Document:

exv4w1

 

EXHIBIT 4.1

      

ADVANTA BUSINESS CARD MASTER TRUST

as Issuer

and

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Indenture Trustee

CLASS B(2007-B2) TERMS DOCUMENT

dated as of July 31, 2007

to

ADVANTASERIES INDENTURE SUPPLEMENT

dated as of November 1, 2004

to

INDENTURE

dated as of August 1, 2000

      

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	Definitions and Other Provisions of General Application

	 
	 	 	 	 
	Section 1.01 Definitions

	 	 	2	 
	Section 1.02 Governing Law

	 	 	5	 
	Section 1.03 Counterparts

	 	 	5	 
	Section 1.04 Ratification of Master Indenture and AdvantaSeries Indenture Supplement

	 	 	5	 
	 
	 	 	 	 
	ARTICLE II

	The Class B(2007-B2) Asset Backed Notes

	 
	 	 	 	 
	Section 2.01 Creation and Designation

	 	 	6	 
	Section 2.02 Interest Payment

	 	 	6	 
	Section 2.03 [Reserved.]

	 	 	6	 
	Section 2.04 Required Deposits of Available Principal
Collections to the Principal Funding Account; Payment of Principal

	 	 	6	 
	Section 2.05 Holders’ Rights to Payments of Interest and Principal

	 	 	7	 
	Section 2.06 Cash Collateral Account

	 	 	7	 
	Section 2.07 Spread Account

	 	 	8	 
	Section 2.08 Delivery and Payment for the Class B(2007-B2) Notes; Form and Denomination

	 	 	8	 
	Section 2.09 Manner of Payment of Class B(2007-B2) Notes

	 	 	8	 
	Section 2.10 Monthly Servicing Fee

	 	 	8	 

i

 

     CLASS B(2007-B2) TERMS DOCUMENT, dated as of July 31, 2007 (the “Terms
Document”), between WILMINGTON TRUST COMPANY, as Owner Trustee of ADVANTA BUSINESS CARD MASTER
TRUST, a common law trust organized and existing under the laws of the State of Delaware (herein,
the “Issuer” or the “Trust”), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly
known as Bankers Trust Company), a banking corporation organized and existing under the laws of the
State of New York, not in its individual capacity, but solely as indenture trustee (herein,
together with its successors in the trusts thereunder as provided in the Master Indenture, the
“Indenture Trustee”) under the Master Indenture, dated as of August 1, 2000, as amended by
Amendment No. 1 to the Master Indenture, dated as of May 9, 2006 (as amended and supplemented from
time to time, the “Master Indenture”), between the Issuer and the Indenture Trustee. This
Terms Document supplements the AdvantaSeries Indenture Supplement, dated as of November 1, 2004 (as
amended and supplemented from time to time, the “AdvantaSeries Indenture Supplement”)
between the Issuer and the Indenture Trustee, which supplements the Indenture.

     Pursuant to this Terms Document, the Issuer shall create a new tranche of Class B Notes and
shall specify the principal terms thereof.

ARTICLE I

Definitions and Other Provisions of General Application

     Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise expressly
provided or unless the context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

     (2) all other terms used herein which are defined in the AdvantaSeries Indenture Supplement or
the Master Indenture, either directly or by reference therein, have the meanings assigned to them
therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to any computation
required or permitted hereunder means such accounting principles as are generally accepted in the
United States of America at the date of such computation;

     (4) all references in this Terms Document to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this Terms
Document;

     (5) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to
this Terms Document as a whole and not to any particular Article, Section or other subdivision;

 

 

     (6) in the event that any term or provision contained herein shall conflict with or be
inconsistent with any term or provision contained in the AdvantaSeries Indenture Supplement, the
Master Indenture or the Transfer and Servicing Agreement, the terms and provisions of this Terms
Document shall be controlling;

     (7) each capitalized term defined herein shall relate only to the Class B(2007-B2) Notes and
no other Tranche of Notes issued by the Issuer; and

     (8) “including” and words of similar import will be deemed to be followed by “without
limitation.”

     “Accumulation Amount” shall mean, for any Payment Date occurring during the
Accumulation Period, $12,500,000; provided, however, that if the Accumulation
Period Length is determined to be less than 8 months pursuant to Section 2.04(b), the Accumulation
Amount for each Payment Date with respect to the Accumulation Period will be equal to (i) the
Outstanding Principal Balance of the Class B(2007-B2) Notes divided by (ii) the Accumulation Period
Length.

     “Accumulation Deposit Amount” means, for any Payment Date occurring during the
Accumulation Period, an amount equal to the sum of the Accumulation Amount for such Payment Date
and any existing Accumulation Shortfall.

     “Accumulation Period” shall mean, unless a Pay Out Event shall have occurred prior
thereto, the period commencing at the close of business on October 31, 2009, or such later date as
is determined in accordance with Section 2.04(b), and ending on the first to occur of (a) the
commencement of the Early Amortization Period, (b) the payment in full of the Outstanding Principal
Balance of the Class B(2007-B2) Notes and (c) the Class B(2007-B2) Final Maturity Date.

     “Accumulation Period Factor” shall mean, for the purpose of calculating the
Accumulation Period Length for the Class B(2007-B2) Notes, with respect to any Monthly Period, a
fraction, the numerator of which is equal to the sum of the initial invested amounts (or, if no
initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all outstanding Series, and the denominator of which is equal to the sum of
(a) the Initial Principal Balance of Class B(2007-B2) Notes, (b) the initial invested amounts (or,
if no initial invested amount is defined in the applicable Indenture Supplement, then the initial
principal balance) of all other Outstanding Classes and Tranches (without duplication) (other than
the Class B(2007-B2) Notes) which are not expected to be in their revolving periods, and (c) the
initial invested amounts (or, if no initial invested amount is defined in the applicable Indenture
Supplement, then the initial principal balance) of all other Outstanding Classes and Tranches
(without duplication) (other than the Class B(2007-B2) Notes) which are not allocating Shared
Principal Collections to other Series and are in their revolving periods; provided,
however, that this definition may be changed at any time if the Rating Agency Condition is
satisfied.

 - 3 - 

 

     “Accumulation Period Length” means the number of whole months such that the sum of the
Accumulation Period Factors for each month during such period will be equal to or greater than the
Required Accumulation Factor Number; provided, however, that the Accumulation
Period Length will not be determined to be less than one month; provided further,
however, that the determination of the Accumulation Period Length may be changed at any
time if the Rating Agency Condition is satisfied.

     “Accumulation Shortfall” shall mean (a) on the first Payment Date during the
Accumulation Period, zero and (b) on each subsequent Payment Date during the Accumulation Period,
the excess, if any, of the Accumulation Deposit Amount for the previous Payment Date over the
amount deposited into the Principal Funding Account pursuant to Section 2.04(b) for the previous
Payment Date.

     “Class B(2007-B2) Final Maturity Date” means June 20, 2013.

     “Class B(2007-B2) Note” means any Note substantially in the form set forth in Exhibit
A-2 to the AdvantaSeries Indenture Supplement, designated therein as a Class B(2007-B2) Asset
Backed Note and duly executed and authenticated in accordance with the Master Indenture.

     “Class B(2007-B2) Noteholder” means a Person in whose name a Class B(2007-B2) Note is
registered in the Note Register.

     “Class B(2007-B2) Note Interest Rate” means a rate per annum equal to 5.50%.

     “Class B(2007-B2) Termination Date” means the earliest to occur of (a) the Principal
Payment Date on which the Outstanding Principal Balance of the Class B(2007-B2) Notes is paid in
full, (b) the Class B(2007-B2) Final Maturity Date and (c) the date on which the Master Indenture
is discharged and satisfied pursuant to Article XI thereof.

     “Closing Date” means July 31, 2007.

     “Eligible Institution” shall mean, with respect to any funds allocable to the Class
B(2007-B2) Notes in the Collection Account, the Spread Account and the Principal Funding
Sub-Account for the Class B(2007-B2) Notes, any “Eligible Institution” as defined in the Master
Indenture, except that all references in such definition to “a long-term unsecured debt rating as
required in each Indenture Supplement” shall mean long-term ratings of not less than AA- by
Standard & Poor’s and Al by Moody’s, except that no such rating shall be required of an institution
which maintains such Collection Account or such funds as a fully segregated trust account or
subaccount with the corporate trust department of such institution as long as such institution
maintains the credit rating of a Rating Agency in one of its generic credit rating categories which
signifies investment grade.

     “Eligible Investments” shall mean with respect to funds allocable to the Class
B(2007-B2) Notes in the Collection Account, the Spread Account and the Principal Funding
Sub-Account for the Class B(2007-B2) Notes, “Eligible Investments” as defined in the Master
Indenture, except that all references in such definition to the rating

 - 4 - 

 

“required in each Indenture
Supplement” and “rating that satisfies the Rating Agency Condition” shall mean ratings of not less
than A-1+ by Standard & Poor’s and P-1 by Moody’s.

     “Expected Final Principal Payment Date” means July 20, 2010.

     “Initial Principal Balance” means $100,000,000.

     “Interest Payment Date” means the scheduled due date of any payment of interest on the
Class B(2007-B2) Notes, which shall be each Payment Date. The first Interest Payment Date shall be
August 20, 2007.

     “Paying Agent” means Deutsche Bank Trust Company Americas.

     “Rating Agency” means, with respect to the Class B(2007-B2) Notes, each of
Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., and Moody’s Investors Service,
Inc.

     “Required Accumulation Factor Number” shall be equal to a fraction, rounded
upwards to the nearest whole number, the numerator of which is one and the denominator of which is
equal to the lowest monthly principal payment rate on the Accounts, expressed as a decimal, for the
twelve months preceding the date of such calculation; provided, however, that this
definition may be changed at any time if the Rating Agency Condition is satisfied.

     Section 1.02
Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION
LAW, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES
OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     Section 1.03
Counterparts. This Terms Document may be executed in any number of counterparts,
each of which so executed will be deemed to be an original, but all such counterparts will together
constitute but one and the same instrument.

     Section 1.04
Ratification of Master Indenture and AdvantaSeries Indenture
Supplement. As
supplemented by this Terms Document, each of the Master Indenture and the AdvantaSeries Indenture
Supplement is in all respects ratified and confirmed and the Master Indenture as so supplemented by
the AdvantaSeries Indenture Supplement and this Terms Document shall be read, taken and construed
as one and the same instrument.

[END OF ARTICLE I]

 - 5 - 

 

ARTICLE II

The Class B(2007-B2) Asset Backed Notes

     Section 2.01 Creation and Designation. There is hereby created a tranche of Class B Notes to
be issued pursuant to the Master Indenture and the AdvantaSeries Indenture Supplement to be known
as the “AdvantaSeries Class B(2007-B2) Asset Backed Notes.”

     Section 2.02 Interest Payment. For each Interest Payment Date other than the first Interest
Payment Date, the amount of interest due and payable with respect to the Class B(2007-B2) Notes
shall be an amount equal to the product of (i) (A) a fraction, the numerator of which is thirty
(30) and the denominator of which is 360, multiplied by (B) the Class B(2007-B2) Note Interest
Rate, multiplied by (ii) the Outstanding Principal Balance of the Class B(2007-B2) Notes determined
as of the Record Date preceding the related Interest Payment Date. Any interest on the Class
B(2007-B2) Notes will be calculated on the basis of a 360-day year and twelve 30-day Interest
Periods. For the first Interest Payment Date, interest on the Class B(2007-B2) Notes will be
$305,555.56.

     Section 2.03 [Reserved.]

     Section 2.04 Required Deposits of Available Principal Collections to the Principal Funding
Account; Payment of Principal. With respect to any Payment Date, the amount to be deposited in the
Principal Funding Sub-Account pursuant to Section 4.16 of the AdvantaSeries Indenture Supplement
will be the amount determined pursuant to clause (a), (b), (c) or (d) below for such Payment Date,
as applicable, or if more than one such clause is applicable, the highest amount determined
pursuant to any one of such clauses; provided, however, in no case shall the amount
required to be deposited exceed the Class B(2007-B2) Adjusted Invested Amount (calculated
immediately before giving effect to such deposit but after giving effect to any Investor
Charge-Offs and any reallocations of principal on such date).

     (a) Revolving Period. On each Payment Date during the Revolving Period, the required
deposit to the Principal Funding Sub-Account for the Class B(2007-B2) Notes will be zero.

     (b) Accumulation Period. On each Payment Date during the Accumulation Period, the
required deposit to the Principal Funding Sub-Account for the Class B(2007-B2) Notes will be the
Accumulation Deposit Amount for such Payment Date. The Accumulation Period is scheduled to
commence at the close of business on October 31, 2009, provided, however, that, if
the Accumulation Period Length is less than 8 months, the date on which the Accumulation Period
actually commences will be delayed to the close of business on the last day of the month prior to
the month that is the number of whole months prior to the Expected Final Principal Payment Date
which is at least equal to the Accumulation Period Length and, as a result, the number of Monthly
Periods in the Accumulation Period will at least equal the Accumulation Period Length. On the
Determination Date twelve (12) months prior to the Expected Final Principal Payment

 - 6 - 

 

Date and each
Determination Date thereafter until the Accumulation Period begins, the Servicer shall determine
the Accumulation Period Length.

     (c) Early Amortization Period. On each Payment Date during an Early Amortization
Period, the required deposit to the Principal Funding Sub-Account for the Class B(2007-B2) Notes
will be the Adjusted Invested Amount for the Class B(2007-B2) Notes as of the close of business on
the last day of the preceding Monthly Period (after taking into account any reductions or increases
occurring on such date).

     (d) Coverage Funding of the Principal Funding Account of Senior Classes. If the
Transferor determines as of the end of the related Monthly Period that, after giving effect to all
allocations and payments with respect to that Monthly Period, the Coverage Funding Required Amount
of the Class B(2007-B2) Notes will be greater than zero, the required deposit to the Principal
Funding Sub-Account for the Class B(2007-B2) Notes will be the Coverage Funding Required Amount for
such Class B(2007-B2) Notes.

     (e) Distributions to Paying Agent. On each Principal Payment Date, the Indenture
Trustee, acting in accordance with written instructions from the Servicer, shall withdraw from the
Principal Funding Sub-Account for the Class B(2007-B2) Notes and distribute to the Paying Agent for
payment to the Class B(2007-B2) Noteholders the amounts deposited into the Principal Funding
Sub-Account for the Class B(2007-B2) Notes pursuant to this Section 2.04.

     Section 2.05 Holders’ Rights to Payments of Interest and Principal.

     (a) Any installment of interest or principal, if any, payable on any Class B(2007-B2) Note
which is punctually paid or duly provided for by the Issuer and the Indenture Trustee on the
applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the
Person in whose name such Class B(2007-B2) Note is registered on the Record Date, by wire transfer
of immediately available funds to such Person’s account as has been designated by written
instructions received by the Paying Agent from such Person not later than the close of business on
the third Business Day preceding the date of payment or, if no such account has been so designated,
by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note
Register on such Record Date, except that with respect to Notes registered on the Record Date in
the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately
available funds to the account designated by such nominee.

     (b) The right of the Class B(2007-B2) Noteholders to receive payments from the Issuer will
terminate on the first Business Day following the Class B(2007-B2) Termination Date.

     Section 2.06 Cash Collateral Account. In accordance with Section 4.22(a) of the AdvantaSeries
Indenture Supplement, on or prior to the Closing Date, the Transferor shall deposit, cause to be
deposited or maintain funds in the Cash Collateral Account such that, immediately after giving
effect to the issuance of the Class B(2007-B2) Notes,

 - 7 - 

 

the amount on deposit in the Cash Collateral
Account for the AdvantaSeries is at least equal to the Required Cash Collateral Account Amount.

     Section 2.07 Spread Account. In accordance with Section 4.24(a) of the AdvantaSeries
Indenture Supplement, on or prior to the Closing Date, the Transferor shall deposit, cause to be
deposited or maintain funds in the Spread Account such that immediately after the issuance of the
Class B(2007-B2) Notes, the ratio of the amount on deposit in the Spread Account to the Required
Spread Account Amount is equal to or greater than the same ratio immediately preceding such
issuance.

     Section 2.08 Delivery and Payment for the Class B(2007-B2) Notes; Form and Denomination.

     (a) The Issuer shall execute and issue, and the Indenture Trustee shall authenticate, the
Class B(2007-B2) Notes in accordance with Section 2.03 of the Master Indenture. The Indenture
Trustee shall deliver the Class B(2007-B2) Notes to or upon the order of the Issuer when so
authenticated. The Class B(2007-B2) Notes shall be Book-Entry Notes.

     (b) The Depository for the Class B(2007-B2) Notes shall be The Depository Trust Company, and
the Class B(2007-B2) Notes shall initially be registered in the name of Cede & Co., its nominee.

     (c) The Class B(2007-B2) Notes will be issued in minimum denominations of $5,000 and integral
multiples of $1,000 in excess of that amount.

     Section 2.09 Manner of Payment of Class B(2007-B2) Notes. Except as provided in Section 11.02
of the Master Indenture with respect to a final distribution, distributions to Class B(2007-B2)
Noteholders hereunder shall be made by (i) check mailed to each Class B(2007-B2) Noteholder (at
such Noteholder’s address as it appears in the Note Register), except that with respect to any
Class B(2007-B2) Notes registered in the name of the nominee of a Clearing Agency, such payment
shall be made in immediately available funds and (ii) without presentation or surrender of any
Class B(2007-B2) Note or the making of any notation thereon.

     Section 2.10 Monthly Servicing Fee. In accordance with Section 3.01(a) of the AdvantaSeries
Indenture Supplement, with respect to the August 20, 2007 Payment Date, the AdvantaSeries Monthly
Servicing Fee allocated to the Class B(2007-B2) Notes shall be $0.

[END OF ARTICLE II]

 - 8 - 

 

     IN WITNESS WHEREOF, the undersigned have caused this Terms Document to be duly executed
and delivered by their respective duly authorized officers on the day and year first above written.

	 	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,

    as Owner Trustee of	 	 
	 	 	ADVANTA BUSINESS CARD MASTER TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jennifer A. Luce
 

	 	 
	 	 	Name: Jennifer A. Luce	 	 
	 	 	Title: Sr. Financial Services Officer	 	 
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,	 	 
	 	 	as Indenture Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Irene Siegel
 

	 	 
	 	 	Name: Irene Siegel	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Sue Kim
 

	 	 
	 	 	Name: Sue Kim	 	 
	 	 	Title: Associate	 	 

[Signature Page to Class B(2007-B2) Terms Document]exv10w1

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST.
REDACTED MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION.

Exhibit 10.1

PRODUCTS TERMINAL SERVICES AGREEMENT

	 	 	 	This Products Terminal Services Agreement (the “Agreement”) is made this 1st day of May,
2007 and effective March 1, 2007, between SUNOCO PARTNERS MARKETING & TERMINALS L.P.
(“SPMT”) and SUNOCO INC. (R&M) (“Customer”), for purposes of providing certain terminal
services (the “Terminal Services”) at SPMT terminals identified in Attachments to this
Agreement (“Terminals”) upon the terms and conditions herein set forth.

TERMS AND CONDITIONS

	1.	 	GENERAL

	 	a	 	The Terminal Services provided hereunder shall include the receipt, storage,
throughput, custody and delivery of Customer’s refined petroleum products (the “Products”)
at the Terminals, together with such additional services as may be described herein and in
the Attachments to this Agreement, including, but not limited to, blending and additive
services for the ancillary fees, rates and charges, and in accordance with the terms and
conditions, herein contained.
	 
	 	b	 	The term of this Agreement shall be five (5) years commencing March 1, 2007.
	 
	 	c	 	SPMT shall maintain all records necessary to provide Customer with monthly reports
summarizing all of Customer’s receipts and withdrawals, which report shall be mailed or
faxed to Customer by the 5th day of the following month.
	 
	 	d	 	On each business day, SPMT shall provide to Customer a daily inventory statement
detailing: (i) Customer’s opening inventory position for the previous business day, (ii)
deliveries into Terminal by Customer, (iii) receipts into Customers’ trucks, and (iv)
Customer’s opening inventory position for the current business day. All inventory
statements shall be deemed final and binding unless returned by Customer to SPMT within 60
days, signed and noting any and all discrepancies and including all supporting
documentation.
	 
	 	e	 	The Products, Fees, method(s) of Product receipts and deliveries, invoicing procedures
and payment terms with respect to the Terminal Services are reflected in Attachment A.
	 
	 	f	 	Customer shall comply with, and shall cause its carriers to comply with, the provisions
of the Terminal Access Agreement, the form of which is attached hereto Attachment B.
	 
	 	g	 	Both parties shall comply with the quality assurance requirements and Product
specifications described and set forth on Attachment C.
	 
	 	h	 	SPMT is an independent contractor in the performance of this Agreement, and neither
SPMT nor its employees are to be considered employees of Customer.
	 
	 	i	 	Customer understands and agrees that SPMT may consider contractual arrangements with
third- party customers for Terminal Services at the Terminals, and nothing herein shall be
deemed to provide Customer with exclusive rights to Terminal Services at any Terminal.

	2.	 	RECEIPTS AND DELIVERIES:

	 	a	 	Receipt of Products into the Terminals by Customer (“Receipts”) and the loading of
Customer’s Products into trucks (“Shipments”) at the Terminals will begin following the
Effective Date of the Agreement. Minimum and maximum permitted Receipts and Shipments will
vary by terminal based on pipeline batch sizes, dock constraints, and tank space. Receipt
and Shipment constraints will be identified during the nomination process described in
section 2(k).
	 
	 	b	 	Receipts and Shipments at the Terminals shall be made within the normal business hours
of the Terminals (as set forth on Attachment A), unless otherwise agreed by SPMT and
Customer. Trucks will be loaded in the order in

38

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	which they arrive. In no event will SPMT be responsible for any delay, waiting, or
demurrage charges.
	 
	 	c	 	Customer shall maintain minimum Product inventory representing its pro-rata share of
unavailable tank bottoms and terminal line fill of commingled Product as set forth in
Attachment F. Customer shall maintain the entire unavailable tank bottom and terminal line
fill of its segregated Product(s).
	 
	 	d	 	Customer understands and agrees that a positive inventory position will be maintained
on every Product held in storage at the Terminals, in addition to tank bottoms. SPMT
retains the right to discontinue loading any Products showing a negative balance (excluding
tank bottoms) until additional volume of the required Product is received to restore a
positive inventory balance. Customer also agrees to maintain a positive inventory balance
of ULSD, LSD, NRLM, and any other Products as required by regulation, regardless of actual
specification. SPMT will include accounting relative to these Products in daily reports to
Customer.
	 
	 	e	 	In the event Customer desires to store a specified volume of Products in a segregated
or commingled tank, SPMT may provide such storage for Customer at the Storage Fee rate
identified in Attachment A.
	 
	 	 	 	[******]
	 
	 	f	 	All Products tendered by each party will conform to the specifications for such
Products as set forth on Attachment C. In the event that either party knows, or has reason
to believe, that any Products so tendered do not conform with such specifications, it shall
be the responsibility of that party to notify the other to such effect as soon as possible,
whereupon the affected party may elect to refuse tender, or, if the party has already
received such Products into the Terminals or tank truck, to make such disposition of the
nonconforming Products, at the other party’s expense, as that party may determine in its
reasonable discretion.
	 
	 	g	 	(1) Customer shall be responsible to SPMT for “Customer Damages”, as defined below,
incurred by SPMT and SPMT’s other customers (and their customers) at the Terminals
(collectively, “SPMT Damaged Parties”) arising out of, or resulting from, “Customer’s
Non-Conforming Products” herein defined as (x) any Product received at the Terminals for
Customer’s account not conforming to SPMT’s commingled product specifications or Customer’s
segregated product specifications; (y) any change in the Product received by the Terminals
for the account of Customer; or (z) any goods or material handled for Customer hereunder.
As used herein “Customer Damages” shall mean, and be limited to, (i) the value of any
contaminated product as determined in accordance with Attachment A, (ii) direct costs and
expenses incurred by SPMT and/or SPMT’s other customers at the Terminals in cleaning and
repairing tanks, trucks and other affected facilities and equipment, (iii) any fines and/or
penalties levied against SPMT and/or SPMT’s other customers at the Terminals by reason of
Customer’s Non-Conforming Products or the products or equipment contaminated thereby, and
(iv) any other damages arising directly from Customer’s Non-Conforming Products. Customer
shall not be liable to the SPMT Damaged Parties for lost profits, loss of business, or any
other indirect, special or consequential damages of any kind arising out of, or resulting
from, Customer’s Non-Conforming Products. In addition to the foregoing, Customer shall
promptly remove or cause to be removed any said non-conforming Product from the Terminal.
If, under its contracts with other customers, SPMT shall elect to replace contaminated
products in lieu of payment therefor, Customer shall have the right to provide to SPMT such
replacement products. Customer shall have no responsibility to the SPMT Damaged Parties
under this section 2(g)(1) unless notice of such condition is provided to Customer within
thirty (30) days of discovery of such damages.
	 
	 	 	 	(2) SPMT shall be responsible to Customer for “SPMT Damages”, as defined below, incurred by
Customer and Customer’s immediate customers (collectively “Customer Damaged Parties”)
arising out of, or resulting from, the contamination of Customer’s Product at the Terminal,
caused by SPMT or another of SPMT’s customers. As used herein “SPMT Damages” shall mean, and
be limited to, (i) the value of the contaminated Product as determined in accordance with
Attachment A, (ii) direct costs and expenses incurred by Customer Damaged Parties in
cleaning and repairing tanks, trucks and other affected facilities and equipment, (iii) any
fines and/or penalties levied against Customer Damaged Parties by reason of the contaminated
Product or equipment; and (iv) any other damages arising
directly from the contaminated Product. SPMT shall have the option to replace the
contaminated Product in lieu of

39

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	payment therefor. SPMT shall not be liable to Customer Damaged Parties for lost profits,
loss of business, or any other indirect, special or consequential damages of any kind
arising out of, or resulting from, contaminated Product. SPMT shall have no responsibility
to the Customer Damaged Parties under this section 2(g)(2) unless notice of such condition
is provided to SPMT within thirty (30) days of discovery of such damages.
	 
	 	h	 	SPMT shall have the right to commingle Customer’s Product with Product of like grade
and quality owned by others.
	 
	 	i	 	Product loans from one of SPMT’s customer’s inventory to another will be allowed,
subject to written permission granted beforehand by the lending customer, and proper
accounting for such product loans.
	 
	 	j	 	Terminal customers may exchange volumes of fungible products at the Terminals. Only
after specific exchange agreements are executed may such exchanges be implemented.
Exchange parties shall render to each other and to SPMT on a monthly basis statements
indicating the status of exchanges.
	 
	 	k	 	Customer will provide SPMT with monthly forecasts of Product Receipts for marine vessel
deliveries by the 15th day of the month preceding that of the scheduled
activity. SPMT shall use commercially reasonable efforts to accommodate pipeline batches
and arrange berthing of Marine Vessels. SPMT shall notify the Customer within four (4) days
of receipt of the forecast as to whether SPMT can accept Product Receipts at the forecasted
amounts.
	 
	 	l	 	Demurrage- Rail cars will be accepted as scheduled and as delivered by the local
railroad. In no event will SPMT be responsible for rail car demurrage, except to the
extent such demurrage was caused by circumstances within SPMT’s direct control.
	 
	 	m	 	For receipt of ethanol SPMT will follow the practices outlined in Attachment G.

	3.	 	ADDITIONAL SERVICE

	 	 	 	For any service or function in addition to those referred to in the Agreement requested by
Customer or its agents and agreed to by SPMT (“Additional Service”), SPMT shall be
reimbursed by Customer the expenses associated with labor (internal and contract), materials
and equipment, provided the expenses incurred do not exceed those that would have been
incurred had the request not been made.

	4.	 	TITLE AND CUSTODY

	 	a	 	Title to, and risk of loss caused by force majeure, of all Products received from
Customer at the Terminals shall remain at all times with Customer.
	 
	 	b	 	Custody of Products received from Customer at the Terminals shall pass to SPMT (1) at
the time such Products enter a Terminal’s inlet flange located at the Terminal’s
pipeline/marine/truck/rail manifold, or (2) by Property Transfer Order (PTO) transferring
Product inventory from another through-putter to Customer. Custody of the Products shall
remain with SPMT until such Products pass the flange at the point of delivery into
Customer’s trucks or are rendered to marine vessels at the point of delivery at the dock.

	5.	 	PRODUCT MEASUREMENT

	 	a.	 	Measurements of all Products shall be taken by SPMT and shall be based upon United
States gallons of 231 cubic inches, 42 gallons to the barrel, corrected to 60 degrees (F.),
using ASTM-IP Petroleum Measurement Table No. 6B-ASTM Designation D-1250. Unless otherwise
specified, quantities delivered: (a) from pipeline shall be measured by calibrated meters at
a Terminal’s inlet flange at the pipeline manifold; (b) into transport truck shall be
measured by calibrated loading rack meters; and (c) from vessel, rail car or transport truck
shall be measured by calibrated meters where available, otherwise, measurements will be
taken using the Terminal’s tank gauge system utilizing still tank(s). In the case of ethanol
deliveries by rail and truck without metering, the volume stated on the BOL will be deemed
the correct volume. Customer shall have the right to participate with
SPMT in any measurement; but, in the absence of such participation, the measurements taken
by SPMT shall be binding upon both parties in the absence of fraud or manifest error. If
Customer requires an independent certified

40

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	gauging by a mutually acceptable independent gauger, such gauging will be at Customer’s
expense. The independent inspector’s report shall be binding on the parties hereto. In the
event a certified meter or gauge is found to be in error, the parties will agree upon the
best alternate measurement method as the situation dictates. Measurements shall follow one
or more of the following guidelines:

	 	i)	 	API Standard 2545, “Method of Gauging Petroleum and Petroleum Products.”
	 
	 	ii)	 	API Standard 2550, “Method of Measurement and Calibration of Upright Cylindrical Tanks.”
	 
	 	iii)	 	API “Manual of Petroleum Standards”, chapters 4, 5, and 12.

	 	b	 	For all sampling, gravity, and temperature measurements:

	 	i)	 	API “Manual of Petroleum Standards”, chapters 8 and 9.

	 	c	 	SPMT will maintain and furnish monthly Customer in-bound and out-bound stock activity reports.
	 
	 	d	 	SPMT will provide Customer with Bill of Lading for Ethanol Receipts and/ or Shipments.
	 
	 	e	 	Receipts and Shipments to/ from marine vessels will be measured by terminal tank gauges utilizing still tank(s).
	 
	 	f	 	Ethanol temperature corrections will be by either: (1) ASTM-IP Petroleum Measurement
Table No. 6B-ASTM Designation D-1250, using an argument of 51.5 degrees API, or (2)
the RFA volume correction table for ethanol.

	6.	 	PRODUCT LOSSES/GAINS

	 	a	 	SPMT will, on a monthly basis, determine and communicate to Customer the physical
inventory of Product in storage in the tanks at the Terminals and SPMT will calculate
storage variation at (60 degrees F). The total monthly gain or loss (not caused by force
majeure) in inventory, if any, will be pro rated to all parties using the commingled
Terminal storage based on their respective percentages of the monthly throughput of
Products.
	 
	 	b	 	Except as otherwise provided in this section 6 (b), SPMT will be responsible for all
losses and damages to Customer’s Product in excess of (i) one-quarter of one percent
(0.25%) for non-ethanol Products; and (ii) one half of one percent (0.50%) for ethanol
Products until such time as SPMT has, upon Customer’s request and at Customer’s sole cost
and expense, installed meters at a Terminal to measure the volume of ethanol delivered to
that Terminal, at which time the loss allowance for ethanol Products at that Terminal shall
be one-quarter of one percent (0.25%). Installation of the meters shall be billed to
Customer at SPMT’s cost, and any meters installed by Customer at a Terminal shall be and
remain the property of SPMT. SPMT will be responsible for all losses and damage to Product,
with no loss allowances, to the extent caused directly by SPMT’s negligence; provided,
however, that in no event shall any losses or damage for which the cause cannot be
affirmatively determined be deemed to be due to SPMT’s negligence. SPMT will not be
responsible for any loss or damage to Customer’s Product caused by force majeure (as
described in Article 9). Customer will be responsible for all losses and damage to
Customer’s Product, without regard to loss allowances, caused directly by Customer’s
negligence or malfunction of Customer’s equipment. Absent obvious error, all adjustments
provided for in this section shall be made based upon the book inventory as shown on the
records of SPMT at the time of the shortage or loss.
	 
	 	c	 	For segregated Product, all inventory losses are the responsibility of the Customer,
except that SPMT will absorb all shortages in excess of one-quarter of one percent (0.25%)
for non-ethanol Products and one half of one percent (0.50%) for ethanol Products, unless
caused by SPMT’s negligence or that of its independent contractors or their agents or
employees or malfunction of SPMT’s equipment in which case SPMT shall be responsible for
all losses.
	 
	 	d	 	Actual handling losses/gains attributable to Customer’s proportionate share of monthly
Terminal throughput shall be determined and adjustments shall be made to Customer’s ending
monthly inventory balance.
	 
	 	e	 	For losses attributable to SPMT, Customer will be provided a credit to its throughput
fee once the amount of such
credit has been finally determined by the parties. Benchmark Price shown in Attachment A
will be used to establish Product value.

41

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	7.	 	LIABILITY AND INDEMNITY

	 	a	 	CUSTOMER SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS SPMT, ITS AFFILIATES AND THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS, FROM AND AGAINST ANY AND ALL LOSSES,
DAMAGES, CLAIMS, DEMANDS, CAUSES OF ACTION, LIABILITIES, SUITS, TAXES, PENALTIES, FINES
FROM ANY SOURCE, COSTS, JUDGMENTS AND EXPENSES, INCLUDING REASONABLE ATTORNEY’S FEES, THAT
MAY BE SUFFERED OR INCURRED AT ANY TIME TO THE EXTENT ARISING OUT OF (1) THE FAILURE OF
CUSTOMER TO COMPLY WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL LAWS, ORDINANCES,
REGULATIONS, RULES AND PERMITS OR THE TERMS OF THIS AGREEMENT; AND (2) INJURY TO OR DEATH
OF ANY PERSON, OR LOSS OR DESTRUCTION OF OR DAMAGE TO ANY PROPERTY, INCLUDING THE
CONVERSION THEREOF, CAUSED BY THE NEGLIGENT, RECKLESS OR WILLFUL ACTS OR OMISSIONS OF
CUSTOMER, ITS AFFILIATES OR ITS INDEPENDENT CONTRACTORS ANY OF THEIR RESPECTIVE AGENTS,
SERVANTS OR EMPLOYEES.
	 
	 	b	 	SPMT SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS CUSTOMER, ITS AFFILIATES AND THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS, FROM AND AGAINST ANY AND ALL LOSSES,
DAMAGES, CLAIMS, DEMANDS, CAUSES OF ACTION, LIABILITIES, SUITS, TAXES, PENALTIES, FINES
FROM ANY SOURCE, COSTS, JUDGMENTS AND EXPENSES, INCLUDING REASONABLE ATTORNEY’S FEES, THAT
MAY BE SUFFERED OR INCURRED AT ANY TIME TO THE EXTENT ARISING OUT OF (1) THE FAILURE OF
SPMT TO COMPLY WITH ALL APPLICABLE FEDERAL, STATE AND LOCAL LAWS, ORDINANCES, REGULATIONS,
RULES AND PERMITS OR THE TERMS OF THIS AGREEMENT; AND (2) INJURY TO OR DEATH OF ANY PERSON,
OR LOSS OR DESTRUCTION OF OR DAMAGE TO ANY PROPERTY, INCLUDING THE CONVERSION THEREOF,
CAUSED BY THE NEGLIGENT, RECKLESS OR WILLFUL ACTS OR OMISSIONS OF SPMT, ITS AFFILIATES OR
ITS INDEPENDENT CONTRACTORS ANY OF THEIR RESPECTIVE AGENTS, SERVANTS OR EMPLOYEES.
	 
	 	c	 	NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, NEITHER SPMT NOR CUSTOMER
SHALL BE LIABLE TO THE OTHER PARTY HERETO FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL
DAMAGES, NO MATTER HOW SUCH DAMAGE SHALL HAVE OCCURRED OR HAVE BEEN CAUSED.

	8.	 	INSURANCE

	 	a	 	At all times during the term of this Agreement, SPMT and Customer, or Customer’s
transporters, acting as agents of Customer, shall carry and maintain in force insurance
policy(ies) that will satisfy the following requisite coverages:

	 	i)	 	Workers’ Compensation in accordance with state law and Employer’s Liability
Insurance of Two Million Dollars ($2,000,000) for each accident;
	 
	 	ii)	 	General Liability Insurance with a minimum limit of Five Million Dollars
($5,000,000) per occurrence; and
	 
	 	iii)	 	Automobile Liability Insurance covering all motor vehicles owned, hired or used
in connection with this Agreement with limits not less than Five Million Dollars
($5,000,000) for Bodily Injury and Property Damage per occurrence.

	 	b	 	SPMT and Customer shall be named as an additional insured on each other’s insurance
policies but only to the extent of the normal insured’s negligence. Each party will
provide the other with certificates of insurance upon request.
	 
	 	c	 	SPMT and Customer may provide the required coverage by self-insurance. Customer shall
provide SPMT with documentation confirming it is self-insured and providing details as to
the extent and limitation of such self-insured coverage.

42

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	9.	 	FORCE MAJEURE

	 	a	 	Neither party shall be considered in default of its obligations or held liable for
failure to perform under this Agreement (other than for any obligation to make payment due
hereunder) when prevented by any cause reasonably beyond its control including, but not
limited to, accident, explosion, fire, flood, revolution, hostilities, civil commotions,
strikes, acts of God, or acts of government.
	 
	 	b	 	The party claiming that an event of force majeure has arisen shall immediately notify
the other party. If notice is given orally, it shall be confirmed in writing within
seventy-two (72) hours of the event.

	10.	 	CUSTOMER’S AUDIT RIGHTS

	 	a	 	Customer shall have the right, reasonably exercised (1) to observe and verify SPMT’s
performance of its services hereunder, and (2) to have ingress and egress to, from and
within the Terminals to the extent required for the purposes of this Agreement and (3) to
review and audit all of SPMT’s records related to the performance of this Agreement and
make copies thereof, at reasonable times and at Customer’s expense. None of these rights
shall be exercised by Customer in any way which will materially interfere with or diminish
SPMT’s control over or its operation of the Terminals and Customer shall be subject to
reasonable rules and regulations promulgated by SPMT.
	 
	 	b	 	SPMT will require any parties entering the Terminals on behalf of Customer to sign a
Terminal Access Agreement, the form of which is attached hereto as Attachment B, and
provide certificates of insurance reflecting coverage required by SPMT. Customer shall
advise such parties to utilize only those portions of the Terminals designated by SPMT to
be used for the purposes described herein and to do so only for the period of time required
for expeditious completion of such purposes.
	 
	 	c	 	Following any audit as provided above, any mutually agreed adjustment charge or credit
to Customer will be issued by SPMT within thirty (30) days after a copy of the completed
audit is furnished to SPMT.

	11.	 	TAXES
	 
	 	 	Customer shall pay any and all taxes, charges and/or assessments, levied against the storage,
handling, transportation, sale or use of its’ Products excluding taxes based on SPMT’s gross
receipts, gross profits or net income. Should SPMT be required to pay or collect such taxes,
charges and/or assessments pursuant to any federal, state, county, or municipal law or authority
now in effect or hereafter to become effective, Customer shall promptly reimburse SPMT therefor.
If a claim is made against SPMT for any tax payable by Customer, Customer shall, at its
expense, take such action, as it reasonably deems necessary with respect to challenge or
opposition to such asserted liability and shall indemnify and hold SPMT harmless therefrom.
	 
	12.	 	ALTERNATIVE DISPUTE RESOLUTION
	 
	 	 	SPMT and Customer shall use their best efforts to resolve any dispute, controversy or claim
arising from or in connection with this Agreement in a fair and equitable manner. Prior to
initiating legal proceedings thereon, the parties will seek resolution of disputes through
discussions between senior executives of the respective parties where necessary. In addition,
SPMT and Customer may engage in mediation of the dispute by mutual agreement, and shall share
the cost of the mediator. Any such dispute, controversy or claim shall be resolved, if
necessary, by binding arbitration, in lieu of a court proceeding, before a panel of three (3)
arbitrators. Each party shall select an arbitrator and the two (2) arbitrators so selected shall
select a third arbitrator. In the event the two (2) arbitrators are unable to agree on a third
arbitrator, the third arbitrator shall be selected by the American Arbitration Association The
arbitration shall be conducted pursuant to the Commercial Arbitration Rules of, but only if
necessary using the administrative services of, the American Arbitration Association. The
parties shall each bear the cost of the arbitrator they selected and shall share the cost of the
third arbitrator. The parties shall otherwise be responsible for their own costs in such
proceedings. Judgment upon an arbitration award may be entered by any court of competent
jurisdiction.
	 
	13.	 	NOTICES

43

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	All notices and other communications required under this Agreement shall be in writing and shall
be deemed to have been duly given (a) on the date of service, if served personally on the person
to whom notice is to be given, (b) on the date of receipt, if sent by telecopier to the person
to whom notice is to be given, or (c) on the date of mailing, if mailed to the party to whom
notice is to be given by first class mail, registered or certified, postage prepaid, and sent to
the respective address set forth in Attachment A, or at such address as may be furnished by
either party to the other in writing.
	 
	14.	 	ASSIGNABILITY

	 	a.	 	This Agreement shall be binding upon and shall inure to the benefit of the
successors and assigns of the parties hereto; provided, however, that this Agreement
and the obligations of the parties hereunder shall not be assignable by any party
without the express prior written consent of the other party, except that a party may
assign the Agreement without consent, including the performance thereof, in whole or in
part to, (1) one or more of its affiliates or subsidiaries, or to (2) the successor to
all or of substantially all of its business and assets, or to (3) any corporation or
other business entity into which it merges or consolidates.
	 
	 	b.	 	Notwithstanding any assignment effected hereunder, the assigning party shall,
following such assignment, continue to be responsible for its obligations hereunder

	15.	 	SALE OR CLOSING OF THE FACILITIES

	 	a.	 	Notwithstanding the other terms of this Agreement, SPMT may in its sole
discretion decide to sell or close the Terminals. In such case, either party may, at
its option, terminate this Agreement upon ninety (90) days advance written notice.
	 
	 	b.	 	[******]

	16.	 	COMPLIANCE WITH LAW

	 	a.	 	The parties hereto, and their customers, carriers and contractors, shall each
be separately and solely responsible for compliance with all laws, rules, regulations,
and ordinances specifically applicable to such party or person, and such party’s or
person’s Products, facilities and equipment.

	17.	 	ADDITIZATION

	 	a.	 	[******]
	 
	 	b.	 	SPMT will follow procedures outlined in Attachment D regarding the injection of
deposit control additives.

	18.	 	RVP COMPLIANCE AND DOCUMENTATION

	 	a.	 	Customer will comply with all applicable federal, state, and local volatility
regulations for Gasoline and Alcohol Blends (including, but not limited to, 40 C.F.R.
Section 80.27 and 80.28) and hereby warrants and certifies that any Product delivered
pursuant to this Agreement is in compliance with the applicable standard when delivered
to the Terminals.
	 
	 	b.	 	SPMT shall manage the facility in such a commercially reasonable manner to
effect the timely regulated seasonal transition of commingled Product in storage as
required by law, and shall comply with all applicable federal, state, and local
volatility regulations for Gasoline and Alcohol Blends with respect to operating the
Terminals(including, but not limited to, 40 C.F.R. Section 80.27 and 80.28)
	 
	 	c.	 	Customer shall fully comply with reasonable directives of SPMT to all
Customer’s sharing storage in order to facilitate this seasonal transition period.
	 
	 	d.	 	SPMT will conduct necessary testing to confirm that Product is in compliance
with all regulatory requirements

44

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	for volatility prior to releasing such Product to the loading rack.

	19.	 	FIXTURES AND EQUIPMENT

	 	a.	 	All fixtures, equipment and appurtenances attached to the tanks, pipeline and
other facilities of the Terminals by either party shall be and remain the property of
SPMT. No such items may be installed or removed by Customer without the prior written
permission of SPMT.
	 
	 	b.	 	Notwithstanding anything to the contrary contained herein, the Terminals and
all equipment and fixtures located at the Terminals are the sole and exclusive property
of SPMT and nothing herein shall be deemed to confer upon Customer any interests in the
aforesaid properties or the right to use, operate, control or direct the operation, or
otherwise exercise any dominion or control over such properties.

	20.	 	DEFAULT AND REMEDIES

	 	a.	 	Should a party to this Agreement default in the prompt performance and
observance of any of the terms or conditions of this Agreement and should such default
continue for thirty (30) or more days after written notice thereof by the
non-defaulting party, then such non-defaulting party shall have the right, at its
option, to terminate this Agreement. In the event of any such default by Customer,
SPMT shall have the right to refuse the Receipts and Shipments of Customer’s Products.
In the event of termination of this Agreement due to Customer’s nonpayment, SPMT shall
have the right to impose a lien upon a quantity of Products sufficient to secure all
past due amounts due SPMT (the relevant price for which shall be the Benchmark Price
defined in Attachment A).
	 
	 	b.	 	Should either party become insolvent, a party to bankruptcy, enter receivership
proceedings, or make an assignment for the benefit of creditors, then the other, to the
extent permitted by law, may (1) terminate this Agreement and collect appropriate
damages accorded to it under law or (2) require specific performance of this Agreement.

	 	 	Upon termination or default of this Agreement, Customer shall, at its own expense, remove
its Products from the Terminal within thirty (30) days with the cooperation of SPMT. If any
Products remain at the Terminal after the thirty (30) day period, SPMT shall have the right
to dispose of such inventory in the manner it deems appropriate, in its sole discretion
without liability to Customer. Such action by SPMT may include, but not limited to,
imposition of a Demurrage Charge (as set forth in Appendix A) or purchase of Products by
SPMT.
	 
	 	 	In the event that SPMT elects to dispose of the remaining Products, Customer shall remain
responsible for all applicable Fees (e.g., Demurrage Fee) as well as any and all reasonable
and properly documented out-of-pocket disposal costs that SPMT may incur with respect to
such remaining Products. All costs of such actions by SPMT, and all fees due and owing from
Customer, shall be netted out against any monies received by SPMT and the balance remitted
to Customer.
	 
	21.	 	DAMAGE OR DESTRUCTION OF THE FACILITIES

	 	a.	 	If any portion of the Terminals is damaged (the “Event”), thus impairing SPMT’s
ability to provide any or all of the Terminal Services, SPMT will have no obligation to
repair the facility.
	 
	 	b.	 	If such damage occurs, SPMT will notify Customer in writing within thirty (30)
days of such occurrence whether the damaged facility will be repaired, and the expected
date of completion of such repairs.

	22.	 	TERMINAL AUDITS

	 	a.	 	SPMT will, during the term this Agreement, periodically conduct third-party health,
environmental and safety audits of the Terminals in accordance with past practices.

	23.	 	ENTIRETY OF AGREEMENT — NO MODIFICATION

	 	a.	 	This instrument contains the entire Agreement between the parties hereto
regarding the receipt, storage and

45

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	delivery of Customer’s Products at the Terminals, and no prior promises, agreements, or
warranties written or verbal shall be of any force or effect unless embodied herein.
	 
	 	b.	 	No modification of this Agreement shall be of any force or effect unless
reduced to writing and signed by authorized representatives of both parties hereto.

	24.	 	NON-WAIVER

	 	a.	 	Neither the failure to assert a right under this Agreement nor a delay in
asserting such a right in a specific instance shall act as a waiver of that right in
such instance or in any subsequent instances.

	25.	 	CAPTIONS

	 	a.	 	The captions appearing in this Agreement are for the convenience of the parties
and shall have no legal effect.

	26.	 	ATTACHMENTS

	 	a.	 	Attachments referenced herein constitute a part of this Agreement and are
incorporated herein and made a part hereof for all purposes.

	27.	 	GOVERNING LAW

	 	a.	 	This Agreement (including all Schedules hereto) and all Amendments hereof shall
be governed by and construed with the internal laws of the Commonwealth of
Pennsylvania; without regard to the application of the principles of conflicts of law.

	28.	 	CONFIDENTIALITY

	 	a.	 	The Parties hereto acknowledge that each may obtain confidential information or
proprietary information (“Confidential Information”) including without limitation,
information referring to Product, business plans, or operations. The Parties shall at
all times keep confidential and not disclose to any third party any Confidential
Information for any purpose other than in performance of the Terminal Services.
Confidential Information will not include information: (1) generally available to the
public through no fault of either Party; (2) in each Parties’ possession in written
form prior to disclosure to or acquisition by either Party hereunder; (3) disclosed to
either Party by a third party owing no secrecy commitment to either Party; or (4)
disclosed pursuant to the order of any court or governmental body (following
appropriate notice to the owner of the confidential information and an adequate
opportunity for such owner to contest such disclosure).

IN WITNESS WHEREOF, this Agreement is executed the date first set forth.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SUNOCO Partners Marketing & Terminals L.P.	 	Sunoco, Inc. (R&M)	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	Sunoco Logistics Partners Operations GP LLC,

its general partner	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Deborah M. Fretz	 	By:	 	/s/ Michael J. Hennigan	 	 
	 

	 	Title:
	 	President
	 	 	 	Title:
	 	Senior Vice President,	 	 
	 

	 	 	 	 	 	 	 	 	 	Supply, Trading, Sales
	 	 
	Date:	 	4/23/07	 	 	 	 	 	and Transportation	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date:	 	5/1/07	 	 

46

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

ATTACHMENT A

	 	 	 
	Terminals:

	 	See ATTACHMENT F
	 
	 	 
	Products:

	 	Refined Petroleum Products, Ethanol
	 
	 	 
	Fees:

	 	The following fees are expressed in Hundredths of a Cent per
Gallon (“Points”). For example, “60.0” Points equals $.00600
per Gallon.
	 
	 	 
	 

	 	Throughput Fees will be applied to each gallon of Product loaded into tank trucks.
	 
	 	 
	 

	 	Additive/Service Fees will be applied to each gallon of Product to which SPMT-owned
additive is injected.
	 
	 	 
	 

	 	A Security Fee of [******] Points will be applied to all gallons loaded at MTSA
regulated facilities during periods of time designated as Code Orange by the U.S.
Homeland Security Office.
	 
	 	 
	 

	 	For storage of Product, either fungible or non- fungible, Customer shall pay a Leased
Space Fee of [******] cents per barrel per month of shell capacity used for said
storage. At Newark only, the Storage Fee will be [******] cents per barrel. Storage
Fees shall be prorated on a daily basis in the case where the tank(s) are not used
for the entire month.

	 	 	 	 	 
	Gasoline

	 	[******] pts
	 	 
	Diesel

	 	[******] pts	 	 
	Jet Fuel

	 	[******] pts	 	 
	Chemicals

	 	[******] pts	 	 
	 
	 	 	 	 
	TMIX

	 	[******] pts	 	 
	Kerosene

	 	[******] pts	 	 
	Ethanol (neat)

	 	[******] pts	 	 
	 
	 	 	 	 
	Inwood
	 	 	 	 
	Gasoline

	 	[******] pts	 	 
	Diesel

	 	[******] pts	 	 
	Jet Fuel

	 	[******] pts	 	 
	Kerosene

	 	[******] pts	 	 
	TMIX

	 	[******] pts	 	 
	Ethanol (neat)

	 	[******] pts	 	 

	 	 	 	 	 
	Filtering:

	 	 
	 	 
	 
	 	 	 	 
	Jet Fuel:

	 	 	 	[******] pts
	 
	 	 	 	 
	Gasoline:

	 	 	 	Customer will reimburse SPMT for costs
associated with gasoline filter change-outs
(made only at Customer’s request) at
Twin Oaks, Malvern, Willow Grove,
Piscataway and Newark terminals.

47

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

Additives:

	 	 	 
	Gasoline Additives
	 	 
	Sunoco Branded/ Distributor/ Wholesale:

	 	[******] pts + Additive Cost
	 
	 	 
	Diesel Additives:
	 	 
	Cold Flow/
	 	 
	Pour Point/ premium diesel additives
	 	 
	Sunoco Branded/ Distributor/ Wholesale:

	 	[******] pts + Additive Cost
	 
	 	 
	Cetane Improver
	 	 
	Sunoco Branded/ Distributor/ Wholesale:

	 	[******] pts + Additive Cost
	 
	 	 
	Lubricity:

	 	[******] pts
	 
	 	 
	Marker:

	 	TBD
	 
	 	 
	Dye:

	 	[******]

	 	 	 
	Escalation:

	 	All Fees set forth herein shall be subject to annual escalation at a rate equal to the Consumer Price Index as
published by the United States government annually. Said escalation shall occur on January 1 of each year, commencing
January 1, 2008, and shall be based on the 12 most recently available months of data.
	 
	 	 
	Benchmark Price:

	 	Platts Low + Actual Transportation; however, in the case of products,
including ethanol, which are purchased for resale, the Benchmark Price shall
be Customer’s Actual Cost + Actual Transportation.
	 
	 	 
	Invoicing Procedure:

	 	SPMT will invoice the Customer monthly for the preceding calendar month activity.
	 
	 	 
	Payment Terms:

	 	Customer will pay SPMT 20 days from date of invoice.
	 
	 	 
	Normal Business Hours:

	 	24 hours/day, 7 days/week

	 	 	 	 	 
	Method of Receipts and Deliveries:

	 	Receipts:
	 	Pipeline/ Marine Vessel/ Rail/ Truck/In-Tank

Transfer
	 
	 

	 	Shipments:
	 	Tank Truck/Marine/In-Tank Transfer

 

	 	 	 	 	 
	Notices:
	 	 	 	 
	 
	 	 	 	 
	 

	 	Sunoco Partners Marketing & Terminals L. P.
	 	Sunoco, Inc. (R&M)
	 

	 	Business Development Terminals & Pipelines
	 	Manager
	 

	 	Mellon Bank Center; Suite LL
	 	Distribution Planning
	 

	 	1735 Market Street
	 	1735 Market Street
	 

	 	Philadelphia, PA 19103
	 	Philadelphia, PA 19103
	 
	 	 	 	 
	 

	 	With a copy to:	 	 

48

 

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED
MATERIAL IS MARKED WITH [******] AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

	 	 	 	 	 
	 

	 	General Counsel
	 	 
	 

	 	Sunoco Logistics Partners L.P.	 	 
	 

	 	Mellon Bank Center, Suite LL	 	 
	 

	 	1735 Market Street	 	 
	 

	 	Philadelphia, PA 19103	 	 

49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]