003
    	
 
    	
211   Lisbon Road, Lisbon ME
    	
 
    	
Gulf
    
	
ME0006
    	
 
    	
159   Bridgton Road, Westbrook ME
    	
 
    	
Lukoil
    
	
ME0007
    	
 
    	
207   Broadway, South Portland ME
    	
 
    	
Getty
    
	
ME0008
    	
 
    	
510   Sabattus Street, Lewiston ME
    	
 
    	
Getty
    

 

 

	
NH0001
    	
 
    	
Danforth   Circle, Derry NH
    	
 
    	
BP
    
	
NH0002
    	
 
    	
70   Plaistow Road, Plaistow NH
    	
 
    	
Getty
    
	
NH0003
    	
 
    	
18   High Street, Somersworth NH
    	
 
    	
BP
    
	
NH0004
    	
 
    	
164   Main Street And Granite, Salem NH
    	
 
    	
BP
    
	
NH0005
    	
 
    	
2   Mohawk Drive, Londonderry NH
    	
 
    	
BP
    
	
NH0006
    	
 
    	
129   South Main Street, Rochester NH
    	
 
    	
BP
    
	
NH0010
    	
 
    	
219   Pembroke Street, Pembroke NH
    	
 
    	
BP
    
	
NH0012
    	
 
    	
74   Hancock Street, Rochester NH
    	
 
    	
BP
    
	
NH0016
    	
 
    	
Rt   125, Epping NH
    	
 
    	
BP
    
	
NH0017
    	
 
    	
1890   Dover Road, Epsom NH
    	
 
    	
Getty
    
	
NH0019
    	
 
    	
1815   Woodbury Ave, Portsmouth NH
    	
 
    	
BP
    
	
NH0020
    	
 
    	
233   S. Broadway, Salem NH
    	
 
    	
BP
    
	
NH0021
    	
 
    	
587   Lafayette Road, Seabrook NH
    	
 
    	
BP
    
	
NH0022
    	
 
    	
32   Bridge Street, Pelham NH
    	
 
    	
BP
    
	
NJ0002
    	
 
    	
1   WHITE HORSE PIKE, STRATFORD NJ
    	
 
    	
EXXON
    
	
NJ0006
    	
 
    	
1072   Route 202, RINGOES NJ
    	
 
    	
Shell
    
	
NJ0014
    	
 
    	
1251   Route 206, PRINCETON NJ
    	
 
    	
Shell
    
	
NJ0017
    	
 
    	
135   OLD CRANBURY Road, CRANBURY NJ
    	
 
    	
EXXON
    
	
NJ0023
    	
 
    	
16   Route 173 WEST, HAMPTON NJ
    	
 
    	
UNB
    
	
NJ0024
    	
 
    	
1651   Route 38 & PINE Street, MT HOLLY NJ
    	
 
    	
EXXON
    
	
NJ0025
    	
 
    	
168   Route 173 West, ASBURY NJ
    	
 
    	
Mobil
    
	
NJ0026
    	
 
    	
169   PERRYVILLE Road, HAMPTON NJ
    	
 
    	
SHELL
    
	
NJ0028
    	
 
    	
1771   ROUTE 206, SOUTHAMPTON NJ
    	
 
    	
EXXON
    
	
NJ0031
    	
 
    	
1839   ADMIRAL WILSON BLVD, CAMDEN NJ
    	
 
    	
EXXON
    
	
NJ0035
    	
 
    	
2   MARLTON PIKE WEST, CHERRY HILL NJ
    	
 
    	
EXXON
    
	
NJ0040
    	
 
    	
2551   BRUNSWICK Avenue, TRENTON NJ
    	
 
    	
 
    
	
NJ0041
    	
 
    	
2551   Route 31 & PENNINGTON CIRCLE, PENNINGTON NJ
    	
 
    	
EXXON
    
	
NJ0042
    	
 
    	
258-260   Route 130 NORTH, BORDENTOWN NJ
    	
 
    	
EXXON
    
	
NJ0046
    	
 
    	
3051   ROUTE 38, MOUNT LAUREL NJ
    	
 
    	
EXXON
    
	
NJ0047
    	
 
    	
307   SOUTH MAIN Street, FLEMINGTON NJ
    	
 
    	
 
    
	
NJ0052
    	
 
    	
4212   Route 130, WILLINGBORO NJ
    	
 
    	
EXXON
    
	
NJ0053
    	
 
    	
438   Route 206, HILLSBORO NJ
    	
 
    	
 
    
	
NJ0055
    	
 
    	
4915   Route 130, PENNSAUKEN NJ
    	
 
    	
EXXON
    
	
NJ0060
    	
 
    	
601   Route 12, FLEMINGTON NJ
    	
 
    	
EXXON
    
	
NJ0061
    	
 
    	
633   WATER Street, BELVIDERE NJ
    	
 
    	
Shell
    
	
NJ0086
    	
 
    	
36   Route 15 & 94 PO Box 304, Lafayette NJ
    	
 
    	
EXXON
    
	
NJ0088
    	
 
    	
549   Hwy. 36 No. & Main Street, Belford NJ
    	
 
    	
EXXON
    
	
NJ0096
    	
 
    	
632   Second Avenue, Long Branch NJ
    	
 
    	
EXXON
    
	
NJ0114
    	
 
    	
1291   Springfield Avenue, New Providence NJ
    	
 
    	
EXXON
    
	
NJ0123
    	
 
    	
268   Route 202, Flemington NJ
    	
 
    	
EXXON
    
	
NJ0166
    	
 
    	
1001   Highway 71, Spring Lake Heights NJ
    	
 
    	
EXXON
    
	
NJ0202
    	
 
    	
1300   Galloping Hill Road, Kenilworth NJ
    	
 
    	
SHELL
    
	
NY0001
    	
 
    	
NY   Thruway MP 153 East I-90 103 BROOKSIDE DRIVE, SCHENECTADY NY
    	
 
    	
MOBIL
    
	
NY0004
    	
 
    	
1469   LAKE Avenue, ROCHESTER NY
    	
 
    	
MOBIL
    
	
NY0006
    	
 
    	
NY   Thruway MP 366 E I-90 20 Erie Station Road, WEST HENRIETTA NY
    	
 
    	
MOBIL
    

 

 

	
NY0007
    	
 
    	
2058   DELAWARE Avenue, BUFFALO NY
    	
 
    	
MOBIL
    
	
NY0011
    	
 
    	
NY   Thruway MP 310 E I-90 310 E Port Byron Area, PORT BYRON NY
    	
 
    	
MOBIL
    
	
NY0023
    	
 
    	
7185   BOSTON STATE ROAD, HAMBURG NY
    	
 
    	
MOBIL
    
	
NY0030
    	
 
    	
NY   Thruway MP 292 West I-90 Brickyard Rd, WARNERS NY
    	
 
    	
MOBIL
    
	
NY0031
    	
 
    	
NY   Thruway MP 103 North I-87, MALDEN ON HUDSON NY
    	
 
    	
MOBIL
    
	
NY0032
    	
 
    	
NY   Thruway MP 127 South I-87, HANNACROIX NY
    	
 
    	
MOBIL
    
	
NY0033
    	
 
    	
NY   Thruway MP 168 West I-90, PATTERSONVILLE NY
    	
 
    	
MOBIL
    
	
NY0034
    	
 
    	
NY   Thruway MP 172 East I-90, AMSTERDAM NY
    	
 
    	
MOBIL
    
	
NY0035
    	
 
    	
NY   Thruway MP 227 West I-90, FRANKFORT NY
    	
 
    	
MOBIL
    
	
NY0036
    	
 
    	
NY   Thruway MP 127 North I-87, HANNACROIX NY
    	
 
    	
MOBIL
    
	
NY0037
    	
 
    	
NY   Thruway MP 210 East I-90 POBox 1051, LITTLE FALLS NY
    	
 
    	
MOBIL
    
	
NY0038
    	
 
    	
NY   Thruway MP 210 West I-90 PO Box 1051, LITTLE FALLS NY
    	
 
    	
MOBIL
    
	
NY0039
    	
 
    	
NY   Thruway MP 350 West I-90, VICTOR NY
    	
 
    	
MOBIL
    
	
NY0047
    	
 
    	
1775   MARKETPLACE DRIVE, ROCHESTER NY
    	
 
    	
MOBIL
    
	
NY0048
    	
 
    	
2311   TRIPHAMMER ROAD, ITHACA NY
    	
 
    	
MOBIL
    
	
NY0050
    	
 
    	
3550   GENESSE Street, CHEEKTOWAGA NY
    	
 
    	
MOBIL
    
	
NY0064
    	
 
    	
310   Main St, Bolivar NY
    	
 
    	
EXXON
    
	
NY0065
    	
 
    	
2   E Main St, Canisteo NY
    	
 
    	
EXXON
    
	
OH0016
    	
 
    	
7799   MONTGOMERY Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0017
    	
 
    	
10843   MONTGOMERY Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0018
    	
 
    	
4545   READING Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0021
    	
 
    	
4900   MONTGOMERY Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0022
    	
 
    	
546   WARDS CORNER Road, LOVELAND OH
    	
 
    	
BP
    
	
OH0023
    	
 
    	
543   OHIO PIKE, CINCINNATI OH
    	
 
    	
BP
    
	
OH0024
    	
 
    	
2696   MADISON Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0025
    	
 
    	
1201   OMNIPLEX DR, CINCINNATI OH
    	
 
    	
BP
    
	
OH0026
    	
 
    	
20   North ERIE HIGHWAY, HAMILTON OH
    	
 
    	
BP
    
	
OH0027
    	
 
    	
727   East MAIN Street, LEBANON OH
    	
 
    	
BP
    
	
OH0028
    	
 
    	
9855   MASON-MONTGOMERY Road, MASON OH
    	
 
    	
BP
    
	
OH0029
    	
 
    	
8020   MONTGOMERY Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0030
    	
 
    	
1550   QUEEN CITY, CINCINNATI OH
    	
 
    	
BP
    
	
OH0031
    	
 
    	
3590   MADISON Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0032
    	
 
    	
4001   HAUCK Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0033
    	
 
    	
11775   SPRINGFIELD PIKE, SPRINGDALE OH
    	
 
    	
BP
    
	
OH0034
    	
 
    	
7380   BEECHMONT Avenue, CINCINNATI OH
    	
 
    	
BP
    
	
OH0035
    	
 
    	
6151   PFEIFFER Road, CINCINNATI OH
    	
 
    	
BP
    
	
OH0036
    	
 
    	
1326   HOPPLE Street, CINCINNATI OH
    	
 
    	
BP
    
	
OH0037
    	
 
    	
249   West MITCHELL Avenue, CINCINNATI OH
    	
 
    	
BP
    
	
OH0044
    	
 
    	
1386   STATE ROUTE 125 (OHIO PIKE), AMELIA OH
    	
 
    	
BP
    
	
OH0045
    	
 
    	
3180   MONTGOMERY ROAD, LOVELAND OH
    	
 
    	
BP
    
	
OH0046
    	
 
    	
5575   DIXIE HWY, FAIRFIELD OH
    	
 
    	
BP
    
	
OH0048
    	
 
    	
9171   UNION CENTRE BLVD, WEST CHESTER OH
    	
 
    	
BP
    
	
OH0049
    	
 
    	
5591   STATE Route 741, MASON OH
    	
 
    	
BP
    
	
OH0051
    	
 
    	
15150   SNOW Road, BROOKPARK OH
    	
 
    	
BP
    
	
OH0052
    	
 
    	
29775   CLEMENS Road, WESTLAKE OH
    	
 
    	
BP
    
	
OH0053
    	
 
    	
4901   FLEET Avenue, CLEVELAND OH
    	
 
    	
BP
    
	
OH0054
    	
 
    	
402   East BRIDGE Street, ELYRIA OH
    	
 
    	
BP
    

 

 

	
OH0056
    	
 
    	
3059   GROVE Avenue, LORAIN OH
    	
 
    	
BP
    
	
OH0057
    	
 
    	
508   AVON BELDEN Road, AVON LAKE OH
    	
 
    	
BP
    
	
OH0058
    	
 
    	
3983   MAYFIELD Road, CLEVELAND HEIGHTS OH
    	
 
    	
BP
    
	
OH0059
    	
 
    	
801   North LEAVITT Road, AMHERST OH
    	
 
    	
BP
    
	
OH0060
    	
 
    	
39105   COLORADO Avenue, AVON OH
    	
 
    	
BP
    
	
OH0061
    	
 
    	
19400   HILLIARD BLVD, ROCKY RIVER OH
    	
 
    	
BP
    
	
OH0062
    	
 
    	
11250   GRANGER Road, GARFIELD HEIGHTS OH
    	
 
    	
BP
    
	
OH0063
    	
 
    	
14718   MADISON Avenue, LAKEWOOD OH
    	
 
    	
BP
    
	
OH0064
    	
 
    	
3065   West 117TH, CLEVELAND OH
    	
 
    	
BP
    
	
OH0065
    	
 
    	
4282   MONTICELLO, SOUTH EUCLID OH
    	
 
    	
BP
    
	
OH0066
    	
 
    	
2159   South GREEN Road, UNIVERSITY HEIGHTS OH
    	
 
    	
BP
    
	
OH0067
    	
 
    	
2643   WARRENSVILLE Road, UNIVERSITY HEIGHTS OH
    	
 
    	
BP
    
	
OH0068
    	
 
    	
25466   DETROIT Road, WESTLAKE OH
    	
 
    	
BP
    
	
OH0069
    	
 
    	
13165   LARCHMERE, SHAKER HEIGHTS OH
    	
 
    	
BP
    
	
OH0070
    	
 
    	
20420   CHAGRIN BLVD, SHAKER HEIGHTS OH
    	
 
    	
BP
    
	
OH0071
    	
 
    	
5206   STATE Road, PARMA OH
    	
 
    	
BP
    
	
OH0072
    	
 
    	
7510   BROADVIEW Road, PARMA OH
    	
 
    	
BP
    
	
OH0073
    	
 
    	
6585   RIDGE ROAD, PARMA OH
    	
 
    	
BP
    
	
OH0074
    	
 
    	
4910   HARVARD Avenue, NEWBURGH HEIGHTS OH
    	
 
    	
BP
    
	
OH0075
    	
 
    	
23425   LORAIN ROAD, NORTH OLMSTED OH
    	
 
    	
BP
    
	
OH0076
    	
 
    	
25295   LORAIN Road, NORTH OLMSTED OH
    	
 
    	
BP
    
	
OH0077
    	
 
    	
8200   COLUMBIA Road, OLMSTED FALLS OH
    	
 
    	
BP
    
	
OH0078
    	
 
    	
5200   ROCKSIDE Road, INDEPENDENCE OH
    	
 
    	
BP
    
	
OH0079
    	
 
    	
17810   BAGLEY Road, MIDDLEBURG HEIGHTS OH
    	
 
    	
BP
    
	
OH0080
    	
 
    	
4161   West 150TH Street, CLEVELAND OH
    	
 
    	
BP
    
	
OH0081
    	
 
    	
2801   MAYFIELD, CLEVELAND HEIGHTS OH
    	
 
    	
BP
    
	
OH0082
    	
 
    	
4006   LEE Road, CLEVELAND OH
    	
 
    	
BP
    
	
OH0083
    	
 
    	
552   East 152ND Street, CLEVELAND OH
    	
 
    	
BP
    
	
OH0085
    	
 
    	
10202   LORAIN Avenue, CLEVELAND OH
    	
 
    	
BP
    
	
OH0086
    	
 
    	
3735   FULTON Road, CLEVELAND OH
    	
 
    	
BP
    
	
OH0087
    	
 
    	
3100   West 14TH Street, CLEVELAND OH
    	
 
    	
BP
    
	
OH0088
    	
 
    	
10300   BROOKPARK Road, BROOKLYN OH
    	
 
    	
BP
    
	
OH0089
    	
 
    	
4774   ROYALTON Road, BROADVIEW HEIGHTS OH
    	
 
    	
BP
    
	
OH0090
    	
 
    	
25705   CHAGRIN BLVD, BEACHWOOD OH
    	
 
    	
BP
    
	
OH0091
    	
 
    	
35985   CENTER RIDGE Road, NORTH RIDGEVILLE OH
    	
 
    	
BP
    
	
OH0092
    	
 
    	
14008   LORAIN Avenue, CLEVELAND OH
    	
 
    	
BP
    
	
OH0093
    	
 
    	
14043   STATE Road, NORTH ROYALTON OH
    	
 
    	
BP
    
	
OH0094
    	
 
    	
5219   DETROIT ROAD, SHEFFIELD OH
    	
 
    	
BP
    
	
OH0095
    	
 
    	
32393   LORAIN ROAD, NORTH RIDGEVILLE OH
    	
 
    	
BP
    
	
OH0096
    	
 
    	
1700   BROOKPARK ROAD, CLEVELAND OH
    	
 
    	
BP
    
	
OH0098
    	
 
    	
2701   CHESTER Avenue, CLEVELAND OH
    	
 
    	
BP
    
	
OH0099
    	
 
    	
25525   CENTER RIDGE, WESTLAKE OH
    	
 
    	
BP
    
	
OH0100
    	
 
    	
30812   DETROIT Road, WESTLAKE OH
    	
 
    	
BP
    
	
OH0101
    	
 
    	
5510   Street CLAIR Avenue, CLEVELAND OH
    	
 
    	
BP
    
	
OH0109
    	
 
    	
736   Dresden, East Liverpool OH
    	
 
    	
BP
    
	
OH0111
    	
 
    	
16067   SR-170, East Liverpool OH
    	
 
    	
BP
    
	
OH0115
    	
 
    	
40890   SR-154, Lisbon OH
    	
 
    	
BP
    
	
PA0002
    	
 
    	
100   East UWCHLAND Avenue, EXTON PA
    	
 
    	
BP
    

 

 

	
PA0009
    	
 
    	
101   OLD YORK ROAD, JENKINTOWN PA
    	
 
    	
EXXON
    
	
PA0011
    	
 
    	
103   North POTTSTOWN PIKE, EXTON PA
    	
 
    	
EXXON
    
	
PA0023
    	
 
    	
1229   MCDADE BLVD., WOODLYN PA
    	
 
    	
EXXON
    
	
PA0024
    	
 
    	
123   NORTH PINE, LANGHORNE PA
    	
 
    	
EXXON
    
	
PA0025
    	
 
    	
1266   East OLD LINCOLN HWY, LANGHORNE PA
    	
 
    	
EXXON
    
	
PA0034
    	
 
    	
1419   West MAIN Street, LANSDALE PA
    	
 
    	
EXXON
    
	
PA0062
    	
 
    	
1825   Route 309, ALLENTOWN PA
    	
 
    	
EXXON
    
	
PA0067
    	
 
    	
200   West MONTGOMERY Avenue, ARDMORE PA
    	
 
    	
EXXON
    
	
PA0083
    	
 
    	
2306   LYCOMING CREEK ROAD, WILLIAMSPORT PA
    	
 
    	
SHELL
    
	
PA0089
    	
 
    	
2401   HAVERFORD ROAD, ARDMORE PA
    	
 
    	
EXXON
    
	
PA0107
    	
 
    	
3101   North BROAD Street, PHILADELPHIA PA
    	
 
    	
EXXON
    
	
PA0111
    	
 
    	
3350   East MARKET Street, TWIN OAKS PA
    	
 
    	
SHELL
    
	
PA0115
    	
 
    	
3655   ROUTE 378, BETHLEHEM PA
    	
 
    	
EXXON
    
	
PA0117
    	
 
    	
3727   LINCOLN HIGHWAY, THORNDALE PA
    	
 
    	
EXXON
    
	
PA0128
    	
 
    	
701   Main Street, Red Hill PA
    	
 
    	
MOBIL
    
	
PA0141
    	
 
    	
53   West FAYETTE Street, UNIONTOWN PA
    	
 
    	
SHELL
    
	
PA0145
    	
 
    	
555   YORK ROAD, HATBORO PA
    	
 
    	
EXXON
    
	
PA0159
    	
 
    	
620   WEST DEKALB PIKE, KING OF PRUSSIA PA
    	
 
    	
EXXON
    
	
PA0160
    	
 
    	
6201   North BROAD Street, PHILADELPHIA PA
    	
 
    	
EXXON
    
	
PA0164
    	
 
    	
6816   EASTON ROAD, PIPERSVILLE PA
    	
 
    	
Valero
    
	
PA0176
    	
 
    	
7424   WEST CHESTER PIKE, UPPER DARBY PA
    	
 
    	
EXXON
    
	
PA0178
    	
 
    	
759   CHESTER PIKE, PROSPECT PARK PA
    	
 
    	
EXXON
    
	
PA0180
    	
 
    	
799   VALLEY FORGE ROAD, PHOENIXVILLE PA
    	
 
    	
EXXON
    
	
PA0182
    	
 
    	
801   BALTIMORE PIKE, SPRINGFIELD PA
    	
 
    	
EXXON
    
	
PA0190
    	
 
    	
9042   ROOSEVELT BLVD, PHILADELPHIA PA
    	
 
    	
EXXON
    
	
PA0195
    	
 
    	
9996   BUSTLETON Avenue, PHILADELPHIA PA
    	
 
    	
EXXON
    
	
PA0204
    	
 
    	
Chestnut   AND LINE Street, MIFFLINBURG PA
    	
 
    	
SHELL
    
	
PA0211
    	
 
    	
ROUTES   63 & 113, HARLEYSVILLE PA
    	
 
    	
EXXON
    
	
PA0213
    	
 
    	
ROUTES   I-80 & 115 S, MILESBURG PA
    	
 
    	
SHELL
    
	
PA0222
    	
 
    	
3577   Route 611, BARTONSVILLE PA
    	
 
    	
EXXON
    
	
PA0227
    	
 
    	
1130   Baltimore Pike, Glen Mills PA
    	
 
    	
EXXON
    
	
PA0272
    	
 
    	
1051   Wayne Avenue, Chambersburg PA
    	
 
    	
EXXON
    
	
PA0286
    	
 
    	
800   Market St, Port Royal PA
    	
 
    	
EXXON
    
	
PA0288
    	
 
    	
42   Main St, Beech Creek PA
    	
 
    	
EXXON
    
	
PA0290
    	
 
    	
63   White St, Brookville PA
    	
 
    	
EXXON
    
	
PA0291
    	
 
    	
3   Center St, Milroy PA
    	
 
    	
UNB
    
	
PA0300
    	
 
    	
3180   West College Ave, State College PA
    	
 
    	
EXXON
    
	
PA0301
    	
 
    	
542   South Center Street, Ebensberg PA
    	
 
    	
EXXON
    
	
PA0306
    	
 
    	
3   North Jefferson St, Mt. Union PA
    	
 
    	
EXXON
    
	
PA0307
    	
 
    	
1381   E College Ave, State College PA
    	
 
    	
EXXON
    
	
PA0314
    	
 
    	
115   S Juniata Street, Hollidaysburg PA
    	
 
    	
EXXON
    
	
PA0315
    	
 
    	
110   N Market St, Martinsburg PA
    	
 
    	
EXXON
    
	
PA0320
    	
 
    	
101   Bridge St, Jersey Shore PA
    	
 
    	
EXXON
    
	
PA0323
    	
 
    	
600   Broad St, New Bethlehem PA
    	
 
    	
EXXON
    
	
PA0324
    	
 
    	
6700   SR-36, Leeper PA
    	
 
    	
EXXON
    
	
PA0326
    	
 
    	
501   E Main St, Reynoldsville PA
    	
 
    	
EXXON
    

 

 

	
PA0328
    	
 
    	
1473   Port Matilda Hwy, Philipsburg PA
    	
 
    	
EXXON
    
	
PA0329
    	
 
    	
100   W 10th St, Tyrone PA
    	
 
    	
EXXON
    
	
PA0330
    	
 
    	
3000   Bear Creek Blvd, Wilkes-Barre PA
    	
 
    	
MOBIL
    
	
PA0333
    	
 
    	
76   Chestnut St, Bradford PA
    	
 
    	
EXXON
    
	
PA0334
    	
 
    	
1st   St & Buffalo-Pittsburgh Highway, DuBois PA
    	
 
    	
EXXON
    
	
PA0337
    	
 
    	
400   Philadelphia, Indiana PA
    	
 
    	
EXXON
    
	
PA0360
    	
 
    	
600   Beaver Avenue, Ellwood City PA
    	
 
    	
EXXON
    
	
PA0365
    	
 
    	
350   N Main St, Mercersburg PA
    	
 
    	
EXXON
    
	
PA0372
    	
 
    	
7391   Lincoln Way W, St. Thomas PA
    	
 
    	
EXXON
    
	
PA0383
    	
 
    	
4361   N Front St, Harrisburg PA
    	
 
    	
EXXON
    
	
PA0384
    	
 
    	
3377   Bear Creek Blvd, Wilkes-Barre PA
    	
 
    	
EXXON
    
	
PA0418
    	
 
    	
4612   EDGMONT AVE, BROOKHAVEN PA
    	
 
    	
MOBIL
    
	
PA0429
    	
 
    	
3050   Lehigh Street, Allentown PA
    	
 
    	
Valero
    
	
PA0430
    	
 
    	
6100   York Road, New Oxford PA
    	
 
    	
EXXON
    
	
PA0431
    	
 
    	
50   Main St (Getty), Glen Rock PA
    	
 
    	
UNB
    
	
PA0432
    	
 
    	
Route   61 & Rr # 3 (Mt Carbon), Pottsville PA
    	
 
    	
UNB
    
	
PA0433
    	
 
    	
Rt   61 Rd #5 (Fairlane), Pottsville PA
    	
 
    	
UNB
    
	
PA0434
    	
 
    	
518   Greenfield Road, Lancaster PA
    	
 
    	
EXXON
    
	
PA0435
    	
 
    	
302   Highland Drive, Mountville PA
    	
 
    	
EXXON
    
	
PA0436
    	
 
    	
1700   Pennsylvania 72, North Lebanon PA
    	
 
    	
UNB
    
	
PA0437
    	
 
    	
W.   Greenwich & Schylkill Ave, Reading PA
    	
 
    	
UNB
    
	
PA0440
    	
 
    	
312   West Main Street, New Holland PA
    	
 
    	
EXXON
    
	
PA0441
    	
 
    	
Main   & S.High Streets, Arendtsville PA
    	
 
    	
EXXON
    
	
PA0442
    	
 
    	
308   E. Wyomissing Avenue, Mohnton PA
    	
 
    	
EXXON
    

 

 

EXHIBIT B

 

PURCHASE SCHEDULE

 

(a)          This Purchase Schedule is a part of and incorporated into the PMPA Franchise Agreement to which this Exhibit is attached.

 

(b)         The price to be paid by Franchise Dealer to Distributor in accordance with the Agreement, for Products delivered to each Marketing Premises shall be Distributor’s dealer tank wagon prices (DTWs) for each respective grade of Branded Supplier’s Products as established by Distributor for the particular Marketing Premises and in effect at the time when the title to the Products passes from Distributor to Franchise Dealer in accordance with Section 2.5 of the Agreement.

 

(c)          Franchise Dealer acknowledges and agrees that, subject to subparagraph (d) below, from time to time, but no less than annually, the Conflicts Committee of Lehigh Gas GP LLC (the General Partner of Lehigh Gas Partners LP, the parent of Distributor) shall review Distributor’s overall relationship with the Franchise Dealer to ensure that it is fair to the Distributor and the Franchise Dealer.  In connection with any such review, the Distributor shall have the right to review and, at the Distributor’s expense, to audit, examine and make copies of the books and records maintained by the Franchise Dealer necessary to allow the Conflicts Committee to evaluate the fairness of the DTW prices charged by the Distributor to the Franchise Dealer (the “Audit Right”).  The Distributor may exercise the Audit Right through such auditors as the Distributor may determine in its sole discretion.  The Distributor shall (a) exercise the Audit Right only upon reasonable written notice to the Franchise Dealer and during normal business hours and (b) use its reasonable efforts to conduct the Audit Right in such a manner as to minimize the inconvenience and disruption to the Franchise Dealer.  Franchise Dealer further acknowledges and agrees that, as a result of the Conflicts Committee’s review of the relationship between the Distributor and the Franchise Dealer, the Conflicts Committee may recommend changes to the Distributor’s DTW pricing policies and procedures under this Agreement for some or all of the Marketing Premises.

 

(d)         The provisions of subparagraph (c) above shall automatically terminate and be of no further force and effect in the event that (i) Lehigh Gas Corporation and Joseph V. Topper, Jr. cease to possess, directly or indirectly, the power to direct or cause the direction of the management and policies of Lehigh Gas GP LLC, whether through ownership of voting securities, by contract, or otherwise, or (ii) Lehigh Gas GP LLC is removed as the general partner of Lehigh Gas Partners LP.

 

 

EXHIBIT C

 

CREDIT PROVISIONS

 

Pursuant to Section 2.4 of the Agreement, credit is offered In Distributor’s sole discretion, as such, Distributor may extend credit to Franchise Dealer on terms and conditions as specified by Distributor, and Distributor may modify the terms and conditions of credit, or revoke credit, at any time or from time to time.  If at any time and for any reason (or no reason) Distributor elects to revoke such credit, then the terms of payment as detailed in Section 2.3 of the Agreement shall apply.

 

The credit offered by Distributor is subject to, conditioned upon, and limited to any of the terms Distributor may require, add or amend, from time to time, including but not limited to the following:

 

1.               Default:  If Franchise Dealer defaults in the payment of any obligation or indebtedness to Distributor or any related or affiliated entities, or otherwise fails to comply with any credit terms imposed by Distributor.  Distributor may without notice or demand, in addition to any other rights it may have (including termination or non-renewal of this Agreement and the Franchise Relationship):

 

(a)                               immediately suspend deliveries of all Products; and

(b)                              apply any security which Franchise Dealer may have given to Distributor to the payment of the indebtedness or obligation.Exhibit 4.1

 

EXECUTION VERSION

 

 

ECOLAB INC.

 

$500,000,000 1.000% Notes due 2015

 

THIRD SUPPLEMENTAL INDENTURE

 

Dated as of August 9, 2012

 

to

 

Amended and Restated Indenture dated as of January 9, 2001

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

Series Trustee

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The

Bank of New York Trust Company, N.A., as successor in interest to J.P. Morgan Trust

Company, National Association and Bank One, National Association)

 

Original Trustee

 

 

 

 

This THIRD SUPPLEMENTAL INDENTURE (this “Third Supplemental Indenture”) dated as of August 9, 2012, among ECOLAB INC., a Delaware corporation (the “Company”), WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Series Trustee” and for purposes of this Third Supplemental Indenture and the Notes, the “Trustee”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. (formerly known as The Bank of New York Trust Company, N.A.) (the “Original Trustee”).

 

RECITALS

 

WHEREAS, the Company has heretofore executed and delivered to the Original Trustee an amended and restated indenture, dated as of January 9, 2001 (the “Existing Indenture,” and, together with this Third Supplemental Indenture, the “Indenture”) providing for the issuance by the Company from time to time of its debt securities to be issued in one or more series;

 

WHEREAS, the Company, in the exercise of the power and authority conferred upon and reserved to it under the provisions of the Existing Indenture and pursuant to appropriate resolutions of the Board of Directors, has duly determined to make, execute and deliver to the Series Trustee this Third Supplemental Indenture to the Existing Indenture in order to issue a new series of debt securities to be designated as the “1.000% Notes due 2015” (the “Notes”), and to set forth the terms that will be applicable thereto and the forms thereof;

 

WHEREAS, the Company has duly determined to appoint Wells Fargo Bank, National Association as Series Trustee, Security Registrar and Paying Agent under the Indenture with respect to the Notes (but only with respect to the Notes) and Wells Fargo Bank, National Association is willing to accept such appointment with respect to the Notes;

 

WHEREAS, the Company is entering into this Third Supplemental Indenture with the Original Trustee and the Series Trustee to evidence and provide for the acceptance of appointment thereunder by the Series Trustee with respect to the Notes (but only with respect to the Notes), to add to or change any of the provisions of the Existing Indenture as shall be necessary to provide for or facilitate the administration of the trusts thereunder by more than one Trustee pursuant to Section 8.1(j) and Section 8.1(k) of the Existing Indenture and to make certain amendments to the Existing Indenture to expressly permit the appointment of the Series Trustee as Trustee for the Notes (but only with respect to the Notes);

 

WHEREAS, the Company has requested that the Original Trustee enter into this Third Supplemental Indenture in connection with the foregoing amendments and the Company, for the sole and limited purpose of compliance with the requirements of Article VIII of the Existing Indenture, and in accordance with Section 8.4 and Section 11.5 of the Existing Indenture, has delivered an Officer’s Certificate and Opinion of Counsel to the Original Trustee;

 

WHEREAS, Sections 2.1, 2.3 and 8.1 of the Existing Indenture provide, among other things, that the Company and the Trustee may, without the consent of Holders, enter into indentures supplemental to the Existing Indenture to provide for specific terms applicable to any series of notes and to add to the covenants of the Company for the benefit of the Holders of each series of notes (and if such covenants are to be for the benefit of less than all series of notes, stating that such covenants are expressly being included solely for the benefit of such series);

 

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WHEREAS, all things necessary to make the Notes, when executed by the Company and authenticated and delivered by the Series Trustee or any Authenticating Agent and issued upon the terms and subject to the conditions set forth hereinafter and in the Indenture against payment therefor, the valid, binding and legal obligations of the Company and to make this Third Supplemental Indenture a valid, binding and legal agreement of the Company, have been done;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the sufficiency and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

 

APPLICATION OF THIRD SUPPLEMENTAL INDENTURE
 AND CREATION OF NOTES

 

Section 1.01        Application of this Third Supplemental Indenture.

 

Notwithstanding any other provision of this Third Supplemental Indenture, pursuant to Section 8.1(d) of the Existing Indenture, the provisions of this Third Supplemental Indenture, including the covenants set forth herein, are expressly being included solely for the benefit of the Holders of the Notes. The Notes constitute a series of notes as provided in Section 2.3 of the Existing Indenture.

 

Section 1.02        Effect of the Third Supplemental Indenture

 

(a)         With respect to the Notes only, the Existing Indenture shall be supplemented pursuant to Sections 2.1, 2.3 and 8.1 thereof to amend Section 8.1(k) of the Existing Indenture (regarding the appointment of a successor Trustee by entering into a supplemental indenture without the consent of the Holders) by replacing such section in its entirety with the following:

 

(k) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee or if other than the Person named as the “Trustee” in the first paragraph of this Indenture (or a successor to such Person pursuant to the applicable provisions of this Indenture) (for purposes of this Section 8.1(k), herein called the “Original Trustee”), the identity of a Trustee for such Securities, and, at the election of the Company, other Securities of any series to be issued thereafter pursuant to this Indenture (a “Series Trustee”), and, if not the Series Trustee, the identity of each Security Registrar, Paying Agent or Authenticating Agent with respect to such Securities, and such additions or changes to any provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.11, it being understood that anything contained herein or in any Board Resolution, Officer’s Certificate or supplemental indenture to the contrary notwithstanding, that (i) nothing herein shall constitute such Trustees co-trustees of the same trust, (ii) each such Trustee shall be a trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee, (iii) the Series Trustee shall have all the rights, powers, trusts, duties and obligations of the Original Trustee with respect to, and only with respect to, such Securities, (iv) the

 

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Original Trustee shall have no rights, powers, trusts, duties or obligations with respect to such Securities, (v) no Trustee hereunder shall have any liability for any acts or omissions of any other Trustee hereunder and (vi) no appointment of a Series Trustee shall become effective until the acceptance of the appointment by the Series Trustee in writing;

 

(a)         With respect to the Notes only, the Existing Indenture shall be supplemented pursuant to Sections 2.1, 2.3 and 8.1 thereof to amend Section 2.2 of the Existing Indenture (regarding the form of the Trustee’s certificate of authentication) by replacing such section in its entirety with the following:

 

Section 2.2 FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION. The Trustee’s certificate of authentication (a “CERTIFICATE OF AUTHENTICATION”) on all Securities will be in substantially the following form:

 

“Date:

 

This is one of the Securities referred to in the within-mentioned Indenture.

 

                                                                             Wells Fargo Bank, National Association, as Series Trustee

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorized Signatory”
    	
 
    

 

If at any time an Authenticating Agent is appointed with respect to any series of Securities, then the Authenticating Agent’s certificate of authentication to be borne on the Securities of each such series will be substantially as follows:

 

“Date:

 

This is one of the Securities referred to in the within-mentioned Indenture.

 

	
[                        ],   as Authenticating Agent
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorized Officer”
    	
 
    

 

Section 1.03        Designation and Amount of Notes.

 

The Notes shall be known and designated as the “1.000% Notes due 2015”. The Notes shall be unsecured and unsubordinated Obligations of the Company. The initial maximum aggregate principal amount of Notes that may be authenticated and delivered under this Third Supplemental Indenture shall not exceed $500,000,000, except for Notes authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, Notes pursuant to

 

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Sections 2.8, 2.9, 2.11 and 12.3 of the Existing Indenture. Notwithstanding the foregoing, the Company may from time to time, without giving notice to or seeking the consent of the Holders of the Notes, issue debt securities having the same terms (except for the issue date, and, in some cases, the public offering price and the first Interest Payment Date) and ranking equally and ratably with the Notes (“Additional Notes”). The Notes and Additional Notes shall together constitute one series for purposes of the Existing Indenture and this Third Supplemental Indenture, including, without limitation, waivers, amendments, redemptions and offers to purchase.

 

Section 1.04          Terms; Denominations; Form of Security.

 

(a)           The Notes are issuable in fully registered form as Registered Global Securities without coupons, in denominations of $2,000 or any amount in excess thereof which is an integral multiple of $1,000, and shall be in substantially the form of Exhibit A hereto. The Depository Trust Company shall act as Depositary for the Notes. Notwithstanding the foregoing, the Notes shall be issued as Registered Securities in definitive form to each Person that the Depositary identifies as the beneficial owner of the Notes represented by the Registered Global Securities upon surrender by the Depositary of the Registered Global Security if:

 

(i)           the Depositary notifies us that it is no longer willing or able to act as a depositary for such Registered Global Security or ceases to be a clearing agency registered under the Exchange Act, and the Company shall not have appointed a successor Depositary within 90 days of that notice or becoming aware that the Depositary is no longer so registered;

 

(ii)          an event of default has occurred and is continuing, and the Depositary requests the issuance of certificated notes; or

 

(iii)         the Company determines not to have the Notes represented by a Registered Global Security.

 

(b)           The terms and provisions contained in the forms of Note attached hereto as Exhibit A shall constitute, and are hereby expressly made, a part of this Third Supplemental Indenture and the Company, by its execution and delivery of this Third Supplemental Indenture, expressly agrees to such terms and provisions and to be bound thereto. Any of the Notes may have such letters, numbers or other marks of identification and such notations, legends and endorsements as the officers executing the same may approve (execution thereof to be conclusive evidence of such approval) and are not inconsistent with the provisions of the Indenture (and which do not affect the rights, duties or immunities of the Original Trustee or the Series Trustee), or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any securities exchange or automated quotation system on which the Notes may be listed.

 

Section 1.05          Payment of Principal and Interest,

 

(a)           The Notes shall mature, and the principal of the Notes shall be due and payable in U.S. Dollars to the Holders thereof, together with all accrued and unpaid interest thereon: on August 9, 2015 (the Stated Maturity of principal of the Notes).

 

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(b)           The Notes shall bear interest at 1.000% per annum from and including August 9, 2012, or from the most recent Interest Payment Date on which interest has been paid or provided for, until the principal thereof becomes due and payable, and on any overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at the same rate per annum. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on the Notes shall be payable semi-annually in arrears in U.S. Dollars on February 9 and August 9 of each year, commencing on February 9, 2013 (the Interest Payment Dates with respect to the Notes). Payments of interest shall be made to the Person in whose name a Note (or predecessor Note) is registered (which shall initially be the Depositary) at the close of business on the January 25 or July 25, as the case may be, next preceding such Interest Payment Date (the Regular Record Date with respect to the Notes).

 

(c)           For so long as the Notes are represented by one or more Registered Global Securities, all payments of principal and interest shall be made by the Company through the Paying Agent by wire transfer of immediately available funds in U.S. Dollars to the Depositary or its nominee, as the case may be, as the registered owner of the Registered Global Securities representing such Notes. In the event that definitive Notes shall have been issued, all payments of principal and interest shall be made by the Company through the Paying Agent by wire transfer of immediately available funds in U.S. Dollars to the accounts of the registered Holders thereof; provided, that the Company may elect to make such payments at the office of the Paying Agent in The City of Minneapolis; and provided further, that the Company may at its option pay interest by check to the registered address of each Holder of a definitive Note.

 

(d)           The Notes shall trade in the Depositary’s Same-Day Funds Settlement System until Stated Maturity (or until they are subject to acceleration pursuant to Article V of the Existing Indenture) and secondary market trading activity in the Notes may be required by the Depositary to settle in immediately available funds.

 

(e)           The Notes are subject to redemption by the Company in whole or in part in the manner described herein.

 

Section 1.06      Sinking Fund.

 

The Notes are not subject to any sinking fund.

 

Section 1.07      Defeasance and Covenant Defeasance.

 

The defeasance and covenant defeasance provisions of Article X of the Existing Indenture will apply to the Notes.

 

Section 1.08      Tax Matters.

 

The Company will not pay additional amount on the Notes held by Non-U.S. Persons in respect of any tax, assessment or governmental change withheld or deducted.

 

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ARTICLE II

 

DEFINITIONS

 

Section 2.01          Definitions.

 

(a)           All capitalized terms used herein and not otherwise defined below shall have the meanings ascribed thereto in the Existing Indenture.

 

(b)           The following terms for purposes of the Trust Indenture Act shall have the following meanings:

 

“indenture trustee” or “institutional trustee” shall mean the Series Trustee and not the Original Trustee.

 

“indenture securities” means the Notes.

 

“indenture security holder” means a Holder of the Notes.

 

“indenture to be qualified” means this Third Supplemental Indenture.

 

(c)           The following are definitions used in this Third Supplemental Indenture and to the extent that a term is defined both herein and in the Existing Indenture, the definition in this Third Supplemental Indenture shall govern with respect to the Notes.

 

“Attributable Debt” in respect of a Sale and Leaseback Transaction means, as of any particular time, the present value (discounted at the rate of interest implicit in the terms of the lease involved in the Sale and Leaseback Transaction, as determined in good faith by the Company) of the obligation of the lessee thereunder for net rental payments (excluding, however, any amounts required to be paid by such lessee, whether or not designated as rent or additional rent, on account of maintenance and repairs, services, insurance, taxes, assessments, water rates and similar charges or any amounts required to be paid by such lessee thereunder contingent upon monetary inflation or the amount of sales, maintenance and repairs, insurance, taxes, assessments, water rates or similar charges) during the remaining term of such lease (including any period for which such lease has been extended or may, at the option of the lessor, be extended).

 

“Below Investment Grade Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the Notes are rated below Investment Grade by each of the Rating Agencies on any day within the 60-day period (which 60-day period will be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (1) the occurrence of a Change of Control and (2) public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control; provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event) if the Rating Agencies making the reduction in rating to which this definition would

 

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otherwise apply do not announce or publicly confirm or inform the Series Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).

 

“Change of Control” means the occurrence of any of the following:

 

(1)           the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and those of its Subsidiaries, taken as a whole, to any person, other than the Company or one of its Subsidiaries;

 

(2)           the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors; or

 

(3)           the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person, other than the Company or one or more of its Wholly-Owned Subsidiaries, becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of the Company’s Voting Stock.

 

Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (1) the Company becomes a direct or indirect Wholly-Owned Subsidiary of a holding company and (2) (A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly of more than 50% of the Voting Stock of such holding company.

 

The term “person,” as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term (as measured from the date of redemption) of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of four Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the

 

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average of all such quotations, or (iii) if only one Reference Treasury Dealer Quotation is received, such quotation.

 

“Consolidated Net Tangible Assets” means the aggregate amount of assets (less applicable reserves and other properly deductible items) of the Company and its Restricted Subsidiaries after deducting therefrom (a) all goodwill, tradenames, trademarks, patents, unamortized debt discount and expense and other like intangibles and (b) all current liabilities (excluding any current liabilities for money borrowed having a maturity of less than 12 months but by its terms being renewable or extendible beyond 12 months from such date at the option of the borrower), all as reflected in the Company’s latest audited consolidated balance sheet contained in the Company’s most recent annual report to its stockholders prior to the time as of which “Consolidated Net Tangible Assets” shall be determined.

 

“Continuing Director” means, as of any date of determination, any member of the Company’s Board of Directors who (1) was a member of the Company’s Board of Directors on August 9, 2012; or (2) was nominated for election, elected or appointed to the Company’s Board of Directors with the approval of a majority of the Continuing Directors who were members of the Company’s Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director).

 

“Corporate Trust Office” means the office of the Series Trustee at which the corporate trust business of the Series Trustee with respect to the Third Supplemental Indenture is, at any particular time, principally administered, which office is, as of the date on which this Third Supplemental Indenture is dated, located in Minneapolis, Minnesota.

 

c/o                          Wells Fargo Bank, National Association

MAC N9311-110

625 Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Ecolab Administrator

 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P) or the equivalent investment grade credit rating from any additional Rating Agency or Rating Agencies selected by the Company.

 

“Moody’s” means Moody’s Investors Service Inc., a subsidiary of Moody’s Corporation, and its successors.

 

“Operating Property” means any manufacturing or processing plant, warehouse or distribution center, together with the land upon which it is situated located within the United States or in Canada and owned and operated as of the date of this Third Supplemental Indenture or thereafter by the Company or any Restricted Subsidiary and having a net book value on the date as of which the determination is being made of more than 1.0% of Consolidated Net

 

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Tangible Assets other than property which, in the opinion of the Board of Directors of the Company, is not of material importance to the total business conducted by the Company and its Restricted Subsidiaries taken as a whole.

 

“Quotation Agent” means any Reference Treasury Dealer appointed by the Company.

 

“Rating Agency” means (1) each of Moody’s and S&P; and (2) if either Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company as a replacement agency for Moody’s or S&P, or both, as the case may be.

 

“Reference Treasury Dealer” means (i) each of Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (or their respective affiliates that are Primary Treasury Dealers) and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer, and (ii) two other Primary Treasury Dealers selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

“Restricted Subsidiaries” means all Subsidiaries other than Unrestricted Subsidiaries.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors.

 

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

“Unrestricted Subsidiaries” means (1) any Subsidiary substantially all of whose physical properties are located, or substantially all of whose business is carried on, outside the United States and Canada, (2) any finance Subsidiary and (3) any Subsidiary of an Unrestricted Subsidiary. In addition, the Board of Directors may designate any other Subsidiary of the Company (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any capital stock of, or owns or holds any mortgage on any Operating Property of, the Company or any Restricted Subsidiary of the Company; provided that the Subsidiary to be so designated has total assets at the time of such designation of $5 million or less.

 

“Voting Stock” of any specified Person as of any date means the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person.

 

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“Wholly-Owned Subsidiary” of any specified Person means a Subsidiary all of whose Voting Stock is owned by the Company or a Wholly-Owned Subsidiary, the accounts of which are consolidated with those of the Company in its consolidated financial statements.

 

Section 2.02          Other Definitions.

 

	
Term
    	
 
    	
Defined in Section
    
	
 
    	
 
    	
 
    
	
“Additional Notes”
    	
 
    	
1.03
    
	
“Debt”
    	
 
    	
5.01
    
	
“mortgage”
    	
 
    	
5.01
    

 

ARTICLE III

 

OPTIONAL REDEMPTION

 

The Company may redeem the Notes at any time or from time to time, in whole or in part, in each case, at the Company’s option at a Redemption Price equal to the greater of:

 

(i)                                          100% of the principal amount of the Notes to be redeemed on the Redemption Date; and

 

(ii)                                       as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed on that Redemption Date (not including any portion of those payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points

 

plus, in each case, accrued and unpaid interest to the Redemption Date. Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the relevant Regular Record Date according to the Notes and the Indenture.

 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each registered Holder of the Notes to be redeemed by the Company or by the trustee on its behalf; provided that notice of redemption may be mailed more than 60 days prior to the Redemption Date if the notice is issued in connection with a defeasance of such Notes or a satisfaction and discharge of such Notes.

 

If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by lot by the Trustee.

 

Except as otherwise set forth in this Article III, the terms and conditions upon which and the manner in which the Notes may be redeemed by the Company pursuant to this Article III are governed by the provisions of Article XII of the Existing Indenture; provided, however, that Section 12.5 of Article XII of the Existing Indenture shall not apply to the Notes.

 

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ARTICLE IV

 

CHANGE OF CONTROL

 

Section 4.01        Change of Control.

 

(a)             Upon the occurrence of a Change of Control Repurchase Event, unless all of the Notes have been called for redemption pursuant to Article III hereof, each Holder of Notes shall have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof) of such Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to the date of repurchase (the “Change of Control Payment”).

 

(b)             Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the public announcement of the transaction or transactions that constitutes or may constitute a Change of Control, the Company shall mail, or cause to be mailed, a notice (a “Change of Control Offer”) to each Holder, with a copy to the Series Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and specifying:

 

(i)           that the Change of Control Offer is being made pursuant to this Section 4.01 and that all Notes tendered will be accepted for payment;

 

(ii)          the Change of Control Payment and the purchase date, which shall be a Business Day no earlier than 30 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”);

 

(iii)         the CUSIP numbers for the Notes;

 

(iv)         that any Note not tendered will continue to accrue interest;

 

(v)          that, unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest after the Change of Control Payment Date;

 

(vi)         that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender such Notes to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day preceding the Change of Control Payment Date;

 

(vii)        that Holders will be entitled to withdraw their election referred to in clause (vi) if the Paying Agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election to have such Notes purchased;

 

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(viii)          that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion will be equal to $2,000 in principal amount or an integral multiple of $1,000 in excess thereof; and

 

(ix)            if the notice is mailed prior to the date of consummation of the Change of Control, that the Change of Control Offer is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice.

 

(c)           The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.01, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.01 by virtue of such conflict.

 

(d)           On the Change of Control Payment Date, the Company will, to the extent lawful:

 

(i)              accept for payment all Notes or portions thereof (in integral multiples of $1,000) properly tendered pursuant to the Change of Control Offer;

 

(ii)             deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of such Notes properly tendered; and

 

(iii)            deliver or cause to be delivered to the Series Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions of such Notes being purchased by the Company.

 

(e)           The Paying Agent will promptly deliver to each Holder of Notes properly tendered the Change of Control Payment for such Notes, and the Series Trustee will promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of such Notes surrendered, if any; provided that each new Note will be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof.

 

(f)            The Company shall not be required to make a Change of Control Offer upon a Change of Control Repurchase Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.01 applicable to a Change of Control Offer made by the Company and purchases all Notes properly tendered and not withdrawn under such Change of Control Offer.

 

ARTICLE V

 

COVENANTS

 

The covenants set forth in this Article V shall be applicable to the Company in addition to the covenants in Article III of the Existing Indenture, which shall in all respects be applicable in

 

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respect of the Notes; provided that the covenant contained in Section 3.7 of the Existing Indenture shall not be applicable to the Notes.

 

Section 5.01         Restrictions on Liens.

 

The Company will not, and will not permit any Restricted Subsidiary to, issue, assume or guarantee any indebtedness for money borrowed (herein referred to as “Debt”) if such Debt is secured by any mortgage, security interest, pledge, lien or other encumbrance (herein referred to as a “mortgage”) upon any Operating Property of the Company or any Restricted Subsidiary or any shares of stock or Debt of any Restricted Subsidiary, whether owned at the date of the issuance of the Notes or thereafter acquired, without effectively securing the Notes equally and ratably with such Debt for at least the period such other Debt is so secured unless, after giving effect thereto, the aggregate amount of all Debt so secured (not including Debt permitted in clauses (1) through (7) in the following sentence), together with all Attributable Debt in respect of Sale and Leaseback Transactions involving Operating Properties pursuant to clause (2) of Section 5.02 in existence at such time would not exceed 15% of Consolidated Net Tangible Assets.

 

The foregoing restriction does not apply to, and therefore shall be excluded in computing secured Debt for the purpose of such restriction, Debt secured by:

 

(1)        mortgages on Operating Property, shares of stock or Debt of any entity existing at the time such entity becomes a Restricted Subsidiary, provided that such mortgages are not incurred in anticipation of such entity’s becoming a Restricted Subsidiary;

 

(2)        mortgages on Operating Property, shares of stock or Debt existing at the time of acquisition thereof by the Company or a Restricted Subsidiary or mortgages thereon to secure the payment of all or any part of the purchase price thereof, or mortgages on Operating Property, shares of stock or Debt to secure any Debt incurred prior to, at the time of, or within 180 days after, the latest of the acquisition thereof or, in the case of Operating Property, the completion of construction, the completion of improvements or the commencement of substantial commercial operation of such Operating Property for the purpose of financing all or any part of the purchase price thereof, such construction or the making of such improvements;

 

(3)        mortgages to secure Debt owing to the Company or to a Restricted Subsidiary;

 

(4)        mortgages on Operating Property, shares of stock or Debt existing at the date of the initial issuance of the Notes;

 

(5)        mortgages on Operating Property, shares of stock or Debt of a Person existing at the time such Person is merged into or consolidated with the Company or a Restricted Subsidiary or at the time of a sale, lease or other disposition of the properties of a Person as an entirety or substantially as an entirety to the Company or a Restricted Subsidiary, provided that such mortgage was not incurred in anticipation of such merger or consolidation or sale, lease or other disposition;

 

13

 

(6)          mortgages on Operating Property, shares of stock or Debt in favor of the United States or any state, territory or possession thereof (or the District of Columbia), or any department, agency, instrumentality or political subdivision of the United States or any state, territory or possession thereof (or the District of Columbia), to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any Debt incurred for the purpose of financing all or any part of the purchase price or the cost of constructing or improving the Operating Property subject to such mortgages; or

 

(7)          extensions, renewals or replacements, in whole or in part, of any mortgage referred to in the foregoing clauses (1) through (6), provided, however, that the principal amount of Debt secured thereby shall not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement.

 

Section 5.02           Restrictions on Sale and Leaseback; Transactions.

 

Sale and Leaseback Transactions by the Company or any Restricted Subsidiary with a third party of any Operating Property are prohibited (except for temporary leases for a term, including renewals, of not more than 60 months and except for leases between the Company and a Restricted Subsidiary or between Restricted Subsidiaries) unless the net proceeds of such Sale and Leaseback Transactions are at least equal to the fair market value (as determined in good faith by the Board of Directors of the Company) of the Operating Property to be leased and either:

 

(1)          the Company or such Restricted Subsidiary would (at the time of entering into such arrangement) be entitled, as described in clauses (1) through (7) of the second paragraph of Section 5.01, without equally and ratably securing the Notes, to issue, assume or guarantee Debt secured by a mortgage on such Operating Property;

 

(2)          the Attributable Debt of the Company and its Restricted Subsidiaries in respect of such Sale and Leaseback Transactions (other than such Sale and Leaseback Transactions as are referred to in clause (1) or (3) of this paragraph), plus the aggregate principal amount of Debt secured by mortgages on Operating Properties then outstanding (excluding any such Debt secured by mortgages described in clauses (1) through (7) of the second paragraph of Section 5.01) which do not equally and ratably secure the Notes, would not exceed 15% of Consolidated Net Tangible Assets; or

 

(3)          the Company, within 180 days after the sale or transfer, applies or causes a Restricted Subsidiary to apply an amount equal to the greater of the net proceeds of such sale or transfer or fair market value of the Operating Property (as determined in good faith by the Board of Directors of the Company) so sold and leased back at the time of entering into such Sale and Leaseback Transaction to

 

(a)           retire (other than any mandatory retirement, mandatory repayment or sinking fund payment or by payment at maturity) Notes or other Debt of the Company or a Restricted Subsidiary (other than Debt subordinated to the Notes) having a Stated Maturity more than 12 months from the date of such application

 

14

 

or which is extendible at the option of the obligor thereon to a date more than 12 months from the date of such application or

 

(b)         purchase, construct or develop one or more Operating Properties (other than that involved in such Sale and Leaseback Transaction); 

 

provided that the amount to be so applied pursuant to this clause (3) will be reduced by the principal amount of Notes delivered within 180 days after such sale or transfer to the Series Trustee for retirement and cancellation.

 

Section 5.03           Other Limitations.

 

(a)             Neither the Company nor any Restricted Subsidiary may transfer an Operating Property or shares of stock or Debt of a Restricted Subsidiary to an Unrestricted Subsidiary.

 

(b)             An Unrestricted Subsidiary may not be designated a Restricted Subsidiary unless, after giving effect thereto, the aggregate amount of all Debt of the Company and its Restricted Subsidiaries secured by mortgages which would otherwise be subject to the restrictions of Section 5.01 and the Attributable Debt in respect of all Sale and Leaseback Transactions pursuant to clause (2) under Section 5.02 in existence at such time does not at the time exceed 15% of Consolidated Net Tangible Assets.

 

ARTICLE VI

 

SERIES TRUSTEE, SECURITY REGISTRAR AND PAYING AGENT WITH RESPECT TO THE NOTES

 

Section 6.01          Appointment by the Company of Wells Fargo Bank, National Association as Series Trustee, etc.

 

Pursuant to the Existing Indenture as amended by this Third Supplemental Indenture, the Company hereby appoints Wells Fargo Bank, National Association as Series Trustee, Security Registrar and Paying Agent under the Indenture with respect to the Notes (but only with respect to the Notes) with all the rights, powers, trusts, duties and obligations of Trustee, Security Registrar and Paying Agent under the Indenture with respect to the Notes (but only with respect to the Notes) with like effect as if originally named as such in the Indenture.

 

Section 6.02          Acceptance by Wells Fargo Bank, National Association of Appointment of Series Trustee

 

Wells Fargo Bank, National Association hereby accepts its appointment as Series Trustee, Security Registrar and Paying Agent under the Indenture with respect to the Notes (but only with respect to the Notes) and accepts all of the rights, powers, trusts, duties and obligations of Trustee, Security Registrar and Paying Agent under the Indenture with respect to the Notes (but only with respect to the Notes), upon the terms and conditions set forth herein and therein, with like effect as if originally named as such in the Indenture. Pursuant to the Existing Indenture, there shall continue to be vested in the Original Trustee all of its rights, powers, trusts, duties and obligations as Trustee under the Existing Indenture with respect to all of the series of

 

15

 

securities as to which it has served and continues to serve as Trustee, and the Original Trustee shall have no rights, powers, trusts, duties and obligations with respect to the Notes.

 

Section 6.03           Eligibility of Series Trustee.

 

The Series Trustee hereby represents that it is qualified and eligible under the provisions of the Trust Indenture Act and Section 6.11 of the Existing Indenture to accept its appointment as Series Trustee with respect to the notes.

 

Section 6.04           Concerning the Series Trustee.

 

Neither the Original Trustee nor the Series Trustee assumes any duties, responsibilities or liabilities by reason of this Third Supplemental Indenture other than as set forth in the Existing Indenture and, in carrying out its responsibilities hereunder, each shall have all of the rights, powers, privileges, protections, duties and immunities which it possesses under the Existing Indenture. The Original Trustee and the Series Trustee shall not constitute co-trustees of the same trust, and each of the Original Trustee and the Series Trustee shall be trustee of a trust or trusts under the Indenture separate and apart from any trust or trusts under the Indenture administered by the other trustee. The Original Trustee shall have no liability for any acts or omissions of the Series Trustee and the Series Trustee shall have no liability for any acts or omissions of the Original Trustee.

 

References in this Third Supplemental Indenture to sections of the Existing Indenture that require or permit actions by the Original Trustee with respect to the Notes shall be deemed to require or permit actions only by the Series Trustee and the Original Trustee shall have no responsibility therefor.

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.01           Trust Indenture Act Controls.

 

If any provision of this Third Supplemental Indenture limits, qualifies or conflicts with another provision that is required or deemed to be included in this Third Supplemental Indenture by the Trust Indenture Act, the required or deemed provision shall control.

 

Section 7.02           Notices.

 

Any notice or communication shall be in writing and delivered in person or mailed by first-class mail or sent by facsimile (with a hard copy delivered in person or by mail promptly thereafter) and addressed as follows:

 

if to the Company:

 

Ecolab Inc.

370 Wabasha Street North

St. Paul, Minnesota 55102

 

16

 

Attention: General Counsel

Facsimile: (651) 293-2471

 

if to the Series Trustee:

 

Wells Fargo Bank, National Association

MAC N9311-110

625 Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Ecolab Administrator

Facsimile: (612) 667-2160

 

if to the Original Trustee:

 

The Bank of New York Mellon Trust Company, N.A.

Two North LaSalle Street

Suite 1020

Chicago, Illinois 60602

Attention: Corporate Trust

Facsimile: (312) 827-8542

 

The Company or the Series Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Notwithstanding any other provision of this Third Supplemental Indenture, the Existing Indenture or any Note, where this Third Supplemental Indenture, the Existing Indenture or any Note provides for notice of any event (including any notice of redemption or repurchase) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given if given to DTC (or its designee) pursuant to the standing instructions from DTC or its designee, including by electronic mail in accordance with accepted practices at DTC.

 

Section 7.03           Governing Law.

 

THIS THIRD SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section 7.04           Multiple Originals.

 

The parties may sign any number of copies of this Third Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. One signed copy is enough to prove this Third Supplemental Indenture.

 

Section 7.05           Headings.

 

The headings of Articles and Sections of this Third Supplemental Indenture have been inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

 

17

 

Section 7.06           Not Responsible for Recitals or Issuance of Notes.

 

The recitals contained herein and in the Notes, except the Series Trustee’s certificates of authentication, shall be taken as the statements of the Company, and the Original Trustee and the Series Trustee do not assume any responsibility for their correctness. The Original Trustee and the Series Trustee make no representation as to the validity or sufficiency of this Third Supplemental Indenture or of the Notes. The Original Trustee and the Series Trustee shall not be accountable for the Company’s use of the proceeds from the Notes or for monies paid over to the Company pursuant to this Third Supplemental Indenture. All of the provisions contained in the Existing Indenture in respect of the rights, privileges, and immunities of the Trustee, including but not limited to its rights to be compensated, reimbursed and indemnified, shall be applicable to the Original Trustee in respect of this Third Supplemental Indenture as fully and with like force and effect as though set forth in full herein.

 

Section 7.07           Adoption, Ratification and Confirmation.

 

The Existing Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects hereby adopted, ratified and confirmed.

 

[Signature Page Follows]

 

18

 

IN WITNESS WHEREOF, the parties have caused this Third Supplemental Indenture to be duly executed as of the date first written above.

 

	
 
    	
ECOLAB INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ching-Meng Chew
    
	
 
    	
Name: Ching-Meng Chew
    
	
 
    	
Title:   Vice President and   Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Series Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Prokosch
    
	
 
    	
Name: Richard Prokosch
    
	
 
    	
Title:   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Original Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lawrence M. Kusch
    
	
 
    	
Name: LAWRENCE M. KUSCH
    
	
 
    	
Title: VICE PRESIDENT
    

 

Signature Page to Third Supplemental Indenture

 

 

EXHIBIT A

 

[Form of Face of Note]

 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

CUSIP [          ]

 

ECOLAB INC.

 

1.000% NOTE DUE 2015

 

	
$[        ]
    	
No.:   R-[    ]
    

 

ECOLAB INC., a Delaware corporation (herein called the “Company”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of $[     ] ([      ] DOLLARS) or such other Principal Amount as shall be set forth on Schedule I hereto on August 9, 2015 and to pay interest thereon at the rate of 1.000% per annum from August 9, 2012 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, on February 9 and August 9 of each year, commencing February 9, 2013 (each an “Interest Payment Date”), until the principal hereof is paid or made available for payment.

 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, except as provided in the Indenture hereinafter referred to, be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the Regular Record Date for such interest, which will be the January 25 and July 25, as the case may be, immediately preceding each Interest Payment Date. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and either may be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a Special Record Date for the

 

 

payment of such defaulted interest to be fixed by the Series Trustee, notice whereof shall be given to the Holders not less than ten days prior to such Special Record Date, or may be paid at any time in any other lawful manner, all as more fully provided in the Indenture. Payment of the principal of and interest on this Note will be made at the office or agency of the Company maintained for that purpose, or in such other office or agency as may be established by the Company pursuant to the Indenture (initially the principal corporate trust office of the Series Trustee in Minneapolis, Minnesota (the “Corporate Trust Office”)), in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company through the Paying Agent (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer to an account maintained by the Person entitled thereto as specified in the Security Register. Payments of principal and interest at maturity will be made against presentation of this Note at the Corporate Trust Office (or such other office as may be established pursuant to the Indenture), by check or wire transfer.

 

Reference is hereby made to the further provisions of this Note set forth on the reverse side hereof, which further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

Unless the Certificate of Authentication hereon has been executed by the Series Trustee or an Authenticating Agent under the Indenture referred to on the reverse hereof by the manual signature of one of its authorized officers, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be signed in its name by the manual or facsimile signature of its Chief Executive Officer, its President or one of its Vice Presidents and attested by the manual or facsimile signature of its Secretary or one of its Assistant Secretaries.

 

Date:

 

	
 
    	
 
    	
ECOLAB INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
ATTEST:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Secretary
    	
 
    	
 
    

 

 

Series Trustee’s Certificate of Authentication

 

This is one of the Notes described in the Indenture.

 

Dated:

 

	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Series Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

 

[Form of Reverse of Note]

 

ECOLAB INC.

 

1.000% NOTE DUE 2015

 

1.                                       This Note is one of a duly authorized issue of securities of the Company designated as its 1.000% Notes due 2015 (the “Notes”) issued under an Amended and Restated Indenture dated as of January 9, 2001 (herein called, together with the Third Supplemental Indenture referred to below, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as trustee, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Company, the Original Trustee (as defined below), the Series Trustee (as defined below) and the Holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered.

 

2.                                       This Note is one of the notes of the series designated on the face hereof, limited to an aggregate principal amount not to exceed $500,000,000, which amount may be increased at the option of the Company if in the future it determines that it may wish to sell additional Notes of this series, as specified in the Third Supplemental Indenture among the Company, The Bank of New York Mellon Trust Company, N.A., as original trustee (herein called the “Original Trustee,” which term includes any successor trustee thereto under the Indenture) and Wells Fargo Bank, National Association, as series trustee for the Notes (herein called the “Series Trustee,” which term includes any successor trustee thereto with respect to the Notes under the Indenture) and as Security Registrar and Paying Agent with respect to the Notes, dated as of August 9, 2012, establishing the form and certain terms of the Notes pursuant to the Indenture (the “Third Supplemental Indenture”). References herein to “this series” mean the series of Notes designated on the face hereof.

 

3.                                       The Company may redeem the Notes at any time or from time to time, in whole or in part, in each case, at the Company’s option at a Redemption Price equal to the greater of

 

(i)                                     100% of the principal amount of the Notes to be redeemed on the Redemption Date; and

 

(ii)                                  as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed on that Redemption Date (not including any portion of those payments of interest accrued as of the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 10 basis points

 

plus, in each case, accrued and unpaid interest to the Redemption Date. Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be payable on the Interest Payment Date to the registered holders as of the close of business on the relevant Regular Record Date according to the Notes and the Indenture.

 

 

Any notice to holders of Notes of a redemption pursuant to this paragraph 3 hereof will include the appropriate calculation of the Redemption Price, but does not need to include the Redemption Price itself. The actual Redemption Price, calculated as described above, will be set forth in an Officer’s Certificate of the Company delivered to the Series Trustee no later than two Business Days prior to the redemption date.

 

4.                                       Upon the occurrence of a Change of Control Repurchase Event, unless all Notes have been called for redemption pursuant to paragraph 3 of this Note, each Holder of the Notes shall have the right to require the Company to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof) of such Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes plus accrued and unpaid interest thereon, if any, to the date of repurchase. “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event, as such terms are defined in the Indenture. The Change of Control Offer will be made in accordance with the terms specified in the Indenture.

 

5.                                       If an Event of Default with respect to the Notes shall occur and be continuing, the Series Trustee or the Holders of not less than 25% in principal amount of the Outstanding Notes may declare the principal of all Notes due and payable in the manner and with the effect provided in the Indenture. The Indenture provides that such declaration and its consequences may, in certain events, be annulled by the Holders of a majority in principal amount of the Outstanding Notes.

 

6.                                       The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of Notes under the Indenture at any time by the Company and the Series Trustee with the consent of the Holders of a majority in aggregate principal amount of Notes at the time Outstanding. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and; of any Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof; whether or not notation of such consent or waiver is made upon this Note.

 

7.                                       No reference herein to the Indenture and no provisions of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, places and rate, and in the coin or currency, herein prescribed.

 

8.                                       As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note may be registered on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company to be maintained for that purpose, or at such other office or agency as may be established by the Company for such purpose pursuant to the Indenture (initially the principal corporate trust office of the Series Trustee in Minneapolis, Minnesota), duly endorsed by, or accompanied by a written

 

 

instrument of transfer in form satisfactory to the Company, and duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.

 

9.                                       The Notes are issuable only in fully registered form, without coupons, in denominations of $2,000 or any amount in excess thereof which is an integral multiple of $1,000. As provided in the Indenture, and subject to certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes in authorized denominations, as requested by the Holder surrendering the same.

 

10.                                 No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

11.                                 Prior to the due presentment of this Note for registration of transfer or exchange, the Company, the Series Trustee and any agent of the Company or the Series Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Series Trustee, nor any such agent shall be affected by notice to the contrary.

 

12.                                 Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months. Interest shall be payable to and excluding any Interest Payment Date.

 

13.                                 The Series Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Series Trustee.

 

14.                                 This Note shall not be valid until authenticated by the manual signature of the Series Trustee or an Authenticating Agent.

 

15.                                 Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUT (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

16.                                 Each Holder of this Note covenants and agrees by such Holder’s acceptance thereof to comply with and be bound by the foregoing provisions.

 

17.                                 All terms used in this Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.

 

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE

 

 

	
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE   OF ASSIGNEE
    

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing                                attorney to transfer said Security on the books of the Company, with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
				

 

NOTICE:                      THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN INSTRUMENT IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

 

Signature Guarantee:

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

 

Schedule I

 

SCHEDULE OF TRANSFERS AND EXCHANGES

 

The following increases or decreases in Principal Amount of this Global Security have been made:

 

	
Date of
   Exchange
    	
 
    	
Amount of Decrease   in
   Principal Amount of
   this Global Security
    	
 
    	
Amount of Increase
   in Principal Amount of
   this Global Security
    	
 
    	
Principal Amount of   this
   Global Security
   following such Decrease
   or Increase
    	
 
    	
Signature of
   Authorized
   Signatory of trustee
   or Custodian

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