Document:

Exhibit 10.36

 

UNBRANDED RACK SALES AGREEMENT

 

It
is agreed this 21st day of December, 2009 between CITGO Petroleum
Corporation, a Delaware corporation, having a place of business at 1293
Eldridge Parkway, Houston, Texas 77210, hereinafter called “CITGO,” and JEI DISTRIBUTING, a Limited Liability Company, having a
principal office and place of business at 718 S BUCHANAN STREET,
SUITE C, LAFAYETTE, LA  70501
hereinafter called “Unbranded Marketer”.

 

WHEREAS,
CITGO is in the business of refining and marketing gasoline and diesel fuel,
and Unbranded Marketer desires to purchase Ultra Low Sulfur Diesel “ULSD”
(collectively referred to as the “Products”) from CITGO for resale on an
unbranded basis.  CITGO desires to sell
such Product(s) to Unbranded Marketer on an unbranded basis.

 

WHEREAS,
nothing herein shall be construed to allow Unbranded Marketer the right to hold
out the Products purchased hereunder as CITGO’s product.  Nor shall Unbranded Marketer have the right
to utilize any of CITGO’s or its affiliate’s trademarks, trade names or trade
dress in connection with the Products sold hereunder.

 

WHEREAS, this Unbranded Rack
Sales Agreement (“Agreement”) cancels and supersedes all prior and
contemporaneous representations, inducements, agreements, amendments and
addendums, commitments and undertakings with respect to the subject matter of
this Agreement.

 

NOW,
THEREFORE, CITGO and Unbranded Marketer agree as follows:

 

1.             TERM.           This Agreement
shall be effective for a five (5) year period beginning December 1,
2009 and shall continue on a year to year basis until otherwise
terminated.  Notwithstanding the
foregoing, either party may terminate this agreement, without cause, upon
providing thirty (30) days written notice.

 

2.             QUANTITIES.           Unbranded Marketer
shall purchase and lift or accept delivery of quantities of Products as set
forth below during the respective monthly periods and CITGO shall sell and
deliver the specified quantities of Products as defined in subparagraph  2.c. (“Contract Volume”).  Unbranded Marketer hereby acknowledges and
agrees that the purchase and ratable lifting of the monthly quantities of
Products specified herein by Unbranded Marketer are reasonable, important and
of material significance. Unbranded Marketer understands and agrees that any
failure by Unbranded Marketer to purchase a minimum of ninety percent (90%) of
the monthly quantity of Products listed below during any month on a Ratable
Basis shall be a violation of this Agreement. 
CITGO shall have no obligation at any time to provide more than the
Contract Volume listed in subparagraph 2.c. 
For purposes of this Agreement, the term “Ratable Basis” shall mean
weekly unbranded volume that does not change from week to week by more than
10%.

 

a.             CITGO may
supply Unbranded Marketer more than the Contract Volume; however, CITGO’s
exercise of its right to do so does not obligate CITGO to continue to sell
Products in volumes which exceed such amount.

 

1

 

b.             If there is any change
affecting Unbranded Marketer’s business operations which materially increases
or decreases Unbranded Marketer’s requirements for Contract Volume, Unbranded
Marketer may request CITGO in writing to amend this Agreement.  CITGO shall consider but shall not be
obligated to agree to any amendment proposed by Unbranded Marketer.

 

c.             Quantities
shall be determined at time and place of loading. With respect to all
deliveries under this Agreement, Unbranded Marketer elects to have quantities
determined by liquid measure Net
Gallons  method. Gross Gallons shall mean gallons which have
not been adjusted for temperature correction.  
Net Gallons shall mean gallons temperature corrected to 60° Fahrenheit
and one (1) standard atmosphere in accordance with prevailing ASTM
procedures. In any jurisdiction where applicable law dictates the method
of measurement, such method shall be used.

 

CONTRACT VOLUME

 

PRODUCT(S):  See Addendum        Terminal(S): See Addendum

 

3.             DELIVERY
OF UNBRANDED PRODUCTS.           Products will
be made available at terminals or other locations selected by CITGO or, upon
mutual agreement, may be delivered to destination by transportation selected by
CITGO. Unbranded Marketer shall strictly comply with all applicable rules and
regulations of terminals and facilities at which Unbranded Marketer receives
Products from CITGO. Unbranded Marketer shall ensure that all trucks, tankers
and lines are clean and ready to receive CITGO’s Products, so that said
Products are not mixed, blended or adulterated with any other substance or
product. CITGO or the terminal operator may refuse to make delivery into any
vehicle which, in the reasonable judgment of CITGO or the terminal operator, is
unsafe or inadequate. Unbranded Marketer agrees to provide such proof of insurance
as reasonably required by CITGO covering Unbranded Marketer’s liability for any
negligent or willful acts it commits in connection with the loading,
transporting and delivery of Products. Title and risk of loss on all Products
covered by this Agreement shall pass to Unbranded Marketer at the time and
place of delivery. Time and place of delivery shall be when and at the point
that Products pass connections between the terminal’s truck rack or pipeline
flange and Unbranded Marketer or its agent’s receiving connections, transport
trucks, tank cars, or vessels.  All
demurrage is Unbranded Marketer’s responsibility.

 

a.             Unbranded Marketer shall
provide or arrange delivery for all Products. 
Whether Unbranded Marketer uses its own transportation equipment to transport
Products, or engages a  carrier to do
so, Unbranded Marketer or carrier, as the case may be, shall execute and
deliver to CITGO a Customer Access Agreement and/or Carrier Access Agreement
before transportation equipment will be allowed to enter the terminal.

 

b.             Loading of
transportation equipment provided by Unbranded Marketer or for Unbranded
Marketer’s account is on a first-come, first-serve basis.

 

2

 

4.             PRICES.           Unbranded
Marketer shall pay CITGO’s rack posting in
effect at time and place of delivery. Such prices will be established by CITGO
on an FOB, terminal basis, or other point of sale basis, including, upon mutual
agreement, on a delivered basis. Unbranded Marketer shall also pay CITGO
amounts equivalent to any tax, duty or impost now or hereafter imposed by the
United States and or any state and/or municipality, and/or any other
governmental authority on all Temperature Corrected gallons under this
Agreement.

 

5.             TERMS
OF PAYMENT AND CREDIT.

a.             Unbranded Marketer agrees to
pay CITGO in accordance with such terms as CITGO’s Credit Department, in its
sole discretion may from time to time prescribe in writing.  The failure by Unbranded Marketer to pay any
invoice within the terms then prescribed by CITGO’s Credit Department may
result in the restriction of credit, the denial of access to the petroleum
terminals from which Unbranded Marketer is authorized to obtain its supply of
petroleum products.  Further, failure to
make payment within payment terms authorizes the imposition of finance charges
in an amount equal to the lesser of (i) the maximum amount allowed by
applicable law or (ii) one and one-half percent (1.5%) per month.  Unbranded Marketer agrees to provide CITGO’s
Credit Department with a current, audited or certified financial statement
within ninety (90) days after the end of each fiscal year and such other
business related information as may be requested by CITGO’s Credit Department
from time to time.

 

b.             At the time of execution of
this Agreement and thereafter upon CITGO’s request, in order to maintain a
credit line, Unbranded Marketer may be required to furnish CITGO with letters
of credit that may be requested by CITGO.

 

c.             If Unbranded Marketer fails
to comply with the terms and conditions of payment and credit established by
CITGO, or if CITGO has reasonable grounds for insecurity with respect to
Unbranded Marketer’s performance of any of Marketer’s obligations  under this Agreement, then, in addition to
all other rights and remedies afforded to CITGO under this Agreement and
applicable law, CITGO may take such action as CITGO deems reasonable.

 

6.             ALLOCATION.  If CITGO, because of a
shortage of crude oil, raw materials, products, or refining capacity, either of
its own, or of its other regular sources of supply, or in the industry
generally, or because of governmental regulations, or for any reason, deems
that it may be unable to meet all of its supply requirements, CITGO may
restrict deliveries of Products without liability and may allocate CITGO’s
supply of Products among its customers and classes of customers in any manner
which CITGO in its sole judgment deems appropriate. Unbranded Marketer agrees
to be bound by any such allocation. During the period of such allocation, the
provisions of Paragraph 2 relating to volume requirements shall not be
effective, and the quantity deliverable under this Agreement shall then be such
quantity as CITGO determines.  Upon
cessation of any such period of allocation neither CITGO nor Unbranded Marketer
shall be obligated to make up any quantities omitted pursuant to the provisions
herein.

 

3

 

7.             TAXES
AND LICENSES. Unbranded Marketer shall pay to CITGO, on demand,
all charges that CITGO is required by any governmental authority to collect (“Charges”),
unless Unbranded Marketer provides appropriate licenses, certificates or
similar documents satisfactory to CITGO that exempt CITGO from collecting such
Charges.  If any license, certificate or
similar document of Unbranded Marketer is revoked, suspended or non-renewed,
Unbranded Marketer thereafter is responsible for paying all Charges directly
and Unbranded Marketer shall immediately notify CITGO of such revocation,
suspension or non-renewal.

 

8.             CITGO’S
MARKETING RIGHTS.         CITGO may from
time to time add, change, modify or discontinue any designations and grades of
Products.

 

9.             CLAIMS.        Any claim for
defect or variance in quality of product furnished hereunder shall be made in
writing to CITGO within five (5) days after discovery of the defect or
variance. CITGO shall be furnished samples adequate to test the products
claimed to be defective and shall be afforded the opportunity to take its own
samples. Any and all claims not made within the time and in the manner herein
provided shall be deemed waived and released by the Unbranded Marketer.

 

10.           WARRANTIES
AND DISCLAIMERS.

 

a.             CITGO warrants
that at the time the Products are delivered to Unbranded Marketer, the
Products: (1) will meet, in all material respects, CITGO’s specifications
for the Products, and (2) will meet, where applicable, the octane rating
or sulfur content specified by CITGO for the Products.  CITGO may change its specification of the
Products from time to time upon notification to the Unbranded Marketer.  Unbranded Marketer may terminate this
Agreement upon thirty (30) days written notice to CITGO if Unbranded Marketer
does not agree to CITGO’s specification change.

 

b.             Unbranded
Marketer shall not redesignate, regrade, mix, blend or otherwise adulterate the
Products sold hereunder except as may otherwise be permitted by the
Environmental Protection Agency regulation 40 CFR Part 80.

 

c.             CITGO MAKES NO OTHER
WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE.

 

11. LIMITATION OF LIABILITY.

 

a.             UNBRANDED
MARKETER’S SOLE AND EXCLUSIVE REMEDY FOR ANY CLAIM ARISING FROM OR IN
CONNECTION WITH ANY ALLEGED FAILURE OF OR DEFECT IN ANY PRODUCTS SOLD BY CITGO
(WHETHER THAT CLAIM IS FOR BREACH OF CONTRACT OR WARRANTY OR IS UNDER TORT,
STRICT LIABILITY, STATUTE OR OTHERWISE) IS (1) AT CITGO’S OPTION,
REPLACEMENT OF THE FAILED, DEFECTIVE OR NON-CONFORMING PRODUCTS OR REIMBURSEMENT
OF THE PURCHASE PRICE THEREOF, AND (2) REIMBURSEMENT OF THE REASONABLE
COST 

 

4

 

OF
REPAIR OR REPLACEMENT OF ANY PARTS THAT ARE DAMAGED DIRECTLY BY THE USE OF THE
FAILED, DEFECTIVE OR NON-CONFORMING PRODUCTS.

 

b.             IN NO EVENT
WILL CITGO BE LIABLE OR RESPONSIBLE FOR ANY INCIDENTAL OR CONSEQUENTIAL LOSSES
OR DAMAGES (INCLUDING WITHOUT LIMITATION ECONOMIC LOSS AND LOSS OF PROFITS) AND
SPECIAL OR PUNITIVE DAMAGES, WHETHER UNDER TORT, BREACH OF CONTRACT OR WARRANTY,
STRICT LIABILITY, STATUTE OR OTHERWISE.

 

12.           FORCE
MAJEURE.    In the event that either
party hereto is hindered, delayed or prevented by ‘force majeure” in the
performance of this Agreement, the obligation of the party so affected shall be
suspended and proportionally abated during the continuance of the force majeure
condition and the party so affected shall not be liable in damages or otherwise
for its failure to perform. The term “force majeure” as used herein shall mean
any cause whatsoever beyond the control of either party hereto, including, but
not limited to (a) act of God, flood, fire, explosion, war, riot, strike
and other labor disturbance; (b) failure in, or inability to obtain on
reasonable terms, raw materials, finished products, transportation facilities,
storage facilities and/or manufacturing facilities; (c) diminution,
nonexistence or redirection of supplies as a result of compliance by CITGO,
voluntary or otherwise, with any request, order, requisition or necessity of
the government or any governmental officer, agent or representative purporting
to act under authority, or with any governmental or industry rationing,
allocation or supply program; and (d) CITGO’s inability to meet the demand
for its products at CITGO’s normal and usual source points for supplying
Unbranded Marketer, regardless of whether CITGO may have been forced to divert
certain supplies from such source points in order to alleviate shortages at
other distribution points.

 

If by reason of any force majeure condition CITGO
shall be unable to supply the requirements of all of its customers of any
product covered by this Agreement, CITGO’s obligation while such condition
exists shall, at its option, be reduced and apportioned to the extent necessary
in its sole judgment and discretion. 
Unbranded Marketer shall not hold CITGO responsible in any manner for
any losses or damages which Unbranded Marketer may claim as a result of any
such apportionment. CITGO shall not be required to make up any deficiency in
any product not delivered as a result of any such apportionment. In no event
shall any force majeure condition affect Unbranded Marketer’s obligation to pay
for product when due.

 

13.           COMPLIANCE WITH LAWS.           Unbranded
Marketer is solely responsible for compliance with, all federal, state and
local laws, regulations and ordinances applicable to their respective business
activities including, without limitation, laws, regulations and ordinances
pertaining to health, safety, and environmental matters.  Unbranded Marketer shall procure and maintain
in force all permits and licenses which are required for Unbranded Marketer to
operate its business and to perform and satisfy its duties, obligations and
liabilities under this Agreement.

 

5

 

14.           INDEMNITY

 

[DISCLAIMER:  The Parties understand and agree
that some portions of this indemnity are not applicable because they arise
solely from the sale of CITGO-branded gasoline. All other indemnity obligations
expressed in this agreement are applicable.]

 

a.             Unbranded Marketer hereby
releases and agrees to defend, indemnify and hold CITGO, its agents, servants,
employees, successors and assigns, harmless from and against any and all
claims, suits, losses, obligations, liabilities, injuries, and damages,
including attorneys’ fees and costs of litigation, for death, personal injury,
property damage or other claim arising out of any failure by Unbranded Marketer
to perform, fulfill or observe any obligation or liability of Unbranded Marketer
set forth in this Agreement or any negligent act or omission by Unbranded
Marketer or any cause or condition of any kind directly or indirectly arising
in connection with the use, occupancy, maintenance, upkeep, repair, replacement
or operation of any place of business, service station or marketing premises
(including but not limited to adjacent sidewalks, drives, curbs. signs, poles
and all other fixtures and equipment located thereon) which place of business,
service station or marketing premise is or was either directly or indirectly
owned, leased, operated, supplied, franchised, or licensed by or through
Unbranded Marketer.

 

b.             Unbranded Marketer hereby
releases and agrees to defend and indemnify and hold CITGO, its agents,
servants, employees, successors and assigns, harmless from and against any and
all claims, suits, losses, obligations, injuries, liabilities and damages,
including attorneys’ fees and costs of litigation, resulting from the shipment,
delivery, use, storage, handling, and sale of petroleum products, including,
but not limited to, the seepage or leakage of any petroleum products from
storage tanks, pumps, dispensers and piping and fire or explosion at any place
of business, service station or marketing premises, which place of business,
service station or marketing premises is or was either directly or indirectly
owned, leased, operated, supplied, franchised or licensed by or through
Unbranded Marketer.

 

c.             Unbranded Marketer shall
defend, indemnify and hold CITGO, its agents, servants, employees, successors
and assigns, harmless from and against any fines, penalties, taxes, judgments,
charges, or expenses, (including attorneys’ fees and costs of litigation), for
violations of any law, ordinance or regulation caused by any act or omission,
whether negligent or otherwise, of Unbranded Marketer or its agents, servants,
employees, contractors, dealers, Unbranded Marketers or licensees.

 

d.             Notwithstanding the
foregoing provisions, Unbranded Marketer will not be responsible for violations
of any law, ordinance or regulation by CITGO, nor for

 

6

 

any acts or omissions
arising from the sole negligence of CITGO, its agents, or employees.

 

15.           INSURANCE.

 

a.             The following
insurance shall be obtained and maintained in force,  which CITGO specifies from time to time during the term of
this Agreement.  CITGO’s minimum
insurance requirements shall include:

 

i.              Commercial
General Liability Insurance, Occurrence Form, or the equivalent, covering (1) premises
operations, (2) completed operations and product liability, and (3) contractual
liability, all with a minimum combined single limit of $5,000,000 each
occurrence  for Bodily Injury and
Property Damage including Personal Injury.

 

ii.             Business Auto
Insurance covering all owned, hired or otherwise operated non-owned vehicles
with a minimum combined single limit of $1,000,000 each occurrence for Bodily
Injury and Property Damage. 
Notwithstanding the above specified limits, should higher limits be
required by the Motor Carrier Act of 1980 or other act or law governing the
transportation or handling of products, UNBRANDED MARKETER shall provide such
increased limits.

 

iii.            Worker’s
Compensation Insurance with statutory limits covering all of UNBRANDED MARKETER’s employees in any
jurisdiction in which such employees are located.

 

iv.            Employer’s
Liability Insurance with a minimum of $1,000,000 each occurrence.

 

v.             Property
Insurance for any of CITGO’s property in UNBRANDED MARKETER’s possession, with
such Property Insurance covering full replacement cost and naming CITGO as loss
payee.

 

b.             CITGO shall provide with 90
days’ prior written notice of any changes in CITGO’s insurance requirements.

 

c.             At the time of execution of
this Agreement and during the term of this Agreement, CITGO may request a
certificate of insurance (“Certificate”) or insurance policy (“Policy”) in form
and substance acceptable to CITGO evidencing compliance with CITGO’s insurance
requirements.  CITGO’s failure to demand
or receive any Certificate or Policy is not a waiver by CITGO of this
requirement. In addition, CITGO shall be named as an additional insured in
15(a)(i) and 15(a)(v) above, and UNBRADED MARKETER shall require any
insurer  issuing a policy or otherwise
providing coverage hereunder, whether held or obtained by  UNBRANDED MARKETER or its subcontractor and
whether or not required by this Agreement, expressly waive any right to
subrogation against CITGO or recovery from any amount which CITGO may recover
from  UNBRANDED

 

7

 

MARKETER or its
subcontractor, or any other party, covered or uninsured, or which  UNBRANDED MARKETER or its subcontractor may
recover from any other party, covered or uninsured, except for CITGO’s sole
negligence.

 

16.           ASSIGNMENT/TRANSFER.

 

a.             CITGO may
assign this Agreement and any or all of its rights, duties, obligations and
liabilities under this Agreement, in whole or in part, to any third party.

 

b.             This Agreement may not be
assigned by UNBRANDED MARKETER except with CITGO’s prior written consent. In
the event more than thirty-five percent (35%) of the ownership interest of
UNBRANDED MARKETER’s business is sold, transferred, or otherwise disposed of,
UNBRANDED MARKETER must notify CITGO thirty (30) days prior to the transfer of
any such ownership interest in  UNBRANDED
MARKETER’s business.

 

17.           RELATIONSHIP OF THE PARTIES.           UNBRANDED
MARKETER is an independent contractor, and CITGO shall not have any authority,
actual control, supervision, or direction over any aspect of UNBRANDED MARKETER’s
business or operations including, without limitation, the price at which
UNBRANDED MARKETER resells Products. 
This Agreement does not establish any relationship of partnership, joint
venture, employment or agency between CITGO and UNBRANDED MARKETER, nor does
this Agreement establish CITGO’s contractual right to control UNBRANDED
MARKETER.  UNBRANDED MARKETER may not act
as an agent or employee of CITGO, or make any commitments or incur any expense
of obligation on behalf of CITGO, unless expressly authorized in writing by
CITGO.

 

18.           COMPLIANCE WITH OTHER AGREEMENTS.          UNBRANDED MARKETER shall
comply with all other agreements between UNBRANDED MARKETER and CITGO.

 

19.           NOTICES.             All notices and other
communications under this Agreement, unless otherwise provided, must be in
writing and must be delivered by certified or registered mail, postage prepaid,
and properly addressed to CITGO, Attention: CITGO Contracts Department, 1293
Eldridge Parkway, Houston, TX 77077 and 
UNBRANDED MARKETER at their respective addresses shown above.  All notices and other communications are
effective upon deposit in the mail, postage prepaid.  Either party may change its address from time
to time by written notice to the other.

 

20.           GENERAL
PROVISIONS.                This Agreement
shall bind the assigns and successors of the respective parties. The right of
either party to require strict performance by the other party hereunder shall
not be affected by any previous waiver, forbearance or course of dealing. No delay
or omission of CITGO in exercising or enforcing any right or power accruing
upon any breach of this Agreement by UNBRANDED MARKETER shall impair any such
right or power, or shall be construed to be a waiver of any breach of this
Agreement, or any acquiescence therein. All notices hereunder shall be deemed
to have been sufficiently given if and when presented or mailed by certified
mail to the parties at the addresses above or such other addresses as may be
furnished to the other in writing by certified mail. All understandings and
agreements relating to the subject matter hereof either verbal or written,
except insofar as incorporated in this Agreement, are hereby

 

8

 

canceled and withdrawn. CITGO has made no
promises, claims or representations to UNBRANDED MARKETER which are not
contained in this Agreement. This Agreement constitutes the entire agreement of
the parties with respect to the subject matter hereof and may be altered only
by writing signed by the parties hereto. This Agreement shall not be binding
upon CITGO until it has been duly accepted by CITGO as evidenced by the
signature of its authorized designee. Commencement of dealing between the
parties shall not be deemed a waiver of this requirement. This Agreement shall
be governed by the laws of the State of Oklahoma.   UNBRANDED MARKETER consents to jurisdiction
and venue in the state and federal courts located within Houston, Harris
County, Texas.

 

The
parties have executed this Agreement as of the date set forth on the first page of
this Agreement.

 

 

	
  CITGO
  PETROLEUM CORPORATION

  	
   

  	
  JEI
  DISTRIBUTING

  
	
   

  	
   

  	
  A
  LIMITED LIABILITY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Terrence P. Sullivan

  	
   

  	
  By:

  	
  /s/ Stan Guidroz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name:

  	
  Terrence
  P. Sullivan

  	
   

  	
  Print
  Name:

  	
  Stan Guidroz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Mgr.,
  Wholesale Region Sales - Commercial

  	
   

  	
  Title:

  	
  President

  

 

9Exhibit 10.37

 

[Confidential treatment has been requested with respect to the omitted
portions of this exhibit. This copy omits information subject to a
confidentiality request filed with the Securities and Exchange Commission.
Omissions are designated with the characters [***]. A complete version of this
exhibit has been filed separately with the Securities and Exchange Commission
along with the request for confidential treatment.]

 

ADDENDUM
TO UNBRANDED RACK SALES AGREEMENT

 

This Addendum to Unbranded
Rack Sales Agreement (the “Addendum”) is entered into on this 21st day of December,
2009, by and between CITGO Petroleum Corporation (“CITGO”) and JEI
Distributing, a Limited Liability Company (the “Unbranded Marketer”).

 

WHEREAS, CITGO and the Unbranded
Marketer have entered into a Unbranded Rack Sales Agreement on 21 December 2009
(the “Agreement”);

 

WHEREAS, the Unbranded
Marketer has received offers from other suppliers to purchase motor fuels and
other petroleum products; and therefore, has requested that CITGO sell Ultra Low Sulfur Diesel (“ULSD”) (collectively referred to
as the “Product”) on a similar basis;

 

WHEREAS, CITGO has agreed
to sell to the Unbranded Marketer CITGO Product in accordance with the terms as
provided herein;

 

NOW THEREFORE in consideration
of the premises and covenants contained herein, it is agreed as follows:

 

1.                                      EFFECTIVE DATE: The effective date of this Addendum
shall be 21 December 2009 and shall continue thereafter unless
terminated by either party upon a thirty (30) days written notice.

 

2.                                      MARKET RELATED PRICING AND SCOPE:

 

The purchase price for the applicable Product that the Unbranded
Marketer ratably purchases from CITGO during the term of this Addendum shall be
equal to (i) the Base Price set forth herein for the applicable Product,
plus (ii) an Adder.

 

(i)                                    The Base Price for Product purchased
shall equal the [***] for the applicable product on the date immediately
preceding the date of the bill of lading. 
If such date occurs on a holiday or weekend when [***] is not published,
the date used for pricing shall be the date immediately preceding the date of
the bill of lading on which the [***] were published.  However, should the [***] not be published
due to a reason other than that the date of lifting is a holiday or weekend,
the price shall be the [***] as of the immediately preceding date that [***]
was published adjusted by any change in prices of similar product in other
markets that occurred between such date and the date of lifting.

 

1

 

(ii)                                 CITGO’s adder fee (“Adder”) for each
Terminal and Product where this pricing formula applies is as follows (in
$/gallon):

 

	
  Terminal

  	
   

  	
  ULSD

  	
   

  
	
  CITGO Lake Charles, LA

  	
   

  	
  $

  	
  0.0150

  	
   

  
	
  Motiva Kenner, LA

  	
   

  	
  $

  	
  0.0250

  	
   

  
	
  Placid Port Allen, LA

  	
   

  	
  $

  	
  0.0255

  	
   

  

 

All products receiving dye will be charged
an additional $0.0035 per gallon.

All products receiving TX LED will be
charged an additional $0.0250 per gallon.

 

The Adder may change from time to time based on any cost increases
incurred by CITGO related to transportation, terminaling, additives, and other
routine costs to the respective Products and terminals.  CITGO will notify the Unbranded Marketer in
writing of any changes to the Adder or ethanol Base Price at least thirty (30)
days prior to making the adjustment.

 

The purchase price as calculated in this Section 2
is hereafter referred to as the “Market Related Price.”

 

3.                                      PAYMENT AND BILLING TERMS:

 

The Unbranded Marketer
shall pay CITGO’s Market Related Price for each net gallon as shown on the terminal
truck bill of lading.  A discount for
early timely payments is not offered.

 

Quantities shall be determined at time and place of
loading. All measurements with regard to deliveries shall be corrected to 60° Fahrenheit
and one (1) standard atmosphere in accordance with prevailing ASTM
procedures. In any jurisdiction where applicable law dictates the method of
measurement, such method shall be used.

 

4.                                      PERFORMANCE CRITERIA:

 

The Unbranded Marketer agrees to lift Product on a
Ratable Basis as defined in the Agreement. 
If during any month Unbranded Marketer purchases, other than as a result
of supply disruptions or force majeure, less than 90% or more than 

 

2

 

110% of the monthly Contract Volume as defined in
the Agreement, Unbranded Marketer shall be in violation of the Agreement and
CITGO may terminate both the Agreement and/or this Addendum upon twenty-four
(24) hours prior written notice.

 

CONTRACT
VOLUME (Gallons)

 

	
  TERMINAL:

  	
   

  	
  Lake Chs, LA

  (CITGO)

  	
   

  	
  Kenner, LA

  (Motiva)

  	
   

  	
  Port Allen, LA

  (Placid)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCT:

  	
   

  	
  ULSD

  	
   

  	
  ULSD

  	
   

  	
  ULSD

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  February

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  March

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  April

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  May

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  June

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  July

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  August

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  September

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  October

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  November

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
  December

  	
   

  	
  760,000

  	
   

  	
  350,000

  	
   

  	
  390,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  9,120,000

  	
   

  	
  4,200,000

  	
   

  	
  4,680,000

  	
   

  

 

IN WITNESS WHEREOF, this
Addendum was executed on the date above written.

 

	
  CITGO PETROLEUM CORPORATION

  	
   

  	
  JEI DISTRIBUTING, a

  
	
   

  	
   

  	
  LIMITED LIABILITY COMPANY

  
	
   

  	
   

  	
   

  
	
  /s/ I.T. White

  	
   

  	
  /s/ Stan Guidroz

  
	
  (Signature)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
  I.T. White

  	
   

  	
  Stan Guidroz

  
	
  (Printed Name)

  	
   

  	
  (Printed Name)

  
	
   

  	
   

  	
   

  
	
  General Mgr. Business
  Analysis & Enhancement

  	
   

  	
  President

  
	
  (Title)

  	
   

  	
  (Title)

  

 

3

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