Document:

Form of Services Agreement

 Exhibit 10.5 
 SERVICES AGREEMENT 
 THIS IS AN AGREEMENT dated as of
                    , 2011 by and among Sprague Resources GP LLC, a Delaware limited liability company (“SRGP”), Sprague Resources
LP, a Delaware limited partnership (“SRLP”), Sprague Resources Holdings LLC, a Delaware limited liability company (“Sprague Holdings”), and Sprague Energy Solutions Inc., a Delaware corporation (“Sprague
Solutions”). 
 PRELIMINARY STATEMENT 
 WHEREAS, SRLP and Sprague Solutions desire to obtain from SRGP the services necessary to operate, manage, maintain and report the operating results of SRLP and its subsidiaries (including Sprague
Solutions), and SRGP is willing to furnish or make such services available to SRLP and its subsidiaries (including Sprague Solutions). 
 WHEREAS, Sprague Holdings desires to obtain from SRGP the services necessary to operate, manage, maintain and report the operating results of Sprague Holdings, and SRGP is willing to furnish or
make such services available to Sprague Holdings. 
 NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

AGREEMENTS 
 IT IS MUTUALLY agreed by the parties hereto as follows: 

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

“control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of SRLP dated as of                 , 2011, as amended, supplemented or
restated from time to time. 
 “Partnership Entities” means SRLP and each of its subsidiaries (except Sprague
Solutions and its subsidiaries). 
 “Person” means an individual or a corporation, limited liability company,
partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 

 “Sprague Holdings” has the meaning assigned to such term in the Preamble to
this Agreement. 
 “Sprague Holdings Entities” means Sprague Holdings and any of its subsidiaries, other than
SRGP and SRLP and its subsidiaries. 
 “Sprague Solutions” has the meaning assigned to such term in the
Preamble to this Agreement. 
 “Sprague Solutions Entities” means Sprague Solutions and any of its
subsidiaries. 
 “SRGP” has the meaning assigned to such term in the Preamble to this Agreement. 

“SRLP” has the meaning assigned to such term in the Preamble to this Agreement. 

2.    SERVICES 
 2.1     Beginning on the date of this Agreement, SRGP hereby agrees to provide, or cause to be provided, to SRLP Entities, the Sprague Solutions Entities and the Sprague Holdings
Entities, as applicable, certain general corporate services, including but not limited to accounting, tax, corporate communications, legal, financial, health, safety and environmental, treasury, human resource, information technology and other
administrative staff functions, and arrange for administration of insurance and employee benefit programs. The services will include, as applicable and without limitation, the following: 

(a)    Human Resources. Processing of payroll, maintenance of payroll records, oversight and
execution of employee communications and corporate events, and support for product, worker safety and environmental programs. 
 (b)    Accounting and Financial Reporting and Compliance Related Services. Preparation of financial statements in accordance with United States generally accepted accounting
principals; preparation of filings with the Securities and Exchange Commission, including, without limitation, any registration statements, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and other
reports to unitholders of SRLP; maintenance of internal audit support services; review of compliance with legal, regulatory, financial and accounting laws, rules and regulations; and maintenance of internal controls, including support for compliance
with standards governing internal control over financial reporting. 
 (c)    Tax Related
Services. Preparation of periodic tax reports, including Federal tax returns and state and local tax returns (including income tax returns), tax research and planning and assistance on tax audits (Federal, state and local), preparation of
Schedule K-1s and Form 1099s and coordination of payment of Federal, state and local taxes. 

(d)    Insurance and Employee Benefit Related Services. Arranging for liability, property,
casualty and other normal business insurance coverage. Administration and oversight of all employee benefits and compensation plans, programs 

  
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and policies (whether insured through a third party, self-insured or not insured) and insurance programs, such as the following: 401(k) plan, group medical insurance, group life insurance,
employee stock purchase plan and various stock options plans, and the filing of any required reports under the Employee Retirement Income Security Act. 
 (e)    Corporate Record Keeping Services. Corporate record keeping, including, without limitation, supervision of transfer agent and registrar functions, coordination of unit
repurchase programs and tracking of unit issuances. 
 (f)    Information Technology
Services. Provision and maintenance of financial, billing, asset management, trading and other related operations systems, telecommunications equipment and software, disaster recovery services, periodic backups, website administration, Internet
access, network operation and security, technological and systems support for client-based information technologies, customer support and internal controls systems, including support for compliance with standards governing internal control over
financial reporting. 
 (g)    Environmental and Regulatory and Permitting Services.
Oversight of regulatory compliance, consultation and compliance audits and provision and oversight of environmental permitting and any other permitting related services. 

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

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

2.5    The amount of any reimbursements pursuant to Paragraphs 2.2, 2.3 and 2.4 shall be determined, in good faith,
by SRGP and shall be in addition to any reimbursement to SRGP as a result of indemnification pursuant to Section 7.7 of SRLP Agreement. 
 3.    INVOICE AND PAYMENT. SRGP shall invoice SRLP, Sprague Solutions and Sprague Holdings, as applicable, within 45 calendar days following the end of each month, and
such invoices will be due and payable by SRLP, Sprague Solutions and Sprague Holdings, as applicable, within 10 calendar days following receipt of such invoice. 
 4.    DIRECTORS AND OFFICERS. For the avoidance of doubt, the provisions of this Agreement shall not give rise to any right of recourse against any officer or director of
SRGP, Sprague Solutions, Sprague Holdings or any member of SRLP Entities, the Sprague Holdings Entities or the Sprague Solutions Entities. 
 5.     TERM. 

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

(b)    Termination. 

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

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

  
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 (iv)    This Agreement shall automatically terminate on
the date on which SRGP ceases to be the general partner of SRLP. 
 6.    NOTICES. All
notices, billings, requests, demands, approvals, consents, and other communications which are required or may be given under this Agreement shall be in writing and will be deemed to have been duly given if delivered personally or sent by registered
or certified mail, return receipt requested, postage prepaid to the parties at their respective addresses set forth below: 
 If
to SRGP: 
 2 International Drive 
 Suite 200 
 Portsmouth, NH 03801 

Attn: General Counsel 
 If to SRLP: 
 2 International Drive 

Suite 200 

Portsmouth, NH 03801 
 Attn: General Counsel 
 If to Sprague Solutions: 

5 King Street 

Suite 200 
 White
Plains, NY 
 Attn: President 
 If to Sprague Holdings: 
 2 International Drive 

Suite 200 

Portsmouth, NH 03801 
 Attn: General Counsel 
 7.    AMENDMENT OR
MODIFICATION. Except as set forth in Paragraph 5(b) hereto, this Agreement may be amended or modified from time to time only by the written agreement of all the parties to this Agreement; provided, however, that SRLP may not, without
prior Special Approval (as defined in the Partnership Agreement), agree to any amendment or modification of this Agreement that, in the reasonable discretion of SRGP, will have an adverse effect on the holders of Common Units (as defined in the
Partnership Agreement). Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement. 

8.    ASSIGNMENT; THIRD-PARTY BENEFICIARIES. No party to this Agreement shall have the right to assign
its respective rights or obligations under this Agreement 

  
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without the prior written consent of the other parties to this Agreement. It is expressly understood that the provisions of this Agreement do not impart enforceable rights in anyone who is not a
party hereto or successor or permitted assign of a party hereto; provided, however, that each of the parties hereto specifically intends that each entity comprising the Partnership Entities, whether or not a party to this Agreement, shall be
entitled to assert rights and remedies hereunder as third-party beneficiaries hereto with respect to those provisions of this Agreement affording a right, benefit or privilege to any such entity. 

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

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

11.    PARAGRAPH TITLES. The paragraph titles used in this Agreement are for convenience of reference
only and will not be considered in the interpretation or construction of any of the provisions thereof. 

12.    ENTIRE AGREEMENT. This Agreement constitutes the entire agreement among the parties hereto
pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the parties hereto in connection therewith. 
 13.    BINDING EFFECT. This Agreement will be binding upon, and will inure to the benefit of, the parties hereto and their respective successors, permitted assigns and
legal representatives. 
 14.    COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement. 
 15.    SEVERABILITY. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be valid and effective under applicable law, but if any
provision of this Agreement or the application of any such provision to any person or circumstance will be 

  
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held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision hereof, and the
parties hereto will negotiate in good faith with a view to substitute for such provision a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid, illegal or
unenforceable provision. 
 [REST OF PAGE INTENTIONALLY LEFT BLANK] 

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

			
	SPRAGUE RESOURCES GP LLC
		
	By:	 	  
		 	 Name:

		 	 Title:

  

			
	SPRAGUE RESOURCES LP
		
	By:	 	Sprague Resources GP LLC, its general partner
		
	 By:
	 	  
		 	Name:
		 	Title

  

			
	SPRAGUE ENERGY SOLUTIONS INC.
		
	 By:
	 	 
		 	 Name: Steven Levy

		 	 Title:    President

  

			
	SPRAGUE RESOURCES HOLDINGS LLC
		
	 By:
	 	  
		 	Name:
		 	Title

 SIGNATURE PAGE TO 

SERVICES AGREEMENTForm of Terminal Operating Agreement

 Exhibit 10.6 
 TERMINAL OPERATING AGREEMENT 
 This TERMINAL OPERATING AGREEMENT
(“Operating Agreement”), dated as of                      , 2011, is by and between SPRAGUE MASSACHUSETTS PROPERTIES LLC (“SPRAGUE
MASSACHUSETTS”), a Delaware corporation, having its principal place of business at 2 international Drive, Suite 200, Portsmouth, New Hampshire 03801, as (“Terminal Owner”) , and SPRAGUE OPERATING RESOURCES LLC (“SPRAGUE OPERATING
RESOURCES”), a Delaware limited liability company, having its principal place of business at 2 International Drive, Suite 200, Portsmouth, New Hampshire, 03801 (“Terminal Operator”). 

WITNESSETH: 
 WHEREAS Terminal Owner owns a certain oil terminal located at Cannon Street in New Bedford, mailing address 30 Pine Street, New Bedford, Massachusetts, 02740, which is more fully described below
(the “Oil Terminal”); and 
 WHEREAS Terminal Owner desires to enter into this Operating Agreement covering the
Oil Terminal with Terminal Operator and Terminal Operator desires to operate and maintain said Oil Terminal. 
 NOW,
THEREFORE, in consideration of the mutual promises herein contained, Terminal Owner and Terminal Operator, agree as follows: 
 1.
     DEFINITIONS. 
 Each term or expression set forth below in this Section 1 has the meaning
stated immediately after it. 
 Authorizations. All franchises, licenses, permits and other governmental consents issued by
Governmental Authorities pursuant to Legal Requirements which are or may be required for the ownership, use and occupancy of the Oil Terminal and for the operation, maintenance, repair and reconstruction of facilities thereon, including, without
limitation, the purchase, sale, transportation, storage, loading and off-loading of Oil. 
 Governmental Authority. The United
States of America, the Commonwealth of Massachusetts, the City of New Bedford, Massachusetts, and any political subdivision thereof and any agency, department, commission, court, board, bureau or instrumentality of any of them. 

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

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

Oil Terminal. The premises described in Exhibit A hereto, as well as all property, facilities and activities associated with the receipt,
storage, processing, transfer and dispensing of petroleum products (hereinafter, “Oil”) by SPRAGUE OPERATING RESOURCES. 

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

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

2.1      Operating Agreement of Oil Terminal and Term. 

 

	 	(i)	Initial Term. SPRAGUE MASSACHUSETTS does hereby enter into this Operating Agreement with SPRAGUE OPERATING RESOURCES upon the terms herein contained for a term
of five (5) years, commencing                      , 2011 (the “Initial Term”), as such Initial Term may be extended pursuant to the
provisions of Section 2.3 hereof, and subject to earlier termination as is set forth herein. 

  

	 	(ii)	 Early Termination By Either Party. In addition to the rights of early

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

  

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

 2.2      Consideration. SPRAGUE OPERATING RESOURCES shall compensate SPRAGUE MASSACHUSETTS for the use and benefit of this Operating Agreement by (i) performing the
operation and maintenance obligations described herein; and (ii) paying all Operating Fees due pursuant to Article 4 hereof. 
 2.3
     Extension of Term. Provided SPRAGUE OPERATING RESOURCES is not in default of any of its duties or obligations under this Operating Agreement, SPRAGUE OPERATING RESOURCES shall have the right to extend the Term of this
Operating Agreement for an additional five (5) year period following the expiration of the Initial Term hereof (such additional period, the “Extension Term”, and, together with the Initial Term, the “Term”). The terms and
conditions of this Operating Agreement shall govern the rights and obligations of the parties during such Extension Term. 
 3.
     COST DEFINITION AND DETERMINATION. 
 Costs shall be determined in accordance with generally
accepted accounting principles, consistently applied, and shall include operating and maintenance costs (“O & M Costs”). O & M Costs will normally be incurred by SPRAGUE OPERATING RESOURCES, but may also include O & M
Costs incurred by SPRAGUE MASSACHUSETTS to the extent that SPRAGUE OPERATING RESOURCES requests assistance by SPRAGUE MASSACHUSETTS or to the extent that SPRAGUE MASSACHUSETTS undertakes to perform operation and maintenance not being satisfactorily
undertaken by SPRAGUE OPERATING RESOURCES. SPRAGUE MASSACHUSETTS shall give SPRAGUE OPERATING RESOURCES notice of the unsatisfactory nature of SPRAGUE OPERATING RESOURCES’s operation and maintenance activity and a reasonable opportunity to cure
same. SPRAGUE OPERATING RESOURCES will provide SPRAGUE MASSACHUSETTS with a Monthly Throughput Report. “Throughput” shall mean the total volume of Oil sold or otherwise dispensed from of the Oil Terminal. 

  
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 4.      OPERATING FEES. 

SPRAGUE OPERATING RESOURCES shall satisfy its obligation to pay Operating Fees to SPRAGUE MASSACHUSETTS (i) by paying to SPRAGUE
MASSACHUSETTS the sum of $15,200.00 per month (subject to adjustment as provided below) (the “Operating Fees”); (ii) by being responsible for ordinary maintenance and repairs to the Oil Terminal; and, (iii) by paying to SPRAGUE
MASSACHUSETTS the amount of real estate taxes levied against the Oil Terminal. The Operating Fees specified in item (i) above shall be subject to adjustment as follows: Commencing on July 1, 2013, and thereafter on July 1 of each year
during the Term of this Operating Agreement, the aforementioned sum shall be increased in accordance with the percentage increase of the Consumer Price Index, All Urban Consumers (CPI-U) Region I, Boston Index, for the previous year (July 1,
2012-June 30). Provided, however, to the extent such increase in any one year (as calculated as described in the immediately preceding sentence) exceeds 6%, SPRAGUE OPERATING RESOURCES shall have the right, but not the obligation, to request
renegotiation of this Operating Agreement. In the event such renegotiation fails to result in the establishment of new terms acceptable to SPRAGUE OPERATING RESOURCES, SPRAGUE OPERATING RESOURCES may terminate this Operating Agreement upon the
provision of twelve (12) months advance written notice to SPRAGUE MASSACHUSETTS. 
 It is understood that this Operating
Agreement is in the nature of a net Operating Agreement and that such Operating Fees is to be net to SPRAGUE MASSACHUSETTS and, accordingly, SPRAGUE OPERATING RESOURCES shall bear all costs relating to the Oil Terminal whether or not specified
expressly herein, including, without by way of limitation, Taxes. In the event SPRAGUE OPERATING RESOURCES holds over following the expiration or termination of this Operating Agreement, SPRAGUE OPERATING RESOURCES shall be a tenant at sufferance
subject to all the terms of this Operating Agreement. SPRAGUE OPERATING RESOURCES shall also pay all public, special or betterment assessments levied or assessed by any municipality or other governmental authority associated with the Oil Terminal
during the Term. 
 5.      UTILITIES. 

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

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

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

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

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

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

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

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

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

  
 6 

 
same is available. 
 11.      INSURANCE. 

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

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

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

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

  
 7 

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

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

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

  
 8 

 15.2    Spillage. SPRAGUE OPERATING RESOURCES will defend, save SPRAGUE
MASSACHUSETTS and SPRAGUE MASSACHUSETTS’s affiliate, SPRAGUE MASSACHUSETTS Gas Company (the “Indemnitees”), as owners of the Oil Terminal and the adjacent property, harmless and indemnified: from against all loss or damage caused by
SPRAGUE OPERATING RESOURCES, its agents or contractors occasioned by (a) the use or misuse or abuse of water brought in through pipes or wells for use on the Oil Terminal or of the plumbing, heating or other apparatus, electric or other
fixtures; (b) the bursting or leaking of any pipes; or (c) a nuisance, including oil leakage and spillage, made or suffered on the Oil Terminal or adjacent property of Indemnitees, or in the immediate vicinity of the foregoing, arising out
of the operation of SPRAGUE OPERATING RESOURCES, except as may have been caused by the negligence of an Indemnitee, its agents and employees. 

15.3    Terminal Operator Indemnity. SPRAGUE OPERATING RESOURCES shall indemnify, save harmless, and defend the Indemnitees
from and against any and all liability, damage, penalties or judgments and from and against any claims, actions, proceedings and expenses and costs in connection therewith, including reasonable counsel fees, arising from any injury to person or
property sustained by anyone in and about the Oil Terminal or the approaches appurtenant or adjacent thereto, or other appurtenances used in connection therewith, or associated with the operation of the Oil Terminal, resulting from any act or acts
or omissions of SPRAGUE OPERATING RESOURCES, its officers, agents, servants, employees, contractors, lessees, customers, or invitees of any nature. SPRAGUE OPERATING RESOURCES shall, at its own cost and expense, defend any and all suits or actions
(just or unjust) which may be brought against an Indemnitee or in which an Indemnitee may be impleaded with others arising from any such act or omission of SPRAGUE OPERATING RESOURCES, its officers, agents, servants, employees, contractors or
invitees of any nature. The representations, covenants and warranties contained in this paragraph 15.3 shall survive the termination of this Operating Agreement. 
 15.4    Terminal Owner’s Indemnity. SPRAGUE MASSACHUSETTS shall indemnify, save harmless, and defend SPRAGUE OPERATING RESOURCES from and against any and all liability,
damage, penalties or judgments and from and against any claims, actions, proceedings and expenses and costs in connection therewith, including reasonable counsel fees, arising from injury to person or property sustained by anyone in and about the
Oil Terminal or the approaches appurtenant or adjacent thereto, or other appurtenances used in connection therewith, resulting from any act or acts or omissions of SPRAGUE MASSACHUSETTS, its officers, agents, servants, employees, contractors, or
invitees of any nature. SPRAGUE MASSACHUSETTS shall, at its own cost and expense, defend any and all suits or actions (just or unjust) which may be brought against SPRAGUE OPERATING RESOURCES or in which SPRAGUE OPERATING RESOURCES may be impleaded
with others upon any such act or omission of SPRAGUE MASSACHUSETTS, its officers, agents, servants, employees, contractors, or invitees of any nature. The representations, covenants and warranties contained in this paragraph 15.4 shall survive the
termination of this Operating Agreement. 
 16.    ASSIGNMENT OR OTHER TRANSFER. 

SPRAGUE OPERATING RESOURCES covenants that, during this Operating Agreement and for such further time as SPRAGUE OPERATING RESOURCES shall
hold the Oil Terminal or 

  
 9 

 
any part thereof, SPRAGUE OPERATING RESOURCES will not assign or encumber this Operating Agreement nor sublet the whole or any part of the Oil Terminal without first obtaining on each occasion
the written consent of SPRAGUE MASSACHUSETTS. SPRAGUE MASSACHUSETTS may assign the Operating Agreement or otherwise transfer its interest in the Oil Terminal with notice to SPRAGUE OPERATING RESOURCES. 

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

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

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

 

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

  

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

 

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

  
 10 

 19.2    Terminal Owner’s Remedies. If an Event of Default shall occur and be
continuing, SPRAGUE MASSACHUSETTS may, at its option, give to SPRAGUE OPERATING RESOURCES a notice terminating this Operating Agreement upon a date specified in such notice, which date shall be not less than 3 days, not including any Saturday,
Sunday or other day on which commercial establishments in New Bedford, Massachusetts are authorized or required by law or executive order to remain closed (“Business Days”), after the date of receipt by SPRAGUE OPERATING RESOURCES of such
notice from SPRAGUE MASSACHUSETTS, and upon the date specified in said notice, the term and estate hereby vested in SPRAGUE OPERATING RESOURCES shall cease and any and all other right, title and interest of SPRAGUE OPERATING RESOURCES hereunder
(other than SPRAGUE OPERATING RESOURCES rights pursuant to Section 15.4 hereof) shall likewise cease without further notice of lapse of time, as fully and with like effect as if the entire term of this Operating Agreement had elapsed, but
SPRAGUE OPERATING RESOURCES shall continue to be liable to SPRAGUE MASSACHUSETTS as hereinafter provided. 

19.3    Further Remedies. Upon any termination of this Operating Agreement pursuant to Section 19.2, or at any time
thereafter, SPRAGUE MASSACHUSETTS may, in addition to and without prejudice to any other rights and remedies SPRAGUE MASSACHUSETTS shall have at law or in equity, lawfully enter into and upon the Oil Terminal, or any part thereof in the name of the
whole, and repossess the same as of SPRAGUE MASSACHUSETTS former estate and expel SPRAGUE OPERATING RESOURCES and those claiming through or under SPRAGUE OPERATING RESOURCES and remove their effects (forcibly, if necessary) in the manner prescribed
by the statute relating to summary proceedings, or similar statutes, without being deemed guilty of any manner of trespass, and without prejudice to any remedies which might otherwise be used for arrears of Operating Fees or proceeding breach of
covenant, and upon entry as aforesaid this Operating Agreement shall terminate. 
 20.    INSOLVENCY.

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

  
 11 

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

  
 12 

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

21.2    Terminal Owner’s Operation of Oil Terminal. In the event of any dispute between the parties as to the termination
of this Operating Agreement or as to possession of or title to the Improvements, SPRAGUE MASSACHUSETTS shall, pending final determination of such dispute, have the right subject to subsection 18.3 to make entry on the Oil Terminal and use any and
all facilities. 
 21.3    Right to Relet. At any time or from time to time after any such expiration or termination,
SPRAGUE MASSACHUSETTS may contract for the use of the Oil Terminal, or any part thereof, in the name of SPRAGUE MASSACHUSETTS or otherwise, for such term or terms (which may be greater or less than the period which would otherwise have constituted
the balance of the term of this Operating Agreement) and on such conditions (which may include concessions or free Operating Fees) as SPRAGUE MASSACHUSETTS, in its reasonable discretion, may determine and may collect and receive the Operating Fees
therefor. SPRAGUE MASSACHUSETTS shall in no way be responsible or liable for any failure to contract for the use of the Oil Terminal or any part thereof, or for any failure to collect any Operating Fees due upon any such contracting, but agrees to
use reasonable efforts to mitigate damages. 
 21.4    Survival of Covenants. No such expiration or termination of
this Operating Agreement shall relieve SPRAGUE MASSACHUSETTS or SPRAGUE OPERATING RESOURCES of their respective liabilities and obligations under this Operating Agreement and such liability. 
 21.5    Right to Equitable Relief. In the event of any breach or threatened breach by a party of any of the covenants, agreements, terms or conditions contained in this
Operating Agreement, the other party shall be entitled to enjoin such breach or threatened breach and shall have the right to invoke any right and remedy allowed at law or in equity or by statute or otherwise as though re-entry, summary proceedings,
and other remedies were not provided for in this Operating Agreement. 
 22.    INVALID PROVISIONS.

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

  
 13 

 23.    NO WAIVERS. 

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

 

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

  

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

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

22.    LIMITATION OF LIABILITY. 
 Neither SPRAGUE OPERATING RESOURCES nor SPRAGUE MASSACHUSETTS shall be liable to the other for any claim in the nature of incidental, consequential or special damages, or for lost profits or revenues,
arising from a breach or alleged breach of this Agreement. 
 23.    APPLICABLE LAW. 

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

  
 14 

 24.    ENTIRE AGREEMENT. 

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

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

 

	
	SPRAGUE MASSACHUSETTS PROPERTIES, LLC
	
	
By:                       
                                         
                                

	
	SPRAGUE OPERATING RESOURCES LLC
	
	
By:                       
                                         
                                

  
 15 

 EXHIBIT A 
 PLAN OF PREMISES 

  
 16 

 EXHIBIT B 
 INSURANCE REQUIREMENTS 
 General and Excess Liability—SPRAGUE OPERATING
RESOURCES must supply proof of coverage for bodily injury or property damage to third parties in the amount of $10,000,000. Coverage must be occurrence, or if claims- made, must include an extended discovery period of three years from the last day
of the contract. Coverage may be purchased in layers as long as the combined single limit is $10,000,000. Coverage must include coverage for care, custody and control. 
 Workers Compensation—SPRAGUE OPERATING RESOURCES will provide proof of coverage for workers compensation coverage for 1) exposures in the Commonwealth of Massachusetts, 2) Longshoremen and
Harbor Workers’ Act, and 3) Jones Act if applicable. Employers Liability in the amount of $1,000,000 shall be provided. All policies shall contain a waiver of subrogation in favor of the indemnitees. 

Automobile Liability—SPRAGUE OPERATING RESOURCES shall provide automobile liability coverage in the amount of $1,000,000. 

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

Vessel Requirements—SPRAGUE OPERATING RESOURCES must obtain a certificate of insurance from each vessel that docks at the terminal.
The certificate must be obtained prior to docking and must include coverage for Protection & Indemnity and specifically list the vessel. 
 Oil Pollution Coverage—SPRAGUE OPERATING RESOURCES shall maintain all coverage required pursuant to the Oil Pollution Act of 1990 and the regulations promulgated thereunder, as the same may be
in effect from time to time. SPRAGUE OPERATING RESOURCES shall also insure that all vessels transporting Oil to the Oil Terminal maintain such coverage.

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