Document:

exv10w4

 

EXHIBIT 10.4

 

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

CONTRIBUTION, CONVEYANCE AND ASSUMPTION

AGREEMENT

 

 

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     This Contribution, Conveyance and Assumption Agreement, dated as of January 31, 2006, is
entered into by and among F. WILLIAM GRUBE, an individual (“Grube”), JANET KRAMPE GRUBE, an
individual (“Grube Wife”), JANET KRAMPE GRUBE GRANTOR RETAINED ANNUITY TRUST DATED JANUARY 31,
2002, an Indiana trust (“Grube Trust I”), JANET KRAMPE GRUBE GRANTOR RETAINED ANNUITY TRUST
DATED MARCH 18, 2004, an Indiana trust (“Grube Trust II”), FRED M. FEHSENFELD, JR., an
individual (“Fehsenfeld, Jr.”), MILDRED L. FEHSENFELD IRREVOCABLE INTERVIVOS TRUST FOR THE
BENEFIT OF FRED MEHLERT FEHSENFELD, JR. AND HIS ISSUE, an Indiana trust (“Fehsenfeld Trust
I”), MAGGIE FEHSENFELD TRUST NUMBER 106 FOR THE BENEFIT OF FRED MEHLERT FEHSENFELD, JR. AND HIS
ISSUE, an Indiana trust (“Fehsenfeld Trust II”), CALUMET, INCORPORATED, an Indiana
corporation (“Calumet Inc.”), THE HERITAGE GROUP, an Indiana general partnership
(“THG”), CALUMET GP, LLC, a Delaware limited liability company (“GP LLC”), CALUMET
SPECIALTY PRODUCTS PARTNERS, L.P., a Delaware limited partnership (“MLP”), CALUMET
OPERATING, LLC, a Delaware limited liability company (“OLLC”), CALUMET LUBRICANTS CO.,
LIMITED PARTNERSHIP, an Indiana limited partnership (“Calumet LP”), CALUMET SALES COMPANY
INCORPORATED, a Delaware corporation (“Reseller”), CALUMET HOLDING, LLC, a Delaware limited
liability company (“Holding”), CALUMET PENNSYLVANIA, LLC, a Delaware limited liability
company (“Calumet PA”), CALUMET LP GP, LLC, a Delaware limited liability company
(“Calumet LP GP”), and CALUMET SHREVEPORT PACKAGING, LLC, an Indiana limited liability
company (“Shreveport Packaging”). The above-named entities are sometimes referred to in
this Agreement each as a “Party” and collectively as the “Parties.” Capitalized
terms used herein shall have the meanings assigned to such terms in Section 1.1.

RECITALS:

     WHEREAS, THG, Calumet Inc., Grube, Fehsenfeld, Jr., Fehsenfeld Trust I, Fehsenfeld Trust II
and GP LLC have formed MLP pursuant to the Delaware Revised Uniform Limited Partnership Act (the
“Delaware LP Act”) for the purpose of engaging in any business activity that is approved by
GP LLC and that lawfully may be conducted by a limited partnership organized pursuant to the
Delaware LP Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, each of
the following actions have been taken prior to the date hereof:

     1. THG, Fehsenfeld, Jr. and Grube (collectively, the “Organizational GP
Owners”) formed GP LLC, under the terms of the Delaware Limited Liability Company Act
(the “Delaware LLC Act”), to which (i) THG contributed $510.00 in exchange for a 51%
member interest in GP LLC, (ii) Fehsenfeld, Jr. contributed $190.00 in exchange for a 19%
member interest in GP LLC, and (iii) Grube contributed $300.00 in exchange for a
30% member interest in GP LLC (such member interests are, collectively, the
“Organizational GP Interests”).
 

 

 

     2. THG, Calumet Inc., Grube, Fehsenfeld, Jr., Fehsenfeld Trust I, Fehsenfeld Trust II
and GP LLC formed MLP (collectively, the “Organizational MLP Owners”), under the
terms of the Delaware LP Act, to which (i) THG contributed $555.66 in exchange for a 55.57%
limited partner interest in MLP, (ii) Calumet Inc. contributed $98.00 in exchange for a
9.80% limited partner interest in MLP, (iii) Grube contributed $203.84 in exchange for a
20.38% limited partner interest in MLP, (iv) Fehsenfeld, Jr. contributed $24.50 in exchange
for a 2.45% limited partner interest in MLP, (v) Fehsenfeld Trust I contributed $49.00 in
exchange for a 4.90% limited partner interest in MLP, (vi) Fehsenfeld Trust II contributed
$49.00 in exchange for a 4.90% limited partner interest in MLP, and (vii) THG (on behalf of
GP LLC) contributed $20.00 in exchange for a 2% general partner interest in MLP (such
limited partner interests are, collectively, the “Organizational MLP Interests”).

     3. MLP formed OLLC, under the terms of the Delaware LLC Act, and contributed $1,000 to
OLLC in exchange for all of the member interests in OLLC.

     4. Calumet LP formed Reseller, under the terms of the Delaware General Corporation Law
(the “DGCL”), and contributed $1,000 to Reseller in exchange for all of the common
stock of Reseller.

     5. Calumet Inc. formed Calumet LP GP, under the terms of the Delaware LLC Act, and
contributed $1,000 to Calumet LP GP in exchange for all of the member interests in Calumet
LP GP.

     6. Calumet LP formed Calumet PA, under the terms of the Delaware LLC Act, and
contributed $1,000 to Calumet PA in exchange for all of the member interests in Calumet PA.

     7. Calumet LP formed Holding, under the terms of the Delaware LLC Act, and contributed
$1,000 to Holding in exchange for all of the member interests in Holding.

     8. Calumet LP and certain of its subsidiaries entered into the Term Loan Facility and
the Revolving Credit Facility and borrowed $225,000,000 under the Term Loan Facility and
$78,300,000 under the Revolving Credit Facility and retired and repaid all amounts
outstanding under the National City Facility, the Old Credit Facility and the Old Notes.

     9. Calumet LP contributed $93,352,531.01 of the amount it borrowed under the Revolving
Credit Facility to Calumet Shreveport, LLC (“Shreveport”) as a capital contribution
(the “Shreveport Contribution”).

     10. Shreveport used the Shreveport Contribution to retire and repay all of its
outstanding indebtedness under the Shreveport Term Loan Facility and the Shreveport
Revolving Credit Facility.

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     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following shall occur:

     1. Calumet LP will convey all of its right, title and interest in the Non-MLP Assets to
Calumet PA as a capital contribution.

     2. Calumet LP will convey all of its right, title and interest in the Non-Qualifying
Income Assets to Reseller as a capital contribution.

     3. Calumet LP will convey all of its member interest in each of (i) Calumet PA (such
membership interest, the “Calumet PA Interest”) and (ii) Shreveport Packaging, (such
membership interest, the “Shreveport Packaging Interest”) to Holding as a capital
contribution.

     4. Calumet LP will distribute all of its member interest in Holding (the “Holding
Interest”) to Grube Wife, Grube Trust I, Grube Trust II, Fehsenfeld, Jr., Fehsenfeld
Trust I, Fehsenfeld Trust II, Calumet Inc. and THG (collectively, the “Calumet
Owners”) as follows:

	 	(a)	 	Grube Wife will receive a 0.197% interest in the Holding Interest;
	 
	 	(b)	 	Grube Trust I will receive a 18.105% interest in the Holding Interest;
	 
	 	(c)	 	Grube Trust II will receive a 2.498% interest in the Holding Interest;
	 
	 	(d)	 	Fehsenfeld, Jr. will receive a 2.5% interest in the Holding Interest;
	 
	 	(e)	 	Fehsenfeld Trust I will receive a 5.0% interest in the Holding Interest;
	 
	 	(f)	 	Fehsenfeld Trust II will receive a 5.0% interest in the Holding Interest;
	 
	 	(g)	 	Calumet Inc. will receive a 10.0% interest in the Holding Interest; and
	 
	 	(h)	 	THG will receive a 56.7% interest in the Holding Interest.

     5. Calumet Inc. will convey its general partner interest in Calumet LP (the
“Calumet LP GP Interest”) to Calumet LP GP as a capital contribution.

     6. Grube Trust I, Fehsenfeld Trust I, Fehsenfeld Trust II and THG (collectively, the
“New GP Owners”) will convey a limited partner interest in Calumet LP with an
aggregate value equal to 2% of the equity value of MLP at the closing of the transactions
contemplated by this Agreement (the “Interest”) to GP LLC as a capital contribution
(of which 32.4% of such Interest shall be contributed by Grube Trust I, 6.25% of such
Interest shall be contributed by Fehsenfeld Trust I, 6.25% of such Interest shall be
contributed by Fehsenfeld Trust II and 55.1% of such Interest shall be contributed by THG).

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     7. Fehsenfeld Trust I and Fehsenfeld Trust II will each contribute $445,006.50,
respectively in cash to GP LLC as capital contributions in exchange for additional member
interests in GP LLC, resulting in GP LLC being owned as follows:

	 	(a)	 	THG will own a 51% member interest;
	 
	 	(b)	 	Grube Trust I will own a 30.0% member interest;
	 
	 	(c)	 	Fehsenfeld Trust I will own a 9.5% member interest; and
	 
	 	(d)	 	Fehsenfeld Trust II will own a 9.5% member interest.

     8. The Organizational GP Interests of the Organizational GP Owners will be redeemed and
cancelled and $1,000 shall thereupon be paid to the Organizational GP Owners in proportion
to their initial capital contributions.

     9. GP LLC will convey the Interest to MLP in exchange for (a) 515,857 General Partner
Units, which represents a continuation of its 2% general partner interest in MLP, and (b)
the issuance of the IDRs.

     10. In connection with MLP’s initial underwritten public offering (the
“Offering”), Messrs. Fred M. Fehsenfeld Sr., Mac Fehsenfeld and Frank B. Fehsenfeld
(collectively, the “Fehsenfeld Investors”) will contribute an aggregate
$14,998,249.50 in cash to MLP in exchange for an aggregate 750,100 Common Units (at a price
per Common Unit of $19.995) representing a 2.9% interest in MLP.

     11. The Calumet Owners (other than Calumet Inc.) will convey their remaining limited
partner interests in Calumet LP to MLP in exchange for (a) 5,169,129 Common Units
representing a 20.04% limited partner interest in MLP, of which (i) Grube Wife will receive
11,660 Common Units, (ii) Grube Trust I will receive 1,020,456 Common Units, (iii) Grube
Trust II will receive 147,853 Common Units, (iv) Fehsenfeld, Jr. will receive 147,973 Common
Units, (v) Fehsenfeld Trust I will receive 286,077 Common Units, (vi) Fehsenfeld Trust II
will receive 286,077 Common Units and (vii) THG will receive 3,269,033 Common Units, and (b)
11,723,599 Subordinated Units representing a 45.45% limited partner interest in MLP, of
which (i) Grube Wife will receive 26,445 Subordinated Units, (ii) Grube Trust I will
receive 2,314,396 Subordinated Units, (iii) Grube Trust II will receive 335,332 Subordinated
Units, (iv) Fehsenfeld, Jr. will receive 335,600 Subordinated Units, (v) Fehsenfeld Trust I
will receive 648,825 Subordinated Units, (vi) Fehsenfeld Trust II will receive 648,825
Subordinated Units, and (vii) THG will receive 7,414,176 Subordinated Units.

     12. Calumet Inc. will convey its member interest in Calumet LP GP to MLP in exchange
for (a) 591,886 Common Units representing a 2.29% limited partner interest in MLP and (b)
1,342,401 Subordinated Units representing a 5.20% limited partner interest in MLP.

     13. The Organizational MLP Interests of the Organizational MLP Owners will be redeemed
and cancelled and $980 shall thereupon be paid to the Organizational MLP
Owners in proportion to their initial capital contributins and $20
will be paid to GP LLC

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     14. In connection with the Offering, the public, through the Underwriters, will
contribute $122,547,850 in cash to MLP, less the Underwriters’ discount of $7,965,610.25
(excluding structuring fees of $612,739.25 to be paid to Goldman, Sachs & Co. and $2,000,000
to be paid to Petrie, Parkman & Co., Inc.), in exchange for 5,699,900 Common Units
representing a 22.10% limited partner interest in MLP.

     15. MLP will (a) pay or cause to be paid approximately $6,612,739.25 of offering
expenses (excluding the Underwriters’ discount, but including structuring fees of $612,739
to be paid to Goldman, Sachs & Co. and $2,000,000 to be paid to Petrie, Parkman & Co., Inc.)
in connection with the Offering of the Common Units and (b) contribute the balance of the
Offering proceeds to Calumet LP as a capital contribution (of which 10% of such contribution
will be made to Calumet LP on behalf of Calumet LP GP).

     16. MLP will convey its limited partner interest in Calumet LP and its member interest
in Calumet LP GP to OLLC as a capital contribution.

     17. Calumet LP will repay approximately (a) $108,000,000 of outstanding indebtedness
under the Term Loan Facility and (b) $15,000,000 of outstanding indebtedness under the
Revolving Credit Facility.

     18. To the extent the Underwriters exercise their over-allotment option to purchase up
to 854,985 Common Units (the “Over-Allotment Option”), MLP will use the net proceeds
to repay up to approximately $17,187,335 of Calumet LP’s additional outstanding indebtedness
under the Term Loan Facility.

     19. The organizational documents of the Parties will be amended and restated as
necessary to reflect the applicable matters set forth above and as contained in this
Agreement.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Terms. The following defined terms shall have the meanings given below:

     “Agreement” means this Contribution, Conveyance and Assumption Agreement.

     “Code” means Internal Revenue Code of 1986, as amended.

     “Common Units” has the meaning as set forth in the MLP Agreement.

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     “Effective Time” means 12:01 a.m. Eastern Standard Time on January 31, 2006.

     “General Partner Units” has the meaning as set forth in the MLP Agreement.

     “IDR” has the same meaning as “Incentive Distribution Right” as set forth in
the MLP Agreement.

     “MLP” has the meaning as set forth in the opening paragraph of this Agreement.

     “MLP Agreement” means the First Amended and Restated Agreement of Limited
Partnership of MLP, as it may be amended, supplemented or restated from time to time.

     “National City Facility” means (i) the Amended and Restated Credit Agreement
dated as of February 23, 2003, among THG and certain of its affiliates, as Borrowers, and
National City Bank of Indiana (“National City”), as Administrative Agent and (ii)
the Amended and Restated Guarantee dated as of February 23, 2003, among Calumet LP and
certain other parties, as Guarantors, and National City, as Administrative Agent.

     “Non-MLP Assets” means those assets set forth on Schedule A.

     “Non-MLP Liabilities” means all liabilities arising out of or related to the
ownership of the Non-MLP Assets to the extent arising or accruing on and after the Effective
Time, whether known or unknown, accrued or contingent, and whether or not reflected on the
books and records of Calumet LP or its affiliates.

     “Non-Qualifying Income Assets” means those assets set forth on Schedule
B and such other assets that do not generate “qualifying income” as defined in Section
7704 of the Code.

     “Non-Qualifying Income Liabilities” means all liabilities arising out of or
related to the ownership of the Non-Qualifying Income Assets to the extent arising or
accruing on and after the Effective Time, whether known or unknown, accrued or contingent,
and whether or not reflected on the books and records of Calumet LP or its affiliates.

     “Old Credit Facility” means that $180,000,000 revolving promissory note dated
as of June 30, 2005 by and among Calumet LP, as Borrower, and The Heritage Group (d/b/a
Asphalt Refining Company), as Lender.

     “Old Notes” means the $11,400,000 million in outstanding notes issued to The
Heritage Group (d/b/a Asphalt Refining Company) by Calumet LP.

     “Partnership Group” means the MLP and any Subsidiary.

     “Revolving Credit Facility” means that $225,000,000 Revolving Credit Agreement
dated as of December 9, 2005, by and among Calumet LP, Shreveport, Calumet Shreveport
Lubricants & Waxes, LLC, an Indiana limited liability company

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(“Shreveport L&W”), and Calumet Shreveport Fuels, LLC, an Indiana limited liability company (“Shreveport
Fuels”), as Borrowers, Bank of America, N.A., as Administrative Agent and Lender, and
the other Lenders party thereto.

     “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-128880) filed by MLP relating to the Offering.

     “Shreveport Term Loan Facility” means that $40,000,000 Term Loan Agreement
dated as of October 25, 2004, by and among Shreveport, as Borrower, Shreveport L&W and
Shreveport Fuels, as Guarantors, and Lehman Commercial paper Inc. as Administrative Agent
and Lender.

     “Shreveport Revolving Credit Facility” means that $125,000,000 Revolving Credit
Agreement dated as of October 25, 2004, by and among Shreveport, as Borrower, Shreveport L&W
and Shreveport Fuels, as Guarantors, LaSalle Business Credit, LLC as Administrative Agent
and Lender, and the others Lenders party thereto.

     “Subordinated Units” has the meaning as set forth in the MLP Agreement.

     “Subsidiary” shall have the meaning given to it in the MLP Agreement.

     “Term Loan Facility” means that $225,000,000 Term Loan Agreement dated as of
December 9, 2005, by among Calumet LP, as Borrower, Calumet LP’s subsidiaries from time to
time party thereto, as Guarantors, and Bank of America, N.A., as Administrative Agent and
Lender.

     “Underwriters” means Goldman, Sachs & Co., Deutsche Banc Securities Inc.,
Raymond James & Associates, Inc. and Petrie Parkman & Co., Inc.

ARTICLE II

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

     Section 2.1 Contribution of Non-MLP Assets by Calumet LP to Calumet PA. Calumet LP
hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to
Calumet PA, its successors and assigns, for its and their own use forever, all of its right, title
and interest in and to the Non-MLP Assets, and Calumet PA hereby accepts such assets as a
contribution to the capital of Calumet PA.

TO HAVE AND TO HOLD the Non-MLP Assets unto Calumet PA, its successors and assigns, together with
all and singular the rights and appurtenances thereto in any way belonging, subject, however, to
the terms and conditions stated in this Agreement, forever.

     Section 2.2 Contribution of Non-Qualifying Income Assets by Calumet LP to Reseller.
Calumet LP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to Reseller, its successors and assigns, for its and their own use forever, all of its
right, title and interest in and to the Non-Qualifying Income Assets, and Reseller hereby accepts
such assets as a contribution to the capital of Reseller.

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TO HAVE AND TO HOLD the Non-Qualifying Income Assets unto Reseller, its successors and assigns,
together with all and singular the rights and appurtenances thereto in any way belonging, subject,
however, to the terms and conditions stated in this Agreement, forever.

     Section 2.3 Contribution of Calumet PA Interest and Shreveport Packaging Interest by
Calumet LP. Calumet LP hereby grants, contributes, bargains, conveys, assigns, transfers,
sets over and delivers to Holding, its successors and assigns, for its and their own use forever,
all of its right title and interest in and to each of the (i) Calumet PA Interest and (ii)
Shreveport Packaging Interest, and Holding hereby accepts such Calumet PA Interest and Shreveport
Packaging Interest as a contributions to the capital of Holding.

     Section 2.4 Distribution of Holding Interest by Calumet LP. Calumet LP hereby
distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers all of its
right, title and interest in and to (i) 0.197% of the Holding Interest to Grube Wife, (ii) 18.105%
of the Holding Interest to Grube Trust I, (iii) 2.498% of the Holding Interest to Grube Trust II,
(iv) 2.5% of the Holding Interest to Fehsenfeld, Jr., (v) 5.0% of the Holding Interest to
Fehsenfeld Trust I, (vi) 5.0% of the Holding Interest to Fehsenfeld Trust II, (vii) 10.0% of the
Holding Interest to Calumet Inc., (viii) 56.7% of the Holding Interest to THG, and each of Grube
Wife, Grube Trust I, Grube Trust II, Fehsenfeld, Jr, Fehsenfeld Trust I, Fehsenfeld Trust II,
Calumet Inc. and THG hereby accepts its respective percentage of the Calumet PA Interest as a
distribution.

     Section 2.5 Contribution of Calumet LP GP Interest by Calumet Inc. to Calumet LP GP.
Calumet Inc. hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to Calumet LP GP, its successors and assigns, for its and their own use forever, all of
its right, title and interest in and to the Calumet LP GP Interest as a capital contribution, and
Calumet LP GP hereby accepts the Calumet LP GP Interest as a contribution to the capital of Calumet
LP GP.

     Section 2.6 Contribution of the Interest by New GP Owners to GP LLC. The New GP
Owners hereby grant, contribute, bargain, convey, assign, transfer, set over and deliver to GP LLC,
its successors and assigns, for its and their own use forever, the Interest as a capital
contribution (of which 32.4% of such Interest shall be contributed by Grube Trust I, 6.25% of such
Interest shall be contributed by Fehsenfeld Trust I, 6.25% of such Interest shall be contributed by
Fehsenfeld Trust II and 55.1% of such Interest shall be contributed by THG), and GP LLC hereby
accepts the Interest as a contribution to the capital of GP LLC.

     Section 2.7 Contribution of Additional Cash by Fehsenfeld Trust I and Fehsenfeld Trust II
to GP LLC. Fehsenfeld Trust I and Fehsenfeld Trust II hereby grant,
contribute, bargain, convey, assign, transfer, set over and deliver to GP LLC, its successors
and assigns, for its and their own use forever, $445,006.50 and $445,006.50, respectively as a
capital contribution and to increases their respective interests in GP LLC to 9.5% and 9.5%, and GP
LLC hereby accepts the cash consideration as a contribution to the capital of GP LLC.

     Section 2.8 Redemption of Organizational GP Interest. Calumet GP hereby redeems the
Organizational GP Interest from the Organizational GP Owners and retires the

Organizational GP Interest in exchange for a payment in cash to the Organizational GP Owners equal to an aggregate
$1,000.

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     Section 2.9 Contribution of the Interest by GP LLC to MLP. GP LLC hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors
and assigns, for its and their own use forever, the Interest in exchange for (a) 515,857 General
Partner Units, which represent a continuation of its 2% general partner interest in MLP, and (b)
the issuance of the IDRs, and MLP hereby accepts the Interest as a contribution to the capital of
MLP.

     Section 2.10 Fehsenfeld Investors Cash Contribution. The Parties acknowledge an
aggregate cash contribution by the Fehsenfeld Investors to MLP of an aggregate $14,998,249.50 in
exchange for an aggregate 750,100 Common Units representing a 2.91% interest in MLP.

     Section 2.11 Contribution of Remaining Limited Partner Interests in Calumet LP by the
Calumet Owners (other than Calumet Inc.) to MLP. The Calumet Owners (other than Calumet Inc.)
hereby grant, contribute, bargain, convey, assign, transfer, set over and deliver to MLP, its
successors and assigns, for its and their own use forever, all remaining limited partner interests
in Calumet LP in exchange for (a) 5,169,129 Common Units representing a 20.04% limited partner
interest in MLP, of which (i) Grube Wife will receive 11,660 Common Units, (ii) Grube Trust I will
receive 1,020,456 Common Units, (iii) Grube Trust II will receive 147,853 Common Units, (iv)
Fehsenfeld, Jr. will receive 147,973 Common Units, (v) Fehsenfeld Trust I will receive 286,077
Common Units, (iv) Fehsenfeld Trust II will receive 286,077 Common Units and (vii) THG will receive
3,269,033 Common Units, and (b) 11,723,599 Subordinated Units representing a 45.45% limited partner
interest in MLP, of which (i) Grube Wife will receive 26,455 Subordinated Units, (ii) Grube Trust I
will receive 2,314,396 Subordinated Units, (iii) Grube Trust II will receive 335,332 Subordinated
Units, (iv) Fehsenfeld, Jr. will receive 335,600 Subordinated Units, (v) Fehsenfeld Trust I will
receive 648,825 Subordinated Units, (vi) Fehsenfeld Trust II will receive 648,825 Subordinated
Units, and (vii) THG will receive 7,414,176 Subordinated Units, and MLP hereby accepts such limited
partner interests in Calumet LP as a contribution to the capital of MLP.

     Section 2.12 Contribution of Interest in Calumet LP GP by Calumet Inc. to MLP
Calumet Inc. hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and
delivers to MLP, its successors and assigns, for its and their own use forever, all its member
interest in Calumet LP GP in exchange for (a) 591,886 Common Units representing a 2.29% limited
partner interest in MLP and (b) 1,342,401 Subordinated Common Units representing a 5.20% limited
partner interest in MLP, and MLP hereby accept such member interest as a contribution to the
capital of MLP.

     Section 2.13 Redemption of Organizational MLP Interest; Distribution to GP. MLP hereby
redeems the Organizational MLP Interest from the Organizational MLP Owners and retires the
Organizational MLP Interest in exchange for a payment in cash to the Organizational MLP Owners
equal to an aggregate $980. MLP hereby distributes $20 to GP LLC.

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     Section 2.15 Public Cash Contribution. The Parties acknowledge a cash contribution by
the public through the Underwriters to MLP of $122,547,850 ($114,582,239.75 after the Underwriters’
discount of $7,965,610.25 (excluding structuring fees of $612,739.25 to be paid to Goldman, Sachs &
Co. and $2,000,000 to be paid to Petrie, Parkman & Co., Inc.)) in exchange for 5,699,900 Common
Units representing a 22.10% interest in MLP.

     Section 2.16 Payment of Transaction Expenses and Contribution of Remaining Proceeds by
MLP. The Parties acknowledge (a) the payment by MLP, in connection with the transactions
contemplated hereby, of transaction expenses in the amount of approximately $6,612,739.25
(exclusive of the Underwriters’ discount, but including structuring fees of $612,739.25 to be paid
to Goldman, Sachs & Co. and $2,000,000 to be paid to Petrie, Parkman & Co., Inc.) and (b) the
contribution by MLP of approximately $127,000,000 to Calumet LP (of which 10% is deemed to be
contributed on behalf of Calumet LP GP).

     Section 2.17 Contribution of Interests in Calumet LP and Calumet LP GP by MLP to OLLC.
MLP hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to
OLLC, its successors and assigns, for its and their own use forever, all its limited partner
interest in Calumet LP and all its member interest in Calumet LP GP, and OLLC hereby accepts such
limited partner interest in Calumet LP and such member interest in Calumet LP GP as a contribution
to the capital of OLLC.

     Section 2.18 Payment of Outstanding Indebtedness by Calumet LP. The parties
acknowledge (a) the repayment by Calumet LP of approximately $108,000,000 of outstanding
indebtedness under the Term Loan Facility and (b) the repayment by Calumet LP of approximately
$15,000,000 of outstanding indebtedness under the Revolving Loan Facility.

     Section 2.19 Admission of Calumet LP GP as General Partner of Calumet LP. Each of the
partners of Calumet LP, all of which are parties to this Agreement, hereby expressly consents to
the admission of Calumet LP GP as the new general partner of Calumet LP and to the withdrawal of
Calumet Inc. as the general partner, as a result of the assignment and contribution described in
Section 2.5. Calumet LP GP assumes Calumet Inc.’s liabilities under Indiana Code 23-16-3-8, 23-16-6
and 23-16-7, and Calumet Inc. is released from those liabilities. The partners of Calumet LP direct
the general partner of Calumet LP to take any and all actions necessary or advisable to give effect
to the admission of the new general partner of Calumet LP, including but not limited to filing an
amended and restated Certificate of Limited Partnership with the Secretary of State of the State of
Indiana and entering into an amended and restated limited partnership agreement reflecting all the
transfers and changes effected by this Agreement.

     Section 2.20 Admission of New Limited Partner of Calumet LP. Each of the limited
partners of Calumet LP has transferred and conveyed its entire limited partnership interest either
to GP LLC or to MLP, with the agreement and understanding that these interests would be further
conveyed by GP LLC to MLP, and then by MLP to OLLC, in the manner described in Sections 2.6, 2.9,
2.11, 2.12 and 2.15 of this Agreement. All the partners of Calumet LP, including the general
partner, intend and expressly consent to the admission of OLLC as the limited partner of Calumet LP
and to the withdrawal of each Calumet Owner (other than Calumet Inc.) as a limited partner. OLLC
assumes the liabilities of the assigning limited partners under Indiana Code 23-16-3-8, 23-16-6 and
23-16-7, and each of the assigning limited partners is

10

 

released from those liabilities. The
partners direct the general partner to take any and all actions necessary or advisable to give
effect to the admission of the new limited partner, including but not limited to entering into an
amended and restated limited partnership agreement reflecting all the transfers and changes
effected by this Agreement.

     Section 2.21 Intent to Admit Assignees as New Partners and/or Members. Pursuant to
this Agreement, several parties assign and convey ownership interests in limited partnerships or
limited liability companies, and in each case, the assignor and assignee intend for the assignee to
be admitted as a partner to the partnership or admitted as a member of the limited liability
company, as applicable. To the extent required by any organic document of the organization, or
required by law, each partner and member of any organization affected by an assignment and
conveyance of an ownership interest described in this Agreement (all of which partners and members
are also parties to this Agreement) hereby consents to the admission of the assignee as a partner
to the partnership (whether general or limited) or as a member of a limited liability company, as
applicable. The parties agree to take any and all other actions, including execution of amendments
or other documents, that may be necessary or advisable to carry out the intent and purposes of this
Section.

ARTICLE III

ASSUMPTIONS OF CERTAIN LIABILITIES

     Section 3.1 Assumption of Non-MLP Liabilities by Calumet PA. In connection with the
contribution and transfer by Calumet LP of the Non-MLP Assets to Calumet PA, as set forth in
Section 2.1 above, Calumet PA hereby assumes and agrees to duly
and timely pay, perform and discharge the Non-MLP Liabilities, to the full extent that Calumet
LP has been heretofore or would have been in the future obligated to pay, perform and discharge the
Non-MLP Liabilities were it not for the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and discharge the
Non-MLP Liabilities shall not (a) increase the obligation of Calumet PA with respect to the Non-MLP
Liabilities beyond that of Calumet LP, (b) waive any valid defense that was available to Calumet LP
with respect to the Non-MLP Liabilities or (c) enlarge any rights or remedies of any third party,
if any, under any of the Non-MLP Liabilities.

     Section 3.2 Assumption of Non-Qualifying Income Liabilities by Reseller. In
connection with the contribution and transfer by Calumet LP of the Non-Qualifying Income Assets to
Reseller, as set forth in Section 2.2 above, Reseller hereby assumes and agrees to duly and timely
pay, perform and discharge the Non-Qualifying Income Liabilities, to the full extent that Calumet
LP has been heretofore or would have been in the future obligated to pay, perform and discharge the
Non-Qualifying Income Liabilities were it not for the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay, perform and discharge
the Non-Qualifying Income Liabilities shall not (a) increase the obligation of Reseller with
respect to the Non-Qualifying Income Liabilities beyond that of Calumet LP, (b) waive any valid
defense that was available to Calumet LP with respect to the Non-Qualifying Income Liabilities or
(c) enlarge any rights or remedies of any third party, if any, under any of the Non-Qualifying
Income Liabilities.

11

 

ARTICLE IV

ADDITIONAL TRANSACTIONS

     Section 4.1 Over-Allotment Option. The Parties acknowledge that in the event the
Underwriters exercise their Over-Allotment Option, (i) MLP shall contribute the net proceeds
therefrom to OLLC; (ii) OLLC shall then contribute the net proceeds to Calumet LP (of which 10% of
such contribution will be made to Calumet LP on behalf of Calumet LP GP); and (iii) Calumet LP
shall use the net proceeds to repay approximately $17,187,335 of additional outstanding
indebtedness under the Term Loan Facility.

ARTICLE V

TITLE MATTERS

     Section 5.1 Encumbrances.

     (a) Except to the extent provided in any other document executed in connection with this
Agreement or the Offering, the contribution and conveyance (by operation of law or otherwise) of
the various physical assets owned as reflected in this Agreement (collectively, the
“Assets”) are made expressly subject to all recorded and unrecorded liens (other than
consensual liens), encumbrances, agreements, defects, restrictions, adverse claims and all laws, rules,
regulations, ordinances, judgments and orders of governmental authorities or tribunals having or
asserting jurisdictions over the Assets and operations conducted thereon or in connection
therewith, in each case to the extent the same are valid and enforceable and affect the Assets,
including all matters that a current survey or visual inspection of the Assets would reflect.

     (b) To the extent that certain jurisdictions in which the Assets are located may require that
documents be recorded in order to evidence the transfers of title reflected in this Agreement, then
the provisions set forth in Section 5.1(a) immediately above shall also be applicable to the
conveyances under such documents.

     Section 5.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

     (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS
MADE, DOES NOT MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER,
WHETHER EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE,
NATURE, QUALITY OR CONDITION OF THE ASSETS, INCLUDING THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL
CONDITION OF THE ASSETS GENERALLY OR INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR
OTHER MATTERS ON THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF
THE ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF
OR BY THE ASSETS OR THEIR OPERATION WITH ANY LAWS (INCLUDING ANY ZONING,

12

 

ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE HABITABILITY,
MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS.
EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS
AGREEMENT OR THE OFFERING, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO
INSPECT THE RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE
RESPECTIVE ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES.
EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS
AGREEMENT OR THE OFFERING, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR
WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS FURNISHED BY ANY AGENT,
EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING, EACH OF THE PARTIES ACKNOWLEDGES THAT
TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN
IS MADE IN AN “AS IS”, “WHERE IS” CONDITION WITH ALL FAULTS, AND THE ASSETS ARE CONTRIBUTED AND
CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH
CONTRIBUTION AND CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION
HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE
EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,
WITH RESPECT TO THE ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR
OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE OFFERING.

     (b) The contributions of the Assets made under this Agreement are made with full rights of
substitution and subrogation of the respective Parties receiving such contributions, and all
persons claiming by, through and under such Parties, to the extent assignable, in and to all
covenants and warranties by the predecessors-in-title of the Parties contributing the Assets, and
with full subrogation of all rights accruing under applicable statutes of limitation and all rights
of action of warranty against all former owners of the Assets.

     (c) Each of the Parties agrees that the disclaimers contained in this Section 5.2 are
“conspicuous” disclaimers. Any covenants implied by statute or law by the use of the words
“grant,” “contribute,” “convey,” “bargain,” “assign,” “transfer,” “deliver,” “sell” or “set over”
or any of them or any other words used in this Agreement are hereby expressly disclaimed, waived or
negated.

     (d) Each of the Parties hereby waives compliance with any applicable bulk sales law or any
similar law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

13

 

ARTICLE VI

FURTHER ASSURANCES 

     Section 6.1 Further Assurances. From time to time after the date hereof, and without
any further consideration the Parties agree to execute, acknowledge and deliver all such additional
deeds, assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and
other documents, and will do all such other acts and things, all in accordance with applicable law,
as may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of
the properties, rights, titles, interests, estates, remedies, powers and privileges granted by this
Agreement, or which are intended to be so granted, or (b) more fully and effectively to vest in the
applicable Parties and their respective successors and assigns beneficial and record title to the
interests contributed and assigned by this Agreement or intended so to be and to more fully and
effectively carry out the purposes and intent of this Agreement.

     Section 6.2 Other Assurances. From time to time after the Effective Time,
and without any further consideration, each of the Parties shall execute, acknowledge and deliver
all such additional instruments, notices and other documents, and will do all such other acts and
things, all in accordance with applicable law, as may be necessary or appropriate to more fully and
effectively carry out the purposes and intent of this Agreement. Without limiting the generality of
the foregoing, the Parties acknowledge that the parties have used their good faith efforts to
attempt to identify all of the assets being contributed to the MLP or its subsidiaries as required
in connection with the Offering. However, due to the age of some of those assets and the
difficulties in locating appropriate data with respect to some of the assets it is possible that
assets intended to be contributed to the MLP or its subsidiaries were not identified and therefore
are not included in the assets contributed to the MLP or its subsidiaries. It is the express intent
of the Parties that the MLP or its subsidiaries own all assets necessary to operate the assets that
are identified in this Agreement and in the Registration Statement. To the extent any assets were
not identified but are necessary to the operation of assets that were identified, then the intent
of the Parties is that all such unidentified assets are intended to be conveyed to the appropriate
members of the Partnership Group. To the extent such assets are identified at a later date, the
Parties shall take the appropriate actions required in order to convey all such assets to the
appropriate member of the Partnership Group. Likewise, to the extent that assets are identified at
a later date that were not intended by the parties to be conveyed as reflected in the Registration
Statement, the Parties shall take the appropriate actions required in order to convey all such
assets to the appropriate party.

ARTICLE VII

EFFECTIVE TIME

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

14

 

ARTICLE VIII

MISCELLANEOUS

     Section 8.1 Order of Completion of Transactions. The transactions provided for in
Article II of this Agreement shall be completed immediately following the Effective Time in the
order set forth in Article II of this Agreement. The transactions provided for in Article III of
this Agreement shall be completed simultaneously with the transactions provided for in Article II
of this Agreement. The transactions provided for in Article IV of this Agreement shall be
completed after those provided for in Article II and Article III of this Agreement.

     Section 8.2 Costs. Except for the transaction expenses set forth in Section 2.14, OLLC shall pay all expenses,
fees and costs, including sales, use and similar taxes arising out of the contributions,
conveyances and deliveries to be made hereunder, and shall pay all documentary, filing, recording,
transfer, deed and conveyance taxes and fees required in connection therewith. In addition, OLLC
shall be responsible for all costs, liabilities and expenses (including court costs and reasonable
attorneys’ fees) incurred in connection with the implementation of any conveyance or delivery
pursuant to Article VI of this Agreement.

     Section 8.3 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement. All references herein to Articles and Sections
shall, unless the context requires a different construction, be deemed to be references to the
Articles and Sections of this Agreement, respectively. All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall include all other
genders, and the singular shall include the plural and vice versa. The terms “include,”
“includes,” “including” or words of like import shall be deemed to be followed by the words
“without limitation.”

     Section 8.4 Successors and Assigns. The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

     Section 8.5 No Third Party Rights. The provisions of this Agreement are intended to
bind the parties signatory hereto as to each other and are not intended to and do not create rights
in any other person or confer upon any other person any benefits, rights or remedies and no person
is or is intended to be a third party beneficiary of any of the provisions of this Agreement.

     Section 8.6 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on the Parties.

     Section 8.7 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Indiana applicable to contracts made and to be performed
wholly within such state without giving effect to conflict of law principles thereof.

     Section 8.8 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political

15

 

body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid, and an equitable adjustment
shall be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

     Section 8.9 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties.

     Section 8.10 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to its subject matter. This document and such instruments contain the entire
understanding of the Parties. No understanding, representation, promise or agreement, whether oral
or written, is intended to be or shall be included in or form part of this Agreement unless it is
contained in a written amendment hereto executed by the Parties after the date of this Agreement.

     Section 8.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

16

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first
written above.

	 	 	 	 	 
	 	 	/s/ F. William Grube
	 	 	 
	 	 	F. WILLIAM GRUBE
	 
	 	 	 	 
	 	 	/s/ Janet Krampe Grube
	 	 	 
	 	 	JANET KRAMPE GRUBE
	 
	 	 	 	 
	 	 	JANET KRAMPE GRUBE GRANTOR RETAINED ANNUITY TRUST
DATED JANUARY 31, 2002
	 
	 	 	 	 
	 

	 	By:	 	/s/ Janet K. Grube 
	 

	 	 	 	 
	 

	 	 	 	Janet K. Grube
	 

	 	 	 	Trustee
	 
	 	 	 	 
	 	 	JANET KRAMPE GRUBE GRANTOR RETAINED ANNUITY TRUST
DATED MARCH 18, 2004
	 
	 	 	 	 
	 

	 	By:	 	/s/ Janet K. Grube
	 

	 	 	 	 
	 

	 	 	 	Janet K. Grube
	 

	 	 	 	Trustee
	 
	 	 	 	 
	 	 	/s/ Fred M. Fehsenfeld, Jr.
	 	 	 
	 	 	FRED M. FEHSENFELD, JR.
	 
	 	 	 	 
	 	 	MILDRED L. FEHSENFELD IRREVOCABLE INTERVIVOS TRUST
FOR THE BENEFIT OF FRED MEHLERT FEHSENFELD, JR. AND
HIS ISSUE
	 
	 	 	 	 
	 

	 	By:	 	/s/ James C. Fehsenfeld
	 

	 	 	 	 
	 

	 	 	 	James C. Fehsenfeld
	 

	 	 	 	Trustee

Calumet Specialty Products Partners, L.P.

Contribution, Conveyance and Assumption Agreement
 Signature Page

 

 

	 	 	 	 	 
	 	 	MAGGIE FEHSENFELD TRUST NUMBER 106 FOR THE BENEFIT OF
FRED MEHLERT FEHSENFELD, JR. AND HIS ISSUE
	 
	 	 	 	 
	 

	 	By:	 	/s/ James C. Fehsenfeld
	 

	 	 	 	 
	 

	 	 	 	James C. Fehsenfeld
	 

	 	 	 	Trustee
	 
	 	 	 	 
	 	 	THE HERITAGE GROUP
	 
	 

	 	By:	 	/s/ Fred M. Fehsenfeld, Jr.
	 

	 	 	 	 
	 

	 	 	 	Fred M. Fehsenfeld, Jr.
	 

	 	 	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	CALUMET, INCORPORATED
	 
	 	 	 	 
	 

	 	By:	 	/s/ R. Patrick Murray, II
	 

	 	 	 	 
	 

	 	 	 	R. Patrick Murray, II
	 

	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	CALUMET GP, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ R. Patrick Murray, II
	 

	 	 	 	 
	 

	 	 	 	R. Patrick Murray, II
	 

	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 
	 	 	CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
	 
	 	 	 	 
	 	 	By: Calumet GP, LLC, its general partner
	 
	 	 	 	 
	 

	 	 	By: 	/s/ R. Patrick Murray, II
	 

	 	 	 	 
	 

	 	 	 	R. Patrick Murray, II
	 

	 	 	 	Vice President and Chief Financial Officer

Calumet
Specialty Products Partners, L.P.

Contribution, Conveyance and Assumption Agreement
 Signature Page

 

 

 

	 	 	 	 	 	 	 
	 	 	CALUMET OPERATING, LLC
	 
	 	 	 	 	 	 
	 	 	By: Calumet Specialty Products Partners, L.P., its
sole member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 Calumet GP, LLC, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 By:	/s/ R. Patrick Murray, II
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	R. Patrick Murray, II
	 

	 	 	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	CALUMET LP GP, LLC
	 
	 	 	 	 	 	 
	 	 	By: Calumet, Incorporated, its sole member
	 
	 	 	 	 	 	 
	 

	 	 	 	 	By:	/s/ R. Patrick Murray, II
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	R. Patrick Murray, II
	 

	 	 	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	CALUMET LUBRICANTS CO., LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	 	 	By: Calumet, Incorporated, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	 	By:	/s/ R. Patrick Murray, II
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	R. Patrick Murray, II
	 

	 	 	 	 	 	Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	CALUMET SALES COMPANY INCORPORATED
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ R. Patrick Murray, II
	 	 	 	 	 
	 	 	 	 	R. Patrick Murray, II
	 	 	 	 	Vice President and Chief Financial Officer

Calumet Specialty Products Partners, L.P.

Contribution, Conveyance and Assumption Agreement
 Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	CALUMET PENNSYLVANIA, LLC
	 
	 	 	 	 	 	 
	 	 	By: Calumet Lubricants Co., Limited Partnership, its
sole member
	 
	 	 	 	 	 	 
	 	 	 	 	By: Calumet, Incorporated, its general partner
	 
	 

	 	 	 	 	 	By: /s/ R. Patrick Murray, II                                                             
	 

	 	 	 	 	 	  R. Patrick Murray, II
	 

	 	 	 	 	 	  Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	CALUMET HOLDING, LLC
	 
	 	 	 	 	 	 
	 	 	By: Calumet Lubricants Co., Limited Partnership, its
sole member
	 
	 	 	 	 	 	 
	 	 	 	 	By: Calumet, Incorporated, its general partner
	 
	 

	 	 	 	 	 	By: /s/ R. Patrick Murray, II                                                              
	 

	 	 	 	 	 	  R. Patrick Murray, II
	 

	 	 	 	 	 	  Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	CALUMET SHREVEPORT PACKAGING, LLC
	 
	 	 	 	 	 	 
	 	 	By:  /s/ R. Patrick Murray, II
                                                                                                       
	 	 	Name:  R.
Patrick Murray, II      
                                                                                                    
	 	 	Title:  Vice
President and Chief Financial Officer                                                                           

Calumet Specialty Products Partners, L.P.

Contribution, Conveyance and Assumption Agreement
 Signature
Page

 

 

SCHEDULE A

     ALL ASSETS OWNED OR USED BY CALUMET LUBRICANTS CO., LIMITED PARTNERSHIP (“CALUMET”) IN
CONNECTION WITH THE ROUSEVILLE REFINERY (AS DEFINED BELOW) AND/OR THE RENO FACILITY (AS DEFINED
BELOW) INCLUDING, BUT NOT LIMITED TO THE FOLLOWING:

ROUSEVILLE REFINERY

          1. Rouseville Refinery. The refinery facilities located at Plant Number 1 in Rouseville,
Pennsylvania described further in item 6 below (the “Rouseville Refinery”), including,
without limitation, (a) feedstock and supply agreements related to the operation of the wax
business; (b) the hydrotreater, deresining, dewaxing and bauxite filtration units; (c) the boiler
house and utility complex; (d) the wastewater treatment facilities; (e) the Rouseville Refinery
packaging plant and associated tankage; (g) all existing tankage; (g) all loading and unloading
facilities for tank cars and tank trucks; (h) all maintenance supplies and spare parts associated
with the above equipment; (i) existing wax feedstocks, in process wax products and footsoil, and
finished wax products and footsoil necessary to operate the wax business; (j) existing accounts
receivable necessary to operate the wax business; and (k) any document, agreement, instrument,
certificate, writing, notice, consent, affidavit, letter, telegram, telex, statement, file,
computer disk, microfiche or other document in electronic format, schedule, exhibit, or any other
paper or record whatsoever relating to the current and proposed operations of the Rouseville
Refinery;

          2. Equipment. All machinery, transportation equipment, spare parts, supplies tools,
equipment, computer equipment furnishings and fixtures owned, leased or subject to a contract of
purchase and sale, or lease commitment (collectively, the “Equipment”) that is used in the
Rouseville Refinery as operated by Calumet;

          3. Rouseville Inventories. All saleable, usable inventories of wax feedstocks, in process wax
products and footsoil, finished wax products and related packaging materials, and footsoil related
to the Rouseville Refinery wherever situated;

     4. Accounts Receivable. All accounts and notes receivable (collectively, the “Accounts
Receivable”) relating to the Rouseville Refinery;

     5. Proprietary Information. All rights to the names and any derivations thereof, any patent
rights, inventions, shop rights, know how, trade secrets, designs, drawings, art work, plans,
prints, manuals, models, design registrations, inventor’s certificates, technical information and
data, copyrightable works, lists of materials, patterns, models, records, diagrams, formulae,
product design standards, tools, die, jigs, models, prototypes, product information literature,
computer files, computer software, hard copy files, catalogs, specifications, confidentiality
agreements, confidential information and other proprietary technology and similar information; all
registered and unregistered trademarks, service marks, logos, trade names and all other trademark
rights; all registered and unregistered copyrights; and all registrations for, and

 

 

applications for registration of, any of the foregoing (collectively, the “Proprietary
Information”), that are used in the conduct of the Rouseville Refinery, and any and all other
information and material proprietary to Calumet, owned, possessed or used by it, whether or not
such information is embodied in writing or other physical form, and that is not generally known to
the public, that (a) relates to financial information regarding the Rouseville Refinery, including,
without limitation, (i) business plans and (ii) sales, financing, pricing and marketing procedures
or methods of Calumet, or (b) relates to specific business matters concerning the identity of or
other information regarding sales personnel or customers of the Rouseville Refinery;

     6. Real Property. All real property, or any interest therein that is used in the Rouseville
Refinery;

     7. Entitlements. The benefit of all unfilled or outstanding purchase orders, sales or service
contracts, other commitments, contracts, engagements and leases to which Calumet is entitled
(collectively, the “Entitlements”) that relate to the Rouseville Facility;

     8. Building and Equipment. The office building and the associated equipment and real
property;

     9. Laboratory and Equipment. The laboratory and the associated equipment and real property;

     10. Emergency Response Building and Equipment. The emergency response building and the
associated equipment and real property;

     11. Software. The environmental, safety and operations software;

     12. Prepaid Expenses and Deposits. All prepaid expenses and deposits made by Calumet relating
to the Rouseville Refinery;

     13. Air Emissions Credits. Any air emissions credits existing as of the date hereof
associated with the Rouseville Refinery, if any, and any additional air emissions credits resulting
from or associated with the operation of the Rouseville Refinery after the date hereof; and

     14. Intangible Assets. Any intangible assets associated with the Rouseville Facility.

 

 

RENO FACILITY

          15. Reno Facility. The wax producing, blending and packaging facility located in Reno,
Pennsylvania described further in item 20 below (the “Reno Facility”), including, without
limitation, all tankage, wax blending and packaging equipment, loading and unloading facilities and
warehouse facility;

          16. Equipment. All Equipment that is used in the Reno Facility as operated by Calumet;

          17. Reno Inventories. All saleable, usable inventories of wax feedstocks, in process wax
products and footsoil, finished wax products and related packaging materials, and footsoil related
to the Reno Refinery wherever situated;

          18. Accounts Receivable. All Accounts Receivable relating to the Reno Facility;

          19. Proprietary Information. All Proprietary Information that are used in the conduct of the
Reno Facility, and any and all other information and material proprietary to Calumet, owned,
possessed or used by it, whether or not such information is embodied in writing or other physical
form, and that is not generally known to the public, that (a) relates to financial information
regarding the Reno Facility, including, without limitation, (i) business plans and (ii) sales,
financing, pricing and marketing procedures or methods of Calumet, or (b) relates to specific
business matters concerning the identity of or other information regarding sales personnel or
customers of the Reno Facility;

          20. Real Property. All Real Property that is used in the Reno Facility;

          21. Entitlements. Entitlements that relate to the Reno Facility;

          22. Office Building and Equipment. The office building and the associated equipment and real
property;

          23. Software. The environmental, safety and operations software;

          24. Prepaid Expenses and Deposits. All prepaid expenses and deposits made by Calumet relating
to the Reno Facility;

          25. Air Emissions Credits. Any air emissions credits existing as of the date hereof
associated with the Reno Facility and the interests of Calumet, if any, and any additional air
emissions credits resulting from or associated with the operation of the Reno Facility after the
date hereof; and

          26. Intangibles. Any intangible assets associated with the Reno Facility.

 

 

SCHEDULE B

     1. Contract No. SP0600-05-D-0470 for the purchase and sale of JP-8 jet fuel by and between the
United States of America (Defense Energy Support Center) and Calumet Shreveport Fuels, LLC, dated
as of March 18, 2005, as amended or novated to date.

     2. Aviation Jet Fuels Sales and Purchase Agreement by and between Calumet Shreveport Fuels,
LLC and Comair, Inc., dated December 1, 2005.

     3. Supply arrangement with Atlantic Southeast Airlines for period July 1, 2005 through June
30, 2006 with approximate volumes of 150,000 gallons per month.

     4. Supply arrangement with Continental Airlines for one year period starting July 1, 2005 with
approximately volumes of 45,000 gallons per month.

     5. Supply arrangement with American Eagle, a wholly owned subsidiary of AMR Corporation, which
began approximately December 1, 2005 with anticipated volumes of 50,000 gallons per month.exv10w8

 

EXHIBIT 10.8

REDEMPTION AGREEMENT

BY AND BETWEEN

ENSOURCE ENERGY PARTNERS, LP

AND

ENSOURCE ENERGY INVESTORS LLC

DATED
AS OF FEBRUARY 10, 2006

* * * * * * * * * *

 

 

REDEMPTION AGREEMENT

TABLE OF CONTENTS

Page  

Article 1

Redemption of EEI LP Interest

	 	 	 	 	 	 	 
	1.1

	 	Redemption of EEI LP Interest
	 	 	1	 
	1.2

	 	Termination of Interest in the Partnership
	 	 	1	 

Article 2

Liquidation Payment

	 	 	 	 	 	 	 
	2.1

	 	Payment on the Effective Date
	 	 	1	 
	2.2

	 	Contingent Payment
	 	 	2	 

Article 3

Representations and Warranties of EEI

	 	 	 	 	 	 	 
	3.1

	 	Title to the EEI LP Interest
	 	 	2	 
	3.2

	 	No Outstanding Options
	 	 	2	 
	3.3

	 	Entire Interest
	 	 	2	 
	3.4

	 	Agreement Binding
	 	 	2	 

Article 4

Representations and Warranties of the Partnership

	 	 	 	 	 	 	 
	4.1

	 	Authority Relative to Agreement
	 	 	3	 
	4.2

	 	Agreement Binding
	 	 	3	 
	4.3

	 	Effect of Agreement
	 	 	3	 

Article 5

Covenants

	 	 	 	 	 	 	 
	5.1

	 	Resignation of Scott A. Bedford; Public Announcement
	 	 	3	 
	5.2

	 	2006 Tax Return
	 	 	4	 
	5.3

	 	Indemnification.
	 	 	4	 

Article 6

Dispute Resolution

Article 7

General Provisions

	 	 	 	 	 	 	 
	7.1

	 	Addresses and Notices
	 	 	4	 
	7.2

	 	Titles and Captions
	 	 	5	 
	7.3

	 	Pronouns and Plurals
	 	 	5	 
	7.4

	 	Construction of Term “Includes”
	 	 	5	 
	7.5

	 	Further Action
	 	 	5	 
	7.6

	 	Binding Effect
	 	 	5	 
	7.7

	 	Integration
	 	 	5	 
	7.8

	 	Waiver
	 	 	5	 
	7.9

	 	Applicable Law
	 	 	5	 
	7.10

	 	Attorneys Fees
	 	 	5	 
	7.11

	 	Counterparts
	 	 	5	 

-i-

 

 

REDEMPTION AGREEMENT

     THIS REDEMPTION AGREEMENT is entered into by Ensource Energy Partners, LP, a Delaware
limited partnership (the “Partnership”), and Ensource Energy Investors LLC, a
Delaware limited liability company (“EEI”),
effective as of February 10, 2006 (the
“Effective Date”). Reference is made to the Amended and Restated Agreement of Limited
Partnership of Ensource Energy Partners, LP dated as of November 15, 2005 (the “Partnership
Agreement”). Capitalized terms used herein and not otherwise defined shall have the meanings
assigned to such terms in the Partnership Agreement.

PREAMBLE

     WHEREAS, EEI is a Limited Partner in the Partnership holding an LP Interest
(the “EEI LP Interest”) with a Sharing Ratio of 62.05677% (the “EEI
Sharing Ratio”); and

     WHEREAS, EEI desires withdraw from the Partnership as a Limited Partner; and

     WHEREAS, EEI and the Partnership desire for the Partnership to redeem from EEI
the EEI LP Interest in exchange for a liquidating payment as set forth herein;

     NOW, THEREFORE, in consideration of the mutual promises, covenants,
representations, and warranties herein contained, the parties hereto agree as
follows:

ARTICLE 1

REDEMPTION OF EEI LP INTEREST

     1.1 Redemption of EEI LP Interest. Upon the basis of the representations and warranties set
forth herein and subject only to the receipt by EEI of the Liquidation Payment, as hereinafter
defined, the Partnership hereby redeems from EEI the EEI LP Interest and EEI acknowledges the
complete liquidation of the EEI LP Interest effective for all purposes as of the Effective Date.

     1.2 Termination of Interest in the Partnership. Upon the redemption of the EEI LP Interest,
EEI shall have no further interest in or obligations to the Partnership except for the matters set
forth in this Agreement.

ARTICLE 2

LIQUIDATION PAYMENT

     2.1 Payment on the Effective
Date. In consideration for the redemption and liquidation of the
EEI LP Interest, the Partnership shall pay to EEI on the Effective Date the amount of
$12,460,832.38 (the “Liquidation Payment”).

 

 

     2.2 Contingent Payment.

     (a) The parties acknowledge and agree that the Liquidation Payment has been calculated on the
assumption that the aggregate expenses incurred by the Partnership prior to the Effective Date
relating to the Exchange Offer (the “Exchange Offer Expenses”) equal or exceed $1,350,000,
of which the amount apportioned to EEI after the General partner having agreed to absorb some portion of the amount that EEI would otherwise be required to pay is $127,177.80 (the “EEI Expenses”). In the event
that the total amount paid by the Partnership with respect to the Exchange Offer Expenses is less
than $1,350,000 (such amount the “Expense Savings”), the Partnership agrees to pay to EEI
an amount equal to the product of (i) the amount of the Expense Savings multiplied by (ii)
65.3831%, but in no event more than $96,149.42.

     (b) In addition to the foregoing,

     (i) in the event that the Partnership, or any other entity affiliated with the General
Partner or any entity affiliated with Marshall Eubank or Scott W. Smith, consummates the
Exchange Offer, or any other transaction pursuant to which the Partnership or such other
entity acquires any of the outstanding NGT depositary units, the Partnership agrees
to pay to EEI an amount equal to the EEI Expenses; and

     (ii) in the event that the Partnership is
reimbursed for any of the Exchange Offer Expenses or any other expenses, in either case
other than by an existing Partner unless such reimbursement relates to amounts paid as a result of a Partner making payment on account of an increase to its original limited partner interest in the Partnership, the Partnership shall use the first proceeds from such
reimbursement to reimburse EEI for its proportionate share of such expenses borne by EEI
(based on the allocation of expenses described in Section 2.2).

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF EEI

     EEI represents and warrants to the Partnership, each of which representations and warranties
is hereby deemed material, as follows:

     3.1 Title to the EEI LP Interest. Except as may be provided in the Partnership Agreement, EEI
(i) owns the EEI LP Interest free and clear of any claims, liens, charges, or encumbrances
whatsoever and (ii) has full right, power, and authority to liquidate the EEI LP Interest as
provided herein without obtaining the consent or approval of any other person or entity.

     3.2 No Outstanding Options. Except as may be provided in the Partnership Agreement, there are
no outstanding options, warrants, or other agreements with, or right in any person or entity, or
otherwise entitling such person or entity to purchase or otherwise acquire from EEI all or any
portion of the EEI LP Interest.

     3.3 Entire Interest. The EEI LP Interest constitutes the entire interest of EEI in the
Partnership, and EEI does not have or claim any interest, direct or indirect, in any note, option,
right, obligation, or other interest or security issued by the Partnership. Except for amounts
payable under this Agreement, EEI does not claim any amounts owed to EEI by the Partnership.

     3.4 Agreement Binding. This Agreement, upon due execution by the parties hereto, will
constitute a legal, valid, and binding obligation of EEI enforceable in accordance with

-2-

 

its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, receivership, moratorium, and similar laws affecting creditors’ rights generally,
and the effect of general principles of equity, whether applied by a court of law or equity.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

     The Partnership represents and warrants to EEI, each of which representations and warranties
is hereby deemed material, as follows:

     4.1 Authority Relative to Agreement. The execution, delivery, and performance of this
Agreement by the Partnership and the consummation by the Partnership of the transactions
contemplated hereby have been duly and effectively authorized by all necessary partnership or
limited liability company action.

     4.2 Agreement Binding. This Agreement, upon due execution by the parties hereto, will
constitute a legal, valid, and binding obligation of the Partnership, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, receivership, moratorium, and similar laws affecting creditors’ rights generally,
and the effect of general principles of equity, whether applied by a court of law or equity.

     4.3 Effect of Agreement. The execution, delivery, and performance of this Agreement by the
Partnership and the consummation by it of the transactions contemplated hereby do not require the
consent, waiver, approval, license, or authorization of any person or public authority that has not
been obtained; do not result in a violation in any material respect of any law, rule, or regulation
applicable to the Partnership; and do not conflict with or result in a breach of the Partnership
Agreement or, with or without the giving of notice and/or the passage of time, any mortgage, deed
of trust, license, indenture, or other agreement or instrument, or any order, judgment, or other
restriction of any kind or character to which the Partnership is a party. The redemption of the
EEI LP Interest is not subject to the right of first offer set forth in Section 10 of the
Partnership Agreement, and the General Partner has received adequate assurance that the redemption
is not prohibited by applicable law and waives any requirement that EEI provide a legal opinion in
connection with the redemption of the EEI LP Interest.

ARTICLE 5

COVENANTS

     5.1 Resignation of Scott A. Bedford; Public Announcement. The Partnership acknowledges and
accepts the resignation of Scott A Bedford from the Board of Directors effective as of the
Effective Date. Concurrently with the execution and delivery of this Redemption Agreement, the
Partnership will (i) make a public announcement of such resignation
in a press release and a Form 8-K filed  with the Securities and
Exchange Commission in substantially the form attached
hereto as Exhibit A and (ii) not more than one business day after such public announcement, file with the Securities and Exchange Commission
a Form 8-K in substantially the form attached hereto as Exhibit B, and file with the
Securities and Exchange Commission a supplement to its exchange offer addressing Mr. Bedford’s
resignation, the redemption of the EEI LP Interest and the agreement
of EEP’s limited partners to contribute not less than $20.5 million to the
Partnership. The supplement to the exchange offer shall be in substantially the form attached hereto as Exhibit C. If Ensource fails to issue such press release, file such Form 8-K or file such
supplement to the exchange offer as provided in the previous sentence, the Partnership shall
pay EEI on a daily basis as partial liquidated damages one percent (1%) of the Liquidation Payment per day
until the press release is issued, the Form 8-K is filed and the
supplement to the exchange offer is filed. If the press release
Form 8-K, and the supplement are not issued or filed as of
February 13, 2006, the Partnership shall cause Ensource to terminate the exchange
offer not later than February 13, 2006 (the
“Termination”).  If the Termination does not occur timely,
as further partial liquidated damages EEP shall pay EEI an additional
three percent (3%) of the Liquidation Payment for each day that the
Termination has not occurred. The parties agree that the

-3-

 

damages suffered as a result of such failure will be difficult to measure, and that the amount
of the per diem liquidated damages is reasonable under the circumstances.

     5.2 2006 Tax Return. The parties agree that the income allocable to EEI by the Partnership
for the period from January 1, 2006 through the Effective Date will be determined using the interim
closing of the books method.

5.3 Indemnification.

     (a) Without duplication of any amounts otherwise due to EEI under Sections 6.7 and 6.8 of the
Partnership Agreement, the Partnership hereby agrees to indemnify, hold harmless and defend EEI and
its shareholders, directors, officers, employees and agents (including without limitation Scott A.
Bedford), such parties being referred to as the “Indemnified Parties,” from and against any action,
cause, claim, damage, debt, demand or liability, including reasonable costs and attorney’s fees,
asserted by any person or entity, arising out of or relating to: (a) this Redemption Agreement; (b)
the Exchange Offer; or (c) the Partnership Agreement. This indemnity is intended to be broad and
liberally construed. The Partnership further agrees to advance any fees or expenses incurred or
likely to be incurred by any Indemnified Party promptly upon written request to the Partnership.

     (b) Nothing contained in this Redemption Agreement shall limit the Partnership’s obligations
or EEI and its Affiliates’ rights under Sections 6.7 and 6.8 of the Partnership Agreement.

ARTICLE 6

DISPUTE RESOLUTION

     The parties agree that any dispute with respect to the matters covered by this Agreement will
be resolved using the procedures set forth in Article 17 of the Partnership Agreement, which shall
be deemed incorporated herein with all the necessary changes.

ARTICLE 7

GENERAL PROVISIONS

     7.1 Addresses and Notices. The address of each party for all purposes shall be the address
set forth for such party on the signature page or such other address of which the other party has
received written notice as provided in this Section. Subject to the following sentence, any
notice, demand, request or report required or permitted to be given or made to a party under this
Agreement shall be in writing and shall be deemed given or made when delivered in person or when
sent to such party at such address by expedited courier service, registered or certified mail,
return receipt requested or by telecopy (with a supplemental copy mailed on the date of such
transmission by telecopier by prepaid first class mail). Notices shall be deemed received (a) with
respect to notices given by expedited courier service or courier or delivered in person, on the
Business Day indicated on the proof of delivery to the party’s then current address (or if
delivered on other than a Business Day, on the first Business Day thereafter), (b) with respect to
notices given by registered or certified mail, 5 Business days after the date on which such notice
was posted with the U.S. Postal Service to the Partner’s then current address), and (c) with
respect to notices given by telecopy, on the Business Day indicated on any proof of transmission to
such party’s then current telecopier number, or in the event that such telecopier transmission is
received after regular business hours, on the first Business Day thereafter.

-4-

 

     7.2 Titles and Captions. All Article or Section titles or captions in this Agreement are for
convenience only. They shall not be deemed part of this Agreement and in no way define, limit,
extend or describe the scope or intent of any provisions hereof.

     7.3 Pronouns and Plurals. Whenever the context may require, any pronoun used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular
form of nouns, pronouns and verbs shall include the plural and vice versa.

     7.4 Construction of Term “Includes". The term “includes” and its derivatives means “includes,
but is not limited to,” and corresponding derivative expressions.

     7.5 Further Action. The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or appropriate to achieve
the purpose of this Agreement; provided, however, that nothing in this Agreement shall be construed
to require any party to take any action that is in consistent with applicable law.

     7.6 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the
parties and their heirs, executors, administrators, successors, legal representatives and permitted
assigns.

     7.7 Integration. This Agreement constitutes the entire agreement among the parties pertaining
to the subject matter hereof and supersedes all prior agreements and understandings pertaining
thereto.

     7.8 Waiver. No failure by any party to insist upon the strict performance of any covenant,
duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a
breach thereof shall constitute waiver of any such breach or any other covenant, duty, agreement or
condition.

     7.9 Applicable Law. Notwithstanding the place where this Agreement may be executed by any of
the parties hereto, the parties expressly agree that all the terms and provisions hereof shall be
construed under the internal laws, and not the laws pertaining to conflicts or choice of law, of
the State of Delaware.

     7.10 Attorneys Fees. In the event either party to this Redemption Agreement is in breach of
this Redemption Agreement, the non-breaching party shall be entitled to collect from the breaching
party, in addition to its damages at law, all its expenses (including without limitation reasonable
attorneys’ fees and expenses) incurred in enforcing its rights, whether or not legal action is
commenced.

     7.11 Counterparts. This Agreement may be executed in counterparts, all of which together
shall constitute one agreement binding on all the parties, notwithstanding that all the parties are
not signatories to the original or the same counterpart. Each party shall become bound by the
Agreement immediately upon affixing its signature hereto, independently of the signature of any
other party.

* * * * *

[Remainder of Page Left Blank]

[Signature Pages of the Partners Attached]

-5-

 

     IN WITNESS WHEREOF, the parties named below have caused this Agreement to be executed by their
duly authorized officers or representatives on the date first above written.

	 	 	 	 	 
	 	 	Ensource Energy Partners, LP
	 
	 	 	 	 
	 

	 	By:
	 	Ensource Energy Company, LLC

its general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Scott W. Smith
	 

	 	 	 	 
	 

	 	 	 	Scott W. Smith President
	 
	 	 	 	 
	 	 	Ensource Energy Investors LLC
 
	 
	 	By: 	 	Peninsula JVL-Capital Advisors, LLC 
 
	 

	 	By:	 	/s/ Scott A. Bedford
	 

	 	 	 	 
	 

	 	Name:	 	Scott A. Bedford
	 

	 	Title:	 	Manager 

-6-

 

EXHIBIT A

See
Attachment

 

Exhibit B

Form 8-K Attached

 

Exhibit C

Form of Supplement Attached

-7-

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