Document:

EX-10.4

 Exhibit 10.4 

Execution Copy 

SERVICES AGREEMENT 

THIS IS AN AGREEMENT dated as of October 30, 2013 by and among Sprague Resources GP LLC, a Delaware limited liability company
(“SRGP”), Sprague Resources LP, a Delaware limited partnership (the “Partnership”), Sprague Resources Holdings LLC, a Delaware limited liability company (“Sprague Holdings”), and Sprague Energy
Solutions Inc., a Delaware corporation (“Sprague Solutions”). 
 PRELIMINARY STATEMENT 

WHEREAS, the Partnership and Sprague Solutions desire to obtain from SRGP the services necessary to operate, manage, maintain and
report the operating results of the Partnership and its subsidiaries (including Sprague Solutions), and SRGP is willing to furnish or make such services available to the Partnership and its subsidiaries (including Sprague Solutions). 

WHEREAS, Sprague Holdings desires to obtain from SRGP the services necessary to operate, manage, maintain and report the operating
results of Sprague Holdings, and SRGP is willing to furnish or make such services available to Sprague Holdings. 
 NOW, THEREFORE,
in consideration of the premises and the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

AGREEMENTS 
 IT IS
MUTUALLY agreed by the parties hereto as follows: 
 1. DEFINITIONS. As used in this Agreement, the following capitalized
terms have the meanings set forth below: 
 “Affiliate “ means, with respect to any Person, any other Person that directly
or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. 

“control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Partnership” has the
meaning assigned to such term in the Preamble to this Agreement. 
 “Partnership Agreement” means the First Amended and
Restated Agreement of Limited Partnership of the Partnership dated as of October 30, 2013, as amended, supplemented or restated from time to time. 

“Partnership Entities” means the Partnership and each of its subsidiaries (except Sprague Solutions and its subsidiaries).

 “Person “ means an individual or a corporation, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, government agency or political subdivision thereof or other entity. 
 “Sprague
Holdings” has the meaning assigned to such term in the Preamble to this Agreement. 
 “Sprague Holdings Entities”
means Sprague Holdings and any of its subsidiaries, other than SRGP and the Partnership and its subsidiaries. 
 “Sprague
Solutions” has the meaning assigned to such term in the Preamble to this Agreement. 
 “Sprague Solutions Entities”
means Sprague Solutions and any of its subsidiaries. 
 “SRGP” has the meaning assigned to such term in the Preamble to this
Agreement. 
 2. SERVICES 
 2.1
Beginning on the date of this Agreement, SRGP hereby agrees to provide, or cause to be provided, to the Partnership Entities, the Sprague Solutions Entities and the Sprague Holdings Entities, as applicable, certain general corporate services,
including but not limited to accounting, tax, corporate communications, legal, financial, health, safety and environmental, treasury, human resource, information technology and other administrative staff functions, and arrange for administration of
insurance and employee benefit programs. The services will include, as applicable and without limitation, the following: 
  

 (a) Human Resources. Processing of payroll, maintenance of payroll
records, oversight and execution of employee communications and corporate events, and support for product, worker safety and environmental programs. Administration and oversight of all employee benefits and compensation plans, programs and policies
(whether insured through a third party, self-insured or not insured) and insurance programs, including but not limited to the following, as applicable: 401(k) plan, defined benefit plan, group medical, dental and vision insurance, group life
insurance, short- and long-term disability insurance, cash incentive plans or programs, employee stock purchase plan, the Sprague Resources LP 2013 Long-Term Incentive Plan (and any successor or other compensation plans), and the filing of any
required reports and distribution of any information or documents under the Employee Retirement Income Security Act of 1974, as amended. 

(b) Accounting and Financial Reporting and Compliance Related Services. Preparation of financial statements in
accordance with United States generally accepted accounting principals; preparation of filings with the Securities and Exchange Commission, including, without limitation, any registration statements, Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K, and other reports to unitholders of the Partnership; maintenance of internal audit support services; review of compliance with legal, regulatory, financial and accounting laws, rules and regulations; and
maintenance of internal controls, including support for compliance with standards governing internal control over financial reporting. 

(c) Tax Related Services. Preparation of periodic tax reports, including Federal tax returns and state and local
tax returns (including income tax returns), tax research and planning and assistance on tax audits (Federal, state and local), preparation of Schedule K-1s and Form 1099s and payment of Federal, state and local taxes. 

(d) Insurance Services. Arranging for liability, property, casualty and other normal business insurance coverage.

 (e) Corporate Record Keeping Services. Corporate record keeping, including, without limitation, supervision of
transfer agent and registrar functions, coordination of unit repurchase programs and tracking of unit issuances. 

(f) Information Technology Services. Provision and maintenance of financial, billing, asset management, and other
related operations systems, telecommunications equipment and software, disaster recovery services, periodic backups, website administration, Internet access, network operation and security, technological and systems support for client-based
information technologies, customer support and internal controls systems, including support for compliance with standards governing internal control over financial reporting. 

(g) Health, Safety and Environmental and Regulatory and Permitting Services. Oversight of regulatory compliance,
consultation and compliance audits and provision; oversight of environmental permitting and any other permitting related services; and oversight of health and safety programs and policies. 

(h) Other Services. Other services in addition to those enumerated in Sections 2.1(a) through 2.1(g) above
including, but not limited to, routine legal and other administrative activities, corporate information and treasury and other financial services as may be reasonably requested by the Partnership, Sprague Solutions or Sprague Holdings, as
applicable. 
 2.2 For providing, or causing to be provided, general services of the types described above in Section 2.1 to the
Partnership Entities, SRGP shall be reimbursed by the Partnership for (i) all direct and indirect expenses it incurs or payments it makes on behalf of the Partnership Entities (including salary, bonus, incentive compensation and other amounts
paid to any Person (including Affiliates of SRGP, except Sprague Solutions)) to perform services for the Partnership Entities or for SRGP in the discharge of its duties to the Partnership Entities, and (ii) all other expenses allocable to the
Partnership Entities or otherwise incurred by SRGP in connection with operating the business of the Partnership Entities (including expenses allocated to SRGP by its Affiliates, except Sprague Solutions). 

2.3 For providing, or causing to be provided, general services of the types described above in Section 2.1 to the Sprague Solutions
Entities, SRGP shall be reimbursed by Sprague Solutions for (i) all direct and indirect expenses it incurs or payments it makes on behalf of the Sprague Solutions Entities (including salary, bonus, incentive compensation and other amounts paid
to any Person (including Affiliates of SRGP)) to perform services for the Sprague Solutions Entities or for SRGP in the discharge of its duties to the Sprague Solutions Entities, and (ii) all other expenses allocable to the Sprague Solutions
Entities or otherwise incurred by SRGP in connection with operating the business of the Sprague Solutions Entities (including expenses allocated to SRGP by its Affiliates). 

2.4 For providing or causing to be provided general services of the types described above in Section 2.1 to the Sprague Holdings
Entities, SRGP shall be reimbursed by Sprague Holdings in accordance with Section 4 hereof for (i) all direct and indirect expenses it incurs or payments it makes on behalf of the Sprague Holdings Entities (including any salary, bonus,
incentive compensation and other amounts paid to any Person (including Affiliates of SRGP)) to perform services for Sprague Holdings or for SRGP in the discharge of its duties to Sprague Holdings, and (ii) all other expenses allocable to the
Sprague Holdings Entities or otherwise incurred by SRGP in connection with operating the business of the Sprague Holdings Entities (including expenses allocated to SRGP by its Affiliates). 

  
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 2.5 The amount of any reimbursements pursuant to Sections 2.2, 2.3 and 2.4 shall be
determined by SRGP, in good faith, and shall be in addition to any reimbursement to SRGP as a result of indemnification pursuant to Section 7.7 of the Partnership Agreement. 

3. THIRD-PARTY SERVICES. SRGP and officers and employees of SRGP and of the Partnership’s subsidiaries shall be entitled to
provide services to other companies or entities. Such other companies or entities can either be companies or entities affiliated with Sprague Holdings or third party companies or entities. 

4. INVOICE AND PAYMENT. 

4.1 By 1:00 pm (EST) or each business day (each, a “Reference Day”), SRGP shall provide each of the Partnership, Sprague
Solutions and Sprague Holdings (each a “Service Recipient”) with a good faith estimate (the “Cost Estimate”) of the expenses and payments that it expects to incur in the next business day following the Reference Day (including
when necessary, any weekend or holiday period) under Sections 2.2, 2.3 and 2.4 hereof, respectively. By 6:00 pm (EST) on the date such Cost Estimate is provided, each Service Recipient shall transmit to SRGP in immediately available funds the amount
referenced in the Cost Estimate, subject to adjustment in accordance with Section 4.2. 
 4.2 Within 2 days following the end of
each Reference Day, SRGP will calculate the total expenses incurred and payments made on behalf of each Service Recipient in accordance with Sections 2.2, 2.3 and 2.4 hereof, respectively (“Actual Costs”). If Actual Costs for the Reference
Day exceed the Cost Estimate for the Reference Day, the applicable Service Recipient shall pay the difference to SRGP in connection with the prepayment. If the Cost Estimate for the Reference Day exceeds Actual Costs for the Reference Day, the
applicable Service Recipient shall be allowed to offset such amount against the prepayment amount for the next applicable Prepayment Day (and, to the extent such difference exceeds the prepayment amount for such Prepayment Day, in subsequent
prepayment days). 
 5. DIRECTORS AND OFFICERS. For the avoidance of doubt, the provisions of this Agreement shall not give rise
to any right of recourse against any officer or director of SRGP, Sprague Solutions, Sprague Holdings or any member of the Partnership Entities, the Sprague Holdings Entities or the Sprague Solutions Entities. 

6. TERM. 

6.1 Term. The initial term of this Agreement shall begin on the date of this Agreement and continue for a term of five
(5) years. This Agreement shall automatically renew at the end of the initial term for successive one-year terms until terminated, in whole or in part, in accordance with Section 6.2 below. 

6.2 Termination. 

(i) This Agreement may be terminated by the Partnership or Sprague Solutions at any time upon 180 days prior written
notice to SRGP. 
 (ii) The provisions of this Agreement that are applicable to Sprague Solutions shall automatically
terminate on the date on which Sprague Solutions ceases to be a wholly-owned direct or indirect subsidiary of the Partnership. 

(iii) The provisions of this Agreement that are applicable to Sprague Holdings may be terminated by Sprague Holdings at
any time upon 180 days prior written notice to SRGP, and shall automatically terminate on the date on which Sprague Holdings ceases to be an Affiliate of the Partnership. 

(iv) This Agreement shall automatically terminate on the date on which SRGP ceases to be the general partner of the
Partnership. 
 7. NOTICES. All notices, billings, requests, demands, approvals, consents, and other communications which are
required or may be given under this Agreement shall be in writing and will be deemed to have been duly given if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the parties at their
respective addresses set forth below: 
 If to SRGP: 

2 International Drive 
 Suite 200

 Portsmouth, NH 03801 
 Attn:
General Counsel 
 If to the Partnership: 

2 International Drive 
 Suite 200

  
 3 

 Portsmouth, NH 03801 

Attn: General Counsel 
 If to
Sprague Solutions: 
 2 International Drive 

Suite 200 
 Portsmouth, NH 03801

 Attn: General Counsel 
 If to
Sprague Holdings: 
 Axel Johnson Inc. 

155 Spring Street, 6th Floor 
 New
York, NY 10012 
 Attn: Chief Financial Officer 

With a copy to: 
 2 International
Drive 
 Suite 200 
 Portsmouth,
NH 03801 
 Attn: General Counsel 

8. AMENDMENT OR MODIFICATION. This Agreement may be amended or modified from time to time only by the written agreement of all the
Parties; provided, however, that the Partnership may not, without prior Special Approval (as defined in the Partnership Agreement), agree to any amendment or modification of this Agreement that, in the reasonable discretion of SRGP, will have
an adverse effect on the holders of Common Units (as defined in the Partnership Agreement). Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.

 9. ASSIGNMENT; THIRD-PARTY BENEFICIARIES. No party to this Agreement shall have the right to assign its respective rights or
obligations under this Agreement without the prior written consent of the other parties to this Agreement. It is expressly understood that the provisions of this Agreement do not impart enforceable rights in anyone who is not a party hereto or
successor or permitted assign of a party hereto; provided, however, that each of the parties hereto specifically intends that each entity comprising the Partnership Entities, whether or not a party to this Agreement, shall be entitled to
assert rights and remedies hereunder as third-party beneficiaries hereto with respect to those provisions of this Agreement affording a right, benefit or privilege to any such entity. 

10. APPLICABLE LAW; JURISDICTION. This Agreement shall be governed by and construed under the laws of the State of New Hampshire
applicable to contracts made and to be performed therein. Each Party hereby irrevocably submits to the exclusive jurisdiction of any federal court of competent jurisdiction situated in the United States District Court for the District of New
Hampshire. The parties hereto expressly and irrevocably submit to the jurisdiction of said Courts and irrevocably waive any objection which they may now or hereafter have to the laying of venue of any action, suit or proceeding arising out of or
relating to this Agreement brought in such Courts, irrevocably waive any claim that any such action, suit or proceeding brought in any such Court has been brought in an inconvenient forum and further irrevocably waive the right to object, with
respect to such claim, action, suit or proceeding brought in any such Court, that such Court does not have jurisdiction over such party. The parties hereto hereby irrevocably consent to the service of process by registered mail, postage prepaid, or
by personal service within or without the State of New Hampshire. Nothing contained herein shall affect the right to serve process in any manner permitted by law. 

11. WAIVER OF JURY TRIAL. Each Party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by
jury in respect of any proceedings relating to this agreement or any performance or failure to perform of any obligation hereunder. 

12. HEADINGS. The paragraph headings used in this Agreement are for convenience of reference only and will not be considered in
the interpretation or construction of any of the provisions thereof. 
 13. ENTIRE AGREEMENT. This Agreement constitutes the
entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the parties hereto in connection therewith. 

14. BINDING EFFECT. This Agreement will be binding upon, and will inure to the benefit of, the parties hereto and their respective
successors, permitted assigns and legal representatives. 

  
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 15. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of
which counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement. 

16. SEVERABILITY. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid and
effective under applicable law, but if any provision of this Agreement or the application of any such provision to any person or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision hereof, and the parties hereto will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far
as may be valid and enforceable, the intent and purpose of such invalid, illegal or unenforceable provision. 
 [REST OF PAGE
INTENTIONALLY LEFT BLANK] 

  
 5 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as a sealed instrument
by their duly authorized offices as of the date first above written. 

	
	
	SPRAGUE RESOURCES GP LLC
	
	/s/ Paul A. Scoff
	Paul A. Scoff
	 Vice President, General Counsel, Chief Compliance

Officer and Secretary

	
	SPRAGUE RESOURCES LP
	
	By: Sprague Resources GP LLC, its general partner
	
	 /s/ Paul A. Scoff

	 Paul A. Scoff

	 Vice President, General Counsel, Chief Compliance

Officer and Secretary

	
	SPRAGUE ENERGY SOLUTIONS INC.
	
	/s/ Paul A. Scoff
	 Paul A. Scoff

	 Vice-President, General Counsel and Secretary

	
	SPRAGUE RESOURCES HOLDINGS LLC
	
	/s/ Paul A. Scoff
	 Paul A. Scoff

	 Vice President, General Counsel, Chief Compliance

Officer and Secretary

 [Signature Page to Services Agreement]EX-10.5

 Exhibit 10.5 

Execution Copy 

TERMINAL OPERATING AGREEMENT 

This TERMINAL OPERATING AGREEMENT (“Operating Agreement”), dated as of October 30, 2013, is by and between SPRAGUE
MASSACHUSETTS PROPERTIES LLC (“SPRAGUE MASSACHUSETTS”), a Delaware limited liability company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire 03801, and SPRAGUE OPERATING RESOURCES LLC
(“SPRAGUE OPERATING RESOURCES”), a Delaware limited liability company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire, 03801. SPRAGUE OPERATING RESOURCES and SPRAGUE MASSACHUSETTS are
collectively referred to herein as the “Parties.” 
 WITNESSETH: 

WHEREAS SPRAGUE MASSACHUSETTS owns a certain oil terminal located at Cannon Street in New Bedford, mailing address 30 Pine Street, New
Bedford, Massachusetts, 02740, which is more fully described below (the “Oil Terminal”), and owns that certain real estate on which the Oil Terminal is located; and 

WHEREAS SPRAGUE MASSACHUSETTS desires to enter into this Operating Agreement covering the Oil Terminal with SPRAGUE OPERATING RESOURCES
and SPRAGUE OPERATING RESOURCES desires to operate and maintain said Oil Terminal. 
 NOW, THEREFORE, in consideration of the mutual
promises herein contained, SPRAGUE OPERATING RESOURCES and SPRAGUE MASSACHUSETTS agree as follows: 
 1. DEFINITIONS. 

Each term or expression set forth below in this Section 1 has the meaning stated immediately after it. 

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

Insurance Requirements. All terms of any policy of insurance maintained by SPRAGUE OPERATING RESOURCES and applicable to the Oil Terminal and
any building, structure or improvement thereon and all requirements of the issuer of any such policy and all orders, rules, regulations and other requirements of the National Board of Fire Underwriters (or any other body exercising similar
functions) applicable to or affecting any condition, operation, use of occupancy of the Oil Terminal (including, without limitation, the purchase, sale, transportation, storage, loading and off-loading of Oil) and any building, structure or
improvement thereon, or any part or parts of either. 
 Legal Requirements. All statutes, codes, ordinances (and all rules and regulations
thereunder), all executive orders and other administrative orders, judgments, decrees, injunctions and other Judicial orders of or by any Governmental Authority which may at any time be applicable to parts or appurtenances of the Oil Terminal or to
any condition or use thereof including, without limitation, the purchase, sale, transportation, storage, loading and off-loading of Oil, and the provisions of all Authorizations. 

Oil Terminal. The premises described in Exhibit A hereto, as well as all property, facilities and activities associated with the receipt,
storage, processing, transfer and dispensing of Oil by SPRAGUE OPERATING RESOURCES. 
 Taxes. All taxes, including but not limited to real
estate and personal property taxes, petroleum storage license fees, and registration fees, special and general assessments, water rents, rates and charges, sewer rents, and other impositions imposed by any Governmental Authority and charges of every
kind and nature whatsoever, extraordinary as well as ordinary and each and every installment thereof which shall during and with respect to the period of the term of this Operating Agreement be charged, levied, laid, assessed, imposed, become due
and payable or become liens upon or for or with respect to the Oil Terminal or any part thereof, appurtenances or equipment owned by SPRAGUE OPERATING RESOURCES thereon or therein or any part thereof or on this Operating Agreement, together with all
interest and penalties thereon under or by virtue of all present or future Legal Requirements and any sales tax, gross receipt tax or tax of a similar nature based on a percentage fraction or capitalized value of the Operating Fees, as said
Operating Fees is defined in Section 4 hereunder. Provided, however, Taxes shall not be construed to include inheritance, estate, excise, succession, transfer, gift, franchise, income, gross receipt, or profit taxes that are or may be imposed
upon SPRAGUE MASSACHUSETTS, its respective successors or assigns. 

  
 1 

 2. OPERATING AGREEMENT OF OIL TERMINAL AND RECITATION OF GENERAL CONTRACT FRAMEWORK. 

2.1 Operating Agreement of Oil Terminal and Term. 
  

	 	(i)	Initial Term. SPRAGUE MASSACHUSETTS hereby enters into this Operating Agreement with SPRAGUE OPERATING RESOURCES upon the terms herein contained for a term of five (5) years, commencing October 30, 2013
(the “Initial Term”), as such Initial Term may be extended pursuant to the provisions of Section 2.3 hereof, and subject to earlier termination as is set forth herein. 

 

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

  

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

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

3. COST DEFINITION AND DETERMINATION. 

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

4. OPERATING FEES. 
 SPRAGUE
OPERATING RESOURCES shall satisfy its obligation to pay Operating Fees to SPRAGUE MASSACHUSETTS (i) by paying to SPRAGUE MASSACHUSETTS the sum of $15,200.00 per month (subject to adjustment as provided below) (the “Operating Fees”);
(ii) by being responsible for ordinary maintenance and repairs to the Oil Terminal; and, (iii) by paying to SPRAGUE MASSACHUSETTS the amount of real estate taxes levied against the Oil Terminal. The Operating Fees specified in item
(i) above shall be subject to adjustment as follows: Commencing on July 1, 2014, and thereafter on July 1 of each year during the Term of this Operating Agreement, the aforementioned sum shall be increased in accordance with the
percentage increase of the Consumer Price Index, All Urban Consumers (CPI-U) Region I, Boston Index, for the previous year (July 1, 2013-June 30). Provided, however, to the extent such increase in any one year (as calculated as described in the
immediately preceding sentence) exceeds 6%, SPRAGUE OPERATING RESOURCES shall have the right, but not the obligation, to request renegotiation of this Operating Agreement. In the event such renegotiation fails to result in the establishment of new
terms acceptable to SPRAGUE OPERATING RESOURCES, SPRAGUE OPERATING RESOURCES may terminate this Operating Agreement upon the provision of twelve (12) months advance written notice to SPRAGUE MASSACHUSETTS. 

  
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 It is understood that this Operating Agreement is in the nature of a net Operating Agreement and
that such Operating Fees is to be net to SPRAGUE MASSACHUSETTS and, accordingly, SPRAGUE OPERATING RESOURCES shall bear all costs relating to the Oil Terminal whether or not specified expressly herein, including, without by way of limitation, Taxes.
In the event SPRAGUE OPERATING RESOURCES holds over following the expiration or termination of this Operating Agreement, SPRAGUE OPERATING RESOURCES shall be a tenant at sufferance subject to all the terms of this Operating Agreement. SPRAGUE
OPERATING RESOURCES shall also pay all public, special or betterment assessments levied or assessed by any municipality or other governmental authority associated with the Oil Terminal during the Term. 

5. UTILITIES. 
 All utilities will
be secured and paid for by SPRAGUE OPERATING RESOURCES for its own account. 
 6. ALLOWED USES/ PROHIBITED CONDITIONS. 

6.1 Allowed Use. Use of the Oil Terminal by SPRAGUE OPERATING RESOURCES shall be limited to SPRAGUE OPERATING RESOURCES receipt, storage, processing and
dispensing of Oil only in direct relationship to SPRAGUE OPERATING RESOURCES own oil distribution business. Any other use, without first obtaining the written consent of SPRAGUE MASSACHUSETTS, is prohibited. SPRAGUE OPERATING RESOURCES’ use of
the Oil Terminal will be in accordance with sound petroleum industry standards as in effect from time to time. 
 6.2 Prohibited Conditions. SPRAGUE
OPERATING RESOURCES shall not commit any nuisance, nor permit the emission of any objectionable noise or odor, nor make or suffer any waste, nor make any use of the Oil Terminal which is contrary to any law or ordinance or which would cause the
cancellation of insurance coverage of any of the Parties hereto. SPRAGUE OPERATING RESOURCES shall not use any portion of the Oil Terminal for the use, generation, treatment, storage or disposal of “oil” (except the product defined as
“Oil” herein), “hazardous material”, “hazardous waste”, or “hazardous substances”, as the same are defined under state or federal law or regulation. SPRAGUE OPERATING RESOURCES shall not place any sign or
advertisement at the Oil Terminal without first obtaining the written consent of SPRAGUE MASSACHUSETTS. 
 7. MAINTENANCE AND REPAIRS. 

SPRAGUE OPERATING RESOURCES accepts the Oil Terminal on an “as-is” basis. SPRAGUE OPERATING RESOURCES shall be responsible, at its
own cost and expense, subject, however, to the receipt of proceeds referred to in Section 11 to the extent available, to keep and maintain the Oil Terminal in good operating condition and repair in accordance with sound petroleum industry
standards and shall use all reasonable precaution to prevent waste, damage or injury. 
 8. REQUIREMENTS OF PUBLIC AUTHORITY. 

8.1. Legal Requirements. SPRAGUE OPERATING RESOURCES routinely shall review, be alert to and promptly observe and comply with all applicable Legal
Requirements of any Governmental Authority affecting use of the Oil Terminal at its own cost and expense including without limitation thereto all Legal Requirements in respect to environmental or water pollution control, testing and inspection of
Oil Terminal facilities at required intervals, maintaining records and reporting the results of said tests and inspections to appropriate Governmental Authorities. SPRAGUE OPERATING RESOURCES shall keep the Oil Terminal equipped with all safety and
preventive appliances required by said Legal Requirements or Insurance Requirements. SPRAGUE OPERATING RESOURCES shall pay all costs, expenses, liabilities, losses, damages, fines, penalties, claims and demands that may in any manner arise out of or
be imposed because of the failure of SPRAGUE OPERATING RESOURCES to comply with the covenants of this Section 8. SPRAGUE MASSACHUSETTS, to the extent required by law to do so, shall also comply with the covenants of this Section 8 relating
to property of SPRAGUE MASSACHUSETTS. 
 8.2 Contests. SPRAGUE OPERATING RESOURCES shall have the right to contest by appropriate legal proceedings
diligently conducted in good faith, in the name of SPRAGUE OPERATING RESOURCES, SPRAGUE MASSACHUSETTS (if legally required), or each of the Parties hereto (if legally required), without cost, expense, liability or damage to SPRAGUE MASSACHUSETTS,
the validity or application of any Legal Requirement and, if by the terms of any such Legal Requirement, compliance therewith may be delayed pending the prosecution of any such proceedings without subjecting the Oil Terminal or any other property of
SPRAGUE MASSACHUSETTS to any lien, sanction, or other encumbrance, SPRAGUE OPERATING RESOURCES may delay such compliance therewith until the final determination of such proceedings. 

8.3 SPRAGUE MASSACHUSETTS’ Assistance. SPRAGUE MASSACHUSETTS shall execute and deliver any appropriate papers or other instruments which may be
necessary or proper to permit SPRAGUE OPERATING RESOURCES to so contest the validity or application of any such Legal Requirement and to fully cooperate with SPRAGUE OPERATING RESOURCES in such contest. 

  
 3 

 8.4 SPRAGUE OPERATING RESOURCES’ Default. If SPRAGUE OPERATING RESOURCES shall fail to comply as
specified in the preceding subsection 8.1, SPRAGUE MASSACHUSETTS may take such action as may be required and SPRAGUE OPERATING RESOURCES shall reimburse SPRAGUE MASSACHUSETTS upon demand for the cost thereof. 

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

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

10. PAYMENT AND ACCOUNTING RECORDS. 
 10.1
Payment. SPRAGUE OPERATING RESOURCES shall pay SPRAGUE MASSACHUSETTS its Operating Fees upon receipt of invoice, but in no event later than 10 days from date of receipt by SPRAGUE OPERATING RESOURCES. SPRAGUE MASSACHUSETTS will likewise pay
SPRAGUE OPERATING RESOURCES any other amount due under this Operating Agreement in no event later than ten (10) days from date of receipt by SPRAGUE OPERATING RESOURCES. Any amount not paid when due shall be subject to a late payment charge
equivalent to one and one-half per cent (1.5%) per month accruing from the due date through the actual payment date. 
 10.2 Inspection and Financial
Information. SPRAGUE MASSACHUSETTS may, at any time and at its own expense, examine the accounts and records kept by SPRAGUE OPERATING RESOURCES with respect to the Oil Terminal, either by designated accounting personnel of SPRAGUE MASSACHUSETTS
or by an independent certified public accountant, and SPRAGUE OPERATING RESOURCES shall make such accounts and records available at its offices at reasonable times for such purposes. SPRAGUE OPERATING RESOURCES shall provide SPRAGUE MASSACHUSETTS
with a copy of its normal corporate certified annual report by its independent certified public accountant as soon as the same is available. 
 11.
INSURANCE. 
 11.1 Coverage. SPRAGUE OPERATING RESOURCES shall maintain, or cause to be maintained, at SPRAGUE OPERATING RESOURCES expense, for
the entire term of this Operating Agreement, insurance from reputable insurance companies, general liability insurance coverage applicable to operations, maintenance, repair and improvement work attendant to the use of the Oil Terminal, as well as
fire and casualty coverage for the Oil Terminal, and oil pollution and environmental impairment insurance coverage for all Oil Terminal activities, as specified in Exhibit B hereto; and SPRAGUE OPERATING RESOURCES shall furnish SPRAGUE MASSACHUSETTS
satisfactory evidence of such coverage being provided by SPRAGUE OPERATING RESOURCES upon demand, prior to the time it is due and 30 days prior to the date when renewal of same is to be effective. All such insurance shall be executed under valid and
enforceable policies issued by insurers rated at least B + VIII (or assigned a comparable rating by any successor company with similar standards) or appearing on the approved list of a reputable broker. 

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

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

  
 4 

 12. MORTGAGEE’S RIGHTS. 

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

 13.1 Covenant Against Liens. SPRAGUE OPERATING RESOURCES shall not make, allow or suffer, nor shall any person acquire through SPRAGUE
OPERATING RESOURCES, any lien, including liens of mechanics or material men for work done on behalf of SPRAGUE OPERATING RESOURCES on the Oil Terminal, mortgage or security interest in nor will SPRAGUE OPERATING RESOURCES sell, convey or assign any
interest in the Oil Terminal or in any buildings or other structures, replacements, changes, additions or improvements thereto or in fixtures thereon. Notwithstanding such restriction, if because of any act or omission of SPRAGUE OPERATING
RESOURCES, any mechanic’s lien or other lien, notice of contract, charge or order for payment of money shall be filed against any portion of the Oil Terminal, without the written consent of SPRAGUE MASSACHUSETTS, SPRAGUE OPERATING RESOURCES
shall, at its own cost and expense, cause the same to be discharged of record within fourteen (14) days after notice of the filing thereof. 

13.2 Right to Discharge. Without otherwise limiting any other remedy of SPRAGUE MASSACHUSETTS for default hereunder, if SPRAGUE OPERATING RESOURCES
shall fail to cause such liens to be discharged or recorded within the aforesaid fourteen (14) day period or to satisfy such liens within fourteen (14) days after any Judgment in favor of such lien holders from which no further appeal
might be taken, then SPRAGUE MASSACHUSETTS shall have the right to cause the same to be discharged. All amounts paid by SPRAGUE MASSACHUSETTS to cause such liens to be discharged shall constitute Additional Operating Fees. 

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

15.1 SPRAGUE OPERATING RESOURCES’ Property. Any property of any kind owned by SPRAGUE OPERATING RESOURCES that may be on the premises of the
Oil Terminal shall be at the sole risk of SPRAGUE OPERATING RESOURCES. 
 15.2 Spillage. SPRAGUE OPERATING RESOURCES will defend, save SPRAGUE
MASSACHUSETTS and its affiliates (the “Indemnitees”), as owners of the Oil Terminal, the real estate on which the Oil Terminal is located and the adjacent property, harmless and indemnified: from and against all loss or damage caused by
SPRAGUE OPERATING RESOURCES, its agents or contractors occasioned by (a) the use or misuse or abuse of water brought in through pipes or wells for use on the Oil Terminal or of the plumbing, heating or other apparatus, electric or other
fixtures; (b) the bursting or leaking of any pipes; or (c) a nuisance, including oil leakage and spillage, made or suffered on the Oil Terminal or adjacent property of Indemnitees, or in the immediate vicinity of the foregoing, arising out
of the operation of SPRAGUE OPERATING RESOURCES, except as may have been caused by the negligence of an Indemnitee, its agents and employees. 

15.3 SPRAGUE OPERATING RESOURCES Indemnity. SPRAGUE OPERATING RESOURCES shall indemnify, save harmless, and defend the Indemnitees from and against
any and all liability, damage, penalties or judgments and from and against any claims, actions, proceedings and expenses and costs in connection therewith, including reasonable counsel fees, arising from any injury to person or property sustained by
anyone in and about the Oil Terminal or the approaches appurtenant or adjacent thereto, or other appurtenances used in connection therewith, or associated with the operation of the Oil Terminal, resulting from any act or acts or

  
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omissions of SPRAGUE OPERATING RESOURCES, its officers, agents, servants, employees, contractors, lessees, customers, or invitees of any nature. SPRAGUE OPERATING RESOURCES shall, at its own cost
and expense, defend any and all suits or actions (just or unjust) which may be brought against an Indemnitee or in which an Indemnitee may be impleaded with others arising from any such act or omission of SPRAGUE OPERATING RESOURCES, its officers,
agents, servants, employees, contractors or invitees of any nature. The representations, covenants and warranties contained in this paragraph 15.3 shall survive the termination of this Operating Agreement. 

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

SPRAGUE OPERATING RESOURCES covenants that, during this Operating Agreement and for such further time as SPRAGUE OPERATING RESOURCES shall hold
the Oil Terminal or any part thereof, SPRAGUE OPERATING RESOURCES will not assign or encumber this Operating Agreement nor sublet the whole or any part of the Oil Terminal without first obtaining on each occasion the written consent of SPRAGUE
MASSACHUSETTS. SPRAGUE MASSACHUSETTS may assign the Operating Agreement or otherwise transfer its interest in the Oil Terminal with notice to SPRAGUE OPERATING RESOURCES. 

17. TAKINGS FOR PUBLIC USE. 

If the Oil Terminal, or any substantial part thereof, shall be taken by eminent domain, in pais or otherwise, this Operating Agreement and the
Term shall terminate, but if upon a taking this Operating Agreement does not terminate, SPRAGUE OPERATING RESOURCES shall assign to SPRAGUE MASSACHUSETTS any rights for compensation for property of SPRAGUE MASSACHUSETTS, whether real or personal, so
taken. If any such taking affects SPRAGUE OPERATING RESOURCES’ use, SPRAGUE OPERATING RESOURCES shall have the right to terminate and withdraw; provided, however, that such taking is not de minimus or otherwise not substantial in either effect
or size in the reasonable opinion of SPRAGUE MASSACHUSETTS. 
 18. RIGHT OF ENTRY. 

SPRAGUE MASSACHUSETTS may enter the Oil Terminal to view the same, and may remove any placards or signs not otherwise approved, and to make
repairs, improvements, alterations or additions thereto pursuant to provisions of this Operating Agreement. Such entry shall not disrupt any legitimate ongoing use of the Oil Terminal. 

19. TERMINATION FOR DEFAULT. 

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

 

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

  

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

  

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

  
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 19.2 SPRAGUE MASSACHUSETTS’ Remedies. If an Event of Default shall occur and be continuing,
SPRAGUE MASSACHUSETTS may, at its option, give to SPRAGUE OPERATING RESOURCES a notice terminating this Operating Agreement upon a date specified in such notice, which date shall be not less than 3 days, not including any Saturday, Sunday or other
day on which commercial establishments in New Bedford, Massachusetts are authorized or required by law or executive order to remain closed (“Business Days”), after the date of receipt by SPRAGUE OPERATING RESOURCES of such notice from
SPRAGUE MASSACHUSETTS, and upon the date specified in said notice, the term and estate hereby vested in SPRAGUE OPERATING RESOURCES shall cease and any and all other right, title and interest of SPRAGUE OPERATING RESOURCES hereunder (other than
SPRAGUE OPERATING RESOURCES rights pursuant to Section 15.4 hereof) shall likewise cease without further notice of lapse of time, as fully and with like effect as if the entire term of this Operating Agreement had elapsed, but SPRAGUE OPERATING
RESOURCES shall continue to be liable to SPRAGUE MASSACHUSETTS as hereinafter provided. 
 19.3 Further Remedies. Upon any termination of this
Operating Agreement pursuant to Section 19.2, or at any time thereafter, SPRAGUE MASSACHUSETTS may, in addition to and without prejudice to any other rights and remedies SPRAGUE MASSACHUSETTS shall have at law or in equity, lawfully enter into
and upon the Oil Terminal, or any part thereof in the name of the whole, and repossess the same as of the former estate of SPRAGUE MASSACHUSETTS and expel SPRAGUE OPERATING RESOURCES and those claiming through or under SPRAGUE OPERATING RESOURCES
and remove their effects (forcibly, if necessary) in the manner prescribed by the statute relating to summary proceedings, or similar statutes, without being deemed guilty of any manner of trespass, and without prejudice to any remedies which might
otherwise be used for arrears of Operating Fees or proceeding breach of covenant, and upon entry as aforesaid this Operating Agreement shall terminate. 

20. INSOLVENCY. 
 20.1 Termination for
Insolvency. In the event of any receivership, insolvency or bankruptcy proceedings instituted by or against SPRAGUE OPERATING RESOURCES under a bankruptcy, insolvency or other law relating to the relief of the adjustment of indebtedness,
rehabilitation or reorganization of debtors or the making of an assignment for the benefit of creditors by SPRAGUE OPERATING RESOURCES or if a decree or order by a court having Jurisdiction in the premises shall be entered approving a petition
seeking reorganization of SPRAGUE OPERATING RESOURCES under the Federal Bankruptcy Act or any similar statute applicable to SPRAGUE OPERATING RESOURCES or appointing a receiver or conservator or liquidator or trustee of SPRAGUE OPERATING RESOURCES
or of substantially all of the property of SPRAGUE OPERATING RESOURCES (other than a receiver, conservator, liquidator or trustee appointed in a proceeding not based upon insolvency of SPRAGUE OPERATING RESOURCES or upon its inability to pay its
debts as they become due), or in the event any execution of attachment shall be issued against SPRAGUE OPERATING RESOURCES or all or substantially all of SPRAGUE OPERATING RESOURCES property whereby the Oil Terminal shall be taken or occupied or
attempted to be taken or occupied by some person other than SPRAGUE OPERATING RESOURCES, except as may herein be permitted, and such execution, attachment or occupation shall not be removed within 30 days from the date it first occurs, then SPRAGUE
OPERATING RESOURCES shall be deemed to be in breach of this Operating Agreement and this Operating Agreement shall immediately terminate and SPRAGUE MASSACHUSETTS reserves all remedies for breach of this Operating Agreement. 

20.2 Bankruptcy Proceedings. In the event of involuntary bankruptcy or corporate reorganization proceedings against SPRAGUE OPERATING RESOURCES,
SPRAGUE MASSACHUSETTS may terminate this Operating Agreement by written election to SPRAGUE OPERATING RESOURCES but not before the earlier of (a) 30 days after the service upon SPRAGUE OPERATING RESOURCES of the initial petition in connection
with such proceedings, or (b) the adjudication of insolvency of SPRAGUE OPERATING RESOURCES, but said right to terminate shall not be exercised if such petition shall have been denied and such denial shall not have been reversed; provided, that
if such petition or commencement is involuntarily made against SPRAGUE OPERATING RESOURCES and is dismissed within 60 days of the date of such filing of commencement such events shall not constitute an insolvency hereunder. 

21. DAMAGES ON DEFAULT. 

21.1 Surrender. Upon expiration, forfeiture, surrender or termination of this Operating Agreement, SPRAGUE OPERATING RESOURCES shall peaceably
surrender and deliver up the Oil Terminal together with all personal property attached thereto or customarily used in connection therewith, all as the absolute property of SPRAGUE MASSACHUSETTS, broom clean and in good condition and repair,
reasonable wear and tear and casualties not required to be insured against excepted. In addition, upon said expiration, forfeiture, surrender or termination, SPRAGUE OPERATING RESOURCES agrees to waive and release any right or claim to the Oil
Terminal or otherwise associated with this Operating Agreement, including, without limitation, any right or claim pursuant to Mass. Gen. Laws c 91 or the regulations promulgated thereunder relating to the displacement of “water dependent
uses”. SPRAGUE OPERATING RESOURCES shall provide such documentation as SPRAGUE MASSACHUSETTS may request stating that such expiration, forfeiture, surrender or termination is in the context of a “voluntary arrangement” as that term is
in 310 C.M.R. 9.36 (4)(b). Provided, however, the foregoing shall not be construed to affect any indemnity, right or claim of SPRAGUE OPERATING RESOURCES relating to personal injury or damage to property as provided in Article 15.4 hereof. It is
agreed between SPRAGUE MASSACHUSETTS and SPRAGUE OPERATING RESOURCES that any and all structures, buildings, additions, 

  
 7 

 
improvements, equipment, apparatus, alterations and replacements constructed by or for SPRAGUE OPERATING RESOURCES on the Oil Terminal or placed thereon by or for SPRAGUE OPERATING RESOURCES
including by way of illustration but without limitation thereto, the items hereinafter specified, as well as all items of the type specified, shall be deemed to be and shall be affixed to and be a part of the Oil Terminal, and shall not be removed
therefrom except upon written order of SPRAGUE MASSACHUSETTS: oil storage tanks; fuel oil heaters; fuel oil pumps and drivers; oil piping, steam, water and other piping and valves; electrical conduits, wiring and motors; instruments and controls;
buildings including all portions and the contents thereof; roadways; fencing; and (also including all appurtenances and all items attached to the foregoing). For the purposes of this Section 21, the term “Improvements” shall include
all buildings, replacement, changes, additions, fixtures and improvements now existent or at any time constructed upon the Oil Terminal, including by way of illustration and not limitation, oil storage and pumping facilities and pipelines, with all
equipment in or appurtenant thereto. Notwithstanding the foregoing, SPRAGUE OPERATING RESOURCES shall have the option of removing any equipment of their installation which will not impair the use by SPRAGUE MASSACHUSETTS of the Oil Terminal in a
manner consistent with its original condition; to the extent SPRAGUE MASSACHUSETTS has an interest in purchasing any such equipment installed by SPRAGUE OPERATING RESOURCES, SPRAGUE OPERATING RESOURCES shall make a proposal for such purchase by
SPRAGUE MASSACHUSETTS upon the request of SPRAGUE MASSACHUSETTS. 
 21.2 SPRAGUE MASSACHUSETTS’ Operation of Oil Terminal. In the event of
any dispute between the Parties as to the termination of this Operating Agreement or as to possession of or title to the Improvements, SPRAGUE MASSACHUSETTS shall, pending final determination of such dispute, have the right subject to subsection
18.3 to make entry on the Oil Terminal and use any and all facilities. 
 21.3 Right to Relet. At any time or from time to time after any such
expiration or termination, SPRAGUE MASSACHUSETTS may contract for the use of the Oil Terminal, or any part thereof, in the name of SPRAGUE MASSACHUSETTS or otherwise, for such term or terms (which may be greater or less than the period which would
otherwise have constituted the balance of the term of this Operating Agreement) and on such conditions (which may include concessions or free Operating Fees) as SPRAGUE MASSACHUSETTS, in its reasonable discretion, may determine and may collect and
receive the Operating Fees therefor. SPRAGUE MASSACHUSETTS shall in no way be responsible or liable for any failure to contract for the use of the Oil Terminal or any part thereof, or for any failure to collect any Operating Fees due upon any such
contracting, but agrees to use reasonable efforts to mitigate damages. 
 21.4 Survival of Covenants. No such expiration or termination of this
Operating Agreement shall relieve SPRAGUE MASSACHUSETTS or SPRAGUE OPERATING RESOURCES of their respective liabilities and obligations under this Operating Agreement and such liability. 

21.5 Right to Equitable Relief. In the event of any breach or threatened breach by any of the Parties of any of the covenants, agreements, terms or
conditions contained in this Operating Agreement, the other party shall be entitled to enjoin such breach or threatened breach and shall have the right to invoke any right and remedy allowed at law or in equity or by statute or otherwise as though
re-entry, summary proceedings, and other remedies were not provided for in this Operating Agreement. 
 22. INVALID PROVISIONS. 

If any term, covenant, condition or provision of this Operating Agreement or the application thereof to any person or circumstance shall, at
any time or to any extent, be invalid or unenforceable, the remainder of this Operating Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not
be affected thereby, and each term, covenant, condition and provision of this Operating Agreement shall be valid and be enforced to the fullest extent permitted by law. 

23. NO WAIVERS. 
 Failure of
SPRAGUE MASSACHUSETTS to complain of any act or omission by SPRAGUE OPERATING RESOURCES, no matter how long the same may continue, shall not be deemed to be a waiver by SPRAGUE MASSACHUSETTS of any of their respective rights hereunder. No waiver by
SPRAGUE MASSACHUSETTS at any time, expressed or implied, of any breach of any provision of this Operating Agreement shall be deemed a waiver of a breach of any other provision of this Operating Agreement or a consent to any subsequent breach of the
same or any other provision. No acceptance by SPRAGUE MASSACHUSETTS or by SPRAGUE OPERATING RESOURCES of any partial payment shall constitute an accord or satisfaction but shall only be deemed a partial payment on account. 

  
 8 

 24. NOTICES AND COMMUNICATIONS. 

All notices, demands, requests and other communications provided for or permitted under this Operating Agreement shall be in writing and shall
be delivered either in person, by prepaid telegram, or other telecommunication device, or by registered or certified mail, return receipt requested, to the following addresses: 

 

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

 

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

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

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

23. APPLICABLE LAW. 
 This
Operating Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. 
 24. ENTIRE
AGREEMENT. 
 This Operating Agreement constitutes the entire understanding between the parties relating to the subject matter hereof,
and supersedes all prior written or oral communications, understandings and agreements. This Operating Agreement may be modified or amended only by a written agreements signed by the authorized representatives of the parties. 

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

	
	SPRAGUE MASSACHUSETTS PROPERTIES, LLC
	
	/s/ Paul A. Scoff
	Paul A. Scoff
	Vice President and Secretary
	
	SPRAGUE OPERATING RESOURCES LLC
	
	/s/ Paul A. Scoff
	Paul A. Scoff
	Vice President, General Counsel, Chief Compliance Officer and Secretary

 [Signature Page to Terminal Operating Agreement] 

 EXHIBIT A 

PLAN OF PREMISES 

 

 

 

 

 EXHIBIT B 

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

Workers Compensation—SPRAGUE OPERATING RESOURCES will provide proof of coverage for workers compensation coverage for 1) exposures in the
Commonwealth of Massachusetts, 2) Longshoremen and Harbor Workers’ Act, and 3) Jones Act if applicable. Employers Liability in the amount of $1,000,000 shall be provided. All policies shall contain a waiver of subrogation in favor of the
indemnitees. 
 Automobile Liability—SPRAGUE OPERATING RESOURCES shall provide automobile liability coverage in the amount of $1,000,000. 

Property—SPRAGUE OPERATING RESOURCES shall provide proof of either an All Risk property insurance policy or a Named Perils policy and a Difference
in Conditions policy covering the oil terminal property on a replacement cost basis. The policy(ies) shall contain a waiver of subrogation in favor of the indemnitees. Coverage shall include fire department charges and costs of fire suppression
chemicals. 
 Difference in Conditions—SPRAGUE OPERATING RESOURCES shall obtain a limit of $25,000,000 and coverage shall include Wharfingers
Liability, Charterer’s Liability, Terminal Owners Liability and Safe Berth exposure. 
 Oil Pollution Bond—SPRAGUE OPERATING RESOURCES
shall post an oil pollution bond in the amount of $25,000 for the SPRAGUE MASSACHUSETTS of Massachusetts, Division of Water Pollution Control, per statutory requirements as in effect from time to time. SPRAGUE MASSACHUSETTS shall be listed as a
principal on the bond along with SPRAGUE OPERATING RESOURCES. SPRAGUE OPERATING RESOURCES shall provide a certified copy of the bond to SPRAGUE MASSACHUSETTS. 

Vessel Requirements—SPRAGUE OPERATING RESOURCES must obtain a certificate of insurance from each vessel that docks at the terminal. The
certificate must be obtained prior to docking and must include coverage for Protection & Indemnity and specifically list the vessel. 

Oil Pollution Coverage—SPRAGUE OPERATING RESOURCES shall maintain all coverage required pursuant to the Oil Pollution Act of 1990 and the
regulations promulgated thereunder, as the same may be in effect from time to time. SPRAGUE OPERATING RESOURCES shall also insure that all vessels transporting Oil to the Oil Terminal maintain such coverage.

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