Document:

Exhibit 10.1

		

			

		

			 

		

		

		
			Exhibit 10.1
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			TAX MATTERS AGREEMENT
		

		
			between
		

		
			MURPHY OIL CORPORATION,
on behalf of itself
and the members
of the Distributing Group,
		

		
			and
		

		
			Murphy USA Inc.,
on behalf of itself
and the members
of the Controlled Group
		

		
			Dated as of August 30, 2013
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

		

			 

		

 

		

			 

		

		TAX MATTERS AGREEMENT
		

		
			This Agreement is entered into as of the 30th day of August, 2013 between Murphy Oil Corporation  (“Distributing”), a Delaware corporation, on behalf of itself and the members of the Distributing Group, as defined below, and Murphy USA Inc.  (“Controlled”), a Delaware corporation, on behalf of itself and the members of the Controlled Group, as defined below.
		

		
			WITNESSETH:
		

		
			WHEREAS, pursuant to the tax laws of various jurisdictions, certain members of the Controlled Group presently file certain tax returns on an affiliated, consolidated, combined, unitary, fiscal unity or other, group basis (including as permitted by Section 1501 of the Internal Revenue Code of 1986, as amended (the “Code”)) with certain members of the Distributing Group;
		

		
			WHEREAS, Distributing and Controlled have entered into a Separation and Distribution Agreement, dated as of August 30, 2013 (the “Distribution Agreement”), providing for the distribution by Distributing to its shareholders of all of the common stock of Controlled that is held by Distributing (the “Distribution”) and certain other matters;
		

		
			WHEREAS, Distributing and Controlled desire to set forth their agreement on the rights and obligations of Distributing, Controlled and the members of the Distributing Group and the Controlled Group, respectively, with respect to (A) the handling and allocation of federal, state, local and foreign taxes incurred in taxable periods beginning prior to the Distribution Date, as defined below, (B) taxes resulting from the Distribution and transactions effected in connection with the Distribution and (C) various other tax matters;
		

		
			NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows:
		

		
			SECTION 1.    Definitions.    
		

		
			            (a)            As used in this Agreement:
		

		
			“Active Business” shall mean an active trade or business relied upon to satisfy the requirements of Section 355 of the Code as set forth in the Ruling Request, as defined below, and in the opinion being delivered by counsel in connection with the Distribution.
		

		
			“After-Tax Amount” shall mean an additional amount necessary to reflect the hypothetical Tax consequences of the receipt or accrual of any payment, using the maximum statutory rate (or rates, in the case of an item that affects more than one Tax) applicable to the recipient of such payment for the relevant Taxable year, reflecting, for example, the effect of the deductions available for interest paid or accrued and for Taxes, such as state and local income Taxes.
		

		

		

		 

		

			 

		

		

			 

		

		

			 

		

 

		“AMT” shall mean the alternative minimum tax, within the meaning of Section 55 of the Code.
		

		
			“Closing of the Books Method” shall mean the apportionment of items between portions of a Taxable period based on a closing of the books and records on the Distribution Date (as if the Distribution Date were the end of the Taxable period), provided that any items not susceptible to such apportionment shall be apportioned on the basis of elapsed days during the relevant portion of the Taxable period.
		

		
			“Code” shall have the meaning ascribed thereto in the recital.
		

		
			“Combined Apportionment Factor” shall mean the apportionment factor reflected on the applicable consolidated, combined or unitary state or local income Tax return and utilized in computing the combined, consolidated or unitary state or local income Tax liability.
		

		
			“Consolidated Federal Return” shall mean a Pre-Deconsolidation Period Return filed in respect of federal income Taxes by a Consolidated Group.
		

		
			“Consolidated Group”  shall mean any group consisting of (i) at least one member of the Distributing Group that filed (or will file) any Pre-Deconsolidation Period Return that reflects the income, assets or operations of any member of the Controlled Group or (ii) at least one member of the Controlled Group that filed (or will file) any Pre-Deconsolidation Period Return that reflects the income, assets or operations of any member of the Distributing Group.
		

		
			“Consolidated State Return” shall mean a Pre-Deconsolidation Period Return filed in respect of state or local income Taxes by a Consolidated Group, including, for the avoidance of doubt, any combined state income tax return.
		

		
			“Controlled” shall have the meaning ascribed thereto in the recital.
		

		
			“Controlled Group” shall mean Controlled and each of its direct and indirect Subsidiaries immediately after the Distribution, including any predecessors thereto.
		

		
			“Deconsolidation Date” shall mean with respect to a Return the date on which any member of the Controlled Group is no longer consolidated, combined or in a unitary relationship (as the case may be) with any member of the Distributing Group in filing such Return.
		

		
			“Distributing” shall have the meaning ascribed thereto in the recital.
		

		
			“Distributing Assumed Liability Payment” means a payment by any member of the Distributing Group in respect of a Murphy Oil Liability, as defined in the Distribution Agreement.
		

		
			“Distributing Group” shall mean Distributing and each of its direct and indirect Subsidiaries other than those entities comprising the Controlled Group.
		

		
			“Distribution” shall have the meaning ascribed thereto in the recital.
		

		

		

		 

		

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		“Distribution Agreement” shall have the meaning ascribed thereto in the recital.
		

		
			“Distribution Date” shall mean the date on which the Distribution occurs.
		

		
			“Ethanol Facility Disposition” shall mean the sale or other disposition of (i) any assets of the ethanol production facilities located in Hankinson, North Dakota and Hereford, Texas or (ii) the stock or other interests of any entity that holds only such assets,  and shall include the discontinuation of the operations of any such facility.
		

		
			“Equity Securities” shall mean any stock or other securities treated as equity for tax purposes, options, warrants, rights, convertible debt, or any other instrument or security that affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an amount determined by reference to the value of stock.
		

		
			“Final Determination” shall mean (i) with respect to federal income Taxes, (A) a “determination” as defined in Section 1313(a) of the Code, or (B) execution of an IRS Form 870-AD (or any successor form thereto), as a final resolution of Tax liability for any Taxable period, except that a Form 870-AD (or successor form thereto) that reserves the right of the taxpayer to file a claim for Refund or the right of the IRS to assert a further deficiency shall not constitute a Final Determination with respect to the item or items so reserved; (ii) with respect to Taxes other than federal income Taxes, any final determination of liability in respect of a Tax that, under applicable law, is not subject to further appeal, review or modification through proceedings or otherwise; (iii) with respect to any Tax, any final disposition by reason of the expiration of the applicable statute of limitations; or (iv) with respect to any Tax, the payment of Tax by any member of the Distributing Group or the Controlled Group, whichever is responsible for payment of such Tax under applicable law, with respect to any item disallowed or adjusted by a Taxing Authority, provided that the provisions of Section 13 hereof have been complied with, or, if such section is inapplicable, that the party responsible under the terms of this Agreement for such Tax is notified by the party paying such Tax that it has determined that no action should be taken to recoup such disallowed item, and the other party agrees with such determination.
		

		
			“Group” shall mean the Controlled Group or the Distributing Group, as appropriate.
		

		
			“IRS” shall mean the Internal Revenue Service.
		

		
			“Loss Group” shall mean a Group that incurs a Separate Group Taxable Loss for the relevant Taxable period.
		

		
			“Person” shall have the meaning ascribed to it in Section 7701(a)(1) of the Code.
		

		
			“Post-Deconsolidation Period” shall mean any Taxable period (or portion thereof) beginning after the Deconsolidation Date.
		

		
			“Pre-Deconsolidation Period” shall mean any Taxable period (or portion thereof) ending on or before the Deconsolidation Date.
		

		

		

		 

		

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		“Refund” shall mean any refund of Taxes, including any reduction in Taxes by means of a credit, offset or otherwise.
		

		
			“Return” shall mean any Tax return, statement, report, form, election, claim or surrender (including estimated Tax returns and reports, extension requests and forms, and information returns and reports) required to be filed with any Taxing Authority.
		

		
			“Ruling Request” shall mean the private letter ruling request, dated December 12,  2012, together with all attachments, exhibits and supplements thereto submitted by Distributing to the IRS.
		

		
			“Separate Group Taxable Income” shall mean, with respect to a Group, such Group’s Taxable income computed as if such Group were a separate consolidated, combined or unitary group, and applying the Tax principles, including limitations and carryovers (excluding limits for charitable contributions and dividends received deduction, and accounting for deferred intercompany transactions consistent with the deferral and recognition rules of Treasury Regulations Section 1.1502-13 (or any successor rule) or analogous state or local rule), that would have been applicable to such Group had such Group never been part of the Consolidated Group or any other consolidated, combined or unitary group.  In the context of state and local Tax, Separate Group Taxable Income shall be computed prior to the application of any apportionment formula.
		

		
			“Separate Group Tax Liability” shall mean (i) with respect to federal income Taxes,  the product of a Group’s Separate Group Taxable Income, computed for federal income Tax purposes, and the highest federal income Tax rate imposed under the Code on the Taxable income of a corporation for the relevant Taxable period (or portion thereof), reduced by any Tax credits that the Group would be able to use if it were calculating its federal income Tax liability on a stand-alone basis and (ii) with respect to the Taxes of a particular state or locality, the product of the Group’s Separate Group Taxable Income and the Combined Apportionment Factor and the State Tax Rate, reduced by any applicable Tax credits that the Group would be able to use if it were calculating its Tax liability on a stand-alone basis.
		

		
			“Separate Group Taxable Loss” shall mean, with respect to a Group, such Group’s Taxable loss computed as if such Group were a separate consolidated, combined or unitary group, and applying the Tax principles, including limitations and carryovers (excluding limits for charitable contributions and dividends received deduction, and accounting for deferred intercompany transactions consistent with the deferral and recognition rules of Treasury Regulations Section 1.1502-13 (or any successor rule) or analogous state or local rule), that would have been applicable to such Group had such Group never been part of the Consolidated Group or any other consolidated, combined or unitary group.  In the context of state and local Tax, Separate Group Taxable Loss shall be computed prior to the application of any apportionment formula.
		

		
			“State Tax Rate” shall mean, with respect to a particular state or locality, the highest applicable Tax rate imposed under applicable law on the Separate Group Taxable Income of the Group for the relevant Taxable period (or portion thereof).
		

		

		

		 

		

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		“Subsidiary” of any Person shall mean any corporation, partnership or other entity directly or indirectly owned more than 50 percent (by vote or value) by such Person.
		

		
			“Tax” (and the correlative meaning, “Taxes,” “Taxing” and “Taxable”) shall mean (A) any tax imposed under Subtitle A of the Code, or any net income, gross income, gross receipts, alternative or add-on minimum, sales, use, business and occupation, value-added, trade, goods and services, ad valorem, franchise, profits, license, business royalty, withholding, payroll, employment, capital, excise, transfer, recording, severance, stamp, occupation, premium, property, asset, real estate acquisition, environmental, custom duty, or other tax, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest and any penalty, addition to tax or additional amount imposed by a Taxing Authority; or (B) any liability of a member of the Distributing Group or the Controlled Group for the payment of any amounts described in clause (A) as a result of any express or implied obligation to indemnify any other Person.
		

		
			“Tax Proceeding” shall mean any Tax audit, dispute or proceeding (whether administrative, judicial or contractual).
		

		
			“Taxing Authority” shall mean any governmental authority (domestic or foreign), including, without limitation, any state, municipality, political subdivision or governmental agency, responsible for the imposition of any Tax.
		

		
			            (b)            All capitalized terms used but not defined herein shall have the same meanings as in the Distribution Agreement.  Any term used in this Agreement which is not defined in this Agreement or the Distribution Agreement shall, to the extent the context requires, have the meaning assigned to it in the Code or the applicable Treasury regulations thereunder (as interpreted in administrative pronouncements and judicial decisions), in comparable provisions of applicable law or in the Ruling Request.
		

		
			SECTION 2.  Sole Tax Sharing Agreement.  Any and all existing Tax sharing agreements or arrangements, written or unwritten, between any member of the Distributing Group, on the one hand, and any member of the Controlled Group, on the other hand, shall be or shall have been terminated on or before the Distribution Date.  Following the Distribution, neither the members of the Controlled Group nor the members of the Distributing Group shall have any further rights or liabilities thereunder, and this Agreement shall be the sole Tax sharing agreements between the members of the Controlled Group, on the one hand, and the members of the Distributing Group, on the other hand. Distributing and Controlled shall act in good faith in the performance of this Agreement.
		

		
			SECTION 3.  Federal Income Taxes.  
		

		
			(a)       Return Filing.
		

		
			(i)    Distributing shall prepare and file, or cause to be prepared and filed, Consolidated Federal Returns for which the Consolidated Group is required or permitted to file a Consolidated Federal Return using, inter alia, information previously provided by Controlled. Controlled shall maintain all necessary information to file a Consolidated 
		

		 

		

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		Federal Return and shall provide Distributing with all such necessary information in accordance with past practice and in no event later than 45 days before such return is due.  Each member of the Consolidated Group shall execute and file such consents, elections and other documents as may be required or appropriate for the filing of such Consolidated Federal Returns.
		

		
			(ii)      To the extent that Controlled or any member of the Controlled Group is included in any Consolidated Federal Return for a Taxable period that includes the Distribution Date, Distributing shall include in such Consolidated Federal Return the results of Controlled or of the member of the Controlled Group on the basis of the Closing of the Books Method.
		

		
			(iii)Subject to the provisions of Sections 3(b), 6 and 7, Distributing shall pay, or cause to be paid, any and all federal income Taxes due or required to be paid with respect to, or required to be reported on, any such Consolidated Federal Return filed in accordance with Section 3(a)(i).
		

		
			(b)      Allocated Tax Charge.
		

		
			(i)   Distributing shall be responsible for calculating the Separate Group Taxable Income or Separate Group Taxable Loss, as the case may be, for each Group included in a Consolidated Federal Return.  Each Group included in a Consolidated Federal Return shall bear its Separate Group Tax Liability, if any.  For purposes of such calculation, the deduction for state and local Taxes to which each Group is entitled will be determined in a manner consistent with Section 4 of this Agreement.
		

		
			(ii) If the Controlled Group included in the Consolidated Federal Return incurs a Separate Group Taxable Loss, Distributing shall pay to the Controlled Group (A) the amount, if any, by which the federal income Taxes payable with respect to the Consolidated Federal Return are reduced by reason of the Controlled Group’s Separate Group Taxable Loss and (B) any Refund of federal income Taxes or other federal income Tax benefit attributable to such Separate Group Taxable Loss that is actually realized, in each case as determined by Distributing in its sole discretion. To the extent the Controlled Group receives a payment from Distributing in respect of a Separate Company Taxable Loss pursuant to this Section 3(b)(ii), such loss shall not be carried forward or carried back by the Controlled Group for purposes of determining Separate Group Taxable Income or Separate Group Taxable Loss in any other Taxable period (or portion thereof). To the extent the Controlled Group does not receive a payment from Distributing in respect of a Separate Group Taxable Loss pursuant to this Section 3(b)(ii), such loss may be carried forward or carried back, subject to any applicable limitation with respect to carry forward or carry back losses, by the Controlled Group for purposes of determining Separate Group Taxable Income or Separate Group Taxable Loss in another Taxable period (or portion thereof).
		

		
			(iii)In the event a Consolidated Group incurs an AMT liability with respect to any Taxable period (or portion thereof),Distributing shall be solely responsible for such 
		

		 

		

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		liability. Any Tax benefit arising from the utilization of a consolidated federal AMT credit shall be for the sole benefit of Distributing.
		

		
			SECTION 4.  State and Local Income Taxes.  
		

		
			(a)            Return Filing.
		

		
			(i)      Distributing shall prepare and file, or cause to be prepared and filed, Consolidated State Returns for which the Consolidated Group is required or permitted to file a Consolidated State Return using, inter alia, information previously provided by Controlled. Controlled shall maintain all necessary information to file a Consolidated State Return and shall provide Distributing with all such necessary information in accordance with past practice and in no event later than 45 days before such return is due.  Each member of the Consolidated Group shall execute and file such consents, elections and other documents as may be required or appropriate for the filing of such Consolidated State Returns.
		

		
			(ii)    To the extent that Controlled or any member of the Controlled Group is included in any Consolidated State Return for a Taxable period that includes the Distribution Date, Distributing shall include in such Consolidated State Return the results of Controlled or of the member of the Controlled Group on the basis of the Closing of the Books Method.
		

		
			(iii)  Subject to the provisions of Sections 4(b),  6 and 7,  Distributing shall pay, or cause to be paid, any and all income Taxes due or required to be paid with respect to, or required to be reported on, any such Consolidated State Return  filed in accordance with Section 4(a)(i).
		

		
			(iv)    In the event a Consolidated State Return is not filed, each relevant member of the Distributing Group and Controlled Group shall be responsible for (A) filing its own Return as a separate entity in respect of state and local income Taxes, or its own Return in respect of state and local income Taxes relating to a group consisting solely of members of the Distributing Group or members of the Controlled Group, as the case may be, on behalf of the separate group, in each case including requests for extension, as if this Agreement were not in effect and (B) making Tax payments (including estimated Tax payments, if necessary). Each such member filing a Return as a separate entity pursuant to this Section 4(a)(iv) shall be entitled to any Tax benefit and shall be liable for any Tax burden resulting from the filing of such separate Return.
		

		
			(b)      Allocated Tax Charge.
		

		
			(i)      Distributing shall be responsible for calculating the Separate Group Taxable Income or Separate Group Taxable Loss, as the case may be, for each Group included in a Consolidated State Return.  Each Group included in a Consolidated State Return shall bear its Separate Group Tax Liability, if any.
		

		 

		

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			(ii)    If the Controlled Group included in a Consolidated State Return incurs a Separate Group Taxable Loss, Distributing shall pay, or shall cause to be paid, to the Controlled Group (A) the amount, if any, by which the state or local income Taxes reflected on such Return are reduced by reason of the Controlled Group’s Separate Group Taxable Loss and (B) any Refund of state or local income Taxes or other state or local income Tax benefit attributable to such Separate Group Taxable Loss that is actually realized, in each case as determined by Distributing in its sole discretion.  To the extent the Controlled Group receives a payment from Distributing in respect of a Separate Group Taxable Loss pursuant to this Section 4(b)(ii), such loss shall not be carried forward or carried back by the Controlled Group for purposes of determining Separate Group Taxable Income or Separate Group Taxable Loss in any other Taxable period (or portion thereof).  To the extent the Controlled Group does not receive a payment from Distributing in respect of a Separate Group Taxable Loss pursuant to this Section 4(b)(ii), such loss may be carried forward or carried back, subject to any applicable limitation with respect to carry forward or carry back losses, by the Controlled Group for purposes of determining Separate Group Taxable Income or Separate Group Taxable Loss in another Taxable period (or portion thereof).
		

		
			SECTION 5.  Foreign Income Tax.  With respect to the calculation of each Group’s Tax liability for foreign Taxes, the principles set forth in Section 4 shall apply mutatis mutandis.
		

		
			SECTION 6.    Estimated Tax Payments.  
		

		
			(a)      If estimated Tax payments are required with respect to a Consolidated Group for a Pre-Deconsolidation Period, Distributing shall pay, or cause to be paid, to the IRS, and/or to each relevant state, local and foreign Taxing Authority, on behalf of the members of such Consolidated Group, those estimated Tax payments that are due on the relevant dates prescribed by applicable law.  On March 15 (or the proper due date under applicable law) of the year following the current Tax year, Distributing shall pay to the IRS, and to each relevant state, local and foreign Taxing Authority, on behalf of the members of any Consolidated Group, the payment, if any, required to be made with a request for an extension of time in which to file a Consolidated Federal Return or a Consolidated State Return, as the case may be.  Each Group’s share of such estimated Tax payments, and payments required to be made with a request for an extension of time in which to file a Consolidated Federal Return or a Consolidated State Return, shall be determined in a manner consistent with the methods set forth in Sections 3,  4 and 5 of this Agreement.  Reimbursement to Distributing of the Controlled Group’s share of any quarterly estimated tax payments or any payment made with a request for an extension of time in which to file a Consolidated Federal Return or a Consolidated State Return, shall be made within 20 business days after receiving notice of such liability from Distributing.
		

		
			(b)      Notwithstanding the provisions of Section 6(a), if Distributing requests in writing an advance reimbursement from the Controlled Group of the Controlled Group’s share of a quarterly estimated Tax payment or any payment required to be made with a request for an extension of time in which to file a Consolidated Federal Return or a Consolidated State Return, which request shall be not more than 10 business days and not less than 5 business days prior to 
		

		 

		

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		the due date of such payment, the Controlled Group shall reimburse Distributing not later than the due date of such estimated Tax payment.
		

		
			SECTION 7.     Settlement; Certain Other Tax Sharing Provisions.  
		

		
			(a)      Distributing shall calculate settlement of the final federal, state, local and foreign Tax liability for all Pre-Deconsolidation Periods, and notify the Controlled Group of such settlement. Subject to Section 21 of this Agreement (relating to dispute resolution procedures), the Controlled Group shall pay to Distributing its share of such Tax liability, as determined under Sections 3,  4 and 5 of this Agreement, within 20 business days after receiving notice of such Tax liability from Distributing. Any amounts paid by any member of the Controlled Group pursuant to Section 6 and any amounts receivable by the Controlled Group in respect of a Separate Group Taxable Loss or Tax credit shall be included in determining the payments due from the Controlled Group. If the sum of any payments by the Controlled Group pursuant to Section 6, and any amounts receivable by the Controlled Group in respect of a Separate Group Taxable Loss or Tax credit exceed its Tax liability, such excess shall be refunded to the Controlled Group. Interest will be due on any underpayment or overpayment of Tax, computed from the date on which a final Return is filed at the rate equal to the “prime” rate as published in the Wall Street Journal, Eastern Edition on such date.
		

		
			(b)      If a portion or all of an unused loss or Tax credit is allocated to a member of the Consolidated Group, pursuant to Treasury Regulations Section 1.1502-21(b) or Treasury Regulations Section 1.1502-79, and is carried back or forward to a Taxable year in which such member filed a separate Return or consolidated, combined or unitary Return with an affiliated group that is not a Consolidated Group, any Refund or reduction in Tax liability arising from such carry back or carryover shall be retained by such member, subject to future audit adjustments.  Notwithstanding the foregoing, Distributing, in its sole discretion, (i) shall determine whether an election shall be made to relinquish the entire carry back period with respect to part or all of a consolidated net operating loss for any Pre-Deconsolidation Period in accordance with Treasury Regulations Section 1.1502-21(b)(3) and (ii) may require Controlled to make an election to relinquish the entire carry back period with respect to all net operating losses and consolidated net operating losses attributable to Controlled in accordance with Proposed Treasury Regulations Section 1.1502-72(e)(1) (or any final, amended or successor version thereof that is substantively comparable).
		

		
			(c)      Notwithstanding Section 7(b) above, no member of the Controlled Group shall make any election to carry back any Tax item from a Post-Deconsolidation Period to a Pre-Deconsolidation Period without Distributing’s consent.  In the event that Distributing consents to the carry back of any Tax item by a member of the Controlled Group from a Post-Deconsolidation Period to a Pre-Deconsolidation Period or in the event that a member of the Controlled Group is required by applicable law to carry back a Tax item from a Post-Deconsolidation Period to a Pre-Deconsolidation Period, Distributing shall currently compensate the Controlled Group only for a Tax item that is carried back which does not result in the loss or deferral of any Tax attribute of any member of the Distributing Group.  In the event that such item of a member of the Distributing Group is only deferred, Distributing shall make a payment to the Controlled Group in respect of such deferred item at the time the Distributing Group 
		

		 

		

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		actually realizes the deferred Tax attribute.  To the extent the Distributing Group suffers a permanent loss of such Tax attribute, no payment shall be made to the Controlled Group.
		

		
			(d)      In the event that the Controlled Group is entitled to a Tax benefit by reason of a Distributing Assumed Liability Payment, Controlled shall pay to Distributing (A) the amount, if any, by which any Taxes payable by the Controlled Group are reduced by reason of the Distributing Assumed Liability Payment and (B) any Refund of Taxes or other Tax benefit attributable thereto that is actually realized, in each case as determined by Controlled in consultation with Distributing.
		

		
			(e)     Controlled and Distributing hereby acknowledge and agree that Sections 6 and 7(a) are applicable only with respect to Pre-Deconsolidation Periods for which a final Return is filed after the date hereof.
		

		
			(f)      Deductions and Reporting for Certain Equity-Based Awards.
		

		
			(i)      Distributing shall be entitled to the economic benefit of, and to the extent permitted by law, may file Returns claiming, the Tax deductions attributable to (x) the exercise of options to purchase stock of Distributing or (y) any payments (whether in cash or stock) made by Distributing pursuant to Section 3.04 of the Employee Matters Agreement in respect of any restricted stock units,  cash-based restricted stock units, or cash-based performance units, in each case that are held by employees or former employees of the Controlled Group.
		

		
			(ii)    To the extent Distributing determines that the Distributing Group will not or may not claim such Tax deductions (whether as a result of disallowance of deductions originally claimed by Distributing or otherwise), the Controlled Group shall pay to the Distributing Group an amount equal to the product of the amount of the related  deduction and the Distributing  Group’s effective Tax rate for the relevant Taxable period, as determined by Distributing in consultation with Controlled.
		

		
			(iii)         Except as Distributing may at any time determine in its sole discretion, Distributing shall be responsible for (A) all income, payroll, or other tax reporting related to income to any current or former employees of the Controlled Group arising from the exercise of any option or from any payment described in Section 7(f)(i); and (B) remitting applicable tax withholdings for such income to each applicable taxing authority.  Distributing and Controlled acknowledge and agree that the parties shall cooperate with each other and with third-party providers to effectuate withholding and remittance of taxes, as well as required tax reporting, in a timely, efficient, and appropriate manner.
		

		
			SECTION 8.      Other Taxes.  All federal, state, local, foreign and other Taxes that are (i) not otherwise expressly dealt with herein or (ii) determined on a single-entity basis (including any federal excise Taxes and any franchise Taxes), and the filing of any Returns with respect to such Taxes, shall be the responsibility of the Person who is liable for such Taxes or is responsible for filing such Returns under applicable law. 
		

		 

		

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			SECTION 9.     Certain Representations and Covenants.  
		

		
			(a)      Controlled Representations. Controlled and each member of the Controlled Group represents that as of the date hereof, and covenants that on the Distribution Date, there is no plan or intention:
		

		
			(i)      to liquidate Controlled or to merge or consolidate Controlled, or any member of the Controlled Group, with any other Person subsequent to the Distribution,
		

		
			(ii)    to sell or otherwise dispose of any material asset of Controlled or any member of the Controlled Group (other than pursuant to an Ethanol Facility Disposition)  subsequent to the Distribution, except in the ordinary course of business,
		

		
			(iii)  to take any action inconsistent with the written information and representations furnished to the IRS in connection with the Ruling Request, or to counsel in connection with any opinion being delivered by counsel with respect to the Distribution, regardless of whether such information and representations were included in the ruling issued by the IRS or in the opinion of counsel,
		

		
			(iv)    to repurchase stock of Controlled other than in a manner that satisfies the requirements of IRS Revenue Procedure 96-30, as modified by IRS Revenue Procedure 2003-48, and any representations made in the Ruling Request,
		

		
			(v)      to take any action, other than pursuant to an Ethanol Facility Disposition, that management of Controlled knows, or should have known, is reasonably likely to contravene any agreement with a Taxing Authority entered into prior to the Distribution Date to which any member of the Controlled Group or the Distributing Group is a party, or
		

		
			(vi)    to enter into any negotiations, agreements, or arrangements with respect to transactions or events (including stock issuances, pursuant to the exercise of options or otherwise, option grants, the adoption of, or authorization of shares under, a stock option plan, capital contributions, or acquisitions, but not including the Distribution) that could reasonably be expected to cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly Controlled stock representing a “50-percent or greater interest” within the meaning of Section 355(d)(4) of the Code.
		

		
			(b)        Controlled Covenants.   Controlled covenants to Distributing that, without the prior written consent of Distributing, 
		

		
			(i)      during the two-year period following the Distribution Date, other than pursuant to an Ethanol Facility Disposition, (A) neither Controlled, nor any member of the Controlled Group conducting an Active Business, will, or will agree to, discontinue such business or dissolve, liquidate or engage in any transaction involving a merger, consolidation or other reorganization, and (B) none of Controlled or any other member of the Controlled Group will,  or will agree to, sell, exchange, distribute or otherwise dispose 
		

		 

		

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		of any asset of any member of the Controlled Group, except in the ordinary course of business or as set forth on Schedule 9(b)(i),
		

		
			            (ii)            Controlled will not, nor will it permit any member of the Controlled Group to, take any action inconsistent with the information and representations furnished to the IRS in connection with the Ruling Request, or to counsel in connection with any opinion being delivered by counsel with respect to the Distribution, regardless of whether such information and representations were included in the ruling issued by the IRS or in the opinion of counsel,
		

		
			            (iii)             Controlled will not, nor will it permit any member of the Controlled Group to, take any action, other than pursuant to an Ethanol Facility Disposition, that management of Controlled knows, or should have known, is reasonably likely to contravene any agreement with a Taxing Authority entered into prior to the Distribution Date to which any member of the Controlled Group or the Distributing Group is a party,
		

		
			            (iv)             during the two-year period following the Distribution Date, Controlled will not repurchase stock of Controlled in a manner contrary to the requirements of IRS Revenue Procedure 96-30, as modified by IRS Revenue Procedure 2003-48, or in a manner contrary to the representations made in the Ruling Request,
		

		
			            (v)            on or after the Distribution Date, Controlled will not, nor will it permit any member of the Controlled Group to, make or change any accounting method, amend any Return or take any Tax position on any Return, take any other action or enter into any transaction that results in any increased Tax liability or reduction of any Tax asset of the Distributing Group or any member thereof in respect of any Pre-Deconsolidation Period,  
		

		
			            (vi)            during the two-year period following the Distribution Date, none of Controlled or any other member of the Controlled Group will, or will agree to, sell or otherwise issue to any Person, or redeem or otherwise acquire from any Person, any Equity Securities of Controlled or any other member of the Controlled Group;  provided, however, that Controlled may repurchase stock of Controlled as permitted by Section 9(b)(iv) hereof and may issue such Equity Securities to the extent such issuances satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d), and
		

		
			            (vii)            during the two-year period following the Distribution Date, none of Controlled or any other member of the Controlled Group will (A) solicit any Person to make a tender offer for, or otherwise acquire or sell, the Equity Securities of Controlled,  (B) participate in or support any unsolicited tender offer for, or other acquisition, issuance or disposition of, the Equity Securities of Controlled or (C) approve or otherwise permit any proposed business combination or any transaction which, in the case of clauses (A) or (B), individually or in the aggregate, together with any transaction occurring within the four-year period beginning on the date which is two years before the Distribution Date and any other transaction which is part of a plan or series of related 
		

		 

		

			12

		

		

			 

		

		

			 

		

 

		transactions (within the meaning of Section 355(e) of the Code) that includes the Distribution, could result in one or more Persons acquiring (except for acquisitions that otherwise satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355−7(d)) directly or indirectly stock representing a 40% or greater interest, by vote or value, in Controlled (or any successor thereto).
		

		
			            (c)            Controlled Covenants Exceptions.  Notwithstanding the foregoing, Controlled and the members of Controlled Group may take actions inconsistent with the covenants contained in Section ‎9(b) above, if:
		

		
			            (i)            In the case of any disposition of assets that could otherwise be subject to Section 9(b)(i) or (ii), the aggregate book value of such assets does not exceed 5 percent of total assets; or 
		

		
			            (ii)            In the case of any other action: (A) Controlled notifies Distributing of its proposal to take such action and Controlled and Distributing obtain a ruling from the IRS to the effect that such actions will not result in the Distribution being taxable to Distributing or its shareholders, provided that Controlled agrees in writing to bear any expenses associated with obtaining such a ruling and, provided further, that Controlled shall not be relieved of any liability under Section 10(a) of this Agreement by reason of seeking or having obtained such a ruling; or (B) Controlled notifies Distributing of its proposal to take such action and obtains an opinion of counsel recognized as an expert in federal income tax matters and acceptable to Distributing to the same effect as in Section 9(c)(ii)(A) ,  provided that such opinion is acceptable to Distributing in its sole discretion;  provided further, that Controlled shall not be relieved of any liability under Section 10(a) of this Agreement by reason of having obtained such an opinion.
		

		
			            SECTION 10.      Indemnities.  
		

		
			            (a)             Controlled Indemnity.   Controlled and each member of the Controlled Group will jointly and severally indemnify Distributing and the members of the Distributing Group against, and hold them harmless from:
		

		
			(i)    any Tax liability of the Controlled Group as determined in accordance with this Agreement;
		

		
			(ii)        any liability or damage resulting from a breach by Controlled or any member of the Controlled Group of any representation or covenant made by Controlled herein;
		

		
			(iii) any Tax liability of Distributing that is attributable to any action of Controlled or any member of the Controlled Group, other than any action required by the Distribution  Agreement without regard to whether Distributing has consented to such action; and
		

		 

		

			13

		

		

			 

		

		

			 

		

 

		
			(iv)  all liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees and expenses), losses, damages, assessments, settlements or judgments arising out of or incident to the imposition, assessment or assertion of any Tax liability or damage described in (i), (ii), or (iii), including those incurred in the contest in good faith in appropriate proceedings relating to the imposition, assessment or assertion of any such Tax, liability or damage.
		

		
			             (b)            Distributing Indemnity.   Distributing and each member of the Distributing Group will jointly and severally indemnify Controlled and the members of the Controlled Group against, and hold them harmless from:
		

		
			            (i)            any Tax liability of the Consolidated Group, other than any such liabilities described in Section 10(a);
		

		
			            (ii)            any Taxes imposed on Controlled or any member of the Controlled Group under Treasury Regulation 1.1502-6 (or similar provision of state, local or foreign law) solely as a result of Controlled or any such member being or having been a member of a Consolidated Group; and
		

		
			            (iii)            all liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees and expenses), losses, damages, assessments, settlements or judgments arising out of or incident to the imposition, assessment or assertion of any income Tax liability or damage described in (i) or (ii) including those incurred in the contest in good faith in appropriate proceedings relating to the imposition, assessment or assertion of any such income Tax, liability or damage.
		

		
			            (c)            Discharge of Indemnity.   Controlled, Distributing and the members of the Controlled Group and Distributing Group, respectively, shall discharge their obligations under Sections 10(a) and 10(b) hereof, respectively, by paying the relevant amount within 30 days of demand therefor.  Any such demand shall include a statement showing the amount due under Section 10(a) or 10(b), as the case may be.  Items described in Sections 10(a)(i) and 10(b)(i) shall be calculated as set forth in Sections 3,  4 and 5.   Notwithstanding the foregoing, if either Controlled, Distributing or any member of the Controlled Group or Distributing Group disputes in good faith the fact or the amount of its obligation under Section 10(a) or Section 10(b), then no payment of the amount in dispute shall be required until any such good faith dispute is resolved in accordance with Section 21 hereof; provided, however, that any amount not paid within 30 days of demand therefor shall bear interest as provided in Section 14.
		

		
			            (d)            Tax Benefits.   If an indemnification obligation of any member of the Distributing Group or any member of the Controlled Group, as the case may be, under this Section 10 with respect to a Consolidated Group arises in respect of an adjustment that makes allowable to a member of the Controlled Group or a member of the Distributing Group, respectively, any Tax benefit which would not, but for such adjustment, be allowable, then any payment by any member of the Distributing Group or any member of the Controlled Group, respectively, pursuant to this Section 10 shall be an amount equal to (x) the amount otherwise due but for this subsection (d), minus (y) the present value of the product of the Tax benefit multiplied (i) by the 
		

		 

		

			14

		

		

			 

		

		

			 

		

 

		maximum applicable federal, foreign, state or local, as the case may be, corporate Tax rate in effect at the time such Tax benefit becomes allowable to a member of the Controlled Group or a member of the Distributing Group (as the case may be) or (ii) in the case of a credit, by 100 percent.  The present value of such product shall be determined by discounting such product from the time the Tax benefit becomes allowable at the rate equal to the “prime” rate as published in the Wall Street Journal, Eastern Edition on the date of such determination.
		

		
			SECTION 11.     Guarantees.  Distributing or Controlled, as the case may be, shall guarantee or otherwise perform the obligations of each member of the Distributing Group or the Controlled Group, respectively, under this Agreement
		

		
			SECTION 12.      Communication and Cooperation.  
		

		
			            (a)            Consult and Cooperate.  Controlled and Distributing shall consult and cooperate (and shall cause each member of the Controlled Group or the Distributing Group, respectively, to cooperate) fully at such time and to the extent reasonably requested by the other party in connection with all matters subject to this Agreement.  Such cooperation shall include, without limitation,
		

		
			            (i)            the retention, and provision on reasonable request, of any and all information including all books, records, documentation or other information pertaining to Tax matters relating to the Distributing Group and the Controlled Group, any necessary explanations of information, and access to personnel, until one year after the expiration of the applicable statute of limitation (giving effect to any extension, waiver, or mitigation thereof);
		

		
			            (ii)            the execution of any document that may be necessary (including to give effect to Section 13) or helpful in connection with any required Return or in connection with any audit, proceeding, suit or action; and
		

		
			            (iii)            the use of the parties’ best efforts to obtain any documentation from a governmental authority or a third party that may be necessary or helpful in connection with the foregoing.
		

		
			            (b)            Provide Information.  Distributing and Controlled shall keep each other fully informed with respect to any material development relating to the matters subject to this Agreement.
		

		
			            (c)            Tax Attribute Matters.  Distributing and Controlled shall promptly advise each other with respect to any proposed Tax adjustments relating to a Consolidated Group, which are the subject of an audit or investigation, or are the subject of any proceeding or litigation, and which may affect any Tax liability or any Tax attribute of Distributing, Controlled, the Distributing Group, the Controlled Group or any member of the Controlled Group or the Distributing Group (including, but not limited to, basis in an asset or the amount of earnings and profits).
		

		
			 
		

		 

		

			15

		

		

			 

		

		

			 

		

 

		
			            SECTION 13.    Audits and Contest.  
		

		
			            (a)            Notice.  Distributing or Controlled shall promptly notify the other in writing upon the receipt of any notice of Tax Proceeding from the relevant Taxing Authority; provided, that a party’s right to indemnification under this Agreement shall not be limited in any way by a failure to so notify, except to the extent that the indemnifying party is materially prejudiced by such failure.
		

		
			            (b)            Distributing Control. Notwithstanding anything in this Agreement to the contrary, except to the extent provided in paragraphs (c),  (d) and (e) below, Distributing shall have the right to control all matters relating to any Tax Return or any Tax Proceeding with respect to any Tax matters of a  Consolidated Group or any member of a Consolidated Group. Distributing shall have absolute discretion with respect to any decisions to be made, or the nature of any action to be taken, with respect to any Tax matter described in the preceding sentence; provided, however, that Distributing shall keep Controlled informed of all material developments and events relating to such matters to the extent they affect the Separate Group Tax Liability of the Controlled Group or may give rise to a claim for indemnity by Distributing against Controlled under Section 10(a) of this Agreement; and at its own cost and expense, Controlled shall have the right to participate in (but not to control) the defense of any such tax claim.
		

		
			            (c)            Controlled Assumption of Control; Non-Section 355 Matters. If Distributing determines that the resolution of any matter relating to a Tax Return or Tax Proceeding (other than a Tax Proceeding relating to the qualification of the Distribution under Sections 355 and 368(a)(1)(D) of the Code) is reasonably likely to have an adverse effect on Controlled Group with respect to any Post-Deconsolidation Period, Distributing may permit Controlled to elect to assume control over disposition of such matter at Controlled’s sole cost and expense; provided, however, that if Controlled so elects, it will (i) be responsible for the payment of any liability arising from the disposition of such matter notwithstanding any other provision of this Agreement to the contrary and (ii) indemnify the Distributing Group for any increase in a liability and any reduction of a Tax asset of the Distributing Group arising from such matter.
		

		
			            (d)            Controlled Assumption of Control; Section 355 Matters. In the event of a Tax Proceeding relating to the qualification of the Distribution under Sections 355 and 368(a)(1)(D) of the Code, Distributing shall have the right to control the defense of the matter in all proceedings before the IRS, provided that Distributing shall keep Controlled fully informed of all material developments and shall permit Controlled a reasonable opportunity to participate in the defense of the matter.
		

		
			            (e)            Controlled Control. Controlled shall have full control over all matters relating to any Tax Proceeding with respect to Returns of Controlled Group relating to any Post-Deconsolidation Period.
		

		
			SECTION 14.      Payments.    
		

		
			            (a)            Timing, After-Tax Amounts. All payments to be made hereunder shall be made in immediately available funds.  Except as otherwise provided, all payments required to be made pursuant to this Agreement will be due 30 days after the receipt of notice of such payment or, 
		

		 

		

			16

		

		

			 

		

		

			 

		

 

		where no notice is required, 30 days after the fixing of liability or the resolution of a dispute. Payments shall be deemed made when received.  Any payment that is not made when due shall bear interest at the rate equal to the “prime” rate as published on such date in the Wall Street Journal, Eastern Edition.  If, pursuant to a Final Determination, any amount paid by Distributing or the members of the Distributing Group or Controlled or the members of the Controlled Group, as the case may be, pursuant to this Agreement results in any increased Tax liability or reduction of any Tax asset of Controlled or any member of the Controlled Group or Distributing or any member of the Distributing Group, respectively, then Distributing or Controlled, as appropriate, shall indemnify the other party and hold it harmless from any interest or penalty attributable to such increased Tax liability or the reduction of such Tax asset and shall pay to the other party, in addition to amounts otherwise owed, the After-Tax Amount.  With respect to any payment required to be made or received under this Agreement, Distributing has the right to designate, by written notice to Controlled, which member of the Distributing Group will make or receive such payment.
		

		
			            (b)            Netting of Payments. If, on the day payment is due under this Agreement, each of Distributing and Controlled (each, a “Party”) owes an amount to the other Party pursuant to this Agreement and any other agreement between the Parties, including, without limitation, the Distribution Agreement and any Ancillary Agreement, as defined in the Distribution Agreement, the Parties shall satisfy their respective obligations to each other by netting the aggregate amounts due to one Party against the aggregate amounts due to the other Party, with the Party, if any, owning the greater aggregate amount paying the other Party the difference between the amounts owed. Such net payment shall be made pursuant to the provision of Section 14(a).
		

		
			            SECTION 15.      Notices.  Any notice, demand, claim, or other communication under this Agreement shall be in writing and shall be deemed to have been given upon the delivery or mailing, thereof, as the case may be, if delivered personally or sent by certified mail, return receipt requested, postage prepaid, to the parties at the following addresses (or at such other address as a party may specify by notice to the other):
		

		
			If to Distributing or the Distributing Group, to:
		

		
			Murphy Oil Corporation
		

		
			Attn: Tim Butler
		

		
			200 Peach St., P.O. Box 7000
		

		
			El Dorado, Arkansas 71731
		

		
			 
		

		
			Murphy Oil Corporation
		

		
			Attn: John Eckart
		

		
			200 Peach St., P.O. Box 7000
		

		
			El Dorado, Arkansas 71731
		

		
			 
		

		
			If to Controlled or the Controlled Group, to:
		

		
			Murphy USA Inc.
		

		
			Attn: Dan Farish
		

		

		

		 

		

			17

		

		

			 

		

		

			 

		

 

		200 Peach St., P.O. Box 7300 
		

		
			El Dorado, Arkansas 71730
		

		
			 
		

		
			Murphy USA Inc.
		

		
			Attn: Donald Smith
		

		
			200 Peach St., P.O. Box 7300
		

		
			El Dorado, Arkansas 71730
		

		
			 
		

		
			            SECTION 16.             Costs and Expenses.  
		

		
			 
		

		
			            (a)            Except as expressly set forth in this Agreement, each party shall bear its own costs and expenses incurred pursuant to this Agreement.  For purposes of this Agreement, costs and expenses shall include, but not be limited to, reasonable attorneys’ fees, accountant fees and other related professional fees and disbursements.  Notwithstanding anything to the contrary in this Agreement, each of the Controlled Group and the Distributing Group will be responsible for its allocable portion, as determined by Distributing, of (i) all costs and expenses attributable to filing any Return that reflects the income, assets or operations of the Controlled Group or the Distributing Group, respectively and (ii) all costs and expenses incurred by Distributing or Controlled, respectively, in complying with the provisions of Section 12 of this Agreement.
		

		
			            (b)            With respect to all Tax Proceedings, including any pending litigation with any Taxing Authority, costs shall be allocated in good faith by Distributing.  Each party hereto shall be liable for its allocable portion of such costs as provided in Section 10.
		

		
			            SECTION 17.            Effectiveness; Termination and Survival.  This Agreement shall become effective upon the consummation of the Distribution. All rights and obligations arising hereunder shall survive until they are fully effectuated or performed; provided, further, that notwithstanding anything in this Agreement to the contrary, this Agreement shall remain in effect and its provisions shall survive for one year after the full period of all applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof) and, with respect to any claim hereunder initiated prior to the end of such period, until such claim has been satisfied or otherwise resolved.
		

		
			            SECTION 18.             Section Headings.  The headings contained in this Agreement are inserted for convenience only and shall not constitute a part hereof or in any way affect the meaning or interpretation of this Agreement.
		

		
			            SECTION 19.             Entire Agreement; Amendments and Waivers.  
		

		
			            (a)             Entire Agreement.  This Agreement contains the entire understanding of the parties hereto with respect to the subject matter contained herein. No alteration, amendment, modification, or waiver of any of the terms of this Agreement shall be valid unless made by an instrument signed by an authorized officer of each of Distributing and Controlled, or in the case of a waiver, by the party against whom the waiver is to be effective.
		

		 

		

			18

		

		

			 

		

		

			 

		

 

		
			            (b)            Amendments and Waivers.  No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver hereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege. This Agreement shall not be waived, amended or otherwise modified except in writing, duly executed by all of the parties hereto.
		

		
			SECTION 20.  Governing Law and Interpretation.  This Agreement shall be construed and enforced in accordance with the laws of the State of New York without giving, effect to laws and principles relating to conflicts of law.
		

		
			SECTION 21.  Dispute Resolution.  In the event of any dispute relating to this Agreement, including but not limited to whether a Tax liability is a liability of the Distributing Group or the Controlled Group, the parties shall work together in good faith to resolve such dispute within 30 days. If the parties are unable to resolve such dispute within 30 days, such dispute shall be resolved by an accounting firm whose selection shall be reasonably satisfactory to both parties and whose fees and costs shall be shared equally by Distributing and Controlled.
		

		
			SECTION 22.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
		

		
			SECTION 23.  Assignments; Third Party Beneficiaries.  Except as provided below, this Agreement shall be binding upon and shall inure only to the benefit of the parties hereto and their respective successors and assigns, by merger, acquisition of assets or otherwise (including but not limited to any successor of a party hereto succeeding to the Tax attributes of such party under applicable law).  This Agreement is not intended to benefit any person other than the parties hereto and such successors and assigns, and no such other person shall be a third party beneficiary hereof.
		

		
			SECTION 24.  Authorization, Etc.  Each of the parties hereto hereby represents and warrants that it has the power and authority to execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all necessary corporate action on the part of such party, that this Agreement constitutes a legal, valid and binding obligation of each such party, and that the execution, delivery and performance of this Agreement by such party does not contravene or conflict with any provision or law or of its charter or bylaws or any agreement, instrument or order binding on such party.
		

		

		

		 

		

			19

		

		

			 

		

		

			 

		

 

		IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and year first written above.
		

			
					
						Distributing on its own behalf and on behalf of the members of the Distributing Group.

				
	
					
						By:

					
					
						/s/ Walter K. Compton

				
	
					
						Name:  Walter K. Compton

				
	
					
						Title:            Senior Vice President and General Counsel

				

		
			 
		

		
			 
		

			
					
						Controlled on its own behalf and on behalf of the members of the Controlled Group.

				
	
					
						By:

					
					
						/s/ John A. Moore

				
	
					
						Name:  John A. Moore

				
	
					
						Title:            Senior Vice President, General Counsel and Secretary

					
						 

					
						 

					
						 

				

		
			 
		

		

		

		 

		

			20

		

		

			 

		

		

			 

		

 

		SCHEDULE 9(b)(i)
		

		
			 
		

		
			None
		

		 

		

			21Exhibit 10.2

		

			 

		

		
			Exhibit 10.2
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			TRANSITION SERVICES AGREEMENT
		

		
			by and between
		

		
			MURPHY OIL CORPORATION
		

		
			and
		

		
			MURPHY USA INC.
		

		
			Dated as of August 30, 2013
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			

		

		

			 

		

		

			(NY) 14150/039/8K/EXHIBITS FOR MUSA 8K/Exhibit 10.2 Transition Services Agreement.doc

		

 

		

			 

		

		 TABLE OF CONTENTS
		

			
					
						1

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Page

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 1

					
					
						 

				
	
					
						 

					
					
						DEFINITIONS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 1.01.

					
					
						Definitions

					
					
						1

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 2

					
					
						 

				
	
					
						 

					
					
						PURCHASE AND SALE OF SERVICES

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 2.01.

					
					
						Purchase and Sale of Services

					
					
						5

				
	
					
						Section 2.02.

					
					
						Third Party License and Consents

					
					
						6

				
	
					
						Section 2.03.

					
					
						Third Party Providers

					
					
						6

				
	
					
						Section 2.04.

					
					
						Cooperation

					
					
						7

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 3

					
					
						 

				
	
					
						 

					
					
						SERVICE COSTS; OTHER CHARGES

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 3.01.

					
					
						Service Costs Generally

					
					
						7

				
	
					
						Section 3.02.

					
					
						Taxes

					
					
						7

				
	
					
						Section 3.03.

					
					
						Invoicing and Settlement

					
					
						8

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 4

					
					
						 

				
	
					
						 

					
					
						THE SERVICES

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 4.01.

					
					
						Standards of Service

					
					
						8

				
	
					
						Section 4.02.

					
					
						Changes to Services

					
					
						9

				
	
					
						Section 4.03.

					
					
						Management of Services By Provider

					
					
						9

				
	
					
						Section 4.04.

					
					
						Liaisons

					
					
						9

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 5

					
					
						 

				
	
					
						 

					
					
						DISCLAIMER, LIABILITY AND INDEMNIFICATION

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 5.01.

					
					
						EXCLUSION OF WARRANTIES

					
					
						10

				
	
					
						Section 5.02.

					
					
						Limitation of Liability

					
					
						10

				
	
					
						Section 5.03.

					
					
						Indemnification of Provider by Recipient

					
					
						11

				
	
					
						Section 5.04.

					
					
						Indemnification of Recipient by Provider

					
					
						11

				
	
					
						Section 5.05.

					
					
						Indemnification of Exclusive Remedy

					
					
						11

				
	
					
						Section 5.06.

					
					
						Conduct of Proceedings

					
					
						11

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 6

					
					
						 

				
	
					
						 

					
					
						TERM AND TERMINATION

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 6.01.

					
					
						Term

					
					
						12

				
	
					
						Section 6.02.

					
					
						Termination

					
					
						12

				
	
					
						Section 6.03.

					
					
						Effect of Termination

					
					
						13

				

		
			 
		

		
			 
		

		 

		

			i

		

 

		

			 

		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 7

					
					
						 

				
	
					
						 

					
					
						ADDITIONAL AGREEMENTS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 7.01.

					
					
						Confidential Information

					
					
						13

				
	
					
						Section 7.02.

					
					
						Ownership of Assets

					
					
						15

				
	
					
						Section 7.03.

					
					
						Security

					
					
						15

				
	
					
						Section 7.04.

					
					
						Access to Information and Audit

					
					
						16

				
	
					
						Section 7.05.

					
					
						Compliance with Applicable Law

					
					
						16

				
	
					
						Section 7.06.

					
					
						Labor Matters

					
					
						16

				
	
					
						Section 7.07.

					
					
						Record Retention

					
					
						17

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						ARTICLE 8

					
					
						 

				
	
					
						 

					
					
						MISCELLANEOUS

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 8.01.

					
					
						No Agency; Independent Contractor Status

					
					
						17

				
	
					
						Section 8.02.

					
					
						Subcontractors

					
					
						17

				
	
					
						Section 8.03.

					
					
						Force Majeure

					
					
						17

				
	
					
						Section 8.04.

					
					
						Entire Agreement

					
					
						18

				
	
					
						Section 8.05.

					
					
						Notices

					
					
						18

				
	
					
						Section 8.06

					
					
						Governing Law

					
					
						19

				
	
					
						Section 8.07.

					
					
						Jurisdiction

					
					
						19

				
	
					
						Section 8.08.

					
					
						Specific Performance

					
					
						19

				
	
					
						Section 8.09.

					
					
						WAIVER OF JURY TRIAL

					
					
						19

				
	
					
						Section 8.10.

					
					
						Severability

					
					
						20

				
	
					
						Section 8.11.

					
					
						Amendments and Waivers

					
					
						20

				
	
					
						Section 8.12.

					
					
						Successors and Assigns

					
					
						20

				
	
					
						Section 8.13.

					
					
						Third Party Beneficiaries

					
					
						20

				
	
					
						Section 8.14.

					
					
						Counterparts

					
					
						20

				
	
					
						Section 8.15.

					
					
						Construction and Interpretation

					
					
						20

				
	
					
						Section 8.16.

					
					
						Conflict of Terms

					
					
						21

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Schedule A

					
					
						Services

					
					
						 

				
	
					
						Schedule B

					
					
						Liaisons

					
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			ii

		

 

		

			 

		

		TRANSITION SERVICES AGREEMENT
		

		
			This TRANSITION SERVICES AGREEMENT (this “Agreement”) is entered into as of August 30, 2013 by and between Murphy Oil Corporation, a Delaware corporation (“Murphy Oil”) and Murphy USA Inc., a Delaware corporation (“Murphy USA”).
		

		
			RECITALS
		

		
			WHEREAS, Murphy Oil and Murphy USA have entered enter into a Separation and Distribution Agreement dated as of August 30, 2013 (as amended from time to time, the “Separation and Distribution Agreement”) providing for the distribution by Murphy Oil to its shareholders of all of the common stock of Murphy USA; and 
		

		
			WHEREAS, the Separation and Distribution contemplates that the parties hereto will enter into this Agreement, pursuant to which Murphy Oil will provide, or cause to be provided, certain services to Murphy USA (and if requested, one or more of its Subsidiaries) and Murphy USA will provide, or cause to be provided, certain services to Murphy Oil (and if requested, one or more of its Subsidiaries),  on the terms and conditions set forth herein.
		

		
			NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves, their successors and permitted assigns, hereby agree as follows:
		

		
			ARTICLE 1
Definitions
		

		
			Section 1.01.  Definitions.  (a)    Any capitalized term that is used herein but not defined herein shall have the meaning assigned to such term in the Separation and Distribution Agreement.
		

		
			(a)        As used in this Agreement, the following terms shall have the following meanings, applicable both to the singular and the plural forms of the terms described:
		

		
			“Affiliate”  means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such other Person.  For the purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.  Notwithstanding any provision of this 
		

		 

		

			 

		

		

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		Agreement to the contrary (except where the relevant provision states explicitly to the contrary),  no member of the Murphy Oil Group, on the one hand, and no member of the Murphy USA Group, on the other hand, shall be deemed to be an Affiliate of the other.
		

		
			“Applicable Law”  means, with respect to any Person, any federal, state, local or foreign law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling, directive, guidance, instruction, direction, permission, waiver, notice, condition, limitation, restriction or prohibition or other similar requirement enacted, adopted, promulgated, imposed, issued or applied by a Governmental Authority that is binding upon or applicable to such Person, its properties or assets or its business or operations, as amended unless expressly specified otherwise.
		

		
			“Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.
		

		
			“Change of Control”  means, with respect to Murphy Oil or Murphy USA, the occurrence of any of the following: (i) a “Person” (as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) becomes a beneficial owner, directly or indirectly, of equity representing fifty percent (50%) or more of the total voting power of Murphy Oil’s or Murphy USA’s, as applicable, then outstanding equity capital; (ii) such entity merges into, is consolidated with or effects an amalgamation with another Person, or merges another Person into such entity, on a basis whereby less than fifty percent (50%) of the total voting power of the surviving Person immediately after such merger, consolidation or amalgamation is represented by equity held directly or indirectly by former equityholders of (and in respect of their former equity holdings in) such entity immediately prior to such merger, consolidation or amalgamation; and (iii) such entity directly or indirectly sells, transfers or exchanges all, or substantially all, of its assets to another Person unless at least fifty percent (50%) of the total voting power of the transferee is directly or indirectly owned by the equityholders of Murphy Oil or Murphy USA, as applicable, in respect of their former equity holdings in Murphy Oil or Murphy USA immediately prior to transfer;  provided that in no event shall the consummation, execution or closing of the Spin-Off constitute a Change of Control with respect to Murphy Oil or Murphy USA.
		

		
			“Distribution” has the meaning set forth in the Separation and Distribution Agreement.  
		

		
			“Distribution Time” has the meaning set forth in the Separation and Distribution Agreement.  
		

		

		

		 

		

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		“Employee Costs” means with respect to the provision of the applicable Service by any employee, the product of (i) the hours attributable to the Service, (ii) such employee’s Hourly Rate and (iii) the Intercompany Charge-Out Rate applicable to such employee.
		

		
			“Governmental Authority” means any multinational, foreign, federal, state, local or other governmental, statutory or administrative authority, regulatory body or commission or any court, tribunal or judicial or arbitral authority which has any jurisdiction or control over either party (or any of their Affiliates).
		

		
			“Group” means, as the context requires, the Murphy USA Group or the Murphy Oil Group.
		

		
			“Hourly Rate” means, (i) with respect to any salaried employee, (A) such employee’s annual salary as of the Distribution Date (or if such employee was not employed by the Provider or an Affiliate as of the Distribution Date, as of such employee’s initial hiring by the Provider or an Affiliate) divided by (B) 1800 and (ii) with respect to any hourly employee, such employee’s hourly (non-overtime) wage  rate (regardless of whether any applicable hours providing Services are worked on an overtime basis)  as of the Distribution Date (or if such employee was not employed by the Provider or an Affiliate as of the Distribution Date, as of such employee’s initial hiring by the Provider or an Affiliate).    
		

		
			“Insolvency Event” means with respect to either party, as applicable, (i) the making by such party of any assignment for the benefit of creditors of all or substantially all of its assets or the admission by such party in writing of its inability to pay all or substantially all of its debts as they become due; (ii) the adjudication of such party as bankrupt or insolvent or the filing by such party of a petition or application to any tribunal for the appointment of a trustee or receiver for such party or any substantial part of the assets of such party; or (iii) the commencement of any voluntary or involuntary bankruptcy proceedings (and, with respect to involuntary bankruptcy proceedings, the failure of such proceedings to be discharged within 60 days), reorganization proceedings or similar proceeding with respect to such party or the entry of an order appointing a trustee or receiver or approving a petition in any such proceeding.
		

		
			“Intercompany Charge-Out Rate” means with respect to any employee, Provider’s departmental charge rate applicable to such employee as of the Distribution Date (or, if such employee was not employed by the Provider or an Affiliate as of the Distribution Date, the charge rate that would have been applicable to such employee on the Distribution Date if he or she had been an employee on such date).
		

		
			“Murphy Oil Entity” means any member of the Murphy Oil Group.  
		

		

		

		 

		

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		“Murphy Oil Group”  means Murphy Oil and its Subsidiaries (other than any member of the Murphy USA Group), including all predecessors to such Persons.
		

		
			“Murphy Oil Systems” means any computer hardware or software program or routine or part thereof owned, licensed or provided by any Murphy Oil Entity or any of their suppliers on any Murphy Oil Entity’s behalf, each as modified, maintained or enhanced from time to time by any Murphy Oil Entity, any Murphy USA Entity or any third party. 
		

		
			“Murphy USA Entity” means any member of the Murphy USA Group.  
		

		
			“Murphy USA Group”  means Murphy USA and its Subsidiaries as of (and, except where the context clearly indicates otherwise, after) the Distribution Time and after giving effect to the Restructuring, including all predecessors to such Persons.
		

		
			“Murphy USA Systems” means any computer hardware or software program or routine or part thereof owned, licensed or provided by any Murphy USA Entity or any of their suppliers on any Murphy USA Entity’s behalf, each as modified, maintained or enhanced from time to time by any Murphy USA Entity, any Murphy Oil Entity or any third party.
		

		
			“Person”  means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a Governmental Authority.
		

		
			“Provider Group” means, as the context requires, the Murphy Oil Group, in the case of Services to be provided by Murphy Oil, or the Murphy USA Group, in the case of Services to be provided by Murphy USA.  
		

		
			“Recipient Entity” means any member of the Recipient Group. 
		

		
			“Recipient Group” means, as the context requires, the Murphy Oil Group, in the case of Services to be received by the Murphy Oil Group, or the Murphy USA Group, in the case of Services to be received by the Murphy USA Group.  
		

		
			“Schedule” means a Schedule attached hereto forming part of this Agreement.
		

		
			“Service Costs” means the sum of the Provider Group’s (i) reasonable actual out-of-pocket costs attributable to the provision of the applicable Service and (ii) Provider’s Employee Costs.  For purposes of clause (i), and without limitation, the parties agree that such costs with respect to any given good or service will be considered reasonable if the relevant out-of-pocket cost for such 
		

		 

		

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		good or service either (x) do not exceed the comparable cost being paid by Provider or an Affiliate for such good or service prior to the Distribution Time or (y) do not exceed the cost being paid by Provider or an Affiliate for such good or service being rendered to Provider or its Affiliates not in connection with the provision of the Services.
		

		
			“Subsidiary” means, with respect to any Person, any other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person.  
		

		
			“Systems” means the Murphy Oil Systems or the Murphy USA Systems, individually, or the Murphy Oil Systems and the Murphy USA Systems, collectively, as the context may indicate or require.
		

		
			(b)        Each of the following terms is defined in the Section set forth opposite such term:
		

			
					
						 

					
					
						 

				
	
					
						Term

					
					
						Section

				
	
					
						Actions

					
					
						5.03

				
	
					
						Agreement

					
					
						Preamble

				
	
					
						Baseline Period

					
					
						4.01(a)

				
	
					
						Confidential Information

					
					
						7.01

				
	
					
						force majeure

					
					
						8.03

				
	
					
						Invoice Date

					
					
						3.03(a)

				
	
					
						Liaison

					
					
						4.04(a)

				
	
					
						Murphy Oil 

					
					
						Preamble

				
	
					
						Murphy USA

					
					
						Preamble

				
	
					
						Payment Date

					
					
						3.03(b)

				
	
					
						Provider

					
					
						2.01(a)

				
	
					
						Provider Indemnified Person

					
					
						5.02

				
	
					
						Recipient

					
					
						2.01(a)

				
	
					
						Recipient Indemnified Person

					
					
						5.04

				
	
					
						Separation and Distribution Agreement

					
					
						Recitals

				
	
					
						Services

					
					
						2.01(a)

				

		
			 
		

		
			ARTICLE 2
Purchase And Sale Of Services
		

		
			Section 2.01.  Purchase and Sale of Services.  (a) On the terms and subject to the conditions of this Agreement and in consideration of the payment of the Service Costs in accordance with Section 3.01,  after the Distribution Time each of 
		

		 

		

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		Murphy Oil and Murphy USA (each in its capacity as a provider of Services, “Provider”) agrees to provide to the other party (in its capacity as a recipient of Services, “Recipient”), or procure the provision to Recipient of, and Recipient agrees to purchase from Provider, the transition services set forth on Schedule  A as Services to be provided by the relevant Provider (the “Services”).
		

		
			(a)        It is understood that (i) the Services to be provided to Recipient under this Agreement shall, at Recipient’s request, be provided to any Person that is a Subsidiary of Recipient (and to the extent Services are so provided, references to “Recipient” (and related references) shall be construed accordingly as the context requires)  and (ii) Provider may satisfy its obligation to provide or procure Services hereunder by causing one or more of its Affiliates to provide or procure such Services (and, to the extent Services are so provided, references to “Provider” (and related references) shall be construed accordingly as the context requires), which Affiliates it may change at its discretion from time to time; provided that Provider shall remain responsible for the performance of such Affiliates.   With respect to Services provided to, or procured on behalf of, any Subsidiary of Recipient, Recipient agrees to pay on behalf of such Subsidiary, or cause such Subsidiary to pay, all amounts payable by or in respect of such Services pursuant to this Agreement.  
		

		
			(b)        Except for the Services expressly contemplated to be provided in accordance with this Section 2.01, Provider shall have no obligation under this Agreement to provide any services to the Recipient Group.    Provider agrees to consider in good faith any requests by Recipient for the provision of any additional services.  Any such additional services that Provider agrees to provide will be on such terms and conditions (including pricing) as the parties shall mutually and reasonably agree.
		

		
			Section 2.02.  Third Party Licenses and Consents.    Provider and Recipient shall use commercially reasonable efforts to obtain, and to keep and maintain in effect, all governmental or third party licenses and consents required for the provision of any Service by Provider in accordance with the terms of this Agreement;  provided that if Provider is unable to obtain any such license or consent, Provider shall promptly notify Recipient in writing and shall, and shall cause its Affiliates to, use commercially reasonable efforts to implement an appropriate alternative arrangement.    The costs relating to obtaining any such licenses or consents shall be borne by Recipient; provided that Provider shall not incur any such costs without the prior written consent of Recipient.  If any such license, consent or alternative arrangement is not available despite the commercially reasonable efforts of Provider and its Affiliates or as a result of Recipient failing to consent to the incurrence of costs relating to obtaining any such license or consent, Provider shall not be required to provide the affected Services.    
		

		

		

		 

		

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		Section 2.03.  Third Party Providers.  If Provider receives written notice from any third party service provider that such Person intends to terminate a service pursuant to which Provider provides a Service to Recipient, then Provider shall provide a copy of such written notice to Recipient and  shall use commercially reasonable efforts to secure the continued provision of that service from such third party or an alternative service provider.  If Provider is unable to secure the continued provision of that service from such third party or an alternative service provider, Provider shall not be required to provide the affected Service.
		

		
			Section 2.04.  Cooperation.  Provider and Recipient agree to cooperate in providing for an orderly transition of Services, including Services terminated pursuant to Section 6.02, to Recipient or a successor service provider designated by Recipient.  Such cooperation shall be subject to the provisions hereof relating to the provision of Services including that Recipient shall pay to Provider the Service Costs related thereto.
		

		
			ARTICLE 3
Service Costs; Other Charges
		

		
			Section 3.01.  Service Costs Generally.  Unless the applicable Schedule hereto expressly provides otherwise (in which event the parties agree to the costs set forth therein) or the parties agree in writing to a different arrangement, for each period in which Recipient receives a Service hereunder,  Recipient shall pay Provider the Service Costs for the applicable Service. In the case of a termination of any or all Services prior to the End Date (other than (x) a  termination under Section 6.02(c) or (y) a termination under Section 6.02(f) arising from Provider suffering an Insolvency Event), (i) Recipient shall continue to be responsible for the reasonable out-of-pocket costs associated with such Services until the End Date, (ii) Provider shall use reasonable efforts to eliminate such costs referenced in clause (i) as soon as possible and (iii) until such costs referenced in clause (i) are eliminated they will be treated as Service Costs relating to Services provided prior to termination and may be invoiced as incurred.    Provider may not rely on the prior sentence with respect to the costs for a given contract if the contract was entered into in connection with providing the Services and the term of the contract was more than three months unless Recipient approved Provider entering into such contract.
		

		
			Section 3.02.  Taxes.  (a)    Recipient shall pay all applicable sales or use taxes incurred with respect to provision of the Services.  Such taxes shall be incremental to other payments or charges identified in this Agreement.    
		

		
			(b)        All sums payable under this Agreement shall be paid free and clear of all deductions or withholdings unless the deduction or withholding is required by Applicable Law, in which event the amount of the payment due from the party 
		

		 

		

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		required to make such payment (other than amounts of interest) shall be increased to an amount which after any withholding or deduction leaves an amount equal to the payment which would have been due if no such deduction or withholding had been required.
		

		
			Section 3.03.  Invoicing and Settlement.  (a)Unless any Schedule hereto indicates otherwise or the parties agree in writing to a different arrangement, Provider shall invoice or notify in writing the Recipient on a monthly basis (not later than 30 days after the end of each month) for the charges for Services hereunder for the prior month (the date of delivery of such invoice, the “Invoice Date”).  
		

		
			(b)         Recipient agrees to pay on or before the date (each, a “Payment Date”) that is 30 days after the Invoice Date by wire transfer of immediately available funds payable to the order of Provider to such account(s) designated by Provider all amounts invoiced by Provider pursuant to Section 3.03(a),  except for any portion of those amounts reasonably disputed in good faith.  Payment for amounts reasonably disputed in good faith for any Services may be withheld beyond their due date by Recipient until such dispute is resolved pursuant to Section 4.04, in which event the relevant payment shall include interest at the Interest Rate from the date that is 15 days after the original relevant Payment Date to the actual payment date.    In the event of any overpayments by Recipient,  Provider agrees to promptly refund any such overpaid amount to Recipient no later than 15 days from the date it is determined that there has been an overpayment.
		

		
			ARTICLE 4
The Services
		

		
			Section 4.01.  Standards of Service.  (a) The level or volume of any specific Service required to be provided to Recipient hereunder shall be at a level or volume consistent in all material respects with the level or volume, as the case may be, of such specific Service as utilized by the Recipient Group during the twelve month period prior to the Distribution Time (the “Baseline Period”).  Provider agrees to consider in good faith any requests by Recipient to modify the level or volume of any specific Service.  Any modification to which Provider agrees will be on such terms and conditions (including pricing) as the parties shall mutually and reasonably agree.
		

		
			(b)        The manner, nature, quality and standard of care applicable to the delivery by Provider of the Services hereunder shall be substantially the same as that of similar services which Provider provided to the Recipient Group during the Baseline Period.
		

		 

		

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			(c)        Provider shall have no obligation to provide any Services hereunder in respect of any business, assets or properties not forming part of the Recipient Group’s business as of the Distribution Time.  Provider agrees to consider in good faith any requests by Recipient for the provision of any additional services that Recipient considers are reasonably necessary to accommodate normal growth in Recipient’s business.  Any such additional services to which Provider agrees will be on such terms and conditions (including pricing) as the parties shall mutually and reasonably agree.
		

		
			Section 4.02.  Changes to Services.    It is understood and agreed that Provider may from time to time modify or change the manner, nature, quality and/or standard of care of any Service provided to Recipient to the extent Provider is making a similar change in the performance of such services for the Provider and its Affiliates and provided that any such modification, change or enhancement will not reasonably be expected to materially affect such Service.  Provider shall furnish to Recipient substantially the same notice (in content and timing), if any, as Provider furnishes to its own organization with respect to such modifications or changes.  
		

		
			Section 4.03.  Management of Services By Provider.  Except as may otherwise be expressly provided in this Agreement, the management of and control over the provision of the Services by Provider shall reside solely with Provider and notwithstanding anything to the contrary Provider shall be permitted to choose the personnel, methodology, systems, applications and third party providers it utilizes in the provision of such Services; provided that Provider shall remain responsible for the performance of the Services in accordance with this Agreement.  The provision, use of and access to the Services shall be subject to (i) Provider’s business, operational and technical environment, standards, policies and procedures as in effect from time to time, (ii) Applicable Law and (iii) the terms of this Agreement.
		

		
			Section 4.04.  Liaisons.  (a)  Each party shall designate one representative to act as such party’s primary contact person in connection with the Services (each, a “Liaison”) and each party may also designate a separate liaison for each Service provided hereunder (who shall act as such party’s primary contact person in connection with the applicable Service).   The Liaisons will oversee the implementation and ongoing operation of this Agreement and shall attempt in good faith to resolve disputes between the parties.  The parties have designated their respective initial Liaisons and provided contact information therefor on Schedule B.  The parties shall ensure that their respective Liaisons shall meet in person or telephonically at such times as are reasonably requested by Provider or Recipient to review and discuss the status of, and any issues arising in connection with, the Services or this Agreement.  Each party may re-designate its Liaison from time to 
		

		 

		

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		time; provided that it shall notify the other party in writing of the name and contact information for the newly designated Liaison in accordance with Section 8.05. 
		

		
			(b)        If the Liaisons are unable to make a decision, resolve a dispute or agree upon any necessary action, the unresolved matter shall be referred to the senior legal officer of each of Murphy Oil and Murphy USA notified to the other party for such purpose from time to time,  who shall attempt in good faith within a period of 14 days to conclusively resolve any such matter.    If such senior legal officers of the parties are unable to resolve the dispute within 30 days from the date such dispute was submitted for consideration or such longer period as the parties may agree, either party may pursue its remedies under Section 8.07.    
		

		
			ARTICLE 5
Disclaimer, Liability And Indemnification
		

		
			Section 5.01.  EXCLUSION OF WARRANTIES.    EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES ARE PROVIDED “AS-IS” WITH NO WARRANTIES, AND PROVIDER EXPRESSLY EXCLUDES AND DISCLAIMS ANY WARRANTIES UNDER OR ARISING AS A RESULT OF THIS AGREEMENT, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT OR ANY OTHER WARRANTY WHATSOEVER.
		

		
			Section 5.02.    Limitation of Liability.  (a) Recipient agrees that, except for the indemnity obligation set forth in Section 5.04,  none of the Provider or its Affiliates or any of its or their respective directors, officers, agents, consultants, representatives and/or employees (each, a “Provider Indemnified Person”) shall have any liability, whether direct or indirect, in contract or tort or otherwise, to any Recipient Entity or any other Person for or in connection with the Services rendered or to be rendered by or on behalf of any Provider Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any actions or inactions by or on behalf of a  Provider Indemnified Person in connection with any such Services or the transactions contemplated hereby, except to the extent any damages have resulted from such Provider Indemnified Person’s gross negligence or willful misconduct in connection with any such Services, actions or inactions.
		

		
			(b)         Notwithstanding the provisions of Section 5.02(a), no Provider Indemnified Person or Recipient Indemnified Person shall be liable for any special, indirect, incidental, consequential or punitive damages of any kind whatsoever in any way due to, resulting from or arising in connection with any of the Services or the performance of or failure to perform Provider’s or Recipient’s obligations under this Agreement, as applicable,  except to the extent the same are payable by a 
		

		 

		

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		party or its Affiliates to an unaffiliated third party in respect of a claim by such third party and are covered by the other party’s indemnification obligations hereunder. This disclaimer applies without limitation (i) to claims arising from the provision of the Services or any failure or delay in connection therewith, (ii) to claims for lost profits or opportunities, (iii) regardless of the form of action, whether in contract, tort (including negligence), strict liability, or otherwise, and (iv) regardless of whether such damages are foreseeable or whether Provider or Recipient, as applicable, or any of its Affiliates has been advised of the possibility of such damages.
		

		
			(c)        In addition to the foregoing, each party hereto agrees that it shall, in all circumstances, use commercially reasonable efforts to mitigate and otherwise minimize its damages and those of its Affiliates, whether direct or indirect, due to, resulting from or arising in connection with any failure by the other party to comply fully with its obligations under this Agreement.
		

		
			Section 5.03.    Indemnification of Provider by Recipient.  Recipient agrees to indemnify and hold harmless each Provider Indemnified Person from and against any damages, and to reimburse each Provider Indemnified Person for all costs, damages, liabilities and fees and expenses (including reasonable attorneys’ fees and expenses and any other expenses reasonably incurred in connection with investigating, prosecuting or defending any Action) (collectively, “Losses”) incurred in investigating, preparing, pursuing, or defending any claim, action, proceeding, or investigation, whether or not in connection with pending or threatened litigation and whether or not any Provider Indemnified Person is a party (collectively, “Actions”), arising out of or in connection with Services rendered or to be rendered by or on behalf of any Provider Indemnified Person pursuant to this Agreement, the transactions contemplated hereby or any actions or inactions by or on behalf of any Provider Indemnified Person in connection with any such Services or transactions; provided that Recipient shall not be responsible for any Losses of any Provider Indemnified Person to the extent such Losses have resulted from such Provider Indemnified Person’s gross negligence or willful misconduct in connection with any of such Services, actions or inactions.
		

		
			Section 5.04.    Indemnification of Recipient by Provider.  Provider agrees to indemnify and hold harmless the Recipient, each of its Affiliates and its and their respective directors, officers, agents, consultants, representatives and/or employees (each, a “Recipient Indemnified Person”) from and against any Losses incurred (including in investigating, preparing, or defending any Action) to the extent such Losses have arisen out of the gross negligence or willful misconduct of any Provider Indemnified Person in connection with the Services rendered or to be rendered pursuant to this Agreement.
		

		

		

		 

		

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		Section 5.05.  Indemnification as Exclusive Remedy.   Without limitation to the termination rights provided under Sections 6.02(b) and 6.02(c) or to the rights under Section 8.08, the indemnification provisions of this Article 5 shall be the exclusive remedy for money damages for breach of this Agreement and any matters relating to this Agreement.
		

		
			Section 5.06.  Conduct of Proceedings.  Any proceedings relating to indemnification under Section 5.03 or 5.04 shall be conducted in accordance with the procedures set forth in Section 6.04 of the Separation and Distribution Agreement.
		

		
			ARTICLE 6
Term and Termination
		

		
			Section 6.01.    Term.  Except as otherwise provided in this Article 6 or Section 8.03, the term of this Agreement with respect to each Service shall commence as of the Distribution Time, and shall cease on the earlier of (i) the date set forth in respect of such Service on the applicable Schedule hereto, (ii) the date that is 18 months after the Distribution Time (the “End Date,” unless extended pursuant to the proviso below) or (iii) such earlier date as determined in accordance with Section 6.02;  provided that upon giving prior written notice to Provider at least 30 days prior to the then-applicable End Date, Recipient may extend the End Date until a date that is no more than 24 months after the Distribution Time.  This Agreement shall terminate in its entirety upon the expiration of the terms (as determined pursuant to the preceding sentence) of all Services;  provided that the provisions of Articles 3, 5,  6 and 8 and Sections 7.01 and 7.02 shall survive any such termination indefinitely.
		

		
			Section 6.02.    Termination.  (a) Recipient may from time to time terminate this Agreement with respect to one or more of the Services it receives, in whole or in part, upon giving at least 30 days’ prior notice to Provider.
		

		
			(b)        Provider may terminate any Service or any part thereof it provides at any time if Recipient shall have failed to perform any of its material obligations under this Agreement relating to any such Service, Provider has notified Recipient in writing of such failure and such failure (i) shall have continued uncured for a period of 30  days after receipt by Recipient of written notice of such failure or (ii) is incapable of remedy.  For the avoidance of doubt, the failure by Recipient to pay the full amount of any invoiced amount when due shall be considered a breach of Recipient’s material obligations under this Agreement, unless such failure to pay results from a good faith dispute in accordance with and subject to Section 3.03(b).
		

		
			(c)        Recipient may terminate any Service it receives as provided in the applicable Schedule or at any time if Provider shall have failed to perform any of 
		

		 

		

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		its material obligations under this Agreement relating to any such Service, Recipient has notified Provider in writing of such failure, and such failure (i) shall have continued for a period of 30 days after receipt by Provider of written notice of such failure or (ii) is incapable of remedy.
		

		
			(d)        At any time following announcement of a transaction involving a Change of Control of Recipient, Provider may elect, by delivery of notice in writing to Recipient, to terminate any or all Services hereunder, such termination to take effect on the date or dates specified by Provider in such notice; provided that without the written consent of Recipient, no such termination of Service shall occur prior to the closing of such Change of Control transaction.
		

		
			(e)        Upon completion of the sale or other disposition of any portion of the Recipient Group’s business, assets or properties, Provider’s obligation to provide any Service in respect of the business, assets or properties so disposed shall terminate automatically and without any notice or other action by Provider, and the aggregate level or volume of such Service required to be provided to the Recipient (and, in the case of a Service, if any, for which the cost is not the Service Cost, the service costs payable by Recipient) in respect thereof shall be reduced appropriately;  provided that Provider’s obligation hereunder (if any) to provide Services relating to reporting obligations in respect of such disposed business, assets or properties shall, to the extent related to the period prior to such disposition, not so terminate but, except as the parties may otherwise agree, shall continue until the time they would have terminated absent this Section 6.02(e).
		

		
			(f)        Either party may terminate this Agreement at any time with immediate effect upon serving written notice upon the other party if the other party suffers an Insolvency Event.
		

		
			(g)        For the avoidance of doubt, any notice of termination under this Section 6.02 shall be delivered in accordance with Section 8.05.  
		

		
			Section 6.03.    Effect of Termination.  (a) Other than as required by Applicable Law, upon termination of any Service pursuant to Section 6.02,  Provider shall have no further obligation to provide the terminated Service and Recipient shall have no obligation to pay any fees relating to such Services; provided that, notwithstanding such termination, (i) Recipient shall remain liable to Provider for Service Costs and other fees owed and payable in respect of Services provided prior to the effective date of the termination and (ii) Recipient shall be responsible for the costs referred to in the second sentence to Section 3.01 to the extent set forth therein.
		

		
			(b)        Termination of this Agreement as provided for herein shall not prejudice or affect any rights or remedies which shall have accrued to either party, 
		

		 

		

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		a Recipient Indemnified Person or a Provider Indemnified Person in respect of Services provided or to have been provided prior to termination.
		

		
			ARTICLE 7
Additional Agreements
		

		
			Section 7.01.  Confidential Information.    (a) The parties hereby covenant and agree to keep, and to cause its Affiliates to keep, confidential all Confidential Information relating to the other party or any of such other party’s Affiliates.  Without limiting the generality of the foregoing, each party shall, and shall cause its Affiliates and its and their employees and agents to, exercise the same level of care with respect to Confidential Information relating to the other party or any of its Affiliates as it would with respect to proprietary information, materials and processes relating to itself or any of its Affiliates.  “Confidential Information” shall mean all confidential and proprietary information, materials and processes relating to a party or any Affiliate of such party obtained by the other party or any Affiliate of such other party at any time (whether prior to or after the date hereof) in any format whatsoever (whether orally, visually, in writing, electronically or in any other form) to the extent arising out of the rendering or receipt of Services hereunder (or preparations for the same or for the termination thereof) and shall include, but not be limited to, economic and business information or data, business plans, computer software and information relating to employees, vendors, customers, products, financial performance and projections, processes, strategies and systems but shall not include (i) information of the other party or its Affiliates which is or becomes generally available to the public other than by release in violation of the provisions of this Section 7.01(a), (ii) information of the other party or its Affiliates which is or becomes available on a non-confidential basis to a party from a source other than the other party or its Affiliates,  provided the party in question reasonably believes that such source is not or was not bound by an obligation to the other party or one of its Affiliates to hold such information confidential and (iii) information developed independently by a party or its Affiliates without use or reference to otherwise Confidential Information of the other party or its Affiliates.   Except with the prior written consent of the other party, each party will, and will cause its Affiliates to, use the other party’s and its Affiliates’ Confidential Information only in connection with the performance of its obligations hereunder and each party shall, and shall cause its Affiliates to, use commercially reasonable efforts to restrict access to the other party’s and its Affiliates’ Confidential Information to those employees of such party and its Affiliates requiring access for the purpose of providing or receiving Services hereunder.  Notwithstanding any provision of this Section 7.01(a) to the contrary, a party may disclose such portion of the Confidential Information relating to the other party or its Affiliates to the extent, but only to the extent, the disclosing party reasonably believes that such disclosure is required under Applicable Law or the 
		

		 

		

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		rules of a Governmental Authority;  provided that if permissible under Applicable Law and practicable, the disclosing party shall first notify the other party hereto of such requirement and allow such party a reasonable opportunity to seek a protective order or other appropriate remedy to prevent such disclosure.  The parties acknowledge that money damages would not be a sufficient remedy for any breach of the provisions of this Section 7.01(a) and that the non-breaching party shall be entitled to equitable relief in a court of law in the event of, or to prevent, a breach of this Section 7.01(a).    In the event that a party learns or has reason to believe that Confidential Information of the other party or its Affiliates has been disclosed or accessed by an unauthorized Person, such party will immediately give notice of such event to its Liaison at the other party.
		

		
			(b)        Upon the termination of this Agreement,  except to the extent otherwise required by Applicable Law and/or its internal policies and procedures, each party shall, at its election, promptly return to the other party or destroy all Confidential Information of the other received under or pursuant to the performance of this Agreement (including, to the extent practicable, all copies (in any and all media) and summaries thereof) that is within the such party’s or its Affiliates’ possession, power, custody or control; provided that any Confidential Information retained by such party or its Affiliates has shall continue to be subject to Section 7.01(a).  Promptly upon the request of a party, the other party shall confirm in writing to such first party that it has complied with this Section 7.01(b).
		

		
			Section 7.02.  Ownership of Assets.  (a) Murphy Oil Systems and any and all enhancements thereof or improvements thereto are and shall remain the sole exclusive property of the Murphy Oil Entities and/or its Affiliates and/or its or their suppliers as applicable.
		

		
			(b)        Murphy USA Systems and any and all enhancements thereof or improvements thereto are and shall remain the sole exclusive property of the Murphy USA Entities and/or its Affiliates and/or its or their suppliers as applicable.
		

		
			(c)        With respect to any Systems that a Murphy Oil Entity, a  Murphy USA Entity, or any of their respective Affiliates, as applicable, is required to maintain or enhance hereunder, as between the Murphy Oil Entities and the Murphy USA Entities,  all right, title and interest in and to such enhancements and any related documentation, whether created by the party that provides the Service or any employee, contractor, Affiliate or supplier on such party’s behalf, shall be owned exclusively by and vested exclusively in the party or its Group member by whom the applicable System is owned, licensed or provided.
		

		
			(d)        As between any Murphy Oil Entity, on the one hand, and any Murphy USA Entity, on the other hand, all right, title and interest in and to all data 
		

		 

		

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		processed hereunder shall be owned exclusively by the Murphy Oil Entity or the Murphy USA Entity that originally supplied it to the other, provided that all data created hereunder in connection with the delivery of any Service to Recipient or otherwise on behalf of Recipient shall be owned exclusively by Recipient.  Each of Murphy Oil and Murphy USA hereby assign to the other, and shall cause any of its respective employees, contractors, Affiliates, suppliers or third parties performing Services on its behalf pursuant to this Agreement to assign to the other, as applicable, all right, title and interest that any Murphy Oil Entity or any Murphy USA Entity, as applicable, may have in the other’s or its Affiliates’ data acquired hereunder.
		

		
			Section 7.03.  Security.  Each party, its Affiliates and their respective employees, authorized agents and subcontractors shall only use or access such other party’s and its Affiliates’ Systems, premises or data to the extent such Person is authorized by the other party or pursuant to the terms hereof.  Each party, its Affiliates and their employees, authorized agents and subcontractors shall comply with the other party’s and its Affiliates’ policies and procedures in relation to the use and access of the other party’s and its Affiliates’ Systems provided that they do not conflict with the terms of this Agreement;  provided that to the extent such policies and procedures of Recipient make the provision of a given Service impracticable, Provider will be relieved of the obligation to provide such Service; provided further that Provider will give reasonable advance notice prior to terminating any Services pursuant to the preceding proviso.
		

		
			Section 7.04.  Access to Information and Audit.   Subject to Applicable Law, Recipient shall, and shall cause its Affiliates to, with respect to any Service during the term of such Service, upon reasonable advance notice, afford Provider and its representatives reasonable access, during normal business hours, to the employees, properties, books and records and other documents that are reasonably requested in connection with the provision and receipt of such Service hereunder.    Recipient or its representatives shall have reasonable access, after requesting such access in writing in advance, during normal business hours to such records for the purpose of auditing and verifying the accuracy of the invoices submitted regarding such amounts due.  Any such audits performed by or on behalf of Recipient shall be at Recipient’s sole cost and expense.  Recipient shall have the right to audit Provider’s books for a period of one (1) year after the month in which the Services were rendered, except in those circumstances where contracts by Provider or any of its Affiliates with third parties limit the audit period to less than one year.
		

		
			Section 7.05.    Compliance with Applicable Law.  Each party shall (and shall cause its Affiliates to) at all times fully comply with all Applicable Law to which such party and its Affiliates (to the extent such Affiliates are engaged in the receipt or provision of Services) is subject in connection with the receipt or provision of Services hereunder, as applicable.
		

		

		

		 

		

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		Section 7.06.  Labor Matters.  All labor matters relating to employees of Provider and its Affiliates (including, without limitation, employees involved in the provision of Services to Recipient or any of its Affiliates) shall be within the exclusive control of Provider, and Recipient shall not take any action affecting such matters.  Nothing in this Agreement is intended to transfer the employment of employees engaged in the provision of any Service from one party or its Affiliates to the other or its Affiliates.  All employees and representatives of a party and any of its Affiliates will be deemed for all compensation, employee benefits, tax and social security contribution purposes to be employees or representatives of such party or its Affiliates (or their subcontractors) and not employees or representatives of the other party or any of its Affiliates (or their subcontractors).  In providing the Services, such employees and representatives of Provider and its Affiliates (or their subcontractors) will be under the direction, control and supervision of Provider or its Affiliates (or their subcontractors) and not of Recipient or its Affiliates.
		

		
			Section 7.07.  Record Retention.  Each party shall take reasonable steps to preserve and maintain complete and accurate accounts, books, and records of and supporting documentation relating to the Services provided hereunder, which records shall be retained by such party and/or its Affiliates for the period of time specified in such party’s record retention policies and procedures (which shall comply with Applicable Law).
		

		
			ARTICLE 8
Miscellaneous
		

		
			Section 8.01.    No Agency; Independent Contractor Status.  Nothing in this Agreement shall constitute or be deemed to constitute a partnership or joint venture between the parties hereto or constitute or be deemed to constitute any party the agent or employee of the other party for any purpose whatsoever and neither party shall have authority or power to bind the other or to contract in the name of, or create a liability against, the other in any way or for any purpose.  The parties hereto acknowledge and agree that Provider is an independent contractor in the performance of each and every part of this Agreement and nothing herein shall be construed to be inconsistent with this status.  Subject to the terms and conditions of this Agreement, Provider shall have the authority to select the means, methods and manner by which any Service is performed.
		

		
			Section 8.02.    Subcontractors.  Provider may hire or engage one or more subcontractors to perform all or any of its obligations under this Agreement;  provided that, (i) Provider shall use the same degree of care in selecting any subcontractors as it would if such subcontractor was being retained to provide similar services to Provider and (ii)  Provider shall in all cases remain responsible 
		

		 

		

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		for ensuring that obligations with respect to the standards of services set forth in this Agreement are satisfied with respect to any Service provided by a subcontractor hired or engaged by Provider.
		

		
			Section 8.03.    Force Majeure.  (a) For purposes of this Section 8.03, “force majeure” means an event beyond the reasonable control of either party, which by its nature was not foreseen by such party, or, if it was foreseen, was not reasonably avoidable, and includes without limitation, acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military authorities, threat, declaration, continuation, escalation or acts of war (declared or undeclared) or acts of terrorism, failure or shortage of energy sources, raw materials or components, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers or carriers, and acts, omissions or delays in acting by any Governmental Authority or the other party.
		

		
			(b)         Without limiting the generality of Section 5.02, neither party shall be under any liability for failure to fulfill any obligation to provide Services under this Agreement, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of force majeure; provided that (i) such party shall have used commercially reasonable efforts to minimize to the extent practicable the effect of force majeure on its obligations hereunder and (ii) nothing in this Section 8.03 shall be construed to require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected party, are contrary to its interests.  It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected party.    The party affected by the force majeure event shall notify the other party of that fact as soon as practicable.
		

		
			Section 8.04.    Entire Agreement.    This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter hereof.  
		

		
			Section 8.05.    Notices.  Any notice, instruction, direction or demand under the terms of this Agreement required to be in writing shall be duly given upon delivery, if delivered by hand, facsimile transmission, or mail, to the following addresses:
		

		
			If to Murphy Oil to: 
		

		
			Murphy Oil Corporation
		

		
			200 Peach Street
		

		
			P.O. Box 7000
		

		

		

		 

		

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		El Dorado, Arkansas 71731
		

		
			Attn: General Counsel
		

		
			Facsimile: 870-864-6489
		

		
			 
		

		
			If to Murphy USA to:
		

		
			Murphy USA Inc.
		

		
			200 Peach Street
		

		
			P.O. Box 7300
		

		
			El Dorado, Arkansas 71731
		

		
			Attn: General Counsel
		

		
			Facsimile: 870-881-6893
		

		
			 
		

		
			or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other party hereto;  provided that any notice of termination under Section 6.02 must be signed by the applicable department head of the terminating party, or in the case of termination of more than one Service, the applicable department heads of the terminating party, for the relevant Service(s).  All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.
		

		
			Section 8.06.  Governing Law.  This Agreement shall be governed by and construed in accordance with the law of the State of Arkansas, without regard to the conflicts of law rules of such state.
		

		
			Section 8.07.  Jurisdiction.  The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Western District of Arkansas, El Dorado Division or any Arkansas State court sitting in El Dorado, Arkansas, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from the transaction of business in the State of Arkansas, and each of the parties hereby irrevocably consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought 
		

		 

		

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		in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party at such party’s corporate headquarters.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 8.05 shall be deemed effective service of process on such party.
		

		
			Section 8.08.  Specific Performance.    The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in any court set forth in Section 8.07, in addition to any other remedy to which they are entitled at law or in equity.
		

		
			Section 8.09.    WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
		

		
			Section 8.10.    Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.
		

		
			Section 8.11.    Amendments and Waivers.  (a)    Any provision of this Agreement (including the Schedules hereto) may be amended or waived if, and only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by Murphy Oil and Murphy USA, or in the case of a waiver, by the party against whom the waiver is to be effective.
		

		
			(b)        No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.   The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Applicable Law.
		

		

		

		 

		

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		Section 8.12.    Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the other party hereto.
		

		
			Section 8.13.  Third Party Beneficiaries.  Except as set forth in Sections 5.02, 5.03 and 5.04, no provision of this Agreement is intended to, or shall, confer any third party beneficiary or other rights or remedies upon any Person other than the parties hereto.
		

		
			Section 8.14.  Counterparts.  This Agreement may be executed in any  number of counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one agreement.
		

		
			Section 8.15.  Construction and Interpretation.  The parties hereto agree that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in the construction or interpretation of this Agreement.  Each party shall cause to be performed all actions, agreements and obligations set forth herein to be performed by any member of such party’s Group.
		

		
			Section 8.16.  Conflict of Terms.  If the terms of this Agreement conflict with terms of the Separation and Distribution Agreement with respect to any matter, then the terms of this Agreement will control.
		

		
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		IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the date first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						MURPHY OIL CORPORATION

				
	
					
						 

					
						By:

					
					
						/s/ Walter K. Compton

				
	
					
						 

					
					
						Name:

					
					
						Walter K. Compton

				
	
					
						 

					
					
						Title:

					
					
						Senior Vice President and General Counsel

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						MURPHY USA INC.

				
	
					
						 

					
						By:

					
					
						/s/ John A. Moore

				
	
					
						 

					
					
						Name:

					
					
						John A. Moore

				
	
					
						 

					
					
						Title:

					
					
						Senior Vice President, General Counsel and Secretary

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			(Signature Page to Transition Services Agreement)
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

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		Schedule A
		

		
			Services
		

		
			 
		

			
					
						TRANSITION SERVICES AGREEMENT – MASTER SCHEDULE OF SERVICES

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						UNIT

					
					
						AREA/CC NAME

					
					
						SERVICES PROVIDED

					
					
						TERMS

				
	
					
						 

					
						TAX

					
					
						 

					
						Tax compliance, audit & provisioning

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)  Federal and state income tax planning and research support

					
						A2)  Income tax provisioning support (monthly and/or quarterly)

					
						A3)  Post-filing income tax return reconciliations to accrual support ("true-ups")

					
						A4)  Assistance with income tax estimated payments and tax compliance support for federal income and state income and franchise tax return filings (tax elections, tax return reviews, CorpTax software application usage, and tax depreciation knowledge transfer)

					
						A5)  Any other incidental income tax support services currently conducted for MUSA and its subsidiaries by the MUR income tax personnel

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1)  Periodic assistance in knowledge transfer and support related to Sales/Use and Ad Valorem tax matters involving MUR or upstream assets, processes and records

					
						B2)  MUSA income tax personnel will provide interim tax compliance support on any pre-spin 2013 (as well as any post-spin 2013) federal consolidated or state income tax filings (where they have past experience or unique individual knowledge) necessary for the remaining MUR income tax group to be tax compliant

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific financial close or tax due date compliance deadlines

					
						 

					
						2)  MUR support to MUSA will be overseen by these key division personnel:

					
						 

					
						•  Income Tax Compliance (Mgr. Tax Compliance)

					
						•  Income Tax Audits (Asst. Mgr. Audit and International Tax)

					
						•  Income Tax Provisioning (Asst. Mgr. Financial Tax)

					
						•  Excise/Sales/Ad Valorem Tax (Asst. Mgr. Excise and sales Tax)

					
						•  Tax Research (Mgr. Research and Foreign Tax)

					
						 

					
						3)  MUSA support to MUR will be overseen by the department head or employee designated most knowledgeable or most experienced regarding the subject:

					
						 

					
						•  Excise/Sales Tax Support 

					
						•  Ad Valorem Tax 

					
						•  Income Tax Compliance 

					
						 

				
	
					
						 

					
						AUDIT

					
					
						 

					
						Internal audit

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)   Consulting on historical audit activity as required

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1) Periodic assistance in knowledge transfer and support related to operated JV audit coordination activities

					
						B2) Periodic assistance in knowledge transfer and support related to non-operated JV audit activities including consulting on historical audit activity

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific due date deadlines

					
						 

					
						2)  MUR support to MUSA will be overseen by these key division personnel:

					
						•  Chief Audit Executive responsibilities to include Audit Committee communications, risk assessment and strategic direction (Director – Internal Audit)

					
						•  Quality Assurance and TeamMate Administration (Designee of the Director of Internal Audit)

					
						 

					
						3)  MUSA support to MUR will be overseen by the department head or employee designated most knowledgeable or most experienced regarding the subject :

					
						•  Non-operated JV audits 

					
						•  Operated JV audits 

				
	
					
						 

					
						ERM

					
					
						 

					
						Enterprise Risk Management

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)   Operation of Middle Office for Corn Hedging Program

					
						A2) Completion and delivery of Annual Enterprise Risk Assessment

					
						A3)   Risk Analysis services as requested by MUSA 

					
						  A4)  Facilitation of Business Continuity Planning with head of MUSA program

					
						 

					
					
						 

					
						1)  Services provided by MUR to MUSA will be itemized in a written statement of work to be performed

					
						 

					
						2)  MUR support to MUSA will be overseen by the Director of Enterprise Risk Management

					
						 

					
						3)  Improvements will be offered to MUSA; however, MUSA remains responsible for implementation of suggested improvements

					
						 

					
						 

				
	
					
						 

					
						EHS

					
					
						 

					
						Enterprise Health and Safety

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)  General EHS consulting as requested

					
						A2) EHS data support and analysis for any transactions involving former MUR/MUSA Sites

					
						A3)  Regulatory support as requested

					
						A4) Any other incidental EHS support services currently provided for MUSA by MUR EHS 

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1) Periodic assistance in knowledge transfer and support related to EHS matters involving corporate or downstream assets, processes and records

					
						B2) Any EHS  filings (where MUSA EHS staff have past experience or unique individual knowledge) necessary for MUR legacy issues, as appropriate

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA

					
						 

					
						2)  MUR support to MUSA will be overseen by the Director of Corporate EHS

					
						 

					
						3)  MUSA support to MUR will be overseen by these key division personnel: (a)EHS Manager with responsibility for any specific issue in question, including retail remediation and retail safety, and (b) Sr. Director, Midstream EHS 

					
						 

					
						 

				
	
					
						 

					
						TREASURY

					
					
						 

					
						Treasury

					
					
						 

					
						MUR will provide to MUSA periodic assistance in knowledge transfer and support related to the following processes:

					
						 

					
						A1)   Cash disbursements

					
						A2)   Cash receipts

					
						A3)   Cash management

					
						A4)   Bank account maintenance

					
						A5)   Working capital management

					
						A6)   Reporting

					
						 

					
						MUSA will provide to MUR periodic assistance in knowledge transfer and support related to the following processes:

					
						 

					
						B1)   Cash disbursements

					
						B2)   Cash receipts

					
						B3)   Cash management

					
						B4)   Bank account maintenance

					
						B5)   Working capital management

					
						B6)   Reporting

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific due date deadlines

					
						 

					
						 

				
	
					
						 

					
						LAW

					
					
						 

					
						Legal

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)  Securities law consultation and assistance

					
						A2)  Labor law/EEOC consultation and assistance

					
						A3)  Clerical assistance 

					
						A4)  Any other incidental legal support services currently conducted for MUSA by MUR legal personnel

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1)  Assistance with disposition of UK downstream assets (Murphy Petroleum)

					
						B2)  Assistance with Lobbying Reporting/Corporate PAC/Governmental Affairs issues

					
						B3)   Garnishment/Child Support

					
						B4)   Clerical assistance

					
						B5)  Any other incidental legal support services currently conducted for MUR by MUSA legal personnel

					
						 

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific due date compliance deadlines

					
						 

					
						2)  MUR support to MUSA will be overseen by these key division personnel:

					
						•  Securities law (Sr. Attorney with knowledge)

					
						•  Labor/EEOC (Mgr. Law and Sr. Attorney with knowledge)

					
						•  Clerical assistance (staff)

					
						 

					
						3)  MUSA support to MUR will be overseen by these key division personnel:

					
						•  UK Downstream  (Associate General Counsel)

					
						•  Lobbying/PAC/Governmental Affairs (Associate General Counsel)

					
						•  Garnishment/Child Support (staff)

					
						•  Clerical assistance (staff)

					
						 

				
	
					
						 

					
						FINANCE

					
					
						 

					
						Controller / Finance

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1) Knowledge sharing for Hyperion, JDE, and APX systems and subsystems as requested

					
						A2) Knowledge sharing for SEC reporting, 10-Q and 10-K prep, XBRL services, printing and administration of SEC reporting and all related ancillary services such as annual report printing

					
						A3) Assistance with reconciliation of information between accounting systems to ensure that both Company's systems are working properly from a financial reporting perspective

					
						A4) Assistance in developing unclaimed property reporting for MUSA

					
						A5) Assistance with Sarbanes Oxley testing and results as requested for pre transaction periods as well as allowing access to records for MUSA SOX testing post transaction as requested 

					
						A6) Provide employee time regarding Ethanol plant activities for transition of responsibilities.

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1) Knowledge sharing for Hyperion, JDE, and APX systems and related subsystems as requested

					
						B2) Audit support and access to historical data for any systems controlled by MUSA post transaction (i.e., Solarc, PDI, Reconnet, etc.)

					
						B3) Assistance with reconciliation of information between accounting systems to ensure that both Company's systems are working properly from a financial reporting perspective

					
						B4) Assistance with Sarbanes Oxley testing and results as requested for pre transaction periods as well as allowing access to records for Murphy SOX testing post transaction as requested

					
						B5) MUSA station banking group to assist with establishing a new bank account reconciliation function within Murphy Controller's department post spin   

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific financial close or tax due date compliance deadlines

					
						 

					
						2)  MUR support to MUSA will be overseen by key division personnel designated most knowledgeable or experienced regarding the following subjects:

					
						•  Hyperion support and guidance 

					
						•  JDE support and guidance 

					
						•  APX system support and guidance 

					
						•  SEC reporting, 10-Q and 10-K prep, printing and admin of SEC reporting and other services 

					
						•  Reconciliation services between MUR and MUSA

					
						•  XBRL services 

					
						•  Unclaimed Property 

					
						•  Sarbanes Oxley testing and results / TSA related testing between companies   

					
						 

					
						3)  MUSA support to MUR will be overseen by the department head or employee designated most knowledgeable or experienced regarding the subject:

					
						•  Hyperion support and guidance 

					
						•  JDE support and guidance 

					
						•  APX system support and guidance 

					
						•  Solarc, PDI, Great Plains and Reconnet along with any other downstream accounting systems   

					
						•  Reconciliation services between MUSA and MUR 

					
						•  Sarbanes Oxley testing and results 

					
						•  Station banking to assist with setup of reconciliation process for bank accounts 

					
						 

					
						 

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Backup and Regulatory Audit Requests

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						Restoration of files from backup tapes held by MUR. The availability of the requested files will be subject to MUR's normal tape retention policy

					
						 

					
						Both MUR and MUSA will provide, when requested, data, reports or information related to any IT regulatory compliance audits

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency. A Declared Emergency is defined as an event mutually identified by the designated MUR and MUSA management in which critical business systems are inoperative, impaired or otherwise unavailable for immediately essential business activity

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency, as defined above, within two hours of the request.  Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director Global IT Operations

					
						 

					
						4)  Services regarding regulatory compliance audit requests will be managed by each company’s respective head of IT

					
						 

					
						5)  Both parties will use diligent good faith efforts to respond to any regulatory compliance audit requests within five (5) business days, but there is no further SLA provided or required

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Oracle Hyperion

					
					
						 

					
						MUR and MUSA will provide services to each other requiring expert knowledge of the Oracle Hyperion system provided and to the extent that such knowledge exists within the requested IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director System Support and MUSA Manager

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Network

					
					
						 

					
						MUR will provide to MUSA services requiring expert knowledge of routers, switches and other network devices and systems provided and to the extent that such knowledge exists within the MUR IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director Global IT Operations

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						COBOL

					
					
						 

					
						MUSA will provide to MUR support services requiring expert knowledge of the in-house developed HR/payroll related systems provided and to the extent that such knowledge exists within the MUSA IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above 

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by a MUSA IT Manager

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						JD Edwards

					
					
						 

					
						MUR will provide to MUSA services requiring expert knowledge of the Oracle JD Edwards system provided and to the extent that such knowledge exists within the MUR IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director Systems Support

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Vault

					
					
						 

					
						MUR will provide MUSA services requiring expert knowledge of the EMC Vault system provided and to the extent that such knowledge exists within the MUR IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above 

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director Global IT Operations

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Documentum

					
					
						 

					
						MUSA will provide to MUR support services requiring expert knowledge of the EMC Documentum/APX system provided and to the extent that the knowledge exists within the MUSA IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above 

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by a MUSA IT manager

				
	
					
						 

					
						CORPORATE IT

					
					
						 

					
						Lotus Notes

					
					
						 

					
						MUR will provide to MUSA services requiring expert knowledge of the IBM Lotus Notes system provided and to the extent that Such knowledge exists within the MUR IT organization at the time of the requested service. Services will include, but not be limited to, consultation, problem resolution and knowledge transfer. Services will not include ongoing routine system administration, maintenance, support, or development

					
					
						 

					
						1)  Services will be provided during MUR's normal business hours except in the event of a Declared Emergency, as defined above 

					
						 

					
						2)  Best efforts will be made to respond to a  Declared Emergency, within two hours of the request. Best efforts will be made to respond to all other requests for services within one business day of the request. No other SLA will be required or provided

					
						 

					
						3)  Support services will be overseen by the MUR Director Global IT Operations

				
	
					
						 

					
						ADMIN & FACILITIES

					
					
						 

					
						Administrative Services

					
					
						 

					
						The MUR Administrative Services group will function as it does prior to the  transaction, Details regarding Administrative Services are further set forth in the Lease Agreement regarding the building located at 200 Peach Street, El Dorado, AR 

					
						 

					
					
						 

					
						These services will be coordinated by MUR’s Director of Administrative Services and MUSA’s General Counsel 

				
	
					
						 

					
						CREDIT

					
					
						 

					
						Credit

					
					
						 

					
						MUR and MUSA will each provide the other with the following services:

					
						 

					
						A1)  Financial analysis of current and new customers

					
						A2)  Manage and handle negotiations of guarantees

					
						A3) Miscellaneous functions related to evaluating credit, risk mitigation, and   exposures for the other entity.

					
						   

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary

					
						 

					
						2)  Financial analysis and risk mitigation support will be managed by each company’s Manager and Supervisor of Credit

					
						 

					
						3)  Guarantee execution and negotiation support will be managed by each company’s Sr. Credit Assistant

					
						 

					
						4)  Administrative and collections support will be managed by each company’s Credit Analysts and Credit Assistants.

				
	
					
						 

					
						PAYROLL

					
					
						 

					
						Payroll Administration

					
					
						 

					
						MUR will administer payroll for MUSA in the same manner as immediately prior to the transaction.  These services include, but are not limited to:

					
						 

					
						A1)    Banking Authorization

					
						A2)    Deductions Tracking and Reporting

					
						A3)    Deductions Not Taken Calculations and Tracking

					
						A4)    Earnings Tracking and Management

					
						A5)    Processing Imputed Income for Payroll

					
						A6)    Disability Income Processing

					
						A7)    Retro Pay Processing

					
						A8)    Payroll Processing

					
						A9)    Management of (Money Network) Pay Cards

					
						A10)  Checks and Advices Creating and Mailing

					
						A11)  Interim Check Processing

					
						A12) Accounting (e.g., Vacation Liability Calculation, General Ledger Interface Reconciliation)

					
						A13)  Tax Filing

					
						A14)  Year End Processing

					
						A15)  Employee Support

					
						A16)  Reporting

					
						A17)  Garnishments Processing

					
						A18) Support outsourcing of the current MUSA payroll administration function in a consulting role by sharing knowledge on the current state scope, processes, and technology

					
					
						 

					
						1)  Services will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific due date deadlines

					
						 

					
						 

					
						NOTE:  Printers will be ordered by MUR for the service recipient, which cannot be returned. These charges may be invoiced if service is terminated early.

					
						 

				
	
					
						 

					
						HUMAN RESOURCES

					
					
						 

					
						Benefits Administration

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)  Assistance with benefits administration for all Employee Benefit programs that are currently offered to retail employees prior to the transaction date.  Includes all duplicated or newly created programs established as of the effective date of the transaction

					
						A2) Assistance with processing of benefit enrollments, changes, etc.

					
						A3)   Assistance with payroll processing as it relates to benefit deductions, etc., including reconciling and processing vendor payments

					
						A4) Assistance with processing employee deductions and vendor premium payments and forwarding to various vendors

					
						A5)  Assistance with FMLA and other sick leave administration

					
						A6)    Assistance with employee questions

					
						A7)  Assistance with annual renewals of employee benefit programs

					
						A8)  Assistance with COBRA administration (initial notices and continuation benefits)

					
						A9)  Assistance with compliance requirements such as 5500    reports, PBGC, ERISA, etc.

					
						A10)  Assistance with annual census data

					
						A11) Assistance with developing and providing employee communications as requested for compliance purposes or as needed to communicate benefit plans

					
						A12)  Assistance with year-end bonus, LTI and STI calculations

					
						A13)  Assistance with 2014 AAP/EEO-1/Vets 100 reports.

					
						A14)  Assistance with training of new benefits staff as needed

					
						A15)  Assistance with Health Care Reform issues

					
						A16)  Advisory services on policies and programs, if required

					
						A17) Support outsourcing of the current MUSA benefit administration function in a consulting role by sharing knowledge on the current state scope, processes, and technology

					
						 

					
						Out of Scope Services MUR will not provide to MUSA:

					
						 

					
						AY)  Assistance with new benefit programs created after the transaction date, except as may be required due to national health care reform

					
						AZ)   Assistance with modifying or changing existing programs after the transaction date, except as may be required due to national health care reform

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1)   Providing access to employee data as needed

					
						B2)  Providing access to Benefits Staff transferred to MUSA to allow for orderly transition on both sides

					
						B3)   Advisory services on policies and programs, if requested

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary  

					
						 

					
						 

				
	
					
						 

					
						INSURANCE

					
					
						 

					
						Corporate Insurance

					
					
						 

					
						Services MUR will provide to MUSA:

					
						 

					
						A1)   Assistance training personnel as requested

					
						A2)   Policy renewal support

					
						A3)   Assistance with contract review as requested

					
						A4)   Assistance with administering claims as requested

					
						 

					
						Services MUSA will provide to MUR:

					
						 

					
						B1) Assistance with training of replacement personnel as     requested

					
						B2)   Policy renewal support

					
						B3)   Assistance with contract review

					
						B4)   Assistance with administering claims as requested

					
						B5)   Administrative support as requested

					
						 

					
					
						 

					
						1)  Services, whether by MUR or MUSA, will be provided during normal business hours of MUR and MUSA and may include overtime hour support, if necessary, to meet specific deadlines    

					
						 

					
						2)  MUR support to MUSA will be overseen by these key personnel:

					
						•  Assistance with training of replacement personnel as requested (Claims Mgr.)

					
						•  Policy renewal support (Director Corporate Insurance)

					
						•  Assistance with contract review (Director Corporate Insurance)

					
						•  Assistance with administering claims as needed (Claims Mgr.)

					
						 

					
						3)  MUSA support to MUR will be overseen by these key personnel:

					
						•  Assistance with training of replacement personnel as needed (Insurance Asst.)

					
						•  Policy renewal support (Mgr. Insurance)

					
						•  Assistance with contract review (Claims Asst.)

					
						•  Assistance with administering claims as needed (Sr. Insurance Analyst)

					
						•  Administrative support as needed (Insurance Asst.)

					
						 

					
						NOTE: Lease of a satellite claims office (SCO) expires December 31, 2013.  The SCO houses both MUR and MUSA employees.  If requested by either MUR OR MUSA, the SCO lease will be extended to December 31, 2014 at a similar rate.  Afterwards, if either MUR or MUSA request, the SCO lease will be extended on a monthly basis.  At the end of the SCO lease, any/all files, furniture, and equipment at that location will be the property of MUSA

					
						 

					
						Lease and office equipment/supplies cost for the SCO will be invoiced monthly and should be settled within 30 days of the invoice date.  There will be one monthly invoice from each company to the other.  Costs for the SCO will be allocated 40% to MUR and 60% to MUSA

					
						 

					
						 

				

		    
                

			 

		        

            

            
                Schedule 
                B
            

            
                Liaisons
            

            
                Murphy Oil: 
                John Eckart
            

            
                Murphy USA:  Donald Smith
            

            
                 
            

            
                 
            

            
                
            

            
                

			 

		        

                
                    (NY) 14150/039/8K/EXHIBITS FOR MUSA 8K/Exhibit 10.2 Transition Services Agreement.doc

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