Document:

Exhibit 10.5

 

SECOND AMENDED AND RESTATED

TERMINAL STORAGE RENTAL AND THROUGHPUT AGREEMENT

 

This
Second Amended and Restated Terminal Storage and Throughput Agreement (the “Agreement”)
is entered into as of the 4th day of October, 2005 by and among Global Petroleum
Corp. (hereinafter referred to as “Global”) and Global Companies LLC (for
itself and its subsidiary, Glen Hes Corp.) and Global Montello Group Corp.
(hereinafter jointly referred to as “Customer”), and amends and restates in its
entirety the Amended and Restated Terminal Storage and Throughput Agreement
dated as of September 1, 2001 by and among Global and Customer (the “Original
Agreement”).

 

WHEREAS,
Global operates the Terminal described in Section 1.3 hereof on real
property, title to which is owned by Global and related entities identified as
follows:  Global South Terminal LLC,
Global Revco Terminal LLC and Global Revco Dock LLC (Global and such related
entities are sometimes hereinafter referred to collectively as the “Global
Terminal Group”).  The Terminal excludes
those parcels of real estate identified on Exhibit “A” attached hereto and
incorporated herein by reference; 

 

WHEREAS,
Customer desires to utilize the entire capacity of the Terminal facilities for
terminalling petroleum products as described below, subject to the terms
hereinafter set forth; and

 

WHEREAS,
the Parties are desirous of amending certain terms and provisions of the
Original Agreement as set forth herein;

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the signatories hereto, the
Parties hereby agree as follows:

 

1.             Definitions

 

In this Agreement the
following words have the meanings herein set forth:

 

1.1           Product(s)
means the type and grades of petroleum products described in Schedule 1.1
attached hereto.

 

1.2           Barrel
means forty-two (42) U.S. gallons measured in accordance with Section 6.2
hereof.

 

1.3           Terminal
or Terminal Premises will mean the Global Terminal Group’s terminal located
at Lee Burbank Highway, Revere, MA, which may include land, dock, storage
tanks, truck loading racks, pipes, offices and related facilities, together
with modifications or additions thereto, but excluding the office space that is
currently leased to Sun Oil Company located at 140 Lee Burbank Highway.  The Terminal shall also not 

 

 

include those
parcels of real estate identified on Exhibit “A” attached hereto and
incorporated herein by reference.   

 

1.4           Terminalling
Services means the acceptance of Product at the Terminal for the account of
Customer, interim storage of the Product at the Terminal, maintenance of
Product quality, and redelivery of Product via the truck loading rack or, in
the case of distillates, via marine dock, at the Terminal into
customer-designated trucks or marine vessels, for the account of Customer,
together with all necessary record keeping.

 

1.5           Throughput
means the total volume of Product received by and delivered from the Terminal
during a given period.

 

1.6           Contract
Year means a one year period beginning January 1 and ending the
following December 31.

 

1.7           Tank
capacity for the exclusive benefit of Customer at the Terminal Premises for
the throughput of Products is 2,086,740 barrels, as more specifically set forth
on Exhibit “B” attached hereto and incorporated herein by reference.

 

1.8           Party
or Parties means Global and/or Customer and/or their respective
successors and permitted assigns, individually or collectively, as the context
requires.

 

2.             Services
and Facilities

 

2.1           Global,
at its own expense, will maintain and make such repairs as are necessary to
keep the Terminal in good operating condition, normal wear and tear excepted,
and in compliance with all applicable laws and ordinances.

 

2.2           Global
agrees to furnish Customer with Terminalling Services at the Terminal.

 

2.3           Global
shall not enter into any throughput agreement with any other persons, companies
or corporations with respect to the Terminal and the Product stored therein.

 

3.             Operations

 

3.1           Customer
will provide to Global at the address set forth in Section 23.1 or at such
other address as Global shall designate by written notice to Customer, with
written monthly forecasts of Product off takes and deliveries by the 15th
day of the month preceding that of the scheduled activity to enable Global to
plan inventories and throughputs. 
Further, Customer shall give Global at least ten (10) days’ advance
written notice of each five day period during which Customer expects any
delivery or receipt to take place and, in addition, give Global at least 72, 48
and 24-hours advance notices of the estimated time and arrival of all vessels
scheduled for berthing at the Terminal. If such notices are not given, Global
shall have no liability for demurrage charges or other damages as a result of
the detention of any Product or vessel which is not afforded with tankage or a
berth on arrival unless the delay is due to Global’s failure to provide the 

 

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facilities for
deliveries as specified herein.   The ten
(10) day advance written notice shall include the following information:

 

1)             Vessel
Name

 

2)             Product(s)/specifications

 

3)             Volume(s)
to be discharged/loaded

 

4)             Estimated
time of arrival

 

5)             Vessel
particulars (draft, length, beam and any other particulars as requested.)

 

6)             Agent

 

7)             Loading
point within two working days of receipt of above information

 

Global will
confirm or reject the nomination.  If
Global rejects the nomination because of berthing conflicts, Global shall offer
an alternative berthing time.

 

3.2           Global
shall deliver Product for Customer’s account into tank transport trucks,
designated by Customer during regularly scheduled hours as determined by
agreement of Customer and Global.  Upon
receipt of orders from Customer, Global shall be governed in all aspects by
Customer’s instructions with regard to loading tank transport trucks, and/or
barges furnished by Customer.

 

3.3           Global
agrees to hold Customer’s inventory for Customer’s account.

 

3.4           Global
agrees to provide a suitable berth and dock facility at the Terminal so that
Customer may receive Product into storage or load Product (except gasoline,
until such time as (i) marine vapor recovery equipment has been installed,
and (ii) the right to use same has been fully permitted by legal
authorities) from storage.  Global only
warrants the berth will safely accommodate vessels of a length overall not
exceeding 660 feet and having a bow to center manifold distance not exceeding
330 feet.  Within these limitations,
vessels with a maximum extreme breadth of 90 feet, and with a maximum draft of
36 feet, may safely berth at the Global dock. Global shall not be liable for
any damage suffered by such vessel as a result of striking objects or grounding
in the berth, or for oil pollution resulting therefrom not caused by the
failure of Global to perform hereunder. 
Customer agrees to defend, indemnify and save harmless Global against
any and all claims of liability resulting therefrom.  Global shall not be responsible for any such
costs or damages incurred by any such vessels in having to vacate the berth
whether or not the reason for vacating the berth is due to Global’s inability
for any cause to receive the Product or otherwise.  All duties and other charges on the vessel
not caused by the failure of Global to perform hereunder, including without
limitation, those incurred for tugs and pilots, other port costs and taxes on
freight, shall be borne by Customer.  Customer
or its marine vessel operator shall be responsible for providing line 

 

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handling personnel
for Customer’s vessel tie-up and release from mooring dolphins whenever dolphin
mooring is required, all at Customer’s sole risk and expense.  Customer shall provide dock personnel for
tie-up and release of all vessels at dock mooring points, and to make hose
connections to the vessel’s manifold, all at Customer’s sole risk and
expense.  After mooring, the vessel shall
then be responsible for tending mooring lines to keep the vessel adequately
moored at all stages of tide.  When
unloading a Customer’s vessel, the Product shall be pumped into storage at the
Terminal by the vessel and at Customer’s expense.  Furthermore, Customer assumes full
responsibility for any proven damage sustained by Global at or near the
Terminal arising out of the negligent or improper operation of tows, barges,
tankers or any other waterborne craft, either owned, operated or nominated by
Customer, its agents, suppliers or customers not caused by the failure of
Global to perform hereunder.  Global
assumes full responsibility for any proven damages sustained by Customer at or
near the Terminal dock arising out of the negligent or improper operation of
dock facilities operated by Global or its agents.

 

3.5           Global
shall berth, handle and sail barges arriving to unload Product for Customer on
an “as available” basis.  Said berth
shall have loading and unloading connections to receive or redeliver Product
(with the exception of loading gasoline, until such time as (i) marine
vapor recovery equipment has been installed, and (ii) the right to use
same has been fully permitted by legal authorities) into or from assigned
tankage.  Pier facilities to load or
unload Product shall be available during regularly scheduled hours, as
determined by Global, and Customer agrees its vessels shall immediately vacate
the berth after the loading or unloading of Product, subject to the Master’s
approval based upon acceptable operating conditions. 

 

3.6           Global
does not guarantee a minimum discharge/loading rate for vessels and will not
accept or pay any demurrage charges or other damages for delay except and to
the extent such charges or damages arise from the (i) failure of equipment
operated by Global, or (ii) negligent acts or omissions of Global, its
agents, servants or employees or by reason of Global’s failure to perform its
obligations hereunder.

 

3.7           If
Global, in its sole discretion, determines that any Customer designated marine
vessel or barge nominated to receive or discharge at the Terminal presents a
safety, health or environmental hazard, or is in any way significantly
incompatible with the dock facilities, or is not in a fully seaworthy
condition, properly manned, equipped and safe with hull, pipes and pumps tight,
staunch and strong or in compliance with all federal, state, port and Terminal
regulations including but not limited to the U.S. Port and Tanker Safety Act of
1978 and any applicable regulations promulgated thereunder, the International
Convention for the Prevention of Pollution from Ships (MARPOL 1973) and the
1978 protocol thereto, as applicable, it will so notify Customer at the
earliest opportunity, and it will have the right to refuse such marine vessel
or barge access to the dock, or, if docked, to require the marine vessel or
barge to be removed promptly.  Customer
will direct the marine vessel’s or barge’s master will immediately comply with
any such request by Global. Any delays, losses or expenses arising as a result
or failure to comply with this Section shall be for Customer’s account,
and Global shall not be liable for any demurrage or other damages for delay
caused by vessel/barge’s failure to comply.

 

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3.8           All
marine vessels or barges utilized by Customer for receipt and/or delivery of
its Product at the Terminal will be compatible with all Terminal
facilities.  In the event that Global
deems it necessary or desirable at any time to modify the Terminal facilities,
all Terminal equipment utilized for Customer’s account, other than equipment
owned or leased by Customer, will be modified at Global’s expense, in
accordance with Global’s specifications. 
Global will not be responsible for any modifications of Customer’s
designated marine vessels or barges, which, if necessary, will be modified at
Customer’s sole expense to be compatible with all modified Terminal
facilities.  Global will provide Customer
prior written notice of such modifications not less than sixty (60) days prior
to the effective date of such modifications or changes.

 

4.             Term
of Agreement

 

Subject to the provisions
of Sections 17.2, 18.2, 19 and 25.2 hereof, the Initial Term of this Agreement
shall be for a period commencing on December 21, 1998 and terminating on December 31,
2013 (hereinafter called the “Initial Term”). 
After the Initial Term of this Agreement, the Agreement shall continue
for successive one (1) year terms unless Customer or Global gives the
other Party not less than ninety (90) days written notice of termination prior
to expiration of the Initial Term or, if applicable, any additional one-year
term.  

 

5.             Charges,
Payments, Terms

 

5.1           From
December 21, 1998 to June 20, 1999 Customer shall pay a monthly Throughput
charge to Global of $668,426 ($0.30 x 2,228,087).  From June 21, 1999 to December 20,
1999 Customer shall pay a monthly Throughput charge to Global of $557,022
($0.25 x 2,228,087).  From December 21,
1999 to August 31, 2001, Customer shall pay a monthly Throughput charge to
Global of $445,617 ($0.20 x 2,228,087). 
From September 1, 2001 to December 31, 2003, Customer shall
pay a monthly Throughput charge to Global of $605,155 ($0.29 (the “Per Barrel
Rate”) x 2,086,740).  Commencing January 1,
2004 and thereafter on January 1 of each successive Contract Year during
the Initial Term and each applicable additional year (if any), the Per Barrel
Rate shall be subject to adjustment as follows: 
Said Per Barrel Rate (as adjusted from time to time, the “Adjusted Per
Barrel Rate”) shall be that amount equal to (i) the Per Barrel Rate for
the just expired Contract Year plus (ii) the percentage increase
(if any) of the Consumer Price Index, All Urban Consumers (CPI-U) Region 1,
Boston Index, comparing the indices for January of said just expired
Contract Year and January of the then current Contract Year (the “Inflation
Adjuster”). Said Inflation Adjuster is based upon the current CPI reference
base and shall be adjusted as the Bureau of Labor Statistics periodically
adjusts its Consumer Price Index reference base.  In the event of the discontinuance of the
Consumer Price Index during the Initial Term or any additional year thereafter
of this Agreement, the inflation adjuster to be used for purposes of this Agreement
shall be a mutually agreed upon inflation indicator, or, if the Parties are
unable to agree, an inflation factor determined by a neutral arbitrator
selected in accordance with Exhibit “C”. 
Upon calculation of said Adjusted Per Barrel Rate, the Customer shall
pay, for the applicable Contract Year, a monthly Throughput charge in that
amount equal to the (x) then Adjusted Per Barrel Rate multiplied times (y)
2,086,740.  Regardless of the CPI 

 

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calculation
contemplated by this Section 5.1, in no event shall the Adjusted Per
Barrel Rate for any Contract Year from and after 2004 be less than twenty-nine
cents ($0.29).  The Adjusted Per Barrel
Rate for the Contract Year commencing January 1, 2005 is $0.30.

 

5.2           Without
duplication for charges therefor, all third party charges including but not
limited to booming, line handling, environmental and other taxes (other than
income taxes and real estate taxes or assessments, which will be paid in
accordance with Section 14.2 below), insurances, dying of Product, etc.
will be for Customer’s account.  For
purposes of identifying specific inclusions to be paid by Customer with respect
to the foregoing, as of the date hereof, Global’s reasonable and necessary
costs for security measures imposed at the Terminal as directed by Customer, at
the request of governmental authorities or otherwise by regulatory mandate
directly in response to terrorism or threats thereof shall be for the account
of Customer.  Said items identified in
the immediately preceding sentence are not exhaustive of all such charges.

 

5.3           Customer
shall pay to Global, in addition to any monthly Throughput charge, 75% of any
increases in insurance premiums with respect to those policies and coverages
identified on Exhibit “D” attached hereto and incorporated herein by
reference (pro rated with respect to any portion of a year in which the term of
this Agreement begins or ends), over and above the premiums incurred with
respect to the applicable coverage period (the “Base Insurance Period”) after
adjustment by the applicable Inflation Adjuster.  Said amount shall be due and payable to
Global within ten (10) days after Global makes and provides evidence of
the payment thereof to Customer (which evidence shall include a copy of the
then current insurance premium invoice and the corresponding premium from the
Base Insurance Period)

 

5.4           All
amounts owed by Customer to Global hereunder shall be payable in accordance
with Sections 5.1, 5.2 and 5.3.  Customer
shall pay interest on all past due amounts hereunder, calculated at the prime
rate set by JP Morgan Chase for each calendar day or part of a calendar day
beyond the due date.

 

5.5           Failure
of Customer to comply strictly with the material terms of this Agreement shall
be cause for Global to suspend further shipments and deliveries under this
Agreement for so long as such failure continues without liability for any
damages occasioned by said suspension.

 

5.6           Except
as may be prohibited by the terms and conditions of Customer’s financing
agreements with its lender(s), Customer hereby grants to Global a security
interest in all Product stored by Customer at the Terminal to secure payment of
all monetary obligations of Customer to Global pursuant to this Agreement.  If and when Customer fails to pay any amounts
due to Global hereunder, Global shall have all of the rights and remedies of a
secured party, and Customer shall have all of the obligations of a debtor,
under the Uniform Commercial Code as in effect in the jurisdiction where the
Terminal is located.

 

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6.             Quantity

 

6.1           Global
agrees to furnish Customer with Product storage.  Global shall not loan, exchange, or use
(directly or indirectly) for its benefit or for the benefit of any other user
at the Terminal or otherwise, Customer’s Product without the prior written
consent of Customer.

 

6.2           All
quantity determinations herein shall be corrected by 60 degrees F and shall be
measured in U.S. gallons of two hundred thirty-one (231) cubic inches and
forty-two (42) gallons to the Barrel in accordance with the latest supplement
or amendment to ASTM-IP Petroleum Measurement Tables (ASTM designation D1250)
Table 6B.

 

6.3           Unless
otherwise specified, quantities delivered (a) into or from tankers or
barges shall be measured by Terminal tank gauges and (b) into or from
transport trucks shall be measured by calibrated meters, or calibration tables
when meters are not available.

 

6.4           Upon
delivery of Products to Global’s storage as provided in Section 11.2
hereof, by Customer or any carrier for Customer’s account, Global shall be
solely responsible for all loss (other than loss of Product), damage or injury
to persons or property arising out of possession of such Products, except for such
as may be caused by the negligence or willful misconduct of Customer or
Customer’s agents, or by failure of Customer or Customer’s agents to observe or
perform Customer’s obligations hereunder.

 

6.5           In
the event independent inspectors are used by Customer, the cost of these
inspectors will be at Customer’s sole expense.

 

7.             Product
Gains and Losses

 

7.1           Subject
to the provisions of Section 7.2, Customer will assume gains and losses
based on Customer’s Throughput of all Products, (corrected to 60 degrees
F.).  Actual variations will be reported
by Global and added/deducted monthly from Customer’s inventory through book
inventory adjustments.

 

7.2           Product
loss determinations under this Section will be based on book inventory as
shown on Global’s books and records at the time of loss.

 

8.             Records

 

8.1           Global
will furnish to Customer, on a monthly basis, a statement of activity for the
prior month as relates to Customer’s Product. 
Global will complete and deliver to Customer copies of such records as
are required for the proper accounting of Product handled under the terms of
this Agreement.

 

8.2           Customer
shall have 20 days from receipt of the monthly statement to review and advise
of apparent discrepancies, if any. 
Global then shall have 30 days to either adjust its records or provide
documentation to support the quantities delivered or received.  Customer will have the right to audit, at its
cost and expense and during 

 

7

 

ordinary business
hours, the accounting records and other pertinent documents which relate to
Terminalling Services provided for Customer’s Product under this Agreement and
to take physical inventory, if required in Customer’s opinion, to verify the
related inventory records.  Global will retain
these records and documents so to be available to Customer for audit for a
period of 13 months.

 

8.3           Global
will ensure that all billings and reports rendered to, and financial
settlements made with, Customer pursuant to this Agreement will be complete and
accurate.  Global will notify Customer
promptly upon discovery of any mistakes and inaccuracies in any billing, report
or financial settlement previously submitted to Customer.

 

8.4           Global
will forward all inventory reconcilations, daily paper (including dispatch
bills of lading) and monthly invoices to:

 

Global Companies LLC

800 South Street, Suite 200

P.O. Box 9161

Waltham, MA 02454-9161

Attn:  D.J. Donovan

 

8.5           Customer
will return all statements, all reconciliations and related paperwork to:

 

Global Petroleum Corp.

800 South Street, Suite 200

P.O. Box 9161

Waltham, MA 02454-9161

Attn:  CFO

 

9.             Quality

 

9.1           Customer
agrees that the quality of all Products received into storage by Global for
Customer’s account will meet or exceed industry minimum Product
specifications.  Product quality will be
verified by an independent inspector’s analysis prior to discharge into Global’s
Terminal and the cost of such analysis will be borne by Customer.

 

9.2           Customer
shall furnish Global with the independent inspector’s analysis prior to Global’s
receipt of any Product.  Global reserves
the right to refuse to accept any Product into storage unless Global has
previously received an independent inspector’s analysis satisfactory to Global.

 

10.           Heat

 

10.1         Customer
will provide #2 oil used for Terminal to maintain minimum Product temperature
as required.  To determine said quantity,
the actual amount of #2 oil used will be based on a physical gauge of the
boiler tank at the beginning of each month, 

 

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plus receipts into
the boiler tank, minus the ending inventory in the boiler tank at month’s
end.  The amount of oil used will be
deducted monthly from Customer’s inventory.

 

11.           Title
and Custody

 

11.1         Customer
represents and warrants to Global that Customer has and will have good and
marketable title to all Product delivered to the Terminal, free and clear of
all liens and other encumbrances. Title to Customer’s Product stored at the
Terminal shall remain in Customer and shall be free and clear of all liens and
encumbrances, other than the security interest of Global hereunder.

 

11.2         Global
will be deemed to have custody of Product delivered by Customer at the time it
passes through the flange connection between the delivery line and Global’s
receiving line.  Delivery of Product by
Global to Customer for its account will occur when (a) it passes between
Global’s truck rack delivery line and Customer’s designated trucks and (b) it
passes between Global’s dock line flange and the marine vessel’s receiving hose
or the marine vessel’s manifold if Terminal hoses or load arms are used.

 

11.3         Upon
delivery of Product to Customer or its agents for Customer’s account, Customer
will thereafter be solely responsible for compliance with all governmental rules and
regulations pertaining to such Product, and will be solely responsible for all
claims, losses, damages, or injuries to persons or to property arising out of
the transportation, possession or use of such Product, except for such as may
be caused by the negligence of Global, its agents or employees.  In no event will Global be liable for any
incidental or consequential damages or injuries arising from the use of such
Product, or for the failure of such Product to comply with any governmental rule or
regulation.

 

12.           Reservation
of Right to Throughput for or Exchange with Third Parties

 

12.1         Global
shall not enter into new throughput and/or exchange agreements with third
parties relating to the Terminal during the term of this Agreement.

 

12.2         Customer
may not enter into any throughput, exchange agreements or other product
agreements of any kind or nature with third parties relating to the use of the
Terminal as contemplated by the Agreement without Global’s prior approval,
which approval shall not be unreasonably withheld and shall be limited to
ensuring that Global be the beneficiary of indemnification provisions in form
and content reasonably satisfactory to Global from said third parties.   

 

13.           Intentionally
deleted.

 

14.           Taxes

 

14.1         Customer
will pay any and all taxes (other than income taxes), charges and/or
assessments on the Product of Customer covered under this Agreement and levied
against the storage, handling, transportation, use, or ownership of such
Product, or upon the Terminalling Services provided hereunder, which Global may
be required to pay or 

 

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collect pursuant
to any federal, state, county or municipal law or authority now in effect or
hereafter to become effective.  Any and
all taxes (other than income taxes), charges and/or assessments on any
improvements made by or for and at the request of Customer under the terms of
this Agreement will be paid by Customer on demand of Global. 

 

14.2         During
the Contract Year commencing on January 1, 2006, and during each
successive Contract Year of the Initial Term and each applicable additional
year (if any) thereafter, Customer shall pay to Global an amount equal to the
amount that the real estate taxes and/or assessments assessed on or against the
Terminal Premises by the City of Revere for each tax period exceed the real
estate taxes and/or assessments assessed on or against the Terminal Premises
for the corresponding tax period during the City of Revere’s 2005 fiscal
year.  Said amounts shall be due and
payable to Global within ten (10) days after Global makes and provides
evidence of the payment thereof to Customer (which evidence shall include a
copy of the then current real estate tax invoice and the corresponding invoice
from the 2005 fiscal year). 

 

14.3         The
Parties hereby acknowledge that the Terminal (including any modifications
subsequent to the execution of this Agreement) is legally and beneficially
owned by Global and the related entities identified on the first page of
this Agreement.  Accordingly, Global will
be entitled to claim all tax depreciation and investment tax credit for all
Terminal property and facilities, and Customer shall make no claim to any such
depreciation or investment tax credit.

 

14.4         If
claim is made against Global for any such tax (other than income taxes), fee,
or charge not now in effect, Global will, at Customer’s expense, take such
action as Customer may reasonably direct to a challenge or opposition to such
asserted liability and any payment by Global of such tax, fee, or charge will
be made under protest, if protest is required and proper.

 

15.           Insurance

 

15.1         Customer
will be responsible for all losses of Product caused by its negligence or
willful misconduct or that of its agents, employees or authorized
representatives.  Global will be
responsible for all losses of Product while in its custody caused by its
negligence or willful misconduct or that of its agents, employees or authorized
representatives.  All losses of Product
caused by the act of a third party or an act of God or other catastrophic event
beyond the control of either Party will be shared in proportion to each Party’s
share of ownership of the Product. 
Customer shall bear all risk of loss for the Products of Customer in
storage with Global at the Terminal, and shall be solely responsible for
obtaining any insurance with respect such losses for which it is responsible,
except as provided above in this Section 15.1.

 

15.2         During
the term of this Agreement, both Parties shall carry Worker’s Compensation,
Employer’s Liability insurance and any other legally required employer’s
insurance in accordance with and meeting all requirements of applicable local,
state and federal law.  Such liability
insurance will be provided with limits of not less than One 

 

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Million Dollars
($1,000,000) each accident and One Million Dollars ($1,000,000) each employee,
One Million Dollars ($1,000,000) per policy year for bodily injury by disease.

 

15.3         During
the term of this Agreement, both Parties shall, each at their own expense,
carry Commercial General Liability insurance including, without limitation,
coverage for Contractual Liability and Sudden and Accidental Pollution
Liability.  Such coverage shall insure
each Party and name the other as an additional insured for injury and death to
persons and damage to property including Pollution Liability arising out of the
operations of each hereunder.  Such
coverage shall be in an amount not less than One Million Dollars ($1,000,000)
combined single limit per occurrence.

 

15.4         During
the term of this Agreement, Customer shall, at its own expense, carry
Automobile/Truck Liability insurance covering bodily injury and death and
property damage to third parties arising out of the ownership, operation,
maintenance, use, loading and unloading of vehicles said Automobile/Truck
Liability insurance shall cover all owned, non owned and hired vehicles used by
Customer/Carrier including Contractual Liability and Sudden and Accidental
Pollution Liability protection via a buyback endorsement in amounts not less
than a combined single limit for bodily injury and property damage of One
Million Dollars ($1,000,000) per accident or occurrence.

 

15.5         During
the terms of this Agreement, Customer shall provide excess coverage for the
insurance required in Sections 15.2, 15.3 and 15.4 in the form of Umbrella
Liability insurance for Employers Liability, Commercial General Liability,
Automobile/Truckers Liability and Pollution Liability, and Global shall provide
excess coverage for the insurance required in Sections 15.2 and 15.3 in the
form of Umbrella Liability insurance for Commercial General Liability and
Pollution Liability, in an amount not less than Ten Million Dollars ($10,000,000)
per accident or occurrence.

 

15.6         Prior
to any renewal of this Agreement, each Party shall provide the other Party with
certificates of insurance evidencing the issuance of the required policies and
stating that they are in force and that such policies will not be cancelled or
materially changed without thirty (30) days’ prior written notice to the other.
Customer’s insurance policies referenced in Sections 15.3 and 15.5 shall name
Global as additional insured and be obtained from companies satisfactory to
both Parties.

 

15.7         Both
Parties shall, to the extent reasonably possible, obtain the liability
insurance required hereunder on an occurrence basis rather that a claims-made
basis. In the event coverage is provided on a claims-made basis, both Parties
shall, prior to the commencement of the Original Terminal Agreement, provide
each other with satisfactory evidence that the retroactive date of the
claims-made policy is prior to the date of commencement of the Original
Terminal Agreement and that the then remaining aggregate amount of coverage is
and will be sufficient to meet the minimum amount of coverage required
hereunder.  

 

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16.           Indemnity

 

16.1         Customer
unconditionally, irrevocably and absolutely agrees to protect, defend,
indemnify and hold harmless Global and Global’s subsidiaries and affiliates,
and its and their present and future directors, direct and indirect
shareholders, officers, employees, agents, attorneys, representatives, heirs,
personal representatives, successors and assigns (collectively the “Global
Indemnitees”) from any and all losses, penalties, fines, liabilities (including
strict liability), costs, damages and expenses, including reasonable attorneys’
fees and consultants’ fees, any of which are incurred, paid or sustained at any
time by any of the Global Indemnitees in connection with, arising out of, based
upon, relating to or otherwise involving: (i) any blending activities
performed at and in accordance with Customer’s direction; (ii) any breach
by Customer of any of its representations and warranties under this Agreement;
or (iii) failure by Customer to observe or perform any of the terms or
conditions of this Agreement to be observed or performed by it; provided, however, that this indemnity shall
not apply to losses, penalties, fines, liabilities, costs, damages and expenses
to the extent arising out of Global’s or its agents’ negligent performance of,
or negligent failure to perform, its responsibilities under this Agreement.

 

16.2         Global
shall defend and indemnify Customer and Customer’s subsidiaries and affiliates,
and its and their present and future directors, direct and indirect
shareholders, officers, employees, agents, attorneys, representatives, heirs,
personal representatives, successors and assigns against all claims, demands,
liabilities and expenses (including reasonable attorneys’ fees) arising out of
or in connection with: (i) any breach by Global of any of its
representations and warranties under this Agreement; (ii) failure by
Global to observe or perform any of the terms or conditions of this Agreement
to be observed or performed by it; or (iii) the injury or death of any and
all persons or the damage to any property caused by the performance of Global’s
obligations under this Agreement, provided, however, that this indemnity shall not
apply to losses, penalties, fines, liabilities, costs, damages and expenses to
the extent arising out of Customer’s or its agents’ negligent performance of,
or negligent failure to perform, its responsibilities under this Agreement.

 

16.3         The
Parties recognize that there is some overlap among their respective
shareholders, directors, officers, agents and other representatives
(collectively, “Party Representatives”). 
In this regard, the Parties understand and agree that the agreements to
defend and indemnify a Party Representative extend only to a Party
Representative in his or its capacity as a shareholder, director, officer,
agent or other representative of a Party.

 

17.           Assignability

 

17.1         This
Agreement will be binding upon and shall inure to the benefit of the successors
and assigns of the Parties.  Neither
Party shall assign its interest in this Agreement or any of its rights and
obligations hereunder without the prior written consent of the other Party,
which consent shall not be unreasonably withheld or delayed. 

 

12

 

17.2         Any
attempted assignment prohibited by Section 17.1 above will be void and
without effect and will be ground for termination of this Agreement.

 

18.           Force
Majeure

 

18.1         Neither
Party will be responsible for damages caused by delay or failure to perform its
obligations in whole or in part hereunder (other than its obligation to make
payment hereunder, if such delay or failure is attributable to a storm, flood,
or other act of God; strike, lockout or other labor dispute; riot; civil
disorder; explosion; fire; act of war or compliance with an order or rule or
regulation of any governmental authority; sabotage; accident; breakdown; delay
in transportation; or other cause beyond the control of the affected Party,
whether or not similar to those enumerated above, all of which will be
considered events of force majeure. 
Acts of God included in Section 18.1 do not apply to uninsured
losses of Customer’s Product, which losses will be treated as provided in Section 7.

 

18.2         The
Party affected by an event of force majeure will make all reasonable
efforts to remove the event of force majeure or mitigate its effect;
however, it is understood and agreed that the settlement of any strike,
lockout, or other labor dispute will be entirely within the discretion of the
Party involved in such dispute. The term of the Agreement will be extended for
a period of time equal to the length of the interruption cause by the event of force
majeure; however, in no event will such period of extension be for more
than six (6) months. If an event of force majeure continues for a
period of more than six (6) consecutive months, the Party that is not affected
by such event shall have the right to terminate this Agreement on sixty (60)
days’ prior written notice.

 

19.           Damage
or Destruction of the Terminal

 

19.1         The
Terminal consists of several discrete facilities including the storage tanks,
the truck loading rack, the dock, and pipeline ingress and egress
facilities.  If any of these facilities
becomes damaged or destroyed and, as a result of such damage or destruction,
Global’s ability to provide any or all of the Terminalling Services is
substantially impaired, Global will have no obligation to rebuild the facility,
notwithstanding any provision of this Agreement to the contrary. 

 

19.2         If
such damage occurs and, as a result thereof, storage capacity at the Terminal
is reduced to less than 600,000 barrels for a period of more than 9 months, then Customer shall have the right to terminate the
Agreement. In all other instances of such damage, Global will notify Customer
in writing within forty-five (45) days of such occurrence, whether the damaged
facility will be rebuilt, and in the event of rebuilding, the expected date of
completion.  Charges and Payments
pursuant to Section 5 of the Agreement shall be proportionate to the
reduction in storage capacity verified as a result of the damage or destruction
while the Terminal is being rebuilt or repaired

 

19.3         This
Agreement shall continue in force upon the completion of such rebuilding, and
the term of this Agreement shall be extended by a period equal to the time
required to complete the rebuilding.

 

13

 

19.4         Should
Global give Customer written notice of its intention not to rebuild any damaged
or destroyed facility, and provided that the storage capacity of the Terminal
is less than 600,000 barrels, Customer’s sole remedies shall be a reduction in
the Charges and Payments pursuant Section 5 proportionate to the reduction
in storage capacity verified as a result of the damage or destruction or to
terminate this Agreement upon 30 days’ notice.

 

20.           Environmental
Liability

 

20.1         In
the event of any Product spill or other environmentally polluting discharge at
or about the Terminal Premises, the costs of containment and clean-up and/or
any resulting liability for such spills or discharges shall be the
responsibility of each party whose negligence caused such spill or discharge in
proportion to the percentage of negligence attributable to such party.  Customer shall be liable for any negligence
by the operator of Customer’s receiving or delivering vessel or vehicle.

 

20.2         In
the event of any Product spill or other environmentally polluting discharge
caused by Customer or Customer’s agent, Global is authorized to commence
containment or clean-up operations as deemed appropriate or necessary by Global
or required by any governmental authority and shall notify Customer promptly of
such operations.  In the latter event,
Customer shall comply with all relevant and applicable federal, state and local
governmental requirements, guidance, orders, rules, regulations and statutes, including
health and safety procedures and clean-up standards.  Customer may, at Customer’s option, either
assume responsibility for the containment or clean-up operations or allow
Global to complete such operations. In either event Global shall have, the right,
at its option, to participate in all such containment and clean-up
operations.  If Global undertakes any
containment or clean-up operations, Customer shall reimburse Global for its
share of such costs and liabilities together with interest on any past due
monies, at the rate provided in Section 5.3.

 

20.3         Global
and Customer shall cooperate for the purpose of obtaining reimbursement in the
event that a third party shall be legally responsible for costs or expenses
borne by Customer and/or Global under this Section 20.

 

21.           Rights
of First Refusal

 

21.1         If,
during the Initial Term or any additional year thereafter of this Agreement,
Global receives a bona fide offer to purchase all or any portion of the
Terminal or Terminal Premises, and Global desires to accept such offer, Global
shall first submit to Customer a copy of such offer with full disclosure of all
terms and provisions thereof.  Customer
will have twenty-one (21) days following receipt thereof in which to notify
Global in writing of its election to match the third party offer to purchase
all or such portion of the Terminal or Terminal Premises.  If Customer does not elect to match such
third party offer, Global may proceed to enter into a purchase and sale
agreement with said third party, upon substantially the same terms and
conditions previously disclosed to and rejected by Customer.  Customer thereafter waives all rights to the
purchase of all or such portion of the Terminal or Terminal Premises, as applicable,

 

14

 

provided that
Global and the said third party consummate the purchase of all or such portion
of the Terminal or Terminal Premises pursuant to the aforementioned purchase
and sale agreement.  In the event Global
and the said third party terminate their purchase and sale agreement without
consummating the purchase and sale of all or such portion of the Terminal or
Terminal Premises, Customer’s rights to match a third party offer under this Section 21.1
shall again become effective.

 

21.2         If,
during the Initial Term or any additional year thereafter of this Agreement,
Global receives a bona fide offer to lease all or any portion of the Terminal
or Terminal Premises, and Global desires to accept such offer, Global shall
first submit to Customer a copy of such offer with full disclosure of all terms
and provisions thereof.  Customer will
have twenty-one (21) days following receipt thereof in which to notify Global
in writing of its election to match the third party offer to lease all or such
portion of the Terminal or Terminal Premises. 
If Customer does not elect to match such third party offer, Global may
proceed to enter into a lease agreement with said third party, upon
substantially the same terms and conditions previously disclosed to and
rejected by Customer.  Customer
thereafter waives all rights to lease all or such portion of the Terminal or
Terminal Premises, as applicable, for the lease period (as extended, if
applicable) set forth in the aforementioned lease agreement, provided that
Global and the said third party enter into the aforementioned lease
agreement.  Upon failure to consummate or
termination of the lease agreement between Global and such third party,
Customer’s rights to match a third party offer under this Section 21.2
with respect to the previously leased Terminal or Terminal Premises, or
applicable portion thereof, shall again become effective. 

 

21.3         Customer’s
rights of first refusal under Sections 21.1 and 21.2 above shall survive the
termination of this Agreement and expire at 5:00 p.m. on September 30,
2014.

 

22.           Compliance
with Laws and Safety Regulations; Employees

 

22.1         Each
Party represents and warrants that, to the best of its knowledge, none of the
Products covered by this Agreement is derived or manufactured from crude
petroleum or gas which was produced or withdrawn from storage in violation of
any applicable federal, state or other governmental law, or in violation of any
applicable rule, regulation or order. 
Each Party represents and warrants that to the best of its knowledge,
Product composition satisfies all specifications established by federal, state
and local governmental authorities.  Each
Party represents and warrants that, to the best of its knowledge, that the
Products covered by this Agreement are produced in accordance with the
Walsh-Healey Act and in accordance with the Fair Labor Standards Act of 1938,
as said acts have been amended, and that all trucks, tanks and other equipment
employed by it in connection with this Agreement are and will be constructed,
operated and maintained in accordance with applicable legal requirements. Each
Party agrees to comply with all other applicable statutes, rules, regulations,
orders and directives.

 

22.2         Customer
shall comply and cause Customer’s employees, agents and other representatives
entering on the Terminal Premises to comply with all safety and health
regulations of Global, provided Global provides Customer with written copies of
such 

 

15

 

regulations and
applicable provisions of federal, state or local safety laws, rules,
regulations or orders. Global, however, will not be required to supervise
Customer nor shall Global be held responsible for Customer’s compliance with
any safety or health rules, laws, regulations or orders.

 

22.3         Global
shall have the right from time to time to specify gates or entrances for use by
all employees, agents and authorized representatives of Customer.

 

22.4         No
Customer employee, agent, or authorized representative will be deemed to be an
employee of Global for any purpose, nor shall any employee, agent or authorized
representative of Global be deemed to be an employee of Customer for any
purpose. 

 

23.           Notice

 

23.1         Except
as otherwise specifically provided herein, any notice, demand or other
communication required or permitted to be sent to Global under the terms and
conditions of this Agreement, will be sufficient if personally served, sent by
confirmed facsimile transmission or if posted by certified United States mail
addressed to:

 

Global Petroleum Corp.

P.O. Box 9161

800 South Street, Suite 200

Waltham, MA 02454-9161

Attn:  CFO

Facsimile:  781-398-4232

 

or to such substitute
address as may from time-to-time be designated in writing.

 

23.2         Any
notice, demand or other communication required or permitted to be sent to
Customer under the terms and conditions of this Agreement will be sufficient if
personally served, sent by confirmed facsimile transmission or if posted by
certified United States mail, addressed to:

 

Global
Companies LLC

P.O. Box 9161

800 South Street, Suite 200

Waltham,
MA 02454-9161

Attn:  D. J. Donovan

Facsimile:
781-398-4160

 

or to such substitute
address as may from time-to-time be designated in writing.

 

23.3         All
notices served pursuant to this Section will be deemed received upon
personal service or 96 hours after posting to the proper address with all
charges prepaid.

 

16

 

24.           Waiver

 

24.1         No
waiver by Global or Customer of any default of the other and no failure or
delay in exercising any right or remedy under this Agreement will operate as a
waiver of any future default whether of like or different character or exclude
any future exercise of such right or remedy.

 

25.           Default
and Termination

 

25.1         Each
of the following will constitute an event of default hereunder:

 

A.            Failure
to comply fully with any of the terms or conditions hereof;

 

B.            Any
breach of a representation or warranty hereunder; or

 

C.            Adjudication
of insolvency or bankruptcy under any insolvency or bankruptcy law or an
assignment for the benefit of creditors or an appointment of receiver of
Customer or of its assets.

 

25.2         The
defaulting Party will have ninety (90) days to cure any default under clause A
or B following receipt of written notice from the nondefaulting Party.  If such default is not cured within said
ninety (90) day period, the nondefaulting Party will have the right to
terminate this Agreement by written notice.

 

25.3         In
the event of termination by either Party for any reason, or upon the expiration
of this Agreement, Customer will remove all of its Product at the Terminal and
any additive or other equipment on the Terminal Premises within (30) thirty
days of termination or expiration, and pay all charges as provided in this Agreement.  Any Product or additive or other equipment
remaining at the Terminal after such date may be removed by Global without
liability.  Customer will bear all costs
of removal, including, but not limited to, transportation, storage, inspection,
booming and disposal.

 

26.           Whole
Agreement

 

This
Agreement, including all exhibits and schedules hereto, embodies the whole
Agreement of the Parties and supersedes any and all previous written or oral
agreements, understandings and negotiations.

 

27.           Compliance
with Executive Orders

 

If
this contract is subject to Executive Order 11246, as amended, a copy of
Certificate of Compliance is made a part hereof and either is attached hereto
for signature and return or has been previously filed.  To the extent required by applicable laws and
regulations, this contract also includes and may be subject to Executive Order
11738 requiring a Certificate of Compliance with Environmental Regulations,
Executive Order 11625 requiring a Certificate of Compliance with Minority
Business Enterprises Regulations, and the Small Business Act and the Small
Business Investment Act of 1958, as amended, and to the affirmative action
clauses concerning disabled veterans and 

 

17

 

Veterans of the Vietnam
era and employment of the handicapped. 
The appropriate clauses are incorporated herein by reference.

 

28.           Governing
Law

 

This
Agreement shall be subject to and governed by the laws of the Commonwealth of
Massachusetts, excluding any conflicts-of-law rule or principle that might
refer the construction or interpretation of this Agreement to the laws of
another jurisdiction.

 

29.           No
Agency

 

The
subject matter of the Agreement is the receipt, storage, withdrawal and
exchange of the Products identified herein. 
There is no agency, partnership or joint venture being created by the
existence of this Agreement.  Neither
Party shall represent itself to be the agent, servant or partner of the other.

 

30.           Eminent
Domain

 

If
Global’s use of all or any substantial part of the Terminal Premises for the
storage and handling of the Products shall be restrained or enjoined by court
order, or restricted or terminated by any governmental or regulatory authority,
or the Terminal or any signification portion of the Terminal Premises is
condemned for public use, Global shall notify Customer thereof and either Party
may terminate this Agreement by giving written notice to the other Party within
ten (10) days after the effective date of said restraint, injunction,
restriction, termination or condemnation. 
If the restraint or condemnation affects only a portion of the Terminal
Premises and reduces the capacity of the Terminal, Customer’s maximum and
minimum Throughput and payment obligations shall be adjusted accordingly or
Customer may terminate this Agreement by giving written notice to Global.  In the event the Terminal Premises or any
part thereof are condemned for public use, all compensation and damages of any
type whatsoever awarded for such condemnation, whether whole or partial, shall
belong to and be the property of Global except that Customer shall have the
right to claim and recover from the condemning authority, but not from Global,
such compensation as may be separately awarded or recoverable by Customer in
Customer’s own right on account of any and all damage to Customer’s business by
reason of such condemnation and for or on account of any cost or loss to which
Customer might suffer in removing Customer’s Products and equipment; provided,
however, such claim shall not diminish or otherwise adversely affect Global’s
award.

 

31.           Amendment
or Modification 

 

This
Agreement may be amended or modified from time to time only by the written
agreement of all the Parties hereto; provided, however, that Customer may not,
without the prior approval of the Conflicts Committee of Global Partners LP,
agree to any amendment or modification of this Agreement that Global Partners
LP’s General Partner determines will adversely affect the holders of Global
Partners LP’s Common 

 

18

 

Units.  Each such instrument shall be reduced to
writing and shall be designated on its face an “Amendment” or an “Addendum” to
this Agreement.

 

 

[THE REMAINDER OF THIS PAGE IS
INTENTIONALLY LEFT BLANK]

 

19

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
above written.

 

 

	
   

  	
  GLOBAL
  PETROLEUM CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alfred A.
  Slifka

  	
   

  
	
   

  	
   

  	
  Alfred A. Slifka

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GLOBAL
  COMPANIES LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward J.
  Faneuil

  	
   

  
	
   

  	
   

  	
  Edward J.
  Faneuil

  
	
   

  	
   

  	
  Executive Vice
  President, General

  Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GLOBAL
  MONTELLO GROUP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward J.
  Faneuil

  	
   

  
	
   

  	
   

  	
  Edward J.
  Faneuil

  
	
   

  	
   

  	
  Secretary and
  General CounselExhibit 10.6

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”) is made as of October 4, 2005 (the “Effective
Date”), by and between Global GP LLC, a Delaware limited liability company
(the “Company”), and Eric Slifka (the “Executive”).

 

WHEREAS, the Company and the Executive have agreed that the Executive
will be employed as the Company’s President and Chief Executive Officer; and

 

WHEREAS, the Company and the Executive mutually desire to formalize the
employment arrangement of the Executive and to agree upon the terms of the
Executive’s employment by the Company and, in addition, to agree as to certain
benefits of said employment; and

 

NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and obligations contained herein, the Company and the Executive
hereby agree as follows:

 

1.             Employment and
Term of Employment.  Effective as of
the Effective Date and continuing for the period of time set forth herein, the
Executive’s employment by the Company shall be subject to the terms and
conditions of this Agreement.  Unless
sooner terminated pursuant to other provisions herein, the Company agrees to
employ the Executive for the period beginning on the Effective Date and ending
on December 31, 2008 (the “Term”).

 

2.             Position and Duties.  During the Term, the Company shall employ the
Executive as the President and Chief Executive Officer of the Company, or in
such other positions as the parties mutually agree.  The Executive shall have such powers and
duties and responsibilities as are customary to such position and as are
assigned to the Executive by the Board of Directors of the Company in
connection with the Executive’s general management and supervision of the
operations of the Company, reporting only to the Board of Directors of the
Company.  The Executive’s employment
shall also be subject to the policies maintained and established by the Company
that are of general applicability to the Company’s employees, as such policies
may be amended from time to time

 

3.             Other Interests.  During the Term, the Executive shall devote
such of his working time, attention, energies and business efforts to his
duties and responsibilities as the President and Chief Executive Officer of the
Company as are reasonably necessary to carry out the duties and
responsibilities generally pertaining to that office.  During the Term, except as otherwise
restricted by that Omnibus Agreement, dated as of October 4, 2005, among the Company, Global
Partners LP, a Delaware limited partnership (the “Partnership”), the
Executive and certain other parties thereto (the “Omnibus Agreement”),
the parties recognize and agree that the Executive may engage in other business
activities that do not conflict with the business and affairs of the Company or
interfere with the Executive’s performance of his duties and responsibilities
hereunder.  The restrictions on the
Executive and his Affiliates (as defined in the Omnibus Agreement) contained in
Section 2.1 of the Omnibus Agreement shall (a) continue for the
lesser of two (2) years from the Date of Termination or December 31,
2010 if the Executive’s employment is terminated as described in paragraph 7(b) (Permanent
Disability), 7(d) (without Cause), 7(e) (by the Executive), 7(f) (Constructive
Termination; breach by the Company), 

 

 

7(g) (Change of Control) or 8(e) (nonrenewal),
(b) continue until the earlier of three (3) years or December 31,
2010 if the Executive’s employment is terminated as described in paragraph 7(c) (termination
for Cause) or (c), at the election of the Executive by written notice to the
Company, continue for the lesser of one (1) year from the Date of
Termination or December 31, 2010 if the Executive’s employment is
terminated pursuant to paragraphs 7(d), 7(f) or 8(e), provided in the case
where the Date of Termination is before January 1, 2007, the Executive has
made the payment to the Company described in paragraph 8(c)(ii) (an “Early
Termination”).  For purposes of this
Agreement, a “Change of Control” shall occur when none of the Slifka
Persons (as defined in the Omnibus Agreement), individually or in the
aggregate, owns a majority of the member interests in the Company.  For purposes of this Agreement, “Constructive
Termination” shall mean termination of the Executive’s employment in
accordance with paragraph 7(f) as a result of any substantial diminution,
without the Executive’s written consent, in the Executive’s working conditions
consisting of (a) a material reduction in the Executive’s duties and
responsibilities, (b) any change in the reporting structure so that the
Executive no longer reports solely to the Board of Directors of the Company or (c) a
relocation of the Executive’s place of work further than forty (40) miles from
Waltham, Massachusetts.  If any court
determines that any of the provisions of this paragraph 3 is invalid or
unenforceable, the remainder of such provisions shall not thereby be affected
and shall be given full effect without regard to the invalid provisions. If any
court construes any of the provisions of this paragraph 3, or any part thereof,
to be unreasonable because of the duration of such provision or the geographic
scope thereof, such court shall have the power to reduce the duration or
restrict the geographic scope of such provision and to enforce such provision
as so reduced or restricted.

 

4.             Duty of Loyalty.  The Executive acknowledges and agrees that
the Executive owes a fiduciary duty of loyalty to act at all times in the best
interests of the Company.  In keeping
with such duty, the Executive shall make full disclosure to the Company of all
business opportunities pertaining to the business of the Company or any of its
subsidiaries and shall not appropriate for the Executive’s own benefit business
opportunities concerning the business of the Company or any of its subsidiaries,
except as otherwise permitted by the Omnibus Agreement.

 

5.             Place of
Performance.  Subject to such
business travel from time to time as may be reasonably required in the
discharge of his duties and responsibilities as the President and Chief Executive
Officer of the Company, the Executive shall perform his obligations hereunder
in, or within forty (40) miles of, Waltham, Massachusetts.

 

6.             Compensation.

 

(a)           Base Salary.  During the Term, the Executive shall be
entitled to a base salary as described below in this paragraph 6(a).  The Executive shall receive a base salary for
the period from the Effective Date through December 31, 2005 (the “2005
Period”) of $1.0 million, multiplied by the number of days in the 2005
Period divided by 360.  The annual base
salary for the year beginning on and after January 1, 2006 shall be $1.0
million.  During the Term, the annual
base salary for years beginning on and after January 1, 2007 shall be $1.0
million and shall be increased each January 1 by the percentage increase
in the U.S. Bureau of Labor Statistics Revised Consumer Price Index for All
Urban Consumers in the Boston metropolitan area for the preceding twelve (12)
calendar months, January to January. 
A decline in the appropriate index shall not result in a reduction of
the Executive’s base salary; however, 

 

2

 

the same Consumer Price Index points shall
not be paid twice.  The Executive’s base
salary, as from time to time increased in accordance with this paragraph 6(a),
is hereafter referred to as “Base Salary”.  The Base Salary shall be paid in equal
installments pursuant to the Company’s customary payroll policies and
procedures in force at the time of payment but in no event less frequently than
monthly.

 

(b)           Bonus.  Except as set forth in paragraph 8, during
the Term the Executive shall be entitled to receive a bonus as described
below.  For the 2005 Period, the
Executive shall receive a bonus equal to (i) 10% of the amount, if any, by
which the combined net income of the Partnership and its subsidiaries,
including but not limited to Global Operating LLC, Global Companies LLC,
Chelsea Sandwich LLC, Global Montello Group Corp. and Glen Hes Corp., for the
twelve (12) months ending December 31, 2005 exceeds $12,000,000 less (ii) the
product of the number of days in the 2005 Period and $911.11.  Combined net income shall be determined in
accordance with generally accepted accounting principles, consistently applied,
as certified by the Company’s independent auditors.  The Company and the Executive agree that in
connection with said determination of combined net income the following shall
be added back to combined net income: (i) deductions for bonuses paid
commensurate with the public offering of the Partnership in the amount of
$3,100,000, (ii) additional depreciation and amortization expense
resulting from the application of Securities and Exchange Commission Staff Accounting Bulletin No. 54, ‘‘Push
Down Basis of Accounting Required in Certain Limited Circumstances,” (iii) so-called
tax leakage resulting from income that is not “qualifying income” as defined in
Section 7704 of the Internal Revenue Code of 1986, as amended (the “Code”)
and (iv) interest expenses related to the indebtedness outstanding under the
Term Loan Agreement dated as of July 2, 2004 by and among Global Petroleum
Corp., as the borrower, those entities identified as guarantors and Bank of
America, N.A. and the other lending institutions listed on Schedule 1
thereto and Bank of America, N.A., as agent. 
For the year ended December 31, 2006, in addition to any
discretionary bonus authorized by the Compensation Committee of the Board of
Directors of the Company, to the extent the aggregate amount of Available Cash
that is deemed to be Operating Surplus, excluding any additional cash and cash
equivalents resulting from Working Capital Borrowings, for the four Quarters
ending December 31, 2006 exceeds $19,000,000, the Executive shall be
entitled to receive a one-time cash payment in the amount of such excess up to
$500,000.  Such payment, if any, shall be
paid to the Executive as soon as practicable after payment of the Minimum
Quarterly Distribution for the Quarter ending December 31, 2006 owed to
the General Partner and to each Unitholder, but no later than March 31,
2007.  Capitalized terms used in this
paragraph 6(b) but not defined herein shall have the meanings given to
them in the First Amended and Restated Agreement of Limited Partnership of the
Partnership, dated as of October 4,
2005 (the “Partnership Agreement”).  For any year after 2006, the Executive shall
be paid a bonus in such amount, if any, as shall be determined by the
Compensation Committee of the Board of Directors of the Company. The Executive’s
bonus, as described above in this paragraph 6(b), is hereafter referred to as
the “Bonus”.

 

(c)           Expenses.  During the Term, the Company shall pay or
reimburse the Executive for all reasonable expenses incurred by the Executive
on business trips, and for all other business and entertainment expenses
reasonably incurred or paid by him during the Term in the performance of his
services under this Agreement, in accordance with past practice and with the
Company’s expense reimbursement policy as in effect from time to time upon 

 

3

 

presentation of expense statements or
vouchers or such other supporting documentation as the Company may reasonably
require.

 

(d)           Fringe Benefits.  During the Term, the Executive shall be
entitled to participate in the Company’s health insurance, pension, 401K and
other employee benefit plans in accordance with Company policies and on the
same general basis as other employees of the Company.  During the Term, the Company will also
provide the Executive with additional fringe benefits consistent with benefits
provided to the Executive under prior arrangements and in accordance with past
practice and such other benefits as may be approved by the Compensation
Committee of the Board of Directors of the Company.

 

(e)           Vacation.  During the Term, the Executive shall be
eligible for six (6) weeks of paid vacation each calendar year in
accordance with the normal vacation plan of the Company; provided, however,
that for the 2005 Period, the Executive shall be entitled to that number of vacation days reduced by the number
of vacation days that the Executive has already used during such
calendar year and prior to the Effective Date.

 

7.             Termination.

 

(a)           Death.  The Executive’s employment hereunder shall
terminate automatically upon his death.

 

(b)           Permanent Disability.  The Executive’s employment hereunder shall
terminate if the Executive becomes Permanently Disabled.  For purposes of the Agreement, “Permanent
Disability” shall mean a physical or mental disability or impairment (a “Disabling
Condition”) which renders the Executive unable, with or without reasonable
accommodation, to perform the essential functions of the Executive’s job for a
period of at least ninety (90) consecutive days and the Company has received
the opinion of a medical doctor or other appropriate health care provider, in
either case reasonably acceptable to the Company and the Executive, that such
Disabling Condition is either expected to continue for at least an additional
ninety (90) consecutive days or to be of indefinite duration.

 

(c)           Termination by the
Company for Cause.  The Company may
terminate the Executive’s employment hereunder for Cause following (i) notice
to the Executive of not less than fifteen (15) days setting forth in detail the
nature of such Cause and the date and time established for hearing before the
Board of Directors of the Company and (ii) an opportunity to be heard
before the Board of Directors of the Company at the conclusion of such notice
period, at which the Executive shall be entitled to representation by
counsel.  For the purposes of this
Agreement, “Cause” shall mean the Executive (i) has engaged in
gross negligence or willful misconduct in the performance of his duties, (ii) has
committed an act of fraud, embezzlement or willful breach of a fiduciary duty
to the Company or any of its subsidiaries (including the unauthorized
disclosure of any material secret, confidential and/or proprietary information,
knowledge or data of the Company or any of its subsidiaries); (iii) has
been convicted of (or pleaded no contest to) a crime involving fraud,
dishonesty or moral turpitude or any felony or (iv) has breached any
material provision of this Agreement or the Omnibus Agreement.

 

4

 

(d)           Termination by the
Company Without Cause.  The Company
may immediately terminate the Executive’s employment hereunder without Cause,
by giving a ninety (90)-day Notice of Termination to the Executive.

 

(e)           Termination by the
Executive.  The Executive may terminate
his employment hereunder at any time for any reason whatsoever, in the sole
discretion of the Executive, by giving a ninety (90)-day Notice of Termination
to the Company.

 

(f)            Constructive
Termination; Breach by the Company. 
The Executive may terminate his employment hereunder for Constructive
Termination or breach by the Company of a material provision of this Agreement
if the Executive gives Notice of Termination, and the Company does not correct
the circumstances constituting a basis for Constructive Termination or the
breach, as applicable, within thirty (30) days after receipt of such notice.

 

(g)           Termination due to
Change of Control.  If a Change of
Control occurs, then the Executive may terminate his employment hereunder in
the three hundred sixty (360) day-period occurring ninety (90) days after the
occurrence of the Change of Control by giving a Notice of Termination to the
Company.

 

(h)           Notice of
Termination.  Any termination by the
Company pursuant to paragraph (b), (c) or (d) above or by the Executive
pursuant to paragraph (e), (f) or (g) above shall be communicated by
written Notice of Termination to the other party hereto.  For purposes of this Agreement, a “Notice
of Termination” shall mean a notice which (i) shall state the
effective date of such termination, (ii) shall indicate the specific
termination provision in this Agreement relied upon and (iii) shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision so
indicated.

 

(i)            Date of Termination.  The “Date of Termination” shall mean (i) if
the Executive’s employment is terminated pursuant to (a) above, the date
of his death; (ii) if the Executive’s employment is terminated pursuant to
(b) above, the date the Executive becomes Permanently Disabled; (iii) if
the Executive’s employment is terminated pursuant to (c) or (d) above,
the date specified in the Notice of Termination; (iv) if the Executive’s
employment is terminated pursuant to (e) above, ninety (90) days after
Notice of Termination is given; (v) if the Executive’s employment is
terminated pursuant to (f) above, thirty (30) days after Notice of
Termination is given, provided that the Company does not correct the
circumstances or the breach, as applicable, cited in the Notice of Termination
within the thirty (30)-day period referenced in (f) above; and (vi) if
the Executive’s employment is terminated pursuant to (g) above, thirty
(30) days after Notice of Termination is given.

 

(j)            Deemed Resignation.  If the Executive’s employment is terminated
pursuant to (c) above, then such termination shall constitute an automatic
resignation of the Executive as an officer of the Company and each subsidiary
of the Company, and an automatic resignation of the Executive from the Board of
Directors of the Company and from the board of directors of any subsidiary of
the Company and from the board of directors or similar governing body of any
corporation, limited liability company or other entity in which the Company or
any 

 

5

 

subsidiary holds an equity interest and with
respect to which board or similar governing body the Executive serves as the
Company’s or such subsidiary’s designee or other representative.

 

8.             Compensation Upon
Termination or Nonrenewal.

 

(a)           Death or Permanent
Disability.  If the Executive’s
employment shall be terminated by reason of the Executive’s death or Permanent
Disability as provided in paragraph 7(a) or 7(b), respectively, then all
compensation and all benefits to the Executive hereunder shall continue to be
provided until December 31, 2008 pursuant to the terms of this Agreement;
provided, however, that (i) the Base Salary shall be equal to the Base
Salary as in effect on the Date of Termination and (ii) the fringe
benefits described in paragraph 6(d) shall be equal to the fringe benefits
as in effect on the Date of Termination. 
All such payments pursuant hereto shall be paid to the Executive or his
legal representative, as applicable. 
Notwithstanding the foregoing, if the Executive’s employment is
terminated due to Permanent Disability, the Executive shall receive the
Severance Amount described in paragraph 8(c) below, payable monthly in
twenty-four (24) equal installments beginning no later than January 1,
2009.

 

(b)           Termination by the
Company for Cause.  If the Executive’s
employment shall be terminated for Cause as provided in paragraph 7(c), then
all compensation and all benefits to the Executive hereunder shall continue to
be provided until the Date of Termination and such compensation and benefits
shall terminate contemporaneously with such termination of employment;
provided, further, that the Executive shall not be entitled to any Bonus.

 

(c)           Termination by the
Company Without Cause; Involuntary Termination by Executive.

 

(i)            If
the Executive’s employment shall be terminated pursuant to paragraph 7(d) or
7(f), then (X) if the Date of Termination is before January 1, 2007, the
Company shall (1) pay the Executive, in a lump sum on the Date of
Termination, the Base Salary as in effect on the Date of Termination that would
have been payable to the Executive for each year or portion of a year
commencing on the Date of Termination and ending on December 31, 2008, (2) pay
the Executive, in a lump sum on the Date of Termination, the Bonus earned
pursuant to the terms of this Agreement, if any, in the calendar year
immediately preceding the Date of Termination and unpaid at the Date of
Termination, (3) provide the fringe benefits described in paragraph 6(d) as
in effect on the Date of Termination until December 31, 2008, and (4) pay
the Executive, in a lump sum on the Date of Termination, an amount equal to the
product of 75% and the sum of (aa) the Base Salary as in effect on the Date of
Termination and (bb) the average of Bonuses earned pursuant to this Agreement,
if any, in the two calendar years immediately preceding the Date of Termination
(the “Severance Amount”), or (Y) if the Date of Termination is on or
after January 1, 2007, (1) all compensation and all benefits to the
Executive hereunder shall continue to be provided until December 31, 2008
pursuant to the terms of this Agreement and (2) the Executive shall
receive the Severance Amount payable monthly in twenty-four (24) equal
installments commencing on the first day of the month following the month in
which the Date of Termination occurs.  In
calculating Bonuses for purposes of 

 

6

 

this paragraph 8(c), for any
year after 2006, the Bonus shall be the greater of $250,000 or such other
amount that would have been paid based on actual results pursuant to any bonus
program established by the Compensation Committee for such year.

 

(ii)           Notwithstanding
the above provisions of this paragraph 8(c), if the Executive has elected an
Early Termination pursuant to paragraph 3, (X) if the Date of Termination was
before January 1, 2007, the Early Termination shall be conditioned upon
the payment by the Executive to the Company an amount equal to the aggregate
amount set forth in paragraph 8(c)(i)(X) multiplied by a fraction, the
numerator of which is the number of whole calendar months from the date of
Early Termination to December 31, 2008 and the denominator of which is the
number of whole calendar months from the Date of Termination to December 31,
2008, or (Y) if the Date of Termination was on or after January 1, 2007,
all compensation and all benefits to the Executive hereunder shall terminate as
of the date of the Early Termination and the Company shall not be required to
make further payments of the Severance Amount.

 

(d)           Termination due to
Change of Control.  If the Executive’s
employment shall be terminated after a Change of Control as provided in
paragraph 7(g), then all compensation and all benefits to the Executive
hereunder shall continue to be provided until the Date of Termination and such
compensation and benefits shall terminate contemporaneously with such
termination of employment; provided, however, that the Company shall pay the Executive
an amount equal to the Base Salary as in effect on the Date of Termination,
payable in a lump sum within ten (10) days of the Date of Termination.

 

(e)           Nonrenewal.  Provided this Agreement has not been
otherwise terminated pursuant to the terms herein, if, as of December 31,
2008, the Company and the Executive have not entered into an employment
agreement whereby the Company and the Executive have agreed that the Executive
will be employed as the Company’s President and Chief Executive Officer commencing
on January 1, 2009, then the Company shall pay the Executive the Severance
Amount payable monthly in twenty-four (24) equal installments beginning January 1,
2009, provided, that if the Executive has elected an Early Termination, then
the Company shall not be required to make further payments of the Severance
Amount.

 

(f)            Voluntary
Termination by Executive.  If the
Executive shall terminate his employment as set forth in paragraph 7(e) above,
then all compensation and all benefits to the Executive hereunder shall
continue to be provided until the Date of Termination and such compensation and
benefits shall terminate contemporaneously with such termination of employment;
provided, however, that the Executive shall not be entitled to any Bonus.

 

9.             Parachute Payments.  The Company will reimburse the Executive for
the federal excise tax and any tax imposed upon such reimbursement amount,
including, but not limited to, any federal taxes, including Medicare tax, and
any state taxes, if any, which are due pursuant to Section 4999 of the
Code, on the compensation and severance payments described in this Agreement.

 

7

 

10.           Section 409A.  The parties hereto intend that this Agreement
comply with the requirements of Section 409A of the Code and related
regulations and Treasury pronouncements (“Section 409A”).  If any provision provided herein results in
the imposition of an additional tax under the provisions of Section 409A, the
Executive and the Company agree that any such provision will be reformed to
avoid imposition of any such additional tax in the manner that the Executive
and the Company mutually agree are appropriate to comply with Section 409A.

 

11.           Confidential
Information; Unauthorized Disclosure.

 

(a)           During the Term and for
the period ending two years following the Date of Termination, the Executive
shall not, without the written consent of the Board of Directors of the Company
or a person authorized thereby, disclose to any person, other than an employee
of the Company or a person to whom disclosure is reasonably necessary or
appropriate in connection with the performance by the Executive of his duties
as the President and Chief Executive Officer of the Company, any secret,
confidential and/or proprietary information, knowledge or data obtained by him
while in the employ of the Company or any of its affiliates with respect to the
Company or any of its subsidiaries and their respective businesses, the
disclosure of which he knows or should know will be damaging to the Company or
any of its subsidiaries; provided however, that such information, knowledge or
data shall not include (i) any information, knowledge or data known
generally to the public (other than as a result of unauthorized disclosure by
the Executive) or (ii) any information, knowledge or data which the
Executive may be required to disclose by any applicable law, order, or judicial
or administrative proceeding.

 

(b)           The Executive
acknowledges that money damages would not be sufficient remedy for any breach
of this paragraph 11 by the Executive, and the Company or its subsidiaries
shall be entitled to enforce the provisions of this paragraph 11 by seeking
specific performance and injunctive relief as remedies for such breach or any
threatened breach.  Such remedies shall
not be deemed the exclusive remedies for a breach of this paragraph 11 but
shall be in addition to all remedies available at law or in equity, including
the recovery of damages from the Executive and his agents.

 

12.           Payment Obligations
Absolute.  Except as specifically
provided in this Agreement, the Company’s obligation to pay the Executive the
amounts and to make the arrangements provided herein shall be absolute and
unconditional and shall not be affected by any circumstances, including,
without limitation, any set-off, counterclaim, recoupment, defense or other
right which the Company (including its subsidiaries) may have against him or
anyone else.  All amounts payable by the
Company shall be paid without notice or demand. 
The Executive shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of
this Agreement, and the obtaining of any such other employment shall in no
event effect any reduction of the Company’s obligations to make the payments
and arrangements required to be made under this Agreement.

 

13.           Successors.  This Agreement shall inure to the benefit of
and be binding upon the Company and its successors and permitted assigns and
any such successor or permitted assignee shall be deemed substituted for the
Company under the terms of this Agreement for all purposes. As used herein, “successor”
and “assignee” shall be limited to any person, firm, corporation or 

 

8

 

other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly acquires the
stock of the Company or to which the Company assigns this Agreement by
operation of law or otherwise in connection with any sale of all or
substantially all of the assets of the Company, provided that any successor or
permitted assignee promptly assumes in a writing delivered to the Executive
this Agreement and, in no event, shall any such succession or assignment
release the Company from its obligations thereunder. The Company will require
any successor (whether direct or indirect, by purchase, merger or otherwise) to
all or substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall
mean the Company as herein before defined and any successor to all or substantially
all of its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

 

14.           Assignment.  The Executive shall not have any right to
pledge, hypothecate, anticipate or assign this Agreement or the rights
hereunder, except by will or the laws of descent and distribution, or delegate
his duties or obligations hereunder.

 

15.           Governing Law.  The provisions of this Agreement shall be
construed in accordance with, and governed by, the laws of the Commonwealth of
Massachusetts without regard to principles of conflict of laws.

 

16.           Entire Agreement.  This Agreement constitutes the entire
agreement of the parties with regard to the subject matter hereof, and contains
all the covenants, promises, representations, warranties and agreements between
the parties with respect to such subject matter.  Without limiting the scope of the preceding
sentence, all understandings and agreements preceding the date of execution of
this Agreement and relating to the subject matter hereof are hereby null and
void and of no further force and effect, including, without limitation, all
prior employment and severance agreements, if any, by and between the Company
and the Executive.

 

17.           Modification.  Any modification of this Agreement will be
effective only if it is in writing and signed by the parties hereto.

 

18.           No Waiver.  No failure by either party hereto at any time
to give notice of any breach by the other party of, or to require compliance
with, any condition or provision of this Agreement shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

 

19.           Severability.  Any provision in this Agreement which is
prohibited or unenforceable in any jurisdiction by reason of applicable law
shall, as to such jurisdiction, be ineffective only to the extent of such
prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

20.           Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together will constitute one and the same Agreement.

 

9

 

21.           Withholding of Taxes
and Other Employee Deductions.  The
Company may withhold from any benefits and payments made pursuant to this
Agreement all federal, state, city and other taxes as may be required pursuant
to any law or governmental regulation or ruling and all other normal employee
deductions made with respect to the Company’s employees generally.

 

22.           Headings.  The paragraph headings have been inserted for
purposes of convenience and shall not be used for interpretive purposes.

 

23.           Notice.  For the purpose of this Agreement, notices
and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by U.S.
registered mail, return receipt requested, postage prepaid, addressed to the
parties at their addresses set forth below, or to such other addresses as
either party may have furnished to the other in writing in accordance herewith
except that notices of change of address shall be effective only upon receipt.

 

If to the Company:

 

Global GP LLC

P.O. Box 9161

800 South St.

Waltham, Massachusetts 02454-9161

Attention: General Counsel and the Chairman of the Board

 

with a copy to:

 

Alan P. Baden

Vinson & Elkins L.L.P.

666 Fifth Avenue

25th Floor

New York, New York 10103

 

If to the Executive:

 

Eric Slifka

9 Clarke Road

Wellesley, Massachusetts 02481

 

with a copy to:

 

Daniel E. Rosenfeld

Kirkpatrick & Lockhart Nicholson Graham LLP

75 State Street

Boston, Massachusetts 02109

 

10

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

 

	
   

  	
  GLOBAL GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A. McManmon, Jr.

  
	
   

  	
   

  	
  Thomas A. McManmon, Jr.

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ERIC SLIFKA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Eric Slifka

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