SEC Contract Filing

Filing Date: 2015-06-02

Document Content:
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>d935632dex107.htm
<DESCRIPTION>EX-10.7
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<TITLE>EX-10.7</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.7 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B></B><B><I>Execution Version</I></B><B> </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>ENVIRONMENTAL INDEMNITY AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>THIS ENVIRONMENTAL INDEMNITY AGREEMENT (this &#147;<B>Agreement</B>&#148;) made as of the 1st day of June, 2015 by HAWAII INDEPENDENT
ENERGY, LLC, a Hawaii limited liability company, having an office at One Memorial City Plaza, 800 Gessner Road, Suite 875, Houston, Texas 77024 (<B>&#147;Indemnitor&#148;</B>) in favor of J. ARON&nbsp;&amp; COMPANY, a New York general partnership,
having an office at 200 West Street, New York, New York 10282-2198 (together with its successors and/or assigns, &#147;<B>Indemnitee</B>&#148;) and other Indemnified Parties (defined below).<B> </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">RECITALS: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B></B>A. Reference
is made to the (i)&nbsp;Supply and Offtake Agreement dated as of June&nbsp;1, 2015 (as amended, modified, renewed or extended from time to time, the &#147;<B>S&amp;O Agreement</B>&#148;) between Indemnitor and Indemnitee, (ii)&nbsp;the ISDA Master
Agreement dated as of June&nbsp;1, 2015 (as amended, modified, renewed or extended from time to time, the &#147;<B>Master Agreement</B>&#148;) between Indemnitor and Indemnitee, including all schedules, annexes and exhibits thereto and all
confirmations from time to time issued thereunder and subject thereto, (iii)&nbsp;Pledge and Security Agreement dated as of June&nbsp;1, 2015 (as amended, modified, renewed or extended from time to time, the &#147;<B>Security Agreement</B>&#148;)
between Indemnitor and Indemnitee, and (iv)&nbsp;the Mortgage and Security Agreement dated as of June&nbsp;1, 2015 (as amended, modified, renewed or extended from time to time, the &#147;<B>Mortgage</B>&#148;) by Indemnitor in favor of Indemnitee.
Capitalized terms not otherwise defined herein shall have the meaning set forth in the S&amp;O Agreement. Indemnitee has agreed to deliver Crude Oil and purchase all Products upon and subject to the terms of the S&amp;O Agreement and may from time
to time with Indemnitor enter into transactions subject to the Master Agreement. It is a condition precedent to Indemnitee&#146;s obligations under the S&amp;O Agreement and the Master Agreement that the Indemnitor enter into this Agreement.<B>
</B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. Pursuant to the requirements of the S&amp;O Agreement, the Master Agreement, and the Mortgage, Indemnitor is providing the
indemnification, representations, warranties, covenants and other matters described in this Agreement for the benefit of the Indemnified Parties. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">C. Indemnitor is entering into this Agreement to induce Indemnitee to enter into the S&amp;O Agreement. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">AGREEMENT </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">NOW THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Indemnitor hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as
follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">1. <U>ENVIRONMENTAL REPRESENTATIONS AND WARRANTIES</U>. Except as otherwise disclosed by that certain Phase I environmental
report in respect of the Property (as defined in the Mortgage) delivered to Indemnitee (referred to below as the &#147;<B>Environmental Report</B>&#148;), a copy of which has been provided to Indemnitee, or as disclosed in Schedule 1 hereto, and
subject in all respects to Indemnitor&#146;s anticipated final binding settlement </P>

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with the United States Environmental Protection Agency and the United States Department of Justice and other applicable agencies or entities, if any, regarding alleged violations of the Clean Air
Act related to the Indemnitor&#146;s ownership and operation of the Refinery, (a)&nbsp;to Indemnitor&#146;s knowledge, there are no Hazardous Substances (defined below) or underground storage tanks in, on, or under the Property, except those that
are in material compliance with all applicable Environmental Laws (defined below) and with permits issued pursuant thereto; (b)&nbsp;to Indemnitor&#146;s knowledge, there are no material past, present or threatened Releases (defined below) of
Hazardous Substances in, on, under or from the Property which are reasonably anticipated to require material remedial action excepting such past Releases which have been remediated in accordance with Environmental Law; (c)&nbsp;to Indemnitor&#146;s
knowledge, there is no threat of any Release of Hazardous Substances migrating to the Property that would require remedial action by Indemnitor; (d)&nbsp;to Indemnitor&#146;s