Document:

EX-10.2

 Exhibit 10.2 
 CONTRIBUTION, CONVEYANCE AND ASSUMPTION 
 AGREEMENT 

By and Among 
 SPRAGUE RESOURCES LP, 
 SPRAGUE RESOURCES GP LLC, 

AXEL JOHNSON INC., 
 SPRAGUE INTERNATIONAL PROPERTIES LLC, 
 SPRAGUE CANADIAN PROPERTIES LLC,

 SPRAGUE RESOURCES HOLDINGS LLC, 
 And 
 SPRAGUE OPERATING RESOURCES LLC 

Dated as of
                    , 2013 

 CONTRIBUTION, CONVEYANCE AND ASSUMPTION 

AGREEMENT 

This Contribution, Conveyance and Assumption Agreement, dated as of
                , 2013 (this “Agreement”), is by and among Sprague Resources LP, a Delaware limited partnership (the
“Partnership”), Sprague Resources GP LLC, a Delaware limited liability company (the “General Partner”), Axel Johnson Inc., a Delaware corporation (“AJI”), Sprague International Properties LLC, a
Delaware limited liability company (the “SPV”), Sprague Canadian Properties LLC, a Delaware limited liability company (the “SPV2”), Sprague Resources Holdings LLC, a Delaware limited liability company
(“Holdings”), and Sprague Operating Resources LLC, a Delaware limited liability company (the “OLLC”). The above named entities are sometimes referred to in this Agreement individually as a “Party”
and collectively as the “Parties.” Capitalized terms used herein shall have the meanings assigned to such terms in Article I. 
 RECITALS 
 WHEREAS, the General Partner and Holdings have
formed the Partnership, pursuant to the Delaware Revised Uniform Limited Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business activity that is approved by the General Partner and that lawfully may be
conducted by a limited partnership organized pursuant to the Delaware LP Act. 
 WHEREAS, each of the following actions
has been taken prior to the date hereof: 
  

	 	1.	AJI formed Holdings to which AJI it contributed $2,000 in exchange for all of the membership interests in Holdings. 

 

	 	2.	Holdings formed the General Partner to which it contributed $1,000 in exchange for all of the membership interests in the General Partner. 

 

	 	3.	The General Partner and Holdings formed the Partnership to which the General Partner contributed $10 and Holdings contributed $990 in exchange for a 1% general partner
interest and a 99% limited partner interest, respectively. 

  

	 	4.	Holdings formed the SPV to which it contributed $1,000 in exchange for all of the membership interests in the SPV. 

 

	 	5.	The SPV formed the SPV2 to which it contributed $1,000 in exchange for all of the membership interests in the SPV2. 

 

	 	6.	Sprague Energy Corp. filed articles of conversion with the Secretary of State of the State of Delaware pursuant to which it converted into a limited liability company
named “Sprague Operating Resources LLC” and subsequently filed an election with the Internal Revenue Service (the “IRS”) on Form 8832 electing, effective on the date of formation of the OLLC, to be treated as a corporation
for U.S. federal income tax purposes. 

 WHEREAS, pursuant hereto, each of the following will occur at the
Effective Time in the order set forth herein: 
  

	 	1.	The OLLC will effect the amalgamation of Kildair Service Ltd. and 8604827 Canada Inc., with 8604827 Canada Inc., after amalgamation, being the “Surviving
Entity”. 

  

	 	2.	The OLLC will effect the amalgamation of the Surviving Entity and Sprague Energy Canada Ltd. (after amalgamation, “New Kildair”). New Kildair will
retain (i) Sprague Energy Canada Ltd.’s U.S. tax ID number and (ii) Kildair Service Ltd.’s Canadian tax ID number. New Kildair’s name will be “Kildair Service Ltd.” 

 

	 	3.	AJI will contribute all of the membership interests in the OLLC (the “OLLC Interest”) to Holdings. 

  
 1 

	 	4.	The OLLC will file an election with the IRS on Form 8832 to be disregarded as an entity separate from its sole tax owner for U.S. federal income tax purposes to be
effective prior to the Effective Time. 

  

	 	5.	The OLLC will assign to the General Partner all of the corporate assets set forth on Schedule A hereto (together, the “Corporate Assets”).

  

	 	6.	The OLLC will assign to the SPV (i) the notes receivable aggregating
$                 million from Sprague Energy Canada Ltd. set forth on Schedule B hereto (together, the “Notes Receivable”); (ii) all of the
equity interests in Ekotek Inc., a Delaware corporation (“Ekotek”); (iii) all of the equity interests in Sprague Massachusetts Properties LLC, a Delaware limited liability company (“Sprague Massachusetts”), and
any other interest in the assets related to the New Bedford Terminal that may be held in the name of the OLLC (the “New Bedford Terminal Assets”); (iv) all of the equity interests in Sprague New York Properties LLC, a Delaware
limited liability company (“Sprague New York”); and (v) all of the assets comprising each of Sprague’s Bucksport, Portsmouth and Oceanside Terminals (the “Bucksport, Portsmouth and Oceanside Terminal
Assets” and, together with the Note Receivable and the New Bedford Terminal Assets, the “OLLC Distribution Interest”). 

  

	 	7.	The SPV will assume approximately $                 million of OLLC unsecured debt
and approximately $                 million of OLLC long-term acquisition debt set forth in Schedule C hereto (together, the “Long-Term
Debt”). 

  

	 	8.	The OLLC will assign to the SPV2 all of the interests in New Kildair. 

  

	 	9.	The OLLC will assign to Holdings $                 million of its accounts receivable
(the “Accounts”) [and $                 million in cash (the “Cash Disbursement”)]. 

 

	 	10.	Holdings will convey to the Partnership the OLLC Interest (the “Holdings Contribution”) in exchange for
(a)              Common Units, representing a     % limited partner interest in the Partnership, (b)
             Subordinated Units, representing a     % limited partner interest in the Partnership, (c) all of the equity interests in the Partnership classified as
Incentive Distribution Rights under the Partnership Agreement, and (d) the right to receive the Deferred Issuance and Distribution (as defined in Article III hereof) (collectively, the “Holdings Consideration”).

  
 2 

	 	11.	In connection with the Offering, the public, through the Underwriters, will contribute
$                 million ($                 million net of the Underwriters’
Spread) in cash to the Partnership in exchange for the Firm Units, as contemplated by the Registration Statement. 

  

	 	12.	The Partnership will pay Barclays Capital Inc. a structuring fee equal to 0.75% of the gross proceeds of the sale of the Firm Units (the “Firm Structuring
Fee”) and any Option Units (the “Option Structuring Fee” and, together with the Firm Structuring Fee, the “Structuring Fee”). 

 

	 	13.	The Partnership will pay all offering expenses, estimated to be approximately $2.3 million, excluding the Underwriters’ Spread and the Structuring Fee.

  

	 	14.	The Partnership will use the net proceeds from the sale of the Firm Units to repay $             million of
its outstanding working capital borrowings. 

  

	 	15.	The Partnership will redeem the initial interests of the General Partner and Holdings and will refund the General Partner’s initial contribution of $10 and
Holding’s initial contribution of $990. 

 WHEREAS, the shareholders, members or partners of the
Parties have taken all corporate, limited liability company and partnership action, respectively, as the case may be, required to approve the transactions contemplated by this Agreement; and 

NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements herein contained, the
parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 The terms set forth below in this Article I shall have the
meanings ascribed to them below or in the part of this Agreement referred to below: 
 “Commission” means the
United States Securities and Exchange Commission. 
 “Common Unit” means a common unit representing a limited
partner interest in the Partnership having the rights set forth in the Partnership Agreement. 

  
 3 

 “Effective Time” means 8:00 a.m. prevailing Eastern Time on the date of the
closing of the offering of the Firm Units. 
 “Firm Net Proceeds” means the net proceeds from the sale of the
Firm Units, after deducting offering expenses, the Underwriters’ Spread and the Firm Structuring Fee. 
 “Firm
Units” means the Common Units to be sold by the Partnership to the Underwriters in the Offering pursuant to the terms of the Underwriting Agreement, but does not include any Option Units. 

“Offering” means the initial public offering of the Partnership as contemplated by the Registration Statement.

 “Option Closing Date” has the meaning assigned to it in the Partnership Agreement. 

“Option Units” means the Common Units that the Partnership will agree to issue upon an exercise of the Over-Allotment
Option. 
 “Original Partnership Agreement” means that certain Agreement of Limited Partnership of the
Partnership, dated as of June 23, 2011. 
 “Over-Allotment Option” has the meaning set forth in the
Partnership Agreement. 
 “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of the Partnership, substantially in the form attached as Appendix A to the Registration Statement. 

“Registration Statement” means the Registration Statement on Form S-1 filed with
the Commission (Registration No. 333-175826), as amended. 
 “Subordinated
Unit” means a subordinated unit representing a limited partner interest in the Partnership having the rights set forth in the Partnership Agreement. 
 “Underwriters” means the underwriters listed in the Underwriting Agreement. 
 “Underwriters’ Spread” means the total amount of the Underwriters’ discount. 
 “Underwriting Agreement” means a firm commitment underwriting agreement with respect to the Offering to be entered into by and among Holdings, the Partnership, the General Partner and the
Underwriters. 

  
 4 

 ARTICLE II 
 CONTRIBUTIONS, ACKNOWLEDGEMENTS AND DISTRIBUTIONS 
 The following shall be
completed at the Effective Time in the order set forth herein: 
 Section 2.1 Amalgamation of Surviving
Entity. The OLLC hereby agrees to effect the amalgamation of Kildair Service Ltd. and 8604827 Canada Inc., with the Surviving Entity to be the surviving entity. 
 Section 2.2 Amalgamation of New Kildair. The OLLC hereby agrees to effect the amalgamation of the Surviving Entity and Sprague Energy Canada Ltd., with New Kildair to be the surviving
entity. 
 Section 2.3 Conveyance of the OLLC Interest by AJI to Holdings. AJI hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to Holdings, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the OLLC Interest, and Holdings hereby accepts the OLLC Interest.

 Section 2.4 Form 8832 Election by the OLLC. The OLLC hereby agrees to file with the IRS an election on Form
8832 electing to be disregarded as an entity separate from its sole tax owner for U.S. federal income tax purposes to be effective prior to the Effective Time. 
 Section 2.5 Conveyance of Overhead Assets by the OLLC to General Partner. The OLLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the General
Partner, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the Corporate Assets, and the General Partner hereby accepts the Corporate Assets. 

TO HAVE AND TO HOLD, the Corporate Assets unto the General Partner, its successors and assigns, together with all and singular the rights
and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement and in such instruments of conveyance, forever. 
 Section 2.6 Distribution of OLLC Distribution Interest by the OLLC to the SPV. The OLLC hereby grants, distributes, bargains, conveys, assigns, transfers, sets over and delivers to the SPV,
its successors and its assigns, for its and their own use forever, all right, title and interest in and to the OLLC Distribution Interest, and the SPV hereby accepts the OLLC Distribution Interest. 

TO HAVE AND TO HOLD, each of the Note Receivable, the Bucksport, Portsmouth and Oceanside Terminal Assets and the New Bedford Terminal
Assets unto the SPV, its successors and assigns, together with all and singular the rights and appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement and in such instruments of conveyance,
forever. 

  
 5 

 Section 2.7 Conveyance of Ekotek, Sprague Massachusetts and Sprague New York by
OLLC to SPV. The OLLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the SPV, its successors and its assigns, for its and their own use and burden forever, all right, title obligation and
interest in the equity interests of each of Ekotek, Sprague Massachusetts and Sprague New York, and the SPV hereby accepts the interests in each of Ekotek, Sprague Massachusetts and Sprague New York. 

Section 2.8 Assumption of Long-Term Debt by SPV from the OLLC. The OLLC hereby grants, contributes, bargains,
conveys, assigns, transfers, sets over and delivers to the SPV, its successors and its assigns, for its and their own use and burden forever, all right, title obligation and interest in the Long-Term Debt, and the SPV hereby assumes full and primary
responsibility for the repayment of the Long Term Debt, as between itself and the OLLC and subsidiary of the OLLC that is a guarantor of the Long Term Debt. 
 Section 2.9 Conveyance of New Kildair by OLLC to the SPV2. The OLLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to the SPV2, its
successors and its assigns, for its and their own use and burden forever, all right, title obligation and interest in New Kildair, and the SPV2 hereby accepts the interests in New Kildair. 

Section 2.10 Conveyance of Accounts by OLLC to Holdings. The OLLC hereby grants, contributes, bargains,
conveys, assigns, transfers, sets over and delivers to Holdings, its successors and its assigns, for its and their own use and burden forever, all right, title obligation and interest in the Accounts, and Holdings hereby accepts the Accounts.

 TO HAVE AND TO HOLD, the Accounts unto Holdings, its successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and conditions stated in this Agreement and in such instruments of conveyance, forever. 
 Section 2.11 Payment of Cash Disbursement. The OLLC hereby agrees to disburse the Cash Disbursement to Holdings, and Holdings hereby agrees to accept the Cash Disbursement. 

Section 2.12 Conveyance of Holdings Contribution by Holdings to the Partnership. Holdings hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to the Partnership, its successors and its assigns, for its and their own use forever, all right, title and interest in and to the Holdings Contribution, and the Partnership hereby
accepts the Holdings Contribution, in exchange for the Holdings Consideration. Holdings hereby accepts the Holdings Consideration. 
 Section 2.13 Execution of the Partnership Agreement. The Partnership, the General Partner and Holdings shall amend and restate the Original Partnership Agreement by executing the Partnership
Agreement in substantially the form included in Appendix A to the Registration Statement, with such changes as are necessary to reflect any adjustment to the number of Firm Units and Option Units as the Partnership and Holdings may agree with the
Underwriters and such other changes as the Partnership, the General Partner and Holdings may agree. 
 Section 2.14
Payment and Contribution of Cash by the Public Through the Underwriters. The Parties acknowledge that the Partnership is undertaking the Offering and the public, through the Underwriters will, pursuant to the Underwriting Agreement, agree
to make a capital contribution to the Partnership of an amount determined pursuant to the Underwriting Agreement in exchange for the issuance and sale of the Partnership Units. 

Section 2.15 Payment of Underwriters’ Spread and Firm Structuring Fee. The Partnership agrees to pay the Underwriters
the applicable Underwriters’ Spread and to pay Barclays Capital Inc. the Firm Structuring Fee. 
 Section 2.16
Payment of Transaction Expenses. The Parties acknowledge the payment by the Partnership, in connection with the transactions contemplated hereby and by the Registration Statement, of estimated transaction expenses in the amount of
approximately $2.3 million (exclusive of the Underwriters’ Spread and the Structuring Fee). 
 Section 2.17 Payment
of Outstanding Working Capital. The Partnership agrees to use the Firm Net Proceeds to repay approximately $       million of its outstanding working capital borrowings. 

Section 2.18 Redemption of the General Partner’s and Holdings’ Initial Interests. For and in consideration of the
payment by the Partnership of $10 to the General Partner and $990 to Holdings as a refund of their respective initial contribution to the Partnership, the Partnership hereby redeems all of the initial interests of the General Partner and Holdings in
the Partnership. 

  
 6 

 ARTICLE III 
 DEFERRED ISSUANCE AND DISTRIBUTION 
 Section 3.1 Deferred Issuance
and Distribution; Payment of the Option Structuring Fee. If the Over-Allotment Option is exercised in whole or in part, the public, through the Underwriters, will make an additional capital contribution to the Partnership in cash in an
amount determined pursuant to the Underwriting Agreement in exchange for the sale of the Option Units. Upon the earlier to occur of the expiration of the Over-Allotment Option period or the exercise in full of the Over-Allotment Option, the
Partnership will issue to Holdings a number of additional Common Units that is equal to the excess, if any, of (x) the maximum number of Option Units issuable pursuant to the Over-Allotment Option over (y) the aggregate number of Option
Units, if any, actually purchased by and issued to the Underwriters pursuant to any exercise(s) of the Over-Allotment Option. Upon each Option Closing Date, the Partnership shall make a distribution to Holdings in cash in an aggregate amount equal
to the total amount of proceeds received by the Partnership from such exercise of the Over-Allotment Option, net of the Underwriters’ Spread and the Option Structuring Fee, as reimbursement for certain capital expenditures made by Holdings
prior to the transactions described in the Registration Statement. Both the additional Common Units issuable and the cash distributions distributable to Holdings (collectively, the “Deferred Issuance and Distribution”), when issued
and/or distributed, shall be issued and distributed to Holdings. The Partnership hereby agrees to pay the applicable Option Structuring Fee, if any. 
 ARTICLE IV 
 OTHER ASSURANCES 

Section 4.1 Further Assurances. From time to time at and after the Effective Time, and without any further consideration,
the Parties agree to execute, acknowledge and deliver all such additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other documents, and to do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or which are
intended to be so granted, (b) more fully and effectively to vest in the applicable Parties and their respective successors and assigns beneficial and record title to the interests contributed and assigned by this Agreement or intended to be so
and (c) more fully and effectively to carry out the purposes and intent of this Agreement. 

  
 7 

 Section 4.2 Cash Attributable to the Accounts. The General Partner hereby
agrees to cause the Partnership and its subsidiaries to promptly transmit to Holdings any cash received attributable to any of the Accounts. 
 ARTICLE V 
 EFFECTIVE TIME 

Notwithstanding anything contained in this Agreement to the contrary, none of the provisions of Article II, Article III or Article IV
shall be operative or have any effect until the Effective Time, at which time all such provisions shall be effective and operative in accordance with this Agreement without further action by any Party. 

ARTICLE VI 

MISCELLANEOUS 
 Section 6.1 Order of Completion of Transactions. Each of the transactions provided for in Article II of this Agreement shall be completed immediately following the Effective Time in the
order set forth therein. Following the completion of the transactions provided for in Article II, the transactions provided for in Article III, if they occur, shall be completed. 

Section 6.2 Headings; References; Interpretation. All Article and Section headings in this Agreement are for convenience
only and shall not be deemed to control or affect the meaning or construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, shall
refer to this Agreement as a whole and not to any particular provision of this Agreement. All references herein to Articles and Sections shall, unless the context requires a different construction, be deemed to be references to the Articles and
Sections of this Agreement. All personal pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender, shall include all other genders, and the singular shall include the plural and vice versa. The use herein of the word
“including” following any general statement, term or matter shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether
or not non-limiting language (such as “without limitation”, “but not limited to”, or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all
other items or matters that could reasonably fall within the broadest possible scope of such general statement, term or matter. 

  
 8 

 Section 6.3 Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and assigns. 
 Section 6.4 No Third Party
Rights. The provisions of this Agreement are intended to bind the Parties as to each other and are not intended to and do not create rights in any other person or confer upon any other person any benefits, rights or remedies, and no person
is or is intended to be a third party beneficiary of any of the provisions of this Agreement. 
 Section 6.5
Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument.

 Section 6.6 Applicable Law; Forum, Venue and Jurisdiction. This Agreement shall be construed in accordance with
and governed by the laws of the State of Delaware. Each of the Parties (i) irrevocably agrees that any claims, suits, actions or proceedings arising out of or relating in any way to this Agreement shall be exclusively brought in the Court of
Chancery of the State of Delaware, in each case regardless of whether such claims, suits, actions or proceedings sound in contract, tort, fraud or otherwise, are based on common law, statutory, equitable, legal or other grounds, or are derivative or
direct claims; (ii) irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware in connection with any such claim, suit, action or proceeding; (iii) agrees not to, and waives any right to, assert in
any such claim, suit, action or proceeding that (A) it is not personally subject to the jurisdiction of the Court of Chancery of the State of Delaware or of any other court to which proceedings in the Court of Chancery of the State of Delaware
may be appealed, (B) such claim, suit, action or proceeding is brought in an inconvenient forum, or (C) the venue of such claim, suit, action or proceeding is improper; (iv) expressly waives any requirement for the posting of a bond
by a party bringing such claim, suit, action or proceeding; and (v) consents to process being served in any such claim, suit, action or proceeding by mailing, certified mail, return receipt requested, a copy thereof to such party at the address
in effect for notices hereunder, and agrees that such services shall constitute good and sufficient service of process and notice thereof; provided, nothing in clause (v) hereof shall affect or limit any right to serve process in any
other manner permitted by law. 
 Section 6.7 Severability. If any of the provisions of this Agreement are held by
any court of competent jurisdiction to contravene, or to be invalid under, the laws of any political body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate the entire Agreement. Instead, this
Agreement shall be construed as if it did not contain the particular provision or provisions held to be invalid and an equitable adjustment shall be made and necessary provision added so as to give effect to the intention of the Parties as expressed
in this Agreement at the time of execution of this Agreement. 
 Section 6.8 Amendment or Modification. This
Agreement may be amended or modified from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face as an amendment to this Agreement. 

  
 9 

 Section 6.9 Integration. This Agreement constitutes the entire agreement among
the Parties with respect to the subject matter hereof and supersedes all prior contracts or agreements among the Parties with respect to the subject matter hereof and the matters addressed or governed hereby, whether oral or written. 

Section 6.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable law, this Agreement shall
also constitute a “deed,” “bill of sale” or “assignment” of the assets and interests referenced herein. 
 Section 6.11 Costs. Each transferee/assignee hereunder shall pay all sales, use and similar taxes arising out of the contributions, conveyances and deliveries to be made hereunder, and shall
pay all documentary, filing, recording, transfer, deed and conveyance taxes and any fees required in connection therewith. 

6.12 Tax Treatment. The Parties acknowledge and agree that the contribution of cash to the partnership
pursuant to Section 2.14 is properly characterized and shall be reported as a transaction described in Revenue Ruling 99-5, Situation 2, and that any cash distribution to Holdings pursuant to Section 2.18 or Section 3.1 or any amount treated as a
transfer to AJI (as the tax owner of Holdings) pursuant to Treasury Regulation Section 1.707-5 as a result of the transactions described herein shall be treated to the maximum extent possible as a reimbursement of preformation capital expenditures
within the meaning of Treasury Regulation Section 1.707-4(d). 
 [Signature Pages Follow] 

  
 10 

 IN WITNESS WHEREOF, the parties to this Agreement have caused it to be duly executed as of
the date first above written. 
  

					
	SPRAGUE RESOURCES LP
		
	By:	 	SPRAGUE RESOURCES GP LLC, its general
partner
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
	
	SPRAGUE RESOURCES GP LLC
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
	
	AXEL JOHNSON INC.
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
	
	SPRAGUE RESOURCES HOLDINGS LLC
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	
	
	SPRAGUE OPERATING RESOURCES LLC
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

 Signature Page to Contribution, Conveyance and Assumption Agreement 

 

 
					
	
	SPRAGUE INTERNATIONAL PROPERTIES LLC
			
	By:	 	 	 	 
		 	Name:	 	
		 	Title:	 	
	
	SPRAGUE CANADIAN PROPERTIES LLC
			
	By:	 	 	 	 
		 	Name:	 	
		 	Title:	 	

 Signature Page to Contribution, Conveyance and Assumption Agreement 

 Schedule A 

Corporate Assets 
  

			
	 Asset Number
	  	 Description

		
	131182	  	 SOLARC NAT GAS TRADNG SYS 2010

		
	133137	  	 External Web Site Data Center

		
	132396	  	 REAL TIME 2011

		
	133111	  	 Security & Network Infra 2011

		
	130500	  	 VOIP TELEPHONE SYSTEM 2009

		
	133129	  	 Network/Server Upgrades

		
	130850	  	 TARIFF MODEL IMPROVEMENTS

		
	132370	  	 2011 NETWORK/SERVER UPGRADES

		
	126172	  	 2005 Tel Repl White Pl & Ocnsd

		
	133153	  	 SolArc Prod Server Replacement

		
	132901	  	 Storage Area Network Expansion

		
	133090	  	 Wireless Network

		
	130358	  	 CARBO RELO. FURN & FIXT. 2009

		
	132388	  	 PC REPLACEMENT 2011

		
	133145	  	 PC Replacement

		
	130868	  	 SAN UPGRADE 2010

		
	132601	  	 CPL Router

		
	131158	  	 2010 NETWORK SERVER UPGRADES

		
	132361	  	 11—PAPERLESS INBOUND INVOICES

		
	127159	  	 Gas Orion Monitors—All TMLs

		
	131166	  	 PC REPLACEMENT 2010

		
	131852	  	 Safari Server Upgrade 2011

		
	130008	  	 09 NETWORK/SERVR. UPGRADES

		
	126210	  	 Trade Floor Chairs

		
	123182	  	 Furniture 2nd Floor Office Spa

		
	121911	  	 Apt, Caretaker’s, Upgrade

		
	128581	  	 AEDS FOR HQ & SOPO

		
	126244	  	 Postage Machine Replacement

		
	122825	  	 Office Furniture—3rd Floor

		
	132628	  	 JDE & SOLARC DATA ARCHIVE

		
	129998	  	 ECOMMERCE—SOLARC INTEGRATION

		
	123730	  	 Construction—2nd Floor Office

		
	126228	  	 Trading Turrets for NH Trading

		
	120299	  	 Lease Option Expansion

		
	115490	  	 STS SOFTWARE

		
	115502	  	 STS SOFTWARE—

		
	115511	  	 STS UPGRADE TO 2.0

		
	115529	  	 STS BILLING UPGRADE

		
	115537	  	 STS G/L SOFTWARE

		
	115545	  	 STS SHOWME

		
	115553	  	 STS AP MATCHING

		
	115561	  	 PORTS&DSK SPACE—ADDITIONAL

		
	115570	  	 STS OP SYS UPGRADE

		
	115588	  	 TVA AUTOMATION

		
	115596	  	 TVA AUTOMATION SOFTWARE

		
	115609	  	 PUSH DOWN ACCOUNTING

		
	115617	  	 STS BILLING SYSTEM UPGRADE

		
	115625	  	 MV4000 UPGRADE STS

		
	115633	  	 STS DISK DRIVE

  
 Schedule A
to Contribution, Conveyance and Assumption Agreement 

			
		
	115641	  	 STS COMPUTER CONVERSIONS

		
	116513	  	 RICOH FAX MACHINE

		
	118965	  	 ADDTION TO APT

		
	118973	  	 ELECTRICAL WORK

		
	118990	  	 CROWN 500 BOILER W/COIL

		
	119001	  	 SIDING AND INSULATION

		
	119351	  	 HYPERION SOFTWARE

		
	119722	  	 Network IT Comm.Equip.

		
	119731	  	 ADDT’L IT—UPGRADE NETWORK

		
	119757	  	 RISK MGMT—LGT OIL

		
	119790	  	 NETWORK ADDITIONS

		
	119802	  	 SOFTWARE ADDITIONS

		
	119811	  	 FURN/FIX NEW OFFICE

		
	119829	  	 TELE.SYS. NEW BUILDING

		
	119837	  	 IT FIRE PROTECTION SYSTEM

		
	119853	  	 FURN & FIXTURES NEW BLDG

		
	119933	  	 Network Equipment

		
	119950	  	 SERVER BACKUP & FAULT TOLERANC

		
	120150	  	 RISK MANAGEMENT SYSTEM (Cont.)

		
	120176	  	 NETWORK HARDWARE

		
	120310	  	 Furniture

		
	120328	  	 Carpet & Drapes

		
	120336	  	 Lighting, TV, Paint, etc

		
	120352	  	 PKeeper Acct. Support System

		
	120601	  	 Server & Workstation Upgrade P

		
	120627	  	 Natural Gas Accounting System

		
	120635	  	 Customer Service Software

		
	120723	  	 Phone, Trading Floor Expansion

		
	120871	  	 Print Management Project

		
	120889	  	 Computor Upgrade—Sprague South

		
	120897	  	 Data Storage Upgrades

		
	120900	  	 Server Replacement & Upgrades

		
	120926	  	 PC upgrades

		
	120951	  	 Natural Gas Accounting System

		
	120969	  	 Natural Gas Accounting System

		
	120985	  	 Expansion, Office & Trading Fl

		
	121179	  	 JDE Software

		
	121187	  	 JDE Software—Sep 02

		
	121267	  	 PC Upgrades 2002

		
	121304	  	 JDE Software Dec 02

		
	121398	  	 Tape Backup System Replacement

		
	121460	  	 Retail Mktg/3rd Floor Move

		
	121478	  	 Retail Mktg/3rd floor expansio

		
	121849	  	 Addt’l PC’s—2002 Growth

		
	121857	  	 Srvr Replacement & Upgrade

		
	121902	  	 Riding Lawn Mower

		
	122155	  	 Internet Faxing & E-Mail

		
	122171	  	 CPU’s 2003 PC Upgrades/Replace

		
	122180	  	 Monitors—2003 PC Replacement/U

		
	122198	  	 Software—2003 PC Replacement

		
	122201	  	 Laptops—2003 PC Replacement/Up

		
	122219	  	 Misc.Hdwr—2003 PC Replacement/

		
	122227	  	 Color Printer—2003 PC Replacem

  
 Schedule A
to Contribution, Conveyance and Assumption Agreement 

			
		
	122235	  	6 Fax Machines
		
	122606	  	2003 Server Replcmnt & Addt’l
		
	122614	  	2003 Server Replcmnt & Addt’l
		
	122622	  	2003 PC Upgrades Additional
		
	122631	  	2003 PC upgrades Software
		
	122702	  	Web Site Re-Design
		
	122711	  	Server Website Redesign
		
	122729	  	TIBCO Integration Framework, P
		
	122817	  	TVAT Replacement system—Monito
		
	122956	  	Phone, Trading Floor Expan & U
		
	122964	  	Mitel Telephone system—Tradi
		
	123086	  	13 CPU units Home office
		
	123094	  	Hdware—8 Thin Clients
		
	123107	  	28 Dell Laptops
		
	123115	  	Supply Printer
		
	123123	  	Printer—
		
	123131	  	Software for various Laptops &
		
	123140	  	Solarc RightAngle SW—Phase 1
		
	123174	  	ESC Implementation—Natural Gas
		
	123203	  	Natural Gas Acct Sys—NGSupply
		
	123211	  	Natural Gas Acct Sys—IT
		
	123300	  	Data Center Equipment—buildo
		
	123318	  	Data Center Equipment
		
	123326	  	Blackberry Communications Devi
		
	123431	  	9 Monitors for Desk Tops
		
	123692	  	Data Center Equipment addition
		
	124020	  	Signature Capture Functionalit
		
	124038	  	Blackberry Communication Devic
		
	124046	  	Data Warehouse—SW
		
	124169	  	Gascard Partners
		
	124548	  	New Budget System
		
	124556	  	Server/Network Upgrades
		
	124564	  	2004 PC Replacement
		
	124601	  	Solarc RightAngle SW—Phase I
		
	124847	  	TLIU & Net—Gross Pricing Upgra
		
	124855	  	B2B Web
		
	125022	  	JDE Upgrade to Release 8
		
	125031	  	Web Security Improvements
		
	125049	  	PC Upgrades
		
	125911	  	Add’l SolArc Software License
		
	125920	  	Add’l GasMaster License
		
	125921	  	Add’l GasMaster License
		
	126025	  	2005 Server/Network Upgrd SW
		
	126033	  	2005 Server/Network Upgrd HW
		
	126130	  	JDE Upgrade—Internal Labor
		
	126148	  	2005 Addt’l Terminal Servers
		
	126156	  	2005 PC Upgrade
		
	126164	  	2005 Term. Equipment
		
	126199	  	2005 Replace Data Center HVAC
		
	126201	  	2006 Budget Phase II
		
	126236	  	JDE HR & FxA Imprv—Int Labor
		
	126252	  	ESS Compliance Tracking SW
		
	126261	  	Add’l Solarc SW License

  
 Schedule A
to Contribution, Conveyance and Assumption Agreement 

			
		
	126279	  	PD Merrill IT Related Term Upg
		
	126287	  	SolArc Natural Gas
		
	126295	  	Balanced Score Card
		
	126421	  	EXSTARS—IT 2005
		
	126439	  	Bottom Line Crate!Print
		
	126447	  	HESCO IT Required Upgrd
		
	126607	  	Solarc Risk
		
	126826	  	Citrix Metaframe
		
	127036	  	Solarc RightAngle SW—Phase 2
		
	127095	  	PC Replacement
		
	127108	  	Network/Server Upgrades
		
	127116	  	Backup/Restore Improvements
		
	127132	  	Storage Area Network Expansion
		
	127141	  	Active Directory
		
	128098	  	Voice Recording Upgrade
		
	128101	  	Flat Screens for HQ Personnel
		
	128119	  	Upgrade Key Access System
		
	128127	  	eMail and IM Archive
		
	128135	  	Intranet Portal
		
	128143	  	Solarc/DOD Major Enhancements
		
	128565	  	PC REPLACEMENT 2007
		
	128573	  	NETWORK/SERVER UPGRADES 2007
		
	128776	  	RETAIL NAT. GAS SYS (SAFARI)
		
	129040	  	NETWORK/SERVER UPGRADES
		
	129058	  	FLEETCARD REPLACEMENT SYSTEM
		
	129402	  	STORAGE AREA NETWORK (SAN)
		
	129411	  	BCP/DISASTER RECOVERY
		
	129429	  	NETWORK/SERVER UPGRADES
		
	130016	  	09 PC REPLACEMENT
		
	130438	  	CARBO RELOCATION—HARDWARE

 ONGOING PROJECTS 
  

			
	 Project
	  	 Project Description

		
	472948	  	 OBC TRUCK FLEET 2010

		
	472956	  	 CUSTOMER 1 VIEW 2010

		
	473019	  	 SOLARC S11 UPGRADE 2010

		
	476691	  	 Solarc S11 Upgrade

		
	476906	  	 Nat Gas Marketing Pricing Tool

		
	477941	  	 Spragueenergy.com Redesign

		
	478063	  	 Sprague Real Time—Phase 2

		
	479277	  	 PC Replacement 2013

		
	479285	  	 Newtwork/Server Upgrades

		
	479381	  	 JDE Upgrade to ERP 9.1

  
 Schedule A
to Contribution, Conveyance and Assumption Agreement 

 Schedule B 
 Notes Receivable 
  
  

	1)	Promissory Note, dated September 25, 2012, issued by Sprague Energy Canada Ltd. in favor of Sprague Operating Resources LLC having an original principal amount of
$25,000,000 and an outstanding amount of $             as of the date of this Agreement. 

  

	2)	Promissory Note, dated October 1, 2012, issued by Sprague Energy Canada Ltd. in favor of Sprague Operating Resources LLC having an original principal amount of
$39,672,198 and an outstanding amount of $             as of the date of this Agreement. 

  

	3)	Revolving Demand Promissory Note, dated July 15, 2013, issued by Kildair Service Ltd. in favor of Sprague Operating Resources LLC having an original principal
amount $30,000,000 and an outstanding amount of $             as of the date of this Agreement. 

  
 Schedule B
to Contribution, Conveyance and Assumption Agreement 

 Schedule C 
 Long-Term Debt 
  

	1)	Loans under that certain $25,000,000 Credit Agreement, dated as of September 24, 2012, among Sprague Operating Resources LLC, as borrower, and Wells Fargo Bank,
National Association, as Administrative Agent and lender, in an aggregate principal amount outstanding of $             as of the date of this Agreement. 

 

	2)	Acquisition Facility Loans under that certain Credit Agreement, dated as of May 28, 2010 (as amended through the date hereof), among Sprague Operating Resources
LLC (formerly Sprague Energy Corp.), as borrower, BNP Paribas, as Administrative Agent and Collateral Agent, and the other lenders party thereto, in an aggregate principal amount outstanding of
$             as of the date of this Agreement. 

  
 Schedule C
to Contribution, Conveyance and Assumption AgreementEX-10.6

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

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

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

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

  
 1 

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

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

  

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

  

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

  
 2 

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

  

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

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

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

  
 3 

 4.      OPERATING FEES. 

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

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

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

  
 4 

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

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

  
 5 

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

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

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

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

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

  
 6 

 
same is available. 
 11.      INSURANCE. 

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

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

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

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

  
 7 

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

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

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

  
 8 

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

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

  
 9 

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

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

 

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

  

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

 

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

  
 10 

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

  
 11 

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

  
 12 

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

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

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

  
 13 

 23.    NO WAIVERS. 

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

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

 

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

  

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

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

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

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

  
 14 

 24.    ENTIRE AGREEMENT. 

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

  
 15 

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

					
	SPRAGUE RESOURCES HOLDINGS LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	SPRAGUE MASSACHUSETTS PROPERTIES, LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
	
	SPRAGUE OPERATING RESOURCES LLC
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

  
 [Signature Page to
Terminal Operating Agreement] 

  
 16 

 EXHIBIT A 
 PLAN OF PREMISES 

  
 17 

 

 

 

 

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

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]