Document:

Exhibit 4.4

Convenience translation – the binding
version is the Hebrew version

 

Israel
Chemicals Ltd. (“ICL” or the “Company”)

 

Equity Compensation Plan (2014)

 

	1.	Title
	 	 
	 	This
        plan, as updated from time to time, shall be entitled “Israel Chemicals Ltd. – Equity Compensation Plan
        (2014)” (the “Plan”).

        

	 	 
	 	 
	2.	Purpose
    of the Plan
	 	 	 
	 	2.1	The
    purpose of the Plan is to allocate to the CEO, directors, officeholders and employees of the Company and of companies controlled
    by the Company (the “Offerees”) (in this Plan, the term the “Company” also refers to
    companies controlled by the Company, unless otherwise indicated by the context), options for the purchase of ordinary shares
    of ILS 1.00 nominal value each (the “Shares” or “Company Shares”) of the Company (the
    “Option Warrants” or the “Options”) or Shares of restricted shares (as defined in Section
    14 hereafter) or restricted share units (as defined in Section 15 hereafter), according to this Plan as approved by the Compensation
    and Human Resources Committee and the Company Board of Directors (the “Board”) and subject to the provisions
    of Section 102 of the Income Tax Ordinance (New Version), 5721-1961 (“Income Tax Ordinance”) and the rules
    enacted by virtue thereof, as amended from time to time (the “Rules”). Shares stemming from the exercise
    of the Options or the exercise of restricted share units shall be referred to in this Plan: “Exercise Shares”.
    
	 	2.2	The
        purpose of the Plan is to incentivize the Offerees to continue and contribute to the Company’s success in the future,
        success which is expected to be expressed, among other things, in the long-term business results, in the price of the
        Company’s Share in the Tel Aviv Stock Exchange Ltd. and\or the New York Stock Exchange (the “Stock Exchange”),
        and thereby to further the best interest of the Company and to increase its profits in the long-term.

        

	 	 	 
	 	 	 
	3.	The
    Offerees
	 	 	 
	 	3.1	The
        Offerees in the private offering are, or shall be at the time of the offering or future private offerings by virtue of
        the Plan, as the case may be, directors, consultants providing services exclusively to the Company, officeholders or other
        officials in managerial positions of the Company or companies under its control, in Israel and abroad, according to this
        Section 3.1.

         

        The
        provisions of this Plan as pertain to Section 102 of the Income Tax Ordinance do not apply to Offerees who are not Israeli,
        who shall be subject to the tax laws of their place of residence.

        

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	4.	Terms
    of the Options
	 	 	 
	 	4.1	The
    Option Warrants shall be allocated to the Offerees without consideration.  
	 	 	 
	 	4.2	Each
        Option Warrant shall grant the right to receive from the Company or any person on its behalf, by way of allocation or
        transfer (as specified in this Section 4.2 and Section 4.3 below) one ordinary share on the name of the Company, of ILS
        1.00 nominal value, in return for payment of the exercise price, as defined hereunder. The exercise price for each share
        underlying an Option Warrant shall be as determined by a Board resolution, subject to any law and to adjustments as provided
        in Section 13 below. The Board may determine that the exercise price shall be linked to any index, with respect to all
        Offerees or any part thereof, while the exercise price shall increase or decrease according to the ratio between the known
        index at the time of exercise and the base index. Notwithstanding the aforesaid, the exercise price for Offerees who are
        residents of the United States and\or subject to U.S. tax laws shall not be linked to the Consumer Price Index. The exercise
        price determined as described above, including linkage to the index as aforesaid respecting Option Warrants as determined
        by the Board, shall hereafter be referred to as the “Exercise Price”.

         

        In
        the case of occurrence of an event specified in Sections 13.1-13.4 below, the required adjustments shall be made. A share
        fraction created as a result of the aforesaid calculation shall be rounded up to a complete Share. The entire quantity
        of Options exercised shall expire immediately upon the exercise thereof.

         

        Example
        solely for the purpose of illustration:

         

        Number
        of Options – 100

         

        Exercise
        Price – ILS 60

         

        Share
        Value – ILS 120

         

        Multiplication
        of number of Options by Share Value – ILS 12,000

         

        The
        number of Exercise Shares actually allocated equals ILS 12,000/120

         

        That
        is, according to the above example, the Offeree shall pay, for the exercise of 100 Options, the Exercise Price of ILS
        6,000 and the number of Exercise Shares actually allocated to the Offeree in this case shall be 100 Shares.

        

	 	 	 
	 	4.3	Alternately, and
at the sole discretion of the Company, the Company may, upon exercise of the Options, allocate Shares to the Offerees, or transfer
unto them Shares held, or to be held, by the Company or another company controlled by it, at the value of the benefit
    alone, as specified below:

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

  

	 	 	4.3.1	The
    number of Exercise Shares to which each Offeree shall be entitled at the time of exercise of Option Warrants (as defined in
    Section 6.5 hereafter), shall be calculated according to the difference between:

 

	 	 	 	4.3.1.1	The
        closing rate at the Stock Exchange of the Company's share on the trading day immediately preceding the time of exercise
        (hereinafter: the “Effective Rate”), multiplied by the number of shares underlying the Option Warrants
        respecting which the exercise notice was given.

         

        And
        between:

        

	 	 	 	 	 
	 	 	 	4.3.1.2	The Exercise Price
    multiplied by the number of shares underlying the Option Warrants respecting which the exercise notice was given.

 

	 	 	 	In
        the event of the cases specified in Sections 13.1-13.4 hereafter, the required adjustments shall be made.

         

        The
        said difference shall constitute the benefit amount stemming for the Offeree at the time of exercise (hereinafter: the
        “Benefit Amount”).

        

	 	 	 	 
	 	 	4.3.2	The Company shall
    allocate to the Offerees, or transfer unto them Shares held, or to be held, by the Company or another company controlled by
    it, a quantity of Shares whose market value at the Stock Exchange on the trading day immediately preceding the time of exercise
    (minus the nominal value of the Company share, inasmuch as actually paid by the Offerees) equaling the Benefit Amount alone.
    A share fraction resulting from the aforesaid calculation shall be rounded up to a complete share. 

 

	 	 	In
        the case of Share allocation according to this Section, the following terms shall apply: the Company shall transform into
        share capital a portion of its profits or of a premium on shares or of any other source included in its equity according
        to its financial statements, up to the rate of the nominal value of the Exercise Shares, all as provided in Section 304
        of the Companies Law, 5759-1999 (the “Companies Law”). If that is not possible, the Offeree shall pay
        only the nominal value of the Exercise Shares. It is hereby clarified that in any case of Share allocation according to
        this Section, the exercise shall be executed in a manner whereby the nominal value of the Shares is paid (or capitalized,
        as the case may be) by the Company or by the Offeree, subject to any law, including the provisions of the Companies Law,
        respecting distribution.

        

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	5.	Vesting
    of the Options, restricted share units and\or Shares in the hands of a trustee

	 	 
	 	The
        Option Warrants, restricted share units and\or restricted shares, shall be allocated to a trustee in accordance with the
        terms of the capital gains via trustee route as provided in Section 12.4 hereafter (the “Trustee”),
        on behalf of the Offerees, following and subject to receipt of all approvals required by law.

         

        The
        allocation date shall be the later date of either the date on which the Board approved allocation of the Option Warrants,
        restricted share units and\or restricted shares to the Offeree (or a later date as determined by the Board) or the date
        of fulfilment of all contingent conditions for the performance of such allocation (including approval by the shareholders
        meeting, to the extent required by law) (the “Allocation Date”).

        

	 	 
	 	 
	6.	The
    exercise right, restriction and manner of exercise of the Option Warrants, restricted share units and restricted shares

 

	 	6.1	All
    Option Warrants, restricted share units or restricted shares allocated to the Offerees shall become exercisable (“matured”)
    over a period as determined by the Board.
	 	 	 
	 	6.2	Unless otherwise
    determined by the Board, each Offeree may exercise, according to the terms of the Plan (including as specified in Section
    9 hereafter) the Option Warrants, in whole or in part, as of the date of “maturity” of each tranche and until
    the lapse of 7 years after the Allocation Date (the “Final Exercise Date”). In case the Final Exercise
    Date occurs on a day which is not a business day in Israeli banks and on the Stock Exchange – the Final Exercise Date
    shall be postponed to the nearest next date which is also a business day of the Stock Exchange.  
	 	 	 
	 	6.3	An Offeree who wishing
    to exercise into Shares the Option Warrants to which they are entitled, according to all terms of the Plan, shall deliver
    to the Company and the Trustee a written notice, signed by them, in the format determined by the Company (the “Exercise
    Notice”). The Exercise Notice shall include, among other things, the identity of the Offeree and the number of Option
    Warrants they seek to exercise. Discretion as to whether or not to exercise and the timing of payment of the Exercise Price
    is given to each and every Offeree and not to the Trustee.
	 	 	 
	 	6.4	The Offeree shall
    pay the Company the consideration owed to the Company for the Exercise Shares allocated to the Offeree according to the Exercise
    Notice in a manner determined by the Company, except in case the Company elects to exercise its right according to Section
    4.3 above.  
	 	 	 
	 	6.5	On the first trading
day after the Company receives the Exercise Notice, complete and signed by the Offeree and after the latter has paid the consideration
as provided in Section 6.3 above (the “Exercise Date”), the   

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	Company shall allocate the Exercise Shares to the Trustee,1
    while, in case the Company elects to exercise its right according to Section 4.3 above, the provisions of said Section
    4.3 shall apply.
	 	 	 
	 	6.6	Option Warrants
    not exercised by the Final Exercise Date (as provided in Section 6.2 above) shall expire, shall not grant any right to compensation
    or indemnification and shall become invalid. 
	 	 	 
	 	6.7	Exercise of the
    restricted share units into Exercise Shares shall be executed as detailed in Section 15.2 hereafter. 
	 	 	 
	 	6.8	Despite
        the aforesaid, it is hereby clarified that according to the Tel Aviv Stock Exchange Ltd. regulations, the exercise
        of Options or restricted share units into Shares shall not be executed on the effective date for the distribution of bonus
        shares, an offering by way of rights, distribution of dividend, share consolidation, share split or equity reduction (any
        one of the foregoing shall be referred to in this Section a “Company Event”), and such exercise shall
        be deferred to the subsequent trading day. Additionally, in case the X day of a Company Event occurs prior to the effective
        date of a Company Event (as these terms are defined in Stock Exchange regulations), an exercise of Options or restricted
        share units into Shares shall not be executed on such X day and the exercise shall be deferred to the subsequent trading
        day.

 

	7.	Rights
    attached to Exercise Shares stemming from the exercise of Option Warrants and restricted share units

 

	 	7.1	The
    Exercise Shares shall bear, immediately upon allocation thereof, equal rights for all intents and purposes, to the ordinary
    shares existing in the Company’s share capital at the time of this Plan, and shall grant, among other things, the same
    rights to receive notices and participate in general meetings of the Company, to receive dividends or any other distribution
    and to receive surplus assets in case of liquidation.  
	 	 	 
	 	7.2	In any event where,
according to the terms of the Plan, an Offeree is entitled to be granted rights and\or bonus shares and\or any other right by
virtue of the Option Warrants and\or restricted share units and\or Exercise Shares (hereinafter: the “Rights”),
and at the effective date for the distribution of such Rights the Option Warrants and\or restricted share units and\or Exercise
Shares are held by the Trustee, the Rights shall be transferred unto the Trustee, who shall withhold tax according to any law,
inasmuch as applicable, and all such Rights shall be allocated to the Trustee on behalf of the Offerees and held by the Trustee
until the lapse of the minimal trust period (as defined in Section 12.4 hereafter) of the Options and\or restricted share units
for which the Rights were allocated, and the terms of the tax route shall apply to such additional Rights. 

 

 

 

1 It is
hereby clarified that, wherever in this Plan reference is made to the granting of Exercise Shares to an Offeree or the Trustee
on their behalf, as the case may be, it signifies the registration of the Shares in favor of the Offeree or Trustee, as the case
may be, with a member of the Stock Exchange, in a manner whereby such Shares are registered in the Company's Shareholders Registry
on the name of the nominee company.

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	7.3	In
        any case where the Company shall distribute a cash dividend and, at the effective date for such dividend distribution,
        the Trustee held Exercise Shares on behalf of any Offeree, the Company shall transfer unto the Trustee dividend amounts
        for the Exercise Shares held by the Trustee as aforesaid for each Offeree, the Trustee shall withhold tax by law, inasmuch
        as required, and thereafter transfer the dividend amounts (after tax withholding) unto the Offeree. Notwithstanding the
        provisions of Section 7.1 above, as long as, according to the terms of the Plan, Exercise Shares are held by the Trustee
        on behalf of the Offerees and have not been transferred to the Offerees, such Shares shall not grant any right to receive
        notices and to participate in general meetings of the Company.

        

	 	 	 

 

	8.	Restrictions
    on execution of actions respecting the Option Warrants, restricted share units, restricted shares and Exercise Shares

 

	 	8.1	Unless
    otherwise determined by the Board, the Option Warrants, restricted share units and restricted shares, as the case may be,
    constitute a personal right which cannot be transferred, assigned, encumbered, whether voluntarily or otherwise (except to
    the inheritors of a deceased Offeree by way of a last will or inheritance laws, provided that they consent to the terms thereof).
    The Option Warrants and restricted share units shall not be listed for trade on the Stock Exchange. The restricted shares
    and the Shares stemming from exercise of the Option Warrants and restricted share units shall be listed for trade on the Stock
    Exchange. 
	 	 	 
	 	8.2	The Option Warrants,
    restricted share units and restricted shares, as the case may be, granted to Offerees who are residents of Israel, shall be
    allocated to the Trustee according to Section 102 of the Income Tax Ordinance. Accordingly, the Option Warrants, restricted
    share units and restricted shares, or the Exercise shares, as the case may be, shall be held by the Trustee, according to
    the provisions of Section 102 of the Income Tax Ordinance, for the duration of the minimal trust period, all as provided in
    Section 12 hereafter.
	 	 	 
	 	 	 
	 	8.3	The Trustee may
    not transfer the Option Warrants, restricted share units and restricted shares, granted according to this Plan to any third
    party, including an Offeree, except in accordance with instructions received from the Company and subject to applicable law.
    
	 	 	 
	 	8.4	The transfer of
    rights to Option Warrants and\or restricted share units and\or restricted shares and\or Exercise Shares according to a last
    will or according to inheritance laws shall be valid and bind the Company only after the Company has been delivered the following
    approvals, signed and certified by a notary:

 

	 	 	[a]	A written
    request for transfer and a copy of a legal document creating and affirming the right of such person to act with respect to
    the estate of the Offeree and which creates or affirms the right of the transferee;

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	[b]	A written consent
    of the transferee to pay any amount respecting the Option Warrants, restricted share units and\or restricted shares in accordance
    with the Plan and consent to pay any required amount pursuant to the provisions of the Plan, as well as consent to comply
    with all provisions of the Plan;
	 	 	 	 
	 	 	[c]	Any other evidence
    required, in the view of the Board, in order to establish the right for the transfer of Option Warrants, restricted share
    units and\or restricted shares and\or Exercise Shares, and the validity of such transfer.  

 

	 	 	The
        Exercise Shares and the restricted shares (subject to the provisions of Section 14 hereafter) are subject to restrictions
        according to the provisions of the Company’s articles of association.

        

 

	9.	Terms
    of the Plan in case of termination of employment relations

 

	 	9.1	In case
    of termination of employment relations due to disability or death - the Offeree (or inheritors or transferee thereof) shall
    be entitled to exercise the matured Option Warrants which have not been exercised into Shares during a period of twelve (12)
    months following the termination of employment relations. 
	 	 	 
	 	9.2	In case of termination
    of employment relations under circumstances which, in the Company’s view, grant it legal right to terminate the employee
    without severance pay, including the perpetration of criminal offenses and breach of trust, all Option Warrants offered to
    the Offeree according to this Plan shall immediately expire at the date of giving notice of termination, including those that
    have matured and which have yet to be exercised in actuality. 
	 	 	 
	 	9.3	In case of termination
    of employment relations and provided that the sum of years the Offeree’s age and period of employment with the Company
    equals or exceeds 75 years, all Option Warrants and\or restricted share units and\or restricted shares allocated thereto which
    have yet to mature by the said date of termination of employment relations, shall become mature, and may be exercised into
    Shares within 12 months after such termination of employment relations. 
	 	 	 
	 	9.4	In case of termination
    of employment relations on any grounds not described in Subsections 9.1-9.3 above, the Offeree shall be entitled to exercise
    only the Option Warrants which have matured until the date of their termination which have yet to be exercised into Shares,
    and which have yet to expire, and these may be exercised within a period of 90 days after such termination date. The remainder
    of Option Warrants shall expire upon the date of employment termination. 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	 
	 	9.5	The Offeree’s
    right to Option Warrants granted them under this Plan or to the exercise thereof shall not end or expire or be accelerated
    solely due to the fact that such Offeree has transferred from the Company to a new position as an employee or officeholder
    of a company controlled by the Company, or vice versa.  
	 	 	 
	 	9.6	The Board may change
    the provisions of this Section 9 (and\or any one thereof) at its absolute discretion.
	 	 	 
	 	9.7	In this Section
    9, the date of termination of employment relations is the end date of the employee-employer relations between the Offeree
    and the Company, or the lapse of the advance notice period (or adaptation period, if any), according to the later. 
	 	 	 
	 	9.8	In case the engagement
    with the Company of an Offeree who served as director in the Company at the time of allocation is terminated, for any reason
    whatsoever, the provisions of Sections 9.1-9.7 above shall apply, mutatis mutandis. For purposes of Section 9.7 –
    the “date of employment relations termination” shall be viewed, as pertains to directors - as the day of termination
    of a director’s term of office, for whatever reason.  
	 	 	 
	 	9.9	The Board may determine
    that, in case of termination of an engagement with a director, in exclusion of circumstances determined by the Board, all
    Option Warrants and\or restricted share units and\or restricted shares allocated thereto which have yet to mature by the said
    date of termination of engagement, shall become mature, and also determine the period during which such Option Warrants and\or
    restricted share units may be exercised into Shares after the date of engagement termination.
	 	 	 
	 	9.10	In the case of termination
    of employment relations with an Offeree in the Company who was granted restricted shares, the provisions of Section 14.7 hereafter
    shall apply.  
	 	 	 
	 	9.11	In
the case of termination of employment relations with an Offeree in the Company who was granted restricted share units, the provisions
of Section 15.4 hereafter shall apply.

 

	10.	Transfer
    of control

 

	 	10.1	In case
    of termination of employment relations, for any reason whatsoever, except in the case specified in Section 9.2 above, during
    a period of 365 days after completion of a transfer of control over the Company, the right of the Offerees to exercise all
    Option Warrants and\or restricted share units allocated them, including those that have yet to “mature”, as the
    case may be, shall be established immediately prior to the date of termination of employment relations as aforesaid, and they
    may exercise them as of such date and until their Exercise Date as provided in Section 6.1 above. Furthermore, in the case
    specified in this Section, the restricted shares shall mature immediately prior to such termination of employment relations.

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	10.2	Subject to any law,
    the Company Board is authorized, at its sole discretion, to determine that all or part of the Option Warrants and\or restricted
    share units and\or restricted shares allocated to the Offerees, including those that have yet to mature, shall mature upon
    the date of transfer of control over the Company. 
	 	 	 
	 	 	“Transfer
        of Control” – including by way of sale of shares (including in return for an exchange of shares), distribution
        of dividend in kind or allocation of shares to a third party.

         

        “Control”
        – for the purposes of this Section – as defined in the Securities Law.

        

 

 

	11.	Restructuring
    or merger
	 	 
	 	In case of merger
    of the Company with or into another company, whether by way of an exchange of shares, purchase in cash or otherwise, or sale
    of all (or the vast majority) of Company assets or activity or its issued share capital or any other occurrence of a similar
    corporate nature and any similar action (all of these jointly: “Restructuring or Merger”) and subject to
    any law, the Board shall determine one of the following alternatives:

 

	 	11.1	Each
    Option and\or restricted share unit shall be replaced by or converted into an option and\or restricted share unit of equal
    value in the new company resulting from the Merger or sale, and the Board may make for such purpose changes in the Exercise
    Price, if and inasmuch as required, all subject to the Board’s discretion; or
	 	 	 
	 	11.2	Each Option and\or
    restricted share unit shall be adopted by the new company so that it may be exercised into a share of the new company, subject
    to adjustments and changes as determined by the Board; or
	 	 	 
	 	11.3	Each Option and\or
    restricted share unit shall be cancelled or returned to the Company, and the Company shall pay the entitled employee a pecuniary
    compensation for the cancellation or return of such Option and\or restricted share unit, provided that the value of the benefit
    entailed in such compensation is no less than the value entailed in such benefit as measured at the time of cancellation or
    return, as the case may be; as well as 
	 	 	 
	 	11.4	Any action and\or
    similar adjustment respecting the Options and\or restricted share units and the terms thereof, to the extent required according
    to its discretion. 
	 	 	 
	 	11.5	Upon completion
    of such Restructuring or Merger, the Options and\or restricted share units shall expire. 
	 	 	 
	 	11.6	Treatment of the
    restricted shares shall be according to the treatment of ordinary Company shares in the case of Restructuring or Merger, subject to the maturity periods of the restricted shares.

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	For
        purposes of this Section, the term “new company” shall refer to the company with which a merger is
        executed, with which a sale transaction is executed or which would come in the stead of the Company following such Restructuring
        or Merger or any similar transaction. For the removal of doubt it is hereby clarified that, in case that control over
        the Company is transferred as a result of a Restructuring or Merger event, the provisions of Section 10 above shall apply.

        

 

	12.	Tax
    implications and allocation to the Trustee with respect to Offerees residing in Israel
	 	Following are the
    details of certain provisions respecting taxation for the allocation of the Options and\or restricted share units and\or restricted
    shares and the exercise thereof:

 

	 	12.1	Any
    tax liability for the allocation of the Options and\or restricted share units and\or restricted shares to the Offerees (including
    income tax, capital gains tax, national insurance and health tax) and any other compulsory payment applicable due to the granting
    of the Option Warrants and\or restricted share units and\or restricted shares, the exercise thereof or the sale of Exercise
    Shares and\or restricted share units and\or restricted shares and\or released shares, shall apply to the Offerees. The Trustee
    and the Company may withhold any amount that must be withheld by law. 
	 	 	 
	 	12.2	The Option Warrants
    and\or restricted share units and\or restricted shares allocated to Offerees in Israel shall be subject to the provisions
    of Section 102 of the Income Tax Ordinance and all Regulations promulgated by virtue thereof (jointly, above and below: “Section
    102”). The Company has elected that the allocation of Offerees who are residents of Israel shall be via a trustee,
    in the capital gains route. 
	 	 	 
	 	12.3	The provisions of
    Section 102 respecting the capital gains route provide, among other things, as of the time of this Plan, as follows:

 

	 	 	·       The Options and\or restricted share units and\or restricted shares and the Shares received by the exercise of the Options
        and\or restricted share units shall be held by a trustee for a period of no less than two years after the Allocation Date;

        

        ·      
        The income obtained by the Offeree from the allocation of the Options and\or restricted share units and\or restricted
        shares shall not be taxable at the time of allocation;

        

        ·     
The tax liability in the hands of the employee respecting the “benefit value portion” at the Allocation Date of the
Options and\or restricted share units and\or restricted shares shall be calculated according to the tax rate applying to the employee.
For this purpose, the “benefit value portion” shall be calculated according to the average value of the Company share
at the Stock Exchange in the 30 trading days preceding the Allocation Date of the Options and\or restricted share units and\or
restricted shares, after
deduction of the cost of exercising the Options and\or restricted share units and\or restricted shares, as the case may be;

        

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	

·      
The remaining benefit value shall be liable to tax at the rate applying to capital gains according to Section 102 (currently 25%);

 

·      
In the allocation of Options and\or restricted share units and\or restricted shares as aforesaid, the company employing the Offeree
may enter a salary expense at the amount of the employee’s income, to which tax shall apply according to the marginal tax
rate. With respect to the employee’s benefit value subject to the tax rate applying to capital gains according to Section
102 (currently 25%), the company may not enter an expense for tax purposes.

 

The aforesaid should not be viewed as taxation
advice, and each Offeree should examine the taxation status applicable to thereto and decide whether and how to act according to
their specific personal circumstances.

	 	 	 
	 	12.4	Accordingly:

         

        ·       Allocation to Offerees shall not take place except after the requirements of the capital gains route provided in Section
        102 of the Income Tax Ordinance have been met.

         

        ·   
                    Prior to the allocation of the Options and\or restricted share units and\or restricted shares to
        the Offerees, the Company         shall engage with a trustee (the “Trustee”), who shall hold the Option
        Warrants and\or restricted share         units and\or restricted shares in trust on behalf of the Offerees until exercise of
        the Option Warrants and\or restricted         share units (or the expiration thereof, as the case may be), or until the lapse
        of the restriction of the restricted shares,         as the case may be, and shall also hold the Exercise Shares received by
        the exercise of the Option Warrants and\or restricted         share units as well as the restricted shares until the lapse of
        at least 24 months after the Allocation Date (the “Minimal         Trust Period”).

        

	 	 	 
	 	12.5	Notwithstanding
    any other provision in this Section, it is clarified that the transfer of Exercise Shares and\or restricted shares and\or
    released shares from the Trustee unto an Israeli Offeree or from an Israeli Offeree to any third party (including the sale
    thereof) shall only be possible after the lapse of the Minimal Trust Period and payment of the applicable tax. Despite the
    aforesaid, a transfer of Exercise Shares and\or restricted shares and\or the released shares may be allowed even prior to
    the lapse of the Minimal Trust Period, after payment or withholding of tax inasmuch as required, and shall be executed in
    accordance with the provisions, terms and arrangements as agreed upon between the Company and the Trustee and subject to the
    provisions of Section 102 or the provisions of any law and to any agreement with tax authorities. 
	 	 	 
	 	12.6	Despite all of the
    above and below statements, Offerees according to this Plan may also include Offerees whose place of residence and employment
    is outside Israel, and therefore the provisions of Section 102 may be 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	 
	 	 	inapplicable to them. The Options and\or restricted
    share units and\or restricted shares for such Offerees shall be vested at the Allocation date in the hands of the Trustee,
    and exercise of Options and\or restricted share units shall be done through the Trustee in the same manner provided in this
    Plan without the application of restrictions under Section 102.

 

	 	 
	 	The
        contents of this Section 12 does not presume to be an authorized interpretation of legal provisions relating to the taxes
        which may apply in connection with the granting of offered Options, restricted share units and restricted shares to the
        Offerees, and does not substitute legal and professional advice in the matter. Each of the Offerees (including Offerees
        as specified in Section 12.6 above) should consider the various taxation implications and aspects and consult their professional
        advisors, including legal and taxation advice, taking into account their particular circumstances.

        

 

 

	13.	Adjustments
    due to distribution of bonus shares and\or allocation by way of rights and\or split or consolidation of capital and\or distribution
    of dividend

 

	 	13.1	In case
    the Company distributes bonus shares after the allocation of Option Warrants or restricted share units according to this Plan,
    then the number of Exercise Shares for the exercise of Option Warrants or restricted share units yet to be exercised into
    Shares and yet to expire until the effective date respecting the right to receive bonus shares, shall be increased by way
    of adding the appropriate number, without additional payment, of shares to which the Offeree was entitled as bonus shares
    had they exercised the Options or restricted share units which have yet to be exercised by the effective date respecting the
    right to receive bonus shares, immediately prior to the effective date respecting the distribution of such bonus shares. It
    is hereby clarified that the Exercise Price of the Options or restricted share units (insofar as determined) shall not change
    in the case of distribution of bonus shares; however, the payment for each share shall be reduced accordingly, by virtue of
    the increase in the number of Shares stemming from each Option or restricted share unit. 
	 	 	 
	 	13.2	In case the Company
    offers its shareholders securities of any kind by way of issuance of rights, the Exercise Price of the Option Warrants or
    restricted share units (insofar as determined) shall not be adjusted; however, the number or Exercise shares for the exercise
    of Option Warrants or restricted share units yet unexercised at the effective date respecting the right to acquire rights
    in the issuance of rights, shall be adjusted according to the benefit component entailed in the rights, which shall be calculated
    according to Stock Exchange guidelines, as shall be in force at the effective date. 
	 	 	 
	 	13.3	In any case of split
    or consolidation of the Company’s share capital, or any corporate capital event of a substantially similar nature, the
    Company shall execute the changes or adjustments required in order to prevent dilution or expansion of the rights of an Offeree
    within the framework of this Plan as pertain to the number or class of Exercise Shares underlying  

 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	the Options or restricted
    share units yet unexercised by the Offeree and\or as pertain to the Exercise Price of each Option or restricted share unit
    (insofar as determined).
	 	 	 
	 	13.4	In case the Company
    distributes a cash dividend, the effective date for the distribution thereof shall occur after the allocation of Option Warrants
    according to this Plan, then on the X day the Exercise Price of Option Warrants yet unexercised and yet unexpired until that
    time shall be reduced by the amount of the dividend per share (gross) according to its ILS amount. For the removal of doubt,
    the Exercise Price shall not in any event be reduced below the nominal value per share. It is hereby clarified that the provisions
    of this Section 13.4 shall not apply to Offerees who are residents of the United States and\or subjected to U.S. tax laws.
    Adjustments due to the distribution of a dividend distributed for restricted shares shall be made according to Section 14.5
    hereafter.
	 	 	 
	 	13.5	In any case where,
    as a result of the adjustments described in this Section, the Company is required to allocate share fractions, the Company
    shall not allocate share fractions as aforesaid, and the number of Shares allocated to an Offeree shall be rounded up to the
    nearest complete share. 
	 	 	 
	 	13.6	It
        is hereby clarified that an Offeree’s right to additional Exercise Shares as a result of adjustments according to
        the provisions of this Section 13 shall only apply at the time of exercise of the Option Warrants or restricted share
        units.

        

 

 

	14.	Shares
    and restricted shares

 

	 	14.1	Subject
    to the sole discretion of the Board, the Board may grant, according to this Plan, Shares and\or restricted shares, as defined
    hereafter, instead of or in addition to any grant of Options. The Shares and\or restricted shares shall be granted in consideration
    of an amount equal to the nominal value of the Company shares. Despite the aforesaid, the Board may determine at its sole
    discretion, that the Offerees shall not pay the nominal value of the Shares and\or restricted shares upon the granting thereof
    and that the Company shall capitalize a portion of its profits into share capital or take any other action permitted by law
    in the case of issuance of shares for an amount lower than their nominal value, all according to applicable law, including
    in accordance with Section 304 of the Companies Law.  
	 	 	 
	 	14.2	Restricted shares
    are shares subject to restrictions respecting transferability and which may not be transferred or sold until the lapse of
    their maturity period and the lifting of restrictions applying thereto (the “Restricted Shares”). Upon
    the lapse of the maturity period of each Restricted Share, and fulfilment of the other conditions for its maturity, insofar
    as applicable, the restrictions imposed on such share shall be automatically lifted and it shall become an ordinary Company
    share (the “Released Shares”).
	 	 	 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	14.3	The Board may grant
    Restricted Shares contingent upon performance, according to parameters as determined by the Board. 
	 	 	 
	 	14.4	The Restricted Shares
    shall bear, immediately upon allocation, rights equal, for all intents and purposes, to the ordinary shares existing in the
    Company’s share capital at the time of this Plan, and grant, among other things, the same rights to receive notice and
    participate in the general meetings of the Company (subject to the provisions of Section 14.6 hereafter), to receive dividends
    (subject to the provisions of Section 14.5 hereafter) or any other distribution and to receive surplus assets in liquidation.
    
	 	 	 
	 	14.5	Notwithstanding
    the aforesaid, a dividend distributed for Restricted Shares which have yet to mature shall be held by the Trustee pending
    maturity of the Restricted Shares for which the dividend was distributed, which shall thereafter be transferred to the Offeree,
    after tax has been lawfully withheld by the Trustee. A dividend distributed for matured Restricted Shares shall be transferred
    directly to the Offeree, after tax has been lawfully withheld by the Trustee.
	 	 	 
	 	14.6	Voting rights
    – as long as the Restricted Shares have not matured according to the provisions of this Plan and the restrictions
    imposed thereupon are not lifted, voting rights respecting them shall be possessed by the Trustee alone. The Trustee shall
    not be obliged to exercise his voting right. After the Shares have matured, the provisions of Section 7 of this Plan shall
    apply. 
	 	 	 
	 	14.7	Termination
    of employment relations

 

	 	 	14.7.1	Unless
    otherwise resolved by the Board, upon termination of employment relations, all Restricted Shares allocated to an Offeree according
    to this Plan and whose maturity period has yet to lapse shall be returned to the Company without consideration. In addition,
    the dividend distributed for such immature Restricted Shares and held by the Trustee shall also be returned to the Company.
    The matured Restricted Shares shall be transferred to the Offeree (and not returned to the Company), and accordingly, the
    dividend distributed for them shall be transferred to the Offeree. Despite the aforesaid, Restricted Shares whose maturity
    is contingent on performance conditions without an undertaking of continued employment or service with the Company, as the
    case may be, shall not be returned to the Company upon termination of employment relations, but rather at the time of failure
    to meet such performance conditions.   
	 	 	 	 
	 	 	14.7.2	In case of termination
    of employment relations under circumstances which, in the Company’s view, grant it legal right to terminate the employee’s
    employment without severance pay, including the perpetration of criminal offenses and breach of trust, the matured Restricted
    Shares which have not been sold or transferred and the dividend for them shall also be returned to the Company immediately
    and without consideration.

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	14.7.3	The
        provisions of Section 9.3 relating to the maturity acceleration of Restricted Shares shall apply, as the case may be,
        also to Section 14.

         

 

	15.	Restricted
    share units

 

	 	15.1	Subject
    to the sole discretion of the Board, the Board may grant, according to this Plan, restricted share units, as defined hereafter
    (“Restricted Share Units”), instead of or in addition to any grant of Options. At the time of exercise
    the Offerees shall pay an amount equal to the nominal value of Company shares stemming from such exercise. Despite the aforesaid,
    the Board may determine at its sole discretion, that the Offerees shall not pay the nominal value of the Restricted Share
    Units at the time of exercise thereof and that the Company shall capitalize a portion of its profits into share capital or
    take any other action permitted by law in the case of issuance of shares for an amount lower than their nominal value, all
    according to applicable law, including in accordance with Section 304 of the Companies Law.  
	 	 	 
	 	15.2	A Restricted Share
    Unit is a right to receive a Company share, after the lapse of the maturity period of the Restricted Share Unit and the lifting
    of the restrictions applying thereto, without requiring any additional action on the part of the Offeree (without giving an
    Exercise Notice). Upon the lapse of the maturity period of each Restricted Share Unit and the fulfilment of the additional
    conditions for such maturity, if applicable, such Restricted Share Unit shall be automatically exercised and become a Share
    transferrable and released of all restrictions, subject to payment of its nominal value to the Company by the Offeree (“Restricted
    Share Unit”).   
	 	 	 
	 	15.3	The Board may grant
    Restricted Share Units contingent on performance, according to parameters as determined by the Board.
	 	 	 
	 	15.4	Termination
    of employment relations

 

	 	 	15.4.1	Unless
    otherwise resolved by the Board, in case of termination of employment relations between the Offeree and the Company, for any
    reason whatsoever (including in case of death or disability), all Restricted Share Units granted to an Offeree and whose maturity
    period has yet to lapse until the time of termination of employment relations, shall immediately expire and shall no longer
    be legally valid. Despite the aforesaid, Restricted Share Units whose maturity is contingent on performance conditions without
    an undertaking of continued employment or service with the Company, as the case may be, shall not expire upon termination
    of employment relations, but rather at the time of failure to meet such performance conditions. 

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	 	15.4.2	In case of termination
    of employment relations under circumstances which, in the Company’s view, grant it legal right to terminate the employee’s
    employment without severance pay, including the perpetration of criminal offenses and breach of trust, Exercise Shares stemming
    from the exercise of the Restricted Share Units and which have not been sold or transferred and the dividend for them shall
    also be returned to the Company immediately and without consideration.
	 	 	 	 
	 	 	15.4.3	The
        provisions of Section 9.3 relating to the maturity acceleration of Restricted Shares shall apply, as the case may be,
        also to Section 15.

        

 

	16.	Undertakings
    of the Offerees

 

	 	16.1	Upon
        allocation of the Option Warrants, Restricted Share Units or Restricted Shares, the Company shall deliver unto each Offeree
        a letter of granting respecting the number of Option Warrants, Restricted Share Units or Restricted Shares which such
        Offeree is entitled to receive within the framework of this Plan. Upon receipt of the Option Warrants, Restricted Share
        Units or Restricted Shares according to the Plan, the Offeree shall undertake and declare as follows: (1) that they consent
        to and approve that they have received and read the Plan and the letter of granting and that they agree to all the terms
        thereof, including and without derogating from the generality of the aforesaid, their consent to bear all tax liabilities
        and other compulsory payments resulting from the allocation of the Option Warrants, Restricted Share Units or Restricted
        Shares, the exercise thereof or the sale of Exercise Shares and\or Released Shares, as the case may be, and including
        their consent and authorization to the Company to withhold any applicable tax as aforesaid (including, if required –
        from the number of Option Warrants, Restricted Share Units or Restricted Shares and\or Exercise Shares and\or Released
        Shares, as the case may be); (2) that they undertake to comply with all the terms specified in Section 102 (including
        provisions pertaining to the tax route), the Rules of Section 102, the Plan, the letter of granting and the Letter of
        Trusteeship; (3) that, subject to the provisions and terms of Section 102 and the Rules, the Offeree undertakes not to
        sell or remove the Exercise Shares or Restricted Shares and\or Released Shares from trusteeship prior to the lapse of
        the Minimal Trust Period; and (4) that the Offeree undertakes to comply with the procedure for the exercise of the Option
        Warrants, Restricted Share Units or Restricted Shares and for the sale of Exercise Shares or Restricted Shares and\or
        Released Shares, as the case may be, as agreed between the Company and the Trustee.

        

 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	17.	Governing
    law

 

	 	The
        Plan and all documents attached thereto, delivered or signed by the Company or companies under its control with respect
        to the Plan, shall be interpreted, administered and subjected to the laws of the State of Israel.

         

        The
        allocation of Options, Restricted Share Units and Restricted Shares according to this Plan is subject to receipt of the
        approvals and permits required by law.

        

 

	18.	Powers
    of the Company Board
	 	 
	 	The
        Company Board is authorized to interpret the provisions of the Plan and to issue any complementary or clarifying provision
        with respect to the execution of the Plan, insofar as required according to the Board's discretion.

         

        Without
        derogating from the generality of the aforesaid, it is hereby clarified that, subject to any law,2 the Company
        Board is authorized, at its sole discretion, to exercise all powers required for the purpose of administering the Plan,
        including determining the identity of the Offerees, determining the number of Options, Restricted Share Units and Restricted
        Shares allocated to each Offeree, determining the allocation dates, determining Exercise Price, determining the maturity
        period, expiry date of Option Warrants, conditions for the lifting of restrictions applying to the Restricted Shares,
        and also, in cases as the Board sees fit – to accelerate the maturity dates of the Option Warrants, Restricted Share
        Units and Restricted Shares which have yet to mature (in whole or in part), with respect to all Offerees or any part thereof.
        The Board is also authorized to make any other decision required for or relating to the Plan, whether or not mentioned
        in this Plan.

         

        Furthermore,
        subject to any law, the Company Board is authorized to amend, at its sole discretion, the provisions of the Plan (and
        the documents attached thereto), provided that any such amendment of a provision of the Plan does not contravene the provisions
        of Section 102 and does not violate the rights of the Offerees according to the Plan without first obtaining the consent
        of the Offerees who, at the time of such proposed amendment, have been granted Options, Restricted Share Units which have
        yet to be exercised and have yet to expire according to the Plan and, respecting Restricted Shares, the restriction period
        thereof has yet to lapse.

         

        The
        Board may delegate to its Compensation and Human Resources Committee its powers to designate to specific Offerees (who
        are not officeholders) the Options, Restricted Share Units and Restricted Shares allocated to the Trustee, all in accordance
        with and subject to the provisions of Section 288(b)(1) of the Companies Law and applicable law.

        

 

 

	19.	Duration
    of the Plan and amendments thereto
	 	 
	 	The
Plan shall expire upon the earliest of: (1) the lapse of 10 years after the date the Plan was adopted by the Board (6 August 2014),
or (2) the expiration of all Options, Restricted Share Units allocated according to the Plan due to Restructuring or Merger, or
as a result of any other event. However, all Options, 

        

 

 

 

2 The provisions
of this Section do not derogate from the powers of the Compensation and Human Resources Committee by law and according to Company
procedures. 

    

    
Convenience translation – the binding version is the Hebrew version

    

 

	 	Restricted Share Units allocated according
to the Plan and yet to be exercised in the case specified in Paragraph (1) above shall remain in effect according to the provisions
of the Plan, and all instructions in the Plan shall continue to apply to them.

 

The Board may, from time to time, terminate or alter this Plan
in any way it desires and within that framework, update the maturity periods and exercise dates as it deems fit, as well as resolve
any question of policy, efficiency, interpretation and implementation which may arise following the execution of the Plan.

 

	20.	No
    undertaking to continue employment
	 	 
	 	The
        granting of Options, Restricted Share Units and Restricted Shares to the Offerees according to the Plan shall not be interpreted
        as imposing any duty on the Company and\or companies under its control to continue the employment of any Offeree and\or
        as limiting them in the termination of employment of any Offeree and\or as granting an Offeree a right to continue being
        employed.

        

 

	21.	Reserved
    shares
	 	 
	 	The
        Company shall take care to maintain, within its registered capital, a sufficient number of shares for the purpose of allocating
        Options, Restricted Share Units and Restricted Shares according to this Plan.

         

        The
        Board may determine prior to the allocation of the Option Warrants, Restricted Share Units or Restricted Shares according
        to this Plan that, subject to any law, the Shares stemming from the exercise of the Option Warrants or Restricted Share
        Units and also the Restricted Shares allocated, shall be made out of treasury shares (as defined in Section 308 of the
        Companies Law) held by the Company.

        

 

	22.	Notices
    respecting the Plan
	 	 
	 	All notices given
    by the Company to the Offerees shall be given via a written notice delivered to each Offeree at their place of employment
    or at their address as registered with the Company or at their email address.srlpcarboupaedgar

Execution Copy {W5670291.3} UNIT PURCHASE AGREEMENT THIS UNIT PURCHASE AGREEMENT is made as of March 13, 2017 by and between Sprague Resources, LP, a Delaware limited partnership (the “Parent”), and Carbo Industries, Inc., a New York corporation (the “Investor”).  RECITALS A. The Parent is the parent of Sprague Operating Resources, LLC, a Delaware limited liability company (“Buyer”), which has entered into an Asset Purchase Agreement, of even date herewith, by and among Buyer, Investor and the other Seller named therein (the “Asset Purchase Agreement”).  Capitalized terms used in this Agreement have the meanings ascribed to them in the Asset Purchase Agreement. B. The Parent has agreed to issue a number of its common units representing limited partnership interests (the “Common Units”) determined as set forth herein in partial payment of the Purchase Price under the Asset Purchase Agreement.  The Common Units issued pursuant to this Agreement are referred to as the “Units”. C. The Parent has also agreed to grant to the Investor certain piggyback registration rights with respect to the Units, on the terms set forth herein. The parties hereby agree as follows: 1. Purchase and Sale of Units. 1.1 Sale and Issuance of Units. Subject to the terms and conditions of this Agreement, in consideration of the closing of the transactions contemplated by the Asset Purchase Agreement, the Parent agrees to issue to the Investor at the Closing, and the Investor agrees to accept, that number of Units as is equal to (a) (i) $30,000,000 divided by (ii) the volume weighted average closing price of the Common Units as of 4:00 p.m. on the New York Stock Exchange for the ten (10) trading days ending on the date of the announcement by the Parent of the execution of the Asset Purchase Agreement and the ten (10) trading days following the announcement by the Parent of the execution of the Asset Purchase Agreement, plus (b) an additional number of Units equal to one and one half percent (1.5%) of the number of Units determined in accordance with clause (a) of this Section 1.1. 1.2 Closing; Delivery. (a) The issuance of the Units shall take place simultaneously with, and at the same time and in the same manner as, the Closing on the Closing Date (as such terms are defined in the Asset Purchase Agreement) (which time and place are designated as the “Closing”). (b) At the Closing, the Parent shall deliver to the Investor the Units in book entry form through the facilities of the Depositary Trust Corporation. Exhibit 10.1

 

 {W5670291.3} 2 1.3 Defined Terms Used in this Agreement.  In addition to the terms defined above and throughout this Agreement, the following terms used in this Agreement shall be construed to have the meanings set forth or referenced below. (a) “Affiliate” means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, “controlling,” “controlled by” and “under common control with”) means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. (b) “Asset Purchase Agreement” has the meaning set forth in the recitals to this Agreement. (c) “Business Day” means any day except Saturday, Sunday or any other day on which commercial banks located in the State of New York are authorized or required by Law to be closed for business. (d) “Buyer” has the meaning set forth in the recitals to this Agreement. (e) “Closing” has the meaning set forth in Section 1.2. (f) “Commission” means the United States Securities and Exchange Commission. (g) “Common Units” has the meaning set forth in the recitals to this Agreement. (h) “Confidential Information” means any confidential information provided to the Investor regarding the Parent and its Affiliates or any fact relating to discussions or negotiations with the Parent in connection with the Transaction Documents. (i) “Credit Facility” means that certain Credit Agreement dated December 9, 2014 among Sprague Operating Resources LLC, the several lenders parties thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as amended, restated and/or supplemented from time to time. (j) “Damages” means any loss, damage, claim or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Parent, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or 

 

 {W5670291.3} 3 alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law. (k) “Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act. (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder. (m) “Excluded Registration” means (i) a registration relating to the sale of securities to employees of the Parent or an Affiliate pursuant to an equity option, purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Units being registered are Common Units issuable upon conversion of debt securities that are also being registered. (n) “GAAP” has the meaning set forth in Section 2.8. (o) “General Partner” means Sprague Resources GP LLC, a Delaware limited liability company. (p) “Governmental Authority” means, with respect to a particular Person, any country, state, county, city and political subdivision in which such Person or such Person’s Property is located or which exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them (including the Internal Revenue Service and any foreign, state or local tax authorities) and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. (q) “Investor” has the meaning set forth in the introductory paragraph to this Agreement. (r) “Knowledge,” including the phrase “to the knowledge of the Parent,” or similar phrases, shall mean the actual knowledge of David Glendon and Gary Rinaldi. (s) “Law” means any applicable federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule, rule of common law or regulation promulgated by a Governmental Authority. (t) “Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including, the lien or security interest arising from a mortgage, encumbrance, pledge, 

 

 {W5670291.3} 4 security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. (u) “Material Adverse Effect” has the meaning set forth in Section 2.1. (v) “Material Agreement” has the meaning set forth in Section 2.3. (w) “NYSE” means the New York Stock Exchange. (x) “Parent” has the meaning set forth in the introductory paragraph to this Agreement. (y) “Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of Sprague Resources LP dated October 30, 2013. (z) “Person” means any individual, corporation, partnership, trust, limited liability Parent, association or other entity. (aa) “Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible (including intellectual property rights). (bb) “Registrable Securities” means (i) the Units and (ii) any Common Units issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the Units referenced in clause (i); excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 7.2, and excluding any Units for which registration rights have terminated pursuant to Section 4.2(h) of this Agreement. (cc) “Required Approvals” has the meaning set forth in Section 2.4. (dd) “SEC Reports” has the meaning set forth in Section 2.8. (ee) “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. (ff) “Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for the Investor. (gg) “Subordinated Units” has the meaning specified in the Partnership Agreement. (hh) “Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other entity of which an aggregate of more 

 

 {W5670291.3} 5 than 50% of the outstanding voting equity is directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person. (ii) “Transaction Documents” means this Agreement and the Asset Purchase Agreement. (jj) “Units” has the meaning set forth in the recitals to this Agreement. 2. Representations and Warranties of the Parent.  The Parent hereby represents and warrants to the Investor that, except as set forth in the SEC Reports, which exceptions shall be deemed to be part of the representations and warranties made hereunder, the following representations are true and complete as of the date hereof and as of the date of the Closing, except as otherwise indicated.  The Disclosure Schedule shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 2, and the disclosures in any section or subsection of the Disclosure Schedule shall qualify other sections and subsections in this Section 2 to the extent it is readily apparent from a reading of the disclosure that such disclosure is applicable to such other sections and subsections. 2.1 Organization and Qualification. The Parent and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Parent nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Parent and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or financial condition of the Parent and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Parent’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”).    2.2 Authorization; Enforcement. The Parent has the requisite limited partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder, as applicable. The execution and delivery of this Agreement and the other Transaction Documents by the Parent and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Parent and no further action is required by the Parent, the General Partner or the holders of the Parent’s Common Units in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Parent and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation 

 

 {W5670291.3} 6 of the Parent enforceable against the Parent in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law or public policy.  2.3 No Conflicts. The execution, delivery and performance by the Parent of this Agreement, the issuance and sale of the Units and the consummation by it of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Parent’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Parent or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Parent or Subsidiary debt or otherwise) or other understanding to which the Parent or any Subsidiary is a party or by which any property or asset of the Parent or any Subsidiary is bound or affected and which is filed as an exhibit to the Parent’s Annual Report on Form 10-K for the year ended December 31, 2015 or Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016 or September 30, 2016 (a “Material Agreement”), or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Parent or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Parent or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to result in a Material Adverse Effect.  2.4 Filings, Consents and Approvals. The Parent is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Parent of this Agreement, other than: (i) any approvals required by the Commission in connection with any registration statement filed in connection with the registration rights granted hereunder, (ii) any approvals required by the New York Stock Exchange with respect to the issuance and sale of the Units or the listing of the Units thereon, and (iii) the filing of Form D with the Commission (if the Parent elects to rely on Rule 506 of Regulation D under the Securities Act) and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).  2.5 Issuance of the Units. The Units and the limited partner interests represented thereby will be, at the Closing, duly authorized by Parent in accordance with the Partnership Agreement and, when issued by the Parent and paid for in accordance with this Agreement, will be duly and validly issued, fully paid (to the extent required under the Partnership Agreement), non-assessable (except as such non-assessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act), and will be 

 

 {W5670291.3} 7 free and clear of all Liens and restrictions on transfer, other than (i) restrictions on transfer under the Partnership Agreement and under applicable state and federal securities Laws, (ii) such Liens as are created by the Investor, and (iii) such Liens as arise under the Partnership Agreement or the Delaware LP Act.  2.6 Capitalization.  As of November 1, 2016, the issued and outstanding limited partnership interests of Parent consist of 11,241,851 Common Units and 10,071,970 Subordinated Units, which are the only limited partnership interests of the Parent issued and outstanding.  All outstanding Common Units and Subordinated Units, together with the limited partnership interests represented thereby, have been duly authorized and validly issued in accordance with the Partnership Agreement and are fully paid (to the extent required under the Partnership Agreement), and non-assessable (except as such non-assessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).    2.7  Subsidiaries. All of the direct and indirect subsidiaries of the Parent are set forth in the SEC Reports. The Parent owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens (other than the Liens created pursuant to the Credit Facility), and all of the issued and outstanding shares of capital stock or units of membership interest of each Subsidiary have been duly authorized and validly issued and are fully paid, non-assessable (except as such non-assessability may be affected by matters described in Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act, in the case of Delaware limited liability companies), and free of preemptive and similar rights to subscribe for, or purchase, such securities.    2.8 SEC Reports; Financial Statements. The Parent has filed all reports, schedules, forms, statements and other documents required to be filed by the Parent under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Parent was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Report prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Parent included in the SEC Reports complied in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in all material respects in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Parent and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and 

 

 {W5670291.3} 8 cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments.  2.9 Material Changes. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, there has been no event, occurrence or development specific to the Parent, any Subsidiary or any of their respective businesses or assets that has had or that would reasonably be expected to result in a Material Adverse Effect.  For the avoidance of doubt, the representation and warranty set forth in this Section 2.9 shall not apply to any event, occurrence or development affecting the economy as a whole or the industries in which the Parent or any Subsidiary operate.  2.10 Litigation. Except as disclosed in the SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Parent, threatened, against or affecting the Parent, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of this Agreement or the Units or (ii) would, if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect.   2.11 Compliance. Except as disclosed in the SEC Reports, neither the Parent nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Parent or any Subsidiary under), nor has the Parent or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any Material Agreement, (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not reasonably be expected to result in a Material Adverse Effect.  2.12 Certain Fees. Except as set forth in the Asset Purchase Agreement, no brokerage or finder’s fees or commissions are or will be payable by the Parent or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.  2.13 Private Placement. Assuming the accuracy of the Investor’s representations and warranties set forth in this Agreement, no registration under the Securities Act is required for the offer and sale of the Units by the Parent to the Investor as contemplated hereby. 

 

 {W5670291.3} 9  2.14 Investment Company. The Parent is not, and is not an Affiliate of, and immediately after the issuance of the Units, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.   2.15 Listing and Maintenance Requirements. The Parent’s Common Units are registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Parent has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of such units under the Exchange Act nor has the Parent received any notification that the Commission is contemplating terminating such registration. The Parent has not, in the 12 months preceding the date hereof, received notice from the NYSE to the effect that the Parent is not in compliance with the listing or maintenance requirements thereof. The Parent is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements. The Units are currently eligible for electronic transfer through the American Stock Transfer & Trust Company and the Parent is current in payment of fees thereto in connection with such electronic transfer.  3. Representations and Warranties of the Investor. The Investor hereby represents and warrants as of the date hereof and as of the Closing to the Parent as follows (unless such representation or warranty is as of a date otherwise specified): 3.1 Organization; Authority. The Investor is an entity duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation with full right, corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement and performance by the Investor of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Investor. This Agreement has been duly executed by the Investor, and when delivered by the Investor in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Investor, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.  3.2 No Conflicts. The execution, delivery and performance by the Investor of this Agreement, the issuance and sale of the Units and the consummation by it of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Investor’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Investor, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing an Investor debt or otherwise) or other 

 

 {W5670291.3} 10 understanding to which the Investor is a party or by which any property or asset of the Investor is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Investor is subject (including federal and state securities laws and regulations), or by which any property or asset of the Investor is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to result in a Material Adverse Effect.  3.3 Understandings or Arrangements. The Investor understands that the Units are “restricted securities” and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Units as principal for its own account and not with a view to or for distributing or reselling such Units or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Units in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Units in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting the Investor’s right to sell the Units pursuant to an effective registration statement or otherwise in compliance with applicable federal and state securities laws).  3.4 Unregistered Securities.  (a) Accredited Investor Status; Sophisticated Investor. The Investor is an “accredited investor” within the meaning of Rule 501 under the Securities Act and is able to bear the risk of its investment in the Units. The Investor has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the purchase of the Units.  (b) Information. The Investor has been furnished with materials relating to the business, finances and operations of the Parent and its Subsidiaries and relating to the offer and sale of the Units that have been requested by the Investor. The Investor has been afforded the opportunity to ask questions of the Parent and its Subsidiaries. The Investor understands and acknowledges that its purchase of the Units involves a high degree of risk and uncertainty. The Investor has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its investment in the Units.  (c) Investor Representation. The Investor is purchasing the Units for its own account and not with a view to distribution in violation of any securities Laws. The Investor has been advised and understands and acknowledges that none of the Units have been registered under the Securities Act or under the “blue sky” Laws of any jurisdiction and may, subject to the provisions hereof, be resold only if registered pursuant to the provisions of the Securities Act (or if eligible, pursuant to the provisions of Rule 144 promulgated under the Securities Act or pursuant to another available exemption from the registration requirements of the Securities Act). The Investor has been advised of and is 

 

 {W5670291.3} 11 aware of the provisions of Rule 144 promulgated under the Securities Act. The Investor acknowledges and understands that the Parent is relying upon, among other things, the representations and warranties of the Investor in this Agreement in concluding that the offer and sale of the Units hereunder will be exempt from the registration requirements of the Securities Act.  (d) Legend. The Investor understands and acknowledges that, until such time as the Units have been registered pursuant to the provisions of the Securities Act, or the Units are eligible for resale, subject to the provisions hereof, pursuant to Rule 144 promulgated under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Units will bear the following restrictive legend:   “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER AND, IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT OR THE ISSUER HAS RECEIVED DOCUMENTATION REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER SUCH ACT. THIS SECURITY IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THE FIRST AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF SPRAGUE RESOURCES LP (AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME), A COPY OF WHICH MAY BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICES.” 3.5 Parent Information. The Investor acknowledges and agrees that the Parent has provided or made available to the Investor (through EDGAR, the Parent’s website or otherwise) all SEC Reports.  3.6 Certain Fees. Except as set forth in Section 3.6 of the Disclosure Schedules, no brokerage or finder’s fees or commissions are or will be payable by the Investor to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement.  Neither the Parent nor any of its Subsidiaries shall have any obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.  4. Covenants. 4.1. Public Disclosure; Confidentiality.  (a) Notwithstanding anything to the contrary contained herein, except as may be required to comply with the requirements of any applicable Law, the Investor shall not, 

 

 {W5670291.3} 12 and the Investor will cause its respective Affiliates not to, from and after the date hereof, issue any press release or other public communication in respect of this Agreement or otherwise disclose the identity of, or any other information concerning, the other parties without (i) the prior written approval of the Parent (which approval shall not be unreasonably withheld, conditioned or delayed by any party) and (ii) providing the Parent a reasonable opportunity to review and comment on such disclosure (with such comments being incorporated or reflected, to the extent reasonable, in any such disclosure).  (b) The Investor agrees that it will keep confidential and will not disclose, divulge or use for any purpose, other than to monitor its investment in the Parent, any Confidential Information obtained from the Parent and its Subsidiaries pursuant to the terms of this Agreement.  4.2 Piggyback Registration Rights.  (a) Registration Rights.  If the Parent proposes to register any of its Common Units under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration), the Parent shall give the Investor notice of such registration as promptly as practicable.  Upon the request of the Investor given within ten (10) days after such notice is given by the Parent, the Parent shall, subject to the provisions of Section 4.2(b), cause to be registered all of the Registrable Securities that the Investor has requested to be included in such registration.  The Parent shall have the right to terminate or withdraw any registration initiated by it under this Section 4.2(a) before the effective date of such registration, whether or not the Investor has elected to include Registrable Securities in such registration.  The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Parent in accordance with Section 4.2(e).  (b) Underwriting Requirements.  In connection with any offering involving an underwriting of Common Units pursuant to Section 4.2(a), the Parent shall not be required to include any of the Investor’s Registrable Securities in such underwriting unless the Investor accepts the terms of the underwriting as agreed upon between the Parent and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Parent.  If the total number of Registrable Securities requested by the Investor to be included in such offering exceeds the number of securities to be sold (other than by the Parent) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Parent shall be required to include in the offering only that number of such Registrable Securities which the underwriters and the Parent in their sole discretion determine will not jeopardize the success of the offering, with the securities, if any, so included to be apportioned pro rata among the Investor and the other holders according to the total amount of Registrable Securities entitled to be included in the registration statement owned by each such holder.  

 

 {W5670291.3} 13 (c) Obligations of the Parent.  In connection with its obligations under this Section 4.2, the Parent shall:   (i) prepare and file with the Commission the registration statements with respect to the Registrable Securities in accordance with the terms of this Agreement and use its commercially reasonable efforts to cause such registration statements to become effective and keep such registration statements effective until the distribution contemplated in such registration statements has been completed and as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of the securities covered by such registration statements; (ii) prepare and file with the Commission such amendments and supplements to such registration statements, and the prospectus used in connection with such registration statements, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement; (iii) furnish to the Investor such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Investor may reasonably request in order to facilitate its disposition of its Registrable Securities; (iv) use its commercially reasonable efforts to register and qualify the securities covered by such registration statements under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the Investor; provided that the Parent shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Parent is already subject to service in such jurisdiction and except as may be required by the Securities Act; (v)  in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering; (vi) use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statements to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Parent are then listed; (vii) provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration; 

 

 {W5670291.3} 14 (viii) notify the Investor, promptly after the Parent receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and (ix) after such registration statement becomes effective, notify the Investor of any request by the Commission that the Parent amend or supplement such registration statement or prospectus.  (d) Furnish Information.  It shall be a condition precedent to the obligations of the Parent to take any action pursuant to this Section 4.2 with respect to the Registrable Securities of the Investor that such Investor shall furnish to the Parent such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of the Investor’s Registrable Securities.  (e) Expenses of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to this Section 4.2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements of counsel for the Parent shall be borne and paid by the Parent. All Selling Expenses relating to Registrable Securities registered pursuant to this Section 4.2 shall be borne and paid by the Investor.  (f) Delay of Registration.  The Investor shall not have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 4.2.  (g) Indemnification.  If any Registrable Securities are included in a registration statement under this Section 4.2:  (i) To the extent permitted by law, the Parent will indemnify and hold harmless the Investor, and the officers, directors, and stockholders of the Investor; legal counsel and accountants for the Investor; any underwriter (as defined in the Securities Act) for the Investor; and each Person, if any, who controls the Investor or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Parent will pay to the Investor, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 4.2(g)(i) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Parent, which consent shall not be unreasonably withheld, conditioned or delayed, nor shall the Parent be liable for any Damages to the extent (and only to the extent) that they arise out of or are based upon actions or omissions made in reliance upon 

 

 {W5670291.3} 15 and in conformity with written information furnished by or on behalf of the Investor expressly for use in connection with such registration. (ii) To the extent permitted by law, the Investor will indemnify and hold harmless the Parent, its General Partner, its Subsidiaries, and each of their respective directors (or similar governing persons), each of its officers who has signed the registration statement, each Person (if any), who controls the Parent within the meaning of the Securities Act, legal counsel and accountants for the Parent, any underwriter (as defined in the Securities Act), any other holder of Common Units selling securities in such registration statement, and any controlling Person of any such underwriter or other holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of the Investor expressly for use in connection with such registration; and the Investor will pay to the Parent and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 4.2(g)(ii) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Investor, which consent shall not be unreasonably withheld, conditioned or delayed; and provided further that in no event shall the aggregate amounts payable by the Investor by way of indemnity or contribution under this Section 4.2(g) exceed the proceeds from the offering received by the Investor (net of any Selling Expenses paid by the Investor), except in the case of fraud or willful misconduct by the Investor. (iii) Promptly after receipt by an indemnified party under this Section 4.2(g) of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 4.2(g), give the indemnifying party notice of the commencement thereof.  The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one  separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action.  The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 4.2(g) to the extent that such failure materially prejudices 

 

 {W5670291.3} 16 the indemnifying party’s ability to defend such action.  The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 4.2(g). (iv) To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either: (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 4.2(g) but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 4.2(g). provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 4.2(g), then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case (x) the Investor will not be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by the Investor pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided further that in no event shall the Investor’s liability pursuant to this Section 4.2(g). exceed the proceeds from the offering received by the Investor (net of any Selling Expenses paid by the Investor), except in the case of willful misconduct or fraud by the Investor. (h) Termination of Registration Rights.  The right of the Investor to request registration or inclusion of Registrable Securities in any registration pursuant to this Agreement shall terminate upon the earliest to occur of:  (i) such time as all Registrable Securities held by the Investor may be sold pursuant to Rule 144 promulgated under the Securities Act during a three-month period without registration or restriction; and (ii) the third anniversary of the date of this Agreement. 

 

 {W5670291.3} 17 5. Conditions to the Investors’ Obligations at Closing.  The obligations of the Investor to accept the Units at the Closing as a portion of the Purchase Price in lieu of a cash payment equal to the Unit Value are subject to the fulfillment, on or before such Closing, of each of the following conditions, unless otherwise waived: 5.1 Representations and Warranties.  The representations and warranties of the Parent contained in Section 2 shall be true and correct in all respects as of the Closing. 5.2 Performance.  The Parent shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by the Parent on or before the Closing. 5.3 Compliance Certificate.  The President of the Parent shall deliver to the Investors at the Closing a certificate certifying that the conditions specified in Subsections 5.1 and 5.2 have been fulfilled. 5.4 Qualifications.  All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Units pursuant to this Agreement shall be obtained and effective as of the Closing. 5.5 President’s Certificate.  The President of the Parent shall have delivered to the Investor at the Closing a certificate certifying resolutions of the General Partner approving this Agreement and the transactions contemplated hereby. 5.6 Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents incident thereto shall be reasonably satisfactory in form and substance to the Investor, and the Investor (or its counsel) shall have received all such counterpart original and certified or other copies of such documents as reasonably requested.  Such documents may include good standing certificates. 5.7 Asset Purchase Agreement. The Asset Purchase Agreement shall have been duly executed by the parties thereto, and the transactions contemplated thereby shall have been consummated substantially simultaneously with the issuance of the Units hereunder. 5.8 Approval for Listing.  The Units shall have been approved for listing on the NYSE, subject only to notice of issuance. 6. Conditions of the Parent’s Obligations at Closing.  The obligations of the Parent to issue the Units to the Investor at the Closing as a portion of the Purchase Price in lieu of a cash payment equal to the Unit Value are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived: 6.1 Representations and Warranties.  The representations and warranties of the Investor contained in Section 3 shall be true and correct in all respects as of the Closing. 

 

 {W5670291.3} 18 6.2 Performance.  The Investor shall have performed and complied with all covenants, agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing. 6.3 Qualifications.  All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful issuance and sale of the Units pursuant to this Agreement shall be obtained and effective as of the Closing. 6.4 Asset Purchase Agreement. The Asset Purchase Agreement shall have been duly executed by the parties thereto, and the transactions and agreements contemplated thereby shall have been consummated and executed, respectively, substantially simultaneously with the issuance of the Units hereunder. 6.5 Approval for Listing.  The Units shall have been approved for listing on the NYSE, subject only to notice of issuance. 7. Miscellaneous. 7.1 Survival of Warranties.  Unless otherwise set forth in this Agreement, the representations and warranties of the Parent and the Investor contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of the Investor or the Parent. 7.2 Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed; provided, however, that prior to the Closing, the Parent may, without the prior written consent of the Investor, assign all or any portion of its rights under this Agreement to one or more of its direct or indirect wholly-owned Subsidiaries. No assignment shall relieve the assigning party of any of its obligations hereunder. 7.3 Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction). (a) ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK IN EACH CASE LOCATED IN THE COUNTY OF WESTCHESTER, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH 

 

 {W5670291.3} 19 PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. (b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.3(b). 7.4 Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Counterparts may be delivered via facsimile, electronic mail (including pdf) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.   7.5 Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 7.6 Notices.  All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a pdf document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient or (d) on the third (3rd) day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to 

 

 {W5670291.3} 20 the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.6):  If to Investor: Carbo Industries, Inc. 1 Bay Boulevard Lawrence, NY 11559 Facsimile: (212) 341-7248 E-mail:  cliff.carbooil@gmail.com Attention:  Cliff Hochhauser  with a copy to: Holland & Knight LLP 31 West 52nd Street New York, NY Facsimile:  (212) 385-9010  E-mail: aaron.goldberg@hklaw.com  Attention: Aaron Goldberg If to Parent: Sprague Resources, LP 185 International Drive Portsmouth, NH 03801 Facsimile:  (603) 430-5324 E-mail:  pscoff@spragueenergy.com Attention:  Paul A. Scoff, Vice President, General Counsel and Chief Compliance Officer with a copy to: Pierce Atwood LLP One New Hampshire Avenue, Suite 350 Portsmouth, NH 03801 Facsimile:  (603) 433-6372 E-mail: spueschel@pierceatwood.com Attention:  Scott E. Pueschel 7.7 No Finder’s Fees.  Each party represents that it neither is nor will be obligated for any finder’s fee or commission in connection with this transaction.  The Investor agrees to indemnify and to hold harmless the Parent from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Investor or any of its officers, employees, or representatives is responsible.  The Parent agrees to indemnify and hold harmless the Investor from any liability for any commission or compensation in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending against such liability or asserted liability) for which the Parent or any of its officers, employees or representatives is responsible. 

 

 {W5670291.3} 21 7.8 Amendments and Waivers.  Any term of this Agreement may be amended, terminated or waived only with the written consent of the Parent and the Investor.  Any amendment or waiver effected in accordance with this Section 7.8 shall be binding upon the Investor and each transferee of the Units, each future holder of all such securities, and the Parent. 7.9 Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. 7.10 Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative. 7.11 Entire Agreement.  This Agreement (including the Exhibits hereto), and the other Transaction Documents constitute the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.    [The remainder of this page is intentionally left blank.]    

 

 {W5670291.3}                                       SIGNATURE PAGE TO UNIT PURCHASE AGREEMENT IN WITNESS WHEREOF, the parties have executed this Unit Purchase Agreement as of the date first written above. THE PARENT:  SPRAGUE RESOURCES, LP  By: /s/ Paul Scoff Name:  Paul Scoff Title:  Vice President, General Counsel, Chief Compliance Officer and Secretary   THE INVESTOR:  CARBO INDUSTRIES, INC.   By:  /s/ Paul Hochhauser Name:  Paul Hochhauser Title:  President

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