Cardlock

This Application and Agreement for Credit shall apply to any and all credit extended, and products provided by AFD Petroleum Ltd. (“AFD”).
The credit applicant and its signing individual representative (collectively, the “Applicant”) jointly and severally understands and agree to the
following terms and conditions:
1. The Applicant consents to the obtaining of credit and/or personal information as may be required in connection with the credit
hereby applied for or any renewal or extension thereof, and use and to the disclosure of any information above or trade
information concerning the Applicant, its officers of affiliated entities to any credit report agency or otherwise for the purposes
of assessing credit risk or enforcing payment of amount in arrears (and specifically authorizing AFD to obtain land titles or
vehicle ownership details from the applicable provincial registries).
2. Provided the Applicant is within the stated credit terms (if any), payment shall be made net 30 days for card lock and bulk
delivery purchases from invoice date (unless otherwise specified by specific agreement). Representatives of AFD are not
authorized to change or adjust credit terms without written authorization of the credit manager. This amount may be changed
or credit reduced or eliminated at any time by AFD upon written or verbal notice to Applicant, and AFD shall have the right to
demand payment of all amounts outstanding and the value of any pending orders on a COD basis before making further
shipments to Applicant. Whether or not Applicant is delinquent, AFD reserves the right to revoke any credit extended to
Applicant, cease future deliveries, and remove/retain/ dispose of any inventory previously delivered without notice. AFD shall
not be liable for any withdrawal of credit privileges, whether or not Applicant has received any notice of such withdrawal.
3. If amounts due are paid within the above terms of credit, no late payment charges will be assessed. However, if amounts
due are not paid in full within the terms of credit, the balance owing shall be subject to a late payment charge from
invoice date at the rate of 2% per month (24% per annum nominal rate), calculated and compounded monthly, until
payment in full is received by AFD. In the event that this charge exceeds any maximum permitted by law, it shall be
reduced to the legal maximum. NSF cheques or other reversed payments will be subject to a $30 processing charge.
4. The price to be paid for all products delivered by AFD shall be at AFD’s prevailing rates, which may at time increase/decrease
at the sole discretion of AFD without notice. If upon audit of any delivery ticket or invoice a system or manual error is
detected in the calculation of applicable taxes charged, or an incorrect rate charged per liter, AFD will make the required
corrections and the Applicant agrees to pay the corrected amount (either higher or lower, as the case may be).
5. AFD shall not be liable for any temporary or permanent failure to supply product hereunder, whether or not prevented by fire,
labor disturbance, inaccessible roads, shortage of fuel or any other cause reasonably beyond AFD control, nor shall AFD be
liable for special, direct, indirect, or consequential damages resulting from or arising out of this contract including, without
limitation, punitive damages, economic losses, loss of profit, loss of use, loss of contract, loss of production, loss of revenue,
business interruption, or increased cost of working, however same may be caused. The Applicant shall be obligated to show its
storage vessels were not compromised or contributed to loss or damages suffered.
Applicant agrees to bear all costs incurred by AFD in the enforcement of this Agreement or collection of any unpaid amounts
including, but not limited to, interest, collection agency, legal fees and court costs (on a full indemnity basis, including
solicitor client costs), until payment is received by AFD. AFD retains title and it’s granted a purchase money security interest,
for security purposes only, to all goods until paid for in full, and AFD may, at its option, repossess the same upon Applicants
default in payment hereunder and charge Applicant for any deficiency.
7. All terms, conditions, warranties, or representations, either express (via advertisement, catalogue or other AFD publication or
otherwise) or implied (by common law, statute or otherwise), in relation to the accuracy, merchantability, fitness for a
particular purpose or otherwise in relation to the provision of goods or services are waived, disclaimed and excluded to the
greatest extent permitted by law. The goods are provided on an “AS IS” basis and AFD disclaims any and all implied warranties
or conditions with respect to the goods or services provided (any claims shall be as against the refinery only). The liability of
AFD, however arising (whether for breach of contract, negligence, misrepresentation or otherwise), shall at no time exceed the
full value of the consideration paid or payable by Applicant for the specific products or services in issue. AFD may, at its option,
replace, repair or refund any defective goods provided Applicant gives AFD thirty (30) days’ prior written notice of any
defective goods, and provided Applicant has not altered, misused or unreasonably used said goods. Unless otherwise agreed
to in writing by the parties, full risk of loss (including transportation delays and losses) shall pass to the Applicant upon delivery
of goods sold or rented to the designated F.O.B. point, regardless of whether or not AFD pays freight.
Applicant must contact the proper municipal authority prior to installation and usage of new or existing equipment supplied, filled
or otherwise utilized by AFD, including obtaining or updating permits may be required. AFD takes no responsibility, and it is your
sole obligation to ensure: (i) all equipment is installed, permitted, inspected and equipped properly to facilitate safe operation, and
are prepared as may be required for your particular usage and circumstances; (ii) the required information (product name,
capacity, tank chart, emergency procedures, posting of emergency phone numbers and information etc.) are labelled on any
equipment, or installed prior to initial product usage; (iii) proper inventory control, leak detection, and maintenance programs are
carried out; (iv) all equipment is located to allow for safe access to delivery trucks, dispensing operations and emergency vehicles;
(v) all equipment systems have suitable means of collision protection, security, spill containment and fire response equipment; (vi)
adequate grounding of the equipment as per applicable code; and (vi) you have obtained all requisite licenses, consents or rights
necessary or desirable as may be required by the landowner or party required to consent to the installation or continued operation
of equipment.
9. In the event that Applicant requests or agrees to store goods, inventory, equipment or other assets on the premises of AFD or
under the direct or indirect control or supervision of AFD, whether such arrangement is gratuitous or for consideration, in all
such cases: (a) AFD shall not be responsible for any loss or damage, except as may be provided in this Agreement, and then
only if Applicant had obtained confirmation of amount and initial condition of the assets upon delivery to and receipt by AFD;
(b) AFD is granted a security interest to ensure payment in full of all amounts owing to AFD, and AFD may, at its option,
repossess or enforce its rights against same upon Applicant default in payment hereunder and charge Applicant for any
deficiency, and (c) AFD shall have no implied or other obligations to take reasonable or other steps to safeguard or protect the
assets of the Applicant. For great certainty, in no event shall AFD be liable for loss, damage of theft of the Applicant’s assets on
or from AFD’s premises or storage yard.
10. This constitutes the entire agreement and understanding between the parties and supersedes and replaces all prior and
contemporaneous agreements, understandings, representations, and conditions, both written and oral, between the parties
regarding the terms of credit or supply of product or services. AFD may, at any time and from time to time, amend or replace
or substitute the credit terms and upon so doing and providing Applicant with a copy thereof, such amendment, replacement
or substitution shall be incorporated herein and made part hereof in the place and stead of the provisions so amended,
replaced or satisfied. This agreement shall be governed by the laws of the Province of Alberta. If any term or provision is
invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term
or provision of this credit or invalidate or render unenforceable such term or provision in any other jurisdiction.