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Put/Call Registration Rights & Standstill Agreement

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Exhibit 10.2 ================================================================================


PUT/CALL, REGISTRATION RIGHTS


AND


STANDSTILL AGREEMENT


Dated as of January 1, 1998


among


MARATHON OIL COMPANY,


USX CORPORATION,


ASHLAND INC.


and


MARATHON ASHLAND PETROLEUM LLC


================================================================================


Contents, p. 1


TABLE OF CONTENTS


Page
----


ARTICLE I


Certain Definitions; Adjustable Amounts; Representations and Warranties
----------------------------------------------------------------------


SECTION 1.01. Definitions................................................. 2 SECTION 1.02. Adjustable Amounts.......................................... 17 SECTION 1.03. Representations and Warranties.............................. 18


ARTICLE II


Special Termination Right
-------------------------


SECTION 2.01. Special Termination Right................................... 20 SECTION 2.02. Special Termination Price................................... 20 SECTION 2.03. Method of Exercise.......................................... 21


ARTICLE III


Marathon Call Right
------------------- SECTION 3.01. Marathon Call Right......................................... 21 SECTION 3.02. Marathon Call Price......................................... 21 SECTION 3.03. Method of Exercise.......................................... 22 SECTION 3.04. Limitation on Marathon's Ability To Exercise
its Marathon Call Right................................ 22


ARTICLE IV


Ashland Put Right
----------------- SECTION 4.01. Ashland Put Right........................................... 22 SECTION 4.02. Ashland Put Price........................................... 23 SECTION 4.03. Method of Exercise.......................................... 26 SECTION 4.04. Ashland Put Price Election Notice........................... 26 SECTION 4.05. Limitation on Ashland's Ability To Exercise
its Ashland Put Right.................................. 27


Contents, p. 2


ARTICLE V


Termination of Certain Distributions; Revocable Proxies
------------------------------------------------------- SECTION 5.01. Termination of Certain Distributions........................ 27 SECTION 5.02. Revocable Proxies........................................... 30


ARTICLE VI


Determination of the Appraised Value of the Company
--------------------------------------------------- SECTION 6.01. Determination of Appraised Value of the
Company................................................ 31


ARTICLE VII


Determination of the Fair Market Value of Securities
---------------------------------------------------- SECTION 7.01. General..................................................... 35 SECTION 7.02. Determination of Fair Market Value of
Marathon Debt Securities............................... 35 SECTION 7.03. Determination of Fair Market Value of
Actively Traded Marathon Equity Securities............. 35 SECTION 7.04. Determination of Fair Market Value of Non-
Actively Traded Marathon Equity Securities............. 39


ARTICLE VIII


Certain Matters Relating to Securities
--------------------------------------


SECTION 8.01. Certain Requirements with Respect to
Marathon Debt Securities............................... 42 SECTION 8.02. Procedures with Respect to the Issuance of
Securities............................................. 42 SECTION 8.03. Holding Period.............................................. 45 SECTION 8.04. Manner of Sale of Marathon Equity
Securities............................................. 45


ARTICLE IX


Closing; Conditions to Closing; Consequences of Delay
----------------------------------------------------- SECTION 9.01. Closing..................................................... 46 SECTION 9.02. Conditions to Closing....................................... 49 SECTION 9.03. Consequences of a Delayed Closing of the
Marathon Call Right or the Ashland Put Right
Where Ashland Is at Fault.............................. 54


Contents, p. 3 SECTION 9.04. Consequences of a Delayed Closing of the
Marathon Call Right or the Ashland Put Right
Where Marathon or USX Is at Fault...................... 55 SECTION 9.05. Consequences of a Delayed Closing of the
Marathon Call Right or the Ashland Put Right
Where No Party Is at Fault............................. 57 SECTION 9.06. Consequences of Delayed Second or Third
Scheduled Installment Payment.......................... 58 SECTION 9.07. Consequences of a Delayed Closing of the
Special Termination Right Where Terminating
Member Is at Fault..................................... 58 SECTION 9.08. Consequences of a Delayed Closing of the
Special Termination Right Where Non-
Terminating Member Is at Fault......................... 60 SECTION 9.09. Consequences of Delayed Closing of Special
Termination Right Where No Party Is at
Fault.................................................. 62


ARTICLE X
Registration Rights
------------------- SECTION 10.01. Registration upon Request................................... 63 SECTION 10.02. Covenants of the Issuer..................................... 67 SECTION 10.03. Fees and Expenses........................................... 72 SECTION 10.04. Indemnification and Contribution............................ 73 SECTION 10.05. Underwriting Agreement; Purchase
Agreement.............................................. 77 SECTION 10.06. Undertaking To File Reports................................. 78


ARTICLE XI


Covenants
--------- SECTION 11.01. Cooperation; Commercially Reasonable Best
Efforts................................................ 78 SECTION 11.02. Antitrust Notification; FTC or DOJ
Investigation.......................................... 78 SECTION 11.03. Governmental Filings re: Ashland LOOP/LOCAP
Interest............................................... 80 SECTION 11.04. Designated Sublease Agreements.............................. 81


Contents, p. 4


ARTICLE XII


Standstill Agreement
--------------------


SECTION 12.01. Restrictions of Certain Actions by Marathon
and USX................................................ 83 SECTION 12.02. Restrictions of Certain Actions by
Ashland................................................ 86


ARTICLE XIII


Indemnification
---------------


SECTION 13.01. Indemnification re: Ashland Representatives'
Revocable Proxies and the Ashland LOOP/LOCAP
Revocable Proxy........................................ 88


SECTION 13.02. Indemnification re: Marathon Representatives
Revocable Proxies...................................... 89 SECTION 13.03. Indemnification re: Transfer of Economic
Interests in the Ashland LOOP/LOCAP Interest
to Marathon, the Company or a Person
Designated by Marathon................................. 89 SECTION 13.04. Procedures Relating to Indemnification Under
This Article XIII...................................... 90


ARTICLE XIV


Company Competitive Businesses;
-------------------------------
Detrimental Activities; Limitations on the
------------------------------------------
Company Entering into Valvoline's Business
------------------------------------------


SECTION 14.01. Competitive Businesses...................................... 90 SECTION 14.02. Detrimental Activities...................................... 94 SECTION 14.03. Limitations on the Company Entering into the
Valvoline Business..................................... 96 SECTION 14.04. Purchase Price of Competitive Business
Assets.................................................103


Contents, p. 5


ARTICLE XV

Survival; Assignment
--------------------


SECTION 15.01. Survival and Assignment re: Marathon and
USX....................................................106 SECTION 15.02. Survival and Assignment re: Ashland........................107 SECTION 15.03. Survival and Assignment re: the
Company................................................109 SECTION 15.04. Assignment and Assumption Agreements........................109 SECTION 15.05. Consequences of Unpermitted Assignments.....................110


ARTICLE XVI


Dispute Resolution Procedures
----------------------------- SECTION 16.01. General.....................................................110 SECTION 16.02. Dispute Notice and Response.................................110 SECTION 16.03. Negotiation Between Chief Executive
Officers...............................................110 SECTION 16.04. Right to Equitable Relief Preserved.........................111


ARTICLE XVII


Miscellaneous
------------- SECTION 17.01. Notices.....................................................111 SECTION 17.02. Merger and Entire Agreement.................................113 SECTION 17.03. Parties in Interest.........................................113 SECTION 17.04. Counterparts................................................113 SECTION 17.05. Amendment; Waiver...........................................113 SECTION 17.06. Severability................................................113 SECTION 17.07. GOVERNING LAW...............................................114 SECTION 17.08. Enforcement.................................................114 SECTION 17.09. Table of Contents, Headings and Titles......................115 SECTION 17.10. Use of Certain Terms; Rules of
Construction...........................................115 SECTION 17.11. Holidays....................................................115 SECTION 17.12. Third Parties...............................................115 SECTION 17.13. Liability for Affiliates....................................115 SECTION 17.14. Schedules...................................................116


Contents, p. 6


APPENDIX A Certain Definitions


SCHEDULE 1.03(c) Conflicts SCHEDULE 1.03(d) Consents SCHEDULE 14.01(a) Competitive Businesses


PUT/CALL, REGISTRATION RIGHTS AND STANDSTILL AGREEMENT dated as
of [January 1], 1998,/2/ by and among MARATHON OIL COMPANY, an
Ohio corporation ("Marathon"), USX CORPORATION, a Delaware
--------
corporation ("USX"), ASHLAND INC., a Kentucky corporation
---
("Ashland"), and MARATHON ASHLAND PETROLEUM LLC, a Delaware
---------
limited liability company (the "Company").
-------


Preliminary Statement
---------------------


WHEREAS Marathon and Ashland have previously entered into a Master Formation Agreement dated as of December 12, 1997, relating to the formation of the Company, which will own and operate certain of Marathon's and Ashland's respective petroleum supply, refining, marketing, and transportation businesses;


WHEREAS Marathon and Ashland have previously entered into an Asset Transfer and Contribution Agreement dated as of December 12, 1997, pursuant to which, among other things, Marathon and Ashland will transfer their respective Businesses (as defined below) to the Company;


WHEREAS Marathon, USX and Ashland have previously entered into a Parent Agreement dated as of December 12, 1997;


WHEREAS Marathon and Ashland have entered into an LLC Agreement dated as of the date hereof in order to establish the rights and responsibilities of each of them with respect to the governance, financing and operation of the Company;


WHEREAS Marathon and Ashland have agreed that under certain circumstances, Ashland will sell to Marathon and Marathon will purchase from Ashland all of Ashland's Membership Interests and the Ashland LOOP/LOCAP Interest (each as defined below), upon the terms and subject to the conditions set forth herein;


- --------------------------------- /2/ To be dated as of the Closing Date under the Master Formation Agreement.


2


WHEREAS Marathon and Ashland have agreed that if Marathon or Ashland elects to terminate the Term of the Company pursuant to Section 2.03 of the LLC Agreement, then the non-terminating Member shall have the right to purchase from the terminating Member all of the terminating Member's Membership Interests, upon the terms and subject to the conditions set forth herein;


WHEREAS Marathon and USX have agreed that Marathon and USX will grant Ashland certain registration rights with respect to any Securities (as defined below) that Marathon or USX issues to Ashland pursuant to this Agreement in connection with the purchase by Marathon of Ashland's Membership Interests and the Ashland LOOP/LOCAP Interest, upon the terms and subject to the conditions set forth herein;


WHEREAS Marathon and USX have agreed to certain restrictions with respect to actions relating to Ashland Voting Securities (as defined below), upon the terms and subject to the conditions set forth herein;


WHEREAS Ashland has agreed to certain restrictions with respect to actions relating to USX Voting Securities (as defined below), upon the terms and subject to the conditions set forth herein; and


WHEREAS Marathon, USX and Ashland have agreed to certain restrictions with respect to certain of their business activities, upon the terms and subject to the conditions set forth herein.


NOW, THEREFORE, the parties hereto hereby agree as follows:


ARTICLE I


Certain Definitions; Adjustable Amounts;
----------------------------------------
Representations and Warranties
------------------------------


SECTION 1.01. Definitions. Defined terms used in this Agreement
------------ shall have the meanings ascribed to them by definition in this Agreement or in Appendix A. In addition,


3


when used herein the following terms have the following meanings:


"Actively Traded Marathon Equity Securities" means Marathon Equity
------------------------------------------ Securities for which there is an active trading market on the National Market System of the NASDAQ or on a National Securities Exchange during the period commencing 30 days prior to the Closing Date or applicable Installment Payment Date and ending on the Closing Date or such Installment Payment Date.


"Adjustable Amount" has the meaning set forth in Section 1.02.
-----------------


"Adjustable Amounts Notice" has the meaning set forth in Section 1.02.
-------------------------


"Adjustment Year" has the meaning set forth in Section 1.02.
---------------


"Agreement" means this Put/Call, Registration Rights, and Standstill
--------- Agreement, as the same may be amended, restated, supplemented or otherwise modified from time to time.


"Appraised Value Determination Date" has the meaning set forth in
---------------------------------- Section 6.01(c).


"Appraised Value of the Company" has the meaning set forth in Section
------------------------------ 6.01(c).


"Ashland Designated Sublease Agreements" means the Ashland Sublease
--------------------------------------- Agreements attached as Exhibits L-1, L-2, L-3 and L-4 to the Asset Transfer and Contribution Agreement.


"Ashland Exercise Period Distributions" has the meaning set forth in
------------------------------------- Section 5.01(a)(i).


"Ashland LOOP/LOCAP Interest" means (i) the 4.0% interest in LOOP LLC
--------------------------- owned by Ashland on the date hereof pursuant to the limited liability company agreement of LOOP LLC dated as of October 18, 1996, among Ashland, Marathon Pipe Line Company, Murphy Oil Corporation, Shell Oil Company and Texaco Inc. and (ii) the 86.20 shares of common stock of LOCAP, Inc. owned by Ashland, which shares on the date hereof represent an 8.6% interest in LOCAP, Inc.; provided
--------


4


that in the event there is a reclassification of the LOOP, LLC membership interests or the common stock of LOCAP, Inc. into one or more different types or classes of securities, the "Ashland LOOP/LOCAP Interest" shall instead include such different types or classes of securities.


"Ashland LOOP/LOCAP Irrevocable Proxy" has the meaning set forth in
------------------------------------ Section 9.02(e).


"Ashland LOOP/LOCAP Revocable Proxy" has the meaning set forth in
---------------------------------- Section 5.02(c).


"Ashland Material Adverse Effect" means, for purposes of Section 1.03,
------------------------------- either (i) a material adverse effect on the ability of Ashland to perform its obligations under this Agreement or (ii) an effect on the business, operations, assets, liabilities, results of operations, cash flows, condition (financial or otherwise) or prospects of Ashland's Business which results in a Loss of two million dollars ($2,000,000) or more, or, if such Loss is not susceptible to being measured in monetary terms, is otherwise materially adverse to Ashland's Business; provided that any such effect relating to or resulting from any change
-------- in the price of petroleum or petroleum byproducts, general economic conditions or local, regional, national or international industry conditions (including changes in financial or market conditions) shall be deemed not to constitute an Ashland Material Adverse Effect.


"Ashland Membership Interests" means the initial Membership Interests
---------------------------- of Ashland on the date hereof, together with any additional Membership Interests that Ashland may hereafter acquire.


"Ashland Put Exercise Date" has the meaning set forth in Section 4.03.
-------------------------


"Ashland Put Exercise Notice" has the meaning set forth in Section
--------------------------- 4.03.


"Ashland Put Price" has the meaning set forth in Section 4.01.
-----------------


"Ashland Put Price Election Date" has the meaning set forth in Section
------------------------------- 4.04(b).


5


"Ashland Put Price Election Notice" has the meaning set forth in
--------------------------------- Section 4.04(a).


"Ashland Put Right" has the meaning set forth in Section 4.01.
-----------------


"Ashland Representatives Revocable Proxies" has the meaning set forth
----------------------------------------- in Section 5.02(a).


"Ashland Special Termination Right" means the Special Termination
--------------------------------- Right granted to Ashland pursuant to Section 2.01.


"Ashland Voting Securities" means the securities of Ashland (i) having
------------------------- the power under ordinary circumstances to elect at least a majority of the board of directors of Ashland (whether or not any senior class of stock has voting power by reason of any contingency) or (ii) convertible into or exchangeable for securities of Ashland having the power under ordinary circumstances to elect at least a majority of the board of directors of Ashland (whether or not any senior class of stock has voting power by reason of any contingency).


"Average Annual Level" means for any twelve-month period ending on
-------------------- December 31 of any calendar year, the average of the level of the Price Index ascertained by adding the twelve monthly levels of the Price Index during such twelve-month period and dividing the total by twelve.


"Base Level" has the meaning set forth in the LLC Agreement.
----------


"Base Rate" means a rate of interest closely approximating that of
--------- comparable term senior debt securities or debt obligations priced to trade at par issued by USX or issued by Marathon and fully guaranteed by USX, or issued by a firm of comparable credit standing.


"Blackout Period" has the meaning set forth in Section 10.01(b).
---------------


"Bulge Bracket Investment Banking Firm" means an investment banking
------------------------------------- firm that is listed as one of the top 10 investment banking firms for all domestic equity issues in terms of the aggregate dollar amount of such issues (with full credit given to the lead manager) as reported in the


6


latest issue of Investment Dealers' Digest or a publication (or otherwise) of similar national repute which provides rankings of investment banking firms by size of domestic issues.


"Bulk Motor Oil Business" has the meaning set forth in Section
----------------------- 14.03(h).


"Cash" means United States dollars or immediately available funds in
---- United States dollars.


"Closing" has the meaning set forth in Section 9.01(a).
-------


"Closing Date" has the meaning set forth in Section 9.01(a).
------------


"Commission" means the Securities and Exchange Commission or any
---------- successor agency having jurisdiction under the Securities Act.


"Company Competitive Business" has the meaning set forth in Section
---------------------------- 14.01(a).


"Company Competitive Business Assets" has the meaning set forth in
----------------------------------- Section 14.01(d).


"Company Competitive Third Party" has the meaning set forth in Section
------------------------------- 14.01(d).


"Company Material Adverse Effect" means, for purposes of Section 1.03,
------------------------------- an effect on the business, operations, assets, liabilities, results of operations, cash flows, condition (financial or otherwise) or prospects of the Company's Business wh
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