SEC Contract Filing

Filing Date: 2017-03-16

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>srlpcarboupaedgar.htm
<DESCRIPTION>EXHIBIT 10.1
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<DIV><FONT size="1" style="font-size:1pt;color:white">Execution Copy &#13;&#10;{W5670291.3}&#13;&#10; UNIT PURCHASE AGREEMENT &#13;&#10;THIS UNIT PURCHASE AGREEMENT is made as of March 13, 2017 by and between &#13;&#10;Sprague Resources, LP, a Delaware limited partnership (the &#8220;Parent&#8221;), and Carbo Industries, &#13;&#10;Inc., a New York corporation (the &#8220;Investor&#8221;). &#13;&#10;RECITALS &#13;&#10;A. The Parent is the parent of Sprague Operating Resources, LLC, a Delaware &#13;&#10;limited liability company (&#8220;Buyer&#8221;), which has entered into an Asset Purchase Agreement, of &#13;&#10;even date herewith, by and among Buyer, Investor and the other Seller named therein (the &#8220;Asset &#13;&#10;Purchase Agreement&#8221;). Capitalized terms used in this Agreement have the meanings ascribed &#13;&#10;to them in the Asset Purchase Agreement. &#13;&#10;B. The Parent has agreed to issue a number of its common units representing limited &#13;&#10;partnership interests (the &#8220;Common Units&#8221;) determined as set forth herein in partial payment of &#13;&#10;the Purchase Price under the Asset Purchase Agreement. The Common Units issued pursuant to &#13;&#10;this Agreement are referred to as the &#8220;Units&#8221;. &#13;&#10;C. The Parent has also agreed to grant to the Investor certain piggyback registration &#13;&#10;rights with respect to the Units, on the terms set forth herein. &#13;&#10;The parties hereby agree as follows: &#13;&#10;1. Purchase and Sale of Units.&#13;&#10; 1.1 Sale and Issuance of Units. Subject to the terms and conditions of this &#13;&#10;Agreement, in consideration of the closing of the transactions contemplated by the Asset &#13;&#10;Purchase Agreement, the Parent agrees to issue to the Investor at the Closing, and the Investor &#13;&#10;agrees to accept, that number of Units as is equal to (a) (i) $30,000,000 divided by (ii) the &#13;&#10;volume weighted average closing price of the Common Units as of 4:00 p.m. on the New York &#13;&#10;Stock Exchange for the ten (10) trading days ending on the date of the announcement by the &#13;&#10;Parent of the execution of the Asset Purchase Agreement and the ten (10) trading days following &#13;&#10;the announcement by the Parent of the execution of the Asset Purchase Agreement, plus (b) an &#13;&#10;additional number of Units equal to one and one half percent (1.5%) of the number of Units &#13;&#10;determined in accordance with clause (a) of this Section 1.1. &#13;&#10;1.2 Closing; Delivery. &#13;&#10;(a) The issuance of the Units shall take place simultaneously with, and &#13;&#10;at the same time and in the same manner as, the Closing on the Closing Date (as such terms are &#13;&#10;defined in the Asset Purchase Agreement) (which time and place are designated as the &#13;&#10;&#8220;Closing&#8221;). &#13;&#10;(b) At the Closing, the Parent shall deliver to the Investor the Units in &#13;&#10;book entry form through the facilities of the Depositary Trust Corporation. &#13;&#10;Exhibit 10.1&#13;&#10;&#13;&#10;</FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> &#13;&#10;{W5670291.3} 2 &#13;&#10;1.3 Defined Terms Used in this Agreement. In addition to the terms defined &#13;&#10;above and throughout this Agreement, the following terms used in this Agreement shall be &#13;&#10;construed to have the meanings set forth or referenced below. &#13;&#10;(a) &#8220;Affiliate&#8221; means, with respect to a specified Person, any other &#13;&#10;Person, whether now in existence or hereafter created, directly or indirectly controlling, &#13;&#10;controlled by or under direct or indirect common control with such specified Person. For &#13;&#10;purposes of this definition, &#8220;control&#8221; (including, with correlative meanings, &#8220;controlling,&#8221; &#13;&#10;&#8220;controlled by&#8221; and &#8220;under common control with&#8221;) means the power to direct or cause the &#13;&#10;direction of the management and policies of such Person, directly or indirectly, whether through &#13;&#10;the ownership of voting securities, by contract or otherwise. &#13;&#10;(b) &#8220;Asset Purchase Agreement&#8221; has the meaning set forth in the &#13;&#10;recitals to this Agreement. &#13;&#10;(c) &#8220;Business Day&#8221; means any day except Saturday, Sunday or any &#13;&#10;other day on which commercial banks located in the State of New York are authorized or &#13;&#10;required by Law to be closed for business. &#13;&#10;(d) &#8220;Buyer&#8221; has the meaning set forth in the recitals to this &#13;&#10;Agreement. &#13;&#10;(e) &#8220;Closing&#8221; has the meaning set forth in Section 1.2. &#13;&#10;(f) &#8220;Commission&#8221; means the United States Securities and Exchange &#13;&#10;Commission. &#13;&#10;(g) &#8220;Common Units&#8221; has the meaning set forth in the recitals to this &#13;&#10;Agreement. &#13;&#10;(h) &#8220;Confidential Information&#8221; means any confidential information &#13;&#10;provided to the Investor regarding the Parent and its Affiliates or any fact relating to discussions &#13;&#10;or negotiations with the Parent in connection with the Transaction Documents. &#13;&#10;(i) &#8220;Credit Facility&#8221; means that certain Credit Agreement dated &#13;&#10;December 9, 2014 among Sprague Operating Resources LLC, the several lenders parties thereto, &#13;&#10;and