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HomeMy WebLinkAbout147-01-B RESOLUTIONRESOLUTION NO. 147-01- A RESOLUTION TO APPROVE A CONTRACT WITH AVFUEL CORPORATION TO PURCHASE FUEL AND SERVICES TO BE USED AT THE FAYETTEVILLE CITY AIRPORT (DRAKE FIELD) AND TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $68,841.00 TO PURCHASE AVIATION FUEL WHICH WOULD BE OFFSET BY SALES OF THIS FUEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS - Section 1. That the City Council of the City of Fayetteville, Arkansas hereby agrees to a contract with AVFUEL Corporation to purchase fuel and services to be used at the Fayetteville City Airport (Drake Field) and authorizes Mayor Dan Coody to execute said contract. Section 2. That the City Council of the City of Fayetteville, Arkansas agrees to a budget adjustment of $68,841.00 to pay for the purchase of aviation fuel and services from AVFUEL Corporation, which fuel shall be resold by the City acting as the Fixed Base Operator of Drake Field. PASSED and APPROVED this the 16th day of October, 2001. r .• 1� By: 1H//r,//v/ eather Woodruff, City erk APPROVED: By: RESOLUTION NO. 147-01 A RESOLUTION TO APPROVE A CONTRACT WITH AVFUEL CORPORATION TO PURCHASE FUEL AND SERVICES TO BE USED AT THE FAYETTEVILLE CITY AIRPORT (DRAKE FIELD) AND TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $68,841.00 TO PURCHASE AVIATION FUEL WHICH WOULD BE OFFSET BY SALES OF THIS FUEL BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby agrees to a contract with AVFUEL Corporation to purchase fuel and services to be used at the Fayetteville City Airport (Drake Field) and authorizes Mayor Dan Coody to execute said contract. Section 2. That the City Council of the City of Fayetteville, Arkansas agrees to a budget adjustment of $68,841.00 to pay for the purchase of aviation fuel and services from AVFUEL Corporation, which fuel shall be resold by the City acting as the Fixed Base Operator of Drake Field. PASSED and APPROVED this the 16th day of October, 2001. APPROVED: B ATTEST. By: Heather Woodruff, City Clerk NAME OF FILE: CROSS REFERENCE: Resolution No. 147-01 B • 10/16/01 Resolution No. 147-01 B 10/31/01 Copy of the Budget Adjustment Form Customer Credit Agreement Aviation Fuel Supply Agreement Standard Provisions of Contracts Branded Program Agreement Credit & Charge Card Acceptance Agreement Excess Third Party Liability Insurance Program Application Storage Tank Compliance Certification 09/27/01 Letter to James Nicholson from Suzy Jago, Avfuel Corporation 09/27/01 Letter to James Nicholson from Ronald L. Cagle, Credit Manager, Avfuel Corporation Letter to be used if Govemment Body is to be billed directly 09/19/01 Memo to Mayor Coody & Fay. City Council from Gary Dumas, Utility Services Director/Interim Airport Manager, thru Staff Review Committee, regarding AVFUEL Corp., Inc. - Aviation Fuel Contract Aviation Refueler Lease Agreement Specifications Aviation Gasoline; Jet Fuel AVCARD Agreement AVFUEL Corporation Avtrip Agreement 08/24/01 Estimated fuel (quoted prices) cost per gallon from AVFueI Corporation; BP Air, and Phillips 66 10/16/01 Staff Review Form 10/29/01 Memo to Gary Dumas, Utilities Service Director, from Heather Woodruff, City Clerk NOTES: co • • Res. 147-01 Ad Fo City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2001 Department: Environmental Services Division: Airport Program: Air FBO Date Requested 10/31/2001 Adjustment # Project or Item Requested: $68, 841 is being requested in aviation fuel expense accounts to recognize expenses from 11/01/01 through 12/31/0, in conjunction with new AVFueI Corp. supplier contract Project or Item Deleted: To recognize $68,841 in additional revenue from aviation fuel sales COPY • Justification of this Increase: The additional budgeted amount is required for aviation fuel expenses through the end of the year. Justification of this Decrease: Fuel sales will provide additional revenue to support these costs. Account Name Increase Expen e (Decrease Revenue) Amount Account Number Jet Fuel 43,370 5550 3955 5213 02 Avgas 25,471 5550 3955 5213 03 Account Name Jet Fuel Revenue Decrease Expense (Increase Revenue) Amount Account Number 43,370 5550 0955 4456 02 Avgas Revenue 25 471 5550 0955 4456 01 Project Number Project Number Approval Signatures Requested By Date udget Manager Date ��- Icy' 1(0 —o 1 entirectorDate )1214A—' i o/2441 Date Admin. Jo ices Director / J 1 1 44 . Mayor /07 i/o/ Date Budget Office Use Only Type: A B C D E Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Blue Copy: Budget & Research / Yellow Copy: Requester • • City of Fayetteville, Arkansas Budget Adjustment Form Res. 147-01 Budget Year Department: Environmental Services 2001 Division: Airport Program: Air FBO Date Requested 10/31/2001 Adjustment # Project or Item Requested: $68, 841 is being requested in aviation fuel expense accounts to recognize expenses from 11/01/01 through 12/31/0, in conjunction with new AVFueI Corp. supplier contract Project or Item Deleted: To recognize $68,841 in additional revenue from aviation fuel sales Justification of this Increase: The additional budgeted amount is required for aviation fuel expenses through the end of the year Justification of this Decrease: Fuel sales will provide additional revenue to support these costs Increase Expen e (Decrease Revenue) Account Name Amount Account Number Project Number Jet Fuel 43,370 5550 3955 5213 02 Avgas 25,471 5550 3955 5213 03 Decrease Expense (Increase Revenue) Account Name Amount Account Number Jet Fuel Revenue 43 370 5550 0955 4456 02 Avgas Revenue 25 471 5550 0955 4456 01 Project Number Approval Signatures Requested By Date Budget Manager Date Department Director Date Admin. Services Director Date Mayor Date Budget Office Use Only Type: A B C D E Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Blue Copy: Budget & Research / Yellow Copy: Requester 01:35pm From-AVFUEL • T3466316E1 • 7-054 P.03/04 F-310 ADDENDUM A to the CUSTOMER CREDIT AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILE, AR The following is incorporated and made part of the above named agreement with a reference date of September 28, 2001. 1. Section 6, Interest on Past Due Charges: At the end of the first sentence, after the word "law", the following is inserted, "in The State of Arkansas". 2. Section 16, Governing Law: At the end of the sentence the words, "either place" are deleted and replaced with the words, "The State of Arkansas". AVFUEL CORPORATION THE CITY of FAYETTEVIL.LE, AR 13y: By: Signature Signature Its: it': Print name / Title Print name / Title Date: Date: c c A Oct -30-01 14:12 AVE",CORPORATIOn W rau-ul luc VI•IM ru r ICVILLC nlnrvnl I11 -0a -0I 01 Asps Frpu-AVFLEL 81641,2 9559 UV! YV REs . /q7 vi -8 P.03 rnn IRI. r. VO 134t631881 T-864 P.08/04 F-310 ADDENDUM A to the CUSTOMER CREDIT AGREEMENT between AV FUEL CORPORATION and THE CITY OF FAYETTEVILE, AR The following is incorporated and made part of the above named agreement with a reference data of September 28, 2001. 1. Section 6, Interest on Pan Due Charges: At the end of the first sentence, after the word "law", the following ie inserted, "in The State of Arkansas". Z. Schen 16, Governing Law: At the end of the sentence the words, "either place" are deleted and replaced with the words. "The State of Arkansas". AVFTJEL CORPORATION 11(1 CITY of FAYETTEVILLE, AR By: _ Dy 5ignamn tls: WILLIAM B. LIGHT la: pd—MriplreftlItThAltrlaltNISTRATION DAM: pout • • AVFUEL CORPORATION CUSTOMER CREDIT AGREEMENT SUMMARY OF TERMS • Customer: City of Fayetteville Address: 4500 South School Avenue, Suite F, Fayetteville, AR 72701 Aviation Fuel Supply Agreement ("AFSA") dated September 27, 2001 Credit Limit Twenty thousand Dollars ($20,000) Payment Due Date One Percent (1%) ten (10), Net Thirty (30) days after delivery. CUSTOMER: Cry OFFAYEITEVILLE AVFUEL CORPORATION By: By: customer signature Its: W Its: title GUARANTOR(S): (Principal Owners Signature) (Spouse's Signature) (Print Name & Social Security #) (Print Name & Social Security #) The reference date of this Agreement is September 27, 2001; The effective date is such date or TERMS AND CONDITIONS 1. BUSINESS PURPOSE. The Customer, in the course of its business of buying and selling aviation fuels and related products and services, will purchase fuels and other products from AVFUEL under the AFSA which is referenced in the Summary. Under the AFSA, unless otherwise agreed, the Customer must pay for aviation fuel and other products at or in advance of the date of delivery. Based upon the warranties and commitments made by the Customer in this Agreement, AVFUEL agrees to extend credit to the Customer for purchases under the AFSA upon the terms and subject to the limitations contained in this Agreement 2. OPEN ACCOUNT CREDIT/RESTRICTIONS. AVFUEL hereby agrees to extend to Customer a line of purchase money credit upon open account, subject to the following restrictions: 2.1 The credit may be used only for the purpose of aviation fuel and other products from AVFUEL under the AFSA. 2.2 The total credit available to Customer shall be limited to the Credit Limit stated in the Summary and Customer shall have no right to charge any amount to said account which, when added to the total indebtedness of Customer to AVFUEL outstanding as of the date thereof, would cause the total indebtedness to AVFUEL outstanding immediately after such charge to exceed the Credit Limit. The Credit Limit may be changed by AVFUEL at any time for any reason upon written notice to the Customer. 2.3 The credit may not be used during any period in which the Customer is in default. For such purposes, the Customer will be in default if any amount charged to the Customer's account is not paid on or before its due date; if and for so long as the Customer is in breach of any of its obligations under the AFSA or under any "Supplementary Ag.eement" referenced in the AFSA; if AVFUEL determines that there is any misrepresentation or breach of warranty by the Customer under or with respect to this Agreement, the AFSA or any such "Supplementary Agreement"; or if AVFUEL reasonably deems itself insecure as to the ability of the Customer to pay its account. 3. TERMINATION/SURVIVAL This Agreement shall continue in effect until terminated by either AVFUEL or Customer. Either party may terminate this Agreement at any time for any reason or for no reason by notice to the other party. From and after the date of termination, Customer shall have no right to charge new purchases to its account and AVFUEL shall have no obligation to accept new charges to Customer's account, but the rcnyafive rights, duties and obligations of the parties with respect to any charges made by Customer and accepted by AVFUEL, including Customer's obligation to pay all sums outstanding on said account, and AVFUEL's remedies for the breach or enforcement of this Agreement and all rights of AVFUEL in any collateral securing payment of the indebtedness, shall survive such termination and continue in full effect until such time as all indebtedness of Customer to AVFUEL shall have been paid in full. The termination of the AFSA, by expiration or otherwise, shall excuse notice of termination under this Agreement and shall automatically terminate this Agreement unless a new or renewal AFSA shall have taken effect between the parties. Termination of this Agreement shall not automatically terminate the AFSA. If AVFUEL, intentionally or unintentionally, permits any purchases on credit after automatic termination as defined above, then the terms of this Agreement pertain to those charges. Pagel of 3 4. CHARGES TO CUSTOMER'S AccoUrir. Subjellithe approval by AVFUEL at its offices in Michigan -purchases by Customer for which payment is not received by AVFUEL at or prior to the time of delivery to Customer shall be charged as principal to Customer's account. AVFUEL may require Customer or Customer's authorized representative, as a condition of delivery or at any time thereafter, to give receipt for all deliveries in writing and to sign sales slips and other documents in AVFUEL's opinion necessary to record or substantiate any or all transactions resulting in a charge to Customers account. 5. PAYMENT TERMS. Payment for each and every purchase money charge to Customer's account shall be payable in full on or before the Payment Due Date specified in the Summary. AVFUEL will invoice Customer separately for each delivery. Unless otherwise determined by AVFUEL in its discretion, all payments received will be applied by AVFUEL (subject to collection of remittance if other than cash) first to interest, if any, accrued on Customer's account, then to the unpaid principal balance owed upon such account in direct calendar order of due date. Customer agrees to pay to AVFUEL upon demand a fee of $35.00, added to principal, for each check, draft or other form of remittance which is not honored by the drawee upon due presentment by AVFUEL or its agents. 6. IntrEREsr ON PAsr DOE CHARGES. Any amount charged to Customer's account which is not paid on or before the Payment Due Date specified in the Summary shall bear interest until paid at the lower of 18% per annum or the highest rate which may lawfully be contracted for, charged and received according to applicable law. Not withstanding anything in this Agreement to the contrary, Customer shall never be obligated to pay and AVFUEL shall never be entitled to receive any interest upon any indebtedness incurred by Customer pursuant hereto in excess of the maximum contract rate of interest authorized by applicable law, and it is expressly understood and agreed that if AVFUEL shall render any charge for the payment of usurious interest, such charge shall be automatically and unconditionally reduced to the maximum nonusurious amount, and the excess if paid shall be applied as a credit to Customer's account. If such application results in a credit balance in Customer's said account, such balance shall be refunded to Customer or applied to the next due amount in such account. 7. SFr OFF FOR PAST DUE CHARGES. If any amount charged to a Customer's account is not paid on or before the Payment Due Date, then AVFUEL, by written notice to the Customer, may apply against that past due charge any amounts payable by AVFUEL to the Customer, to any guarantor of the Customer's obligations under this Agreement or to any affiliate entity that owns, is owned by or is under common ownership with the Customer. The Customer confirms that it is authorized to make this commitment with respect to amounts owed by AVFUEL to such guarantors and affiliate entities. 8. COLLECTION Cosrs. If Customer fails to pay any amount owing on Customer's account when due, and said account is placed in the hands of an attorney or other agent for collection or if collection action is taken through proceedings in any court, Customer agrees to pay as additional principal of said account, upon demand, AVFUEL's reasonable cost of collection, including but not limited to attorney's and agent's reasonable fees. 9. STATEMENTS. AVFUEL may send Customer a statement of Customers account each month for Customer's information showing in summary or in such detail as AVFUEL may deem appropriate current transactions AVFUEL posted to Customers account to date thereof, the amount of interest (if any) which has accrued, and the balance owing thereon; however, the failure of AVFUEL to famish any such statement shall not relieve Customer of the obligation to make payment when due in accordance with the other terms of this Agreement. Customer agrees to review all statements promptly after receipt, and shall have ten (10) days from date of receipt to notify AVFUEL in writing of any discrepancies. If no such notice is given, such statement shall be conclusively presumed correct. 10. SECURITY INTEREST. For the purpose of securing a payment of all indebtedness of Customer to AVFUEL from time to time outstanding (including, without limitation, any amounts due under this Agreement, the AFSA, any "Supplementary Agreement" referenced in the AFSA, or any other agreement or instrument between AVFUEL and the Customer) grants to AVFUEL a security interest and first priority lien, in and to all of Customers inventory of aviation fuels and other products of similar type or description as are purchased from AVFUEL, and all accounts, contract rights and other proceeds from such inventory, whether now owned or hereafter acquired. If for so long as the AFSA is in effect, all of Customers inventory of aviation fuels will be presumed to be merchandise purchased pursuant to the AFSA and subject to the purchase money security interest granted by this Agreement. Customer agrees to execute all financing statements and other instruments which AVFUEL may reasonably require in order to create, perfect and continue in force said security interest and first priority lien. Customer authorizes AVFUEL to file a true copy of this Agreement in lieu of any financial statement. Customer further authorizes to AVFUEL and its agents the right, in case of default by Customer under this Agreement, to gain entry by any peaceful means upon any premises of the Customer where the collateral or any portion thereof may be situated, and to remove and repossess the same for disposition by AVFUEL. The rights and obligations of AVFUEL and the Customer under and with respect to the security interest and first priority lien created by this Section shall be interpreted in accordance with the Uniform Commercial Code in effect in the state of the Billing Address of the Customer as stated in the Summary. 11. WAIVER OF DEFAULT. No waiver by AVFUEL of any default by Customer hereunder shall constitute a waiver of any other default, whether of similar or dissimilar nature, and no waiver of any default shall be deemed consent to the continuation of such default, and the forbearance or failure by AVFUEL to exercise any remedy with respect to any default shall not prevent or in any wise impair the exercise of such right or remedy by AVFUEL with respect to the same or any other or subsequent default. Please Initial Page 2 of 3 • • 12. FINANCIAL INFORMATION. The Customer agrees to provide to AVFUEL, within ten (10) days after AVFUEL's written request for same, such _ financial statements and tax returns of the Customer as AVFUEL may specify. The Customer further agrees to notify AVFUEL immediately in writing of any substantially adverse change in the Customer's financial condition. 13. ASSIGNMENT. The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 14. NOTICES. All notices permitted or required under this Agreement shall be in writing. Notices by fax shall be deemed "delivered" on the date of confirmed transmission to the fax number designated in the AFSA. Notices by mail shall be deemed delivered on the date deposited with the United States Postal Service, postage prepaid, addressed to the party at the Billing Address specified in the Summary. 15. ExECUrtoN, BINDING EFFECT. THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Extensions of credit prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any extension of credit shall be deemed to have been made under the terms and provisions hereof. When duly executed, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. 16. GOVERNBJG LAW. Except as otherwise provided in Section 10, this Agreement and all rights and obligations under it shall be governed by the laws of the State of Michigan. All claims arising hereunder shall be brought either in Michigan or in the State specified for the Billing Address of the Customer, and jurisdiction shall lie in either place. 17. SEVERABILITY. In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect 18. GUARANTY OF PAYMENT. To induce AVFUEL to extend credit to Customer and to supply the aviation fuel, other products (if any) and other services described in the AFSA and any "Supplementary Agreement" to the AFSA, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounis now or hereafter due pursuant to this Agreement, the AFSA or any Supplementary Agreement. The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as they may be incurred, notice of default by Customer, notice of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in full force and effect until the guarantor(s) or the personal representatives of the guarantor(s) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to make such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agree(s) to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attorney's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 19. ENrmEnv of AGREEMENT. This Agreement, together with the AFSA and any Supplementary Agreement referenced in the AFSA, contains the entire agreement between the parties hereto and there are no other arrangements, agreements, promises or warranties, oral or written, express or implied, affecting it or the subject matters hereof. No change in, addition to, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties hereto. This Agreement terminates and supersedes, as of the Effective Date stated in the Summary, any prior contract between the parties dealing with the same or similar subject matter. Nothing herein shall be construed as terminating any right to receive any payments which had accrued prior to the Effective Date stated in the Summary. Please Initial Page 3 of 3 • AVFUEL CORPORATION • CUSTOMER CREDIT AGREEMENT SUMMARY OF TERMS Customer: City of Fayetteville Address: 4500 South School Avenue, Suite F, Fayetteville, AR 72701 Aviation Fuel Supply Agreement ("AFSA") dated September 27, 2001 Credit Limit: Twenty thousand Dollars ($20,000) Payment Due Date One Percent (1%) ten (10), Net Thirty (30) days after delivery. CUSTOMER: CITY OF FAYETTEVILLE AVFUEL CORPORATION By: By: customer signature Its: Its: title GUARANTOR(S): (Principal Owners Signature) (Spouse's Signature) (Print Name & Social Security #) (Print Name & Social Security #) The reference date of this Agreement is September 27, 2001; The effective date is such date or TERMS AND CONDITIONS I. BUSINESS PURPOSE. The Customer, in the course of its business of buying and selling aviation fuels and related products and services, will purchase fuels and other products from AVFUEL under the AFSA which is referenced in the Summary. Under the AFSA, unless otherwise agreed, the Customer must pay for aviation fuel and other products at or in advance of the date of delivery. Based upon the warranties and commitments made by the Customer in this Agreement, AVFUEL agrees to extend credit to the Customer for purchases under the AFSA upon the terms and subject to the limitations contained in this Agreement. 2. OPEN ACCOUNT CREDIT/RESTRICTIONS. AVFUEL hereby agrees to extend to Customer a line of purchase money credit upon open account, subject to the following restrictions: 2.1 The credit may be used only for the purpose of aviation fuel and other products from AVFUEL under the AFSA. 2.2 The total credit available to Customer shall be limited to the Credit Limit stated in the Summary and Customer shall have no right to . charge any amount to said account which, when added to the total indebtedness of Customer to AVFUEL outstanding as of the date thereof, would cause the total indebtedness to AVFUEL outstanding immediately after such charge to exceed the Credit Limit. The Credit Limit may be changed by AVFUEL at any time for any reason upon written notice to the Customer. 2.3 The credit may not be used during any period in which the Customer is in default. For such purposes, the Customer will be in default if any amount charged to the Customer's account is not paid on or before its due date; if and for so long as the Customer is in breach of any of its obligations under the AFSA or under any "Supplementary Agreement" referenced in the AFSA; if AVFUEL determines that there is any misrepresentation or breach of warranty by the Customer under or with respect to this Agreement, the AFSA or any such "Supplementary Agreement' or if AVFUEL reasonably deems itself insecure as to the ability of the Customer to pay its account. 3. TERMINATION/SURVIvAL. This Agreement shall continue in effect until terminated by either AVFUEL or Customer. Either party may terminate this Agreement at any time for any reason or for no reason by notice to the other party. From and after the date of termination, Customer shall have no right to charge new purchases to its account and AVFUEL shall have no obligation to accept' new charges to Customer's account, but the respective rights, duties and obligations of the parties with respect to any charges made by Customer and accepted by AVFUEL, including Customers obligation to pay all sums outstanding on said account, and AVFUEL's remedies for the breach or enforcement of this Agreement and all rights of AVFUEL in any collateral securing payment of the indebtedness, shall survive such termination and continue in full effect until such time as all indebtedness of Customer to AVFUEL shall have been paid in full. The termination of the AFSA, by expiration or otherwise, shall excuse notice of termination under this Agreement and shall automatically terminate this Agreement unless a new or renewal AFSA shall have taken effect between the parties. Termination of this Agreement shall not automatically terminate the AFSA. If AVFUEL, intentionally or unintentionally, permits any purchases on credit after automatic termination as defined above, then the terms of this Agreement pertain to those charges. Page 1 of 3 4. CHARGES TO CUSTOMER'S ACCOUNT. Subjecfto the approval by AVFUEL at its offices in Michigan, l purchases by Customer for which payment is not received by AVFUEL at or prior to the time of delivery to Customer shall be charged as principal to Customers account. AVFUEL may require Customer or Customers authorized representative, as a condition of delivery or at any time thereafter, to give receipt for,all deliveries in writing and to sign sales slips and other documents in AVFUEL's opinion necessary to record or substantiate any or all transactions resulting in a charge to Customer's account. 5. PAYMENT TERMS. Payment for each and every purchase money charge to Customer's account shall be payable in full on or before the Payment Due Date specified in the Summary. AVFUEL will invoice Customer separately for each delivery. Unless otherwise determined by AVFUEL in its discretion, all payments received will be applied by AVFUEL (subject to collection of remittance if other than cash) first to interest, if any accrued on Customer's account, then to the unpaid principal balance owed upon such account in direct calendar order of due date. Customer agrees to pay to AVFUEL upon demand a fee of 535.00, added to principal, for each check, draft or other form of remittance which is not honored by the drawee upon due presentment by AVFUEL or its agents. ( ANVIL ` S_l 4.' J� sw _v/ - .�S�S • 6. INTEREST ON PAST DUE' CH S. Any amount charged` to Customer's account which is not paid on or before the Payment Due Date specified in the Summary shall bear intere ntil paid the highest rate which may lawfully be contracted for, charged and received according to applicable la of withstanding anything in this Agreement to the contrary, Customer shall never be obligated to pay and AVFUEL shall never be entitled to receive any interest upon any indebtedness incurred by Customer pursuant hereto in excess of the maximum contract rate of interest authorized by applicable law, and it is expressly understood and agreed that if AVFUEL shall render any charge for the payment of usurious interest, such charge shall be automatically and unconditionally reduced to the maximum nonusurious amount, and the excess if paid shall be applied as a credit to Customers account. If such application results in a credit balance in Customers said account, such balance shall be refunded to Customer or applied to the next due amount in such account. 7. SEr OFF FOR PAST DUE CHARGES. If any amount charged to a Customer's account is not paid on or before the Payment Due Date, then AVFUEL, by written notice to the Customer, may apply against that past due charge any amounts payable by AVFUEL to the Customer, to any guarantor of the Customer's obligations under this Agreement or to any affiliate entity that owns, is owned by or is under common ownership with the Customer. The Customer confirms that it is authorized to make this commitment with respect to amounts owed by AVFUEL to such guarantors and affiliate entities. S. COLLECTION COSTS. If Customer fails to pay any amount owing on Customer's account when due, and said account is placed in the hands of an attomcy or other agent for collection or if collection action is taken through proceedings in any court, Customer agrees to pay as additional principal of said account, upon demand, AVFUEL's reasonable cost of collection, including but not limited to attorney's and agent's reasonable fees. 9. STATEMENTS. AVFUEL may send Customer a statement of Customer's account each month for Customer's information showing in summary or in such detail as AVFUEL may deem appropriate current transactions AVFUEL posted to Customers account to date thereof, the amount of interest (if any) which has accrued, and the balance owing thereon; however, the failure of AVFUEL to furnish any such statement shall not relieve Customer of the obligation to make payment when due in accordance with the other terms of this Agreement. Customer agrees to review all statements promptly after receipt, and shall have ten (10) days from date of receipt to notify AVFUEL in writing of any discrepancies. Ent t. 10. SECURITY INTEREST. For the purpose of securing a payment of all indebtedness of Customer to AVFUEL from time to time outstanding (including, without limitation, any amounts due under this Agreement, the AFSA, any "Supplementary Agreement" referenced in the AFSA, or any other agreement or instrument between AVFUEL and the Customer) grants to AVFUEL a security interest and first priority lien, in and to all of Customers inventory of aviation fuels and other products of similar type or description as are purchased from AVFUEL, and all accounts, contract rights and other proceeds from such inventory, whether now owned or hereafter acquired. If for so long as the AFSA is in effect, all of Customer's inventory of aviation fuels will be presumed to be merchandise purchased pursuant to the AFSA and subject to the purchase money security interest granted by this Agreement. Customer agrees to execute all financing statements and other instruments which AVFUEL may reasonably require in order to create, perfect and continue in force said security interest and first priority lien. Customer authorizes AVFUEL to file a true copy of this Agreement in lieu of any financial statement. Customer further authorizes to AVFUEL and its agents the right, in case of default by Customer under this Agreement, to gain entry by any peaceful means upon any premises of the Customer where the collateral or any portion thereof may be situated, and to remove and repossess the same for disposition by AVFUEL. The rights and obligations of AVFUEL and the Customer under and with respect to the security interest and first priority lien created by this Section shall be interpreted in accordance with the Uniform Commercial Code in effect in the state of the Billing Address of the Customer as stated in the Summary. I I. WAIVER OF DEFAULT. No waiver by AVFUEL of any default by Customer hereunder shall constitute a waiver of any other default, whether of similar or dissimilar nature, and no waiver of any default shall be deemed consent to the continuation of such default, and the forbearance or failure by AVFUEL to exercise any remedy with respect to any default shall not prevent or in any wise impair the exercise of such right or remedy by AVFUEL with respect to the same or any other or subsequent default. Please Initial Pace 2 of 3 • 1 12. FINANCIAL INFORMATION. The Customer agrees to provide to AVFUEL, within ten (10) days atter AVFUEL's written request for same, such financial statements and tax retums of the Customer as AVFUEL may specify. The Customer further agrees to notify AVFUEL immediately in writing of any substantially adverse change in the Customer's financial condition. 13. ASSIGNMENT. The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 14. NOTICES All notices permitted or required under this Agreement shall be in writing. Notices by fax shall be deemed "delivered" on the date of confirmed transmission to the fax number designated in the AFSA. Notices by mail shall be deemed delivered on the date deposited with the United Stales Postal Service, postage prepaid, addressed to the party at the Billing Address specified in the Summary. 15. EXECUTION, BINDING EFrecr. THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Extensions of credit prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any extension of credit shall be deemed to have been made under the terms and provisions hereof. When duly executed, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. 16. GOVERNING LAW. Except as otherwise provided in Section 10, this Agreement and all rights and obligations under it shall be governed by the laws of the State of Michigan. All claims arising hereunder shall be brought either in Michigan or in the State specified for the Billing Address of the Customer, and jurisdiction shall Vie in sirlwrylaco— kJ". vvh s GS 17. SEVERABILITY. In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. 18. GUARANTY OF PAYMENT. To induce AVFUEL to extend credit to Customer and to supply the aviation fuel, other products (if any) and other services described in the AFSA and any "Supplementary Agreement" to the AFSA, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounts now or hereafter due pursuant to this Agreement, the AFSA or any Supplementary Agreement. The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as they may be incurred, notice of default by Customer, notice of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in full force and effect until the guarantor(s) or the personal representatives of the guarantor(s) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to make such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agree(s) to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attomey's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 19. ENTIRETY OF AGREEMENT. This Agreement, together with the AFSA and any Supplementary Agreement referenced in the AFSA, contains the entire agreement between the panics hereto and there are no other arrangements, agreements, promises or warranties, oral or written, express or implied, affecting it or the subject matters hereof. No change in, addition to, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties hereto. This Agreement terminates and supersedes, as of the Effective Date stated in the Summary, any prior contract between the parties dealing with the same or similar subject matter. Nothing herein shall be construed as terminating any right to receive any payments which had accrued prior to the Effective Date stated in the Summary. Please Initial Page 3 of 3 • • AVFUEL CORPORATION • CUSTOMER CREDIT AGREEMENT SUMMARY OF TERMS RIS, lµ7-o�-6 Customer: City of Fayetteville Address: 4500 South School Avenue, Suite F, Fayetteville, AR 72701 Aviation Fuel Supply Agreement ("AFSA") dated September 27 2001 Credit Limit: Twenty thousand Dollars ($20,000) Payment Due Date One Percent (1"/s) ten (10), Net Thirty (30) days after delivery. CUSTOMER: CITY OF FAYETTEVILLE By customer signature Its: '1 title GUARANI -011(S): (Principal Owners Signature) (Print Name & Social Security #) AVFUEL CORPORATION Its: WILLIAM B. LIGHT • 1 , 1 RATION (Spouse's Signature) (Print Name & Social Security #) The reference date of this Agreement is September 27, 2001; The effective date is such date or TERMS AND CONDITIONS L I3uSINESS PURPosE. The Customer, in the course of its business of buying and selling aviation fuels and related products and services, will purchase fuels and other products from AVFUEL under the AFSA which is referenced in the Summary. Under the AFSA, unless otherwise agreed, the Customer must pay for aviation fuel and other products at or in advance of the date of delivery. Based upon the warranties and commitments made by the Customer in this Agreement, AVFUEL agrees to extend credit to the Customer for purchases under the AFSA upon the terms and subject to the limitations contained in this Agreement. 2. OPEN ACCOUNT CREDIT/REsrRtcnoNs. AVFUEL hereby agrees to extend to Customer a line of purchase money credit upon open account, subject to the following restrictions: 2.1 The credit may be used only for the purpose of aviation fuel and other products from AVFUEL under thc AFSA. 2.2 The total credit available to Customer shall be limited to the Credit Limit stated in the Summary and Customer shall have no right to charge any amount to said account which, when added to the total indebtedness of Customer to AVFUEL outstanding as of the date thereof, would cause the total indebtedness to AVFUEL outstanding immediately atter such charge to exceed thc Credit Limit. The Credit Limit may be changed by AVFUEL at any time for any reason upon written notice to the Customer. 2.3 The credit may not be used during any period in which the Customer is in default. For such purposes, the Customer will be in default if any amount charged to the Customer's account is not paid on or before its duc date; if and for so long as thc Customer is in breach of any of its obligations under the AFSA or under any "Supplementary Agreement" referenced in the AFSA; if AVFUEL determines that there is any misrepresentation or breach of warranty by the Customer under or with respect to this Agreement, the AFSA or any such "Supplementary Agreement"; or if AVFUEL reasonably deems itself insecure as to the ability of the Customer to pay its account. 3. TERMINATION/SURVIVAL. This Agreement shall continue in effect until terminated by either AVFUEL or Customer. Either party may temminatc this Agreement at any time for any reason or for no reason by notice to the other party. From and after the date of termination, Customer shall have no right to charge new purchases to its account and AVFUEL shall have no obligation to accept new charges to Customers account, but the respective rights, duties and obligations of the parties with respect to any charges made by Customer and accepted by AVFUEL, including Customer's obligation to pay all sums outstanding on said account, and AVFUEL's remedies for the breach or enforcement of this Agrccmcnt and all rights of AVFUEL in any collateral securing payment of the indebtedness, shall survive such termination and continue in full effect until such time as all indebtedness of Customer to AVFUEL shall have been paid in full. The termination of the AFSA, by expiration or otherwise, shall excuse notice of termination under this Agreement and shall automatically terminate this Agreement unless a new or renewal AFSA shall have taken effect between the parties. Termination of this Agreement shall not automatically terminate the AFSA. If AVFUEL, intentionally or unintentionally, pcmmits any purchases on credit after automatic temrination as defined above, then thc terms of this Agreement pertain to those charges. Pace 1 of 3 g85 . /'1.7-01- 8 4. CIInRGEs To CUSTOMER'S ACCOUNT. Sit to the approval by AVFUEL at its offices in Mich all purchases by Customer for which payment is not received by AVFUEL at or prior to the time of delivery to Customer shall be charged as principal to Customer's account. AVFUEL may require Customer or Customers authorized representative, as a condition of delivery or at any time thereafter, to give receipt for all deliveries in writing and to sign sales slips and other documents in AVFUEL's opinion necessary to record or substantiate any or all transactions resulting in a charge to Customer's account. 5. PAYMIiNr TERMS. Payment for each and every purchase money charge to Customer's account shall be payable in full on or before the Payment Due Date specified in the Summary. AVFUEL will invoice Customer separately for each delivery. Unless otherwise determined by AVFUEL in its discretion, all payments received will be applied by AVFUEL (subject to collection of remittance if other than cash) first to interest, if any, accrued on Customer's account, then to the unpaid principal balance owed upon such account in direct calendar order of due date. Customer agrees to pay to AVFUEL upon demand a fee of 535.00, added to principal, for each check, draft or other form of remittance which is not honored by the drawee upon due presentment by AVFUEL or its agents. 6. Im'ERLST ON PAST DUE CIIARGES. Any amount charged to Customer's account which is not paid on or before the Payment Due Date specified in the Summary shall bear interest until paid at the lower of Ig% per annum or the highest rate which may lawfully be contracted for, charged and received according to applicable law. Not withstanding anything in this Agreement to the contrary, Customer shall never be obligated to pay and AVFUEL shall never be entitled to receive any interest upon any indebtedness incurred by Customer pursuant hereto in excess of the maximum contract rate of interest authorized by applicable law, and it is expressly understood and agreed that if AVFUEL shall render any charge for the payment of usurious interest, such charge shall be automatically and unconditionally reduced to the maximum nonusurious amount, and the excess if paid shall be applied as a credit to Customer's account. If such application results in a credit balance in Customer's said account, such balance shall be refunded to Customer or applied to the next due amount in such account. 7. SET OH Fou PAST Due CHARGES. If any amount charged to a Customer's account is not paid on or before the Payment Due Date, then AVFUEL, by written notice to the Customer, may apply against that past due charge any amounts payable by AVFUEL to the Customer, to any guarantor of the Customer's obligations under this Agreement or to any affiliate entity that owns, is owned by or is under common ownership with the Customer. The Customer confirms that it is authorized to make this commitment with respect to amounts owed by AVFUEL to such guarantors and affiliate entities. S. COLLECTION Costs. If Customer fails to pay any amount owing on Customer's account when due, and said account is placed in the hands of an attorney or other agent for collection or if collection action is taken through proceedings in any court, Customer agrees to pay as additional principal of said account, upon demand, AVFUEL's reasonable cost of collection, including but not limited to attorney's and agent's reasonable fees. 9. Sr,rrenII NTS. A VFUEL may send Customer a statement of Customer's account each month for Customer's information showing in summary or in such detail as AVFUEL may deem appropriate current transactions AVFUEL posted to Customer's account to date thereof, the amount of interest (if any) which has accrued, and the balance owing thereon; however, the failure of AVFUEL to furnish any such statement shall not relieve Customer of the obligation to make payment when due in accordance with the other terms of this Agreement. Customer agrees to review all statements promptly after receipt, and shall have ten (10) days from date of receipt to notify AVFUEL in writing of any discrepancies. If no such notice is given, such statement shall be conclusively presumed correct. 10. SECURITY INTEREST. For the purpose of securing a payment of all indebtedness of Customer to AVFUEL from time to time outstanding (including, without limitation, any amounts due under this Agreement, the AFSA, any "Supplementary Agreement" referenced in the AFSA, or any other agreement or instrument between AVFUEL and the Customer) grants to AVFUEL a security interest and first priority lien, in and to all of Customer's inventory of aviation fuels and other products of similar type or description as are purchased from AVFUEL, and all accounts, contract rights and other proceeds from such inventory, wheeler now owned or hereafter acquired. If for so long as the AFSA is in effect, all of Customer's inventory of aviation fuels will be presumed to be merchandise purchased pursuant to the AFSA and subject to the purchase money security interest granted by this Agreement. Customer agrees to execute all financing statements and other instruments which AVFUEL may reasonably require in order to create, perfect and continue in force said security interest and first priority lien. Customer authorizes AVFUEL to file a true copy of this Agreement in lieu of any financial statement. Customer further authorizes to AVFUEL and its agents the right, in case of default by Customer under this Agreement, to gain entry by any peaceful means upon any premises of the Customer where the collateral or any portion thereof may be situated, and to remove and repossess the same for disposition by AVFUEL. The rights and obligations of AVFUEL and the Customer under and with respect to the security interest and first priority lien created by this Section shall be interpreted in accordance with the Uniform Commercial Code in effect in the state of the Billing Address of the Customer as stated in the Summary. 11. \VAIvrR of Dr:FAucr. No waiver by AVFUEL of any default by Customer hereunder shall constitute a waiver of any other default, whether of similar or dissimilar nature, and no waiver of any default shall be deemed consent to the continuation of such default, and the forbearance or failure by AVFUEL to exercise any remedy with respect to any default shall not prevent or in any wise impair the exercise of such right or remedy by AVFUEL with respect to the sane or any othcr or subsequent default. Please Initial Page 2of3 • • R0.147.01-8 12. FINANCIAL. INFORMATION. The Customer agrees to provide to AVFUEL, within ten (10) days after AVFUEL's written request for same, such financial statements and tax returns of the Customer as AVFUEL may specify. The Customer further agrees to notify AVFUEL immediately in writing of any substantially adverse change in the Customers financial condition. 13. ASSIGNMENT. The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 14. Notices. All notices permitted or required under this Agrcemcnt shall be in writing. Notices by fax shall be deemed "delivered" on the date of confined transmission to the fax number designated in the AFSA. Notices by mail shall be deemed delivered on the date deposited with the United States Postal Service, postage prepaid, addressed to the party at the Billing Address specified in the Summary. 15. EXECUTION, BINDING EFFECT. THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Extensions of credit prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any extension of credit shall be deemed to have been made under the terms and provisions hereof. When duly executed, this Agreement shall be binding upon and shall inure to the b:nefit of the panics hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. 16. GOVERNING LAW. Except as otherwise provided in Section 10, this Agreement and all rights and obligations under it shall be governed by the laws of the State of Michigan. All claims arising hereunder shall be brought either in Michigan or in the State specified for the Billing Address of the Customer, and jurisdiction shall lie in either place. 17. SEVERAnILITY. In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. IS. GUARANTY OF PAYMENT. To induce AVFUEL to extend credit to Customer and to supply the aviation fuel, other piudacts (if any) and other services described in the AFSA and any "Supplementary Agreement" to the AFSA, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounts now or hereafter due pursuant to this Agreement, the AFSA or any Supplementary Agreement. The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as thcy niay be incurred, notice of default by Customer, notice of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in full force and effect until thc guarantor(s) or the personal representatives of thc guarantor(s) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to stake such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agree(s) to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attorney's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 19. ENrIRLrY or AGREEMENT. This Agreement, together with the AFSA and any Supplementary Agreement referenced in the AFSA, contains the entire agreement between the parties hereto and there are no other arrangements, agreements, promises or warranties, oral or written, express or implied, affecting it or the subject matters hereof. No change in, addition to, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties hereto. This Agreement terminates and supersedes, as of Effective Date stated in the Summary, any prior contract between the parties dealing with the sante or similar subject shatter. Nothing herein shall be construed as terminating any right to receive any payments which had accrued prior to the Effective Date stated in the Summary. Please Initial Page 3 of 3 ADDENDUM to the AVIATION FUEL SUPPLY AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILLE, AR The following is incorporated and made part of the above-named agreement with a reference date of September 28, 2001. Section 2. Term: Replace the paragraph with "The term of this agreement shall be three (3) years, commencing on the Effective Date stated in the Summary." AVFUEL CORPORATION THE CITY OF FAYETTEVILLE, AR By: By: Its: Its: c4itaxoli Date: Date: A0/49 /O / Contracts/Templates/PSI Addendum (Performance -2) 4-00 • • ADDENDUM to the AVIATION FUEL SUPPLY AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILLE, AR The following is incorporated and made part of the above-named agreement with a reference date of September 28, 2001. Section 2. Term: 4tS\.. \ yeaV Replace the paragraph with "The term of this agreement shall be throe (3) yoars, commencing on the Effective Date stated in the Summary." wOck . Hc, new.l OrkA0lel sAAN AVFUEL CORPORATION THE CITY OF FAYETTEVILLE, AR w By: By: Its: Its: Date. Date: Contracts/Templates/PSI Addendum (Performance -2) 4-00 • • Rt5.147-01-8 ADDENDUM to the AVIATION FUEL SUPPLY AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILLE, AR The following is incorporated and made part of the above-named agreement with a reference date of September 28, 2001. Section 2. Term: Replace the paragraph with "The term of this agreement shall be three (3) years, commencing on the Effective Date stated in the Summary." AVFUEL CORPORATION THE CITY OF FAYETTEVILLE, AR By /*ZvPZ.e.,7441- its: Date: WILLIAM B. LIGHT VICE PRESIDEN 1, MDMINICTRATION /-32- By: Its: '422a-,6( WV/)/ Date: ContractslTemplates/FS 1 Addendum (Performance -2) 4-00 • • AVFUEL CORPORATION AWATION FUEL SUPPLY AGREEMENT SUMMARY OF TERMS AND CONDITIONS A. GENERAL INFORMATION: Customer (full legal name): city of Fayetteville, The Customer is a: Corporation (type) _ State _ Partnership _ State _• Sole Owner/Proprietorship Federal Employer Identification Number: Billing Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 Shipping Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 PRODUCTS: Estimated - Estimated Annual Annual Ouantity Ouantity Avgas 80 Jet A w/additive Avgas.100 JP8 Jet A Other As. fl%Ol4 APPLICABLE SUPPLEMENTARY AGREEMENTS ATTACHED AND/OR INCORPORATED HEREIN: Brand Program: Credit Card Program: Refueler/Equipment Lease: Credit Agreement: Other: D. LIABILITY INSURANCE CARRIER: (certificates naming A VFUEL as an additional insured must be attached): The terms and conditions governing the sale of aviation fuel products ("Products") and other services are set forth above and on the following pages, which are made a part of this Agreement. The reference date of this Agreement is September 28, 2001. The effective date is such date or CUSTOM By: Its: —4291 Signature llgt' 1 Cocr7/ 41141 O v Print Ie / itle Fax Number: Sol - 51,r- (8257 AVFUEL CO OR By: Its: WILI IAM R LIGHT VICE PRESIDENT, ADMINISTRATION Fax Number: The undersigned hereby guarantee(s) payment and performance of this Agreement by Customer as provided in Section 20 hereof: By: Social Security: Customer's Initials Revised 11/96 Form FSI Page I of 5 • 1. PURCHASE AND SALE: Subject to the terms and conditions herein, throughout the entire term of this Agreement. AVFUEL agrees to sell and deliver, and Customer agrees to purchase and pay for, Customer's entire requirements of the Products listed in Paragraph B of the Summary for use or sale by the Customer at the Delivery Address(es) listed in Paragraph A of the Summary. The Annual Quantities listed in Paragraph B of the Summary are Customer's best estimate of its requirements of the Products for the year commencing with the Effective Date stated in the Summary. 2. TERM: The term of this Agreement shall be five (5) years, commencing on the Effective Date stated in the Summary. The term shall be automatically renewed for successive three (3) year periods absent notice to the other party of intent to terminate at the end of the then current term. Such notice shall be delivered at least ninety (90) days but not more than one hundred -twenty (120) days prior to the end of the then current tern. 3. PRICE AND PAYMENT: 3.1 The price per gallon for Products delivered to Customer shall be AVFUEL's established price per gallon, in effect at the time AVFUEL loads the Product into its delivery trucks. Prices shall be F.O.B. the Delivery Address(es) listed in Paragraph A of the Summary and shall be exclusive of all taxes, fees, surcharges and other charges. Prices are subject to change without notice to Customer. 3.2 Unless otherwise agreed in writing or otherwise required by the state law where the Product is delivered, die standard unit of measurement of quantities of Products purchased and delivered shall be the Net Gallon. The term "Net Gallon" shall mean the volumetric measurement, in U.S. gallons of a Product as actually loaded and measured at the point of shipment, adjusted to the number of U.S. gallons that would have been loaded at a temperature of sixty degrees Fahrenheit (60F). The conversion ratio shall be from the current ASTM-IP Petroleum Measurement Tables. 3.3 Unless otherwise agreed in writing, Customer agrees to pay for all Products purchased hereunder by prior wire transfer. If AVFUEL extends credit to Customer, payment shall be upon terms and conditions specified by AVFUEL at the time such credit is extended or pursuant to the Credit Agreement. 4. TAXES AND OTHER CIARGEs: The Customer shall pay all taxes, assessments, fees and similar charges (the "Taxes") which are imposed by any federal, state or local governmental agency or by any airport authority (the "Taxing Authorities") based upon the delivery, sale, importation, inspection, storage or use of the Products purchased by the Customer, excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the seller collect the Taxes from the purchaser at the time of sale, the AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitles to an exemption from any Taxes, which the Taxing Authority requires to be collected by the seller, then, in order to permit AVFUEL not to collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates relating to those Taxes, The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Accordingly, if, subsequent to the issuance of any invoice, the Taxing Authority or AVFUEL advises the Customer of additional Taxes payable with respect to the Products covered by that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customers indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxs which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Products or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which arc assessed against the Customer as a result of the late payment of any Taxes i1AVFUEL VFUEL is under applicable law to collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. DELIVERY: 5.1 Deliveries shall be made to the Delivery Address(es) listed in Paragraph A of the Summary. Unless otherwise agreed in writing, the minimum delivery will be a full standard transport tanker load. AVFUEL reserves the right to impose a surcharge for deliveries of less than a full tanker load. The carrier shall be provided access to Customer's storage facilities at all reasonable times for the purpose of unloading. 5.2 Delivery shall be into Customer's tanks that have been inspected and approved by the appropriate regulatory agencies. Customer shall be responsible for all unloading operations including the placement of hoses into the proper storage tanks. Customer shall specifically designate and gage the available capacity of that tank into which the Product shall be unloaded, and shall bear all responsibility of spillage or contamination of the Product after it leaves the end of any hose provided by the carrier. Access to tanks shall be such that the carrier can safely and conveniently reach the Customer's designated storage facility with the hoses available, and the carrier may refuse to complete any delivery which cannot, in the carrier's opinion, be made safely and conveniently. 6. EXCUSED NON-PERFORMANCE: The parties recognize that from time to time a specific Product may become unavailable for sale. For purposes of this Agreement, the term "unavailable" shall mean that AVFUEL, for any reason whatsoever, including but not limited to government action, weather, reduced or allocated fuel supplies or the like, is not able to deliver a specific Product within three (3) days of the specific time requested by Customer. In that event, and only to the extent of such unavailability, the parties hereto shall be relieved of their obligations under Section 2.0 hereof. 7. LIMITED WARRANTY: AVFUEL WARRANTS THAT ALL PRODUCTS DELIVERED PURSUANT TO THIS AGREEMENT WILL CONFORM TO THE FOLLOWING SPECIFICATIONS: 7.1 IF CUSTOMER IS PARTICIPATING IN A BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE SPECIFICATIONS FOR Customer's Initials Revised 11/96 Form FSl 'C, - Page 2 of 5 PRODUCTS IN THAT BRAND PR' AM. S p254 Iµ7-61-8 7.2 IF THE CUSTOMER IS NOT PARTICIPATING IN ANY BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE CURRENT MINIMUM A.S.T.M. PRODUCT SPECIFICATIONS APPLICABLE TO THOSE PRODUCTS. THIS WARRANTY OF CONFORMITY TO SPECIFICATIONS IS THE ONLY WARRANTY GIVEN BY AVFUEL REGARDING THE PRODUCTS. AVFUEL DISCLAIMS ANY OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN THE EVENT OF ANY BREACH BY AVFUEL OF THIS LIMITED WARRANTY, AVFUEL, UPON RECEIPT OF A NOTICE OF CLAIM CONFORMING TO THE REQUIREMENTS OF SECTION 8, AVFUEL, AT ITS ELECTION, WILL REFUND TO THE CUSTOMER THE PRICE PAID FOR ANY NON -CONFORMING PRODUCTS OR WILL PROMPTLY REPLACE THE NON -CONFORMING PRODUCTS WITH PRODUCTS CONFORMING TO THE APPLICABLE SPECIFICATIONS. THIS OBLIGATION OF REFUND OR REPLACEMENT SHALL BE THE SOLE OBLIGATION OF AVFUEL IN THE EVENT OF ITS BREACH OF ITS WARRANTY. AVFUEL DISCLAIMS ANY OTHER OBLIGATIONS, INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION FOR ANY INCIDENTAL, CONSEQUENTIAL OR OTHER DAMAGES RESULTING FROM ITS BREACH OF THIS LIMITED WARRANTY. 8. Cutnts: Any claim by the Customer that any Products do not conform to the specifications described in Section 7 shall be effective only if made by written notice delivered to AVFUEL within twenty-four (24) hours after the Product is delivered to the Customer. Any claim by the Customer of any discrepancy in the quantity of the Product delivered shall be effective only if made by written notice delivered to AVFUEL within thirty (30) days after the Product is delivered to the Customer. Given die nature of die Products, time shall be of die essence w•id• res eci .n. S . 1 _'.ii >hill b• p• "duct o; : •:, c..,, - 1'. „ delivered within the period above specified. The Customer will permit AVFUEL immediate access to die Lwt.,nuh premises and records for purposes of investigating any claim non -conformity or discrepancy. 9. COMPLIANCE WITH LAWS: 9.1 Customer shall, at all times and in all respects, comply with all federal, state, county or municipal laws, ordinances, rules and regulations governing the purchase, storage, handling and sale of the Products and all industry standards pertaining thereto. Further, Customer agrees to use its best efforts to assist AVFUEL in complying with such laws, ordinances, rules and regulations which AVFUEL may be required to observe in the performance of its obligations under this Agreement. 9.2 It is acknowledged and agreed that one or more of the Avgas Products may contain tetraethyl lead or lead alkyl. Customer shall comply with all applicable roles and regulations governing the storage, handling, and sales of such substances. AVFUEL reserves the right to terminate that part of this Agreement governing such Products if Customer violates the provisions of this Section. In such event, the remaining provisions of this Agreement shall continue in full force and effect. 9.3 Customer shall properly instruct its employees with regard to applicable laws, ordinance, roles, regulations and standards and the procedures necessary to insure compliance therewith. 10. INDEPENDENT STATUS: The Customer shall at all times function as an independent contractor and not as a subcontractor, employee or other agent of AVFUEL. The Customer shall not have the authority to and shall not purport to make any commitments or representations on behalf of AVFUEL or otherwise to take any actions on behalf of AVFUEL. II. SUPPLEMENTARY AGREEMENTS: Customer desires to participate in the Credit Card Program(s), the Credit Program, the Brand Program and the Leasing Program(s) offered by AVFUEL to its customers as are listed in Paragraph C of the Summary. The terms and conditions which govern Customer's participation in said Program(s) are set forth in the Supplementary Agreement(s) which are attached hereto and made a part hereof by reference. Additional Supplementary Agreements may be added from time to time with the consent of both parties. Each Supplementary Agreement may be amended or canceled in accordance with its terms. In the event of a conflict between the tennis of this Agreement and the terms of a Supplementary Agreement, the terms of the Supplementary Agreement shall govern. A violation of a Supplementary Agreement shall be deemed a violation of this Agreement. INDEMNIFICATION: 12.1 Except as provided in Section 12.2, Customer agrees to defend, indemnify and save AVFUEL and its agents and employees harmless from and against any and all claims, demands, losses, liabilities, causes of actions, costs and expenses (including attorneys' fees) of whatsoever nature which arc asserted against or incurred by AVFUEL, or its employees or agents, based upon injury or death to any person (including, without limitation, any employee, agent or customer of the Customer) or any damage or destruction of any property (including, without limitation, any property belonging to the Customer) which directly or indirectly resulted from any act or omission of the Customer or any employees or other agents of the Customer, including, without limitation, any breach by die Customer of any of its obligations under this Agreement or any actions or inaction of the Customer in the storage, handling, distribution, sales or use of any of the Products purchased pursuant to this Agreement. Any amount payable pursuant to the Customer's obligation to indemnify shall be due immediately upon delivery of demand for payment to the Customer. Any amount not paid when due shall bear interest from its due date at the maximum rate permitted under the law of the state wherein Customer is located. The Customer shall be liable for any costs (including attorneys' fees) incurred in enforcing this obligation to indemnify. 12.2 Customer's obligation to indemnify under Section 12.1 shall not apply to any injury or death to any person or any damage or destruction of any property which is the direct result of the failure of the Product to conform to the limited warranty contained in Section 7 or is the direct result of the sole negligence of AVFUEL or its employees or agents. 12.3 Customer's obligation to indemnify in Section 12.1 shall survive the termination of this Agreement and shall remain in full force and effect until the lapse of all applicable statutes of limitation and all time periods within which an action for indemnity or contribution must be brought. 13. TERMINATION: 13.1 Either patty (the "terminating party") may terminate this Agreement at any time for cause on the part of the other party (the "defaulting party") by giving the defaulting party written notice of termination which shall state the grounds for termination, the date of termination and, at the sole option of the terminating party, any remedial measure and any grace period available to the defaulting party to remedy such cause(s) and avoid termination. For Customer's Initials Revised 11/96 Form FSI 'If y Page 3 of 5 purposes Agreement. '.. 0 RLs, /417-01-8u ses of this cause include but not be limited to, the following: Failure by the defaulting party to pay when due any amounts properly payable under this Agreement or any Supplementary Agreement; Failure by the defaulting party to comply with federal, state, or local laws or regulations in any manner relevant to this Agreement; Breach by the defaulting party of any provision of this Agreement or any Supplementary Agreement. My action or inaction by Customer, the result of which is to bring into question AVFUEL's reputation for quality products or services, or to subject AVFUEL to any liability not contemplated hereunder or to render it impossible to provide the products and services requested of AVFUEL. Any misrepresentation by Customer with respect to the Product. The failure by the Customer to purchase its entire requirements of the Products from AVFUEL (unless excused from such purchase pursuant to Section 6). Termination for any reason of the Guaranty of Payment set forth in Section 20. 13.2 The exercise of a party's right to terminate this Agreement as aforesaid shall not be deemed an election of remedies and shall be without prejudice to the terminating party's rights to any other remedy afforded to it by this Agreement or by law or equity. The waiver of any breach of any term or condition hereof shall not constitute a waiver of any subsequent breach of the same or any other term or condition. Any failure of AVFUEL to enforce rights or seek remedies arising out of any breach by Customer shall not prejudice or affect the rights or remedies of AVFUEL in the event of any subsequent breach by Customer. Election by AVFUEL of one remedy hereunder shall not be deemed to be to the exclusion of any other remedy. If this Agreement or any Supplementary Agreement is placed in the hands of an attorney for enforcement following any breach or claim of breach thereof, the prevailing party shall have the right to recover its costs of enforcement or of defense (as the case may be) including reasonable attorney's fees. Customer's Initials Revised 11196 Form FSI A8 Z Page 4 of 5 1049-01 01:35pm From-AVFUEL • T346631681 • T-954 P.02/04 F-318 Addendum to the AVIATION FUEL SUPPLY AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILLE, AR The following is incorporated and made part of the above named agreement with a reference date of September 28, 2001. 1. Section 2, Term: Replace the paragraph with "The term of this agreement shall be three (3) years, commencing on the Effective Date stated in the Summary, subject to approval the second (21) and third (31d) years by the City Council, contingent on proper funds appropriation and consent of contractor". 2. Section 18 Governing Law: In the first sentence, "Michigan" is replaced with "Arkansas". In the second sentence, "Michigan or... .either place" are deleted and replaced with "The State of Arkansas". AVFUEL CORPORATION By: Sie aturt Its: Print name.' Date: THE CITY of FAYETTEVILLE, AR By: signature ha: Print nine / Title Date: AVFUIEL CORPORATION A VIA TION FUEL SUPPL .14 GREEMEIVT SUMMARY OF TERMS AND CONDITIONS A. B. GENERAL INFORMATION: Customer (full legal name): City of Fayetteville, The Customer is a: Corporation (type) _ State _; Partnership _ State _; Sole Owner/Proprietorship Federal Employer Identification Number: Billing Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 Shipping Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 PRODUCTS: Estimated Annual Ouantitv Avgas 80 Avgas 100 Jet A Jet A w/additive JP8 Other Estimated Annual Quantity APPLICABLE SUPPLEMENTARY AGREEMENTS ATTACHED AND/OR INCORPORATED HEREIN: Brand Program: Credit Card Program: Refueler/Equipment Lease: Credit Agreement: D. LIABILITY INSURANCE CARRIER: (certificates naming A VFUEL as an additional insured must be attached): Other: The terms and conditions governing the sale of aviation fuel products ("Products') and other services are set forth above and on the following pages, which are made a part of this Agreement. The reference date of this Agreement is September 28, 2001. The effective date is such date or CUSTOM By: Signature Its: Coo4C.t '/4114 -co V Print Noe / Title Fax Number: AVFUEL CORPORATION By: Its: Fax Number: The undersigned hereby guarantee(s) payment and performance of this Agreement by Customer as provided in Section 20 hereof: By: Customer's Initials Revised 11/96 Form FS I Social Security: Page Iof5 1. PURCHASE AND SALE: Subject to the terms and conditions herein, throughout the entire term of this Agreement. AVFUEL agrees to sell and deliver, and_Customer agrees to purchase and pay for, Customer's entire requirements of the Products listed in Paragraph B of the Summary for use or sale by the Customer at the Delivery Address(es) listed in Paragraph A of the Summary. The Annual Quantities listed in Paragraph B of the Summary are Customer's best estimate of its requirements of the Products for the year commencing with the Effective Date stated in the Summary. 2. TERM: The term of this Agreement shall be five (5) years, commencing on the Effective Date stated in the Summary. The term shall be automatically renewed for successive three (3) year periods absent notice to the other party of intent to terminate at the end of the then current term. Such notice shall be delivered at least ninety (90) days but not more than one hundred -twenty (120) days prior to the end of the then current term. 3. PRICE AND PAYMENT: 3.1 The price per gallon for Products delivered to Customer shall be AVFUEL's established price per gallon, in effect at the time AVFUEL loads the Product into its delivery trucks. Prices shall be F.O.B. the Delivery Address(es) listed in Paragraph A of the Summary and shall be exclusive of all taxes, fees, surcharges and other charges. Prices are subject to change without notice to Customer. 3.2 Unless otherwise agreed in writing or otherwise required by the state law where the Product is delivered, the standard unit of measurement of quantities of Products purchased and delivered shall be the Net Gallon. The term "Net Gallon" shall mean the volumetric measurement, in U.S. gallons of a Product as actually loaded and measured at the point of shipment, adjusted to the number of U.S. gallons that would have been loaded at a temperature of sixty degrees Fahrenheit (60F). The conversion ratio shall be from the current ASTM-IP Petroleum Measurement Tables. 3.3 Unless otherwise agreed in writing, Customer agrees to pay for all Products purchased hereunder by prior wire transfer. If AVFUEL extends credit to Customer, payment shall be upon terms and conditions specified by AVFUEL at the time such credit is extended or pursuant to the Credit Agreement 4. TAxEs AND OTHER CHARGES: The Customer shall pay all taxes, assessments, fees and similar charges (the "Taxes") which are imposed by any federal, state or local governmental agency or by any airport authority (the "Taxing Authorities") based upon the delivery, sale, importation, inspection, storage or use of the Products purchased by the Customer, excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the seller collect the Taxes from the purchaser at the time of sale, the AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entities to an exemption from any Taxes, which the Taxing Authority requires to be collected by the seller, then, in order to permit AVFUEL not to collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates relating to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Accordingly, if, subsequent to the issuance of any invoice, the Taxing Authority or AVFUEL advises the Customer of additional Taxes payable with respect to the Products covered by that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customer's indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxs which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Products or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is under applicable law to collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 5. DEIJVERY: 5.1 Deliveries shall be made to the Delivery Address(es) listed in Paragraph A of the Summary. Unless otherwise agreed in writing, the minimum delivery will be a full standard transport tanker load. AVFUEL reserves the right to impose a surcharge for deliveries of less than a full tanker load. The carrier shall be provided access to Customer's storage facilities at all reasonable times for the purpose of unloading. 5.2 Delivery shall be into Customer's tanks that have been inspected and approved by the appropriate regulatory agencies. Customer shall be responsible for all unloading operations including the placement of hoses into the proper storage tanks. Customer shall specifically designate and gage the available capacity of that tank into which the Product shall be unloaded, and shall bear all responsibility of spillage or contamination of the Product after it leaves the end of any hose provided by the carrier. Access to tanks shall be such that the carrier can safely and conveniently reach the Customers designated storage facility with the hoses available, and the carrier may refuse to complete any delivery which cannot, in the carrier's opinion, be made safely and conveniently. 6. ExcusED NON-PERFORMANCE: The parties recognize that from time to time a specific Product may become unavailable for sale. For purposes of this Agreement, the term "unavailable" shall mean that AVFUEL, for any reason whatsoever, including but not limited to government action, weather, reduced or allocated fuel supplies or the like, is not able to deliver a specific Product within three (3) days of the specific time requested by Customer. In that event, and only to the extent of such unavailability, the parties hereto shall be relieved of their obligations under Section 2.0 hereof. 7. LIMITED WARRAN Y: AVFUEL WARRANTS THAT ALL PRODUCTS DELIVERED PURSUANT TO THIS AGREEMENT WILL CONFORM TO THE FOLLOWING SPECIFICATIONS: 7.1 IF CUSTOMER IS PARTICIPATING IN A BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE SPECIFICATIONS FOR Customer's Initials Revised 11/96 Form FSI Page 2 of 5 PRODUCTS IN THAT BRAND PROG • 7.2 IF THE CUSTOMER IS NOT PARTICIPATING IN ANY BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE CURRENT MINIMUM A.S.T.M. PRODUCT SPECIFICATIONS APPLICABLE TO THOSE PRODUCTS. THIS WARRANTY OF CONFORMITY TO SPECIFICATIONS IS THE ONLY WARRANTY GIVEN BY AVFUEL REGARDING THE PRODUCTS. AVFUEL DISCLAIMS ANY OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN THE EVENT OF ANY BREACH BY AVFUEL OF THIS LIMITED WARRANTY, AVFUEL, UPON RECEIPT OF A NOTICE OF CLAIM CONFORMING TO THE REQUIREMENTS OF SECTION 8, AVFUEL, AT ITS ELECTION, WILL REFUND TO THE CUSTOMER THE PRICE PAID FOR ANY NON -CONFORMING PRODUCTS OR WILL PROMPTLY REPLACE THE NON -CONFORMING PRODUCTS WITH PRODUCTS CONFORMING TO THE APPLICABLE SPECIFICATIONS. THIS OBLIGATION OF REFUND OR REPLACEMENT SHALL BE THE SOLE OBLIGATION OF AVFUEL IN THE EVENT OF ITS BREACH OF ITS WARRANTY. AVFUEL DISCLAIMS ANY OTHER OBLIGATIONS, INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION FOR ANY INCIDENTAL., CONSEQUENTIAL OR OTHER DAMAGES RESULTING FROM ITS BREACH OF THIS LIMITED WARRANTY. 8. Cwms: Any claim by the Customer that any Products do not conform to the specifications described in Section 7 shall be effective only if made by written notice delivered to AVFUEL within twenty-four (24) hours after the Product is delivered to the Customer. Any claim by the Customer of any discrepancy in the quantity of the Product delivered shall be effective only if made by written notice delivered to AVFUEL within thirty (30) days after the Product is delivered to the Customer. Given the nature of the Products, time shall be of the essence with respect to such claims and no claim shall be permitted or effective unless delivered within the period above specified. The Customer will permit AVFUEL immediate access to the Customer's premises and records for purposes of investigating any claim non -conformity or discrepancy. 9. COMPLIANCE WITH LAWS: 9.1 Customer shall, at all times and in all respects, comply with all federal, state, county or municipal laws, ordinances, rules and regulations governing the purchase, storage, handling and sale of the Products and all industry standards pertaining thereto. Further, Customer agrees to use its best efforts to assist AVFUEL in complying with such laws, ordinances, rules and regulations which AVFUEL may be required to observe in the performance of its obligations under this Agreement. 9.2 It is acknowledged and agreed that one or more of the Avgas Products may contain tetraethyl lead or lead alkyl. Customer shall comply with all applicable rules and regulations governing the storage, handling, and sales of such substances. AVFUEL reserves the right to terminate that part of this Agreement governing such Products if Customer violates the provisions of this Section. In such event, the remaining provisions of this Agreement shall continue in full force and effect 9.3 Customer shall properly instruct its employees with regard to applicable laws, ordinance, rules, regulations and standards and the procedures necessary to insure compliance therewith. 10. . INDEPENDENT STATUS: The Customer shall at all times function as an independent contractor and not as a subcontractor, employee or other agent of AVFUEL. The Customer shall not have the authority to and shall not purport to make any commitments or representations on behalf of AVFUEL or otherwise to take any actions on behalf of AVFUEL. • 11. SUPPLEMENTARv AGREEMENTS: Customer desires to participate in the Credit Card Program(s), the Credit Program, the Brand Program and the Leasing Program(s) offered by AVFUEL to its customers as are listed in Paragraph C of the Summary. The terms and conditions which govern Customer's participation in said Program(s) are set forth in the Supplementary Agreement(s) which are attached hereto and made a part hereof by reference. Additional Supplementary Agreements may be added from time to time with the consent of both parties. Each Supplementary Agreement may be amended or canceled in accordance with its terms. In the event of a conflict between the terms of this Agreement and the terms of a Supplementary Agreement, the terms of the Supplementary Agreement shall govern. A violation of a Supplementary Agreement shall be deemed a violation of this Agreement INDEMNIFICATION: 12.1 Except as provided in Section 12.2, Customer agrees to defend, indemnify and save AVFUEL and its agents and employees harmless from and against any and all claims, demands, losses, liabilities, causes of actions, costs and expenses (including attorneys' fees) of whatsoever nature which are asserted against or incurred by AVFUEL, or its employees or agents, based upon injury or death to any person (including, without limitation, any employee, agent or customer of the Customer) or any damage or destruction of any property (including, without limitation, any property belonging to the Customer) which directly or indirectly resulted from any act or omission of the Customer or any employees or other agents of the Customer, including, without limitation, any breach by the Customer of any of its obligations under this Agreement or any actions or inaction of the Customer in the storage, handling, distribution, sales or use of any of the Products purchased pursuant to this Agreement Any amount payable pursuant to the Customer's obligation to indemnify shall be due immediately upon delivery of demand for payment to the Customer. Any amount not paid when due shall bear interest from its due date at the maximum rate permitted under the law of the state wherein Customer is located. The Customer shall be liable for any costs (including attorneys' fees) incurred in enforcing this obligation to indemnify. 12.2 Customer's obligation to indemnify under Section 12.1 shall not apply to any injury or death to any person or any damage or destruction of any property which is the direct result of the failure of the Product to conform to the limited warranty contained in Section 7 or is the direct result of the sole negligence of AVFUEL or its employees or agents. 12.3 Customer's obligation to indemnify in Section 12.1 shall survive the termination of this Agreement and shall remain in full force and effect until the lapse of all applicable statutes of limitation and all time periods within which an action for indemnity or contribution must be brought. 13. TERMINATION: 13.1 Either party (the "terminating party") may terminate this Agreement at any time for cause on the part of the other party (the "defaulting party") by giving the defaulting party written notice of termination which shall state the grounds for termination, the date of termination and, at the sole option of the terminating party, any remedial measure and any grace period available to the defaulting party to remedy such cause(s) and avoid termination. For Customer's Initials Revised 11/96 Form PSI Page 3 of S purposes of this Agreement, "cause" sha . clude, but not be limited to, the following: Failure by the defaulting party to pay when due any amounts properly payable under this Agreement or any Supplementary Agreement; Failure by the defaulting party to comply with federal, state, or local laws or regulations in any manner relevant to this Agreement; Breach by the defaulting party of any provision of this Agreement or any Supplementary Agreement. Any action or inaction by Customer, the result of which is to bring into question AVFUEL's reputation for quality products or services, or to subject AVFUEL to any liability not contemplated hereunder or to render it impossible to provide the products and services requested of AVFUEL. Any misrepresentation by Customer with respect to the Product. The failure by the Customer to purchase its entire requirements of the Products from AVFUEL (unless excusedfrom such purchase pursuant to Section 6). Termination for any reason of the Guaranty of Payment set forth in Section 20. 13.2 The exercise of a party's right to terminate this Agreement as aforesaid shall not be deemed an election of remedies and shall be without prejudice to the terminating party's rights to any other remedy afforded to it by this Agreement or by law or equity. The waiver of any breach of any term or condition hereof shall not constitute a waiver of any subsequent breach of the same or any other tern or condition. Any failure of AVFUEL to enforce rights or seek remedies arising out of any breach by Customer shall not prejudice or affect the rights or remedies of AVFUEL in the event of any subsequent breach by Customer. Election by AVFUEL of one remedy hereunder shall not be deemed to be to the exclusion of any other remedy. If this Agreement or any Supplementary Agreement is placed in the hands of an attorney for enforcement following any breach or claim of breach thereof, the prevailing party shall have the right to recover its costs of enforcement or of defense (as the case may be) including reasonable attorney's fees. Customer's Initials Revised 11/96 Form FS I Page 4 of 5 AVFUEL CORPORATION A VIA F/ON FUEL S UPEL Y A Gds EMC NT SUMMARY OF TERMS AND CONDITIONS A. GENERAL INFORMATION: Customer (full legal name): City of Fayetteville, The Customer is a: Corporation (type) _ State _; Partnership _ State _; Sole Owner/Proprietorship Federal Employer Identification Number: Billing Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 Shipping Address: 4500 South School Ave., Suite 7, Fayetteville, AR 72701 PRODUCTS: Estimated Annual quantity Avgas 80 Avgas 100 Jet A Jet A w/additive JP8 Other Estimated Annual Ouantity APPLICABLE SUPPLEMENTARY AGREEMENTS ATTACHED AND/OR INCORPORATED HEREIN: Brand Program: Credit Card Program: Refueler/Equipment Lease: Credit Agreement: Other: D. LIABILITY INSURANCE CARRIER: (certificates naming A VFUEL as an additional insured must be attached): The terms and conditions governing the sale of aviation fuel products ("Products') and other services are set forth above and on the following pages, which are made a part of this Agreement. The reference date of this Agreement is September 28, 2001. The effective date is such date or CUSTOMER: By: Signature Its: Print Name / Title Fax Number: AVFUEL CORPORATION By: Its: Fax Number: The undersigned hereby guarantee(s) payment and performance of this Agreement by Customer as provided in Section 20 hereof: By: Customer's Initials Revised 11/96 Form FSI Social Security: Page I of 5 1. PURCHASE AND SALE: Subject to the terms and conditions herein, throughout the entire term of this Agreement. AVFUEL agrees to sell and deliver, and Customer agrees to purchase and pay for, Customer's entire requirements of the Products listed in Paragraph B of the Summary for use or sale by the Customer at the Delivery Address(es) listed in Paragraph A of the Summary. The Annual Quantities listed in Paragraph B of the Summary are Customer's best estimate of its requirements of the Products for the year commencing with the Effective Date stated in the Summary. I 2. ('TERM: The teen of this Agreement shall befvv S"years, commencing on the Effective Date stated in the Summary. The term shall be automatically renewed for successive (lrrw{ 3}year periods absent notice to the other party of intent to terminate at the end of the then current term. Such notice shall be delivered at least ninety (90) days but nqt more than one hundred -twenty (120) days prior to the end of the then current tern. 3. PRICE AND PAYMENT: ,lW aQQ'� h 6Vwx 8Q�A•`M.. i5 CS' -O6 %S�rIQ.a 3.1 The price per gallon for Products delivered to Customer shall be AVFUEL's established price per gallon, in effect at the time AVFUEL loads the Product into its delivery trucks. Prices shall be F.O.B. the Delivery Address(es) listed in Paragraph A of the Summary and shall be exclusive of all taxes, fees, surcharges and other charges. Prices are subject to change without notice to Customer. 3.2 Unless otherwise agreed in writing or otherwise required by the state law where the Product is delivered, the standard unit of measurement of quantities of Products purchased and delivered shall be the Net Gallon. The term "Net Gallon" shall mean the volumetric measurement, in U.S. gallons of a Product as actually loaded and measured at the point of shipment, adjusted to the number of U.S. gallons that would have been loaded at a temperature of sixty degrees Fahrenheit (60F). The conversion ratio shall be from the current ASTM-IP Petroleum Measurement Tables. 3.3 Unless otherwise agreed in writing, Customer agrees to pay for all Products purchased hereunder by prior wire transfer. If AVFUEL extends credit to Customer, payment shall be upon terms and conditions specified by AVFUEL at the time such credit is extended or pursuant to the Credit Agreement. 4. TAxEs AND OTHER CHARGEs: The Customer shall pay all taxes, assessments, fees and similar charges (the 'Taxes') which are imposed by any federal, state or local governmental agency or by any airport authority (the Taxing Authorities") based upon the delivery, sale, importation, inspection, storage or use of the Products purchased by the Customer, excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the seller collect the Taxes from the purchaser at the time of sale, the AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitles to an exemption from any Taxes, which the Taxing Authority requires to be collected by the seller, then, in order to permit AVFUEL not to collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates relating to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Accordingly, i[subsequent to the issuance of any invoice, the Taxing Authority or AVFUEL advises the Customer of additional Taxes payable with respect to the Products covered by that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customers indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxs which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Products or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is under applicable law to collect such Taxes from the Customer hut, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 5. DELIVERY: 5.1 Deliveries shall be made to the Delivery Address(es) listed in Paragraph A of the Summary. Unless otherwise agreed in writing, the minimum delivery will be a full standard transport tanker load. AVFUEL reserves the right to impose a surcharge for deliveries of less than a full tanker load. The carrier shall be provided access to Customer's storage facilities at all reasonable times for the purpose of unloading. 5.2 Delivery shall be into Customer's tanks that have been inspected and approved by the appropriate regulatory agencies. Customer shall be responsible for all unloading operations including the placement of hoses into the proper storage tanks. Customer shall specifically designate and gage the available capacity of that tank into which the Product shall be unloaded, and shall bear all responsibility of spillage or contamination of the Product after it leaves the end of any hose provided by the carrier. Access to tanks shall be such that the carrier can safely and conveniently reach the Customer's designated storage facility with the hoses available, and the carrier may refuse to complete any delivery which cannot, in the carrier's opinion, be made safely and conveniently. 6. EXCUSED NON-PERFORMANCE: The parties recognize that from time to time a specific Product may become unavailable for sale. For purposes of this Agreement, the term "unavailable" shall mean that AVFUEL, for any reason whatsoever, including but not limited to government action, weather, reduced or allocated fuel supplies or the like, is not able to deliver a specific Product within three (3) days of the specific time requested by Customer. In that event, and only to the extent of such unavailability, the parties hereto shall be relieved of their obligations under Section 2.0 hereof. 7. LIMBED WARRANTY: AVFUEL WARRANTS THAT ALL PRODUCTS DELIVERED PURSUANT TO THIS AGREEMENT WILL CONFORM TO 111E FOLLOWING SPECIFICATIONS: 7.1 IF CUSTOMER IS PARTICIPATING IN A BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE SPECIFICATIONS FOR Customer's Initials Revised 11/96 Form FSI Page 2of5 PRODUCTS IN THAT BRAND PROG • 7.2 IF THE CUSTOMER IS NOT PARTICIPATING IN ANY BRAND PROGRAM, THEN THE PRODUCTS WILL CONFORM TO THE CURRENT MINIMUM A.S.T.M. PRODUCT SPECIFICATIONS APPLICABLE TO THOSE PRODUCTS. I THIS WARRANTY OF CONFORMITY TO SPECIFICATIONS IS THE ONLY WARRANTY GIVEN BY AVFUEL REGARDING THE PRODUCTS. AVFUEL DISCLAIMS ANY OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN THE EVENT OF ANY BREACH BY AVFUEL OF THIS LIMITED WARRANTY, AVFUEL, UPON RECEIPT OF A NOTICE OF CLAIM CONFORMING TO THE REQUIREMENTS OF SECTION 8, AVFUEL, AT ITS ELECTION, WILL REFUND TO THE CUSTOMER THE PRICE PAID FOR ANY NON -CONFORMING PRODUCTS OR WILL PROMPTLY REPLACE THE NON -CONFORMING PRODUCTS WITH PRODUCTS CONFORMING TO THE APPLICABLE SPECIFICATIONS. THIS OBLIGATION OF REFUND OR REPLACEMENT SHALL BE THE SOLE OBLIGATION OF AVFUEL IN THE EVENT OF ITS BREACH OF ITS WARRANTY. AVFUEL DISCLAIMS ANY OTHER OBLIGATIONS, INCLUDING, WITHOUT LIMITATION, ANY OBLIGATION FOR ANY INCIDENTAL, CONSEQUENTIAL OR OTHER DAMAGES RESULTING FROM ITS BREACH OF THIS LIMITED WARRANTY. 8. CLAIMS: Any claim by the Customer that any Products do not conform to the specifications described in Section 7 shall be effective only if made by written notice delivered to AVFUEL within twenty-four (24) hours after the Product is delivered to the Customer. Any claim by the Customer of any discrepancy in the quantity of the Product delivered shall be effective only if made by written notice delivered to AVFUEL within thirty (30) days after the Product is delivered to the Customer. Given the nature of the Products, time shall be of the essence with respect to such claims and no claim shall be permitted or effective unless delivered within the period above specified. The Customer will permit AVFUEL immediate access to the Customers premises and records for purposes of investigating any claim non -conformity or discrepancy. 9. COMPLIANCE WITH LAWS 9.1 Customer shall, at all times and in all respects, comply with all federal, state, county or municipal laws, ordinances, rules and regulations governing the purchase, storage, handling and sale of the Products and all industry standards pertaining thereto. Further, Customer agrees to use its best efforts to assist AVFUEL in complying with such laws, ordinances, rules and regulations which AVFUEL may be required to observe in the performance of its obligations under this Agreement. 9.2 It is acknowledged and agreed that one or more of the Avgas Products may contain tetraethyl lead or lead alkyl. Customer shall comply with all applicable rules and regulations governing the storage, handling, and sales of such substances. AVFUEL reserves the right to terminate that part of this Agreement governing such Products if Customer violates the provisions of this Section. In such event, the remaining provisions of this Agreement shall continue in full force and effect. 9.3 Customer shall properly instruct its employees with regard to applicable laws, ordinance, rules, regulations and standards and the procedures necessary to insure compliance therewith. 10. INDEPENDENT STATUS: The Customer shall at all times function as an independent contractor and not as a subcontractor, employee or other agent of AVFUEL. The Customer shall not have the authority to and shall not purport to make any commitments or representations on behalf of AVFUEL or otherwise to take any actions on behalf of AVFUEL. II. SUPPLEMENTARY AGREEMENTS: Customer desires to participate in the Credit Card Program(s), the Credit Program, the Brand Program and the Leasing Program(s) offered by AVFUEL to its customers as are listed in Paragraph C of the Summary. The terms and conditions which govern Customer's participation in said Program(s) are set forth in the Supplementary Agreement(s) which are attached hereto and made a part hereof by reference. Additional Supplementary Agreements may be added from time to time with the consent of both parties. Each Supplementary Agreement may be amended or canceled in accordance with its terms. In the event of a conflict between the teens of this Agreement and the terms of a Supplementary Agreement, the terms of the Supplementary Agreement shall govern. A violation of a Supplementary Agreement shall be deemed a violation of this Agreement. - INDEMNIFICATION: 12.1 Except as provided in Section 12.2, Customer agrees to defend, indemnify and save AVFUEL and its agents and employees harmless from and against any and all claims, demands, losses, liabilities, causes of actions, costs and expenses (including attorneysfees) of whatsoever nature which are asserted against or incurred by AVFUEL, or its employees or agents, based upon injury or death to any person (including, without limitation, any employee, agent or customer of the Customer) or any damage or destruction of any property (including, without limitation, any property belonging to the Customer) which directly or indirectly resulted from any act or. omission of the Customer or any employees or other agents of the Customer, including, without limitation, any breach by the Customer of any of its obligations under this Agreement or any actions or inaction of the Customer in the storage, handling, distribution, sales or use of any of the Products purchased pursuant to this Agreement. Any amount payable pursuant to the Customer's obligation to indemnify shall be due immediately upon delivery of demand for payment to the Customer. Any amount not paid when due shall bear interest from its due date at the maximum rate permitted under the law of the state wherein Customer is located. The Customer shall be liable for any costs (including attorneys' fees) incurred in enforcing this obligation to indemnify. 12.2 Customer's obligation to indemnify under Section 12.1 shall not apply to any injury or death to any person or any damage or destruction of any property which is the direct result of the failure of the Product to conform to the limited warranty contained in Section 7 or is the direct result of the sole negligence of AVFUEL or its employees or agents. 12.3 Customers obligation to indemnify in Section 12.1 shall survive the termination of this Agreement and shall remain in full force and effect until the lapse of all applicable statutes of limitation and all time periods within which an action for indemnity or contribution must be brought. 13. TERMINATION: 13.1 Either party (the "terminating party") may terminate this Agreement at any time for cause on the part of the other party (the "defaulting party") by giving the defaulting party written notice of termination which shall state the grounds for termination, the date of termination and, at the sole option of the terminating party, any remedial measure and any grace period available to the defaulting party to remedy such cause(s) and avoid termination. For Customer's Initials Revised 11/96 Form FSI Page 3 of 5 purposes of this Agreement, "cause" shaliTnclude, but not be limited to, the following: • Failure by the defaulting party to pay when due any amounts properly payable under this Agreement or any Supplementary Agreement; Failure by the defaulting party to comply with federal, state, or local laws or regulations in any manner relevant to this Agreement; Breach by the defaulting party of any provision of this Agreement or any Supplementary Agreement. Any action or inaction by Customer, the result of which is to bring into question AVFUEL's reputation for quality products or services, or to subject AVFUEL to any liability not contemplated hereunder or to render it impossible to provide the products and services requested of AVFUEL. Any misrepresentation by Customer with respect to the Product. The failure by the Customer to purchase its entire requirements of the Products from AVFUEL (unless excused from such purchase pursuant to Section 6). Termination for any reason of the Guaranty of Payment set forth in Section 20. 13.2 The exercise of a party's right to terminate this Agreement as aforesaid shall not be deemed an election of remedies and shall be without prejudice to the terminating party's rights to any other remedy afforded to it by this Agreement or by law or equity. The waiver of any breach of any term or condition hereof shall not constitute a waiver of any subsequent breach of the same or any other term or condition. Any failure of AVFUEL to enforce rights or seek remedies arising out of any breach by Customer shall not prejudice or affect the rights or remedies of AVFUEL in the event of any subsequent breach by Customer. Election by AVFUEL of one remedy hereunder shall not be deemed to be to the exclusion of any other remedy. If this Agreement or any Supplementary Agreement is placed in the hands of an attorney for enforcement following any breach or claim of breach thereof, the prevailing party shall have the right to recover its costs of enforcement or of defense (as the case may be) including reasonable attorney's fees. Customer's Initials Revised 11/96 Form FSI Page 4 of 5 S • STANDARD PROVISIONS OF CONTRACTS 14. INSURANCE: 14.1 Prior to the Effective Date stated in the Summary, Customer shall secure at its cost, the following insurance and furnish AVFUEL a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $ 1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer. Insurance policies shall be issued by insurance companies acceptable to AVFUEL, shall name AVFUEL as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) dayswritten notice to AVFUEL prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by AVFUEL. 14.2 AVFUEL maintains a policy of product liability insurance pursuant under which its qualified customers may be named as additional insured. For so long as that coverage remains available at reasonable cost, upon the written request of the Customer and to the extent that Customer qualifies for such coverage, Customer may be added as a named insured under that policy upon payment by the Customer of any required fee for such coverage.. 15. ASSIGNMENT: The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 16. NOTICES: All notices permitted or required under this Agreement shall be in writing. Notices by fax shall be deemed "delivered" on the date of confirmed transmission to the fax number designated in the Summary. Notices by mail shall be deemed delivered on the date deposited with the United States Postal Service, postage prepaid, addressed to the party at the address specified in the Summary; provided, however, that any notice of termination or of non -renewal of this Agreement and any notices of claims pursuant to Section 8.2 shall be posted as certified mail, return receipt requested. 17. EXEC1rrION, BINDING EFFECT: THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Commencement of performance hereunder prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any sales made before such execution be deemed to have been made under the terms and provisions hereof. When duly executed,this Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. A.4V.&o,S c -S 18. GOVERNING LAw: This Agreement and all rights and obligations under it shall be governed by the laws of the State of4Miehi5ulf. All orders hereunder shall be accepted and approved at AVFUEL's place of business in Ann Arbor, Michigan and all claims arising hereunder shall be brought either in 7.4 'b' the State'place. AV Rv�i al 19. SEVERABILrrY: In the event that any coon of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. 20. GUARANTY OF PAYMENT: To induce AVFUEL's to provide the Products to Customer and to provide Equipment and other services (if any) described in any Supplementary Agreement, present or future, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounts owing pursuant to this Agreement or any Supplementary Agreement. The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as they may be incurred, notice of default by Customer and of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in full force and effect until the guarantor(s) or the personal representatives of the guarantor(s) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to make such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agrees to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attorney's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 21. ENTIRE AGREEMENT/NO INCONSISTENT TERMS: This five (5) page Agreement, together with each Supplementary Agreement referenced in section II, states the entire agreement between Avfuel and the Customer with respect to the subject matter hereof and there are no other terms or conditions, oral or written, express or implied, relating to or otherwise affecting such subject matter. No term or condition of this Agreement shall be changed, supplemented, cancelled or waived unless in writing and signed by both Avfuel and the Customer. Without limiting the foregoing, any terms or conditions in any Purchase Order, Acknowledgement or other document issued by he Customer which are inconsistent with any of the terms or conditions of this Agreement or which impose any obligations upon Avfuel which are not imposed by the terms of this Agreement shall not be binding upon Avfuel and shall be null, void and of no effect. If Avfuel and the Customer have prior to the Effective Date been parties to any other agreement relating to the sale of Products to the Customer (a "Prior Agreement"), such Prior Agreement shall be superseded as of the Effective Date and all rights and obligation between Avfuel and the Customer with respect to the supply of Products from and after the Effective date shall be governed by the terms of this Agreement. (The terms and conditions of such Prior Agreement shall, however, remain in full force and effect with respect to tights and obligations relating to the supply of Products prior to the Effective Date and nothing contained in this Agreement shall be construed as terminating or otherwise affecting any such rights or obligations.) Customer's Initials Revised 11/96 Form FSI Page 5 of 5 0 Rrs.147orB STANDARD PROVISIONS OF CONTRACTS 14. INSURANCE: 14.1 Prior to the Effective Date stated in the Summary, Customer shall secure at its cost, the following insurance and furnish AVFUEL a Certificate of Insurance, evidencing: (I) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than 51,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer. Insurance policies shall be issued by insurance companies acceptable to AVFUEL, shall name AVFUEL as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) dayswritten notice to AVFUEL prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by AVFUEL. 14.2 AVFUEL maintains a policy of product liability insurance pursuant under which its qualified customers may be named as additional insured. For so long as that coverage remains available at reasonable cost, upon the written request of Customer and to the extent that Customer qualifies for such coverage, Customer may be added as a named insured under that policy upon payment by the Customer of any required fee for such coverage.. 15. AssIGNMENT: The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 16. NOTICES: All notices permitted or required under this Agreement shall be in writing. Notices by fax shall be deemed "delivered" on the date of confirmed transmission to the fax number designated in the Summary. Notices by mail shall be deemed delivered on the date deposited with the United States Postal Service, postage prepaid, addressed to the party at the address specified in the Summary; provided, however, that any notice of termination or of non -renewal of this Agreement and any notices of claims pursuant to Section 8.2 shall be posted as certified mail, return receipt requested. 17. EXECUTION, BINDING EFFEcr: THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Commencement of performance hereunder prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any sales made before such execution be deemed to have been made under the terms and provisions hereof. When duly executed, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. 18. GOVERNING LAw: This Agreement and all rights and obligations under it shall be governed by the laws of the State of Michigan. All orders hereunder shall be accepted and approved at AVFUEL's place of business in Ann Arbor, Michigan and all claims arising hereunder shall be brought either in Michigan or in the State in which Customer is located, and jurisdiction shall lie in either place. 19. SEVERABILITV: In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. 20. GuARANn• OF PAYMENT: To induce AVFUEL's to provide the Products to Customer and to provide Equipment and other services (if any) described in any Supplementary Agreement, present or future, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounts owing pursuant to this Agreement or any Supplementary Agreement. The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as they may be incurred, notice of default by Customer and of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in full force and effect until the guarantor(s) or the personal representatives of the guarantor(s) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to make such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agrees to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attorney's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 21. ENTIRE AGREEMENT/NO INCONSIsTENTTERMs: This five (5) page Agreement, together with each Supplementary Agreement referenced in section II, states the entire agreement between Avfuel and the Customer with respect to the subject matter hereof and there are no other terms or conditions, oral or written, express or implied, relating to or otherwise affecting such subject matter. No term or condition of this Agreement shall be changed, supplemented, cancelled or waived unless in writing and signed by both Avfuel and the Customer. Without limiting the foregoing, any terms or conditions in any Purchase Order, Acknowledgement or other document issued by he Customer which are inconsistent with any of the terms or conditions of this Agreement or which impose any obligations upon Avfuel which are not imposed by the terms of this Agreement shall not be binding upon Avfuel and shall be null, void and of no effect. If Avfuel and the Customer have prior to the Effective Date been parties to any other agreement relating to the sale of Products to the Customer (a "Prior Agreement"), such Prior Agreement shall be superseded as of the Effective Date and all rights and obligation between Avfuel and the Customer with respect to the supply of Products from and after the Effective date shall be governed by the terms of this Agreement. (The terms and conditions of such Prior Agreement shall, however, remain in full force and effect with respect to tights and obligations relating to the supply of Products prior to the Effective Date and nothing contained in this Agreement shall be construed as terminating or otherwise affecting any such rights or obligations.) Customer's Initials Revised 11/96 FormFSI� Page 5 of 5 1 1 '' a a a a i; • 14. INSURANCE: 14.1 Prior to the Effective Date stated in the Summary, Customer shall secure at its cost, the following insurance and furnish AVFUEL a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer. Insurance policies shall be issued by insurance companies acceptable to AVFUEL, shall name AVFUEL as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) dayswritten notice to AVFUEL prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by AVFUEL. 14.2 AVFUEL maintains a policy of product liability insurance pursuant under which its qualified customers may be named as additional insured. For so long as that coverage remains available at reasonable cost, upon the written request of the Customer and to the extent that Customer qualifies for such coverage, Customer may be added as a named insured under that policy upon payment by the Customer of any required fee for such coverage.. 15. ASSIGNMENT: The Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of AVFUEL. If the Customer is a business entity (as distinguished from an individual functioning as a proprietor), any transfer of any controlling interest in such entity shall be deemed an assignment requiring the consent of AVFUEL. 16. No7ICEs: All notices permitted or required under this Agreement shall be in writing. Notices by fax shall be deemed "delivered" on the date of confirmed transmission to the fax number designated in the Summary. Notices by mail shall be deemed delivered on the date deposited with the United States Postal Service, postage prepaid, addressed to the party at the address specified in the Summary; provided, however, that any notice of termination or of non -renewal of this Agreement and any notices of claims pursuant to Section 8.2 shall be posted as certified mail, return receipt requested. 17. EXECUTION, BINDING EFTECr: THIS AGREEMENT SHALL BECOME BINDING UPON AVFUEL ONLY AFTER IT HAS BEEN EXECUTED BY A DULY AUTHORIZED OFFICER OF AVFUEL IN ANN ARBOR, MICHIGAN. Commencement of performance hereunder prior to signing by AVFUEL as herein stipulated shall in no case be construed as a waiver by AVFUEL of this requirement, but any sales made before such execution be deemed to have been made under the terms and provisions hereof. When duly executed, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their permitted successors and assigns. The person executing this Agreement on behalf of Customer warrants that he/she has actual authority to do so. 18. GovERNING LAw: This Agreement and all rights and obligations under it shall be governed by the laws of the State of Michigan. All orders hereunder shall be accepted and approved at AVFUEL's place of business in Ann Arbor, Michigan and all claims arising hereunder shall be brought either in Michigan or in the State in which Customer is located, and jurisdiction shall lie in either place. 19. SEYERAEl n': In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. 20. GUARANry OF PAYMENT: To induce AVFUEL's to provide the Products to Customer and to provide Equipment and other services (if any) described in any Supplementary Agreement, present or future, the person(s) signing as guarantor(s) on the Summary Page, jointly and severally, guaranty the payment, when due, to AVFUEL of all amounts owing pursuant to this Agreement or any Supplementary Agreement The guarantor(s) waive(s) notice of acceptance of this Guaranty, notice of obligations or indebtedness as they may be incurred, notice of default by Customer and of any extensions in time of payment, and all other notices to which the guarantor(s) might otherwise be entitled by law. The guarantor(s) further waive(s) notice of presentment or demand and agree(s) to pay all amounts due and owing by Customer upon AVFUEL's demand without requiring any action or proceeding against Customer. This shall be construed as a continuing guaranty and shall not be revoked by the death of any of the guarantors but shall remain in fill force and effect until the guarantor(s) or the personal representatives of the guarantors) shall have given notice in writing to extend no further credit on the security of this guaranty. Guarantor(s) hereby authorize(s) AVFUEL to make such credit investigation as necessary to satisfy itself as to the credit worthiness of guarantor(s) and agrees to provide periodic statements of financial condition to AVFUEL. Guarantor(s) agree(s) to pay all actual attorney's fees and court costs incurred by AVFUEL in seeking enforcement of its rights under this Guaranty. 21. ENTIRE AGREEMENT/NO INCONSISTENT TERMS: This five (5) page Agreement, together with each Supplementary Agreement referenced in section II, states the entire agreement between Avfuel and the Customer with respect to the subject matter hereof and there are no other terms or conditions, oral or written, express or implied, relating to or otherwise affecting such subject matter. No term or condition of this Agreement shall be changed, supplemented, cancelled or waived unless in writing and signed by both Avfuel and the Customer. Without limiting the foregoing, any terms or conditions in any Purchase Order, Acknowledgement or other document issued by he Customer which are inconsistent with any of the terms or conditions of this Agreement or which impose any obligations upon Avfuel which are not imposed by the terms of this Agreement shall not be binding upon Avfuel and shall be null, void and of no effect. If Avfuel and the Customer have prior to the Effective Date been parties to any other agreement relating to the sale of Products to the Customer (a "Prior Agreement"), such Prior Agreement shall be superseded as of the Effective Date and all rights and obligation between Avfuel and the Customer with respect to the supply of Products from and after the Effective date shall be governed by the teens of this Agreement. (The terms and conditions of such Prior Agreement shall, however, remain in full force and effect with respect to tights and obligations relating to the supply of Products prior to the Effective Date and nothing contained in this Agreement shall be construed as terminating or otherwise affecting any such rights or obligations.) Customer's Initials Revised 11/96 Form FSI Page 5 of 5 AVFUEL CORPORATION • BRANDED PROGRAM AGREEMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS Customer: City of Fayetteville 4500 South School Ave., Suite 7 Fayetteville, AR 72701 Branding Program: AVFUEL Airport Location: The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: Customer signature BY: Prin't ame ITS: (g Title AVFUEL CORPORATION: ITS: The reference date of this Agreement is September 28, 2001. The effective date is such date or 1. DESIGNATION OF BRAND: In order to promote the sale of aviation fuels, Customer hereby agrees to participate in the above branded marketing program sponsored by Avfuel, and Avfiiel here by agrees to supply to Customer for Customer's use and possession during the term of this Agreement such signs, decals, credit card imprinters and other graphic materials as Avfuel deems necessary in order to identify Customer as a seller of aviation fuels manufactured or distributed by the organization identified above ("Avfuel's Designee") who will accept similarly branded credit cards in payment for the purchase of certain products and/or services, and whose business operations and facilities conform to standards established for such brand. 2. INTELLECTUAL PROPERTY/BRANDED PROPERTY: All trade names, trademarks, service marks, logo types and other commercial symbols of the designated brand (the "Intellectual Property") shall be and remain the property of Avfuel or Avfuel's Designee. Further all signs, decals, graphic materials and other tangible property supplied by Avfuel which bear or are imprinted with any of the Intellectual Property or are used to imprint or display the same (the "Branded Property") and all replacements thereof shall be and remain the property of Avf iel or Avf eel's Designee, as the case may be. Any use of the Intellectual Property or the Branded Property by the Customer otherwise than as expressly authorized by this Agreement is hereby expressly prohibited. 3. INSTALLATION AND MAINTENANCE: Customer shall be responsible for installation of all Branded Property including (without limitation) all electrical and other connections, and agrees that all installations shall comply with all brand specifications and with all applicable state and local codes, ordinances and governmental regulations (if any). No signage shall be installed so as to become a fixture upon real property. The use of color schemes and Intellectual Property painted on facilities and equipment owned by Customer ("Paint-ons") or others and used in the conduct of Customer's business, shall comply with particular and displayed specifications. Customer shall be responsible for maintenance and upkeep of Branded Property and Paint-ons, and agrees to keep and maintain the same at all times in a good, clean, safe, operative and first class condition, neatly painted and displayed. If any of such installation or maintenance is performed by Avf iel, Customer agrees to remit upon demand all costs thereof, including (without limitation) all expenditures for labor, materials and the like. If any Branded Property is damaged, lost or destroyed while in Customer's use, possession or control, or if Customer shall deliver any of such property to anyone not herein expressly authorized to use or possess it, Customer agrees to repair, recover or replace such property forthwith, at Customer's expense. 4. INSURANCE, TAXES AND ENCUMBRANCES: Customer shall keep all Branded Property insured at all times against loss, theft, fire or physical damage, up to the full replacement cost thereof, shall pay all personal property taxes and assessments against the same, and shall neither suffer nor permit any lien or encumbrance or any attachment against any of such property adverse to any right, title or interest of Avfuel or Avfuel's Designee. Customer's Initial Fmm BAI Page I oft Revision 03/09/99 ! • AVFUEL CORPORATION Res. r47 -a -B BRANDED PROGRAM AGREEMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS Customer: City of Fayetteville Branding Program: AVFUEL 4500 South School Ave., Suite 7 Airport Location: Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: Customer Signature BY: CC v Print Name ITS: vt4toq� � ib I% Title AVFUEL CORPORATION: BY: �� d WILLIAM B. LIG ITS: VICE PRESIDENT. ADMINISTRATION The reference date of this Agreement is September 28, 2001. The effective date is such date or TERMS AND CONDITIONS I. DESIGNATION OF BRAND: In order to promote the sale of aviation fuels, Customer hereby agrees to participate in the above branded marketing program sponsored by Avfuel, and Avfuel here by agrees to supply to Customer for Customer's use and possession during the term of this Agreement such signs, decals, credit card imprinters and other graphic materials as Avfuel deems necessary in order to identify Customer as a seller of aviation fuels manufactured or distributed by the organization identified above ("Avfuel's Designee") who will accept similarly branded credit cards in payment for the purchase of certain products and/or services, and whose business operations and facilities conform to standards established for such brand. 2. INTELLECTUAL PROPERTY/BRANDED PROPERTY: All trade names, trademarks, service marks, logo types and other commercial symbols of the designated brand (the "Intellectual Property") shall be and remain the property of Avfuel or Avfuel's Designee. Further all signs, decals, graphic materials and other tangible property supplied by Avfuel which bear or are imprinted with any of the Intellectual Property or are used to imprint or display the same (the "Branded Property") and all replacements thereof shall be and remain the property of Avfuel or Avfuel's Designee, as the case may be. Any use of the Intellectual Property or the Branded Property by the Customer otherwise than as expressly authorized by this Agreement is hereby expressly prohibited. 3. INSTALLATION AND MAINTENANCE: Customer shall be responsible for installation of all Branded Property including (without limitation) all electrical and other connections, and agrees that all installations shall comply with all brand specifications and with all applicable state and local codes, ordinances and governmental regulations (if any). No signage shall be installed so as to become a fixture upon real property. The use of color schemes and Intellectual Property painted on facilities and equipment owned by Customer ("Paint -on?) or others and used in the conduct of Customer's business, shall comply with particular and displayed specifications. Customer shall be responsible for maintenance and upkeep of Branded Property and Paint-ons, and agrees to keep and maintain the same at all times in a good, clean, safe, operative and first class condition, neatly painted and displayed. If any of such installation or maintenance is performed by Avfuel, Customer agrees to remit upon demand all costs thereof, including (without limitation) all expenditures for labor, materials and the like. If any Branded Property is damaged, lost or destroyed while in Customer's use, possession or control, or if Customer shall deliver any of such property to anyone not herein expressly authorized to use or possess it, Customer agrees to repair, recover or replace such property forthwith, at Customer's expense. 4. INSURANCE, TAXES AND ENCUMBRANCES: Customer shall keep all Branded Property insured at all times against loss, theft, fire or physical damage, up to the full replacement cost thereof, shall pay all personal property taxes and assessments against the same, and shall neither suffer nor permit any lien or encumbrance or any attachment against any of such property adverse to any right, title or interest of Avfuel or Avf iel's Designee. Customer's Initial Form BAI Page I oft 03/09/99 Iwo �i Revision R-5. 141-of- AVFUEL CORPORATION BRANDED PROGRAM AGREEMENT - Continued 5. TRADE PRACTICES: Customer agrees that it will not use or display any Branded Property or Intellectual Property furnished pursuant to this Agreement (i) in a manner which causes or is calculated to cause confusion among patrons of Customer or the general public as to the type, characteristics, quality, manufacture or sponsorship of any fuel or other product which Customer offers for sale, (ii) for the purpose of selling or promoting the sale of aviation fuel other than fuels supplied by Avfuel, or (iii) for the purpose of selling or offering for sale any product which has been diluted or adulterated, whether intentionally or not. Customer further agrees that it will at all times maintain its facilities and conduct its operations in compliance with those standards and procedures established from time to time by Avfuel and applicable to aviation fixed base operators displaying any of the Intellectual Property. Such standards and procedures may include (without limitation) image quality standards for the brand displayed, quality control and refueling procedures for products bearing such brand, and standards for services offered and facilities utilized by Customer in conjunction with such products. If the designated brand is owned by Avfuel, Avfuel will furnish Customer written information of all such standards and procedures and all amendments and additions thereto; otherwise, Avfuel will endeavor to inform Customer of all applicable standards and procedures for such brand, but Customer shall be responsible for maintaining Customers awareness of the same and of all amendments and additions thereto. Both Avfuel and Avfuel's Designee shall have the right to conduct such periodic tests and inspections as either of them may deem reasonably necessary to evaluate compliance with this Agreement; it being expressly understood that neither Avfuel nor Designee assumes any responsibility for Customers compliance. 6. GENERAL LIABILITY INSURANCE: Customer agrees to obtain and maintain in force at all times while this Agreement shall be and remain in effect, a comprehensive general liability insurance policy, including product liability, for limits not less than a combined single limit for bodily injury, property damage and product liability of $1,000,000.00. Said policy shall name Avfuel as an additional insured and shall provide for at least 30 days notice to Avfuel prior to its cancellation or modification. Customer agrees to provide Avfuel with certificates showing such coverage to be in force at the inception of this Agreement and thereafter for all insurance policy renewal periods. 7. TERM/TERMINATION: This Agreement shall become effective on the effective date set forth above. If there is no Aviation Fuel Supply Agreement (AFSA), then this agreement shall be terminable by AVFUEL for any reason or for no reason at all upon 30 days notice. If there is an AFSA in effect between the parties on the effective date hereof, or if an AFSA subsequently comes into effect between the parties, then this agreement shall continue for so long as an AFSA remains in effect. AVFUEL may, without further notice, terminate this agreement for any breach thereof if it has given the customer notice of the breach and no less than ten (10) calendar days to cure the breach. Avfuel may terminate this Agreement if Avfuel or Avfuel's Designee discontinues the branded program designated herein, or in case of constriction or disruption in the supply of branded aviation fuel, or if Avfuel's Designee shall rightfully cause any location operated by Customer to be unbranded. Customer may terminate this Agreement with Avfuel's consent by executing an agreement to participate in any other marketing program sponsored by Avfuel. Termination of this Agreement shall not automatically terminate the AFSA. 8. CUSTOMER'S OBLIGATIONS ON TERMINATION: Within ten (10) days following the termination of this Agreement by expiration, non - renewal or otherwise, Customer shall return to Avfuel, or if so instructed to Avfuel's Designee, by fully insured prepaid freight, all signs, credit card imprinters and other durable Branded Property by the same condition as when received by it (reasonable wear excepted), together with all decals and other non -durable Branded Property (not destroyed by removal), shall paint over or otherwise obliterate all Paint-ons, and shall cease to use or display any Branded Property or Intellectual Property and all other commercial symbols deceptively similar thereto. Should Customer fail to do so, Avfuel and Avfuel's Designee, or either of them, are hereby irrevocably authorized to gain entry to Seller's premises where any of the Branded Property may be situated or any Intellectual Property displayed, and there to carry out and perform any and all of Customers obligations hereunder, at Customer's expense. 9. RELATIONSHIP BETWEEN THE PARTIES: Customer and Avfuel are completely separate entities and are not partners, masters, servants, joint venturers or agents of each other in any sense whatsoever and nothing in this Agreement shall be construed as granting or reserving unto Avfuel any right to exercise control over any of the business or operations of Customer or to direct in any respect the manner in which any of Customer's business or operations shall be conducted. 10. The Standard Provisions of Contracts from the AFSA are incorporated herein by reference and made a part of this Agreement. Customer's Initial Fomr BA! Page 2 of 2 93/09/99 ��SRevision • H • r AVFUEL CORPORATION BRANDED PROGRAMAGREEMENT - Continued 5. TRADE PRACTICES: Customer agrees that it will not use or display any Branded Property or Intellectual Property furnished pursuant to this Agreement (i) in a manner which causes or is calculated to cause confusion among patrons of Customer or the general public as to the type, characteristics, quality, manufacture or sponsorship of any fuel or other product which Customer offers for sale, (ii) for the purpose of selling or promoting the sale of aviation fuel other than fuels supplied by Avfuel, or (iii) for the purpose of selling or offering for sale any product which has been diluted or adulterated, whether intentionally or not. Customer further agrees that it will at all times maintain its facilities and conduct its operations in compliance with those standards and procedures established from time to time by Avfuel and applicable to aviation fixed base operators displaying any of the Intellectual Property. Such standards and procedures may include (without limitation) image quality standards for the brand displayed, quality control and refueling procedures for products bearing such brand, and standards for services offered and facilities utilized by Customer in conjunction with such products. If the designated brand is owned by Avf rel, Avfuel will furnish Customer written information of all such standards and procedures and all amendments and additions thereto; otherwise, Avfuel will endeavor to inform Customer of all applicable standards and procedures for such brand, but Customer shall be responsible for maintaining Customer's awareness of the same and of all amendments and additions thereto. Both Avfuel and Avfuel's Designee shall have the right to conduct such periodic tests and inspections as either of them may deem reasonably necessary to evaluate compliance with this Agreement; it being expressly understood that neither Avfuel nor Designee assumes any responsibility for Customer's compliance. 6. GENERAL LIABILITY INSURANCE: Customer agrees to obtain and maintain in force at all times while this Agreement shall be and remain in effect, a comprehensive general liability insurance policy, including product liability, for limits not less than a combined single limit for bodily injury, property damage and product liability of $ 1,000,000.00. Said policy shall name Avfuel as an additional insured and shall provide for at least 30 days notice to Avfuel prior to its cancellation or modification. Customer agrees to provide Avfuel with certificates showing such coverage to be in force at the inception of this Agreement and thereafter for all insurance policy renewal periods. TERMITERMINATION: This Agreement shall become effective on the effective date set forth above. If there is no Aviation Fuel Supply Agreement (AFSA), then this agreement shall be terminable by AVFUEL for any reason or for no reason at all upon 30 days notice. If there is an AFSA in effect between the parties on the effective date hereof, or if an AFSA subsequently comes into effect between the parties, then this agreement shall continue for so long as an AFSA remains in effect AVFUEL may, without further notice, terminate this agreement for any breach thereof if it has given the customer notice of the breach and no less than ten (10) calendar days to cure the breach. Avfuel may terminate this Agreement if Avfuel or Avfuel's Designee discontinues the branded program designated herein, or in case of constriction or disruption in the supply of branded aviation fuel, or if Avfuel's Designee shall rightfully cause any location operated by Customer to be unbranded. Customer may terminate this Agreement with Avfuel's consent by executing an agreement to participate in any other marketing program sponsored by Avfuel. Termination of this Agreement shall not automatically terminate the AFSA. 8. CUSTOMER'S OBLIGATIONS ON TERMINATION: Within ten (10) days following the termination of this Agreement by expiration, non - renewal or otherwise, Customer shall return to Avfuel, or if so instructed to Avf iel's Designee, by fully insured prepaid freight, all signs, credit card imprinters and other durable Branded Property by the same condition as when received by it (reasonable wear excepted), together with all decals and other non -durable Branded Property (not destroyed by removal), shall paint over or otherwise obliterate all Paint-ons, and shall cease to use or display any Branded Property or Intellectual Property and all other commercial symbols deceptively similar thereto. Should Customer fail to do so, Avf iel and Avfuel's Designee, or either of them, are hereby irrevocably authorized to gain entry to Seller's premises where any of the Branded Property may be situated or any Intellectual Property displayed, and there to carry out and perform any and all of Customer's obligations hereunder, at Customer's expense. 9. RELATIONSHIP BETWEEN THE PARTIES: Customer and Avf rel are completely separate entities and are not partners, masters, servants, joint venturers or agents of each other in any sense whatsoever and nothing in this Agreement shall be construed as granting or reserving unto Avfuel any right to exercise control over any of the business or operations of Customer or to direct in any respect the manner in which any of Customer's business or operations shall be conducted. 10. The Standard Provisions of Contracts from the AFSA are incorporated herein by reference and made a part of this Agreement. Customer's Initial Form BAI 03109/99 Page 2 of 2 Revision • AVFUEL CORPORATION • BRANDED PROGRAM A GREEMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS Customer: City of Fayetteville 4500 South School Ave., Suite 7 Fayetteville, AR 72701 Branding Program: AVFUEL Airport Location: The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: Customer Signature BY: Print Name ITS: Title AVFUEL CORPORATION: BY: ITS: The reference date of this Agreement is September 28, 2001. The effective date is such date or TERMS AND CONDITIONS 1. DESIGNATION OF BRAND: In order to promote the sale of aviation fuels, Customer hereby agrees to participate in the above branded marketing program sponsored by Avfuel, and Avfuel here by agrees to supply to Customer for Customer's use and possession during the term of this Agreement such signs, decals, credit card imprinters and other graphic materials as Avfuel deems necessary in order to identify Customer as a seller of aviation fuels manufactured or distributed by the organization identified above ("Avfuel's Designee") who will accept similarly branded credit cards in payment for the purchase of certain products and/or services, and whose business operations and facilities conform to standards established for such brand. 2. INTELLECTUAL PROPERTY/BRANDED PROPERTY: All trade names, trademarks, service marks, logo types and other commercial symbols of the designated brand (the "Intellectual Property") shall be and remain the property of Avf iel or Avfuel's Designee. Further all signs, decals, graphic materials and other tangible property supplied by Avf iel which bear or are imprinted with any of the Intellectual Property or are used to imprint or display the same (the "Branded Property") and all replacements thereof shall be and remain the property of Avfuel or Avftiel's Designee, as the case may be. Any use of the Intellectual Property or the Branded Property by the Customer otherwise than as expressly authorized by this Agreement is hereby expressly prohibited. 3. INSTALLATION AND MAINTENANCE: Customer shall be responsible for installation of all Branded Property including (without limitation) all electrical and other connections, and agrees that all installations shall comply with all brand specifications and with all applicable state and local codes, ordinances and governmental regulations (if any). No signage shall be installed so as to become a fixture upon real property. The use of color schemes and Intellectual Property painted on facilities and equipment owned by Customer ("Paint-ons") or others and used in the conduct of Customer's business, shall comply with particular and displayed specifications. Customer shall be responsible for maintenance and upkeep of Branded Property and Paint-ons, and agrees to keep and maintain the same at all times in a good, clean, safe, operative and first class condition, neatly painted and displayed. If any of such installation or maintenance is performed by Avf iel, Customer agrees to remit upon demand all costs thereof, including (without limitation) all expenditures for labor, materials and the like. If any Branded Property is damaged, lost or destroyed while in Customer's use, possession or control, or if Customer shall deliver any of such property to anyone not herein expressly authorized to use or possess it, Customer agrees to repair, recover or replace such property forthwith, at Customer's expense. 4. INSURANCE, TAXES AND ENCUMBRANCES: Customer shall keep all Branded Property insured at all times against loss, theft, fire or physical damage, up to the full replacement cost thereof, shall pay all personal property taxes and assessments against the same, and shall neither suffer nor permit any lien or encumbrance or any attachment against any of such property adverse to any right, title or interest of Avfuel or Avfuel's Designee. Customer's Initial Fam BAI Page I of 2 03/09/99 Revision AVFUEL CORPORATION BRANDED PROGRAM A GREEMENT - Continued 5. TRADE PRACTICES: Customer agrees that it will not use or display any Branded Property or Intellectual Property furnished pursuant to this Agreement (i) in a manner which causes or is calculated to cause confusion among patrons of Customer or the general public as to the type, characteristics, quality, manufacture or sponsorship of any fuel or other product which Customer offers for sale, (ii) for the purpose of selling or promoting the sale of aviation fuel other than fuels supplied by Avfuel, or (iii) for the purpose of selling or offering for sale any product which has been diluted or adulterated, whether intentionally or not. Customer further agrees that it will at all times maintain its facilities and conduct its operations in compliance with those standards and procedures established from time to time by Avfuel and applicable to aviation fixed base operators displaying any of the Intellectual Property. Such standards and procedures may include (without limitation) image quality standards for the brand displayed, quality control and refueling procedures for products bearing such brand, and standards for services offered and facilities utilized by Customer in conjunction with such products. If the designated brand is owned by Avfuel, Avfuel will furnish Customer written information of all such standards and procedures and all amendments and additions thereto; otherwise, Avfuel will endeavor to inform Customer of all applicable standards and procedures for such brand, but Customer shall be responsible for maintaining Customer's awareness of the same and of all amendments and additions thereto. Both Avfuel and Avfuel's Designee shall have the right to conduct such periodic tests and inspections as either of them may deem reasonably necessary to evaluate compliance with this Agreement; it being expressly understood that neither Avfuel nor Designee assumes any responsibility for Customer's compliance. 6. GENERAL LIABILITY INSURANCE: Customer agrees to obtain and maintain in force at all times while this Agreement shall be and remain in effect, a comprehensive general liability insurance policy, including product liability, for limits not less than a combined single limit for bodily injury, property damage and product liability of $1,000,000.00. Said policy shall name Avfuel as an additional insured and shall provide for at least 30 days notice to Avfuel prior to its cancellation or modification. Customer agrees to provide Avfuel with certificates showing such coverage to be in force at the inception of this Agreement and thereafter for all insurance policy renewal periods. 7. TERM/TERMINATION: This Agreement shall become effective on the effective date set forth above. If there is no Aviation Fuel Supply Agreement (AFSA), then this agreement shall be terminable by AVFUEL for any reason or for no reason at all upon 30 days notice. If there is an AFSA in effect between the parties on the effective date hereof, or if an AFSA subsequently comes into effect between the parties, then this agreement shall continue for so long as an AFSA remains in effect. AVFUEL may, without further notice, terminate this agreement for any breach thereof if it has given the customer notice of the breach and no less than ten (10) calendar days to cure the breach. Avfuel may terminate this Agreement if Avfuel or Avfuel's Designee discontinues the branded program designated herein, or in case of constriction or disruption in the supply of branded aviation fuel, or if Avfuel's Designee shall rightfully cause any location operated by Customer to be unbranded. Customer may terminate this Agreement with Avfuel's consent by executing an agreement to participate in any other marketing program sponsored by Avfuel. Termination of this Agreement shall not automatically terminate the AFSA. 8. CUSTOMER'S OBLIGATIONS ON TERMINATION: Within ten (10) days following the termination of this Agreement by expiration, non - renewal or otherwise, Customer shall return to Avfuel, or if so instructed to Avfuel's Designee, by fully insured prepaid freight, all signs, credit card imprinters and other durable Branded Property by the same condition as when received by it (reasonable wear excepted), together with all decals and other non -durable Branded Property (not destroyed by removal), shall paint over or otherwise obliterate all Paint-ons, and shall cease to use or display any Branded Property or Intellectual Property and all other commercial symbols deceptively similar thereto. Should Customer fail to do so, Avfuel and Avfael's Designee, or either of them, are hereby irrevocably authorized to gain entry to Seller's premises where any of the Branded Property may be situated or any Intellectual Property displayed, and there to carry out and perform any and all of Customer's obligations hereunder, at Customer's expense. 9. RELATIONSHIP BETWEEN THE PARTIES: Customer and Avfuel are completely separate entities and are not partners, masters, servants, joint venturers or agents of each other in any sense whatsoever and nothing in this Agreement shall be construed as granting or reserving unto Avfuel any right to exercise control over any of the business or operations of Customer or to direct in any respect the manner in which any of Customer's business or operations shall be conducted. 10. The Standard Provisions of Contracts from the AFSA are incorporated herein by reference and made a part of this Agreement Customer's Initial Fam BAt Page 2 of 2 .. 03/09/99 Revision i 10=20-01 01:36pm from-AVFUEL 46 1346631681 • T-954 P.04/04 F-319 ADDENDUM A to the CREDIT AND CHARGE CARD ACCEPTANCE AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETTEVILLE, AR The following is incorporated and made part of the above named agreement with a reference date of September 28, 2001. 1 Section 2, Payment Upon Vouchers: In the first sentence the words, "or, as Avfuel.. .with Avfuel in" are deleted. The following is added to the end of this section, "If at anytime Avfuel should feel itself insecure for any reason including but not limited to customer being behind in payments to Avfuel, then Avfuel may apply monies due to customer to any account owing to Avfuel or any of its affiliates". AVFUEL CORPORATION By: Signature Its: Print name / Title Date: THE CITY of FAYETTEVILLE, AR By: Signanuc Its: Print name / Title Date: 816 2 9559 FAX NO. 501 646 Ra P. 02 Oct -30-01 14:12 AVF CORPORATIOn UI • 13 r1I I ICVILLL RIKYIIKT Io-i-01 01:3tott From-AYFIEL 71116311/1 T-161 P.04/O4 F-311 ADDENDUM A to the CREDIT AND CHARGE CARD ACCEPTANCE AGREEMENT between AVFUEL CORPORATION and THE CITY OF FAYETT'EVILLE, AR The following is incorporated and made pan of the above named agreement with a reference date of Septemnber 29, 2001. 1. Section 2, Payment Upon Vouchers: In the first sentence the woTds, "or, as Avfuel._.with Avfucl in" are deleted. The following is added to the end of this section, "If at anytime Avfuei should feel itself insecure for any reason including but not limited to customer being behind in payments to Avfuel, then Av&el may apply monies due to customer to any account owing to Avfllel or any of its of iliatcs". AVFUEL CORPORATION Hy- sirulure 1u: WILLIAM B. LIGHT print tADMrJInrRMIoN Dttr. -- TEE By: �IlI�rt12y�/,/ I r ks . l4Y-o1 -B Customer: AVFUEL CORPORATION CRRD!T AND CHARGE CARD ACCEPIANCI AGREEMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS CITY OF FAYETTEVILLE, AR 4500 South School Ave., Suite 7 Fayetteville, AR 72701 Branding Program: AVFUEL Airport Location: The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: Customer Signature (\ BY:134. Print Name ITS: TillE AVFUEL CORPORRRAAATIION: BY: WILLIAM B. LIGHT �,---rT- ITS: VICE PRESIDENT, ADMINISTRATION The reference date of this Agreement is September 28, 2001. The effective date is such date or TERMS AND CONDITIONS HONOR AND ACCEPTANCE OF CREDIT CARDS: At it's election, Customer may honor any valid credit card listed in the most current acceptable credit card listing issued by Avfuel ("Acceptable Cards"). Avfuel agrees to accept assignment of Customer's credit card accounts receivable created in accordance with this Agreement ("Acceptable Charges") if Customer does not have a merchant agreement with the issuer of such card or any processor of such accounts other than Avfuel; and provided, such card is presented by the cardholder or Authorized User in payment for an authorized purchase on credit of aviation fuels or other products or services normally sold in the ordinary course of business by aviation fixed base operators, at Customer's location dispensing aviation fuels supplied by Avfuel. The term "Authorized User" means a person other than the cardholder whose authority to charge purchases on a credit card is stated on that card. Except as otherwise agreed, Avfuel's acceptance of any and all credit card accounts receivable shall be with full recourse against Customer and subject to full charge back rights. 2. PAYMENT UPON VOUCHERS: Upon receipt from Customer of properly prepared vouchers or a Datatrol batch transmission representing Acceptable Charges, together with summaries thereof on forms prescribed by Avfuel, Avfuel shall remit to Customer or, as Avfuel may elect, credit Customer's fuel purchase account with Avfuel, in an amount equal to the total face amount of all such vouchers less such discounts as applicable according to Avfuel's then current accounts receivable discount schedule. The term "voucher" as used in this Agreement means a machine imprinted credit card slip or other written record of a credit sale in form acceptable to Avfuel which has been fully completed by Customer manually or by Datatrol in accordance with the terms of this Agreement, and signed by the cardholder or Authorized User. Avfuel's accounts receivable discount schedule is subject to change upon five (5) days prior written notice. 3. CUSTOMER'S RESPONSIBILITIES: With respect to Acceptable Charges presented under this Agreement (a) Prior to the sale, Customer must confirm that the credit card is not expired and that its use is authorized. Customer must secure sales authorizations when required, and current lost, stolen or unauthorized card lists must be checked. All sales must be processed on manual or Datatrol imprinter. Customer shall be responsible for completing all vouchers accurately and legibly. Imprinted and hand written amounts on invoices must agree; if not, the lesser amount shall prevail in crediting Customer. Vouchers shall be on the forms supplied by Avfuel, dated, imprinted with the Customers plate and a valid credit card showing the cardholders name and credit card number; vouchers shall contain the registration number of the aircraft being serviced, shall specify and describe the quantities of goods delivered and/or services rendered, and shall show the dollar amount of the sale and all applicable taxes. Vouchers must be Customer's Initials Form CCI Page I of 3 Revised 06/01/92 • • fEs, ,4y%oi-g signed by the cardholder or Authorized User. Customer is responsible for identifying and verifying the presenter as the cardholder or Authorized User, and shall require an additional source of identification of the presenter. The presenter shall be given a copy of the credit voucher at the time of sale. (b) Except in Branded Card Transactions (as defined in this Agreement), the current telephone number and current billing address of both the cardholder and Authorized User must be legibly printed or typed upon the voucher, and Customer shall inform the presenter that cardholder will be billed directly by Avfuel and not by the credit card issuer. (c) Statement copies of all vouchers shall be forwarded to Avfuel weekly, but not later than ten days after transaction date. Customer must keep copies of vouchers and summaries for a period of one year and supply Avfuel with duplicates if requested. (d) Customer acknowledges receipt of and agrees to observe Avfuel's current instructions for recording and processing credit card transactions. Avfuel reserves the right to amend any and all instructions and to add new instructions from time to time, and Customer agrees to be bound by all such amendments and new instructions. Avfuel also reserves the right to issue new or revised forms and imprinters from time to time, and to issue instructions regarding their use to be effective upon five (5) days prior written notice. Unauthorized card lists shall be effective upon receipt by customer and Avfuel reserves the right to make additions and deletions to such list by telephone. (e) Customer shall be solely liable and responsible for remittance of all taxes to the proper authorities regardless of whether charged to purchaser. Avfuel does not assume responsibility for the payment of any tax applicable to sales or other transactions resulting in credit card accounts receivable and Customer shall defend, indemnify and hold harmless Avfuel from any such claims. AVFUEL'S CHARGE BACK RIGHTS: Without limiting the generality of other provisions of this Agreement pertaining to charge backs, it is specifically understood and agreed that Avfuel may decline to accept or, if accepted, may subsequently charge back to Customer any vouchers: (a) Where any of the required information is omitted or illegible; (b) Which are imprinted with an expired credit card or with a credit card listed on the then current lost, stolen or unauthorized card list; (c) Covering purchases not authorized by the cardholder or involving fraud or any misuse of a credit card by the purchaser with or without Customers knowledge; (d) Covering transactions which have not been pre -authorized or approved, in accordance with applicable instructions; (e) Covering any transaction or series of related transactions (constituting in the reasonable opinion of Avfuel a single sale transaction) the aggregate face amount of which exceeds any of the single sale limitations set forth in this Agreement; (F) Pertaining to any transaction where there is a failure on the part of Customer to perform services or furnish products as agreed with purchaser or which becomes the subject of a dispute between Customer and purchaser; (g) Representing any sales transaction in which the cardholder or Authorized User has not received his copy of the voucher; (h) For which Customer has received or will receive any payment or reimbursement from any person other than Avfuel; provided, if a down payment or trade-in is accepted in connection with the same transaction, a copy of the sales invoice showing the amount thereof shall be attached to the voucher, and the voucher shall not exceed the balance due. (i) Where Customer has granted any right of ownership or security interest in favor of any person other than Avfuel; 0) Which are presented by Customer to Avfuel more than ten (10) days after the transaction date; (k) Covering transactions occurring after the date of expiration or termination of this Agreement; Created by any person other than Customer, or in any transaction other than a transaction in which Customer has sold merchandise or services to a purchaser presenting his credit card for use in payment therefor; (m) Bearing a billing address for the cardholder or Authorized User, which is outside the territorial limits of the United States or the Dominion of Canada; (n) Representing oil company credit card transactions (other than Branded Card Transactions) not paid by the cardholder within ninety (90) days after assignment to Avfuel; provided, Avfuel has billed the cardholder and attempted to collect the amount thereof without resort to litigation, or (o) In any other manner not in conformity with this Agreement or with Avfuel's instructions for recording and processing credit card transactions. In the event charge backs exceed any credit balance in Customer's fuel purchase account then carried by Avfuel, Customer agrees to pay such amounts within three (3) days after notice that such amounts are due. Upon reimbursement, title to the subject voucher and all indebtedness represented thereby shall pass to Customer. If any funds come into Avfuel's possession for any voucher, which has previously been charged back to Customer, Avfuel will promptly credit the full amount thereof to Customer's account. Avfuel's charge back rights and rights of recourse against Customer shall survive the termination of this Agreement. 5. SALE LIMITATIONS AND EXCLUSIONS: Cash advances may not be charged on any card. Lessons, aircraft rental, charter, and aircraft parts and accessories not incorporated in repairs or mounted upon the aircraft may not be charged on the Avfuel Card. A single sale to any Customer's Initials Form CCI Page 2 of 3 Revised 06/01/92 L Ross, ,*t-ai-B one purchaser resulting in one or more than one credit card voucher shall be specifically limited as follows (a) To a total of $250 for miscellaneous services including but not limited to such items as tic downs, catering, aircraft storage, pilot supplies, charts, repairs and other services on the Avfuel Card or Honor All cards (other oil co. credit cards). (b) To quantities of fuel and lubricants not greater than the useful capacity of the aircraft, and shall only include fuels from stocks delivered by and purchased from Avfuel; and (c) To an aggregate total of $2,000.00 for verified Honor All transactions. 6. BRANDED CARD TRANSACTIONS: Branded Card Transactions are credit sales under a BRANDED PROGRAM AGREEMENT in effect between the parties from time to time where the Customer is required to honor valid branded credit cards issued by Avfuel or its Designee named therein, and may honor credit cards for which the branded card issuer has interchange agreements. Avfuel shall accept vouchers representing valid Branded Card Transactions at face value less such discount as may from time to time be applicable thereto under any arrangement then in effect between issuer and Avfuel or as otherwise agreed. Customer acknowledges receipt of issuer's instructions for recording and processing Branded Card Transactions and agrees to be bound by same and by all amendments thereto. This Section 6 shall not apply to Acceptable Charges, which are not Branded Card Transactions. In addition: (a) All Branded Card Transactions shall be governed by the card issuer's instructions as well as the terms and conditions of this Agreement, and in case of conflict, issuer's instructions shall prevail; and (b) Avfuel shall have all rights of recourse and all charge back rights against Customer, which the credit card issuer may have or exercise against Avfuel, in full subrogation. 7. TERM/TERMINATION: The term of this Agreement shall coincide with the term of the AFSA which is in effect between the parties and any and all renewals and extensions thereof, and termination of that agreement by expiration or other wise, without a new or renewal AFSA having taken effect between the parties, shall automatically terminate this Agreement. Avfuel shall have the right to terminate this Agreement on thirty (30) days prior written notice to Customer. Termination of this Agreement shall not automatically terminate the AFSA. 8. NOTICES: The Standard Provision of Contractors from the AFSA are incorporated herein by reference and made a pan of this Agreement. Customer's Initials Form ccl Page 3 of 3 Revised 06/01/92 k4% 'y I AVFUEL CORPORATION CREDIT AND CJL4RGE CARD A CCEPTANCE AGREMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS Customer: CITY OF FAYETTEVILLE, AR Branding Program: AVFUEL 4500 South School Ave., Suite 7 Airport Location: Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement ACCEPTED BY: Customer Signature BY: C v Print Name ITS:' Till AVFUEL CORPORATION: BY: ITS: The reference date of this Agreement is September 28, 2001. The effective date is such date or HONOR AND ACCEPTANCE OF CREDIT CARDS: At it's election, Customer may honor any valid credit card listed in the most current acceptable credit card listing issued by Avfuel ("Acceptable Cards"). Avf iel agrees to accept assignment of Customer's credit card accounts receivable created in accordance with this Agreement ("Acceptable Charges") if Customer does not have a merchant agreement with the issuer of such card or any processor of such accounts other than Avfuel; and provided, such card is presented by the cardholder or Authorized User in payment for an authorized purchase on credit of aviation fuels or other products or services normally sold in the ordinary course of business by aviation fixed base operators, at Customer's location dispensing aviation fuels supplied by Avfiiel. The term "Authorized User" means a person other than the cardholder whose authority to charge purchases on a credit card is stated on that card. Except as otherwise agreed, Avfuel's acceptance of any and all credit card accounts receivable shall be with full recourse against Customer and subject to full charge back rights. 2. PAYMENT UPON VOUCHERS: Upon receipt from Customer of properly prepared vouchers or a Datatrol batch transmission representing Acceptable Charges, together with summaries thereof on forms prescribed by Avfuel, Avfuel shall remit to Customer or, as Avfuel may elect, credit Customer's fuel purchase account with Avfuel, in an amount equal to the total face amount of all such vouchers less such discounts as applicable according to Avfuel's then current accounts receivable discount schedule. The term "voucher" as used in this Agreement means a machine imprinted credit card slip or other written record of a credit sale in form acceptable to Avfuel which has been fully completed by Customer manually or by Datatrol in accordance with the terms of this Agreement, and signed by the cardholder or Authorized User. Avfuel's accounts receivable discount schedule is subject to change upon five (5) days prior written notice. 3. CUSTOMER'S RESPONSIBILMES: With respect to Acceptable Charges presented under this Agreement (a) Prior to the sale, Customer must confirm that the credit card is not expired and that its use is authorized. Customer must secure sales authorizations when required, and current lost, stolen or unauthorized card lists must be checked. All sales must be processed on manual or Datatrol imprinter. Customer shall be responsible for completing all vouchers accurately and legibly. Imprinted and hand written amounts on invoices must agree; if not, the lesser amount shall prevail in crediting Customer. Vouchers shall be on the forms supplied by Avfuel, dated, imprinted with the Customer's plate and a valid credit card showing the cardholder's name and credit card number; vouchers shall contain the registration number of the aircraft being serviced, shall specify and describe the quantities of goods delivered and/or services rendered, and shall show the dollar amount of the sale and all applicable taxes. Vouchers must be Customer's Initials Form CCI Page 1 of 3 Revised 06/01/92 signed by the cardholder or Authorized User. Customer is responsible for identifying and verifying the presenter as the cardholder or Authorized User, and shall require an additional source of identification of the presenter. The presenter shall be given a copy of the credit voucher at the time of sale. (b) Except in Branded Card Transactions (as defined in this Agreement), the current telephone number and current billing address of both the cardholder and Authorized User must be legibly printed or typed upon the voucher, and Customer shall inform the presenter that cardholder will be billed directly by Avfuel and not by the credit card issuer. (c) Statement copies of all vouchers shall be forwarded to Avfuel weekly; but not later than ten days after transaction date. Customer must keep copies of vouchers and summaries for a period of one year and supply Avfuel with duplicates if requested. (d) Customer acknowledges receipt of and agrees to observe Avfuel's current instructions for recording and processing credit card transactions. Avfuel reserves the right to amend any and all instructions and to add new instructions from time to time, and Customer agrees to be bound by all such amendments and new instructions. Avfuel also reserves the right to issue new or revised forms and imprinters from time to time, and to issue instructions regarding their use to be effective upon five (5) days prior written notice. Unauthorized card lists shall be effective upon receipt by customer and Avfuel reserves the right to make additions and deletions to such list by telephone. (e) Customer shall be solely liable and responsible for remittance of all taxes to the proper authorities regardless of whether charged to purchaser. Avfuel does not assume responsibility for the payment of any tax applicable to sales or other transactions resulting in credit card accounts receivable and Customer shall defend, indemnify and hold harmless Avfuel from any such claims. 4. AVFUEL'S CHARGE BACK RIGHTS: Without limiting the generality of other provisions of this Agreement pertaining to charge backs, it is specifically understood and agreed that Avfuel may decline to accept or, if accepted, may subsequently charge back to Customer any vouchers: (a) Where any of the required information is omitted or illegible; (b) Which are imprinted with an expired credit card or with a credit card listed on the then current lost, stolen or unauthorized card list; (c) Covering purchases not authorized by the cardholder or involving fraud or any misuse of a credit card by the purchaser with or without Customer's knowledge; (d) Covering transactions which have not been pre -authorized or approved, in accordance with applicable instructions; (e) Covering any transaction or series of related transactions (constituting in the reasonable opinion of Avfuel a single sale transaction) the aggregate face amount of which exceeds any of the single sale limitations set forth in this Agreement; (f) Pertaining to any transaction where there is a failure on the part of Customer to perform services or furnish products as agreed with purchaser or which becomes the subject of a dispute between Customer and purchaser; (g) Representing any sales transaction in which the cardholder or Authorized User has not received his copy of the voucher; (h) For which Customer has received or will receive any payment or reimbursement from any person other than Avfuel; provided, if a down payment or trade-in is accepted in connection with the same transaction, a copy of the sales invoice showing the amount thereof shall be attached to the voucher, and the voucher shall not exceed the balance due. (i) Where Customer has granted any right of ownership or security interest in favor of any person other than Avfuel; (j) Which are presented by Customer to Avfuel more than ten (10) days after the transaction date; (k) Covering transactions occurring after the date of expiration or termination of this Agreement; Created by any person other than Customer, or in any transaction other than a transaction in which Customer has sold merchandise or services to a purchaser presenting his credit card for use in payment therefor; (m) Bearing a billing address for the cardholder or Authorized User, which is outside the territorial limits of the United States or the Dominion of Canada; (n) Representing oil company credit card transactions (other than Branded Card Transactions) not paid by the cardholder within ninety (90) days after assignment to Avfuel; provided, Avfuel has billed the cardholder and attempted to collect the amount thereof without resort to litigation, or (o) In any other manner not in conformity with this Agreement or with Avfuel's instructions for recording and processing credit card transactions. In the event charge backs exceed any credit balance in Customer's fuel purchase account then carried by Avfuel, Customer agrees to pay such amounts within three (3) days after notice that such amounts are due. Upon reimbursement, title to the subject voucher and all indebtedness represented thereby shall pass to Customer. If any funds come into Avfuel's possession for any voucher, which has previously been charged back to Customer, Avfuel will promptly credit the full amount thereof to Customer's account. Avfuel's charge back rights and rights of recourse against Customer shall survive the termination of this Agreement. 5. SALE LIMITATIONS AND EXCLUSIONS: Cash advances may not be charged on any card. Lessons, aircraft rental, charter, and aircraft parts and accessories not incorporated in repairs or mounted upon the aircraft may not be charged on the Avfuel Card. A single sale to any Customer's Initials Page 2 of 3 Revised 06/01/92 Form CC I one purchaser resulting in one or more than one credit card voucher shall be specifically limited as follows (a) To a total of $250 for miscellaneous services including but not limited to such items as tie downs, catering, aircraft storage, pilot supplies, charts, repairs and other services on the Avfuel Card or Honor All cards (other oil co. credit cards). (b) To quantities of fuel and lubricants not greater than the useful capacity of the aircraft, and shall only include fuels from stocks delivered by and purchased from Avfuel; and (c) To an aggregate total of $2,000.00 for verified Honor All transactions. 6. BRANDED CARD TRANSACTIONS: Branded Card Transactions are credit sales under a BRANDED PROGRAM AGREEMENT in effect between the parties from time to time where the Customer is required to honor valid branded credit cards issued by Avfuel or its Designee named therein, and may honor credit cards for which the branded card issuer has interchange agreements. Avfuel shall accept vouchers representing valid Branded Card Transactions at face value less such discount as may from time to time be applicable thereto under any arrangement then in effect between issuer and Avfuel or as otherwise agreed. Customer acknowledges receipt of issuer's instructions for recording and processing Branded Card Transactions and agrees to be bound by same and by all amendments thereto. This Section 6 shall not apply to Acceptable Charges, which are not Branded Card Transactions. In addition: (a) All Branded Card Transactions shall be governed by the card issuer's instructions as well as the terms and conditions of this Agreement, and in case of conflict, issuer's instructions shall prevail; and (b) Avfuel shall have all rights of recourse and all charge back rights against Customer, which the credit card issuer may have or exercise against Avfuel, in full subrogation. TERM/FERMINATION: The term of this Agreement shall coincide with the term of the AFSA which is in effect between the parties and any and all renewals and extensions thereof, and termination of that agreement by expiration or other wise, without a new or renewal AFSA having taken effect between the parties, shall automatically terminate this Agreement. Avfuel shall have the right to terminate this Agreement on thirty (30) days prior written notice to Customer. Termination of this Agreement shall not automatically terminate the AFSA. 8. NOTICES: The Standard Provision of Contractors from the AFSA are incorporated herein by reference and made a part of this Agreement. Customer's Initials Page 3 of 3 Revised 06/01/92 Form CCI AVFUEL CORPORATION CREDIT AND CHARGE CARD ACCEPTANCE AGREEMENT Supplement to Aviation Fuel Supply Agreement ("AFSA") SUMMARY OF TERMS AND CONDITIONS Customer: CITY OF FAYETTEVILLE, AR Branding Program: AVFUEL 4500 South School Ave., Suite 7 Airport Location: Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: Customer Signature BY: Print Name ITS: Title AVFUEL CORPORATION: BY: ITS: The reference date of this Agreement is September 28, 2001. The effective date is such date or TERMS AND CONDITIONS I. HONOR AND ACCEPTANCE OF CREDIT CARDS: At its election, Customer may honor any valid credit card listed in the most current acceptable credit card listing issued by Avfuel ("Acceptable Cards"). Avfuel agrees to accept assignment of Customer's credit card accounts receivable created in accordance with this Agreement ("Acceptable Charges") if Customer does not have a merchant agreement with the issuer of such card or any processor of such accounts other than Avfuel; and provided, such card is presented by the cardholder or Authorized User in payment for an authorized purchase on credit of aviation fuels or other products or services normally sold in the ordinary course of business by aviation fixed base operators, at Customers location dispensing aviation fuels supplied by Avfuel. The term "Authorized User" means a person other than the cardholder whose authority to charge purchases on a credit card is stated on that card. Except as otherwise agreed, Avfuel's acceptance of any and all credit card accounts receivable shall be with full recourse against Customer and subject to full charge b ck ri ts. a— .- --��S \L1LvM . \r QO. 2. PAYMENT UPON VOUCHERS: Upon receipt from Customer of roperly prepared vouchers or a Datatrol batch transmission representing Acceptable Charges, together with summaries thereof on forms rescribed by Avfuel, Avfuel shall remit to Customer_£ C y iiotlnt ol all such voucners iesssuch applicable aJISUJUItL I The term "voucher" as used in this Agreement means a machine imprinted credit card slip or other written record of a credit sale in fo acceptable to Avfuel which has been fully completed by Customer manually or by Datatrol in accordance with the terms of this Agreement, and signed by the cardholder or Authorized User. Avfuel's accounts receivable discount schedule is subject to change upon five (5) days prior written notice. 3. CUSTOMER'S RESPONSIBILITIES: With respect to Acceptable Charges presented under this Agreement. (a) Prior to the sale, Customer must confirm that the credit card is not expired and that its use is authorized. Customer must secure sales authorizations when required, and current lost, stolen or unauthorized card lists must be checked. All sales must be processed on manual or Datatrol imprinter. Customer shall be responsible for completing all vouchers accurately and legibly. Imprinted and hand written amounts on invoices must agree; if not, the lesser amount shall prevail in crediting Customer. Vouchers shall be on the forms supplied by Avfuel, dated, imprinted with the Customers plate and a valid credit card showing the cardholder's name and credit card number; vouchers shall contain the registration number of the aircraft being serviced, shall specify and describe the quantities of goods delivered and/or services rendered, and shall show the dollar amount of the sale and all applicable taxes. Vouchers must be Customer's Initials Page I of 3 Revised 06/01/92 Form CC I signed by the cardholder or Authorized User. Customer is responsible for identifying and verifying the presenter as the cardholder or Authorized User, and shall require an additional source of identification of the presenter. The presenter shall be given a copy of the credit voucher at the time of sale. (b) Except in Branded Card Transactions (as defined in this Agreement), the current telephone number and current billing address of both the cardholder and Authorized User must be legibly printed or typed upon the voucher, and Customer shall inform the presenter that cardholder will be billed directly by Avfuel and not by the credit card issuer. (c) Statement copies of all vouchers shall be forwarded to Avfuel weekly, but not later than ten days after transaction date. Customer must keep copies of vouchers and summaries for a period of one year and supply Avfuel with duplicates if requested. (d) Customer acknowledges receipt of and agrees to observe Avfuel's current instructions for recording and processing credit card transactions. Avfuel reserves the right to amend any and all instructions and to add new instructions from time to time, and Customer agrees to be bound by all such amendments and new instructions. Avfuel also reserves the right to issue new or revised forms and imprinters from time to time, and to issue instructions regarding their use to be effective upon five (5) days prior written notice. Unauthorized card lists shall be effective upon receipt by customer and Avfuel reserves the right to make additions and deletions to such list by telephone. (e) Customer shall be solely liable and responsible for remittance of all taxes to the proper authorities regardless of whether charged to purchaser. Avfuel does not assume responsibility for the payment of any tax applicable to sales or other transactions resulting in credit card accounts receivable and Customer shall defend, indemnify and hold harmless Avfuel from any such claims. 4. AVFUEL'S CHARGE BACK RIGHTS: Without limiting the generality of other provisions of this Agreement pertaining to charge backs, it is specifically understood and agreed that Avfuel may decline to accept or, if accepted, may subsequently charge back to Customer any vouchers: (a) Where any of the required information is omitted or illegible; (b) Which are imprinted with an expired credit card or with a credit card listed on the then current lost, stolen or unauthorized card list; (c) Covering purchases not authorized by the cardholder or involving fraud or any misuse of a credit card by the purchaser with or without Customer's knowledge; (d) Covering transactions which have not been pre -authorized or approved, in accordance with applicable instructions; (e) Covering any transaction or series of related transactions (constituting in the reasonable opinion of Avfuel a single sale transaction) the aggregate face amount of which exceeds any of the single sale limitations set forth in this Agreement; (f) Pertaining to any transaction where there is a failure on the part of Customer to perform services or furnish products as agreed with purchaser or which becomes the subject of a dispute between Customer and purchaser; (g) Representing any sales transaction in which the cardholder or Authorized User has not received his copy of the voucher; (h) For which Customer has received or will receive any payment or reimbursement from any person other than Avfuel; provided, if a down payment or trade-in is accepted in connection with the same transaction, a copy of the sales invoice showing the amount thereof shall be attached to the voucher, and the voucher shall not exceed the balance due. (i) Where Customer has granted any right of ownership or security interest in favor of any person other than Avfuel; (j) Which are presented by Customer to Avfuel more than ten (10) days after the transaction date; (k) Covering transactions occurring after the date of expiration or termination of this Agreement; Created by any person other than Customer, or in any transaction other than a transaction in which Customer has sold merchandise or services to a purchaser presenting his credit card for use in payment therefor; (m) Bearing a billing address for the cardholder or Authorized User, which is outside the territorial limits of the United States or the Dominion of Canada; (n) Representing oil company credit card transactions (other than Branded Card Transactions) not paid by the cardholder within ninety (90) days after assignment to Avfuel; provided, Avfuel has billed the cardholder and attempted to collect the amount thereof without resort to litigation, or (o) In any other manner not in conformity with this Agreement or with Avfuel's instructions for recording and processing credit card transactions. In the event charge backs exceed any credit balance in Customer's fuel purchase account then carried by Avfuel, Customer agrees to pay such amounts within three (3) days after notice that such amounts are due. Upon reimbursement, title to the subject voucher and all indebtedness represented thereby shall pass to Customer. If any funds come into Avfuel's possession for any voucher, which has previously been charged back to Customer, Avfuel will promptly credit the full amount thereof to Customer's account. Avfuel's charge back rights and rights of recourse against Customer shall survive the termination of this Agreement. 5. SALE LIMITATIONS AND EXCLUSIONS: Cash advances may not be charged on any card. Lessons, aircraft rental, charter, and aircraft parts and accessories not incorporated in repairs or mounted upon the aircraft may not be charged on the Avfuel Card. A single sale to any Customer's Initials Page 2 of 3 Revised 06/01/92 Form CC I one purchaser resulting in one or more than one credit card voucher shall be specifically limited as follows (a) To a total of $250 for miscellaneous services including but not limited to such items as tie downs, catering, aircraft storage, pilot supplies, charts, repairs and other services on the Avfuel Card or Honor All cards (other oil co. credit cards). (b) To quantities of fuel and lubricants not greater than the useful capacity of the aircraft, and shall only include fuels from stocks delivered by and purchased from Avfuel; and (c) To an aggregate total of $2,000.00 for verified Honor All transactions. BRANDED CARD TRANSACTIONS: Branded Card Transactions are credit sales under a BRANDED PROGRAM AGREEMENT in effect between the parties from time to time where the Customer is required to honor valid branded credit cards issued by Avfuel or its Designee named therein, and may honor credit cards for which the branded card issuer has interchange agreements. Avfuel shall accept vouchers representing valid Branded Card Transactions at face value less such discount as may from time to time be applicable thereto under any arrangement then in effect between issuer and Avfuel or as otherwise agreed. Customer acknowledges receipt of issuer's instructions for recording and processing Branded Card Transactions and agrees to be bound by same and by all amendments thereto. This Section 6 shall not apply to Acceptable Charges, which are not Branded Card Transactions. In addition: (a) All Branded Card Transactions shall be governed by the card issuer's instructions as well as the terms and conditions of this Agreement, and in case of conflict, issuers instructions shall prevail; and (b) Avfuel shall have all rights of recourse and all charge back rights against Customer, which the credit card issuer may have or exercise against Avfuel, in full subrogation. 7. TERM/I'ERMINATION: The term of this Agreement shall coincide with the term of the AFSA which is in effect between the parties and any and all renewals and extensions thereof, and termination of that agreement by expiration or other wise, without a new or renewal AFSA having taken effect between the parties, shall automatically terminate this Agreement. Avfuel shall have the right to terminate this Agreement on thirty (30) days prior written notice to Customer. Termination of this Agreement shall not automatically terminate the AFSA. NOTICES: The Standard Provision of Contractors from the AFSA are incorporated herein by reference and made a part of this Agreement. Customer's Initials Page 3 of 3 Revised 06/01/92 Form CCI Sep -28-01 13:31 AVFUEL CORPORATIOn 816 822 9559 P.01 AVFUEL CORPORATION EXCESS THIRD PARTY LIABILITY INSURANCE PROGRAM APPLICATION Avfuel Corporation 47 West Ellsworth Road Ann Arbor, Ml 48108 To Whom It May Concern: I have been advised that you have arranged an excess third party liability insurance program that provides excess liability coverage in the amount of 550,000,000 for jet fuel and aviation gasoline Lu cover Avfuel Corporation (Avfuel) airport dealers/customers regarding all operations necessary or incidental to refueling of aircraft using Avfuel supplied aviation fuels. I wish to participate in this insurance program, and hereby state that I agree to and I am in compliance with the following minimum insurance requirements. I have been informed that the excess insurance policy program contains requirements that each insured dealer/customer must maintain in effect primary premises and products/completed operations liability insurance coverage of not less than $1,000,000 CSL and name Avfuel Corporation as additional insured with respect to Premises and Products/Completed Operations. I understand that excess liability coverage will be afforded to me only to the extent that I maintain insurance to comply with the above requirements. I further understand that the excess liability insurance afforded to me will be voided if any fuel supplied by anyone other than Avfuel is commingled with the Avfuel supplied aviation fuel. I understand that it is my responsibility to report to Avfuel any incident, together with the details of the incident, involving the use of Avfuel supplied aviation fuels, that involves bodily injury to third panics and/or damage to property of others, even if such potential claim is not expected to exceed the limits of my primary insurance policy. Company 2. Address: ----- 3. City:— State:_ 4. Number of years in business: ��p'--- 5. Name & Location of airport: 6. Annual gallons dispensed: Jet Fuel: Avgas: 7. Make/Modcl of largest general aviation aircraft fueled:_ Total Seats of largest general aviation aircraft fueled: 8. Name of present flul products insurer: 9. Policy expiration date: -- 10. Liability limits of products/completed coverage: 11. I las operator had any fuel related products losses in the last live years?_•_ _ 12. Pleaselude a certilicat of insurance showing req tred coverages. Sign to t� Title. ��late:_ , Sep -28-01 13:31 AVFUEoCORPORATIOn 816 822 95 P_O1 AVFIJEL CORPORATION EXCESS THIRD PARTY LIABILITY INSURANCE PROGRAM APPLICATION Avfuel Corporation 47 West Ellsworth Road Ann Arbor, MI 48108 fo Whom It May Concern: I have been advised that you have arranged an excess third party liability insurance program that provides excess liability coverage in the amount of $50,000,000 for jet fuel and aviation gasoline to cover Avfuel Corporation (Avfuel) airport dealers/customers regarding all operations necessary or incidental to refueling of aircraft using Avfuel supplied aviation fuels. I wish to participate in this insurance program, and hereby state that I agree to and I am in compliance with the following minimum insurance requirements. I have been informed that the excess insurance policy program contains requirements that each insured dealer/customer must maintain in effect primary premises and products/completed operations liability insurance coverage of not less than $1,000.000 CSL and name Avfuel Corporation as additional insured with respect to Premises and Products/Completed Operations. I understand that excess liability coverage will he afforded tome only to the extent that I maintain insurance to comply with the above requirements. I further understand that the excess liability insurance afforded to me will he voided if any fuel supplied by anyone other than Avfuel is commingled with the Avfuel supplied aviation fuel. I understand that it is my responsibility to report to Avfuel any incident, together with the details of the incident, involving the use of Avfuel supplied aviation fuels, that involves bodily injury to third parties and/or damage to property of others, even if such potential claim is not expected to exceed the limits of my primary insurance policy. I. Company Name: 2. Address:_ 3. City:— S4tte:_ 4. Number of years in business: �tp-- 5. Name & Location of airport: Avgas: 6. Annual gallons dispensed: Jet Fuel:----- 7. Make/Modcl of largest general aviation aircraft fueled:_ � Total Seats of largest general aviation aircraft fueled: 8. Name of present fuel products insurer: 9, Policy expiration date:________________ 10. Liability limits of products/completed coverage: I I . I las operator had any fuel related products losses in the last five years?—,_ _ 12. Please include a certificate of insurance showing required coverages. Signature: — J)ate:— I... - Sep -28-01 10:37 AVFUE CORPORATIOn 816 2 9559 P_OZ AVEL CORPORATION AVTRIP AGREEMENT This Agrcrnent is between AVFUEL CORPORTION and . located in (DEALER). (Company Name) (City, State) WIIEREAAVFUEL CORPORATION is Initiating an Incentive program (Avnur) pursuant to which pilots purchasing the goods and services of the DEALER may be entitled to erne financial benefits; and WIIEAEAS, AV EL CORPORATION has agreed to undertake the administration of and to ma kct the Syria ra0@AM on a nation de basis. In order to create inxntives for paces 1 aniclpate In the AVIRrt rAOCMM: and WHEREAS, the DEALER f agreed to provide certain adminimative and other assistance to AVFUEL in order to NOW, THEREFORE, In constdetion of the mutal promises hcrcin continued, and other good and valuab/cons[dcm,diereceiptandsufficiencyofwhichare hereby acknowledged, the panies here g cc as fellows: 1. AVFUELCORPORATIONre:ere right m amend, suspend, or tenninrte Ns program et a,y timso reserves the right to terminate any individual's participation at any time form seof the AVTRIP cad, violators of the rules of the profor a period of 12 consecutive months. 2. AVFUEL CORPORATION agrees to undertake dministration othee AVr AvtRR fIOGRAM, all of which changes are agreed to\'ran',d1mgNe DEALER. 3. AVFUEL CORPORATION agrees to market the AAM nationwide,to AVTRtr PROGRAM. 4. DEALER agrees to train and/or familiarize its personnel with the order to encourage pilot participation in the ayswr PROGRAM. to timely Inform the DEALER of any changes to the and transient pilots to encourage participation by such pilots in the and to prominently postwritten materials relating to the AV,RJP rRUGRA,t, in 5. DEALER ape" to administer the AvTRWPROCI4M In accordance wi a folio ing guidelines: a) A participating pilot will be entitled to a minima ftwo points for each allon of fuel purchased by such pilot Fuel purchase discounts, if granted by the DEALER may not be based up prUcrydion (or lack the by any pilot in the AVtRrr raocPAM. b) If offered by the DEALER (at its sole dis Zion), a participating pilot will be entitle to a minimum of one point for each dollar ofserviccs and/or parts purchased by such pilot 9cowg5 on service and/or pans, Ifgramrd by d1tpEALER. may not be based upon participation (or lack thereof) by any pilot in the AYTRirr M. c) At least once every two weeks, a DEALER will submit to AVFUEL CORPORATION all do entation and funds to effect the Avrw raocaaar, including enrol! fonts, evidence of points earned by pilots, and DEALER contnbuli tp of 5.02 for each gallon of fuel and SOT for lath dollar of servicesd/or pars purchased m the AVIt1R ratwaAM. b. AVFUEL CORPORATION 2. The DEALER agree, that, AVTRIP PROGRAM may bet CUSTOMER On an annud bus an accounting OfAVrwr YROCRAM funds LTION DEALERS. rto continue its participation in the Av,atr PROGRAM. DEALER must remain in AVFUEL DEAL; upon receipt by AVFUEL CORPORATION, a least 90 days In advance, of written notice of such Print Name The rtfuetq& date of this Agreement is AVFUEL CORPORATION: reviewed by an W ithdrnwals from the Sep -28-01 10:37 .AVFUEL CORPORATIOn 816 822 9559 P.03 - ' ._ •-.� .nnu viornion fFIX J. 1347J2 P. 01 STORAGE TAM CO)WLZANCR CXRTZTICATZO)1 CCCA tt flfl r rices_________________ 1. T=IZ8 PA.CILZTY Za =QVIPPC flfl 011L= T►XR6:fl rpOollo aTORJ1ps AT" 110 (IT no. PLUn COIpL[f 4ola2011 fat) 2. Is TYia ivkeflSTy COIwLnft trzsrl zsR 19-22-1e mtpfl�tX17m flO eTAU (oat) RSMATIop. NO 'ar al4rxuTDRs: _ • •,mil alal�r .O / 'Pies,. nth arY .Bear. flu ow one d this a at aught d �� m n lfr 1n eomwlks. dt.asa return this form to Awf'ud Immedlatdy, CllMery f ocatlons and/e► aN�s. con $ep-28-01 10:37 AVFUEk CORPORATIOn 816 8 2 9559 V y 1 v.orntt,n fra M0. 134W712 P.03 P.01` STOnGS TAxx CO1WLtA1iC8 CSRTZFXCJ q COW Afs)( tpmQ i PROtrW . Wax, 1. TRIS 1kCzLITY I$ tot7IDDn WI T$ 0SMY YAWS : !< a*O1JMD Sys 8 YfeQ $0 (XI' NO. fling CWWLXn QORST=oft SI) 2 SSTOA Ga sacryy wwJn flfl Tfl 12.22-99 DlrD last (Ott) 1ttCOLI►n0mq, urn NO egcaIr ="AS=M .n nfl t SZOMTOftn; (+rtwa twat) Dan SIQtt teas. cacti SY 0""$Q fill owl oft d lifts tr a of appropriate to verily comgiana. 'mast return dtis form to Arfwtl Immtdlat ft. dellrery locatlofs afd/er tanks. L AVFUEL CORPORATION The Nation's Leading Independent Supplier of Aviation Fuels September 27, 2001 James Nicholson City of Fayetteville 4500 South School Ave., Suite 7 Fayetteville, AR 72701 Dear Mr. Nicholson: Enclosed you will find a copy of the Aviation Fuel Supply Agreement, Credit and Charge Card Acceptance Agreement and Branded Program Agreement. When you have reviewed them, please sign in the places indicated and return them to: Suzy Jago Avfuel Corp. 1941 Navajo Circle Abilene, TX 79602 Lft Nich Please give Steve Falon (605-332-3932) a call, if you have any questions. Suz Sincerely, AVFUEL CORPORATION 3. Suzy o 1941 Navajo Circle, Abilene, Texas 79602, (915) 673-8838, (800) 351-1393, FAX: (915) 672-1410 CORPORATION CORPORATION The Nation's Leading Independent Supplier of Aviation Fuels September 27, 2001 James Nicholson City of Fayetteville 4500 South School Ave., Suite 7 Fayetteville, AR 72701 Dear Mr. Nicholson: Enclosed you will find a copy of the Aviation Fuel Supply Agreement, Credit and Charge Card Acceptance Agreement and Branded Program Agreement. When you have reviewed them, please sign in the places indicated and return them to: Suzy Jago Avfuel Corp. 1941 Navajo Circle Abilene, TX 79602 Please give Steve Falon (605-332-3932) a call, if you have any questions. Sincerely, Avru®. CORPORATION 1941 Navajo Circle, Abilene, Texas 79602, (915) 673-8838, (800) 351-1393, FAX: (915) 672-1410 AAVFUEL CORPORATION The Nation's Leading Independent Supplier of Aviation Fuels September 27, 2001 James Nicholson City of Fayetteville 4500 South School Avenue, Suite F Fayetteville, AR 72701 Dear Mr. Nicholson: It is Avfuel Corporation's policy to grant credit to the Federal Government, State, City, or a Government Airport Board Authority upon return receipt of a letter from the entity it represents. This letter should state that the relevant governing entity is taking responsibility for the debts incurred. Enclosed is a sample letter for your review, please have the appropriate letter typed and signed by an official (publicly elected) on Federal, State, or City letterhead. Additionally, I have forwarded a credit agreement for your review and signature. Please fax this information back to me at your earliest convenience. If you have any questions or concerns, please call me at (800) 521-4106. Sincerely, AVFUEL CORPORATION Ronald L. Cagle Credit Manager Enclosure rlc\gaba[rkml P.O. Box 1387, Ann Arbor, Michigan 48106-1387 (734) 663-6466, (800) AVFUEL4 (283-8354) 47 W. Ellsworth, Ann Arbor, Michigan 48108-2278 FAX: (734) 663-1681, www.avfuel.com •- • LVAORPORATIONVFUEL The Nation's Leading Independent Supplier of Aviation Fuels September 27, 2001 James Nicholson City of Fayetteville 4500 South School Avenue, Suite F Fayetteville, AR 72701 Dear Mr. Nicholson: It is Avfuel Corporation's policy to grant credit to the Federal Government, State, City, or a Government Airport Board Authority upon return receipt of a letter from the entity it represents. This letter should state that the relevant governing entity is taking responsibility for the debts incurred. Enclosed is a sample letter for your review, please have the appropriate letter typed and signed by an official (publicly elected) on Federal, State, or City letterhead. Additionally, I have forwarded a credit agreement for your review and signature. Please fax this information back to me at your earliest convenience. If you have any questions or concerns, please call me at (800) 521-4106. Sincerely, AVFUEL CORPORATION C Ronald L. Cagle Credit Manager \rkm Enclosure rlc\gaba[rkmi P.O. Box 1387, Ann Arbor, Michigan 48106.1387 47 W. Ellsworth, Ann Arbor, Michigan 48108-2278 (734) 663-6466, (800) AVFUEL4 (283-8354) FAX: (734) 663-1681, www.avfuel.com 0 • Letter to be used if Government Body is to be billed directly (Please Put on City, Council, State Letter Head) (to be signed by authorized official of said body) Date Mr. Ronald Cagle Credit Manager AVFUEL CORPORATION 47 W. Ellsworth Road Ann Arbor, Michigan 48108 Dear Mr. Cagle: This letter is to confirm that bills for the below captioned airport are the responsibility of this governmental body and we are to be billed directly. The billing address, contact name, and phone number are as follows: • Re: Company Address: • Contact Name: Company: Address: Phone Number: Enclosed, please find your executed Credit Agreement. Please call if you have any questions. Thank you. Sincerely, (Name) (Title) Enclosure: Avfuel Credit Agreement direct I 0 43. 147-o1-8 Letter to be used if Government Body is to be billed directly (Please Put on City, Council. Slate Letter Head) (to be signed by authorized of icial of said body) Date Mr. Ronald Cagle Credit Manager AVFUEL CORPORATION 47 W. Ellsworth Road Ann Arbor, Michigan 48108 Dear Mr. Cagle: This letter is to confirm that bills for the below captioned airport are the responsibility of this governmental body and we are to be billed directly. The billing address, contact name, and phone number are as follows: • Re: Company c Yz CV(Ater tst . Address: t'%SOV S. S4t S1-i c.. F FtiT rlr11 ,P. 12-'1O • Contact Name: _____S _ ko-�so_ Company: (}H q �a14'eJc11-e Address: e.bovt Phone Number: mot-'j1$r'jby3 Enclosed, please find your executed Credit Agreement. Please call if you have any questions. Thank you. Sincerely, (Name) J (Title) Enclosure: Avfuel Credit Agreement Letter to be used ifGovernment Body is to be billed directly (Please Put on City, Council. State Letter Head) (to be signed by authorized official of said body) Date Mr. Ronald Cagle Credit Manager AVFUEL CORPORATION 47 W. Ellsworth Road Ann Arbor, Michigan 48108 Dear Mr. Cagle: This letter is to confirm that bills for the below captioned airport are the responsibility of this governmental body and we are to be billed directly. The billing address, contact name, and phone number are as follows: • Re: Company Address: • Contact Name: Company: Address: Phone Number: Enclosed, please find your executed Credit Agreement. Please call if you have any questions. Thank you. Sincerely, (Name) (Title) Enclosure: Avfitel Credit Agreement FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR 4500 School Ave., Suite F Fayetteville, AR 72701 -------------- TO: Dan Coody, Mayor Fayetteville City Council Members FROM: Gary Dumas, Utility Services Director/Interim Airport Manager THRU: Staff Review Committee DATE: September 19, 2001 SUBJECT: AVFUEL Corp, Inc. - Aviation Fuel Contract Background: In July of 2001, the City Council approved a temporary, ninety (90) day contract with Phillips 66 Company, the existing supplier, to supply aviation fuel for Drake Field. The temporary nature of the contract was due to the closing of the existing Fayetteville Air Service operation and the limited time available to transition to City operated aircraft fueling services. The ninety (90) day term provided the time necessary for the preparation, receipt, and examination of bid proposals from other fuel supplier companies. Bid Results: Requests for bids were distributed to seventeen (17) fuel supplier/contractors and bids were received from four (4) companies: Phillips 66, AVFuel Corp., British Petroleum (BPAir), and Exxon. The bids were compared to determine each company's effective delivered price per gallon on August 24, 2001, based on the wholesale price per gallon plus airport FBO overhead for "into -plane" costs. Overhead costs associated with the bid include the lease of re-fueler trucks, truck maintenance costs, and credit card surcharge rates. The bids were compared using a target monthly fuel sales amount of 40,000 gallons. (25,000-JetA / 15,000 Avgas) The airport uses this target sales rate to determine the retail price of fuel. AVFuel Corp., provided the responsive low bid for the services needed at Drake Field. The bid from Exxon did not meet the bidding criteria and therefore determined to be a non -responsive bid. Attached for your information are results of the bid comparison of the three (3) responsive bidders. The term of the proposed contract with AVFuel Corporation is for three (3) years, subject to approval by the City Council the second (2nd) and third (3rd) years contingent on proper budget appropriation and consent of the contractor. c.c Du Airport administration has reviewed Avfuel Corp's. operation and has determined that they will be able to provide the higher standard of service we desire from our aviation fuel supplier in terms of the quality of products and equipment. The company provides assistance with advertising & promotion to their branded dealer FBO's. In addition, we anticipate that the expected lower fuel costs will benefit the airport's fuel customers, and the growth of Drake Field's FBO operation. Requested Action: Staff requests that the Airport Board make a recommendation of approval of bid acceptance to the City Council. GD/jn Attachments: Bid results FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR AIRPORT MANAGEMENT GARY DUMAS. ENVIRONMENTAL SERVICES DIRECTOR I AIPRORT MANAGER INTERIM TO: Dan Coody, Mayor Fayetteville City Council Members FROM: Gary Dumas, Utility Services Director / Interim Airport Manager THRU: Staff Review Committee DATE: September 19, 2001 SUBJECT: AVFUEL Corp, Inc. - Aviation Fuel Contract 4500 School Ave., Suite F Fayetteville, AR 72701 501.715.7644 Background: In July of 2001, the City Council approved a temporary, ninety (90) day contract with Phillips 66 Company, the existing supplier, to supply aviation fuel for Drake Field. The temporary nature of the contract was due to the closing of the existing Fayetteville Air Service operation and the limited time available to transition to City operated aircraft fueling services. The ninety (90) day term provided the time necessary for the preparation, receipt, and examination of bid proposals from other fuel supplier companies. Bids were received from four (4) aviation fuel suppliers: Phillips 66, AVFuel Corp., British Petroleum (BP), and Exxon. AVFuel Corp., provided the responsive low bid for the services needed at Drake Field. The term of the contract is for one (1) year, with two (2) one (1) year extensions. Airport administration has reviewed Avfuel Corp's. operation and feels confident that they will be able to provide the higher standard of service we desire from our aviation fuel supplier in terms of the quality of products and equipment. In addition, we anticipate that the expected lower costs will benefit the airport's fuel customers, and the growth of Drake Field's FBO operation. Budget Considerations: Budget Adjustment attached. Requested Action: Staff recommends approval of the attached resolution. GD/jn Attachments: Fuel Supplier Contract, Re-fueler Truck Lease, and Agreements. • AvFuEL CORPORATION • AVIATION REFUELER LEASE AGREEMENT Summary of Terms and Conditions , Avfuel Number/Description Vin Number Monthly Rental #3040/1991 Ford 3000 Gallon A07138 $900.00 Customer. Fayetteville Municipal Airport Airport Location: Fayetteville, AR 4500 S School Ave Suite F Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement pj AvFUEL ColtwonAmox: a. -: •' The reference date of this Agreement is; 10/9/01 effective date is such date or H' 7 : 10 • ,N MM �F 1. EQUIPMENT. Avfuel agrees to deliver and Lease the foregoing Equipment to Customer for its sole use, subject to the following terms and conditions. 2. RENTAL. Customer hereby agrees to pay Avfuel in advance the monthly rentals shown above, prorated for any partial month. Avfuel may increase the rentth... L.11 JU1ease upon 89 days written notice. Or.CC. am v.b.U.1 1,0 3. TERM: This lease is for the term of one (1) year commencing on the effective date set forth above, and shall thereafter automatically renew month -to -month unless either party shall give notice of intention to terminate. Notice to terminate shall be given in writing not less than thirty (30) days prior to the termination date; which shall be specified in the notice. The foregoing notwithstanding, if there is in effect between the parties an Aviation Fuel Supply Agreement rAFSA"), this Lease shall terminate, without notice, as of the date the AFSA expires or is terminated in accordance with its terms unless a new or renewal AFSA shall have taken effect between the parties. If Avfuel increases the rent as allowed in section 2, Customer may notify Avfuel no less than 15 days before the increase is to take effect that it no longer wishes to rent the equipment if the rate increase goes into effect If Avfuel rescinds the rate increase, the lease continues in effect at the then in effect rates, if it does not rescind the increase, the lease expires on the date the increase goes into effect 4. RETURN OF EQUIPMP►fl'.Upon termination of this Agreement Customer shall dalivwk-'id return the Equipment to Avfuell( .. . _. . i8 ' in as good condition as when Customer received it, normal wear and tear accepted. Failure to return the Equipment shall be deemed a breach of this Lease. Notwithstanding such breach, Avfuel may, without foregoing any other remedies available to it, treat the Agreement as continuing from month to month under the same terms and conditions as were in effect at the end of the lease term. Nothing herein shall require that Customer perform the repair or maintenancp obligation of Avfuel under the provisions of Section 7 below Pj4V%t .L t1 lot 9cLr L0rt %C -c00. Sptwj. V 5. TITLE To: EQUIPMENT. Avfuel warrants that it has all necessary rights to lease said Equipment to Customer. Further, the parties agree that as between themselves, Avfuel has title to the Equipment and Customer shall keep the Equipment free of liens and shall not do or permit anything to be done that will prejudice the title of Avfuel, or it's rights in the Equipment Each item of Equipment shall bear a legend denoting it as the property of Avfuel and Customer shall not remove or deface that legend under any circumstances. Revised Form RI Page 1 or3 11/96 AVFUEL CORPORATION Rss. /47 o iB AVIATION REFUELER LEASE AGREEMENT Summary of Terms and Conditions , Aufuel Number/Description Vin Number Monthly Rental #3040/ 1991 Ford 3000 Gallon A07138 $900.00 Customer. Fayetteville Municipal Airport Airport Location: Fayetteville, AR 4500 S School Ave Suite F Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. ACCEPTED BY: AVFUEL CORPORATION: Customer Si a re By: Print Nam its: 1�� (r" Its: C. , The reference date of this Agreement is; 10/9/01 effective date is such date or TERMS AND CONDITIONS 1. EQUIPMENT. Avfuel agrees to deliver and Lease the foregoing Equipment to Customer for it's sole use, subject to the following terms and conditions. 2. RENTAL. Customer hereby agrees to pay Avfuel in advance the monthly rentals shown above, prorated for any partial month. Avfuel may increase the rent upon &e days vir'tt notice. Of.ee.. �ww..-till {,(�/,/ "� to \ 3. TERM: This lease is for the term of one (1) year commencing on the effective date set forth above, and shall thereafter automatically renew month -to -month unless either party shall give notice of intention to terminate. Notice to terminate shall be given in writing not less than thirty (30) days prior to the termination date, which shall be specified in the notice. The foregoing notwithstanding, if there is in effect between the parties an Aviation Fuel Supply Agreement ('AFSA"), this Lease shall terminate, without notice, as of the date the AFSA expires or is terminated in accordance with its terms unless a new or renewal AFSA shall have taken effect between the parties. If Avfuel increases the rent as allowed in section 2, Customer may notify Avfuel no less than 15 days before the increase is to take effect that it no longer wishes to rent the equipment if the rate increase goes into effect. If Avfuel rescinds the rate increase, the lease continues in effect at the then in effect rates, if it does not rescind the increase, the lease expires on the date the 'creasegoes into effect. 4. RETURN of EQuiPIt��Upon termination of this Agreement Customer shall diver ' return the Equipment to Avfuellt drp nfh..nj,r 1I .� 14icb at,:1.r'a_n_ gam( -in as good condition as when Customer received it, normal wear and tear accepted. Failure to return the Equipment shall be deemed a breach of this Lease. Notwithstanding such breach, Avfuel may, without foregoing any other remedies available to it, treat the Agreement as continuing from month to month under the same terms and conditions as were in effect at the end of the lease term. Nothing herein shall require that Customer perform the repair or maintenancp obligaonfPf Avfue nder the provisions of Section 7 below PNMZ.4 pll` b< ➢cspon>;tba te -Sest.4 pu. ,u' .t 5. TITLE To: EQUIPMENT. Avfuel warrants that it has all necessai4 rights to lease said Equipment to Customer. Further, the parties agree that as between themselves, Avfuel has title to the Equipment and Customer shall keep the Equipment free of liens and shall not do or permit anything to be done that will prejudice the title of Avfuel, or it's rights in the Equipment Each item of Equipment shall bear a legend denoting it as the property of Avfuel and Customer shall not remove or deface that legend under any circumstances. Revised Fonn RI Page! of 3 11/96 71 7 r• • r Rf=s,lv,01-e USE. The Equipment shall be used solely by Customer or its representatives at the above airport, solely for handling aviation fuels supplied to Customer by Avfuel and shall not be moved from said airport nor operated on any public road without the prior written consent of Avfuel. No fuel delivered by any other supplier shall be introduced into the Equipment. Customer will comply with all laws, ordinances and regulations applicable to the possession, operation or use of the Equipment and will demonstrate compliance upon request. bAct I, I �1 aef..r.1 leea MAINTENANCE. tars 4ta Wi %'t le µLt t' ¢1 IkLt k cI pn.oj>o4al> C 7.1 Except as noted in 7.3 below, the Customer will maintain the Equipment in a con ition equivalent to that as of e day of this Lease Agreement, normal wear and tear excepted, and, to that end, will, provide all preventative maintenance (including but not limited to lubrication, oil and filter changes, etc.), repairs, an replacement parts as are necessary to preserve the Equipment in good operating condition and in compliance and in conformity with all laws, rules, regulation, and industry standards which are applicable to the operation of refuelers. Customer shall keep complete and accurate maintenance records and AvFUEL shall be entitled to inspect the Equipment and the maintenance records at any time during regular business hours. At AVFUEL'S option, any item of repair or maintenance which would be the responsibility of Customer may be performed by AVFUEL and billed back to Customer as additional rent. 7.2 Customer shall be responsible for all tire maintenance, repair, and replacement CHANGING A TIRE ON A REFUELER IS VERY DANGEROUS AND MUST NOT BE ATTEMPTED BY UNTRAINED PERSONNEL. CUSTOMER AGREES THAT IT WILL PERMIT TIRES TO BE CHANGED ONLY BY AN OUTSIDE CONTRACTOR WHO IS PROFESSIONALLY TRAINED TO DO SUCH WORK. 7.3 Except as noted in 7.5 below, Avfuel shall be responsible for the following repairs when, in its opinion, repair is necessary: overhauls or replacement of the engine, transmission, differential, or belly valve. Avfuel shall be permitted access to the Equipment at any reasonable time in order to perform the repairs and modifications, which are its obligation hereunder. Repairs and maintenance to be performed by Avfuel shall be completed within a reasonable time after notice. Avfuel assumes no responsibility for loss of use or any other items of ancillary damage which may be caused by or result to customer by reason of the fact that the equipment becomes inoperable. 7.4 Customer shall not make any alterations or modifications to the Equipment of any kind including but not limited to painting, mounting of radios or antennas, applying decals or lettering without the express written consent of Avfuel. 7.5 Customer shall promptly notify of the need for any repair or maintenance which is required and which is not the Customer's responsibility. If such repair or maintenance is required as the result of intentional conduct, negligence, or failure to perform repair or maintenance on the part of Customer or any of Customer's agents or employees, Customer shall be liable for all costs associated with performing such repairs and/or maintenance. 8. WARRANTIES. AVFUEL MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING DEFECTS IN MATERIAL, WORKMANSHIP, DESIGN, CAPACITY, OR FITNESS OF THE EQUIPMENT FOR ANY PURPOSE, NOR WHICH EXTEND BEYOND THE DESCRIPTION OF THE EQUIPMENT WHICH APPEARS AT THE BEGINNING HEREOF. 9. "TAXES AND OTHER CHARGES'. The Customer shall pay all taxes, assessments, fees and similar charges (the "Taxes") which are imposed by any federal, state or !ocal governmental agency or by any airport authority (the "Taxing Authorities") based upon leasing, delivery, use or sale of the Equipment (including, without limitation, sales taxes, use taxes, registration fees, transfer taxes or similar charges), excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the lessor or seller collect the Taxes from the lessee or purchaser at the time of lease or sale, then AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitled to an exemption from any Taxes which the Taxing Authority requires to be collected by the lessor or seller, then, in order to permit AVFUEL to not collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates with respect to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Customer Initial Form Pt Pagc 2 of 3 ReviscE 11/96 • r Res.lµ^1-01 p Accordingly, if, subsequent to the issuance of any invoice, the Taxing Authority or AVFUEL advises the Customer of additional Taxes payable with respect to that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customer's indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxes which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Equipment or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is required under applicable law to collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 10. EVENTS OF DEFAULT. The following are Events of Default: Failure to pay when due any rental or other sum for which Customer is obligated hereunder; the failure of Customer to observe or perform any other obligations or covenants contained herein or in the AFSA currently in force between the parties hereto; Customer's use of leased equipment for dispensing petroleum products purchased from any one other than Avfuel; the voluntary ruing by Customer seeking protection from creditors under the United States Bankruptcy Code or under state laws designed for the protection of debtors; the adjudication of a court or tribunal that Customer is insolvent; the assignment of Customer's assets for the benefit of creditors; the appointment of a trustee, receiver, or other representative to control or operate all or a substantial part of Customer's property; the occurrence of any event or events which, in the sole opinion of Avfuel, would have a material adverse effect upon the ability of Customer to meet its future obligations hereunder. 11. RIGHTS ON DEFAULT. IN THE EVENT OF DEFAULT, AVFUEL MAY, UPON -ORAL 0 WRITTEN NOTICE TO CUSTOMER, DECLARE THIS AGREEMENT TERMINATED AND CANCELED AS OF THE DATE OF SUCH DEFAULT OR AS OF A SUBSEQUENT DATE SPECIFIED IN AVFUEL'S NOTICE OF TERMINATION TO CUSTOMER. In such event, Avfuel or its agents or employees may, without further notice and without legal process enter onto any facility of Customer for the purpose of repossessing any item of Equipment or any personal property of any description owned by Avfuel, and Customer shall use its best efforts to assist Avfuel in such repossession. Pursuit of the foregoing shall not preclude pursuit of any other remedies provided by law, nor constitute a waiver of any amount due by Customer hereunder or of any damages accruing by reason of the breach of any of the terms or conditions contained herein. No waiver of any breach hereof shall be deemed to constitute a waiver of any other breach hereof, and forbearance to enforce a remedy herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default. Aviation fuels on board repossessed Equipment will become the property of Avfuel, and credited against any amount owed Avfuel by Customer at that day's market price. 12. INSURANCE. Prior to the effectiveness of this Agreement, Customer shall secure at its cost, the following insurance and furnish Avfuel a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer; and (4) physical damage coverage covering the value of the '.eased equipment Insurance policies shall be issued by insurance companies acceptable to Avfuel, shall name Avfuel as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) days written notice to Avfuel prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by Avfuel. 13. INDEMNIFICATION. Customer agrees to indemnify and hold Avfuel and/or the owner of the Equipment harmless from and against any and all claims, liabilities, losses, expenses (including attorneys fees), obligations and causes of action for injury to or death of any and all persons, or for damage to or destruction of any or all property arising out of or resulting from the condition, existence, use or maintenance of the Equipment G XCc s -, {fio,,,., y(.,` % Av PuELI t+s em.ploccs,ga. 2s(ef.A.}S, 14. The Standard Provisions of Contract of the AFSA, current edition, are incorpo ated herein by reference and are a part of this Agreement. Customer Initial Form Rl Page 3 of 3 Revised 11/96 6. UsE. The Equipment shall be used sosolely by Customer or its representatives at the above airport, solely for handling aviation fuels supplied to Customer by Avfuel and shall not be moved from said airport nor operated on any public road without the prior written consent of Avfuel. No fuel delivered by any other supplier shall be introduced into the Equipment Customer will comply with all laws, ordinances and regulations applicable to the possession, operation or use of the Equipment and will demonstrate compliance upon request. ac cnAbncc.tA'I 1 A k ` 6rJ 7. MAINTENANCE. fieRIMn1a 1.1lr (1'e IH kc.c btu pn-0'aAJ al)DC 7.1 Except as noted in 7.3 below, the Customer will maintain the Equipment in a con ition equivalent to that as of th e day of this Lease Agreement, normal wear and tear excepted, and, to that end, will, at the Customoro polo wiponso, provide all preventative maintenance (including but not limited to lubrication, oil and filter changes, etc.), repairs, and replacement parts as are necessary to preserve the Equipment in good operating condition and in compliance and in conformity with all laws, rules, regulation, and industry standards which are applicable to the operation of refuelers. Customer shall keep complete and accurate maintenance records and AVFUEL shall be entitled to inspect the Equipment and the maintenance records at any time during regular business hours. At AVFUEL'S option, any item of repair or maintenance which would be the responsibility of Customer may be performed by AVFUEL and billed back to Customer as additional rent 7.2 Customer shall be responsible for all tire maintenance, repair, and replacement CHANGING A TIRE ON A REFUELER IS VERY DANGEROUS AND MUST NOT BE ATTEMPTED BY UNTRAINED PERSONNEL. CUSTOMER AGREES THAT IT WILL PERMIT TIRES TO BE CHANGED ONLY BY AN OUTSIDE CONTRACTOR WHO IS PROFESSIONALLY TRAINED TO DO SUCH WORK. 7.3 Except as noted in 7.5 below, Avfuel shall be responsible for the following repairs when, in its opinion, repair is necessary: overhauls or replacement of the engine, transmission, differential, or belly valve. Avfuel shall be permitted access to the Equipment at any reasonable time in order to perform the repairs and modifications, which are its obligation hereunder. Repairs and maintenance to be performed by Avfuel shall be completed within a reasonable time after notice. Avfuel assumes no responsibility for loss of use or any other items of ancillary damage which may be caused by or result to customer by reason of the fact that the equipment becomes inoperable. 7.4 Customer shall not make any alterations or modifications to the Equipment of any kind including but not limited to painting, mounting of radios or antennas, applying decals or lettering without the express written consent of Avfuel. 7.5 Customer shall promptly notify of the need for any repair or maintenance which is required and which is not the Customer's responsibility. If such repair or maintenance is required as the result of intentional conduct, negligence, or failure to perform repair or maintenance on the part of Customer or any of Customer's agents or employees, Customer shall be liable for all costs associated with performing such repairs and/or maintenance. 8. WARRANTIES. AVFUEL MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING DEFECTS IN MATERIAL, WORKMANSHIP, DESIGN, CAPACITY, OR FITNESS OF THE EQUIPMENT FOR ANY PURPOSE, NOR WHICH EXTEND BEYOND THE DESCRIPTION OF THE EQUIPMENT WHICH APPEARS AT THE BEGINNING HEREOF. 9. "TAXES AND OTHER CHARGES. The Customer shall pay all taxes, assessments, fees and similar charges (the "Taxes") which are imposed by any federal, state or local governmental agency or by any airport authority (the "Taxing Authorities") based upon leasing, delivery, use or sale of the Equipment (including, without limitation, sales taxes, use taxes, registration fees, transfer taxes or similar charges), excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the lessor or seller collect the Taxes from the lessee or purchaser at the time of lease or sale, then AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitled to an exemption from any Taxes which the Taxing Authority requires to be collected by the lessor or seller, then, in order to permit AVFUEL to not collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates with respect to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Customer Initial Form RI Page 2 or3 Revised 11/96 Accordingly, if, subsequent to the issuance of any invoice, the Taxing Authority AVFUEL advises the Customer of additional Taxes payable with respect to that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customer's indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxes which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Equipment or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is required under applicable law to collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 10. EVENTS OF DEFAULT. The following are Events of Default Failure to pay when due any rental or other sum for which Customer is obligated hereunder; the failure of Customer to observe or perform any other obligations or covenants contained herein or in the AFSA currently in force between the parties hereto; Customer's use of leased equipment for dispensing petroleum products purchased from any one other than Avfuel; the voluntary filing by Customer seeking protection from creditors under the United States Bankruptcy Code or under state laws designed for the protection of debtors; the adjudication of a court or tribunal that Customer is insolvent; the assignment of Customer's assets for the benefit of creditors; the appointment of a trustee, receiver, or other representative to control or operate all or a substantial part of Customer's property; the occurrence of any event or events which, in the sole opinion of Avfuel, would have a material adverse effect upon the ability of Customer to meet its future obligations hereunder. 11. RIGHTS ON DEFAULT. IN THE EVENT OF DEFAULT, AVFUEL MAY, UPONWRITTEN NOTICE TO CUSTOMER, DECLARE THIS AGREEMENT TERMINATED AND CANCELED AS OF THE DATE OF SUCH DEFAULT OR AS OF A SUBSEQUENT DATE SPECIFIED IN AVFUEL'S NOTICE OF TERMINATION To CUSTOMER. In such event, Avfuel or its agents or employees may, without further notice and without legal process enter onto any facility of Customer for the purpose of repossessing any item of Equipment or any personal property of any description owned by Avfuel, and Customer shall use its best efforts to assist Avfuel in such repossession. Pursuit of the foregoing shall not preclude pursuit of any other remedies provided by law, nor constitute a waiver of any amount due by Customer hereunder or of any damages accruing by reason of the breach of any of the terms or conditions contained herein. No waiver of any breach hereof shall be deemed to constitute a waiver of any other breach hereof, and forbearance to enforce a remedy herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default Aviation fuels on board repossessed Equipment will become the property of Avfuel, and credited against any amount owed Avfuel by Customer at that day's market price. 12. INSURANCE. Prior to the effectiveness of this Agreement, Customer shall secure at its cost, the following insurance and furnish Avfuel a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer; and (4) physical damage coverage covering the value of the leased equipment Insurance policies shall be issued by insurance companies acceptable to Avfuel, shall name Avfuel as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) day's written notice to Avfuel prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by Avfuel. 13. INDEMNIFICATION. Customer agrees to indemnify and hold Avfuel and/or the owner of the Equipment harmless from and against any and all claims, liabilities, losses, expenses (including attorney's fees), obligations and causes of action for injury to or death of any and all persons, or for damage to or destruction of any or all property arising out of or resulting from the condition, existence, use or maintenance of the Equipment, C %CCj* as v�«k"., 4 en- 'i s._ % AVFket_ 1 I -s eat.Q lo.lets, bL 21er+ g, ` ) ,C., 14. The Standard Provisions of Contract of the AFSA, current edition, are incorporated herein by reference and are a part of this Agreement Customer Initial Form R I Page 3 of 3 Revised 11/96 • AVFUEL CORPORATION 0 ,s ES. iTi a1 -g AVIATION REFUELER LEASE AGREEMENT Summary of Terms and Conditions Avfuel Number/Description 81015/1995 Ford 1000 Gallon Vin Number A11894 Monthly Rental $600.00 Customer. Fayetteville Municipal Airport Airport Location: Fayetteville, AR 4500 S School Ave Suite F Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement. n ACCEPTED BY: Customer Ii3►ta. • AvFVEL CORPORATION' By: Its: The reference date of this Agreement is; 10/9/01 effective date is such date or 2. 3. 5. TERMS AND CONDITIONS EQUIPMENT. Avfuel agrees to deliver and Lease the foregoing Equipment to Customer for it's sole use, subject to the following terms and conditions. RENTAL. Customer hereby agrees to pay Avfuel in advance the monthly rentals s n above, prorated for any partial month. Avfuel may increase the rentdnritrHte-ternro upon 39 s r to notice. TERM; This lease is for the term of one (1) year commencing on the effectiv& date set forth above, and shall thereafter automatically renew month -to -month unless either party shall give notice of intention to terminate. Notice to terminate shall be given in writing not less than thirty (30) days prior to the termination date, which shall be specified in the notice. The foregoing notwithstanding, if there is in effect between the parties an Aviation Fuel Supply Agreement ("AFSA"), this Lease shall terminate, without notice, as of the date the AFSA expires or is terminated in accordance with its terms unless a new or renewal AFSA shall have taken effect between the parties. If Avfuel increases the rent as allowed in section 2, Customer may notify Avfuel no less than 15 days before the increase is to take effect that it no longer wishes to rent the equipment if the rate increase goes into effect. If Avfuel rescinds the rate increase, the lease continues in effect at the then in effect rates, if it does not rescind the increase, the lease expires on the date the increase es into effect. a RETURN OF EQUIPMENT. Upon termination of this Agreement Customer shall deliueaaa�retu ea n e Equipment to Avfuel's in as good condition as when Cus omer received it, normal wear and tear accepted. Failure to return the Equipment shall be deemed a breach of this Lease. Notwithstanding such breach, Avfuel may, without foregoing any other remedies available to it, treat the Agreement as continuing from month to month under the same terms and conditions as were in effect at the end of the lease term. Nothing herein shall require that Customer perform the repair or maintenance obligation of Avfu l u e e provisions of Section 7 below q',4 atl sld, s�r�9,�,1 1. TITLE To: EQUIPMENT. Avfuel warrants that it has all necessary rights_t!o lease said Equipment to Customer. Further, the parties agree that as between themselves, Avfuel has title to the Equipment and Customer shall keep the Equipment free of liens and shall not do or permit anything to be done that will prejudice the title of Avfuel, or its rights in the Equipment Each item of Equipment shall bear a legend denoting it as the property of Avfuel and Customer shall not remove or deface that legend under any circumstances. Revised Form RI Page I of 3 11/96 • • 6. USE. The Equipment shall be used solely by Customer or its representatives at the above airport, solely for handling aviation fuels supplied to Customer by Avfuel and shall not be moved from said airport nor operated on any public road without the prior written consent of Avfuel. No fuel delivered by any other supplier shall be introduced i to e� Equipment Customer will comply with all laws, ordinances and regulations applicable to the possession, ope ti r1 use of the Equipment and will demonstrate compliance upon request. aegyats,.c.t w i.l it -c. }`Iwy vjy�.arv.Fea�we� de •k...d 7. MAINTENANCE. /In +o._ "bA pn.op•sal `97' 7.1 Except as noted in 7.3 below, the Customer will maintain the Equipment in a con ition equivalent to that as of the day of this Lease Agreement, normal wear and tear excepted, and, to that end, will, ' provide all preventative maintenance (including but not limited to lubrication, oil and filter charges, etc.), repairs, and replacementparts as are necessary to preserve the Equipment in good operating condition and in compliance and in conformity with all laws, rules, regulation, and industry standards which are applicable to the operation of refuelers. Customer shall keep complete and accurate maintenance records and AVFUEL shall be entitled to inspect the Equipment and the maintenance records at any time during regular business hours. At AVFUEL'S option, any item of repair or maintenance which would be the responsibility of Customer may be performed by AVFUEL and billed back to Customer as additional rent 7.2 Customer shall be responsible for all tire maintenance, repair, and replacement CHANGING A TIRE ON A REFUELER IS VERY DANGEROUS AND MUST NOT BE ATTEMPTED BY UNTRAINED PERSONNEL. CUSTOMER AGREES THAT IT WILL PERMIT TIRES TO BE CHANGED ONLY BY AN OUTSIDE CONTRACTOR WHO IS PROFESSIONALLY TRAINED TO DO SUCH WORK. 7.3 Except as noted in 7.5 below, Avfuel shall be responsible for the following repairs when, in its opinion, repair is necessary: overhauls or replacement of the engine, transmission, differential, or belly valve. Avfuel shall be permitted access to the Equipment at any reasonable time in order to perform the repairs and modifications, which are its obligation hereunder. Repairs and maintenance to be performed by Avfuel shall be completed within a reasonable time after notice. Avfuel assumes no responsibility for loss of use or any other items of ancillary damage which may be caused by or result to customer by reason of the fact that the equipment becomes inoperable. 7.4 Customer shall not make any alterations or modifications to the Equipment of any kind including but not limited to painting, mounting of radios or antennas, applying decals or lettering without the express written consent of Avfuel. 7.5 Customer shall promptly notify of the need for any repair or maintenance which is required and which is not the Customer's responsibility. If such repair or maintenance is required as the result of intentional conduct, negligence, or failure to perform repair or maintenance on the part of Customer or any of Customer's agents or employees, Customer shall be liable for all costs associated with performing such repairs and/or maintenance. H. WARRANTIES. AVFUEL MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING DEFECTS IN MATERIAL, WORKMANSHIP, DESIGN, CAPACITY, OR FITNESS OF THE EQUIPMENT FOR ANY PURPOSE, NOR WHICH EXTEND BEYOND THE DESCRIPTION OF THE EQUIPMENT WHICH APPEARS AT THE BEGINNING HEREOF. 9. "TAXES AND OTHER CHARGES'. The Customer shall pay all taxes, assessments, fees and similar charges (the 'Taxes") which are imposed by any federal, state or local governmental agency or by any airport authority (the "Taxing Authorities") based upon leasing, delivery, use or sale of the Equipment (including, without limitation, sales taxes, use taxes, registration fees, transfer taxes or similar charges), excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the lessor or seller collect the Taxes from the lessee or purchaser at the time of lease or sale, then AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitled to an exemption from any Taxes which the Taxing Authority requires to be collected by the lessor or seller, then, in order to permit AVFUEL to not collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates with respect to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Customer Initial Form R I Page 2 of 3 Revised 11/96 I - -, Accordingly. if, subsequent , • 1 Customer gy to the issuance of any invoice, the Taxing Authority or AVFUEL advises the Cusof additional Taxes payable with respect to that invoice, then the Customer shall promptly pay such additional Taxes. The Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customer's indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxes which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Equipment or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is required under applicable law to. collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 10. EVENTS OF DEFAULT. The following are Events of Default Failure to pay when due any rental or other sum for which Customer is obligated hereunder; the failure of Customer to observe or perform any other obligations or covenants contained herein or in the AFSA currently in force between the parties hereto; Customers use of leased equipment for dispensing petroleum products purchased from any one other than Avfuel; the voluntary filing by Customer seeking protection from creditors under the United States Bankruptcy Code or under state laws designed for the protection of debtors; the adjudication of a court or tribunal that Customer is insolvent; the assignment of Customers assets for the benefit of creditors; the appointment of a trustee, receiver, or other representative to control or operate all or a substantial part of Customers property; the occurrence of any event or events which, in the sole opinion of Avfuel, would have a material adverse effect upon the ability of Customer to meet its future obligations hereunder. �'c 4 11. RIGHTS ON DEFAULT. IN THE EVENT OF DEFAULT, AVFUEL MAY, UPON OFUL OFt WRITTEN NOTICE TO CUSTOMER, DECLARE THIS AGREEMENT TERMINATED AND CANCELED AS OF THE DATE OF SUCH DEFAULT OR AS OF A SUBSEQUENT DATE SPECIFIED IN AVFUEL'S NOTICE OF TERMINATION TO CUSTOMER. In such event, Avfuel or its agents or employees may, without further notice and without legal process enter onto any facility of Customer for the purpose of repossessing any item of Equipment or any personal property of any description owned by Avfuel, and Customer shall use its best efforts to assist Avfuel in such repossession. Pursuit of the foregoing shall not preclude pursuit of any other remedies provided by law, nor constitute a waiver of any amount due by Customer hereunder or of any damages accruing by reason of the breach of any of the terms or conditions contained herein. No waiver of any breach hereof shall be deemed to constitute a waiver of any other breach hereof, and forbearance to enforce a remedy herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default Aviation fuels on board repossessed Equipment will become the property of Avfuel, and credited against any amount owed Avfuel by Customer at that day's market price. 12. INSURANCE. Prior to the effectiveness of this Agreement, Customer shall secure at its cost, the following insurance and furnish Avfuel a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer; and (4) physical damage coverage covering the value of the leased equipment Insurance policies shall be issued by insurance companies acceptable to Avfuel, shall name Avfuel as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) day's written notice to Avfuel prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by Avfuel. 13. INDEMNIFICATION. Customer agrees to indemnify and hold Avfuel and/or the owner of the Equipment harmless from and against any and all claims, liabilities, losses, expenses (including attorney's fees), obligations and causes of action for injury to or death of any and all persons, or for damage to or destruction of any or all property arising out of or resulting from the condition, existence, use or maintenance of the Equipment, csc'�.pt- ac s Fte.+-._ 's 4.Iv—plvlces , o-i _ p e,..zs ' :C Q' j 14. The Standard Provisions of Contract of the AFSA, current edition, are incorporated/herein by reference and are a part of this Agreement Customer Initial Form RI Page3 of3 Revised 11/96 • AVFUEL CORPORATION • AVIATION REFUELER LEASE AGREEMENT Summary of Terms and Conditions Avfuel Number/Description #1015/1995 Ford 1000 Gallon Vin Number A11894 Monthly Rental $600.00 Customer. Fayetteville Municipal Airport Airport Location: Fayetteville, AR 4500 S School Ave Suite F Fayetteville, AR 72701 The terms and conditions governing this Agreement are set forth above and on the following page(s), which are made a part of this Agreement n h1= Customer • AvruEL CORPORATION: By: Its: The reference date of this Agreement is; 10/9/01 effective date is such date or TERMS AND CONDITIONS EQUIPMENT. Avfuel agrees to deliver and Lease the foregoing Equipment to Customer for its sole use, subject to the following terms and conditions. 2. RENTAL. Customer hereby agrees to pay Avfuel in advance the monthly rentals shown above, prorated for any partial month. Avfuel may increase the rent lhetea upon 00 days written notice. 3. TERM: This lease is for the term of one (1) year commencing on the effective date set forth above, and shall thereafter automatically renew month -to -month unless either party shall give notice of intention to terminate. Notice to terminate shall be given in writing not less than thirty (30) days prior to the termination date, which shall be specified in the notice. The foregoing notwithstanding, if there is in effect between the parties an Aviation Fuel Supply Agreement rAFSA'), this Lease shall terminate, without notice, as of the date the AFSA expires or is terminated in accordance with its terms unless a new or renewal AFSA shall have taken effect between the parties. If Avfuel increases the rent as allowed in. section 2, Customer may notify Avfuel no less than 15 days before the increase is to take effect that it no longer wishes to rent the equipment if the rate increase goes into effect If Avfuel rescinds the rate increase, the lease continues in effect at the then in effect rates, if it does not rescind the increase, the lease expires on the date the increase goes into effect vDc 4. RETURN OF EQUIPMENT. Upon termination of this Agreement Customer shall dg''"- -'-'i4return the Equipment to Avfuel's in as good condition as when Customer received it, normal wear and tear accepted. Failure to return the Equip ent shall be deemed a breach of this Lease. Notwithstanding such breach, Avfuel may, without foregoing any other remedies available to it, treat the Agreement as continuing from month to month under the same terms and conditions as were in effect at the end of the lease term. Nothing herein shall require that Customer perform the repair or matenance obligation. of Avfuel under the provisions of Section 7 below {,,-*—c! s► -.4 be ti io+. bt.-flt~°I.l%•l", 5. TITLE To: EQUIPMENT. Avfuel warrants that it has all necessary rights to lease said Equipment to Customer. Further, the parties agree that as between themselves, Avfuel has title to the Equipment and Customer shall keep the Equipment free of liens and shall not do or permit anything to be done that will prejudice the title of Avfuel, or its rights in the Equipment Each item of Equipment shall bear a legend denoting it as the property of Avfuel and Customer shall not remove or deface that legend under any circumstances. Revised Form Rl Page 1 of 3 11/96 6. USE. The Equipment shall be usedlely by Customer or its representatives at to above airport, solely for handling aviation fuels supplied to Customer by Avfuel and shall not be moved from said airport nor operated on any public road without the prior written consent of Avfuel. No fuel delivered by any other supplier shall be introduced into the Equipment Customer will comply with all laws, ordinances and regulations applicable to the possession, operation or use of the Equipment and will demonstrate compliance upon request p.. .ecs.J.atac w iii+ 1W_. }tWaa q�$it kcuvwc� de2j-t6<d 7. MAINTENANCE. /Ih U --c Ubta lannQ.sa. `'pf 7.1 Except as noted in 7.3 below, the Customer will maintain the Equipment in a con rtion equivalent to that as of the day of this Lease Agreement, normal wear and tear excepted, and, to that end, will, , provide all preventative maintenance (including but not limited to lubrication, oil and filter changes, etc.), repairs, and replacement' parts as are necessary to preserve the Equipment in good operating condition and in compliance and in conformity with all laws, rules, regulation, and industry standards which are applicable to the operation of refuelers. Customer shall keep complete and accurate maintenance records and AVFUEL shall be entitled to inspect the Equipment and the maintenance records at any time during regular business hours. At AVFUEL'S option, any item of repair or maintenance which would be the responsibility of Customer may be performed by AVFUEL and billed back to Customer as additional rent 7.2 Customer shall be responsible for all tire maintenance, repair, and replacement CHANGING A TIRE ON A REFUELER IS VERY DANGEROUS AND MUST NOT BE ATTEMPTED BY UNTRAINED PERSONNEL. CUSTOMER AGREES THAT IT WILL PERMIT TIRES TO BE CHANGED ONLY BY AN OUTSIDE CONTRACTOR WHO IS PROFESSIONALLY TRAINED TO DO SUCH WORK. 7.3 Except as noted in 7.5 below, Avfuel shall be responsible for the following repairs when, in its opinion, repair is necessary: overhauls or replacement of the engine, transmission, differential, or belly valve. Avfuel shall be permitted access to the Equipment at any reasonable time in order to perform the repairs and modifications, which are its obligation hereunder. Repairs and maintenance to be performed by Avfuel shall be completed within a reasonable time after notice. Avfuel assumes no responsibility for loss of use or any other items of ancillary damage which may be caused by or result to customer by reason of the fact that the equipment becomes inoperable. 7.4 Customer shall not make any alterations or modifications to the Equipment of any kind including but not limited to painting, mounting of radios or antennas, applying decals or lettering without the express written consent of Avfuel. 7.5 Customer shall promptly notify of the need for any repair or maintenance which is required and which is not the Customer's responsibility. If such repair or maintenance is required as the result of intentional conduct, negligence, or failure to perform repair or maintenance on the part of Customer or any of Customer's agents or employees, Customer shall be liable for all costs associated with performing such repairs and/or maintenance. 8. WARRANTIES. AVFUEL MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING DEFECTS IN MATERIAL, WORKMANSHIP, DESIGN, CAPACITY, OR FITNESS OF THE EQUIPMENT FOR ANY PURPOSE, NOR WHICH EXTEND BEYOND THE DESCRIPTION OF THE EQUIPMENT WHICH APPEARS AT THE BEGINNING HEREOF. 9. "TAXES AND OTHER CHARGES'. The Customer shall pay all taxes, assessments, fees and similar charges (the "Taxes") which are imposed by any federal, state or local governmental agency or by any airport authority (the "Taxing Authorities") based upon leasing, delivery, use or sale of the Equipment (including, without limitation, sales taxes, use taxes, registration fees, transfer taxes or similar charges), excepting only taxes which are imposed upon AVFUEL based upon its net income or revenues. If the Taxing Authority collects the Taxes directly from the Customer, then the Customer shall pay all such Taxes on or before their due dates. If the Taxing Authority requires that the lessor or seller collect the Taxes from the lessee or purchaser at the time of lease or sale, then AVFUEL will attempt in good faith to include all such Taxes in its invoices to the Customer and the Customer shall pay all such invoices on or before their due dates. (In its invoices, AVFUEL will identify those Taxes as separate items.) If the Customer is entitled to an exemption from any Taxes which the Taxing Authority requires to be collected by the lessor or seller, then, in order to permit AVFUEL to not collect those Taxes, the Customer shall obtain and provide to AVFUEL current and valid exemption certificates with respect to those Taxes. The Customer acknowledges that it remains solely responsible for all such Taxes even if AVFUEL, through inadvertence, error or otherwise, fails to include any such Taxes in its invoices to the Customer. Customer Initial Form R 1 Page 2 of 3 Revised 11/96 Accordingly, if, subsequent to the lance of any invoice, the Taxing Authoritr or AVFUEL advises the Customer of (''additional Taxes payable with respect to that invoice, then the Customer shall promptly pay such additional Taxes. The • Customer shall indemnify AVFUEL from any liability for any Taxes payable by the Customer and, except as provided below, for any interest, penalties or other charges assessed with respect to those Taxes. The Customer's indemnity shall extend to any Taxes which should have been collected by AVFUEL but were not included by AVFUEL in its invoice to the Customer and any Taxes which are assessable against the Customer as a result of any subsequent change or reinterpretation of the laws relating to those Taxes or any exemptions from those Taxes. The Customer's indemnity shall also extend to any Taxes for which an exemption had been claimed but which are subsequently assessed by a Taxing Authority based upon its rejection of the claimed exemption for the Equipment or the Customer. AVFUEL will indemnify and hold the Customer harmless from any interest, penalties or similar charges which are assessed against the Customer as a result of the late payment of any Taxes if AVFUEL is required under applicable law to collect such Taxes from the Customer but, as a result of the negligence or willful misconduct of its employees, AVFUEL failed to include such Taxes in its invoice to the Customer. 10. EVENTS of DEFAULT. The following are Events of Default Failure to pay when due any rental or other sum for which Customer is obligated hereunder; the failure of Customer to observe or perform any other obligations or covenants contained herein or in the AFSA currently in force between the parties hereto; Customer's use of leased equipment for dispensing petroleum products purchased from any one other than Avfuel; the voluntary filing by Customer seeking protection from creditors under the United States Bankruptcy Code or under state laws designed for the protection, of debtors; the adjudication of a court or tribunal that Customer is insolvent; the assignment of Customer's assets for the benefit of creditors; the appointment of a trustee, receiver, or other representative to control or operate all or a substantial part of Customer's property; the occurrence of any event or events which, in the sole opinion of Avfuel, would have a material adverse effect upon the ability of Customer to meet its future obligations hereunder. 11. RIGHTS ON DEFAULT. IN THE EVENT OF DEFAULT, AVFUEL MAY, UPON GRhbart WRITTEN NOTICE TO CUSTOMER, DECLARE THIS AGREEMENT TERMINATED AND CANCELED AS OFTHE DATE OF SUCH DEFAULT OR AS OF A SUBSEQUENT DATE SPECIFIED IN AVFUEL'S NOTICE OF TERMINATION TO CUSTOMER. In such event, Avfuel or its agents or employees may, without further notice and without legal process enter onto any facility of Customer for the purpose of repossessing any item of Equipment or any personal property of any description owned by Avfuel, and Customer shall use its best efforts to assist Avfuel in such repossession. Pursuit of the foregoing shall not preclude pursuit of any other remedies provided by law, nor constitute a waiver of any amount due by Customer hereunder or of any damages accruing by reason of the breach of any of the terms or conditions contained herein. No waiver of any breach hereof shall be deemed to constitute a waiver of any other breach hereof, and forbearance to enforce a remedy herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default. Aviation fuels on board repossessed Equipment will become the property of Avfuel, and credited against any amount owed Avfuel by Customer at that day's market price. 12. INSURANCE. Prior to the effectiveness of this Agreement, Customer shall secure at its cost, the following insurance and furnish Avfuel a Certificate of Insurance, evidencing: (1) commercial general liability insurance, including aircraft products liability, with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than $1,000,000 combined single limit for bodily injury and property damage; and (3) workers compensation covering all employees of Customer; and (4) physical damage coverage covering the value of the leased equipment Insurance policies shall be issued by insurance companies acceptable to Avfuel, shall name Avfuel as additional insured, or loss payee as the case may be, and shall provide for at least thirty (30) day's written notice to Avfuel prior to cancellation or modification. Customer shall maintain such policies in full force and effect throughout the term of this lease and until all of its obligations hereunder have been released by Avfuel. 13. INDEMNIFICATION. Customer agrees to indemnify and hold Avfuel and/or the owner of the Equipment harmless from and against any and all claims, liabilities, losses, expenses (including attorney's fees), obligations and causes of action for injury to or death of any and all persons, or for damage to or destruction of any or all property arising out of or resulting from the condition, existence, use or maintenance of the Equipment, exc t ac 4.est.4Ae� J PLWr 14'a. n<olltyct..c< Vb AV FLIP -L., (k -s 4 w-ptoltcs , o-_ A9e.-.t-s \) .C, 14. The Standard Provisions of Contract of the AFSA, current edition, are incorporated herein by reference and are a part of this Agreement customer Initial ?orm Rl Pagc 3 of 3 Reviacd 11 /96 SPECIFICATIONS AVIATION GASOLINE; JET FUEL Specs Met Yes No FUEL The aviation gasoline required by the Fayetteville Municipal Airport is know as "AVGas"; the Jet Fuel required is known as "Jet A", with fuel additive (such as Prist) to provide protection from microbial growths and for fuel system icing protection as approved by the FAA. Supply on lease, and maintain refueler trucks. A. AvGas 100LL refueler 1200 gal (approx) capacity B. Jet A refueler 2200 gal (approx) capacity Provide complete maintenance of refueler trucks included: All mechanical; engine, drive train, lights, brakes, transmission, electrical system. List any items not covered. Piping, fuel lines, meters, hoses, and hose reels shall be well maintained. New aviation hoses, filter elements and nozzles shall be furnished as needed to meet the aviation fuel suppliers specifications. Special markings such as valve operating instructions and emergency valve decals will be maintained. Fuel farm maintenance program: provide regular and necessary maintenance inspection of fuel farm, filters, hoses, pumps, nozzles, safety checks, calibration, inspections and other tasks necessary for the continuing safe operation of and re -certification of the airport fuel farm. Sep -28-01 1037 AVFUEL CORPORATIOn 816 822 9559 P.O4 AWARD AGRkEMENI' WITH A V I UEf , CORPORATION AVFI.IEL Corporation is pleased to announce that we will now be accepting the AVCARD credit card As soon as you have agreed to the following, as signified by your signature on this letter and returning it to us, we can add you to this program, A V FJFL Corporation will credit your account as soon as we have received the transmitted information from AVCARD. You will no long get a .statement from AVCARD. AVCARD will not be held responsible for reimbursing your company fitr any AVCARD credits you have acquired or any differences that may occur with AVFUEL Corporation. Dealers will need to follow AVCARD procedures which will be provided. Failure to do So to dd r atilt in ehargebacks Any current amount due, should be diverted to AVFULL Corporation. AGREED TO ACCEPTED this _day of__. 19__—. .n.. ... .!!.I. ,F ,, ,Sep -28-01 1O37 AVFUEL CORPORATIOn 816 822 9559 P_04 • • AVCARD AGREEMENT' WITH AVFIJE1.,CORPORATI< N AVFUEL Corporation is pleased to announce that we will now be accepting the AVCARD credit card As soon as you have agreed to the following, as signified by your signature on this letter and returning it to us, we can add you to this program. A VFtJEL Corporation will credit your account as soon as we have received the transmitted information tram AVCAi(D_ You will no long get a statement from AVCARI). AVCARD will not be held responsible for reimbursing your company fbr any AVCARD credits you have acquired or any differences that may occur with AVFUEl, Corporation. Dealers will need to follow AVCARD procedures which will be provided. Failure to do so could rce ulr in eharg harks Any current amount due, should be diverted to AVFUEL Corporation. AGREED TO ACCEPTED this day of 19__—. A AA... Sep -28-01 10:37 AVFUEL CORPORATIOn 816 822 9559 P_02 AVEL CORPORATION AVTRIP AGREEMENT This Agreement is between AVFDEI. CORPORTION and _ located in (DEALER), (Company Name) (City, State) WHEREAS, AVFUEL CORPORATION i initiating an Incentive pmgrarri (AvtmP) pursuant to which pilots purchasing the goods and services of the DEALER may be entitled to accrue fmanc!al benefits; and WHEREAS, AVFUEL CORPORATION has agreed to undertake the administration of and to market the Avsa r rWOCYAM on a nationwide buls, in order to crease incentives far pints to participate In the Av rr rnocvAM; and WHEREAS, the DEALER has agreed to provide certain administrative and other assistance to AVFUEL in order to support the Avnur PROGRAM. NOW, THEREFORE, in consideration of the mural promises herein continued, and other good and valuable considmtion, the receipt and sufficiency of which are hereby acknowledged, the panics hereto agree as follows: 1. AVFUEL CORPORATION reserves the right to amend, suspend, or terminate this program at any time. AYFUEL also rtserves the right to terminate any individual's participation at any time for misuse of the AVTRIP card, violators of the rules of the program, or inactivity for a period or 12 consecutive months, 2. AVFUEL CORPORATION agrees to undertake central administration of the AVTRIP PROGRAM, and to timely Inform the DEALER of any changes to the AVDUP PROGRAM, all otwhich changes are agreed to binding on the DEALER. 3. AVFUEL CORPORATION agrees to market the AV'tRirrROGMM nationwide, to both base and transient pilots to encourage participation by such pilots in the AVTRlt?ROCRAM. 4. DEALER agrees to train and/or familiarize its personnel with the AVTRIP PROGRAM, and to prominently postwritten materials relating to the AVTRf VROGRAN, in order to encouragc pilot participation In the AflRIP GROGRAM. 5. DEALER agrees to administer the AvrpnnRocRAM in accordance with the following guidelines: a) A participating pilot will be entitled to a minimum of two points for each gallon of fuel purchased by such pilot- Fuel purchase discounts, if granted by the DEALER, may not be based upon participation (or lack thereof) by any pilot in the AVIrRiP PROGRAM. b) If offered by the DEALER (at its sole discretion), a participating pilot will be entitled to a minimum Clone point for each dollar of services and/or pats purchased by such pilot Discounts on service and/or pans, itgranted by the DEALER, may not be based upon participation (or lack thereof) by any pilot in the Avnnr PROGRAM. e) At least once every two weeks, the DEALER will submit to AVFUEL CORPORATION all documentation and grads to effect the *vnu' Tire M, including enrollment forms, evidence of points earned by pilots, and DEALER contributions ofS.02 for each gallon of fuel and 3.01 for qach dollar of services and/or pans purchased to the Avnur PROGRAM. 6. AYFUEL CORPORATION aarccs that, on an annual basis an accounting OfAVrwrrROGRAAt funds raised and disposition thereof may be reviewed by an Advisory Board of AYFUEL CORPORATION DEALERS. T. The DEALER agrees that, in order m continue its participation in the Avrren raoc2AM, DEALER must remain an AYFUEL DEALER W ithdrawah from the Avnur rROCttaM may be effected upon receipt by AVFUEL CORPORATION, at least 90 days In advance, of written notice of such withdrawal. CUSTOMER: BY: Print Name The reference date of this Agreement is AVFUEL CORPORATION: ESTIMATED FUEL COST PER GACLON AVFuel Corp. QUOTED PRICES 08/24/2001 Enter Amount of Fuel Gallons per Month Jet -A: Per Gallon 0.8395 Fuel Jet -A: 25,000 0.1360 Differential AvGas: 15,000 0.2190 Fed excise tax 0.001 Envirn Fee Total: 40,000 (0.0050) Co-op fund 1.1905 fuel cost total Overhead Costs: 0.0360 Truck lease 1.2265 SubTotal 0.0239 Credit Card surcharge (VISA/Mastercard) 1.2504 Total AVGas: Per Gallon 1.0875 Fuel 0.1117 Freight 0.0433 Truck Maint. 0.1980 Fed excise tax 0.0010 Envirn Fee (0.0050) Co-op fund 1.4365 fuel cost total Overhead Costs: 0.0400 Truck lease —_ Combined 1.4765 SubTotal Avg Cost: 1.3779 0.0288 Credit Card surcharge (VISA/Mastercard) 1.5053 Total ESTIMATED FUEL COST PER GALLON BP AIR QUOTED PRICES 08/24/2001 Enter Amount of Fuel Gallons per Month Jet -A: Per Gallon 0.842 Fuel Jet -A: 25,000 0.1600 Differential AvGas: 15,000 0.2190 Fed excise tax 0.001 Envirn Fee Total: 40,000 (0.0050) Co-op fund 1.2170 fuel cost total A Overhead Costs: 0.0540 Truck lease _ 1.2710 SubTotal 0.0394 Credit Card surcharge (VISA/Mastercard) 1.3104 Total AVGas: Per Gallon 1.2000 Fuel 0.0550 Differential 0.1980 Fed excise tax 0.0010 Envirn Fee (0.0050) Co-op fund 1.4490 fuel cost total _ Overhead Costs: 0.0600 Truck lease Combined 1.5090 SubTotal Avg Cost: 1.4331 0.0468 Credit Card surcharge (VISA/Mastercard) 1.5558 Total ESTIMATED FUEL COST PER GALlON • PHILLIPS 66 QUOTED PRICES 08/24/2001 Enter Amount of Fuel Gallons per Month Jet -A: Per Gallon 0.9603 Fuel Jet -A: 25,000 0.0397 Freight AvGas: 15,000 0.2190 Fed excise tax 0.001 Envirn Fee Total: 40,000 (0.0050) Co-op fund 1.2150 fuel cost total Overhead Costs: 0.0430 Truck lease 1.2580 SubTotal 0.0315 Credit Card surcharge (VISA/Mastercard) 1.2895 Total AVGas: Per Gallon 1.3278 Fuel 0.0722 Freight 0.1980 Fed excise tax 0.0010 Envirn Fee (0.0050) Co-op fund 1.5940 fuel cost total Overhead Costs: 0.0483 Truck lease Combined 1.6423 SubTotal Avg Cost: 1.4864 0.0411 Credit Card surcharge (VISA/Mastercard) 1.6834 Total • • STAFF REVIEW FORM XX AGENDA REQUEST Aviation Fuel Supplier Contracts XX CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of October 16. 2001 ----------- FROM: Gary Dumas Airport Name Division Environmental Services Department ---------- ACTION REQUIRED: Review and approve items related to City of Fayetteville Fixed Base Operations (FBO) at Drake Field. I) Bid acceptance and approval of Contract with AVFUEL Corporation. 2) Approve budget adjustment recognizing the estimated costs and associated revenues related to FBO operations. COST TO CITY: $ (68,841) Revenue 68,841 Expense Cost of this Request Various Account Number Project Number t I i 10 (113,698) 113.698 Category/Project Budget 42,998 $ (54,689) Funds used to date (70,700) $ 59.009 Remaining Balance Budgeted Item Administrative Services Dir. Date REVIEW: Lal % / O /& 0) Date Internal Au it r Date I ji J Date ADA Coor mator Date Purchasing Officer Date Grants Coordinator Date Category/Project Name Airport FBO Program Name Airport Fund X Budget Adjustment Attached GRANTING AGENCY STAFF RECOMMENDATION: Approval of Fuel Supplier Contract and Budget Adjustment Date Cross Reference to- (-O� Date i New Item: Yes No Date Orig Cont. Date: r Orig Cont #: Date r % • • STAFF REVIEW FORM Description: AVFUEL Corn - Aviation fuel sunnlier contract Comments: Budget Manager ta-ccc tHf1� �tL Accounting Manager a — City Attorney Purchasing Officer Internal Auditor ADA Coordinator Grants Coordinator Meeting Date: October 16,2001 Reference Comments: Reference Comments: Reference Comments: Reference Comments: Reference Comments Reference Comments: Reference Comments: I'.•• . L STAFF REVIEW FORM XX AGENDA REQUEST Aviation Fuel Supplier Contracts XX CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of October 16, 2001 / FROM: Gary Dumas Name ACTION RE U D: Review and ap rove 'tems related to City of Fayetteville Fixed Base Operat' ns (FBO) at Drake Field. 1) Bid ccepta a and approval of Contract with AVFUEL Corpo tion. 2) Approve budg adjustment recognizing the estimated costs a d associated revenues related to FBO operations. Airport Division COST TO CITY; S(68,841) Revenue (113,698) 68,841 Expense $ 113,698 Cost of this Request Category/Project Budget Category/Project Name 42,998 Various (54.689) Airport FBO Account Number Fu'?4s used to date Program Name (*700) 59Q9 Airport Project Number Remaining ala ce Fund BUDGET REVIEW: _ Budge d em X Budget Adjustment Attached Date Administr ive Service ir. Date Budget Manager CONTRACT/GRANT/ ASE REVIEW: GRANTING AGENCY InternI Auditor ate Accounting Manager Date AD Coordinator Date City Attorney Date Date G ants Coordinator Date Purchasing Officer STAFF RECOMMENDA ION: Approval of Fuel Supplier Contract and Budge djustment Division Head J Date Cross Reference Department Director Date New Item: Yes No Prev. Ord/Res#: Administrative Services Director Date Orig Cont. Date: Orig Cont #: Mayor Date RECEIVED OCT 012001 C l Y OF FAYE7TEVILLE •• Y CLERKS OFFICE ri C Description: STAFF REVIEW FORM AVFUEL Corp - Aviation fuel supplier contract Comments: Budget Manager Meeting Date: October 16,2001 Reference Comments: Accounting Manager Reference Comments: City Attorney Reference Comments: Purchasing Officer Reference Comments: Internal Auditor Reference Comments ADA Coordinator Reference Comments: Grants Coordinator Reference Comments: Page 2 FAYETTEV&LE THE CITY OF FAYETTEVIIIE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Gary Dumas, Utilities Service Director From: Heather Woodruff, City Clerk Date: October 29, 2001 Attached is a copy of Resolution No. 147-01 approving a contract with AVFuel Corporation to purchase fuel and services to be used at the Fayetteville City Airport (Drake Field) and to approve a budget adjustment The original will be microfilmed and filed with the City Clerk. Your budget adjustment form has been forwarded to Budget & Research. cc: Nancy Smith, Internal Audit Steve Davis, Budget & Research FUEL MICaO tM WLVA1 ORPORATION The Nation's Leading Independent Supplier of Aviation Fuels January , 2002 Mr. Dan Coody Mayor City of Fayetteville 4500 South School Avenue Suite 7 Fayetteville, AR 72701 Dear Mr. Coody: RECEIVED JAN 1 1 2001 AIRPORT Enclosed are copies of the fully executed Agreements between our companies. Please retain these copies for your files. I would like to thank you for your continued business with Avfuel. Also, please remember that if you have any questions, do not hesitate to call us! Sincerely, AVFUEL CORPORATION Esther M. Collis Administrative Coordinator Enclosures P.O. Box 1387, Ann Arbor, Michigan 48106-1387 (734) 663-6466, (800) AVFUEL4 (283-8354) 47 W. Ellsworth, Ann Arbor, Michigan 48108-2278 FAX: (734) 663-1681, www.avfuel.com