HomeMy WebLinkAbout2010-09-27 10-338 ORDERCOUNCIL ACTION
Item No. ri g
Date: September 27, 2010
Item/Subject: ORDER, Authorizing Execution of ExxonMobil Avitat Dealer Agreement with
Western Petroleum Company
Responsible Department: Airport
Commentary:
The Bangor International Airport and Western Petroleum currently have an ExxonMobil Avitat Dealer
Agreement. This agreement outlines the terms and conditions set forth to operate the airport's Fixed Base
Operation (FBO) as an ExxonMobil Avitat brand to include terminal facility standards, complying with fuel
quality control and inspection standards and allowing signage to convey to the general aviation public a high
quality product, service and facility. This agreement has expired on July 31, 2010 and both Parties are
interested in executing a new agreement for a term of three (3) years. There are no other major changes to
the terms and conditions from the original agreement.
Rebecca Hupp
Department Head
Manager's Comments:
This has been reviewed by the Airport Committee and is recommended for appro I
Interim City Manager
Associated Information: Order, Agreement
Budget Approval:
Finance Director
Legal Approval:
Introduced for
_x_ Passage
First Reading
Referral
Solicitor
Page i of 1
Assigned to Councilor - Palmer September 27, 2010
CI`T'Y OF BANGOR
(TITLE.) ORDER, Authorizing Execution of ExxonMobil Avitat Dealer Agreement with
Western Petroleum Company
WHEREAS, The City of Bangor owns and operates the Bangor International Airport;
and
WHEREAS, The City of Bangor purchases from Western Mobil Company a supply of
ExxonMobil branded aviation fules and offers the same for resale to
general aviation customers; and
WHEREAS, The parties had been operating under an agreement that expired on July
31, 2010; and
WHEREAS, it would be advantageous to both parties to execute a new agreement.
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF
BANGOR, That
Robert W. Farrar, Interim City Manager, is hereby autorized on befhalf of the City of
Bangor, to execute an Avitat Dealer Agreement by and between the City of Bangor and
Western Petroleum in substantially the form as attached hereto and in a final form as
approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
September 27, 2010
Pa d
CITY CLERK
#10-338
(TITLE] Authorizing Execution of
onMobil Avitat Dealer Agreement with
stern Petroleum Company
Assigned to
rt f no
0
WESTERN DEALER AVITAT AGREEMENT
THIS AGREEMENT is entered into by and between WESTERN PETROLEUM
COMPANY, a Minnesota corporation ("WESTERN") and City of Bangor, a Maine
Municipality ("DEALER") as of June 15, 2010.
WITNESSETH
WHEREAS, DEALER is or will be operating as a fixed base operator ("FBO") on certain
areas at Bangor International Airport (collectively, the "Premises") covered by a lease or other
operating agreement between Bangor International Airport and DEALER; and
WHEREAS, the DEALER Premises are or will be used for general aviation terminal and
hangar purposes, and DEALER is or will be operating on the Premises as an FBO offering
services, as provided in Schedule A, to the general aviation trade; and
WHEREAS, DEALER is or will be purchasing from WESTERN a supply of
EXXONMOBIL- branded aviation fuels in accordance with a Western Petroleum Company Fuel
Supply Agreement and is or will be offering same for resale to such general aviation customers
at the Premises; and
WHEREAS, WESTERN desires to provide EXXONMOBIL-branded aviation fuels
through independent dealers that will offer first-class fuel and related services to general aviation
customers under the trade names, trademarks and service marks "EXXONMOBIL" and
"AVITAT" owned by ExxonMobil Oil Corporation ("BXXONMOBIL") and its affiliated
companies (collectively referred to as "ExxonMobil Marks"); and
WHEREAS, WESTERN and EXXONMOBIL desire that the ExxonMobil Marks convey
to the general aviation trade a high-quality product, service and facility; and
WHEREAS, DEALER has requested the right to use and display the ExxonMobil Marks
in connection with its FBO business on the Premises in accordance with the terms hereof, and
WESTERN, having been authorized to do so by EXXONMOBIL, is willing to grant to DEALER
such rights in consideration of the services offered or to be offered by the DEALER.
NOW, THEREFORE, in consideration of the mutual promises set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereby agree to the terms and conditions set forth below.
ARTICLE I
TERM AND PREMISES
This Agreement shall be effective for an initial term of three (3) year(s) beginning on
June 15, 2010 and ending on June 14, 2013, subject to earlier termination or cancellation as
herein provided. Upon expiration of the initial term, this Agreement shall extend thereafter in
accordance with the terms of the Western Petroleum Company Fuel Supply Agreement unless
and until terminated by either party in accordance with Article VII of this Agreement. This
Agreement shall apply only to DEALER's operations at the Premises.
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ARTICLE II
TRADEMARKS AND IDENTIFICATION
A. The parties agree that ExxonMobil Marks shall convey to the general aviation
trade the existence of a facility at the Premises that offers comprehensive aircraft services and
ExxonMobil-branded fuel products which meet the highest standards of quality and performance
for general aviation related services and fuel requirements.
B. The parties acknowledge that identification and recognition of an
EXXONMOBIL AVITAT facility shall be accomplished through the use of consistent and
recognizable sign design and offering of services. DEALER agrees to operate its fixed base
terminal and related areas in a manner consistent with the license granted herein and compatible
with the quality and performance standards set forth in this Agreement and Schedule A,
extending optimum efforts to develop and maintain high standards of quality control, customer
service and satisfaction. DEALER shall use its experience and best efforts to promote and
maintain such high standards to protect the value of the EXXONMOBIL Marks and to conduct
its business in a manner that will promote the confidence of general aviation customers in the
EXXONMOBIL Marks and the products and services provided thereunder. DEALER shall take
no action that will dilute or diminish the value of the EXXONMOBIL Marks. WESTERN on
behalf of EXXONMOBIL has authorized DEALER to use the EXXONMOBIL Marks in
reliance on DEALER's assurances of service and performance as set forth in this Agreement and
Schedule A.
ARTICLE III
RIGHT TO USE
A. WESTERN on behalf of EXXONMOBIL hereby grants to DEALER a non-
exclusive, royalty free license to use the ExxonMobil Marks in connection with DEALER's FBO
operations on the Premises during the term of this Agreement, subject to the provisions
contained herein. Immediately upon the termination or cancellation of this Agreement for any
reason, DEALER shall cease and forever abstain from using the ExxonMobil Marks and shall
return to WESTERN or EXXONMOBIL, in accordance with instructions from WESTERN all
documents, instructions, manuals, logs, display items, signage, equipment and other items
bearing the ExxonMobil Marks. DEALER's license to use the EXXONMOBIL Marks shall
immediately terminate upon the termination or cancellation of this Agreement. Notwithstanding
any provision in this Article IIIA to the contrary, nothing in this Article III.A shall affect
DEALER's right under any other effective written agreement between DEALER and
WESTERN that authorizes use of any trade name, trademark, service mark, brand name or other
name owned or used by EXXONMOBIL in EXXONMOBIL's business other than Avitat.
B. EXXONMOBIL reserves the right at any time during the term of this Agreement
or otherwise to change, alter, amend or eliminate any of the ExxonMobil Marks.
C. DEALER shall not represent in any way that it has any right in or title to the
ownership of such marks or to the registrations thereof. DEALER shall obtain advance approval
of WESTERN of the form and manner in which the EXXONMOBIL Marks shall be used and
shall not, at any time, do or suffer to be done any act or thing that might in any way impair those
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rights in and to such marks and any registrations thereof. DEALER shall not, either directly or
indirectly, at any time challenge the ownership in and to such marks or the validity of any
registrations thereof. DEALER acknowledges that all use of the EXXONMOBIL Marks as
permitted by this Agreement will inure to the benefit of EXXONMOBIL.
D. DEALER agrees that WESTERN, or its designees, shall have the sole
responsibility for taking such action as may be necessary or desirable to preserve and protect the
goodwill appertaining to the EXXONMOBIL Marks. DEALER shall cooperate with
EXXONMOBIL in the protection of the EXXONMOBIL Marks by informing WESTERN, or its
designees, of any encroachments, infringements or misuses of such marks which come to
DEALER's attention. DEALER further agrees to notify WESTERN promptly of any pending or
threatened litigation involving the ExxonMobil Marks of which DEALER becomes aware. As
between DEALER and WESTERN, any litigation with a third party involving the
EXXONMOBIL Marks shall be at the expense of and under the complete control of Western or
its designees.
E. The provisions in this Article III do not modify or replace any term or condition
in the Western Petroleum Company Fuel Supply Agreement or any Aviation Equipment Lease
between DEALER and WESTERN with respect to the proper use of and restrictions on
DEALER's use of any trade name, trademark, service mark, label, brand name, insignia or
imprint owned or used by EXXONMOBIL in its business.
ARTICLE IV
QUALITY CONTROL, INSPECTION AND AVITAT STANDARDS
A. DEALER shall maintain high product quality at all times and shall perform all
product quality control checks as specified in the Western Petroleum Company Fuel Supply
Agreement, including any amendments thereto, and in any other written instructions as provided
by WESTERN from time to time.
B. DEALER shall maintain in proper form all manuals, log books, and daily aircraft
records, as provided by WESTERN and EXXONMOBIL, for the purpose of entering, on a daily
basis, accurate information relating to product quality, equipment condition and aircraft
movements on the airport.
C. DEALER shall comply with all applicable laws, ordinances, rules and regulations
of governmental authorities having jurisdiction over DEALER's FBO operations and business at
the Premises.
D. DEALER shall comply with the Avitat Standards set forth in Schedule A hereto.
E. WESTERN and EXXONMOBIL shall each have the right to inspect DEALER's
facilities to determine whether the quality of the products and services sold by DEALER under
the ExxonMobil Marks at those facilities and the display of the ExxonMobil Marks is consistent
with the terms of this Agreement.
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ARTICLE V
INDEMNIFICATION
DEALER shall indemnify, defend and hold WESTERN and EXXONMOBIL harmless
from and against any and all claims, costs, demands, liabilities, suits, actions, judgments, and
recovery (including, without limitation, all court costs and attorney's fees) asserted by a third
party for or on account of damage to property or injury (including death) to anyone including,
without limitation, employees of WESTERN and EXXONMOBIL, arising out of DEALER's
negligent or willful acts or omissions, except to the extent caused by the negligent or willful acts
or omissions of WESTERN or EXXONMOBIL. Where damage to property or injury (including
death) is attributable to the joint negligence or willful acts or omissions of WESTERN or
EXXONMOBIL and DEALER, DEALER expressly agrees to indemnify WESTERN and
EXXONMOBIL in proportion to DEALER's share of such negligence or willful acts or
omissions.
ARTICLE VI
TRANSFER OF INTEREST
This Agreement, including, without limitation, any right or obligation of DEALER
hereunder, may not be assigned, sublet, mortgaged, sold or pledged by DEALER in whole or in
part, or by operation of law or otherwise, without the prior written consent of WESTERN, which
consent shall not be unreasonably withheld.
ARTICLE VII
TERMINATION AND CANCELLATION
A. This Agreement may be terminated by either party for any reason without cause
by giving the other party at least ninety (90) days' prior written notice thereof.
B. Either party shall have the right to cancel this Avitat Agreement should the other
party default in the performance of any of the terms or conditions hereof. WESTERN or
DEALER, as the case may be, shall give the other party written notice of such default, and if
such default is not remedied within fifteen (15) days after such notice, this Agreement shall be
cancelled effective on the expiration of such 15 day period. The parties agree that any failure to
or default in performing any obligation of WESTERN or DEALER under this Avitat Agreement
shall constitute good cause for the other party's election to cancel as provided in this Article
VII.B, and that all such obligations shall be considered as substantial and material.
Notwithstanding the preceding provisions of this Article VII.B, WESTERN's right to cancel this
Agreement for DEALER's failure to adhere to the Avitat Standards as set forth in Schedule A
shall be governed by Article VII.F.2 below.
C. If DEALER's right to occupy or use a substantial part of the Premises should
cease or terminate for any reason, either party may cancel this Agreement at any time upon
fifteen (15) days' prior written notice to other party.
D. If (1) the Western Petroleum Company Fuel Supply Agreement between
WESTERN and DEALER for the supply of ExxonMobil-branded aviation fuel at the Premises
ceases to exist or otherwise is terminated for any reason without being renewed, extended or
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replaced by a new contract, or (2) DEALER does not have a reasonable supply of
EXXONMOBIL-branded aviation fuels as required by Schedule A, this Agreement shall
terminate automatically.
E. Notwithstanding the provisions of Article IX.A below, should any provision of
this Agreement be determined by a final judgment of a court of competent jurisdiction to be
contrary to law, either party may cancel this Agreement upon fifteen (15) days' prior written
notice to the other party.
F. This Agreement may be cancelled and terminated by WESTERN, solely at
WESTERN's option, upon the occurrence of any of the following events:
DEALER shall abandon the Premises; or
2. Except as otherwise mutually agreed by the parties in writing, DEALER
shall fail to adhere to Avitat Standards set forth in Schedule A. In the event DEALER fails to
adhere to the Avitat Standards, WESTERN shall follow the procedures set forth in Schedule B
prior to terminating this Agreement.
ARTICLE VIII
NOTICES
All notices required or permitted by this Agreement shall be written and shall be deemed
to have been properly given when delivered personally to WESTERN's or DEALER's
designated representative, when transmitted by facsimile to the designated facsimile number of a
party (or at such other facsimile number as may be furnished by a party to the other party in
writing from time to time), or when sent by registered or certified mail with all postage fully
prepaid to a party at the designated party address set forth below (or at such other address as may
be furnished by a party to the other party in writing from time to time). If notice by mail is used,
the date of mailing shall be deemed the date of giving such notice. For mailing, WESTERN's
designated representative and address shall be Manager, Aviation Fuels Sales, Western
Petroleum Company, 9531 West 78th Street, Eden Prairie, MN 55344, and DEALER's
designated representative and address shall be 73 Harlow Street, Bangor, ME 04401. If notice by
facsimile is used, the date of facsimile transmission to the appropriate facsimile number shall be
deemed the date of giving such notice. For facsimile notices, WESTERN's designated facsimile
number is 541-610-1562 and DEALER's designated facsimile number is (207) 945-3607. The
parties shall have the right to appoint substitute or successor designated representatives for all
notices under this Agreement by written notification to the other party, which change shall
become effective seven (7) days after date of personal delivery or date of mailing as appropriate.
Any notices to be sent to EXXONMOBIL shall be sent to: General Aviation Sales Manager,
ExxonMobil Aviation, at 3225 Gallows Rd., Fairfax, VA 22037 or at facsimile number (703)
849-4078.
ARTICLE IX
MISCELLANEOUS
A. This Agreement shall be governed by and construed in accordance with the
laws of the state of Minnesota without regard to any principles of choice of laws in
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Minnesota or in any other state. Should any part of this Agreement for any reason be declared
invalid, such decision shall not affect the validity of any remaining portion, and such remaining
portion shall remain in force and effect as if this Agreement had been executed with the invalid
portion eliminated.
B. This Agreement is made for the sole and exclusive benefit of WESTERN,
DEALER, and EXXONMOBIL and its affiliates and their respective successors and assigns
(subject to Paragraph VI hereof), and is not made for the benefit of any other parties or third
parties.
C. All remedies provided in this Agreement shall be deemed cumulative and
additional and not in lieu of or exclusive of each other or of any other remedy available to
WESTERN, EXXONMOBIL or DEALER at law or in equity, and the exercise of any remedy or
the existence herein of other remedies or indemnities shall not prevent the exercise of any other
appropriate remedy.
D. WESTERN and/or EXXONMOBIL and DEALER are not and shall not be
considered to be joint venturers, partners or agents of each other and neither shall have the power
to bind or obligate the other. It is expressly understood and agreed that DEALER shall carry on
its business as contemplated herein as an independent contractor in the pursuit of an independent
calling and not as an employee or agent of WESTERN or of EXXONMOBIL in any respect.
E. This instrument and the Schedules hereto contain the entire agreement of the
parties with respect to the subject matter hereof, and no representation, inducement, promise or
agreement, oral or otherwise, not embodied in this instrument (including any Schedule), shall be
of any force or effect regarding the subject matter hereof. This Agreement supersedes all prior
agreements involving the subject matter hereof. This Agreement shall not be changed, modified,
discharged or extended except by written instrument fully executed by WESTERN and
DEALER.
F. No delay, omission or failure of WESTERN or of EXXONMOBIL to exercise
any right, power or duty given it hereunder or to insist upon strict compliance by DEALER of
any obligation hereunder and no custom or practice at variance with the terms hereof shall
constitute a waiver of WESTERN's right to demand DEALER's strict compliance with terms
hereof.
G. The headings of the paragraphs of this Agreement are for convenience only and
do not in any way limit, amplify or otherwise affect the covenants and agreements contained in
this Agreement.
H. Schedules A and B attached hereto are hereby incorporated in this Agreement by
this reference.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate
originals effective as of the date set forth in Article I above.
City of Bangor
By: Robert Farrar
Title: Interim City Manager
Date:
WESTERN PETROLEUM COMPANY
By: Dave Jewett
Title: Vice President
Date:
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SCHEDULE A
AVITAT STANDARDS
I. FACILITIES
A. DEALER's terminal facilities at the Premises shall include, at a minimum, the
following:
• a lobby waiting area for passengers and guests;
• a separate pilots' lounge;
• a flight planning area and related facilities;
• a catering area and related facilities;
• a vending area for beverages and snacks;
• a conference room;
• public telephones and restrooms;
• a reception and customer service center; and
• separate line operations facilities.
B. DEALER shall furnish and maintain, in a first-class condition and at its own
expense, terminal furniture, draperies, carpeting and other items required to furnish and identify
the terminal building and related areas as an EXXONMOBIL AVITAT facility. All such items
shall be subject to WESTERN and EXXONMOBIL inspection and approval. Upon termination
or cancellation of this Agreement for any reason, EXXONMOBIL, in its sole option, may
purchase any such items that bear or are identified with the ExxonMobil Marks and associated
distinctive designs. In the event EXXONMOBIL exercises such option, DEALER shall sell any
such item at a price equal to such item's straight line depreciated value based on the depreciation
period allowed under Federal Income Tax regulations effective at the time of sale.
C. DEALER agrees to provide, at its own expense, maintenance and housekeeping
for the terminal, ramp, parking area and related facilities. For purposes of this Agreement,
DEALER shall provide maintenance and housekeeping on a regular and ongoing basis to present
DEALER's facilities in a first class appearance to both passengers and aircraft crews.
D. DEALER shall obtain approval from EXXONMOBIL for the interior decorating
design, floor plan and layouts for DEALER's terminal facilities which are identified by the
EXXONMOBIL AVITAT sign.
II. SERVICE AND EQUIPMENT
A. In conducting its fueling operations, DEALER shall comply with and follow the
procedures and guidelines as prescribed by WESTERN and EXXONMOBIL from time to time.
All fueling equipment, either fixed or mobile, owned or leased by DEALER and used by
DEALER in its operations at the Premises shall, at all times, meet WESTERN and
EXXONMOBIL's requirements for safety and quality control. The provisions in this Article II
shall be in addition to and do not modify or replace any term or condition in the Fuel Supply
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Agreement or in any Aviation Mobile Equipment Lease between DEALER and WESTERN with
respect to fueling operation procedures and requirements for safety and product quality.
B. DEALER shall adopt and maintain standards for operations and the provision of
services based upon conditions in DEALER's local market and the requirements of DEALER's
airport. DEALER shall implement these standards in establishing and maintaining services in
accordance with DEALER's obligations under this Agreement. DEALER shall maintain
adequate facilities and personnel to furnish such services. In providing these services, DEALER
shall furnish all necessary equipment and maintain same, at its expense, in a first-class operating
condition and appearance.
C. While displaying and operating under the ExxonMobil Marks, DEALER shall
have a reasonable quantity of EXXON MOBIL -branded aviation fuels on hand and available for
sale to general aviation customers patronizing the terminal and related areas at the Premises.
III. SIGN AND IDENTIFICATION
A. DEALER's signage and "AVITAT" identification shall consist of the following
unless strictly forbidden by local or airport authorities having jurisdiction over the DEALER or
DEALER's terminal facilities at the Premises:
• AVITAT cube;
• terminal/hanger AVITAT letters;
• stationary header(s) and or footer(s) with AVITAT City (or with AVITAT
Airport) I.D;
• All advertising shall reference the same AVITAT City or Airport; and
• Signage shall comply with EXXONMOBIL standards as published from
time to time by EXXONMOBIL.
B. WESTERN shall furnish, install and maintain the main identification sign or signs
to be installed, at WESTERN's sole option, as a part of or separate from the DEALER's terminal
building. DEALER shall not alter or otherwise change the form of the lettering and the colors
used on any such signs furnished and installed by WESTERN. Other identification signs may be
furnished by WESTERN from time to time as deemed appropriate by WESTERN.
C. DEALER shall provide appropriate pylon and/or sign mountings for the signs
furnished by WESTERN, consistent with the terms and conditions in the DEALER's Lease.
DEALER shall obtain approval for such pylon and mountings from WESTERN and from all
governmental authorities having jurisdiction with respect thereto.
D. DEALER shall return all identification signs as described in this Article III at the
expiration or earlier termination or cancellation of this Agreement in the same condition as
received, ordinary wear and tear excepted. DEALER further agrees to use such signs only for the
purposes set forth in this Agreement. DEALER shall comply with all applicable laws,
ordinances, rules, regulations or requirements, whether federal, state, county or municipal,
relating to DEALER's use of such identification signs.
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IV. AVITAT PARTICIPATION
A. DEALER acknowledges and understands that a significant benefit for being an
AVITAT dealer is involvement with a network of independent aviation dealers that signifies
premier service, products and image. DEALER acknowledges and agrees that it receives such
benefit through participation in EXXONMOBIL's national sales campaigns and mass media
advertising that promote the image of AVITAT FBO'S as aviation's premier FBO network. To
promote the image of AVITAT dealers, EXXONMOBIL develops, from time to time, national
sales campaigns and mass media advertising for the benefit of all AVITAT dealers as a network.
EXXONMOBIL will develop such campaigns and advertising with input from the DEALER's
representatives on the AVITAT Council. EXXONMOBIL organizes and hosts an annual meeting
of all AVITAT dealers for the purpose, among others, of proposing national sales campaigns and
mass media advertising for AVITAT FBO'S. DEALER shall send a representative to each
annual AVITAT dealer meeting to review EXXONMOBIL's proposed sales campaigns,
advertising, and related materials and products. For purposes of this section, DEALER's
representative shall mean either the owner or principal of the DEALER or an officer or manager
of the DEALER, as designated by the owner or principal of the DEALER. DEALER shall
reimburse WESTERN for DEALER's proportionate share of all Avitat expenses billed to
WESTERN by EXXONMOBIL.
B. DEALER's line attendants and customer service representatives shall wear
appropriate uniforms at all times. DEALER shall obtain WESTERN's approval for all line
service personnel uniforms. At a minimum, line service personnel uniforms shall (1) combine
any two colors of red/white/blue; (2) have an "AVITAT" patch on the left side of the shirt with
the "EXXONMOBIL" line training patch on the upper left arm; and (3) be uniform among all of
DEALER's line service employees. DEALER's customer service representatives shall wear any
two color combinations of red/white/blue. DEALER shall have the right to use and display on
line attendants' and customer service representatives' uniforms the DEALER's name or emblem
as well as the EXXONMOBIL AVITAT name or emblem in such reasonable size and location as
will not detract one from the other.
C. EXXON MOBIL and Western will supply advice, guidance and materials from
time to time to assist DEALER in promoting the AVITAT network's image or suggest to the
DEALER particular sales campaigns relating thereto. EXXONMOBIL and Western shall supply
to the DEALER all handout materials and promotional brochures, excluding those of purely a
local or municipal nature. EXXONMOBIL shall be responsible, as EXXONMOBIL may
determine in its discretion from time to time, for arranging all mass media advertising (other than
that which is purely local or municipal in nature) relating to the AVITAT network including,
without limitation, advertisements in magazines, newspapers, radio and television. If DEALER
desires to place any advertisement or promotion in any local, regional or other area and such
advertisement or promotion will include the EXXONMOBIL Marks, DEALER shall submit such
advertisement of promotion to WESTERN and EXXONMOBIL for prior review and written
approval.
V. PERSONNEL AND TRAINING
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A. DEALER, acting through its employees, shall provide customer services of the
type and quality required by this Agreement. DEALER has assumed the responsibility of
employing employees in sufficient quantities and capabilities to fulfill DEALER's obligations
hereunder. Such employees shall be DEALER's own employees, subject to DEALER's
exclusive control and direction, and DEALER shall be solely responsible for their performance
and compensation. Neither WESTERN nor EXXONMOBIL shall have any responsibility for, or
any control or right to control over, any of DEALER's employees or the operations thereof.
B. DEALER shall conduct regular and ongoing training for both line service and
customer service personnel. DEALER's training programs, at a minimum, should (1) address
DEALER management's expectation or philosophy for establishing and maintaining services in
accordance with the DEALER's obligations under this Agreement, (2) address those conditions
that are present in the DEALER's local market and (3) be consistent with the requirements of
this Agreement. DEALER shall train all new employees within 30 days of hiring. DEALER shall
provide refresher training for employees every 18 months. DEALER shall provide such training
as required by this Article V.B pursuant to a curriculum approved by EXXONMOBIL. From
time to time and within the sole discretion of EXXONMOBIL, EXXONMOBIL or WESTERN
may provide training to DEALER's employees (at both parties' convenience) to explain and
review quality control procedures, safety, sampling techniques, fueling operations or other
technical matters. DEALER shall establish suitable training methods and procedures and
maintain a minimum frequency and continuity of internal training to all of its employees, as
required herein.
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SCHEDULE B
ENFORCEMENT OF AVITAT STANDARDS
DEALER's failure to adhere to the Avitat Standards set forth in Schedule A may result in
WESTERN's cancellation and termination of this Agreement. WESTERN shall enforce
compliance with the Avitat Standards as set forth in this Schedule B. During the term of this
Agreement, the designated WESTERN Territory Manager will investigate alleged non-
compliance with the Avitat Standards derived from any source (including, without limitation,
WESTERN inspectors, DEALER's customers, pilots or observations of other EXXONMOBIL
or WESTERN representatives). Non-compliance with standards by the DEALER shall cause
WESTERN to handle such matters as follows:
A. The first alleged non-compliance or complaint will be investigated by the
designated WESTERN Territory Manager. Following the investigation, the WESTERN Territory
Manager will discuss the matter with the DEALER. The WESTERN Territory Manager will
summarize the results of the investigation and the DEALER discussion in a letter to the
DEALER, copied to EXXONMOBIL. Thereafter, at either's request, the WESTERN Territory
Manager and the AVITAT owner or principal shall meet together with EXXONMOBIL's
representative for the purpose of reaching a mutually acceptable solution for correcting the
subject non-compliance or the situation leading to the investigation. If the parties together with
EXXONMOBIL are unable to reach a mutual agreement for correcting the subject non-
compliance, either party may terminate this Agreement by providing the other party at least
fifteen (15) days' prior written notice thereof.
B. The second alleged non-compliance or complaint will be investigated by the
designated WESTERN Territory Manager. If this second investigation results in substantiated or
confirmed non-compliance similar to the first instance of noncompliance, the WESTERN
Territory Manager will document his or her findings and recommendations and send same to the
DEALER. WESTERN's General Aviation Sales Manager will meet with the DEALER together
with EXXONMOBIL's representative within 90 days of the WESTERN Territory Manager's
documentation to discuss the noncompliance matter and to make recommendations for correcting
same. If the parties are unable to reach a mutual agreement for correcting the subject non-
compliance, either party may terminate this Agreement by providing the other party at least
fifteen (15) days' prior written notice thereof.
C. The third alleged non-compliance or complaint will be investigated and
documented the same as a second allegation of non-compliance or complaint. If a third
investigation results in substantiated or confirmed non-compliance similar to the first and second
instances of non-compliance, the WESTERN Territory Manager will document his or her
findings and recommendations and send same to the DEALER. If the third instance of non-
compliance occurs within two (2) years of the action giving rise to the initial instance of non-
compliance, WESTERN may cancel and terminate this Agreement by giving the DEALER
written notice thereof.
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