Document:

EX-10.6

 

Exhibit 10.6

SECOND AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT

     This Second Amendment to Revolving Credit and Security Agreement is dated the 1st
day of May, 2007, by and among SPI Petroleum LLC, a Delaware limited liability company (the
“Parent”), Maxum Petroleum, Inc. (f/k/a Global Petroleum, Inc.), a Delaware corporation (“MPI”),
Pecos, Inc., a California corporation (“PI”), General Petroleum Corporation, a California
corporation (“GPC”), Rainier Petroleum Corporation, a Washington corporation (“RPC”), Sedro-Woolley
Holdings Corporation, a Washington corporation (“SWHC”), G.P. Atlantic, Inc., a South Carolina
corporation (“GPAI”), Simons Petroleum, Inc., a Texas corporation (“SPI-TX”), Simons Petroleum,
Inc., an Oklahoma corporation (“SPI-OK”), Hartney Fuel Oil Co., an Illinois corporation (“HFOC”),
Petroleum Supply Company, Inc., an Illinois corporation (“PSCI”), Hartney Brothers, Inc., an
Illinois corporation (“HBI”), SPI Acquisition LLC, a Delaware limited liability company (“SPIA”),
ETI Acquisition LLC, a Delaware limited liability company (“ETIA”), Canyon State Oil Company, Inc.,
an Arizona corporation (“CSOC”), Petroleum Products, Inc., a West Virginia corporation (“PPI”),
Petroleum Transport, Inc., a West Virginia corporation (“PTI”), Petroleum Fueling, Inc., a West
Virginia corporation (“PFI”) (the Parent, MPI, PI, GPC, RPC, SWHC, GPAI, SPI-TX, SPI-OK, HFOC,
PSCI, HBI, SPIA, ETIA, CSOC, PPI, PTI and PFI are each, a “Borrower” and collectively, the
“Borrowers”), by PNC Bank, National Association (“PNC”), and the other financial institutions from
time to time party thereto (PNC and the other financial institutions are each, a “Lender” and
collectively, the “Lenders”), PNC as agent for the Lenders (in such capacity, the “Agent”),
JPMorgan Chase Bank, N.A. (“JPMorgan”), Bank of America, N.A. (“BOA”), The CIT Group/Business
Credit, Inc. (“CIT”), LaSalle Business Credit LLC (“LaSalle”), and Wells Fargo Foothill, LLC
(“Wells Fargo”), as co-documentation agents for the Lenders (Wells Fargo, JPMorgan, BOA, CIT and
LaSalle are collectively, the “Co-Documentation Agents”) (the “Second Amendment”).

W I T N E S S E T H:

     WHEREAS, the Borrowers (excluding PPI, PTI and PFI), the Lenders, the Agent and the
Co-Documentation Agents entered into that certain Revolving Credit and Security Agreement, dated
September 18, 2006, as amended by that certain First Amendment, dated October 26, 2006 (as further
amended, modified, or supplemented from time to time, the “Loan Agreement”); and

     WHEREAS, the Borrowers desire to amend certain provisions of the Loan Agreement and the
Lenders and the Agent shall permit such amendments pursuant to the terms and subject to the
conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises contained herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows:

     1. All capitalized terms used herein which are defined in the Loan Agreement shall have the
same meaning herein as in the Loan Agreement unless the context clearly indicates otherwise.

     2. Section 1.2 of the Loan Agreement is hereby amended by deleting the following definitions
in their entirety and replacing them with the following:

 

 

     “Acquisition Agreements” shall mean the collective
reference to the Pecos Acquisition Agreement, the Canyon Acquisition
Agreement and the Total Petroleum Acquisition Agreement.

     “Eurodollar Rate” shall mean for any Eurodollar Rate
Loan for the then current Interest Period relating thereto the
interest rate per annum determined by Agent by dividing (the
resulting quotient rounded upwards, if necessary, to the nearest
1/100th of 1% per annum) (i) the rate which appears on the Bloomberg
Page BBAM1 (or on such other substitute Bloomberg page that displays
rates at which U.S. dollar deposits are offered by leading banks in
the London interbank deposit market), or the rate which is quoted by
another source selected by the Agent which has been approved by the
British Bankers’ Association as an authorized information vendor for
the purpose of displaying rates at which U.S. dollar deposits are
offered by leading banks in the London interbank deposit market (an
“Alternate Source”), at approximately 11:00 a.m., London time, two
(2) Business Days prior to the commencement of such Interest Period
as the London interbank offered rate for U.S. Dollars for an amount
comparable to such Eurodollar Rate Loan and having a borrowing date
and a maturity comparable to such Interest Period (or if there
shall at any time, for any reason, no longer exist a Bloomberg Page
BBAM1 (or any substitute page) or any Alternate Source, a comparable
replacement rate determined by the Agent at such time (which
determination shall be conclusive absent manifest error)), by (ii) a
number equal to 1.00 minus the Reserve Percentage. The Eurodollar
Rate may also be expressed by the following formula:

	 	 	 	 	 	 	 
	 

	 	Eurodollar Rate =
	 	Average of London interbank offered rates quoted by
Bloomberg as shown on Bloomberg page BBAM1 or
appropriate successor	 	 
	 

	 	 	 	 

1.00 — Reserve Percentage
	 	 

     “Holdings” shall mean Maxum Petroleum, Inc. (f/k/a
Global Petroleum, Inc.), a Delaware corporation.

     “JPM Secured Parties” shall mean the JPM Administrative
Agent and the JPM Lenders.

     “Management Agreement” shall mean that certain
Professional Services Agreement dated as of September 18, 2006, as
amended by that certain letter dated April 27, 2007, by and among
NCA II Management, LLC, a Washington limited liability company, Waud
Capital Partners, L.L.C., a Delaware limited

- 2 -

 

liability company, RBCP Energy Fund Investments, LP, a Delaware
limited partnership, Holdings, Simons Petroleum, Inc., an Oklahoma
corporation, and the Parent.

     “Maximum Revolving Advance Amount” shall mean Two
Hundred Thirty Five Million and 00/100 Dollars ($235,000,000.00), or
such higher amount, which may result from the provisions of Section
2.24 hereof.

     “Other Documents” shall mean the Revolving Credit Note,
any Guaranty, any Guarantor Security Agreement, the Collateral
Assignment, the Intercreditor Agreement, the Mortgages and any and
all other agreements, instruments and documents, including, without
limitation, guaranties, pledges, collateral assignments, powers of
attorney, consents, and all other writings heretofore, now or
hereafter executed and delivered by any Borrower or any Loan Party
in favor of Agent or any Lender as required by this Agreement or any
of the foregoing in respect of the implementation or performance
hereof or thereof.

     “Pricing Increment” means:

     (A) for and with respect to Revolving Advances, the percentage
per annum (with respect to Domestic Rate Loans or Eurodollar Rate
Loans, as the case may be) determined by reference to the Fixed
Charge Coverage Ratio as set forth below:

	 	 	 	 	 	 	 	 	 
	 	 	Domestic	 	Eurodollar
	Fixed Charge Coverage Ratio	 	Rate Loans	 	Rate Loans
	less than 1.25 to 1.00
	 	 	0.25	%	 	 	2.00	%
	greater than or equal to 1.25 to 1.00 but less
than 1.50 to 1.00
	 	 	0.00	%	 	 	1.75	%
	greater than or equal to 1.50 to 1.00 but less
than 1.75 to 1.00
	 	 	0.00	%	 	 	1.50	%
	greater than or equal to 1.75 to 1.00
	 	 	0.00	%	 	 	1.25	%

     ; and

- 3 -

 

     (B) for and with respect to the Letter of Credit Fees for the
ratable benefit of the Lenders as set forth in Section 3.2(a)(x),
the percentage per annum determined by reference to the Fixed Charge
Coverage Ratio as set forth below:

	 	 	 	 	 
	 	 	Letter of Credit Fee for
	 	 	Ratable Benefit of
	Fixed Charge Coverage Ratio	 	Lenders
	less than 1.25 to 1.00
	 	 	2.00 	%
	greater than or equal to 1.25 to 1.00
but less than 1.50 to 1.00
	 	 	1.75 	%
	greater than or equal to 1.50 to 1.00
but less than 1.75 to 1.00
	 	 	1.50 	%
	greater than or equal to 1.75 to 1.00
	 	 	1.25 	%

     ; and

     (C) for and with respect to the facility fees relating to the
Revolving Advances for the ratable benefit of the Lenders as set
forth in Section 3.3, the percentage per annum determined by
reference to the Fixed Charge Coverage Ratio as set forth below:

	 	 	 	 	 
	 	 	Facility Fee for Ratable
	Fixed Charge Coverage Ratio	 	Benefit of Lenders
	less than 1.25 to 1.00
	 	 	0.375	%
	greater than or equal to 1.25 to 1.00
but less than 1.50 to 1.00
	 	 	0.250	%
	greater than or equal to 1.50 to 1.00
but less than 1.75 to 1.00
	 	 	0.250	%
	greater than or equal to 1.75 to 1.00
	 	 	0.250	%

     From the Second Amendment Closing Date until three Business
Days following the date on which the Agent receives the Borrowers’
quarterly financial statements and a duly executed Compliance
Certificate as of June 30, 2007, the Pricing Increment shall be
determined based on a Fixed Charge Coverage Ratio greater than or
equal to 1.50 to 1.00 but less than 1.75 to 1.00. Thereafter, the
Pricing Increment shall be determined, quarterly, based on the most
recent quarterly financial statements delivered

- 4 -

 

by the Borrowers under Section 9.8 determined for the
nine-month period ending June 30, 2007 and for each twelve-month
period ending on the last day of each September, December, March and
June thereafter; provided, however, that (i) each
change in the Pricing Increment shall be effective three Business
Days after the date on which the Agent receives the relevant
financial statements and a duly executed Compliance Certificate
demonstrating such ratio (including during any Interest Period), and
(ii) the Pricing Increment shall be determined on the basis of a
Fixed Charge Coverage Ratio of less than 1.25 to 1.00 for so long as
the Agent has not received the information described in clause (i)
of this proviso as and when required under Section 9.8 (without
prejudice to the Lenders’ right to charge interest at the Default
Rate as provided in Section 3.1 and charge Default Letter of Credit
Fees as provided in Section 3.2).

     3. Section 1.2 of the Loan Agreement is hereby amended by inserting the following
definitions:

     “Alternate Source” shall have the meaning assigned to
that term in the definition of Eurodollar Rate.

     “Collateral Assignment” shall mean that certain
Collateral Assignment of Contract Rights, executed and delivered by
PPI to the Agent with respect to the Supply Agreement, together with
all amendments, supplements, modifications, substitutions and
replacements thereto and thereof.

     “Loan Agreement” shall mean this Revolving Credit and
Security Agreement, as the same may be amended, modified or
supplemented from time to time.

     “PFI” shall mean Petroleum Fueling, Inc., a West
Virginia corporation.

     “PPI” shall mean Petroleum Products, Inc., a West
Virginia corporation.

     “PTI” shall mean Petroleum Transport, Inc., a West
Virginia corporation.

     “Second Amendment Closing Date” shall mean May 1, 2007.

     “Supply Agreement” shall mean that certain Master
Retailer Supply Agreement, dated May 1, 2007, made by and among PPI,
FSI Limited Liability Company, a West Virginia limited liability
company, OSI Limited Liability Company, a West

- 5 -

 

Virginia limited liability company, and M&J Operations, LLC, a
West Virginia limited liability company, as may be amended,
supplemented or otherwise modified from time to time.

     “Suppressed Availability” shall mean a Dollar amount
equal to the Formula Amount minus the Maximum Revolving Advance
Amount, provided that such number cannot be less than Zero and
00/100 Dollars ($0.00).

     “Total Petroleum Acquisition” shall mean the
acquisition by MPI of all of the capital stock of PFI, PPI and PTI
pursuant to the terms of the Total Petroleum Acquisition Agreement.

     “Total Petroleum Acquisition Agreement” shall mean the
Stock Purchase Agreement dated as of May 1, 2007, by and among the
Total Petroleum Seller, PPI, PTI and MPI.

     “Total Petroleum Acquisition Documents” shall mean the
Total Petroleum Acquisition Agreement and all other documents,
agreements and instruments executed in connection with the Total
Petroleum Acquisition Agreement.

     “Total Petroleum Seller” shall mean Patrick C. Graney,
III, an individual.

     4. The Loan Agreement is hereby amended by deleting all references to “this Agreement” and
replacing such references with references to “this Loan Agreement”.

     5. The Loan Agreement is hereby amended by deleting all references to “the Credit Agreement”
and replacing such references with references to “the Loan Agreement”.

     6. The Loan Agreement is hereby amended by deleting all references to “Global Petroleum,
Inc.” and replacing such references with references to “Maxum Petroleum, Inc. (f/k/a Global
Petroleum, Inc.)”.

     7. Section 2.1(a)(y)(ii)(B) of the Loan Agreement is hereby deleted in its entirety and in
its stead is inserted the following:

     (B) $45,000,000.00,

     minus

     8. Section 2.22 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

- 6 -

 

     2.22 Use of Proceeds.

     Borrowers shall apply the proceeds of Advances to (i) repay
existing indebtedness owed to the Existing Lenders, existing
subordinated indebtedness and existing purchase money indebtedness,
(ii) consummate the Transactions, (iii) pay fees and expenses
relating to this transaction, (iv) consummate the acquisition
transactions for which Borrower shall have obtained the requisite
consent or as otherwise permitted hereunder, and (v) provide for
their working capital and other general corporate needs.

     9. Section 5.5 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

     5.5 Financial Statements.

     (a) The pro forma balance sheet of Borrowers and their
consolidated Subsidiaries on a consolidated basis at the Parent
level (the “Pro Forma Balance Sheet”) when furnished to
Agent in accordance herewith shall reflect the consummation of the
transactions contemplated by the Acquisition Agreements, under this
Agreement and under the JPM Credit Agreement (collectively being
referred to herein as the “Transactions”) and shall fairly
reflect in all material respects the financial condition of
Borrowers and their consolidated Subsidiaries on a consolidated
basis as of the Second Amendment Closing Date after giving effect to
the Transactions, and is to be prepared in accordance with GAAP
(subject to the absence of footnotes, the application of SFAS 133
and 130 and normal year-end audit adjustments). The Pro Forma
Balance Sheet has been certified as accurate, complete and correct
in all material respects by the President and Chief Financial
Officer on behalf of Parent.

     (b) The annual (x) cash flow projections, (y) income
projections and (z) a projected balance sheet of the Borrowers
prepared on a consolidated basis at the Parent level for the fiscal
years ending June 30, 2007 and June 30, 2008, copies of which are
annexed hereto as Exhibit 5.5(b) (the
“Projections”), were prepared by Parent, are based on
underlying assumptions which were believed to be reasonable as of
the date made, and reflect Parent’s judgment, based on assumptions
which were believed to be reasonable at the time made regarding what
was believed to be at such time a reasonably likely set of results
for the projected period, provided, however, since
such Projections are by their nature prospective and contingent on a
wide range of factors, actual results therefore may vary
significantly, provided, further, nothing

- 7 -

 

has occurred in the interval between the date of determination
of the reasonableness of the assumptions referenced above and the
date of the delivery of the Projections to Agent to render Parent’s
belief regarding the foregoing assumptions no longer reasonable.
The Projections together with the Pro Forma Balance Sheet, are
referred to as the “Pro Forma Financial Statements”.

     10. Section 6.10 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

     6.10 Exercise and Maintenance of Rights.

     Enforce all of its rights under each Acquisition Agreement and
any indemnification agreement and escrow agreement in connection
therewith including, but not limited to, all indemnification rights
and escrow rights and pursue all remedies available to it with
diligence and in good faith in connection with the enforcement of
any such rights, in each case as such Borrower may, in its good
faith business judgment, determine, and discharge its duties and
obligations under the Affiliation Agreements in its good faith
business judgment and maintain the Affiliation Agreements in full
force and effect; provided, however, if any Borrower decides not to
enforce any right of a material nature under the Acquisition
Agreements, such Borrower shall keep Agent informed of any such
material developments.

     11. Article 6 of the Loan Agreement is hereby amended by inserting the following new Section
6.15:

     6.15 Collection Accounts.

     Within 60 days (or such longer time period as reasonably
determined by Agent) after the Second Amendment Closing Date the
Agent shall have received evidence reasonably satisfactory to the
Agent that PPI, PTI and PFI have directed all of PPI’s, PTI’s and
PFI’s Customers to remit payments to the Blocked Accounts.

     12. Section 7.1(a)(ii)(G) of the Loan Agreement is hereby deleted in its entirety and in its
stead is inserted the following:

          (G) immediately prior to and after giving effect to such
Permitted Acquisition (including the payment of any prospective
portion of the purchase price or earn-outs), merger or
consolidation, except the Total Petroleum Acquisition, the Borrowers
shall have in excess of Fifty Million and 00/100 Dollars
($50,000,000.00) of Undrawn Availability;

- 8 -

 

     13. Section 7.1(a)(ii)(I) of the Loan Agreement is hereby deleted in its entirety and in its
stead is inserted the following:

          (I) the Aggregate Consideration paid by any such Borrower for
all such Permitted Acquisitions, mergers or consolidations,
excluding the Total Petroleum Acquisition, shall not exceed Twenty
Million and 00/100 Dollars ($20,000,000.00) in the aggregate in any
fiscal year of the Borrowers and Fifty Million and 00/100 Dollars
($50,000,000.00) in the aggregate during the Term.

     14. Section 7.6 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

     7.6 Capital Expenditures.

     Contract for, purchase or make any expenditure or commitments
for fixed or capital assets (including capitalized leases and
transactions encompassing indebtedness relating to any financed
purchase) in any fiscal year in an aggregate amount for all
Borrowers in excess of $35,000,000.00 for such fiscal year;
provided that no such capital expenditures shall be
permitted to be made at such time when an Event of Default is then
occurring and is continuing or would otherwise arise upon the making
of any such expenditure, provided, further,
reinvestment of proceeds by a Borrower of asset dispositions
pursuant hereto and use of insurance proceeds for the foregoing
expenditures (but in each case only to the extent of the amount of
proceeds actually received from the applicable disposition or the
applicable insurance payment) shall be subject to no Event of
Default having occurred or being continued, but when properly made
shall not be included for purposes of determining compliance with
the provisions of this Section.

     15. The first paragraph of Section 7.7 of the Loan Agreement is hereby amended by deleting
the phrase “(plus any amount accrued by unpaid due to a prior Default or Event of Default)” and in
its stead inserting the phrase “(plus any amount accrued but unpaid due to a prior Default or
Event of Default)”.

     16. Section 7.19 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

     7.19 Other Agreements.

     Enter into any material amendment, waiver or modification of
the Acquisition Agreements, the Affiliation Agreements or any
agreements or documents relating to any of the foregoing in a manner
materially adverse to the interests of Agent and Lenders.

- 9 -

 

     17. Section 9.2 of the Loan Agreement is hereby deleted in its entirety and in its stead is
inserted the following:

     9.2 Schedules.

     Deliver to Agent on or before the twentieth (20th) day of each
month as and for the prior month (a) accounts receivable agings
reconciled to the general ledger; (b) accounts payable schedules
reconciled to the general ledger; (c) Inventory reports regarding
warehouse locations and regarding Designated Supply Contracts
Locations; (d) hedging activities report and data and other
information regarding unhedged positions as Agent shall deem
advisable or appropriate under the then existing circumstances; and
(e) a consolidated monthly Borrowing Base Certificate, including
ineligible calculations (which shall be calculated as of the last
day of such prior month and which, in any event, remains subject to
review and approval by Agent), in each of the foregoing cases in
form acceptable to Agent. If at any time after the sixtieth
(60th) day following the Second Amendment Closing Date
the sum of (y) Undrawn Availability plus (z) Suppressed Availability
is less than $35,000,000, Borrowers shall also deliver to Agent on a
weekly basis on Friday of each week relating to the prior week’s
activities (consisting of the seven days commencing on Monday of
such prior week and ending on Sunday of such week): (a) a Borrowing
Base Certificate (which remains subject to review and approval by
Agent); (b) a report regarding sales, collections and credits; (c)
an Inventory report regarding fuel listing amounts in both dollar
value and in gallons quantity for Designated Supply Contracts
Locations, Pathway Network locations, remote site tanks and marine
terminal tanks. In addition, each Borrower will deliver to Agent at
such intervals as Agent may require as Agent shall reasonably
determine: (i) confirmatory assignment schedules, (ii) copies of
Customer’s invoices, (iii) evidence of shipment or delivery, and
(iv) such further schedules, documents and/or information regarding
the Collateral as Agent may require including, without limitation,
trial balances and test verifications. In connection with its
review and approval of the Borrowing Base Certificate that the
Borrowers supply to Agent, and without limitation of the other
rights of Agent hereunder with respect to the Collateral, Agent
shall have the right to confirm and verify all Receivables by any
manner and through any medium it considers advisable and do whatever
it may deem reasonably necessary to protect its interests hereunder.
The items to be provided under this Section are to be in form
satisfactory to Agent and executed by each Borrower and delivered to
Agent from time to time solely for Agent’s convenience in
maintaining records of the Collateral, and any Borrower’s failure to
deliver any of such

- 10 -

 

items to Agent shall not affect, terminate, modify or otherwise
limit Agent’s Lien with respect to the Collateral. Without limiting
the generality of the foregoing, any of the foregoing reports
relative to Receivables of Borrower shall identify, as a separate
subcategory within such report, Receivables arising from each of the
Designated Supply Contracts, and any of the foregoing reports
relative to Inventory of Borrower shall identify, as a separate
subcategory within such report, Inventory located at each of the
Designated Supply Contracts Locations.

     18. “Annex A” to the Loan Agreement is hereby deleted and in its stead is inserted “Annex
A” attached hereto.

     19. The following schedules to the Loan Agreement are hereby amended, such that the
information set forth on each of the correspondingly numbered schedules to the Loan Agreement
shall be supplemented by the addition thereto of the information set forth on the correspondingly
numbered schedules attached hereto as Attachment B. Schedule 1.2.1 – Mortgaged
Properties; Schedule 1.2.2 – Permitted Encumbrances; Schedule 1.2.3 – Customers Re: Extended Term
Receivables; Schedule 1.2.4 – Designated Supply Contracts; Schedule 4.1 – Commercial Tort Claims;
Schedule 4.5 – Equipment and Inventory Locations; Schedule 4.15(c) – Location of Executive
Offices; Schedule 4.19(a) – Real Property; Schedule 5.2(a) – States of Qualification and Good
Standing; Schedule 5.2(b) – Subsidiaries; Schedule 5.4 – Federal Tax Identification Numbers;
Schedule 5.6 – Prior Names; Schedule 5.7 – Environmental Matters; Schedule 5.8(b) – Litigation;
Schedule 5.8(d) – Plans; Schedule 5.9 – Intellectual Property, Source Code Escrow Agreements;
Schedule 5.10 – Licenses and Permits; Schedule 5.14 – Labor Disputes; Schedule 5.24 – Bailees of
Prepaid Fuel Inventory; Schedule 7.3 – Guaranties; Schedule 7.4 – Investments; Schedule 7.8 –
Indebtedness; and Schedule 7.10 – Affiliate Transactions.

     20. “Exhibit A” to the Loan Agreement is hereby deleted and in its stead is inserted
“Exhibit A” attached hereto.

     21. “Exhibit 5.5(c)” to the Loan Agreement (Financial Projections) is hereby deleted and in
its stead is inserted “Exhibit 5.5” attached hereto.

     22. “Exhibit 8.1(k)” to the Loan Agreement (Financial Condition Certificate) is hereby
deleted and in its stead is inserted “Exhibit 8.1(k)” attached hereto.

     23. “Exhibit 16.3” to the Loan Agreement (Commitment Transfer Supplement) is hereby deleted
and in its stead is inserted “Exhibit 16.3” attached hereto.

     24. The provisions of Sections 2 through 23 of this Second Amendment shall not become
effective until the Agent has received the following items, each in form and substance reasonably
acceptable to the Agent and its counsel:

          (a) this Second Amendment, duly executed by each of the Borrowers and each of the Lenders;

- 11 -

 

          (b) the documents and conditions listed in the Preliminary Closing Agenda set forth
on Attachment A attached hereto and made a part hereof;

          (c) payment of all fees and expenses owed to the Agent and its counsel in
connection with this Second Amendment; and

          (d) such other documents as may be reasonably requested by the Agent.

     25. Each Borrower hereby reconfirms and reaffirms each of the representations and warranties
made by it in or pursuant to the Loan Agreement and any related documents to which it is a party,
and each of the representations and warranties made to the Lenders contained in any certificate,
document or financial or other statement furnished at any time under or in connection with this
Agreement or any related agreement, are true and correct in all material respects on and as of
such date as if made on and as of such date, other than such representations and warranties
relating to a specific earlier time and in such case such representations and warranties shall
continue to be true in all material respects as of such earlier date, except as such
representations and warranties may have heretofore been amended, modified or waived in writing in
accordance with the Loan Agreement.

     26. Each Borrower acknowledges and agrees that each and every document, instrument or
agreement, which at any time has secured the Obligations including, without limitation, the Loan
Agreement and the Mortgages hereby continue to secure the Obligations.

     27. Each Borrower hereby represents and warrants to the Lenders and the Agent that (i) such
Borrower has the full power, authority and legal right to enter into this Second Amendment and to
perform all its respective Obligations hereunder, (ii) the officers of such Borrower executing
this Second Amendment have been duly authorized to execute and deliver the same and bind such
Borrower with respect to the provisions hereof, (iii) the execution and delivery hereof by such
Borrower and the performance and observance by such Borrower of the provisions hereof and of the
Loan Agreement and all documents executed or to be executed therewith (a) are within such
Borrower’s corporate powers, have been duly authorized, are not in contravention of law or the
terms of such Borrower’s by-laws, certificate of incorporation, operating agreement or other
documents relating to such Borrower’s formation, all as applicable, or to the conduct of such
Borrower’s business or of any material agreement or undertaking to which such Borrower is a party
or by which such Borrower is bound, and (b) will not conflict with nor result in any breach in any
of the provisions of or constitute a default under or result in the creation of any Lien except
Permitted Encumbrances upon any asset of such Borrower under the provisions of any agreement,
charter document, operating agreement, instrument, by-law, or other instrument to which such
Borrower is a party or by which it or its property may be bound, and (iv) this Second Amendment,
the Loan Agreement and the documents executed or to be executed by such Borrower in connection
herewith or therewith constitute the legal, valid and binding obligation of such Borrower
enforceable in accordance with their terms, except as such enforceability may be limited by any
applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights
generally.

     28. Each Borrower represents and warrants that (i) no Event of Default has occurred and is
continuing under the Loan Agreement, nor will any occur as a result of the execution and

- 12 -

 

delivery of this Second Amendment or the performance or observance of any provision hereof
and (ii) it presently has no known claims or actions of any kind at law or in equity against the
Lenders or the Agent arising out of or in any way relating to the Loan Agreement or the Other
Documents.

     29. Each reference to the Loan Agreement that is made in the Loan Agreement or any other
document executed or to be executed in connection therewith shall hereafter be construed as a
reference to the Loan Agreement as amended hereby. Each of PPI, PTI and PFI hereby confirm by
executing this Second Amendment that, on and after the date hereof, each of PPI, PTI and PFI shall
be a “Borrower” under the Loan Agreement and each of the Other Documents.

     30. The agreements contained in this Second Amendment are limited to the specific agreements
made herein. Except as amended hereby, all of the terms and conditions of the Loan Agreement and
the Other Documents shall remain in full force and effect. This Second Amendment amends the Loan
Agreement and is not a novation thereof.

     31. This Second Amendment may be executed in any number of counterparts and by the different
parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an
original, but all such counterparts shall constitute but one and the same instrument.

     32. This Second Amendment shall be governed by, and shall be construed and enforced in
accordance with, the Laws of the State of New York without regard to the principles of the
conflicts of law thereof. Each Borrower hereby consents to the jurisdiction and venue of any
federal or state court located in the County of New York, State of New York with respect to any
suit arising out of or mentioning this Second Amendment.

[INTENTIONALLY LEFT BLANK]

- 13 -

 

     IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto have caused this
Second Amendment to be duly executed by their duly authorized officers the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	SPI Petroleum LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing
	 

	 	Name:	 	Michel
Salbaing
	 	 
	 
	 	Title:	 	Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Maxum Petroleum, Inc., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing
	 

	 	Name:
	 	Michel Salbaing

	 	 
	 

	 	Title:
	 	Treasurer

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Simons Petroleum, Inc., a Texas corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing	 	 
	 

	 	Name:
	 	Michel Salbaing

	 	 
	 

	 	Title:
	 	Treasurer

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Simons Petroleum, Inc., an Oklahoma corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing
	 

	 	Name:
	 	Michel Salbaing

	 	 
	 

	 	Title:
	 	Treasurer

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SPI Acquisition LLC, a
Delaware limited
liability company	 	 
	 
	 	 	 	 	 	 
	 	 	By: Maxum Petroleum, Inc.	 	 
	 	 	Its: Managing Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing
	 

	 	Name:
	 	Michel Salbaing

	 	 
	 

	 	Title:
	 	Treasurer

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ETI Acquisition LLC, a Delaware limited liability

company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michel Salbaing
	 

	 	Name:
	 	Michel Salbaing

	 	 
	 

	 	Title:
	 	Treasurer

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	Hartney Fuel Oil Co., an Illinois corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel
Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Hartney Brothers, Inc., an Illinois corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel
Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Petroleum Supply Company, Inc., an Illinois corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel
Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Canyon State Oil Company, Inc., an Arizona corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel
Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Pecos, Inc., a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel
Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	General Petroleum Corporation, a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Rainier Petroleum Corporation, a Washington corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
Treasurer
	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	Sedro-Woolley Holdings Corporation, a Washington

corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	G.P. Atlantic, Inc., a South Carolina corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Petroleum Products, Inc., a West Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Petroleum Transport, Inc., a West Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Petroleum Fueling, Inc., a West Virginia corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Michel Salbaing	 	 
	 

	 	Name:
	 	 
 Michel Salbaing
	 	 
	 

	 	Title:
	 	 
 Treasurer
	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	PNC Bank, National Association, as Agent
and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Terrance O. McKinney	 	 
	 

	 	Name:
	 	Terrance O. McKinney

	 	 
	 

	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A., as Co-Documentation
Agent and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Devin Mock	 	 
	 

	 	Name:
	 	J. Devin Mock

	 	 
	 

	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	LaSalle Business Credit LLC, as Co-Documentation Agent
and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steve Friedlander	 	 
	 

	 	Name:
	 	Steve Friedlander

	 	 
	 

	 	Title:
	 	Senior
Vice President

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Bank of America, N.A., as Co-Documentation Agent and
as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Philip Nomura	 	 
	 

	 	Name:
	 	Philip Nomura

	 	 
	 

	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	The CIT Group/Business Credit, Inc., as Co-Documentation
Agent and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark Long	 	 
	 

	 	Name:
	 	Mark Long

	 	 
	 

	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Wells Fargo Foothill, LLC, as Co-Documentation
Agent and as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Hill	 	 
	 

	 	Name:
	 	David Hill

	 	 
	 

	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 
	 	 	Comerica Bank, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Keith Nichols	 	 
	 

	 	Name:
	 	 
 Keith
Nichols
	 	 
	 

	 	Title:
	 	 
 Vice
President
	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	North Fork Business Capital, as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Todd Kemme	 	 
	 

	 	Name:
	 	 
 Todd
Kemme
	 	 
	 

	 	Title:
	 	 
 Vice
President
	 	 
	 

	 	 	 	 

	 	 

 

 

ANNEX A

BORROWERS

SPI Petroleum LLC

Maxum Petroleum, Inc.

Pecos, Inc.

General Petroleum Corporation

Rainier Petroleum Corporation

Sedro-Woolley Holdings Corporation

G.P. Atlantic, Inc.

Simons Petroleum, Inc. (Texas)

Simons Petroleum, Inc. (Oklahoma)

Hartney Fuel Oil Co.

Petroleum Supply Company, Inc.

Hartney Brothers, Inc.

SPI Acquisition LLC

ETI Acquisition LLC

Canyon State Oil Company, Inc.

Petroleum Products, Inc.

Petroleum Transport, Inc.

Petroleum Fueling, Inc.EX-10.7

 

Exhibit 10.7

PROFESSIONAL SERVICES AGREEMENT

          THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is made as of September 18,
2006, between NCA II Management, LLC, a Washington limited liability company (“Northwest”),
Waud Capital Partners, L.L.C., a Delaware limited liability company (“Waud”), RBCP Energy
Fund Investments, LP, a Delaware limited partnership (“RBC”), Global Petroleum, Inc., a
Delaware corporation (the “Company”), Simons Petroleum, Inc., an Oklahoma corporation
(“Simons”), and SPI Petroleum LLC, a Delaware limited liability company (“SPI”).
Northwest, Waud and RBC are referred to herein collectively as the “Providers” and
individually as a “Provider”.

          WHEREAS, the Company and its affiliates desire to receive financial and management consulting
services from each of the Providers and obtain the benefit of the experience of each of the
Providers in business and financial management generally and its knowledge of SPI and its
subsidiaries and SPI’s and its subsidiaries’ financial affairs in particular;

          WHEREAS, Simons and the Providers are parties to that certain Professional Services Agreement,
dated as of April 9, 2004, as amended thereafter in accordance with its terms (the “Original
Agreement”);

          WHEREAS, Simons and the Providers hereby terminate the Original Agreement such that it shall
be of no further force or effect and, at such time, all rights and obligations thereunder shall
cease (except that any amounts payable to the Providers under the Original Agreement as of the date
hereof shall remain due and owing by Simons); and

          WHEREAS, Providers are willing to provide financial and management consulting services and the
compensation arrangements set forth in this Agreement are designed to compensate Providers for such
services.

          NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements
hereinafter set forth and the mutual benefits to be derived herefrom, the parties hereby agree as
follows:

          1. Engagement. The Company hereby engages each of the Providers as a financial and
management consultant, and each of the Providers hereby agrees to provide financial and management
consulting services to the Company and its affiliates, all on the terms and subject to the
conditions set forth below.

          2. Services of Providers. Each of the Providers hereby agrees to consult with the
board of directors of the Company (the “Board”), the boards of directors (or similar
governing body) of the Company’s subsidiaries and affiliates and the management of the Company and
its subsidiaries and affiliates in such manner and on such business and financial matters as may be
reasonably requested from time to time, including, but not limited to: (a) corporate strategy; (b)
budgeting of future corporate investments; (c) acquisition and divestiture strategies; and (d) debt
and equity financings.

          3. Personnel. Each of the Providers shall provide and devote to the performance of
this Agreement such partners, members, employees and agents of Provider as such Provider shall deem
appropriate for the furnishing of the services contemplated hereby.

 

 

          4. Transaction and Financing Fees.

	 	(a)	 	Upon consummation of the transactions contemplated by that
certain Stock Purchase Agreement, dated as of September 18, 2006 (the
“Pecos Purchase Agreement”), by and among the Company, Pecos, Inc., a
California corporation (“Pecos”), North Star Trust Company, as trustee
of the Trust (as defined in the Pecos Purchase Agreement), the Pecos Employee
Stock Ownership and 401(k) Plan and the Other Shareholders (as defined in the
Pecos Purchase Agreement) (the “Pecos Transaction”), the Company shall
pay or cause to be paid to the Providers in immediately available funds (x) an
acquisition structuring fee in an aggregate amount equal to $3,000,000.00,
which represents 2.00% of the aggregate consideration payable under the Pecos
Transaction (the “Pecos Acquisition Fee”), and (y) an ESOP structuring
fee in an aggregate amount equal to $1,500,000.00, which represents 1.00% of
the aggregate consideration payable under the Pecos Transaction (the “ESOP
Transaction Fee”). Each of the Pecos Acquisition Fee and the ESOP
Transaction Fee shall be shared by the Providers in proportion to the number of
Class A Units of SPI held by the Providers and their affiliates (other than, in
the case of Northwest, Perot Bissell, but, in the case of RBC, including SPI
U.S. Investor, LLC) as of immediately after consummation of the Pecos
Transaction.
	 
	 	(b)	 	Upon consummation of the transactions contemplated by that
certain Stock Purchase Agreement, dated as of September 18, 2006 (the
“Canyon State Purchase Agreement”), by and among SPI, Simons, Thomas F.
Arndt and the Thomas F. Arndt Trust, Under Trust Agreement Originally Dated as
of June 1, 2005 (the “Canyon State Transaction”), the Company shall pay
or cause to be paid to the Providers in immediately available funds a
transaction fee in an aggregate amount equal to $1,097,990.00,
which represents 3.00% of the aggregate consideration payable under the
Canyon State Transaction (the “Canyon State Transaction Fee”). The
Canyon State Transaction Fee shall be shared by the Providers in proportion
to the number of Class A Units of SPI held by the Providers and their
affiliates (other than, in the case of Northwest, Perot Bissell, but, in the
case of RBC, including SPI U.S. Investor, LLC) as of immediately after
consummation of the Canyon State Transaction.
	 
	 	(c)	 	Upon the execution and delivery of this Agreement, the Company
shall pay or cause to be paid to the Providers in immediately available funds
(x) a financing fee (the “Financing Fee”) in an aggregate amount equal
to $2,635,470.00 in consideration for the Providers’ assistance with preparing
placement materials; and (y) a restructuring fee ( a “Restructuring
Fee”) in an aggregate amount equal to $2,635,470.00 in consideration for
the Providers’ advisory services with respect to the restructuring contemplated
by that

- 2 -

 

	 	 	 	certain Recapitalization Agreement, dated as of September 18, 2006, by
and among SPI and the Unitholders named therein. Each of the Financing Fee and
the Restructuring Fee shall be shared by the Providers in proportion to the
number of Class A Units of SPI held by the Providers and their affiliates
(other than, in the case of Northwest, Perot Bissell, but, in the case of RBC,
including SPI U.S. Investor, LLC) as of immediately after the execution and
delivery of this Agreement.
	 
	 	(d)	 	After the date hereof and at the time of any purchase of equity
of Parent, or the making of any capital contribution to Parent, by any Provider
or any affiliate of any Provider from and after the date hereof (each, a
“Subsequent Investment”), the Company shall pay or cause to be paid to
the Providers in immediately available funds a placement fee (the
“Subsequent Placement Fees”) in an aggregate amount equal to 3.00% of
the aggregate transaction value and/or any other investment made by the Company
or its affiliates contemporaneously with such Subsequent Investment. Any such
amount paid to the Providers shall be shared by the Providers in proportion to
the number of Class A Units of SPI held by the Providers and their affiliates
(other than, in the case of Northwest, Perot Bissell, but, in the case of RBC,
including SPI U.S. Investor, LLC) as of the date of the Subsequent Investment.

          5. Management Fee. Commencing on the date hereof, the Company shall pay or cause
Simons to pay to the Providers a management fee (the “Annual Management Fee”) in an
aggregate amount equal to $1,500,000 per year, subject to annual increases of 20% at the beginning
of the Company’s fiscal year commencing July 1, 2007, and each July 1st thereafter. The
Annual Management Fee shall be payable to the Providers in equal monthly installments in advance
and shall be pro rated for any partial periods. Any installment of the Annual Management Fee shall
be allocated among the Providers based on their relative ownership (including through their
affiliates, other than, in the case of Northwest, Perot Bissell, but, in the case of RBC, including
through SPI U.S. Investor, LLC) of Class A Units of SPI at the time of such payment. In the event,
and during any period, the Company reasonably anticipates that
payment of all or any portion of the Annual Management Fee would violate a term of any loan or
credit agreement to which the Company or any of its subsidiaries is a party, then (i) such fees, or
portion thereof, shall accrue rather than being paid when otherwise due, (ii) such accrued but
unpaid fees shall bear interest at a market rate, and (iii) such accrued fees (plus the interest
thereon) shall be paid at the earliest date that the Company reasonably anticipates that the making
of such payment will not cause such violation, or that such violation will not cause material harm
to the Company. The foregoing provision is intended to comply with proposed guidance issued by the
Internal Revene Service (the “IRS”) under Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”), in order to avoid the acceleration of any tax, or imposition of any penalty,
under Code §409A with respect to the payment of fees pursuant to this Agreement. The parties
hereto agree to modify the foregoing provisions of this Section 5 to comply with any future
guidance issued under Code §409A to the extent necessary

- 3 -

 

to avoid the acceleration of any tax, or
imposition of any penalty, under Code §409A with respect to the payment of fees pursuant to this
Agreement.

          6. Expenses. The Company shall promptly reimburse each Provider for all travel
expenses, legal fees and other out-of-pocket fees and expenses as have been or may be incurred by
each Provider, their partners, members, directors, officers and employees in connection with the
rendering of any services hereunder.

          7. Liability. No Provider nor any of its affiliates, partners, managers, members,
officers, employees or agents shall be liable to SPI or its subsidiaries or affiliates for any
loss, liability, suit, claim, cost, damage or expense (including attorneys’ fees) arising out of or
in any way related to the performance of services contemplated by this Agreement
(“Losses”), unless such Losses shall have been finally determined by a court of competent
jurisdiction to be a direct result of the fraud or willful misconduct of such Provider.

          8. Indemnification. The Company and SPI shall, and shall cause their subsidiaries and
affiliates to, indemnify and hold harmless each of the Providers, its partners, members,
affiliates, officers, agents, representatives and employees against and from any and all Losses,
other than Losses which shall have been finally determined by a court of competent jurisdiction to
be the direct result of such Provider’s fraud or willful misconduct. The Company and SPI shall,
and shall cause their subsidiaries and affiliates to, defend at their own cost and expense any and
all suits or actions which may be brought against the Company, SPI, any of their respective
subsidiaries or any of the Providers or any of their partners, members, affiliates, officers,
agents, representatives and employees or in which any of the foregoing persons may be impleaded
with others or upon any matter directly or indirectly relating to arising out of this Agreement or
the performance hereof by each of the Providers or any of their partners, members, affiliates,
officers, agents, representatives or employees, except that if and to the extent such Losses shall
be proven by a court of competent jurisdiction to be the direct result of fraud or willful
misconduct by the Providers or any of their partners, members, managers, affiliates, officers,
agents, representatives or employees, then such person shall reimburse the Company, SPI and their
affiliates for the costs of such defense and other liabilities incurred directly by the Company,
SPI and their affiliates in connection therewith.

          9. Providers an Independent Contractor. Each Provider shall perform services
hereunder as an independent contractor, retaining control over and responsibility for its
own operations and personnel. None of the Providers nor its partners, directors, officers, or
employees shall be considered employees or agents of SPI, Simons, the Company or any of their
respective affiliates as a result of this Agreement, nor shall any of them have authority to
contract in the name of or bind SPI, Simons, the Company or any of their respective affiliates,
except as expressly agreed to in writing by SPI, Simons or the Company (or such affiliate(s)).

          10. Notices. Any notice, report, demand, claim or payment required or permitted to be
given or made under this Agreement by one party to the other shall be in writing and shall be
deemed to have been duly given (i) when delivered personally to the recipient, (ii) one business
day

- 4 -

 

after being sent to the recipient by reputable overnight courier (charges prepaid), (iii) one
business day after being sent to the recipient by facsimile transmission or electronic mail, or
(iv) four business days after being mailed to the recipient by registered or certified mail, return
receipt requested and postage prepaid, to the recipient at the following addresses (or to such
other address or to the attention of such other person as the recipient party has specified by
prior written notice to the sending party):

	 	 	 	 	 	 	 
	 	 	If to Providers:
	 
	 	 	 	 	 	 
	 	 	 	 	NCA II Management, LLC

600 University Street, Suite 1720

Seattle, WA 98101

	 

	 	 	 	Telephone:
	 	(206) 689-5615
	 

	 	 	 	 	 	(206) 689-5614
	 

	 	 	 	Attention:
	 	E. Perot Bissell
	 

	 	 	 	 	 	Bradford N. Creswell
	 
	 	 	 	 	 	 
	 	 	 	 	RBCP Energy Fund Investments, LP

c/o Cadent Energy Partners, LLC

287 Bowman Avenue, 4th Floor

Purchase, NY 10577
	 

	 	 	 	Telephone:
	 	(914) 253-0404
	 

	 	 	 	Telecopy:
	 	(914) 253-0406
	 

	 	 	 	Attention:
	 	Bruce Rothstein
	 
	 	 	 	 	 	 
	 	 	 	 	Waud Capital Partners, L.L.C.

560 Oakwood Ave., Suite 203

Lake Forest, IL 60045
	 

	 	 	 	Telephone:
	 	(847) 604-9550
	 

	 	 	 	Telecopy:
	 	(847) 604-9554
	 

	 	 	 	Attention:
	 	Reeve B. Waud
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601
	 

	 	 	 	Attention:
	 	Richard W. Porter, P.C. and
	 

	 	 	 	 	 	Martin A. DiLoreto, Jr
	 
	 	 	 	 	 	 

- 5 -

 

	 	 	 	 	 	 	 
	 	 	If to SPI, Simons or the Company:
	 
	 	 	 	 	 	 
	 	 	 	 	c/o Global Petroleum, Inc.

1120 N.W. 63rd Street, Suite 300
	 	 	 	 	Oklahoma City, OK 73116-6505
	 

	 	 	 	Telephone:
	 	(405) 848-3500
	 

	 	 	 	Telecopy:
	 	(405) 858-5000
	 

	 	 	 	Attention:
	 	Board of Directors
	 
	 	 	 	 	 	 
	 	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601
	 

	 	 	 	Attention:
	 	Richard W. Porter, P.C. and
	 

	 	 	 	 	 	Martin A. DiLoreto, Jr.

          11. Entire Agreement. This Agreement contains the complete and entire understanding
and agreement of the parties with respect to the subject matter hereof and supersedes all prior and
contemporaneous understandings, conditions and agreements, oral or written, express or implied,
(including the Original Agreement, except to the extent provided herein), respecting the engagement
of Providers in connection with the subject matter hereof.

          12. Amendments. The provisions of this Agreement may be amended, modified and/or
waived (and this Agreement may be terminated) only with the prior written consent of SPI and the
Company and with Basic Investor Approval (as such term is defined in the Amended and Restated
Limited Liability Company Agreement of SPI, dated as of September 18, 2006, by and among the
Company and its unitholders, as amended from time to time in accordance with its terms);
provided that any amendment, modification, or waiver which materially and adversely affects
any Provider in a manner materially and adversely different than another Provider shall also
require the written consent of that Provider so materially and adversely affected. No termination
of this Agreement shall affect the Company’s obligations with respect to the fees, costs and
expenses (including the fees, costs and expenses contemplated by Sections 4, 5 and 6 hereof)
incurred by Providers in rendering services hereunder and not reimbursed or otherwise paid by the
Company as of the effective date of such termination.

          13. Waiver of Breach. The waiver by any party of a breach of any provision of this
Agreement by any other party shall not operate or be construed as a waiver of any subsequent breach
of that provision or any other provision hereof.

          14. Assignment. No party may assign its rights or obligations under this Agreement
without the express written consent of the other parties hereto, except that any Provider may
assign its rights and obligations to any affiliate of such Provider.

          15. Successors. This Agreement and all the obligations and benefits hereunder shall
inure to the successors and permitted assigns of the parties.

- 6 -

 

          16. Counterparts. This Agreement may be executed and delivered by each party hereto
in separate counterparts (including by means of facsimile), each of which when so executed and
delivered shall be deemed an original and both of which taken together shall constitute one and the
same agreement.

          17. Choice of Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Illinois, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Illinois or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Illinois.

          18. Waiver of Fees.

          (a) The Annual Management Fee, the Pecos Acquisition Fee, the ESOP Transaction Fee, the Canyon
State Transaction Fee, the Financing Fee and the Restructuring Fee each shall be reduced by the
following amounts (which amounts are collectively referred to as the “Waived Fee Amount”
and which Waived Fee Amount shall only reduce the amounts otherwise payable to Waud hereunder, it
being understood that such waivers shall not affect any
amounts payable hereunder to any of the Providers other than Waud): (i) in the case of the
portion of the Annual Management Fee payable to Waud, an amount equal to the lesser of (A) the
amount of the Annual Management Fee that Waud has irrevocably elected to waive in a written notice
delivered to the Company (a “Waived Fee Notice”) at least sixty (60) days prior to the
applicable due date for such Annual Management Fee (provided that Waud has elected to waive of the
first six installments of the Annual Management Fee beginning with the installment that would have
been payable on the date hereof), and (B) the amount that would be payable to Waud on such date
pursuant to this Agreement in the absence of this Section 18; (ii) in the case of the
portion of the Pecos Acquisition Fee, the ESOP Transaction Fee, the Canyon State Transaction Fee,
the Financing Fee and the Restructuring Fee otherwise payable to Waud hereunder, an amount equal to
100% of such fees, which amount Waud elects to waive as of the date hereof by virtue of its
execution of this Agreement; and (iii) in the case of the Subsequent Placement Fees, an amount
equal to the lesser of (A) the amount of such Subsequent Placement Fee payable to Waud that Waud
has irrevocably elected to waive in a Waived Fee Notice delivered to the Company not less than five
days prior to the payment date therefore, and (B) the amount that would be payable to Waud on such
payment date pursuant to this Agreement in the absence of this Section 18.

          (b) Each of the Providers shall and shall cause each of their Affiliates to take all actions
necessary under SPI’s Amended and Restated Limited Liability Company Agreement as in effect from
time to time (the “LLC Agreement”) to promptly amend the LLC Agreement (the
“Amendment”) after the date hereof to provide for a special Distribution (to be defined in
the LLC Agreement), constituting a ‘profits interest’ within the meaning of Internal Revenue
Service Revenue Procedures 93-27 and 2001-43, but having priority over all other interests in SPI’s
profits, to Waud in an amount equal to the Waived Fee Amount, plus a reasonable yield thereon.

          (c) Notwithstanding anything herein to the contrary, if the Amendment is not executed and
delivered 10 business days after the date hereof, the Company shall pay or cause

- 7 -

 

Simons to Pay to
Waud or its affiliates such Waived Fee Amounts which would otherwise have been due to Waud as of
the date hereof in the absence of this Section 18, plus reasonable interest thereon.

* * * * *

- 8 -

 

     IN WITNESS WHEREOF, the undersigned have caused this Professional Services Agreement to be
duly executed and delivered on the date and year first above written.

	 	 	 	 	 
	 	 	NCA MANAGEMENT II, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bradford N. Creswell
	 

	 	 	 	 
	 

	 	Its:	 	Member
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	WAUD CAPITAL PARTNERS, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Reeve B. Waud
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	RBCP ENERGY FUND INVESTMENTS, LP
	 
	 	 	 	 
	 

	 	By:
	 	2001 RBCP U.S. GP LIMITED
	 

	 	Its:
	 	General Partners
	 
	 	 	 	 
	 

	 	By:	 	/s/ Alan R. Hibben
	 

	 	 	 	 
	 

	 	Name:	 	Alan R. Hibben
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SPI PETROLEUM LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca
	 

	 	 	 	 
	 

	 	Name:	 	George Fastuca
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SIMONS PETROLEUM, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca
	 

	 	 	 	 
	 

	 	Name:	 	George Fastuca
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	GLOBAL PETROLEUM, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca
	 

	 	 	 	 
	 

	 	Name:	 	George Fastuca
	 

	 	 	 	 
	 

	 	Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]