Document:

EX-10.6

 Exhibit 10.6 
 TERMINAL OPERATING AGREEMENT 
 This TERMINAL OPERATING AGREEMENT
(“Operating Agreement”), dated as of                      , 2013, is by and among SPRAGUE MASSACHUSETTS PROPERTIES LLC (“SPRAGUE
MASSACHUSETTS”), a Delaware limited liability company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801, SPRAGUE RESOURCES HOLDINGS LLC (“SPRAGUE HOLDINGS”), a Delaware
limited liability company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801, and SPRAGUE OPERATING RESOURCES LLC (“SPRAGUE OPERATING RESOURCES”), a Delaware limited liability
company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire, 03801. SPRAGUE RESOURCES, SPRAGUE HOLDINGS and SPRAGUE MASSACHUSETTS are collectively referred to herein as the “Parties.”

 WITNESSETH: 
 WHEREAS SPRAGUE HOLDINGS owns a certain oil terminal located at Cannon Street in New Bedford, mailing address 30 Pine Street, New Bedford, Massachusetts, 02740, which is more fully described below
(the “Oil Terminal”); 
 WHEREAS SPRAGUE HOLDINGS desires to enter into this Operating Agreement covering the
Oil Terminal with SPRAGUE OPERATING RESOURCES and SPRAGUE OPERATING RESOURCES desires to operate and maintain said Oil Terminal; and 
 WHEREAS SPRAGUE MASSACHUSETTS is the owner of that certain real estate on which the Oil Terminal is located, and acknowledges that SPRAGUE HOLDINGS desires to enter into this Operating Agreement
covering the Oil Terminal with SPRAGUE OPERATING RESOURCES and SPRAGUE OPERATING RESOURCES desires to operate and maintain said Oil Terminal. 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, SPRAGUE HOLDINGS, SPRAGUE OPERATING RESOURCES and SPRAGUE MASSACHUSETTS agree as follows: 

1.      DEFINITIONS. 
 Each term or expression set forth below in this Section 1 has the meaning stated immediately after it. 
 Authorizations. All franchises, licenses, permits and other governmental consents issued by Governmental Authorities pursuant to Legal Requirements which are or may be required for the
ownership, use and occupancy of the Oil Terminal and for the operation, maintenance, repair and reconstruction of facilities thereon, including, without limitation, the purchase, sale, transportation, storage, loading and off-loading of petroleum products (hereinafter, “Oil”). 
 Governmental Authority. The
United States of America, the Commonwealth of Massachusetts, the City of New Bedford, Massachusetts, and any political subdivision thereof and any agency, department, commission, court, board, bureau or instrumentality of any of them. 

Insurance Requirements. All terms of any policy of insurance maintained by SPRAGUE OPERATING RESOURCES and applicable to the Oil Terminal
and any building, structure or 

  
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improvement thereon and all requirements of the issuer of any such policy and all orders, rules, regulations and other requirements of the National Board of Fire Underwriters (or any other body
exercising similar functions) applicable to or affecting any condition, operation, use of occupancy of the Oil Terminal (including, without limitation, the purchase, sale, transportation, storage, loading and
off-loading of Oil) and any building, structure or improvement thereon, or any part or parts of either. 

Legal Requirements. All statutes, codes, ordinances (and all rules and regulations thereunder), all executive orders and other
administrative orders, judgments, decrees, injunctions and other Judicial orders of or by any Governmental Authority which may at any time be applicable to parts or appurtenances of the Oil Terminal or to any condition or use thereof including,
without limitation, the purchase, sale, transportation, storage, loading and off-loading of Oil, and the provisions of all Authorizations. 
 Oil Terminal. The premises described in Exhibit A hereto, as well as all property, facilities and activities associated with the receipt, storage, processing, transfer and dispensing of Oil
by SPRAGUE OPERATING RESOURCES. 
 Taxes. All taxes, including but not limited to real estate and personal property taxes,
petroleum storage license fees, and registration fees, special and general assessments, water rents, rates and charges, sewer rents, and other impositions imposed by any Governmental Authority and charges of every kind and nature whatsoever,
extraordinary as well as ordinary and each and every installment thereof which shall during and with respect to the period of the term of this Operating Agreement be charged, levied, laid, assessed, imposed, become due and payable or become liens
upon or for or with respect to the Oil Terminal or any part thereof, appurtenances or equipment owned by SPRAGUE OPERATING RESOURCES thereon or therein or any part thereof or on this Operating Agreement, together with all interest and penalties
thereon under or by virtue of all present or future Legal Requirements and any sales tax, gross receipt tax or tax of a similar nature based on a percentage fraction or capitalized value of the Operating Fees, as said Operating Fees is defined in
Section 4 hereunder. Provided, however, Taxes shall not be construed to include inheritance, estate, excise, succession, transfer, gift, franchise, income, gross receipt, or profit taxes that are or may be imposed upon SPRAGUE HOLDINGS or
SPRAGUE MASSACHUSETTS, their respective successors or assigns. 
 2.      OPERATING AGREEMENT OF OIL
TERMINAL AND RECITATION OF GENERAL CONTRACT FRAMEWORK. 
 2.1      Operating Agreement of Oil Terminal and Term.

  

	 	(i)	Initial Term. SPRAGUE MASSACHUSETTS and SPRAGUE HOLDINGS do hereby enter into this Operating Agreement with SPRAGUE OPERATING RESOURCES upon the terms herein
contained for a term of five (5) years, commencing                     , 2013 (the “Initial Term”), as such Initial Term may be extended
pursuant to the provisions of Section 2.3 hereof, and subject to earlier termination as is set forth herein. 

  

	 	(ii)	 Early Termination By SPRAGUE OPERATING RESOURCES or SPRAGUE HOLDINGS. In addition to the rights of early

  
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termination as described in Articles 17, 19 and 20 hereof, SPRAGUE OPERATING RESOURCES or SPRAGUE HOLDINGS shall have the right to terminate this Operating Agreement at any point during the
Extension Term, by giving notice to the other party. Upon the giving of such notice, this Operating Agreement shall terminate sixty (60) days from the date of said notice without recourse to the parties and specifically not subject to
reimbursement of any costs by either party to any of the Parties. 

  

	 	(iii)	Early Termination By SPRAGUE MASSACHUSETTS and SPRAGUE HOLDINGS. SPRAGUE MASSACHUSETTS and SPRAGUE HOLDINGS shall also have the right to terminate this Operating
Agreement during the Initial Term or the Extension Term upon sixty (60) days notice to SPRAGUE OPERATING RESOURCES in writing, without recourse to SPRAGUE OPERATING RESOURCES, if such termination is necessary, in the sole discretion of SPRAGUE
MASSACHUSETTS and SPRAGUE HOLDINGS, to facilitate the sale, (except for the purposes of a lease associated with continued oil terminal operations by another party) or development of the Oil Terminal. Upon the giving of such notice, this Operating
Agreement shall terminate sixty (60) days from the date of said notice without recourse to the Parties and specifically not subject to reimbursement of any costs by either party to any of the Parties. 

2.2      Consideration. SPRAGUE OPERATING RESOURCES shall compensate SPRAGUE HOLDINGS for the use and benefit of this
Operating Agreement by (i) performing the operation and maintenance obligations described herein; and (ii) paying all Operating Fees due pursuant to Article 4 hereof. 
 2.3      Extension of Term. Provided SPRAGUE OPERATING RESOURCES is not in default of any of its duties or obligations under this Operating Agreement, SPRAGUE OPERATING
RESOURCES shall have the right to extend the Term of this Operating Agreement for an additional five (5) year period following the expiration of the Initial Term hereof (such additional period, the “Extension Term”, and, together with
the Initial Term, the “Term”). The terms and conditions of this Operating Agreement shall govern the rights and obligations of the parties during such Extension Term. 
 3.      COST DEFINITION AND DETERMINATION. 

Costs shall be determined in accordance with generally accepted accounting principles, consistently applied, and shall include operating
and maintenance costs (“O & M Costs”). O & M Costs will normally be incurred by SPRAGUE OPERATING RESOURCES, but may also include O & M Costs incurred by SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS to the extent that SPRAGUE
OPERATING RESOURCES requests assistance by SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS or to the extent that SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS undertakes to perform operation and maintenance not being satisfactorily undertaken by SPRAGUE
OPERATING RESOURCES, SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS, as applicable, shall give SPRAGUE OPERATING RESOURCES notice of the unsatisfactory nature of SPRAGUE OPERATING RESOURCES’ operation and maintenance activity and a reasonable
opportunity to cure same. SPRAGUE OPERATING RESOURCES will provide SPRAGUE HOLDINGS with a Monthly Throughput Report. “Throughput” shall mean the total volume of Oil sold or otherwise dispensed from the Oil Terminal. 

  
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 4.      OPERATING FEES. 

SPRAGUE OPERATING RESOURCES shall satisfy its obligation to pay Operating Fees to SPRAGUE HOLDINGS (i) by paying to SPRAGUE
MASSACHUSETTS the sum of $15,200.00 per month (subject to adjustment as provided below) (the “Operating Fees”); (ii) by being responsible for ordinary maintenance and repairs to the Oil Terminal; and, (iii) by paying to SPRAGUE
MASSACHUSETTS the amount of real estate taxes levied against the Oil Terminal. The Operating Fees specified in item (i) above shall be subject to adjustment as follows: Commencing on July 1, 2014, and thereafter on July 1 of each year
during the Term of this Operating Agreement, the aforementioned sum shall be increased in accordance with the percentage increase of the Consumer Price Index, All Urban Consumers (CPI-U) Region I, Boston
Index, for the previous year (July 1, 2013-June 30). Provided, however, to the extent such increase in any one year (as calculated as described in the immediately preceding sentence) exceeds 6%, SPRAGUE OPERATING RESOURCES shall have the right,
but not the obligation, to request renegotiation of this Operating Agreement. In the event such renegotiation fails to result in the establishment of new terms acceptable to SPRAGUE OPERATING RESOURCES, SPRAGUE OPERATING RESOURCES may terminate this
Operating Agreement upon the provision of twelve (12) months advance written notice to SPRAGUE HOLDINGS. 
 It is
understood that this Operating Agreement is in the nature of a net Operating Agreement and that such Operating Fees is to be net to SPRAGUE MASSACHUSETTS and, accordingly, SPRAGUE OPERATING RESOURCES shall bear all costs relating to the Oil Terminal
whether or not specified expressly herein, including, without by way of limitation, Taxes. In the event SPRAGUE OPERATING RESOURCES holds over following the expiration or termination of this Operating Agreement, SPRAGUE OPERATING RESOURCES shall be
a tenant at sufferance subject to all the terms of this Operating Agreement. SPRAGUE OPERATING RESOURCES shall also pay all public, special or betterment assessments levied or assessed by any municipality or other governmental authority associated
with the Oil Terminal during the Term. 
 5.      UTILITIES. 

All utilities will be secured and paid for by SPRAGUE OPERATING RESOURCES for its own account. 

6.      ALLOWED USES/ PROHIBITED CONDITIONS. 
 6.1      Allowed Use. Use of the Oil Terminal by SPRAGUE OPERATING RESOURCES shall be limited to SPRAGUE OPERATING RESOURCES receipt, storage, processing and dispensing of Oil
only in direct relationship to SPRAGUE OPERATING RESOURCES own oil distribution business. Any other use, without first obtaining the written consent of SPRAGUE HOLDINGS, is prohibited. SPRAGUE OPERATING RESOURCES use of the Oil Terminal will be in
accordance with sound petroleum industry standards as in effect from time to time. 
 6.2      Prohibited Conditions.
SPRAGUE OPERATING RESOURCES shall not commit any nuisance, nor permit the emission of any objectionable noise or odor, nor make or suffer any waste, 

  
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nor make any use of the Oil Terminal which is contrary to any law or ordinance or which would cause the cancellation of insurance coverage of any of the Parties hereto. SPRAGUE OPERATING
RESOURCES shall not use any portion of the Oil Terminal for the use, generation, treatment, storage or disposal of “oil” (except the product defined as “Oil” herein), “hazardous material”, “hazardous waste”,
or “hazardous substances”, as the same are defined under state or federal law or regulation. SPRAGUE OPERATING RESOURCES shall not place any sign or advertisement at the Oil Terminal without first obtaining the written consent of SPRAGUE
HOLDINGS. 
 7.      MAINTENANCE AND REPAIRS. 

SPRAGUE OPERATING RESOURCES accepts the Oil Terminal on an “as-is” basis. SPRAGUE
OPERATING RESOURCES shall be responsible, at its own cost and expense, subject, however, to the receipt of proceeds referred to in Section 11 to the extent available, to keep and maintain the Oil Terminal in good operating condition and repair
in accordance with sound petroleum industry standards and shall use all reasonable precaution to prevent waste, damage or injury. 
 8.
     REQUIREMENTS OF PUBLIC AUTHORITY. 
 8.1.      Legal Requirements. SPRAGUE OPERATING
RESOURCES routinely shall review, be alert to and promptly observe and comply with all applicable Legal Requirements of any Governmental Authority affecting use of the Oil Terminal at its own cost and expense including without limitation thereto all
Legal Requirements in respect to environmental or water pollution control, testing and inspection of Oil Terminal facilities at required intervals, maintaining records and reporting the results of said tests and inspections to appropriate
Governmental Authorities. SPRAGUE OPERATING RESOURCES shall keep the Oil Terminal equipped with all safety and preventive appliances required by said Legal Requirements or Insurance Requirements. SPRAGUE OPERATING RESOURCES shall pay all costs,
expenses, liabilities, losses, damages, fines, penalties, claims and demands that may in any manner arise out of or be imposed because of the failure of SPRAGUE OPERATING RESOURCES to comply with the covenants of this Section 8. SPRAGUE
HOLDINGS, to the extent required by law to do so, shall also comply with the covenants of this Section 8 relating to property of SPRAGUE HOLDINGS. 
 8.2      Contests. SPRAGUE OPERATING RESOURCES shall have the right to contest by appropriate legal proceedings diligently conducted in good faith, in the name of SPRAGUE
OPERATING RESOURCES, SPRAGUE HOLDINGS (if legally required) or SPRAGUE MASSACHUSETTS (if legally required), or each of the Parties hereto (if legally required), without cost, expense, liability or damage to SPRAGUE MASSACHUSETTS, the validity or
application of any Legal Requirement and, if by the terms of any such Legal Requirement, compliance therewith may be delayed pending the prosecution of any such proceedings without subjecting the Oil Terminal or any other property of SPRAGUE
HOLDINGS to any lien, sanction, or other encumbrance, SPRAGUE OPERATING RESOURCES may delay such compliance therewith until the final determination of such proceedings. 

  
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 8.3      SPRAGUE HOLDINGS’ Assistance. SPRAGUE HOLDINGS shall execute and
deliver any appropriate papers or other instruments which may be necessary or proper to permit SPRAGUE OPERATING RESOURCES to so contest the validity or application of any such Legal Requirement and to fully cooperate with SPRAGUE OPERATING
RESOURCES in such contest. 
 8.4      SPRAGUE OPERATING RESOURCES’ Default. If SPRAGUE OPERATING RESOURCES
shall fail to comply as specified in the preceding subsection 8.1, SPRAGUE HOLDINGS may take such action as may be required and SPRAGUE OPERATING RESOURCES shall reimburse SPRAGUE HOLDINGS upon demand for the cost thereof. 

8.5      Alterations and Additions. If compliance with all Legal Requirements, Insurance Requirements or industry standards as
specified in subsection 8.1 requires substantial alterations, additions to, reconstruction or replacement of Oil Terminal facilities (“Alterations”), SPRAGUE OPERATING RESOURCES shall be responsible to recommend such Alterations to SPRAGUE
HOLDINGS; and such Alterations shall be made, at the direction of SPRAGUE HOLDINGS, either by SPRAGUE HOLDINGS or by SPRAGUE OPERATING RESOURCES. The costs arising under this subsection 8.5 in respect of Alterations shall be borne solely by SPRAGUE
OPERATING RESOURCES. 
 9.      PERMITS. 

SPRAGUE OPERATING RESOURCES shall be responsible for obtaining at its own expense any and all necessary Authorizations. The effectiveness
of this Operating Agreement and the terms hereof shall be subject to the obtaining of all such Authorizations and to the regulation of all Governmental Authorities having Jurisdiction in the Oil Terminal. 

10.      PAYMENT AND ACCOUNTING RECORDS. 
 10.1      Payment. SPRAGUE OPERATING RESOURCES shall pay SPRAGUE HOLDINGS its Operating Fees upon receipt of invoice, but in no event later than 10 days from date of receipt by
SPRAGUE OPERATING RESOURCES. SPRAGUE HOLDINGS will likewise pay SPRAGUE OPERATING RESOURCES any other amount due under this Operating Agreement in no event later than ten (10) days from date of receipt by SPRAGUE OPERATING RESOURCES. Any amount
not paid when due shall be subject to a late payment charge equivalent to one and one-half per cent (1.5%) per month accruing from the due date through the actual payment date. 

10.2      Inspection and Financial Information. SPRAGUE HOLDINGS may, at any time and at its own expense, examine the accounts
and records kept by SPRAGUE OPERATING RESOURCES with respect to the Oil Terminal, either by designated accounting personnel of SPRAGUE HOLDINGS or by an independent certified public accountant, and SPRAGUE OPERATING RESOURCES shall make such
accounts and records available at its offices at reasonable times for such purposes. SPRAGUE OPERATING RESOURCES shall provide SPRAGUE HOLDINGS with a copy of its normal corporate certified annual report by its independent certified public
accountant as soon as the 

  
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same is available. 
 11.      INSURANCE. 

11.1      Coverage. SPRAGUE OPERATING RESOURCES shall maintain, or cause to be maintained, at SPRAGUE OPERATING RESOURCES
expense, for the entire term of this Operating Agreement, insurance from reputable insurance companies, general liability insurance coverage applicable to operations, maintenance, repair and improvement work attendant to the use of the Oil Terminal,
as well as fire and casualty coverage for the Oil Terminal, and oil pollution and environmental impairment insurance coverage for all Oil Terminal activities, as specified in Exhibit B hereto; and SPRAGUE OPERATING RESOURCES shall furnish SPRAGUE
HOLDINGS satisfactory evidence of such coverage being provided by SPRAGUE OPERATING RESOURCES upon demand, prior to the time it is due and 30 days prior to the date when renewal of same is to be effective. All such insurance shall be executed under
valid and enforceable policies issued by insurers rated at least B + VIII (or assigned a comparable rating by any successor company with similar standards) or appearing on the approved list of a reputable broker. 

11.2      Insureds and Waiver of Rights. All insurance set forth in this Section 11 shall include SPRAGUE HOLDINGS,
SPRAGUE MASSACHUSETTS and SPRAGUE OPERATING RESOURCES as insureds and a waiver of insurer’s rights of subrogation against such insureds for loss or damage even though due to the negligence of said parties or any of them. 

11.3      Settlement of Claims. The Parties hereto agree to cooperate fully in the settlement of claims under insurance
obtained by SPRAGUE OPERATING RESOURCES. 
 11.4      Contractor’s Insurance. SPRAGUE OPERATING RESOURCES shall
ensure that all contractors performing work at the Oil Terminal possess commercial liability insurance, worker’s compensation insurance, motor vehicle insurance, and such other insurance in form and amount reasonably acceptable to SPRAGUE
HOLDINGS. 
 12.      MORTGAGEE’S RIGHTS. 

This Operating Agreement shall be subject and subordinate at all times to any lien of mortgages that may hereafter be made a lien of the
Oil Terminal by SPRAGUE HOLDINGS; provided, however, that no such mortgage shall impair the use and operation of the Oil Terminal as contemplated hereby, as long as SPRAGUE OPERATING RESOURCES is not in default of the Operating Agreement. Although
no instrument or act on the part of SPRAGUE OPERATING RESOURCES shall be necessary to effectuate such subordination, SPRAGUE OPERATING RESOURCES will execute and deliver, nevertheless, such further instrument or instruments, as may be requested from
time to time by SPRAGUE HOLDINGS at its own expense, as may be reasonably required by any mortgagee of the Oil Terminal. 

  
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 13.    LIENS. 
 13.1    Covenant Against Liens. SPRAGUE OPERATING RESOURCES shall not make, allow or suffer, nor shall any person acquire through SPRAGUE OPERATING RESOURCES, any lien,
including liens of mechanics or material men for work done on behalf of SPRAGUE OPERATING RESOURCES on the Oil Terminal, mortgage or security interest in nor will SPRAGUE OPERATING RESOURCES sell, convey or assign any interest in the Oil Terminal or
in any buildings or other structures, replacements, changes, additions or improvements thereto or in fixtures thereon. Notwithstanding such restriction, if because of any act or omission of SPRAGUE OPERATING RESOURCES, any mechanic’s lien or
other lien, notice of contract, charge or order for payment of money shall be filed against any portion of the Oil Terminal, without the written consent of SPRAGUE HOLDINGS, SPRAGUE OPERATING RESOURCES shall, at its own cost and expense, cause the
same to be discharged of record within fourteen (14) days after notice of the filing thereof. 
 13.2    Right to
Discharge. Without otherwise limiting any other remedy of SPRAGUE HOLDINGS for default hereunder, if SPRAGUE OPERATING RESOURCES shall fail to cause such liens to be discharged or recorded within the aforesaid fourteen (14) day period or to
satisfy such liens within fourteen (14) days after any Judgment in favor of such lien holders from which no further appeal might be taken, then SPRAGUE HOLDINGS shall have the right to cause the same to be discharged. All amounts paid by
SPRAGUE HOLDINGS to cause such liens to be discharged shall constitute Additional Operating Fees. 

14.    INFORMATION AND ACCESS. 
 SPRAGUE OPERATING RESOURCES will render periodic reports to and keep SPRAGUE HOLDINGS fully informed in respect to the Oil Terminal including, without limitation, the level of performance, the general
condition of maintenance and reliability, qualification and training of personnel, maintenance of safety and operating records, and plans for modification of facilities or procedures in connection therewith. SPRAGUE OPERATING RESOURCES shall
promptly provide SPRAGUE HOLDINGS upon request with any and all operating manuals, records, memoranda, reports, plans, designs and other documentation or information in respect to the Oil Terminal which SPRAGUE HOLDINGS deems reasonably necessary.
SPRAGUE OPERATING RESOURCES will notify SPRAGUE HOLDINGS of any material problems or developments with respect to the operation and maintenance of the Oil Terminal. SPRAGUE HOLDINGS or its agents and designees shall have the right, but not the
obligation, to enter upon the Oil Terminal at all reasonable times and; in a reasonable manner during ordinary business hours to examine same, provided such access shall not unreasonably interfere with the efficient maintenance and operation of the
Oil Terminal as contemplated hereby. 
 15.    INDEMNITY. 

15.1    SPRAGUE OPERATING RESOURCES’ Property. Any property of any kind owned by SPRAGUE OPERATING RESOURCES that may be
on the premises of the Oil Terminal shall be at the sole risk of SPRAGUE OPERATING RESOURCES. 

  
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 15.2    Spillage. SPRAGUE OPERATING RESOURCES will defend, save SPRAGUE HOLDINGS
and its affiliates, SPRAGUE MASSACHUSETTS and Sprague Massachusetts Gas Company (the “Indemnitees”), as owners of the Oil Terminal, the real estate on which the Oil Terminal is located and the adjacent property, harmless and indemnified:
from and against all loss or damage caused by SPRAGUE OPERATING RESOURCES, its agents or contractors occasioned by (a) the use or misuse or abuse of water brought in through pipes or wells for use on the Oil Terminal or of the plumbing, heating
or other apparatus, electric or other fixtures; (b) the bursting or leaking of any pipes; or (c) a nuisance, including oil leakage and spillage, made or suffered on the Oil Terminal or adjacent property of Indemnitees, or in the immediate
vicinity of the foregoing, arising out of the operation of SPRAGUE OPERATING RESOURCES, except as may have been caused by the negligence of an Indemnitee, its agents and employees. 
 15.3    SPRAGUE OPERATING RESOURCES Indemnity. SPRAGUE OPERATING RESOURCES shall indemnify, save harmless, and defend the Indemnitees from and against any and all liability,
damage, penalties or judgments and from and against any claims, actions, proceedings and expenses and costs in connection therewith, including reasonable counsel fees, arising from any injury to person or property sustained by anyone in and about
the Oil Terminal or the approaches appurtenant or adjacent thereto, or other appurtenances used in connection therewith, or associated with the operation of the Oil Terminal, resulting from any act or acts or omissions of SPRAGUE OPERATING
RESOURCES, its officers, agents, servants, employees, contractors, lessees, customers, or invitees of any nature. SPRAGUE OPERATING RESOURCES shall, at its own cost and expense, defend any and all suits or actions (just or unjust) which may be
brought against an Indemnitee or in which an Indemnitee may be impleaded with others arising from any such act or omission of SPRAGUE OPERATING RESOURCES, its officers, agents, servants, employees, contractors or invitees of any nature. The
representations, covenants and warranties contained in this paragraph 15.3 shall survive the termination of this Operating Agreement. 

15.4    SPRAGUE HOLDINGS’ and SPRAGUE MASSACHUSETTS’ Indemnity. SPRAGUE HOLDINGS and SPRAGUE MASSACHUSETTS, jointly
and severally, shall indemnify, save harmless, and defend SPRAGUE OPERATING RESOURCES from and against any and all liability, damage, penalties or judgments and from and against any claims, actions, proceedings and expenses and costs in connection
therewith, including reasonable counsel fees, arising from injury to person or property sustained by anyone in and about the Oil Terminal or the approaches appurtenant or adjacent thereto, or other appurtenances used in connection therewith,
resulting from any act or acts or omissions of SPRAGUE HOLDINGS and SPRAGUE MASSACHUSETTS, jointly and severally, their respective officers, agents, servants, employees, contractors, or invitees of any nature. SPRAGUE HOLDINGS and SPRAGUE
MASSACHUSETTS, jointly and severally, shall, at their own cost and expense, defend any and all suits or actions (just or unjust) which may be brought against SPRAGUE OPERATING RESOURCES or in which SPRAGUE OPERATING RESOURCES may be impleaded with
others upon any such act or omission of SPRAGUE HOLDINGS and SPRAGUE MASSACHUSETTS, jointly and severally, their respective officers, agents, servants, employees, contractors, or invitees of any nature. The representations, covenants and warranties
contained in this paragraph 15.4 shall survive the termination of this Operating Agreement. 
 16.    ASSIGNMENT
OR OTHER TRANSFER. 
 SPRAGUE OPERATING RESOURCES covenants that, during this Operating Agreement and for such further time
as SPRAGUE OPERATING RESOURCES shall hold the Oil Terminal or 

  
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any part thereof, SPRAGUE OPERATING RESOURCES will not assign or encumber this Operating Agreement nor sublet the whole or any part of the Oil Terminal without first obtaining on each occasion
the written consent of SPRAGUE HOLDINGS. SPRAGUE HOLDINGS may assign the Operating Agreement or otherwise transfer its interest in the Oil Terminal with notice to SPRAGUE OPERATING RESOURCES. 
 17.    TAKINGS FOR PUBLIC USE. 
 If the Oil
Terminal, or any substantial part thereof, shall be taken by eminent domain, in pais or otherwise, this Operating Agreement and the Term shall terminate, but if upon a taking this Operating Agreement does not terminate, SPRAGUE OPERATING RESOURCES
shall assign to SPRAGUE HOLDINGS any rights for compensation for property of SPRAGUE HOLDINGS, whether real or personal, so taken. If any such taking affects SPRAGUE OPERATING RESOURCES use, SPRAGUE OPERATING RESOURCES shall have the right to
terminate and withdraw; provided, however, that such taking is not de minimus or otherwise not substantial in either effect or size in the reasonable opinion of SPRAGUE HOLDINGS. 
 18.    RIGHT OF ENTRY. 
 SPRAGUE HOLDINGS may
enter the Oil Terminal to view the same, and may remove any placards or signs not otherwise approved, and to make repairs, improvements, alterations or additions thereto pursuant to provisions of this Operating Agreement. Such entry shall not
disrupt any legitimate ongoing use of the Oil Terminal. 
 19.    TERMINATION FOR DEFAULT. 

19.1    Defaults. The following shall, if any requirement for the giving of notice or lapse of time or both has not been met,
constitute Defaults, and, if such conditions have been met, constitute Events of Default hereunder (notwithstanding any license or any former breach of covenant or waiver of the benefit hereof or consent in a former instance): 

 

	 	(a)	The occurrence of any event set forth in Section 20 hereof; 

  

	 	(b)	The failure of SPRAGUE OPERATING RESOURCES to pay Operating Fees, Additional Operating Fees or any other costs due pursuant to this Operating Agreement, when same shall
be due and payable and the continuance of such failure for a period of fifteen [15] days after receipt by SPRAGUE OPERATING RESOURCES of notice in writing from SPRAGUE HOLDINGS specifying such failure; 

 

	 	(c)	The failure of SPRAGUE OPERATING RESOURCES to keep, observe or perform any of the other covenants, conditions and agreements herein contained on SPRAGUE OPERATING
RESOURCES part to be kept, observed or performed, or SPRAGUE OPERATING RESOURCES obligation under any agreement relating to the Oil Terminal and the continuance of such failure without the curing of same for a period of 30 days after receipt by
SPRAGUE OPERATING RESOURCES from any person or notice in writing specifying in reasonable detail the nature of such failure. 

  
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 19.2    SPRAGUE HOLDINGS’ Remedies. If an Event of Default shall occur and
be continuing, SPRAGUE HOLDINGS may, at its option, give to SPRAGUE OPERATING RESOURCES a notice terminating this Operating Agreement upon a date specified in such notice, which date shall be not less than 3 days, not including any Saturday, Sunday
or other day on which commercial establishments in New Bedford, Massachusetts are authorized or required by law or executive order to remain closed (“Business Days”), after the date of receipt by SPRAGUE OPERATING RESOURCES of such notice
from SPRAGUE HOLDINGS, and upon the date specified in said notice, the term and estate hereby vested in SPRAGUE OPERATING RESOURCES shall cease and any and all other right, title and interest of SPRAGUE OPERATING RESOURCES hereunder (other than
SPRAGUE OPERATING RESOURCES rights pursuant to Section 15.4 hereof) shall likewise cease without further notice of lapse of time, as fully and with like effect as if the entire term of this Operating Agreement had elapsed, but SPRAGUE OPERATING
RESOURCES shall continue to be liable to SPRAGUE HOLDINGS as hereinafter provided. 
 19.3    Further Remedies. Upon
any termination of this Operating Agreement pursuant to Section 19.2, or at any time thereafter, SPRAGUE HOLDINGS may, in addition to and without prejudice to any other rights and remedies SPRAGUE HOLDINGS shall have at law or in equity,
lawfully enter into and upon the Oil Terminal, or any part thereof in the name of the whole, and repossess the same as of the former estate of SPRAGUE HOLDINGS and expel SPRAGUE OPERATING RESOURCES and those claiming through or under SPRAGUE
OPERATING RESOURCES and remove their effects (forcibly, if necessary) in the manner prescribed by the statute relating to summary proceedings, or similar statutes, without being deemed guilty of any manner of trespass, and without prejudice to any
remedies which might otherwise be used for arrears of Operating Fees or proceeding breach of covenant, and upon entry as aforesaid this Operating Agreement shall terminate. 
 20.    INSOLVENCY. 
 20.1    Termination
for Insolvency. In the event of any receivership, insolvency or bankruptcy proceedings instituted by or against SPRAGUE OPERATING RESOURCES under a bankruptcy, insolvency or other law relating to the relief of the adjustment of indebtedness,
rehabilitation or reorganization of debtors or the making of an assignment for the benefit of creditors by SPRAGUE OPERATING RESOURCES or if a decree or order by a court having Jurisdiction in the premises shall be entered approving a petition
seeking reorganization of SPRAGUE OPERATING RESOURCES under the Federal Bankruptcy Act or any similar statute applicable to SPRAGUE OPERATING RESOURCES or appointing a receiver or conservator or liquidator or trustee of SPRAGUE OPERATING RESOURCES
or of substantially all of the property of SPRAGUE OPERATING RESOURCES (other than a receiver, conservator, liquidator or trustee appointed in a proceeding not based upon insolvency of SPRAGUE OPERATING RESOURCES or upon its inability to pay its
debts as they become due), or in the event any execution of attachment shall be issued against SPRAGUE OPERATING RESOURCES or all or substantially all of SPRAGUE OPERATING RESOURCES property whereby the Oil Terminal shall be taken or occupied or
attempted to be taken or occupied by some person other than SPRAGUE OPERATING RESOURCES, except as may herein be permitted, and such execution, attachment or occupation shall not be removed within 30 days from the date it first occurs, then SPRAGUE
OPERATING RESOURCES shall be deemed to be in breach of this Operating Agreement and this Operating Agreement shall immediately terminate and SPRAGUE HOLDINGS reserves all remedies for breach of this

  
 11 

 
Operating Agreement. 
 20.2    Bankruptcy Proceedings. In the
event of involuntary bankruptcy or corporate reorganization proceedings against SPRAGUE OPERATING RESOURCES, SPRAGUE HOLDINGS may terminate this Operating Agreement by written election to SPRAGUE OPERATING RESOURCES but not before the earlier of
(a) 30 days after the service upon SPRAGUE OPERATING RESOURCES of the initial petition in connection with such proceedings, or (b) the adjudication of insolvency of SPRAGUE OPERATING RESOURCES, but said right to terminate shall not be
exercised if such petition shall have been denied and such denial shall not have been reversed; provided, that if such petition or commencement is involuntarily made against SPRAGUE OPERATING RESOURCES and is dismissed within 60 days of the date of
such filing of commencement such events shall not constitute an insolvency hereunder. 
 21.    DAMAGES ON
DEFAULT. 
 21.1    Surrender. Upon expiration, forfeiture, surrender or termination of this Operating Agreement,
SPRAGUE OPERATING RESOURCES shall peaceably surrender and deliver up the Oil Terminal together with all personal property attached thereto or customarily used in connection therewith, all as the absolute property of SPRAGUE HOLDINGS, broom clean and
in good condition and repair, reasonable wear and tear and casualties not required to be insured against excepted. In addition, upon said expiration, forfeiture, surrender or termination, SPRAGUE OPERATING RESOURCES agrees to waive and release any
right or claim to the Oil Terminal or otherwise associated with this Operating Agreement, including, without limitation, any right or claim pursuant to Mass. Gen. Laws c 91 or the regulations promulgated thereunder relating to the displacement of
“water dependent uses”. SPRAGUE OPERATING RESOURCES shall provide such documentation as SPRAGUE HOLDINGS may request stating that such expiration, forfeiture, surrender or termination is in the context of a “voluntary
arrangement” as that term is in 310 C.M.R. 9.36 (4)(b). Provided, however, the foregoing shall not be construed to affect any indemnity, right or claim of SPRAGUE OPERATING RESOURCES relating to personal injury or damage to property as provided
in Article 15.4 hereof. It is agreed between SPRAGUE HOLDINGS and SPRAGUE OPERATING RESOURCES that any and all structures, buildings, additions, improvements, equipment, apparatus, alterations and replacements constructed by or for SPRAGUE OPERATING
RESOURCES on the Oil Terminal or placed thereon by or for SPRAGUE OPERATING RESOURCES including by way of illustration but without limitation thereto, the items hereinafter specified, as well as all items of the type specified, shall be deemed to be
and shall be affixed to and be a part of the Oil Terminal, and shall not be removed therefrom except upon written order of SPRAGUE HOLDINGS: oil storage tanks; fuel oil heaters; fuel oil pumps and drivers; oil piping, steam, water and other piping
and valves; electrical conduits, wiring and motors; instruments and controls; buildings including all portions and the contents thereof; roadways; fencing; and (also including all appurtenances and all items attached to the foregoing). For the
purposes of this Section 21, the term “Improvements” shall include all buildings, replacement, changes, additions, fixtures and improvements now existent or at any time constructed upon the Oil Terminal, including by way of
illustration and not limitation, oil storage and pumping facilities and pipelines, with all equipment in or appurtenant thereto. Notwithstanding the foregoing, SPRAGUE OPERATING RESOURCES shall have the option of removing any equipment of their
installation which will not impair the use by SPRAGUE HOLDINGS of the Oil Terminal in a 

  
 12 

 
manner consistent with its original condition; to the extent SPRAGUE HOLDINGS has an interest in purchasing any such equipment installed by SPRAGUE OPERATING RESOURCES, SPRAGUE OPERATING
RESOURCES shall make a proposal for such purchase by SPRAGUE HOLDINGS upon the request of SPRAGUE HOLDINGS. 

21.2    SPRAGUE HOLDINGS’ Operation of Oil Terminal. In the event of any dispute between the Parties as to the
termination of this Operating Agreement or as to possession of or title to the Improvements, SPRAGUE HOLDINGS shall, pending final determination of such dispute, have the right subject to subsection 18.3 to make entry on the Oil Terminal and use any
and all facilities. 
 21.3    Right to Relet. At any time or from time to time after any such expiration or
termination, SPRAGUE HOLDINGS may contract for the use of the Oil Terminal, or any part thereof, in the name of SPRAGUE HOLDINGS or otherwise, for such term or terms (which may be greater or less than the period which would otherwise have
constituted the balance of the term of this Operating Agreement) and on such conditions (which may include concessions or free Operating Fees) as SPRAGUE HOLDINGS, in its reasonable discretion, may determine and may collect and receive the Operating
Fees therefor. SPRAGUE HOLDINGS shall in no way be responsible or liable for any failure to contract for the use of the Oil Terminal or any part thereof, or for any failure to collect any Operating Fees due upon any such contracting, but agrees to
use reasonable efforts to mitigate damages. 
 21.4    Survival of Covenants. No such expiration or termination of
this Operating Agreement shall relieve SPRAGUE HOLDINGS, SPRAGUE OPERATING RESOURCES or SPRAGUE MASSACHUSETTS of their respective liabilities and obligations under this Operating Agreement and such liability. 

21.5    Right to Equitable Relief. In the event of any breach or threatened breach by any of the Parties of any of the
covenants, agreements, terms or conditions contained in this Operating Agreement, the other party shall be entitled to enjoin such breach or threatened breach and shall have the right to invoke any right and remedy allowed at law or in equity or by
statute or otherwise as though re-entry, summary proceedings, and other remedies were not provided for in this Operating Agreement. 
 22.    INVALID PROVISIONS. 
 If any term,
covenant, condition or provision of this Operating Agreement or the application thereof to any person or circumstance shall, at any time or to any extent, be invalid or unenforceable, the remainder of this Operating Agreement, or the application of
such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition and provision of this Operating Agreement shall be valid and be
enforced to the fullest extent permitted by law. 

  
 13 

 23.    NO WAIVERS. 

Failure of SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS to complain of any act or omission by SPRAGUE OPERATING RESOURCES, no matter how long
the same may continue, shall not be deemed to be a waiver by SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS of any of their respective rights hereunder. No waiver by SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS at any time, expressed or implied, of any
breach of any provision of this Operating Agreement shall be deemed a waiver of a breach of any other provision of this Operating Agreement or a consent to any subsequent breach of the same or any other provision. No acceptance by SPRAGUE HOLDINGS
or SPRAGUE MASSACHUSETTS or by SPRAGUE OPERATING RESOURCES of any partial payment shall constitute an accord or satisfaction but shall only be deemed a partial payment on account. 
 24.    NOTICES AND COMMUNICATIONS. 
 All notices,
demands, requests and other communications provided for or permitted under this Operating Agreement shall be in writing and shall be delivered either in person, by prepaid telegram, or other telecommunication device, or by registered or certified
mail, return receipt requested, to the following addresses: 
  

	 	(a)	if to SPRAGUE HOLDINGS, at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801 Vice President, with a copy to Legal Department. 

 

	 	(b)	if to SPRAGUE MASSACHUSETTS, at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801 Vice President, with a copy to Legal Department.

  

	 	(c)	if to SPRAGUE OPERATING RESOURCES, at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801, with a copy to Paul A. Scoff, Esq., General Counsel, at the
same address. 

 Any notice provided herein shall become effective only upon and at the time of receipt by the person to whom it
is given, unless such notice is mailed by first-class registered mail, in which case it shall be deemed to be received on (i) the third Business Day following the mailing thereof or (ii) the day of its receipt, if a Business Day, or if the
day of its receipt is not a Business Day, the next succeeding Business Day, whichever of (i) or (ii) be the earlier. 

22.    LIMITATION OF LIABILITY. 
 None of SPRAGUE OPERATING RESOURCES, SPRAGUE HOLDINGS or SPRAGUE MASSACHUSETTS shall be liable to the other for any claim in the nature of incidental, consequential or special damages, or for lost profits
or revenues, arising from a breach or alleged breach of this Agreement. 
 23.    APPLICABLE LAW. 

This Operating Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts.

  
 14 

 24.    ENTIRE AGREEMENT. 

This Operating Agreement constitutes the entire understanding between the parties relating to the subject matter hereof, and supersedes
all prior written or oral communications, understandings and agreements. This Operating Agreement may be modified or amended only by a written agreements signed by the authorized representatives of the parties. 

  
 15 

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

					
	SPRAGUE RESOURCES HOLDINGS LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	SPRAGUE MASSACHUSETTS PROPERTIES, LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	SPRAGUE OPERATING RESOURCES LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

  
 [Signature Page to
Terminal Operating Agreement] 

  
 16 

 EXHIBIT A 
 PLAN OF PREMISES 

  
 17 

 EXHIBIT B 
 INSURANCE REQUIREMENTS 
 General and Excess Liability—SPRAGUE OPERATING
RESOURCES must supply proof of coverage for bodily injury or property damage to third parties in the amount of $10,000,000. Coverage must be occurrence, or if claims- made, must include an extended discovery
period of three years from the last day of the contract. Coverage may be purchased in layers as long as the combined single limit is $10,000,000. Coverage must include coverage for care, custody and control. 

Workers Compensation—SPRAGUE OPERATING RESOURCES will provide proof of coverage for workers compensation coverage for 1) exposures in the
Commonwealth of Massachusetts, 2) Longshoremen and Harbor Workers’ Act, and 3) Jones Act if applicable. Employers Liability in the amount of $1,000,000 shall be provided. All policies shall contain a waiver of subrogation in favor of the
indemnitees. 
 Automobile Liability—SPRAGUE OPERATING RESOURCES shall provide automobile liability coverage in the amount of
$1,000,000. 
 Property—SPRAGUE OPERATING RESOURCES shall provide proof of either an All Risk property insurance policy or a Named
Perils policy and a Difference in Conditions policy covering the oil terminal property on a replacement cost basis. The policy(ies) shall contain a waiver of subrogation in favor of the indemnitees. Coverage shall include fire department charges and
costs of fire suppression chemicals. 
 Difference in Conditions—SPRAGUE OPERATING RESOURCES shall obtain a limit of $25,000,000 and
coverage shall include Wharfingers Liability, Charterer’s Liability, Terminal Owners Liability and Safe Berth exposure. 
 Oil Pollution
Bond—SPRAGUE OPERATING RESOURCES shall post an oil pollution bond in the amount of $25,000 for the SPRAGUE MASSACHUSETTS of Massachusetts, Division of Water Pollution Control, per statutory requirements as in effect from time to time. Each
of SPRAGUE HOLDINGS and SPRAGUE MASSACHUSETTS shall be listed as a principal on the bond along with SPRAGUE OPERATING RESOURCES. SPRAGUE OPERATING RESOURCES shall provide a certified copy of the bond to each of SPRAGUE HOLDINGS and SPRAGUE
MASSACHUSETTS. 
 Vessel Requirements—SPRAGUE OPERATING RESOURCES must obtain a certificate of insurance from each vessel
that docks at the terminal. The certificate must be obtained prior to docking and must include coverage for Protection & Indemnity and specifically list the vessel. 
 Oil Pollution Coverage—SPRAGUE OPERATING RESOURCES shall maintain all coverage required pursuant to the Oil Pollution Act of 1990 and the regulations promulgated thereunder, as the same may be
in effect from time to time. SPRAGUE OPERATING RESOURCES shall also insure that all vessels transporting Oil to the Oil Terminal maintain such coverage.EX-10.8

 Exhibit 10.8 

FORM OF 
 SPRAGUE
RESOURCES LP 
 2013 LONG TERM INCENTIVE PLAN 

PHANTOM UNIT AGREEMENT 

This Phantom Unit Agreement (this “Agreement”) is made and entered into by and between Sprague Resources
GP LLC, a Delaware limited liability company (the “General Partner”), and [                    ] (the “Service
Provider”). This Agreement is effective as of the [    ] day of [            ], 20[    ] (the “Date of Grant”).
Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan (as defined below), unless the context requires otherwise. 

W I T N E S S E T H: 

WHEREAS, Sprague Resources LP (the “Partnership”), acting through the Board of
Directors of the General Partner (the “Board”), has adopted the Sprague Resources LP 2013 Long Term Incentive Plan (the “Plan”) to, among other things, attract, retain and motivate certain employees
and directors of the Partnership, the General Partner and their respective Affiliates (collectively, the “Partnership Entities”); and 

WHEREAS, the Board has authorized the grant of Phantom Units of the Partnership to directors, employees and officers as part of their
compensation for services provided to the Partnership. 
 NOW, THEREFORE, in consideration of the Service Provider’s
agreement to provide or to continue providing services, the Service Provider and the General Partner agree as follows:  
 1.
Grant of Phantom Units. The General Partner hereby grants to the Service Provider [                    ] Phantom Units, subject to all of
the terms and conditions set forth in the Plan and in this Agreement, including without limitation, those restrictions described in Section 4, whereby each Phantom Unit represents the right to receive one Unit of the Partnership (each, a
“Phantom Unit”). 
 2. Phantom Unit Account. The General Partner shall establish
and maintain a bookkeeping account on its records for the Service Provider (a “Phantom Unit Account”) and shall record in such Phantom Unit Account: (a) the number of Phantom Units granted to the Service
Provider and (b) the amount deliverable to the Service Provider at settlement on account of Phantom Units that have vested. The Service Provider shall not have any interest in any fund or specific assets of the Partnership by reason of this
Award or the Phantom Unit Account established for the Service Provider.  
 SIGNATURE PAGE 

TO 

PHANTOM UNIT AGREEMENT 

 3. Rights of Service Provider. No Units shall be issued to the Service Provider at
the time the grant is made, and the Service Provider shall not be, nor have any of the rights and privileges of, a unitholder or limited partner of the Partnership with respect to any Phantom Units recorded in the Phantom Unit Account. The
Service Provider shall have no voting rights with respect to the Phantom Units. In the event the Partnership pays any distributions in respect of its outstanding Units and, on the record date for such distribution, the Service Provider holds Phantom
Units granted pursuant to this Agreement that have not vested and been settled, the Partnership shall deliver to the Service Provider an amount in cash or property in the same form the distribution was delivered to unitholders generally based on the
number of Units related to the portion of the Service Provider’s Phantom Units that have not been settled as of the record date for the distribution (the “DER”), such distribution equivalents to be
delivered to the Service Provider on or promptly following the date that the Partnership pays such cash distribution (however, in no event shall the DER payment be made later than 30 days following the date on which the Partnership pays such
distribution to unitholders generally). Notwithstanding the date of payment, the Service Provider will vest in such DER as of the record date for such distribution. No interest will accrue on any such right between the issuance of the distribution
to unitholders generally and the settlement of the DER. 
 4. Vesting of Phantom Units. The Phantom Units are
restricted in that they may be forfeited by the Service Provider and in that they may not, except as otherwise provided in the Plan, be transferred or otherwise disposed of by the Service Provider. Subject to the terms and conditions of this
Agreement, the forfeiture restrictions on the Phantom Units shall lapse, and the Phantom Units shall vest as follows:  
  

					
	 Vesting Date
	  	Cumulative Vested Percentage	 
	 On [            , 20    ]
	  	 	[    	]% 
	 On [            , 20    ]
	  	 	[    	]% 
	 On [            , 20    ]
	  	 	[    	]% 
	 On [            , 20    ]
	  	 	[    	]% 
	 On [            , 20    ]
	  	 	[    	]% 

 provided, however, that such restrictions will lapse, and the Phantom Units shall vest in accordance with the foregoing
provision only if the Service Provider has continuously provided services to the Partnership Entities from the Date of Grant until the date of vesting. 

6. Separation from Service. 

(a) Termination for Any Reason. If the Service Provider experiences a separation from service with the Partnership Entities for any
reason other than the Service Provider’s death or Disability (as defined below) prior to the date all Phantom Units have vested in accordance with Section 4 above, then all Phantom Units granted pursuant to this Agreement that have not yet
vested shall become null and void as of the date of such separation from service. 

  
 2 

 (b) Termination Due to Death or Disability. If the Service Provider experiences a
separation from service with the Partnership Entities due to death or Disability prior to the date all Phantom Units have vested in accordance with Section 4 above, then all restrictions described in Section 4 shall lapse and all Phantom
Units granted pursuant to this Agreement shall become immediately vested and nonforfeitable and be settled in accordance with Section 1 and Section 8 of this Agreement as soon as practicable thereafter, but in no event later than 30 days
following the separation from service. 
 “Disability” means that the Service Provider is unable to engage in
substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.  

7. Change of Control. In the event of a Change of Control prior to the date all Phantom Units have vested in accordance with
Section 4 above, then all restrictions described in Section 4 shall lapse and all Phantom Units granted pursuant to this Agreement shall become immediately vested and nonforfeitable and be settled in accordance with Section 1 and
Section 8 of this Agreement as soon as practicable thereafter, but in no event later than 30 days following the Change of Control. 

8. Settlement Date; Manner of Settlement. The settlement date or dates of the Units related to the Service Provider’s
Phantom Units will be the date or dates on which the restrictions on such Phantom Units expire as provided in Sections 4 or 6 of this Agreement. Any fractional Phantom Units shall be rounded up to the next whole number of Phantom Units. The Service
Provider agrees that any vested Units that he acquires upon vesting of the Phantom Units will not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws, the Plan or the
rules, regulations and other requirements of the U.S. Securities and Exchange Commission (the “SEC”) and any stock exchange upon which the Units are then listed. The Service Provider also agrees that any
certificates representing the Units acquired under this award may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws. In addition to the terms and conditions provided herein,
the Partnership may require that the Service Provider make such covenants, agreements, and representations as the Committee, in its sole discretion, deems advisable in order to comply with any such laws, rules, regulations, or requirements.

 8. Limitations on Transfer. The Service Provider agrees that he shall not dispose of (meaning, without limitation,
sell, transfer, pledge, exchange, hypothecate or otherwise dispose of) any Phantom Units or other rights hereby acquired prior to the date the Phantom Units are vested and paid. Any attempted disposition of the Phantom Units in violation of the
preceding sentence shall be null and void and the Restricted Units that the Service Provider attempted to dispose of shall be forfeited. 

10. Adjustment. The number of Phantom Units granted to the Service Provider pursuant to this Agreement shall be adjusted to
reflect distributions of the Partnership paid in units, unit splits or other changes in the capital structure of the Partnership, all in accordance with the Plan. All provisions of this Agreement shall be applicable to such new or additional or
different units or securities distributed or issued pursuant to the Plan to the same extent that such provisions are applicable to the units with respect to which they were distributed or issued.  

  
 3 

 11. Violation of Law, Regulation or Rule. The General Partner shall not be required
to deliver any Units hereunder if, upon the advice of counsel for the General Partner, such acquisition or delivery would violate the Securities Act of 1933 or any other applicable federal, state, or local law or regulation or the rules of the
exchange upon which the Company’s Units are traded.  
 12. Copy of Plan. By the execution of this Agreement, the
Service Provider acknowledges receipt of a copy of the Plan. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any applicable law, then such provision will be deemed to be modified to the minimum extent
necessary to render it legal, valid and enforceable; and if such provision cannot be so modified, then this Agreement will be construed as if not containing the provision held to be invalid, and the rights and obligations of the parties will be
construed and enforced accordingly. 
 13. Notices. Whenever any notice is required or permitted hereunder, such notice
must be in writing and personally delivered or sent by mail. Any such notice required or permitted to be delivered hereunder shall be deemed to be delivered on the date on which it is personally delivered or, whether actually received or not, on the
third business day (on which banking institutions in the State of Texas are open) after it is deposited in the United States mail, certified or registered, postage prepaid, addressed to the person who is to receive it at the address which such
person has theretofore specified by written notice delivered in accordance herewith. The General Partner or the Service Provider may change at any time and from time to time by written notice to the other, the address which it or he previously
specified for receiving notices. The General Partner and the Service Provider agree that any notices shall be given to the General Partner or to the Service Provider at the following addresses:  

 

			
	General Partner:	  	Sprague Resources GP LLC
		  	Attn: Legal Department
		  	Two International Drive, Suite 200
		  	Portsmouth, NH 03801
		
	Service Provider:	  	At the Service Provider’s current address as shown in the General Partner’s records.

 14. General Provisions.  

(a) Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan. The Committee shall
have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of a majority of the Committee with respect thereto and with respect to this Agreement shall be final and binding upon the Service Provider and
the General Partner. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control. 

  
 4 

 (b) No Effect on Service. Nothing in this Agreement or in the Plan shall be construed as
giving the Service Provider the right to be retained in the employ or service of the Partnership Entities. Furthermore, the Partnership Entities may at any time terminate the service relationship with the Service Provider free from any liability or
any claim under the Plan or this Agreement, unless otherwise expressly provided in the Plan, this Agreement or other written agreement. 

(c) Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without
regard to conflicts of law principles thereof. 
 (d) Amendments. This Agreement may be amended only by a written agreement executed
by the General Partner and the Service Provider, except that the Committee may unilaterally waive any conditions or rights under, amend any terms of, or alter this Agreement provided no such change (other than pursuant to Section 7(b), 7(c),
7(d), 7(e), or 7(g) of the Plan) materially reduces the rights or benefits of the Service Provider with respect to the Phantom Units without his consent. 

(e) Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the General Partner
or the Partnership and upon any person lawfully claiming under the Service Provider. 
 (f) Entire Agreement. This Agreement and the
Plan constitute the entire agreement of the parties with regard to this subject matter hereof, and contain all the covenants, promises, representations, warranties and agreements between the parties with respect to the Phantom Units granted hereby.
Without limiting the scope of the preceding sentence, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect. 

(g) No Liability for Good Faith Determinations. Neither the Partnership Entities nor the members of the Committee and the Board shall
be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Phantom Units granted hereunder. 

(h) No Guarantee of Interests. The Board and the Partnership Entities do not guarantee the Units from loss or depreciation. 

(i) Tax Withholding. To the extent that the vesting of a Phantom Unit or distribution thereon results in the receipt of compensation by
the Service Provider with respect to which any of the Partnership Entities has a tax withholding obligation pursuant to applicable law, unless other arrangements have been made by the Service Provider that are acceptable to such Partnership Entity,
the Service Provider shall deliver to the Partnership Entity such amount of money as the Partnership Entity may require to meet its withholding obligations under applicable law. No settlement of Phantom Units shall be made pursuant to this Agreement
until the Service Provider has paid or made arrangements approved by the Partnership Entity to satisfy in full the applicable tax withholding requirements of the Partnership Entity with respect to such event. 

  
 5 

 (j) Insider Trading Policy. The terms of the Partnership’s insider trading policy
with respect to Units are incorporated herein by reference. 
 (k) Severability. If any provision of this Agreement is held to be
illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision
had never been included herein. 
 (l) Headings. The titles and headings of Sections are included for convenience of reference only
and are not to be considered in construction of the provisions hereof. 
 (m) Gender. Words used in the masculine shall apply to the
feminine where applicable, and wherever the context of this Agreement dictates, the plural shall be read as the singular and the singular as the plural. 

(n) Clawback. Notwithstanding any provisions in the Plan or this Agreement to the contrary, any portion of the payments and benefits
provided under this Agreement or the sale of the Units granted hereunder shall be subject to a clawback or other recovery by the Partnership Entities to the extent necessary to comply with applicable law including, without limitation, the
requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any SEC rule. 
 (o) Consent to Electronic
Delivery; Electronic Signature. In lieu of receiving documents in paper format, the Service Provider agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Partnership may be required to deliver
(including, without limitation, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award
made or offered by the Partnership. Electronic delivery may be via a Partnership electronic mail system or by reference to a location on a Partnership intranet to which the Service Provider has access. The Service Provider hereby consents to any and
all procedures the Partnership has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Partnership may be required to deliver, and agrees that his or her electronic signature is
the same as, and shall have the same force and effect as, his or her manual signature. 
 [Signature Page to Follow] 

  
 6 

 IN WITNESS WHEREOF, the General Partner has caused this Agreement to be executed by its
officer thereunto duly authorized, and the Service Provider has set his hand as to the date and year first above written.  
  

			
	SPRAGUE RESOURCES GP LLC
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	[                    ]
	
	  

	Service Provider

  

  
 SIGNATURE
PAGE 
 TO 

PHANTOM UNIT AGREEMENT

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