Document:

EX-10.8

 

Exhibit 10.8

April 27, 2007

SPI Petroleum LLC

Attention: Board of Managers

     Each of the undersigned makes reference to that certain Professional Services Agreement, dated
as of September 18, 2006 (as amended, the “PSA”), by and among SPI Petroleum LLC
(“SPI”), Simons Petroleum, Inc., Maxum Petroleum, Inc. and the Providers. Capitalized
terms used but not defined in this letter shall have the meanings given to them in the PSA.

     Upon consummation of the transactions (the “TPS Transaction”) contemplated by that
certain draft Stock Purchase Agreement (the “TPS Purchase Agreement”), by and among the
Company, Petroleum Products, Inc., Petroleum Transport, Inc. and Patrick C. Graney, III, the
Company shall pay or cause to be paid to the Providers in immediately available funds a transaction
fee in an aggregate amount equal to $1,140,000 (the “TPS Transaction Fee”). The TPS
Transaction Fee shall be shared by the Providers in proportion to the number of Class A Units of
SPI held by the Providers and their affiliates as of immediately after consummation of the TPS
Transaction (it being understood that, for purposes of this allocation and the avoidance of doubt,
(x) Perot Bissell is not an affiliate of Northwest, and (y) SPI U.S. Investor, LLC is an affiliate
of RBC).

     Notwithstanding the foregoing, Waud hereby elects to waive its rights to its portion of the
TPS Transaction Fee (it being understood that (x) no other Provider waives such right, and (y)
Waud’s waived portion of the TPS Transaction Fee and any Subsequent Placement Fees shall be deemed
a Waived Fee Amount for purposes of the PSA and Parent’s Second Amended and Restated Limited
Liability Company Agreement dated as of September 28, 2006).

     This letter shall be governed by, and construed in accordance with, the laws of the State of
Illinois, without giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of Illinois or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Illinois.

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

 

 

     If you agree that this letter reflects our agreement with respect to the foregoing, please
sign this letter below, which will then constitute our agreement with respect thereto.

	 	 	 	 	 
	 	 	Sincerely,
	 
	 	 	 	 
	 	 	NCA MANAGEMENT II, LLC
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Bradford N. Creswell
 

	 
	 	 	 	 
	 

	 	Its:
	 	
 

	 
	 	 	 	 
	 	 	RBCP ENERGY FUND INVESTMENTS, LP
	 
	 	 	 	 
	 

	 	By:
	 	2001 RBCP U.S. GP LIMITED
	 

	 	Its:
	 	General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Alan R. Hibben
 

	 
	 	 	 	 
	 

	 	Its:
	 	
 

	 
	 	 	 	 
	 	 	WAUD CAPITAL PARTNERS, L.L.C.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Reeve B. Waud
 

	 
	 	 	 	 
	 

	 	Its:
	 	
 

Accepted, Acknowledged and Agreed this 27th day of April, 2007

	 	 	 	 	 
	SPI PETROLEUM LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Doug Sterk
 
	 	 
	 
	 	 	 	 
	Its:

	 	Assistant Treasurer and Assistant
Secretary
 
	 	 
	 
	 	 	 	 
	MAXUM PETROLEUM, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Doug Sterk
 
	 	 
	 
	 	 	 	 
	Its:

	 	Assistant Treasurer and Assistant
Secretary
 
	 	 
	 
	 	 	 	 
	SIMONS PETROLEUM, INC.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Doug Sterk
 
	 	 
	 
	 	 	 	 
	Its:

	 	Assistant Treasurer and Assistant
SecretaryEX-10.9

 

Exhibit
10.9

EXECUTIVE AGREEMENT

          THIS EXECUTIVE AGREEMENT (this “Agreement”) is made effective as of April 10, 2006
(the “Effective Date”), by and among SPI Petroleum LLC, a Delaware limited liability
company (the “Company”), and E. Perot Bissell (“Executive”). Certain definitions
are set forth in Section 8 of this Agreement.

          Pursuant to a letter agreement between Executive and the Company as of the Effective Date (the
“Letter Agreement”), the Company issued to Executive, 13,250 of the Company’s Common Units
(the “Common Units”). All Common Units acquired by Executive pursuant to the Letter
Agreement or otherwise thereafter acquired are referred to herein as “Executive
Securities.”

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement hereby agree as follows:

          1. Purchase and Sale of Executive Securities.

          (a) As of the Effective Date, the Company issued to Executive 13,250 Common Units.

          (b) In connection with the issuance of the Executive Securities, Executive represents and
warrants to the Company that:

          (i) The Executive Securities acquired by Executive are being acquired for Executive’s
own account and not with a view to, or intention of, distribution thereof in violation of
the Securities Act, or any applicable state securities laws, and the Executive Securities
will not be disposed of in contravention of the Securities Act or any applicable state
securities laws.

          (ii) Executive is an accredited investor within the meaning of the Securities Act.

          (iii) Executive is an executive officer of the Company, is sophisticated in financial
matters and is able to evaluate the risks and benefits of the investment in the Executive
Securities.

          (iv) Executive is able to bear the economic risk of investment in the Executive
Securities for an indefinite period of time because the Executive Securities have not been
registered under the Securities Act and, therefore, cannot be sold unless subsequently
registered under the Securities Act or an exemption from such registration is available.

          (v) Executive has had an opportunity to ask questions and receive answers concerning
the terms and conditions of the offering of Executive Securities and

 

 

have had full access to such other information concerning the Company as Executive has
requested.

          (vi) This Agreement constitutes the legal, valid and binding obligation of Executive,
enforceable in accordance with its terms, and the execution, delivery and performance of
this Agreement by Executive does not and will not conflict with, violate or cause a breach
of any agreement, contract or instrument to which Executive is a party or any judgment,
order or decree to which Executive is subject.

          (c) As an inducement to the Company to issue the Executive Securities to Executive, and as a
condition thereto, Executive acknowledges and agrees that neither the issuance of the Executive
Securities to Executive, nor any provision contained herein, shall entitle Executive to remain in
the employment of the Company or any of its subsidiaries or affect the right of any of them to
terminate Executive’s employment at any time for any reason.

          2. Vesting of Executive Securities.

          (a) The Executive Securities shall vest in the manner specified in, and otherwise be subject
to the terms of, this Section 2.

          (b) Time-Vesting.

          (i) The Executive Securities will be subject to time vesting and will time vest on a
monthly, straight-line basis over the twenty-four month period beginning effective as of the
Effective Date (i.e., 1/24 of the Executive Securities will vest at the end of each thirty
day period), provided that Executive is, and has been, continuously employed by the Company
or any of its subsidiaries from such date.

          (ii) Notwithstanding the foregoing, immediately prior to the occurrence of a Qualified
Change of Control, all Executive Securities which have not yet become time vested shall
become time vested at the time of such event.

          (c) Forfeiture. Notwithstanding the foregoing, any Executive Securities that vest in
accordance with Section 2(b) above shall nonetheless and automatically be forfeited for no
additional consideration if, upon the occurrence of a Qualified Change of Control, the Inflows
prior to and in connection with such Qualified Change in Control do not equal or exceed the product
of (x) three (3), and (y) the Outflows prior to such Qualified Change in Control.

          (d) Separation. For the avoidance of doubt, no Executive Securities will vest after a
Separation (as defined below).

          3. Restrictions on Transfer of Executive Securities.

          (a) Transfer of Executive Securities. The holders of Executive Securities shall not
Transfer any interest in any Executive Securities, except pursuant to and as permitted by the LLC
Agreement.

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          (b) Legend. The certificates (if any) representing the Executive Securities will bear
a legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED AS OF
                          , 2006, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON
TRANSFER, CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN
EXECUTIVE AGREEMENT BETWEEN THE COMPANY AND AN EXECUTIVE OF THE COMPANY DATED AS OF
                          , 2006 A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF
AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

          (c) Opinion of Counsel. No holder of Executive Securities may Transfer any Executive
Securities (except pursuant to an effective registration statement under the Securities Act)
without first delivering to the Company a written notice describing in reasonable detail the
proposed Transfer, together with an opinion of counsel (reasonably acceptable in form and substance
to the Company) that neither registration nor qualification under the Securities Act and applicable
state securities laws is required in connection with such transfer. In addition, if the holder of
the Executive Securities delivers to the Company an opinion of counsel that no subsequent Transfer
of such Executive Securities shall require registration under the Securities Act or applicable
state securities laws, the Company shall promptly upon such contemplated Transfer deliver new
certificates for such Executive Securities that do not bear the Securities Act portion of the
legend set forth in Section 3(b). If the Company is not required to deliver new
certificates for such Executive Securities not bearing such legend, the holder thereof shall not
Transfer the same until the prospective transferee has confirmed to the Company in writing its
agreement to be bound by the conditions contained in this Section 3.

          4. Employment. The Company agrees to employ Executive, and Executive accepts such
employment, for the period beginning effective as of the Effective Date, and ending upon his
termination of employment for any reason (the “Employment Period”). During the Employment
Period, Executive will earn a base salary of $34,000 per month, which salary shall be payable in
regular installments by a subsidiary of the Company in accordance with its general payroll
practices in effect from time to time. During the Employment Period, Executive shall report to the
Board and shall serve as the chief executive officer of the Company and shall have the normal
duties, responsibilities, functions and authority of such position. While serving in this
capacity, Executive shall manage the day-to-day affairs of the Company, which shall include, but
not be limited to, acquisitions, acquisition integration, strategic direction, succession plans for
the Company’s principal operating divisions, capital structure, supplier and vendor

-3-

 

relationships, capital allocation, capital raising, recruitment and hire of a new chief
executive officer, preparation of the Company for a public offering, restructuring of the Company’s
finance department, risk management strategies, development of reporting metrics, supervision of
senior executive personnel, and other duties as determined from time to time by the Board. The
Board may terminate executive at any time, but if the Board terminates Executive, Executive shall
continue to receive his base salary payments for 90 days after such termination.

          5. Confidential Information. Executive acknowledges that the information,
observations and data obtained by him during the course of his performance under this Agreement
concerning the business and affairs of the Company and its subsidiaries and Affiliates are the
property of the Company or such subsidiaries and Affiliates. Therefore, Executive agrees that he
will not disclose to any unauthorized Person or use for his own account any of such information,
observations or data without the Board’s written consent, unless and to the extent that the
aforementioned matters, (i) become generally known to and available for use by the public other
than as a result of Executive’s acts or omissions to act, (ii) were known to Executive prior to
Executive’s employment with the Company or any of its subsidiaries and Affiliates, or (iii) are
required to be disclosed pursuant to any applicable law or court order. Executive agrees to
deliver to the Company at a Separation, or at any other time the Company may request in writing,
all memoranda, notes, plans, records, reports and other documents (and copies thereof) relating to
the business of the Company and its subsidiaries and Affiliates (including, without limitation, all
acquisition prospects, lists and contact information) which he may then possess or have under his
control.

          6. Definitions.

          “Affiliate” means, with respect to any Person, any Person that controls, is controlled
by or is under common control with such Person or an Affiliate of such Person.

          “Board” means the board of managers of the Company.

          “Executive Securities” will continue to be Executive Securities in the hands of any
holder other than Executive (except for the Company), and except as otherwise provided herein, each
such other holder of Executive Securities will succeed to all rights and obligations attributable
to Executive as a holder of Executive Securities hereunder. Executive Securities will also include
equity of the Company (or a corporate successor to the Company) issued with respect to Executive
Securities (i) by way of a unit split, unit dividend, conversion, or other recapitalization or (ii)
by way of reorganization or recapitalization of the Company in connection with the incorporation of
a corporate successor prior to a Public Offering. Notwithstanding the foregoing, all unvested
Units shall remain unvested Units after any Transfer thereof.

          “Inflows” means, as of any measurement date, the sum of all cash payments received by
the Investors with respect to or in exchange for equity securities of the Company from and
including April 9, 2004, through such measurement date.

          “Investors” has the meaning given to such term in the LLC Agreement.

-4-

 

          “LLC Agreement” means the Limited Liability Company Agreement of the Company, as
amended from time to time pursuant to its terms.

          “Outflows” means, as of any measurement date, all cash payments made by the Investors
(on a cumulative basis) with respect to or in exchange for securities of the Company from,
including and after April 9, 2004.

          “Person” means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization, investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

          “Public Offering” means the sale in an underwritten public offering registered under
the Securities Act of equity securities of the Company or a corporate successor to the Company.

          “Qualified Change of Control” means a transaction (or series of related transactions),
the consummation of which results in the acquisition by an independent third party or independent
third parties of at least 51% of the economic interests represented by the equity owned by the
Investors (calculated immediately prior to the occurrence of such event) (whether through a merger,
consolidation, sale or transfer of the Investors’ interests or sale of assets) and the receipt by
the Investors of cash, cash equivalents or marketable securities; provided that, if at least 80% of
the economic interests represented by the equity owned by the Investors is transferred, regardless
of the consideration received, such event will be deemed to be a Qualified Change of Control.

          “Securities Act” means the Securities Act of 1933, as amended from time to time.

          “Transfer” means to sell, transfer, assign, pledge or otherwise dispose of (whether
with or without consideration and whether voluntarily or involuntarily or by operation of law).

          7. Notices. Any notice provided for in this Agreement must be in writing and must be
either personally delivered, mailed by first class mail (postage prepaid and return receipt
requested) or sent by reputable overnight courier service (charges prepaid) to the recipient at the
address below indicated:

          If to the Company:

SPI Petroleum LLC

1120 N.W. 63rd Street

Suite 300

Oklahoma City, OK 73116-6505

Telephone:      (405) 848-3500

Telecopy:      (405) 848-3508

Attention:      Board of Managers

-5-

 

with copies to:

To each of the Investors at the addresses below.

and

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Telephone:      (312) 861-2000

Telecopy:      (312) 861-2200

Attention:      Richard W. Porter, P.C. and Martin A. DiLoreto, Jr.

          If to Executive:

E. Perot Bissell

201 Broad Street Penthouse

Stamford, CT 06901

Telephone:      (203) 358-4668

Telecopy:      (203) 324-6995

If to the Investors:

NCA Energy, Inc.

600 University Street, Suite 1720

Seattle, WA 98101

Telephone:      (206) 689-5615

Telecopy      (206) 689-5614

Attention:      Bradford N. Creswell

RBCP Energy Fund Investments, LP

c/o Cadent Energy Partners, LLC

287 Bowman Avenue, 4th Floor

Purchase, NY 10577

Telephone:      (914) 253-0404

Telecopy:      (914) 253-0406

Attention:      Bruce Rothstein

Waud Capital Partners, L.P.

560 Oakwood Avenue, Suite 203

Lake Forest, IL 60045

Telephone:      (847) 604-9550

Telecopy:      (847) 604-9554

Attention:      Reeve B. Waud Bill McMaster

-6-

 

with a copy to:

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Telephone:      (312) 861-2000

Telecopy:       (312) 861-2200

Attention:      Richard W. Porter, P.C. and Martin A. DiLoreto, Jr.

or such other address or to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party. Any notice under this Agreement will be
deemed to have been given when so delivered or sent or, if mailed, five days after deposit in the
U.S. mail.

          8. General Provisions.

          (a) Transfers in Violation of Agreement. Any Transfer or attempted Transfer of any
Executive Securities in violation of any provision of this Agreement shall be void, and the Company
shall not record such Transfer on its books or treat any purported transferee of such Executive
Securities as the owner of such equity for any purpose.

          (b) Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

          (c) Complete Agreement. This Agreement, those documents expressly referred to herein
and other documents of even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or representations by or
among the parties, written or oral, which may have related to the subject matter hereof in any way.

          (d) Counterparts. This Agreement may be executed in separate counterparts (including
by means of facsimile), each of which is deemed to be an original and all of which taken together
constitute one and the same agreement.

          (e) Successors and Assigns. Except as otherwise provided herein, this Agreement shall
bind and inure to the benefit of and be enforceable by the parties hereto and their respective
successors and assigns (including subsequent holders of Executive Securities); provided
that the rights and obligations of Executive under this Agreement shall not be assignable except in
connection with a permitted transfer of Executive Securities hereunder.

-7-

 

          (f) Choice of Law. The law of the State of Delaware will govern all questions
concerning the relative rights of the Company, Employer and its securityholders. All other
questions concerning the construction, validity and interpretation of this Agreement and the
exhibits hereto will be governed by and construed in accordance with the internal laws of the State
of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Delaware.

          (g) Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including attorney’s fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction (without posting any bond
or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement.

          (h) Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company and Executive and with the prior approval of the
Majority RBC Holders and the Majority Waud Holders (each as defined in the LLC Agreement).

          (i) Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which the Company’s chief
executive office is located, the time period shall be automatically extended to the business day
immediately following such Saturday, Sunday or holiday.

          (j) Withholding. The Company and its subsidiaries shall be entitled to deduct or
withhold from any amounts owing from the Company or any of its subsidiaries to Executive any
federal, state, local or foreign withholding taxes, excise taxes, or employment taxes imposed with
respect to Executive’s compensation or other payments from the Company or any of its subsidiaries
or Executive’s ownership interest in the Company.

          (k) Termination. This Agreement shall survive a Separation and shall remain in full
force and effect after such Separation.

          (l) Adjustments of Numbers. All numbers set forth herein that refer to unit prices or
amounts will be appropriately adjusted to reflect unit splits, unit dividends, combinations of
units and other recapitalizations affecting the subject class of equity.

*
   *    *    *    *

-8-

 

          IN WITNESS WHEREOF, the parties hereto have executed this Executive Agreement on the date
first written above.

	 	 	 	 	 	 	 
	 	 	SPI PETROLEUM LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ George Fastuca	 	 
	 

	 	Name:
	 	George
Fastuca

	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ E. Perot Bissell	 	 
	 	 	E. PEROT BISSELL

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