BRANDED PRODUCT SUPPLY AND TRADEMARK
LICENSE AGREEMENT
[MARATHON BRAND]
This BRANDED PRODUCT SUPPLY AND TRADEMARK
LICENSE AGREEMENT [MARATHON BRAND] (“Agreement”) is
dated July 26, 2010, 2010, and between Marathon Petroleum Company
LLC, a Delaware limited liability company having its principal
place of business at 539 South Main Street, Findlay, Ohio 45840
(“MPC”) and The Pantry Inc., a Delaware corporation
having its principal place of business at 305 Gregson Drive, Cary,
NC 27511 (“BUYER”).
MPC has assets
and resources deployed in a supply, transportation, planning and
logistics system to determine and meet demand for refined petroleum
products.
MPC seeks to
advance the objectives of this system in part through jobbers
licensed by MPC to sell, and to supply other licensed sellers of,
Marathon branded motor vehicle fuels and other products.
BUYER desires
to participate as a jobber in the MPC system.
MPC is willing
to license its trademarks and supply MARATHON® branded products
to BUYER as such a jobber, upon and subject to the terms and
conditions set forth below.
MPC and BUYER
therefore agree:
1.1
Definitions. For purposes of this Agreement, the following
terms shall have the indicated meanings:
Brand
Signage: a sign, point of
sale materials, advertising, or promotional materials bearing or
including the Marks, logos associated with the Marathon Cards, or
logos associated with the STP® trademark owned by The Armor All
/ STP Products Company ("AASTP"), and canisters, chassis, poles and
other equipment associated with the sign.
Branded
Outlets: the Retail
Outlets, the Bulk Plants and other outlets or storage facilities
supplied with Products by BUYER and agreed to by MPC.
Branded
Outlet: one of the
Branded Outlets.
Bulk
Plants: the storage
facilities designated as Bulk Plants on Exhibit B attached to, and
as amended from time to time as called for under, this
Agreement.
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
EFT: electronic funds transfer.
Exhibit A
Volume: the monthly
quantities specified for each of the Products indicated on Exhibit
A , attached to, and as amended from time to time as called for
under, this Agreement.
Marathon
Cards: proprietary and
third party credit cards, charge cards, fleet cards, debit cards,
prepaid cards and other payment devices issued, endorsed or
sponsored from time to time by MPC. On the date of this Agreement,
the Marathon Cards are the Marathon, Marathon Premier, Marathon
Platinum MasterCard, Marathon Fleet, Marathon Cash Card, and
SuperFleet cards.
Marks: trademarks, services marks, trade names, trade
dress, brand names, grade designations, logos, insignia, canopy
striping and other color schemes and design schemes used by MPC in
the advertising and marketing of petroleum products, now and as
developed, adopted or acquired in the future.
Maximum
Volume: [***] of the
Exhibit A Volume of Gasoline.
Minimum
Volume: [***] of the
Exhibit A Volume of Gasoline.
Party: MPC or BUYER, as applicable. Together, MPC and
BUYER are sometimes referred to as Parties.
PMPA: The Petroleum Marketing Practices Act, 15 U.S.C.
Sections 2801, et seq.
Product: one of the Products.
Ratable
Lifting: The
purchase of Products by BUYER, directly from MPC, [***], with such
frequency as will satisfy the Requirements of the Branded Outlets
throughout an entire month; except that the purchase by BUYER, on
any day of a month, of a volume of Gasoline in excess of [***] of
that number of gallons determined by dividing the month’s
Exhibit A Volume by the number of days in the month is not the
purchase of Gasoline by Ratable Lifting, provided however, in the
event of supply disruption for which MPC allocates a plan, formula
or method to equitably reduce demand for Products, equitably
allocate supply of Products among [***] and [***] will, [***] to
the [***] above in the [***].
Requirements: the quantity of Products that satisfies the
sales expectations of MPC and BUYER for a Branded Outlet (1) on
execution of this Agreement; and (2) when Exhibit A
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
is amended to
add to, or delete one or more Branded Outlets from, Exhibit B, or
otherwise to provide for the consuming public’s demand for
Products at one or more Branded Outlets.
Retail
Outlets: the retail motor
fuel outlets listed on Exhibit “B”, attached to, and as
amended from time to time as called for under, this
Agreement.
SDN
List: the Specially
Designated Nationals and Blocked Persons List, 31 Code of Federal
Regulations, Part 500, Chapter V, Appendix A.
Sublicensee: any person or entity sublicensed by BUYER to
utilize the Marks in connection with the sale of Products supplied
by BUYER.
1.2
Term. This Agreement will be effective as to each Party upon
execution by both Parties, with respect to the period commencing on
July 1, 2010 and ending on June 30, 2013, unless terminated earlier
by a Party as provided for in this Agreement. At such time (but not
later than [***]) that MPC offers BUYER a proposed agreement
renewing the franchise relationship within he meaning of PMPA,
commencing July 1, 2013, BUYER shall have the opportunity to accept
such proposed renewal agreement or to renew this Agreement for the
period of [***], commencing July 1, 2013 and ending on [***],
unless terminated earlier by a Party as provided for in this
Agreement. Such election to renew this Agreement commencing July 1,
2013 must be made, if at all, by delivery of written notice to MPC
on or before [***]. Provided that BUYER elected to renew this
Agreement for the period commencing July 1, 2013 and ending on
[***] (and thereby rejecting the separate agreement offered by MPC
commencing July 1, 2013), at such time (but not later than [***])
that MPC offers BUYER a proposed agreement renewing the franchise
relationship within he meaning of PMPA, commencing [***], BUYER
shall have he opportunity to accept such proposed renewal agreement
or to renew this Agreement for the period of [***], commencing
[***] and ending on December 31, 2017, unless terminated earlier by
a Party as provided for in this Agreement. Such election to renew
this Agreement commencing [***] must be made, if at all, by
delivery of written notice to MPC on or before [***]. The
conclusion of each such period of renewal referred to in this
Section 1.2 (i.e., June 30, 2013, [***] and December 30, 2017)
shall constitute the conclusion of a term, or the expiration date,
within the meaning of the PMPA. The period from July 1, 2010 to
June 30, 2013, and renewals exercised pursuant to this Section 1.2,
if any, shall constitute Term as used in this Agreement.
2. PURCHASE
AND DELIVERY OF PRODUCTS
2.1
Purchase and Sale. MPC will supply to BUYER, and BUYER will
purchase from MPC, the Requirements of each Branded Outlet during
the Term. In furtherance and not limitation of the foregoing, BUYER
agrees [***] to purchase Products by Ratable Lifting each month of
the Term.
2.2
Volume Limitation.
If
MPC determines, in good faith, that BUYER is not purchasing a
Product by Ratable Lifting in a month, MPC may, but is not
obligated to, [***]. MPC will utilize its
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
terminal
reporting systems to implement limitations on BUYER’s
purchases of the Product in the month. If, however, MPC’s
terminal reporting systems are not available, or if MPC determines
that its terminal reporting systems have failed or are unable to
implement a limitation on BUYER’s purchases of the Product,
in the month, MPC will notify BUYER of the unavailability, failure
or inability. BUYER agrees that, upon receipt of MPC’s notice
in any month, [***].
2.3
Minimum Purchase Obligation. Section 2.1 notwithstanding,
Buyer agrees to purchase from MPC, in each month during the Term,
not less than the Minimum Volume. If BUYER fails to purchase the
Minimum Volume in (a) [***]; or (b) [***]; then in addition to
[***] which may be [***], but is not obligated to,
[***] in each [***] to [***], as applicable, [***]. Exhibit A will
be deemed to be amended, and MPC will issue a revised Exhibit A, to
reflect such reduction. BUYER’s purchase of the Minimum
Volume in any month or period of months does not constitute
fulfillment of BUYER’s purchase obligations under any
Improvement Agreement, Marketer’s Agreement, Image Agreement,
Master Agreement, Conversion Agreement, Branding Agreement, or
similar agreement between the Parties, however denominated, and
whenever executed by them.
2.4
Maximum Purchase Volume. Section 2.1 notwithstanding, MPC
may, but is not obligated to, sell more than the Maximum Volume to
BUYER in any month. BUYER agrees that it will not purchase more
than the Maximum Volume in any month without the prior written
agreement of MPC, provided that MPC has provided BUYER with [***]
of Products in the month.
(a) BUYER
and MPC agree that they will periodically, but no less frequently
than [***] in each 12 month period commencing on [***] during the
Term, review Exhibits A and B to consider (1) the addition or
deletion of Branded Outlets from Exhibit B, (2) change in
Requirements at one or more existing Branded Outlet, and (3) any
resultant recalculation of the Exhibit A Volume. Exhibits A and B
will be amended according to the Parties agreement on one or more
of these factors. The Exhibit A Volume will be increased by [***].
The Exhibit A Volume will be decreased by [***]. Any increases and
decreases in the Exhibit A Volume associated with the addition or
deletion of a Branded Outlet will be effective as of [***], or the
removal and return, as applicable, of the Marks and any MPC-owned
equipment, [***].
(b) Exhibits
A and B may be amended in electronic form via electronic
communication expressing the acceptance of the amended Exhibits by
MPC and BUYER.
(c) No
amendment of Exhibit A or B pursuant to this Section 2.5 will alter
or relieve the Parties respective obligations under any Improvement
Agreement, Marketer’s Agreement, Image Agreement, Master
Agreement, Conversion Agreement, Branding Agreement, or other
agreement between them.
(d) Exhibits
A and B will be amended to add an outlet or storage facility that
is, at the time, the subject of another agreement for the supply of
Products to which MPC is a party if, but only if:
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
(1) MPC determines, in
its reasonable judgment, that amending Exhibits A and B to add the
outlet or storage facility will not result in the breach of, or
actionable interference with, any contractual relationship between
the operator of the outlet or storage facility and the supplier of
Products to the outlet or storage facility; and
(2) BUYER assumes the
obligations of the other supplier under any
Improvement Agreement, Marketer’s
Agreement, Image Agreement, Master Agreement, Conversion Agreement,
Branding Agreement, or other agreement with MPC relating to the
outlet or storage facility.
(e) Exhibit
A will be amended to add or remove any light products terminals
designated by MPC in its commercially reasonable discretion, which
designation is subject to change on a [***] from time to time,
provided that any modification is made in writing on or before
[***]; provided however, that the Exhibit A to this Agreement shall
be [***], in accordance with the Master Conversion Agreement
between the Parties with a term commencing July 1, 2010.
2.6
Products Characteristics. Products to be sold and delivered
hereunder shall be of the kinds, grades, octanes, brands and
quality generally sold by MPC at the time and place of delivery to
BUYER. BUYER will not supply or sell Gasoline having octane levels
different than the octane levels MPC is at that time offering
without the prior written consent of MPC. [***] the right [***]
from time to time, and to [***].
2.7
Purchase and Sale of Motor Oils, Lubricants. BUYER agrees to
purchase and offer a representative stock of Marathon branded motor
oils and lubricants for sale at all Branded Outlets operated by
BUYER, and will use best efforts to cause a representative stock of
Marathon branded motor oils and lubricants to be offered for sale
at Branded Outlets operated by Sublicensees.
(a) Subject
to change or substitution as provided below, BUYER agrees to pay
the following prices for the Products sold hereunder:
(1) for Gasolines and
Distillates: [***]; and
(2) for motor oils,
lubricants, industrial oils, antifreeze, and related merchandise:
MPC’s branded jobber automotive oil, lubricant and
merchandise [***].
The stated
prices are [***]. [***].
(b) MPC
may [***], as a separate line item on its invoices for some or all
Products purchased and sold hereunder, [***].
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
(c) [***]
reserves the right to [***] reserves the right to [***].
3.2
Measurement. BUYER shall be invoiced for the actual number
of U. S. gallons of Products delivered to BUYER by MPC, with or
without correction for temperature in accordance with standards of
the American Society for Testing and Materials, at MPC’s
option; provided, however, that upon request of BUYER by thirty
(30) days advance written notice [***], in any period of twelve
(12) consecutive months, MPC will change the method of measurement
of invoiced Products with respect to temperature correction (net or
gross gallons) in accordance with BUYER’s request. The
foregoing notwithstanding, in any jurisdiction in which applicable
law dictates the method of measurement of Products delivered, such
method shall be used.
(a) BUYER agrees to
pay for all Products and other goods and merchandise sold hereunder
[***]. [***].
(b) If BUYER fails to
make timely payment of any amount due and owing to MPC under this
Agreement, MPC may:
(1) impose
a late payment charge not to exceed the maximum amount allowed by
law;
(2) immediately
setoff any amounts owed by BUYER to MPC or its subsidiaries against
amounts owed by MPC or its subsidiaries to BUYER under this or any
other agreement between the Parties, or between BUYER and a
subsidiary of MPC; or
(3) treat
such failure as a failure by BUYER to comply with a reasonable and
materially significant provision of this Agreement, entitling MPC
to terminate this Agreement and the relationship between MPC and
BUYER.
PAYMENTS
TENDERED IN FULL SETTLEMENT OF A DISPUTED AMOUNT MUST BE SENT BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO: COMMERCIAL CREDIT
MANAGER, MARATHON PETROLEUM COMPANY LLC, 539 SOUTH MAIN STREET,
FINDLAY, OHIO 45840.
(c) If
MPC decides, in its reasonable discretion, that the
creditworthiness of BUYER is at any time unsatisfactory, due to the
failure to make a payment when due or otherwise, MPC shall have the
right to require assurances of BUYERs ability to perform its
obligations under this Agreement including, but not limited to, any
or all of the following, until BUYER’s creditworthiness
becomes satisfactory in MPC’s reasonable
discretion:
(1) MPC may require
payment in cash in advance of each purchase of Products;
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
(2) MPC may
discontinue further sales or shipments of Product until all
payments due have been received; or
(3) MPC may withhold
payment for credit card sale transaction receipts due to BUYER
under Section 6.4(c).
(d) Nothing
in this Section shall operate or be construed as the waiver by MPC
of any legal or equitable remedy to which MPC is entitled as a
result of BUYER’s failure to pay any amount when due to MPC.
No failure on the part of MPC to exercise any of its rights or
remedies upon BUYER’s failure to make timely payment of any
amount due and owing to MPC shall be construed as a waiver of those
rights in the event of any subsequent failure.
(a) MPC
shall not be required or obligated to make any delivery outside of
its usual business hours or in any quantity which would exceed
maximum load weights permitted by law. Except as set forth in
Section 3.4(b), deliveries of Products shall be made as
follows:
(1) all Gasoline and
Distillates: [***] as amended from time to time;
(2) motor oils,
lubricants, industrial oils, antifreeze, and other miscellaneous
related merchandise: [***].
Title to, and
risk of loss, of all Gasoline and Distillates delivered at
MPC’s terminal(s) shall pass from MPC to BUYER [***]. Title
to and risk of loss of Products other than Gasoline and Distillates
shall pass from MPC to BUYER [***].
(b) Deliveries
of all Gasoline and Distillates delivered by MPC to BUYER, directly
or through MPC’s hired common carrier shall be made, and
title to and risk of loss of such Products shall pass from MPC to
BUYER, [***]. Transportation arranged for BUYER by MPC shall be at
[***].
(c) MPC
shall have no obligation to deliver Products to BUYER at any
terminal [***].
3.5
Warranty. MPC warrants good title to all Products supplied
hereunder at the time of delivery to BUYER, and that each Product
supplied hereunder shall comply with all applicable federal, state
and local rules and regulations in effect at the time and place
title thereto passes to BUYER. MPC DISCLAIMS ANY AND ALL OTHER
WARRANTIES AND REPRESENTATIONS WITH RESPECT TO THE PERFORMANCE OR
QUALITY OF PRODUCTS SUPPLIED HEREUNDER INCLUDING, BUT NOT LIMITED
TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR BUYERS
PARTICULAR OR INTENDED PURPOSES OR USAGE.
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
3.6
Audit Rights. To verify BUYER’s performance under this
Agreement and any related agreements or in furtherance of
compliance and quality assurance programs instituted and amended by
MPC from time to time:
(a) BUYER will
cooperate fully and completely with audits and inspections
conducted by MPC from time to time. MPC shall have the right to
audit records, relevant in MPC’s reasonable discretion to the
purposes of the audit, in the possession or control of BUYER,
inspect the Branded Outlets, inspect and copy each Branded
Outlet’s daily inventory control and reconciliation records,
conduct audits of dispensers and meter readings, and obtain and
remove samples of Products taken from underground tanks, dispensers
or other components of each Branded Outlets motor fuel delivery
system.
(b) BUYER will ensure
that each Sublicensee cooperates fully and completely with audits
and inspections conducted by MPC from time to time. MPC will have
the right to enter and inspect the facilities at any Branded Outlet
operated by the Sublicensee, sample Products stored in underground
tanks or located elsewhere in equipment within the possession or
control of the Sublicensee, and inspect the books, records, daily
inventory control and reconciliation records, and meter readings of
the Sublicensee relating to operation of any Branded Outlet
operated by the Sublicensee, wherever such books, records and
readings are located.
3.7
Electronic Communication.
(a) Buyer agrees that
all Branded Outlets operated by BUYER, and by any Sublicensee, will
be and remain, during the Term, equipped with hardware and
software, including upgrades, as necessary for e-mail capability
and access to the Internet, so that MPC may communicate and
exchange business transaction and other information via MPC’s
eMpowered Marketing portal or other Internet access means
established by MPC in replacement thereof.
(b) BUYER consents,
effective the date of this Agreement, to the receipt of notices,
advertisements, announcements, brochures and other information from
MPC via facsimile, telephone, e-mail and other modes of electronic
communication.
(a) Any
term or provision of this Agreement to the contrary
notwithstanding, if MPC anticipates a shortage of Products, crude
oil, raw materials or refining capacity, whether its
own,
or its other regular sources of supply, or in
the industry generally, which MPC in its sole discretion determines
will require a limitation generally on the type or quantities of
Products to be supplied hereunder, or if such a limitation is
recommended or imposed by any governmental authority whether or not
ultimately held to be valid, [***].
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
(c) In
any month in which MPC institutes measures pursuant to Section
4.1(a), the Exhibit A Volume will apply only on a pro
rata basis to those days of the month in which the
allocation is not in effect. The Exhibit A Volume in any month
following the month in which such measures cease shall be as
provided in this Agreement.
4.2
Force Majeure. Each Party shall be excused from its
obligations under this Agreement to the extent and for the period
of time that the Party is unable to perform because of any cause or
condition reasonably beyond its control including, but not limited
to, any law or regulation issued by any government or governmental
or quasi-governmental agency or any judgment or judicial, executive
or administrative order or decree, whether or not ultimately held
to be valid; fire; flood; storm; earthquake; war; civil
disturbance; labor troubles, including strikes and boycotts;
blockade or embargo.
4.3
Indemnification. BUYER agrees to protect, indemnify, defend
and hold MPC harmless from any and all costs and expenses
(including reasonable attorneys fees and litigation expenses),
liabilities, losses, claims, causes of action and damages (for
injury to or death of any person, or loss or destruction of any
property), directly or indirectly resulting or arising
from:
(a) the use of any of
the Products subsequent to the delivery thereof to
BUYER;
(b) the violation of
any federal, state or local law, ordinance, rule or regulation by
BUYER, its agents, employees, or any Sublicensee, its agents or
employees;
(c) the operation of
any Branded Outlet, which includes, but is not limited to, any
non-fuel operations at any Branded Outlet, by BUYER or a
Sublicensee;
(d) the conduct of
BUYER’s business or the business of any Sublicensee or other
party purchasing Products from BUYER, or supplying Products to or
operating any Branded Outlet, which includes, but is not limited
to, any non-fuel operations at such Branded Outlet; or
(e) the use or
condition of the equipment or premises used for the storage,
handling and dispensing of Products including, but not limited to,
use or condition of underground storage tank or lines resulting in
groundwater or soil contamination or both, at the Branded
Outlets.
The foregoing
notwithstanding, BUYER shall not have any obligation to indemnify
MPC for any costs, expenses, liabilities, losses, claims, causes of
action or damages arising from the sole negligence of MPC, its
agents or employees. BUYER’s obligations under this Section
are not negated in the event its insurance carrier or carriers
provide or deny coverage to either BUYER or MPC. BUYER’s
obligations under this Section shall extend to MPC’s
affiliates, subsidiaries, parent companies, agents, officers,
directors, employees, predecessors and successors.
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
4.4
Insurance. Without limiting in any way BUYER’s
obligations and liabilities under this Agreement, BUYER shall
procure and maintain at its expense, for the duration of the Term,
the following insurance policies:
(a) Workers
Compensation and Employer’s Liability covering the employees
of BUYER for all compensation and other benefits required of BUYER
by the Worker’s Compensation law or other statutory insurance
laws in the state having jurisdiction over such employees and the
location of their employment with BUYER. Employers Liability
Insurance shall have limits of [***] per occurrence. The
Workers’ Compensation and Employer’s Liability policies
shall provide that all rights of subrogation against MPC and its
affiliates are waived when permitted by law.
(b) General Liability
Insurance, including contractual liability, XCU (explosion,
collapse and underground) hazards, premises and completed
operations, and products liability, to cover liability for bodily
injury and property damage, with a combined single limit of
[***].
(c) Insurance for
BUYER’s garagekeepers legal ability for property under
BUYER’s care, custody and control, where BUYER operates
repair and lubrication bays at Branded Outlets, including coverage
for fire, theft, or collision of automobiles, and including
vandalism and malicious mischief with such insurance having limits
of [***]; and
(d) Automobile
Liability Insurance covering bodily injury including death, and
property damage for the operation of owned, hired, or otherwise
operated non-owned automotive equipment used in performance of the
business of BUYER, with a single limit of [***].
BUYER’s
insurance under Sections 4.4(b), (c), and (d) shall be endorsed to
include MPC as an additional insured with respect to liability
arising out of BUYER’s operations or any premises owned or
leased by BUYER. BUYER shall furnish MPC with certificates of
insurance which document that all coverages and endorsements
required by this Section 4.4 have been obtained. Renewal
certificates shall be obtained by BUYER as and when necessary, and
copies thereof shall be forwarded to MPC as soon as same are
available and in any event prior to the expiration of the policy so
renewed. These certificates shall provide that the insurer shall
give thirty (30) days written notice to MPC prior to change or
cancellation of any policy. In no event shall MPC’s
acceptance of an insurance certificate that does not comply with
this Section 4.4 constitute a waiver of any requirement of this
Section 4.4.
5. USING,
PROTECTING THE MARKS
(a) Upon and subject
to the terms and conditions of this Agreement, MPC grants to BUYER
the non-exclusive and limited right to use the Marks in connection
with the advertising, distribution, and resale of Products at the
Branded Outlets owned, operated or supplied by
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
BUYER, while
this Agreement remains in effect. BUYER will use the Marks in
strict accordance with this Agreement.
(b) Upon and subject
to the terms and conditions of this Agreement generally and,
specifically, the following, MPC consents to BUYER’s
sublicense of the Marks to Sublicensees for use, in strict
accordance with this Agreement, in connection with the advertising
and resale of Products at Branded Outlets operated by Sublicensees,
while this Agreement remains in effect:
(1) BUYER represents
that each Sublicensee as of the date of this Agreement has been
identified and disclosed to MPC. BUYER agrees to disclose to MPC,
and obtain MPC’s prior approval of, any other party to whom
BUYER desires to sublicense the Marks during the Term.
(2) MPC has the right,
and not the obligation, to approve the sublicense of the Marks to
any Sublicensee. MPC will not unreasonably withhold its approval,
but BUYER agrees that in making its decision to approve a
Sublicensee, MPC may consider any and all factors relevant to the
protection of MPC’s rights to, and preservation of the brand
value of, the Marks including, but not limited to:
(a) the location,
appearance, operations, volumes, canopies,
dispensers, credit card readers and other
improvements, facilities or equipment of any retail location(s)
that will become Branded Outlets;
(b) MPC s then-current
mage and identification standards;
(c) MPC s marketing
strategies and development plans; and
BUYER agrees
not to enter into any agreement, relationship or arrangement for
the supply of Products to, or the use of the Marks by, any third
party until MPC has approved the third party as a
Sublicensee.
(c) MPC’s
approval notwithstanding, Exhibit B shall not list, add, or be
amended with
respect to add any Branded Outlet of any
Sublicensee unless BUYER and the Sublicensee have executed an
agreement in the form set forth at Exhibit C without modification
alteration, or amendment, and BUYER has provided a duplicate
original of the agreement to MPC. At the time of execution of such
agreement, BUYER shall deliver to the Sublicensee copies of
MPC’s then-current Credit Card Handbook, MPC’s then
current mage and identification standards, and MPC’s then
current appearance and customer service objectives and expectations
for Marathon branded outlets. If the Sublicensee will use the
STP® mark and related logos, BUYER shall also deliver to the
Sublicensee a copy of the then-current STP® Program rules
attached as Exhibit D to this Agreement and incorporated herein by
reference (STP® Program Rules) BUYER may
deliver the above-referenced information to
Sublicensee by referring Sublicensee to an appropriate web site
where the above-referenced information has been posted by
MPC.
5.2
Rights and Benefits Derivative. BUYER
acknowledges that all of its rights to display and use the Marks
are derived from this Agreement, and that BUYER’s use and the
use by Sublicensees of the Marks shall inure fully to the benefit
of MPC, Marathon Oil Company, as the case may be. BUYER
acknowledges that the Marks are a valuable and important property
right of MPC and BUYER agrees to refrain, and to cause the
Sublicensees to refrain from any action to infringe upon or dilute
MPC s rights to the Marks.
5.3
Limitations on Scope of License. No right to use
any variant of the Marks is granted under this Agreement. BUYER
shall not use any of the Marks as part of BUYER’s company
name, or the name of any subsidiary of BUYER now existing or
acquired later. MPC has the exclusive right to determine which
Marks will be available to each Branded Outlet, and the manner in
which the Marks will be used or displayed at each Branded
Outlet.
5.4
Image and Identification Standards. While this Agreement
remains in effect, BUYER agrees to:
(a) use, and to cause
the Sublicensees to use, the Marks in strict compliance with this
Agreement and the image and identification standards established
from time to time by MPC for the Marks. For avoidance of doubt, the
image standards in effect on the date of this Agreement are the
standards set forth in MPC’s “Image 2000” Manual.
BUYER acknowledges that BUYER has received, read, and understands
MPC’s Image 2000 Manual. MPC reserves the right to change,
from time to time during the Term, all or part of its image and
identification standards, effective ten (10) days after written
notice of the changes is given to BUYER; provided, however, that
such changes shall be applicable to all members of MPC’s
jobber class of trade.
(b) cause the Branded
Outlets and the Sublicensees to store only Products in Branded
Outlet storage tanks and receptacles, dispense only Products from
Branded Outlet dispensers, refrain from the dilution, adulteration,
mixture or blending of Products with any other product or
substance, whether supplied by MPC or another party, and otherwise
to refrain from the commingling of Products with other petroleum
products, whether branded or [***], including but not limited to
MPC’s [***] petroleum products. The Parties agree that the
intentional adulteration of Products, the intentional misbranding
as Products of petroleum products from a source other than MPC, or
the intentional misbranding of MPC [***] gasoline as
Products at any Branded Outlet constitutes grounds for termination
or non-renewal of this Agreement under the PMPA.
(c) take
immediate corrective action upon discovery of any Product
commingling, adulteration, dilution, mixing, blending, or
misbranding, regardless of source, and regardless whether
discovered by BUYER, MPC or a Sublicensee.
5.5
Buyer Property and Websites.
(a) BUYER
may use the Marks, in strict compliance with this Agreement and the
identification standards established from time to time by MPC for
the Marks, in conjunction with BUYER’s websites, business
forms, advertising materials, vehicles and other property related
to the advertising, distribution or sale of Products, provided
BUYER is clearly identified as a jobber
[***] Confidential treatment
requested pursuant to a request for confidential treatment filed
with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission.
or otherwise as
a distributor of Products in connection with such use. MPC has the
right to approve any such use of the Marks in advance, and revoke
its approval at any time and for any reason.
(b) In
connection with transporting and delivering Products to Branded
Outlets, BUYER may use a transport, delivery vehicle or tankwagon
which does not carry the Marks; provided that, other than the
trademark, trade name, logotype, or other identification of BUYER,
such vehicle shall not bear the trademark, trade name or other
identification of any other gasoline or related products marketer
or distributor.
(a) MPC will provide
to BUYER and the Sublicensees, for use on buildings, dispensers,
canopies, valance skirts, and other equipment at Branded Outlets,
such Brand Signage and related items bearing the Marks as MPC deems
necessary, and on such terms and conditions as MPC may establish
from time to time. Brand Signage provided by MPC for a Branded
Outlet will be located and displayed at the Branded Outlet in
compliance with MPC’s image standards for MARATHON®
retail outlets in effect from time to time.
(b) If MPC supplies to
BUYER Brand Signage incorporating the STP® mark and/or STP®
logo, BUYER’s use of such Brand Signage shall be subject to
the STP® Program Rules. Moreover, BUYER agrees and acknowledges
that in such case, BUYER’s right to use the STP® mark
and/or STP® logo at any specific Branded Outlet (including
BUYER’s right to enter into trademark use agreements with
Sublicensees governing use of the STP® mark and/or STP®
logo) is contingent upon the continuation of MPC’s license to
these marks from AASTP with respect to the specific Branded Outlet
at issue, and upon termination of such license by AASTP with
respect to the specific Branded Outlet at issue, BUYER’s use
of such Brand Signage will terminate and be of no force or effect
with respect to the specific Branded Outlet at issue.
(c) Unless otherwise
agreed in writing by MPC and BUYER, any Brand Signage provided by
MPC to BUYER or a Sublicensee at any time shall be and shall remain
the property of MPC. BUYER shall not relocate any Brand Signage
furnished by MPC from one Branded Outlet to another, or to any
other retail location, without MPC s prior written
consent.
(d) BUYER shall be
responsible for all of the costs and expenses of maintenance and
operation of all Brand Signage. BUYER agrees to keep, and cause
each Sublicensee to keep, all Brand Signage in good repair and
condition at all times.
(e) Prior to the sale,
lease or other disposition of a Branded Outlet upon which Brand
Signage owned by MPC is located, BUYER will, or will cause the
Sublicensee of the Branded Outlet to inform the other party to such
transaction of MPC s ownership thereof.
5.7
Independent Business Relationship. MPC and BUYER are, and
will remain, separate and independent business enterprises. Neither
of the Parties shall have the right to direct or control the other
Party or the Party’s business operations or the other
Party’s employees or agents. BUYER has no authority to act,
or employ any person to act, as an agent for or on behalf of MPC.
This Agreement is not intended to create, and shall not be
construed to create, a relationship of partner or joint venture or
an association for profit between the Parties.
6. PRESERVING
BRAND VALUE
6.1
Appearance and Customer Satisfaction. BUYER acknowledges
that the appearance of, and customer experience at, every one of
MPC’s Branded Outlets reflects on the good will value of the
MARATHON® brand to every MPC customer