EX-10.1


 Exhibit 10.1 

[Execution Copy] 

PURCHASE AND SALE AGREEMENT 

dated as of September 27, 2016 

and 
 effective as of
October 1, 2016 
 by and among 

SHELL PIPELINE COMPANY LP, 

EQUILON ENTERPRISES LLC D/B/A SHELL OIL PRODUCTS US, 

SHELL MIDSTREAM PARTNERS, L.P., 

and 
 SHELL MIDSTREAM
OPERATING LLC 






 TABLE OF CONTENTS 

 

									
	ARTICLE I DEFINITIONS	  	 	2	  
				
		 	Section 1.1	    	Definitions	  	 	2	  
				
		 	Section 1.2	    	Construction	  	 	9	  
		
	ARTICLE II PURCHASE AND SALE AND CLOSING	  	 	9	  
				
		 	Section 2.1	    	Purchase and Sale	  	 	9	  
				
		 	Section 2.2	    	Consideration	  	 	10	  
				
		 	Section 2.3	    	Closing	  	 	10	  
				
		 	Section 2.4	    	Potential Post-Closing Adjustment	  	 	12	  
				
		 	Section 2.5	    	Potential Purchase Price Reduction	  	 	12	  
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF SPLC AND SOPUS	  	 	13	  
				
		 	Section 3.1	    	Organization	  	 	13	  
				
		 	Section 3.2	    	Authority and Approval	  	 	14	  
				
		 	Section 3.3	    	No Conflict; Consents	  	 	14	  
				
		 	Section 3.4	    	Capitalization; Title to Subject Interests	  	 	15	  
				
		 	Section 3.5	    	Financial Information; Undisclosed Liabilities	  	 	16	  
				
		 	Section 3.6	    	Title to Mars and Odyssey Properties	  	 	17	  
				
		 	Section 3.7	    	Litigation; Laws and Regulations	  	 	17	  
				
		 	Section 3.8	    	No Adverse Changes	  	 	18	  
				
		 	Section 3.9	    	Taxes	  	 	18	  
				
		 	Section 3.10	    	Environmental Matters	  	 	19	  
				
		 	Section 3.11	    	Licenses; Permits	  	 	20	  
				
		 	Section 3.12	    	Material Contracts	  	 	21	  
				
		 	Section 3.13	    	Employees	  	 	22	  
				
		 	Section 3.14	    	Transactions with Affiliates	  	 	22	  
				
		 	Section 3.15	    	Insurance	  	 	23	  
				
		 	Section 3.16	    	Intellectual Property Rights	  	 	23	  
				
		 	Section 3.17	    	Brokerage Arrangements	  	 	24	  
				
		 	Section 3.18	    	Books and Records	  	 	24	  
				
		 	Section 3.19	    	Regulatory Matters	  	 	24	  
				
		 	Section 3.20	    	Management Projections and Budget	  	 	24	  


  
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	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING	  	25
				
		 	Section 4.1	    	Organization and Existence	  	25
				
		 	Section 4.2	    	Authority and Approval	  	25
				
		 	Section 4.3	    	No Conflict; Consents	  	25
				
		 	Section 4.4	    	Brokerage Arrangements	  	26
				
		 	Section 4.5	    	Litigation	  	26
				
		 	Section 4.6	    	Investment Intent	  	27
		
	ARTICLE V ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS	  	27
				
		 	Section 5.1	    	Operation of Mars and Odyssey	  	27
				
		 	Section 5.2	    	Cooperation; Further Assurances	  	29
		
	ARTICLE VI TAX MATTERS	  	29
				
		 	Section 6.1	    	Liability for Taxes	  	29
				
		 	Section 6.2	    	Cooperation	  	30
				
		 	Section 6.3	    	Transfer Taxes	  	30
				
		 	Section 6.4	    	Allocation of Consideration	  	30
				
		 	Section 6.5	    	Conflict	  	31
		
	ARTICLE VII CONDITIONS TO CLOSING	  	31
				
		 	Section 7.1	    	Conditions to the Obligations of SHLX and Operating	  	31
				
		 	Section 7.2	    	Conditions to the Obligations of SPLC and SOPUS	  	32
		
	ARTICLE VIII INDEMNIFICATION	  	33
				
		 	Section 8.1	    	Indemnification of SHLX	  	33
				
		 	Section 8.2	    	Indemnification of SPLC and SOPUS	  	33
				
		 	Section 8.3	    	Survival	  	34
				
		 	Section 8.4	    	Indemnification Procedures	  	34
				
		 	Section 8.5	    	Direct Claim	  	35
				
		 	Section 8.6	    	Limitations on Indemnification	  	36
				
		 	Section 8.7	    	Sole Remedy	  	36
		
	ARTICLE IX MISCELLANEOUS	  	37
				
		 	Section 9.1	    	Acknowledgements	  	37
				
		 	Section 9.2	    	Cooperation; Further Assurances	  	37
				
		 	Section 9.3	    	Expenses	  	37
				
		 	Section 9.4	    	Notices	  	37
				
		 	Section 9.5	    	Arbitration	  	38
				
		 	Section 9.6	    	Governing Law	  	39


  
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		 	Section 9.7	    	Public Statements	  	40
				
		 	Section 9.8	    	Entire Agreement; Amendments and Waivers	  	40
				
		 	Section 9.9	    	Conflicting Provisions	  	40
				
		 	Section 9.10	    	Binding Effect and Assignment	  	40
				
		 	Section 9.11	    	Severability	  	41
				
		 	Section 9.12	    	Interpretation	  	41
				
		 	Section 9.13	    	Headings and Disclosure Letter	  	41
				
		 	Section 9.14	    	Multiple Counterparts	  	41
				
		 	Section 9.15	    	Action by SHLX	  	41


  
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 PURCHASE AND SALE AGREEMENT 

This Purchase and Sale Agreement (this “Agreement”) is made as of September 27, 2016, by and among Shell Pipeline
Company LP, a Delaware limited partnership (“SPLC”), Equilon Enterprises LLC d/b/a Shell Oil Products US, a Delaware limited liability company (“SOPUS”), Shell Midstream Partners, L.P., a Delaware limited
partnership (“SHLX”), and Shell Midstream Operating LLC, a Delaware limited liability company that is wholly owned by SHLX (“Operating”). 

RECITALS 
 WHEREAS, SPLC
owns 42.9% of the issued and outstanding partnership interests of Mars Oil Pipeline Company, a Texas general partnership (“Mars”), and SOPUS owns 71.0% of the issued and outstanding membership interests of Odyssey Pipeline L.L.C., a
Delaware limited liability company (“Odyssey”); and 
 WHEREAS, Operating owns 28.6% of the issued and outstanding general
partnership interests in Mars; and 
 WHEREAS, SPLC and SOPUS desire to sell to SHLX or its designee, and SHLX desires to accept and acquire
or to cause its designee to accept and acquire their respective interests in: (i) 20.0% of the issued and outstanding partnership interests in Mars (the “Mars Subject Interests”) and (ii) 49.0% of the issued and
outstanding membership interests in Odyssey (the “Odyssey Subject Interests” and, together with the Mars Subject Interests, the “Subject Interests”) in accordance with the terms of this Agreement (the
“Transaction”); and 
 WHEREAS, (a) the Conflicts Committee (the “Conflicts Committee”) of the Board
of Directors (the “Board of Directors”) of Shell Midstream Partners GP LLC, the general partner of SHLX (the “General Partner”), has previously (i) received an opinion of Evercore Group L.L.C., the financial
advisor to the Conflicts Committee (the “Financial Advisor”), that the consideration to be paid by SHLX pursuant to the Transaction is fair, from a financial point of view, to SHLX and its unitholders, other than the General
Partner, Shell Midstream LP Holdings LLC and their respective Affiliates and (ii) based on the belief of the members of the Conflicts Committee that the consummation of the Transaction on the terms and conditions set forth in this Agreement
would not be adverse to the best interests of the Partnership Group (as defined in the First Amended and Restated Agreement of Limited Partnership of SHLX dated as of November 3, 2014 (the “Partnership Agreement”)), unanimously
approved the Transaction, such approval constituting “Special Approval” for purposes of the Partnership Agreement, and unanimously recommended that the Board of Directors approve the Transaction and (b) subsequently, the Board
of Directors has approved the Transaction. 
 NOW, THEREFORE, in consideration of the premises and the respective representations,
warranties, covenants, agreements and conditions contained herein, the parties hereto agree as follows: 

  
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 ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. 

The respective terms defined in this Section 1.1 shall, when used in this Agreement, have the respective meanings specified herein,
with each such definition equally applicable to both singular and plural forms of the terms so defined: 
 “Affiliate,”
means, with respect to any Person, any other Person that directly or indirectly Controls, is Controlled by or is under common Control with such Person; provided that such term when used (a) with respect to SPLC or SOPUS, means any other Person
that directly or indirectly Controls, is Controlled by or is under common Control with SPLC or SOPUS, excluding SHLX, the General Partner, Operating and its subsidiaries and equity interests, and (b) with respect to SHLX, the term
“Affiliate” shall mean only the General Partner, Operating and Operating’s subsidiaries and equity interests. No Person shall be deemed an Affiliate of any Person solely by reason of the exercise or existence of rights,
interests or remedies under this Agreement. 
 “Agreement” has the meaning ascribed to such term in the preamble. 

“Applicable Law” has the meaning ascribed to such term in Section 3.3(a). 

“Assets” means the Mars Assets and the Odyssey Assets, taken as a whole. 

“Assignment Agreements” means (i) the Assignment Agreement among SPLC, SHLX, and Operating dated as of the Closing Date
relating to the Mars Subject Interests (the “Mars Assignment Agreement”) and (ii) the Assignment Agreement among SOPUS, SHLX, and Operating dated as of the Closing Date relating to the Odyssey Subject Interests (the
“Odyssey Assignment Agreement”). 
 “Board of Directors” has the meaning ascribed to such term in the
recitals. 
 “Business Day” means any day except a Saturday, a Sunday and any day in which in Houston, Texas, United States
shall be a legal holiday or a day on which banking institutions are authorized or required by law or other government action to close. 

“Ceiling Amount” has the meaning ascribed to such term in Section 8.6(a). 

“CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act. 

“Closing” has the meaning ascribed to such term in Section 2.3. 

“Closing Date” means the date on which the Closing occurs. 

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

  
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 “Conflicts Committee” has the meaning ascribed to such term in the recitals.

 “Consideration” means Three Hundred and Fifty Million Dollars ($350,000,000). 

“Control” and its derivatives mean the possession, directly or indirectly, 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. 

“Damages” means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines,
penalties, costs and expenses (including court costs and reasonable attorneys’ and expert’s fees) of any and every kind or character, known or unknown, fixed or contingent. 

“Deductible Amount” has the meaning ascribed to such term in Section 8.6(a). 

“Delaware LLC Act” means the Delaware Limited Liability Company Act, as amended. 

“Direct Claim” has the meaning ascribed to such term in Section 8.5. 

“Disclosure Letter” has the meaning ascribed to such term in Article III. 

“Dispute” has the meaning ascribed to such term in Section 9.5(a). 

“Effective Time” means 12:01 a.m., Central Standard Time, on October 1, 2016. 

“Environmental Laws” means, without limitation, the following laws, in effect, and as interpreted and enforced, as of the
Closing Date: (a) the Resource Conservation and Recovery Act; (b) the Clean Air Act; (c) CERCLA; (d) the Federal Water Pollution Control Act; (e) the Safe Drinking Water Act; (f) the Toxic Substances Control Act;
(g) the Emergency Planning and Community Right-to-Know Act; (h) the National Environmental Policy Act; (i) the Pollution Prevention Act of 1990; (j) the Oil Pollution Act of 1990; (k) the Hazardous Materials Transportation
Act; (l) the Federal Insecticide, Fungicide and Rodenticide Act; (m) all laws, statutes, rules, regulations, orders, judgments, decrees promulgated or issued with respect to the foregoing Environmental Laws by Governmental Authorities; and
(n) any other federal, state or local statutes, laws, common laws, ordinances, rules, regulations, orders, codes, decisions, injunctions or decrees that regulate or otherwise pertain to the protection of the environment, including the
management, control, discharge, emission, exposure, treatment, containment, handling, removal, use, generation, permitting, migration, storage, release, transportation, disposal, remediation, manufacture, processing or distribution of Hazardous
Materials that are or may present a threat to human health or the environment. 
 “ERISA” means the Employee Retirement
Income Security Act of 1974, as amended. 
 “FERC” means the United States Federal Energy Regulatory Commission. 

“Financial Advisor” has the meaning ascribed to such term in the recitals. 

  
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 “GAAP” means generally accepted accounting principles in the United States of
America. 
 “General Partner” has the meaning ascribed to such term in the recitals. 

“Governmental Authority” means any federal, state, municipal or other government, governmental court, department, commission,
board, bureau, agency or instrumentality, whether foreign or domestic. 
 “Hazardous Materials” means (a) any
substance, whether solid, liquid or gaseous, that (i) is listed, defined or regulated as a “hazardous material,” “hazardous waste,” “solid waste,” “hazardous substance,” “toxic substance,”
“pollutant” or “contaminant,” or words of similar meaning or import found in any applicable Environmental Law or (ii) is or contains asbestos, polychlorinated biphenyls, radon, urea formaldehyde foam insulation, explosives,
or radioactive materials; (b) any petroleum, petroleum hydrocarbons, petroleum substances, petroleum or petrochemical products, refined petroleum products, natural gas, crude oil and any components, fractions, or derivatives thereof, any oil or
gas exploration or production waste, and any natural gas, synthetic gas and any mixtures thereof; (c) naturally occurring radioactive material, radioactive material, waste and pollutants, radiation, radionuclides and their progeny, or nuclear
waste including used nuclear fuel; or (d) any substance, whether solid, liquid or gaseous, that causes or poses a threat to cause contamination or nuisance on any properties, or any adjacent property or a hazard to the environment or to the
health or safety of persons on or about any properties. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act
of 1976, as amended. 
 “Indebtedness for Borrowed Money” means, with respect to any Person, without duplication,
(a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such
Person under conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services or any other similar obligation
upon which interest charges are customarily paid (excluding trade accounts payable incurred in the ordinary course of business), (e) all Indebtedness for Borrowed Money of others secured by (or for which the holder of such Indebtedness for
Borrowed Money has an existing right, contingent or otherwise, to be secured by) any encumbrance on property owned or acquired by such Person, whether or not the Indebtedness for Borrowed Money secured thereby has been assumed, (f) all
assurances by such Person of Indebtedness for Borrowed Money of others, (g) all capital lease obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and
letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. 

“Intellectual Property” means all intellectual or industrial property and rights therein, however denominated, throughout the
world, whether or not registered, including all patent applications, patents, trademarks, service marks, trade styles or dress, mask works, copyrights 

  
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(including copyrights in computer programs, software, computer code, documentation, drawings, specifications and data), works of authorship, moral rights of authorship, rights in designs, trade
secrets, technology, inventions, invention disclosures, discoveries, improvements, know-how, proprietary rights, formulae, processes, methods, technical and business information, and confidential and proprietary information, and all other
intellectual and industrial property rights, whether or not subject to statutory registration or protection and, with respect to each of the foregoing, all registrations and applications for registration, renewals, extensions, continuations,
reexaminations, reissues, divisionals, improvements, modifications, derivative works, goodwill, and common law rights, and causes of action relating to any of the foregoing. 

“Interstate Commerce Act” means the version of the Interstate Commerce Act under which FERC regulates oil pipelines, 49
U.S.C. app. §§ 1, et seq. (1988), and the regulations promulgated by the FERC thereunder. 
 “Knowledge,” as used
in this Agreement with respect to a party hereof, means the actual knowledge of that party’s designated personnel after due inquiry. The designated personnel for SPLC, SOPUS, and SHLX are set forth on Appendix A. 

“Lien” means any mortgage, deed of trust, lien, security interest, pledge, conditional sales contract, charge or encumbrance.

 “Mars” has the meaning ascribed to such term in the recitals. 

“Mars Agreement” means the Mars Oil Pipeline Company Partnership Agreement dated April 15, 1996, as amended by the First
Amendment to the Mars Oil Pipeline Company Partnership Agreement dated March 14, 2011, the Second Amendment to the Mars Oil Pipeline Company Partnership Agreement dated December 5, 2013 and the Third Amendment to the Mars Oil Pipeline
Company Partnership Agreement dated November 3, 2014. 
 “Mars Assets” means all of the assets owned by Mars,
including the Mars Pipeline. 
 “Mars Closing Cash on Hand” means SHLX’s calculation of Mars’ cash on hand at the
Effective Time pursuant to Section 2.4. 
 “Mars Financial Statements” has the meaning ascribed to such term in
Section 3.5(a). 
 “Mars Permits” has the meaning ascribed to such term in Section 3.11. 

“Mars Pipeline” means the Mars crude pipeline system, comprised of approximately 163 miles of pipeline, a portion of which is
regulated by the FERC and/or the Louisiana Public Service Commission, terminating at LOOP LLC’s trading and distribution hub in Clovelly, Louisiana, where Mars’ main storage cavern, leased from LOOP LLC, completes the pipeline. 

“Mars Post-Closing Adjustment” means an amount equal to 20.0% of the difference between the Mars Target Cash on Hand minus
the Mars Closing Cash on Hand, as agreed between SPLC and SHLX, acting through the Conflicts Committee, pursuant to Section 2.4. 

  
 5 







 “Mars Storage Base Plan” means Twenty-Seven Million, Nine Hundred and
Ninety-Nine Thousand, Nine Hundred and Eighty-Four Dollars ($27,999,984), which is described on Appendix B. 
 “Mars Storage
Revenue” means the revenue generated by Mars (determined in accordance with practices in effect as of the date of this Agreement) for the provision of storage services for the calendar years 2017 – 2021 inclusive, which as of the date
hereof is reflected in the following three accounts of Mars’ general ledger: “825000 Rental Revenue - 3rd Party,” “825002 Rental Revenue - Affiliates” and “825004 Rental Revenue - Inter Group.” 

“Mars Storage Revenue True-Up Amount” means a dollar amount determined as follows: 

(a) first determine the product of (Mars Storage Revenue less Mars Storage Base Plan) times 20.0%; 

(b) if the product calculated in accordance with clause (a) above equals or exceeds Ten Million Dollars ($10,000,000), then the Mars
Storage Revenue True-Up Amount is zero; 
 (c) if the product calculated in accordance with clause (a) above is less than Ten Million
Dollars ($10,000,000), then the Mass Storage Revenue True-Up Amount will be the lesser of (i) Ten Million Dollars ($10,000,000) or (ii) the difference between Ten Million Dollars ($10,000,000) and such product. 

“Mars Subject Interests” has the meaning ascribed to such term in the recitals. 

“Mars Target Cash on Hand” means Twenty Million Dollars ($20,000,000). 

“Mars Voting Agreement” means that certain Voting Agreement dated as of November 3, 2014 by and between SHLX and SPLC.

 “Material Contract” has the meaning ascribed to such term in Section 3.12(a). 

“Minimum Claim Amount” has the meaning ascribed to such term in Section 8.6(a). 

“Notice” has the meaning ascribed to such term in Section 9.4. 

“Odyssey” has the meaning ascribed to such term in the recitals. 

“Odyssey Agreement” means the Limited Liability Company Agreement of Odyssey dated August 1, 1997, as amended by the
First Amendment to the Limited Liability Company Agreement of Odyssey dated July 15, 2002, the Amendment to Limited Liability Company Agreement of Odyssey dated April 29, 2003 (second amendment), the Amendment No. 2 to the Limited
Liability Company Agreement of Odyssey dated November 1, 2005 (third amendment), and the Fourth Amendment to the Limited Liability Company Agreement of Odyssey dated June 22, 2016. 

“Odyssey Assets” means all of the assets owned by Odyssey, including the Odyssey Pipeline. 

  
 6 







 “Odyssey Financial Statements” has the meaning ascribed to such term in
Section 3.5(c). 
 “Odyssey Permits” has the meaning ascribed to such term in Section 3.11. 

“Odyssey Pipeline” means the Odyssey crude pipeline system, composed of approximately 106 miles of pipeline in the eastern
Gulf of Mexico. 
 “Odyssey Subject Interests” has the meaning ascribed to such term in the recitals. 

“Omnibus Agreement” means that certain Omnibus Agreement between SPLC, SHLX, the General Partner, Operating and Shell Oil
Company, dated as of November 3, 2014. 
 “Operating” has the meaning ascribed to such term in the preamble. 

“OCSLA” has the meaning ascribed to such term in Section 3.19. 

“Partnership Agreement” has the meaning ascribed to such term in the recitals. 

“Permitted Liens” means all: (a) mechanics’, materialmen’s, repairmen’s, employees’
contractors’ operators’, carriers’, workmen’s or other like Liens or charges arising by operation of law, in the ordinary course of business or incident to the construction or improvement of any of the Assets, in each case, for
amounts not yet delinquent (including any amounts being withheld as provided by law); (b) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of
business; (c) immaterial defects and irregularities in title, encumbrances, exceptions and other matters that, singularly or in the aggregate, will not materially interfere with the ownership, use, value, operation or maintenance of the Assets
to which they pertain or SPLC’s or SOPUS’s ability to perform their respective obligations hereunder with respect thereto; (d) Liens for Taxes that are not yet due and payable; (e) pipeline, utility and similar easements and
other rights in respect of surface operations; (f) Liens supporting surety bonds, performance bonds and similar obligations issued in connection with the Assets; (g) all rights to consent, by required notices to, filings with, or other
actions by Governmental Authorities or third parties in connection with the sale or conveyance of easements, rights of way, licenses, facilities or interests therein if they are customarily obtained subsequent to the sale or conveyance; and
(h) all Liens and interests described on Section 1.1 of the Disclosure Letter. 
 “Person” means an
individual or entity, including any partnership, corporation, association, trust, limited liability company, joint venture, unincorporated organization or other entity. 

“Rules” has the meaning ascribed to such term in Section 9.5(a). 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

“SHLX” has the meaning ascribed to such term in the preamble. 

“SHLX Closing Certificate” has the meaning ascribed to such term in Section 7.2(a). 

  
 7 







 “SHLX Indemnified Parties” has the meaning ascribed to such term in
Section 8.1. 
 “SHLX Material Adverse Effect” means a material adverse effect on or a material adverse change
in the ability of SHLX or Operating to perform its obligations under this Agreement and the other Transaction Documents or to consummate the transactions contemplated hereby or thereby. 

“SOPUS” has the meaning ascribed to such term in the preamble. 

“SOPUS Closing Certificate” has the meaning ascribed to such term in Section 7.1(a). 

“SPLC” has the meaning ascribed to such term in the preamble. 

“SPLC Closing Certificate” has the meaning ascribed to such term in Section 7.1(a). 

“SPLC Indemnified Parties” has the meaning ascribed to such term in Section 8.2. 

“SPLC Material Adverse Effect” means a material adverse effect on or a material adverse change in (a) the value of the
Assets, taken as a whole, or the business, operations or financial condition of Mars and Odyssey, taken as a whole, other than any effect or change (i) that impacts the offshore or onshore crude oil transportation or onshore crude storage
industry generally (including any change in the prices of crude oil or other hydrocarbon products, industry margins or any regulatory changes or changes in Applicable Law or GAAP), (ii) in United States or global political or economic
conditions or financial markets in general, or (iii) resulting from the announcement of the transactions contemplated by this Agreement and the taking of any actions contemplated by this Agreement, provided, that in the case of clauses
(i) and (ii), the impact on the Assets or the business, operations or financial condition of Mars and/or Odyssey is not materially disproportionate to the impact on similarly situated assets or businesses in the offshore or onshore crude oil
transportation or onshore crude storage industry, as applicable, or (b) the ability of SPLC and/or SOPUS to perform their respective obligations under this Agreement and/or the other Transaction Documents to which SPLC or SOPUS is a party or to
consummate the transactions contemplated hereby or thereby. 
 “Subject Interests” has the meaning ascribed to such term in
the recitals. 
 “Tax” means any and all U.S. federal, state, local or foreign net income, gross income, gross receipts,
sales, use, ad valorem, transfer, franchise, capital stock, profits, margin, license, license fee, environmental, customs duty, unclaimed property or escheat payments, alternative fuels, mercantile, lease, service, withholding, payroll, employment,
unemployment, social security, disability, excise, severance, registration, stamp, occupation, premium, property (real or personal), windfall profits, fuel, value added, alternative or add on minimum, estimated or other similar taxes, duties,
levies, customs, tariffs, imposts or assessments (including public utility commission property tax assessments) imposed by any Governmental Authority, together with any interest, penalties or additions thereto payable to any Governmental Authority
in respect thereof or any liability for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any agreement or arrangement whereby
liability for payment of such amounts was determined or taken into account with reference to the liability of any other Person. 

  
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 “Tax Return” means any return, declaration, report, statement, election, claim
for refund or other written document, together with all attachments, amendments and supplements thereto, filed with or provided to, or required to be filed with or provided to, a Governmental Authority in respect of Taxes. 

“Taxing Authority” means, with respect to any Tax, the Governmental Authority that imposes such Tax, and the agency (if any)
charged with the collection of such Tax for such entity or subdivision, including any governmental or quasi-governmental entity or agency that imposes, or is charged with collecting, social security or similar charges or premiums. 

“Transaction” has the meaning ascribed to such term in the recitals. 

“Transaction Documents” means this Agreement, the Assignment Agreements, and any other documents of conveyance or other
related documents contemplated to be entered into in connection with this Agreement and the transactions contemplated hereby with respect to which SPLC, SOPUS, SHLX or Operating are parties. 

“Transfer Tax” has the meaning ascribed to such term in Section 6.3. 

“Tribunal” has the meaning ascribed to such term in Section 9.5(b). 

Section 1.2 Construction. 

In constructing this Agreement: (a) the word “includes” and its derivatives means “includes, without limitation” and
corresponding derivative expressions; (b) the currency amounts referred to herein, unless otherwise specified, are in United States dollars; (c) whenever this Agreement refers to a number of days, such number shall refer to calendar days
unless Business Days are specified; (d) unless otherwise specified, all references in this Agreement to “Article,” “Section,” “Disclosure Letter,” “Exhibit,” “preamble” or “recitals”
shall be references to an Article, Section, Disclosure Letter, Exhibit, preamble or recitals hereto; (e) whenever the context requires, the words used in this Agreement shall include the masculine, feminine and neuter and singular and the
plural; and (f) the terms “herein,” “hereby,” “hereunder,” “hereof,” “hereinafter,” “hereto” and other equivalent words refer to this Agreement in its entirety and not solely to the
particular portion of the Agreement in which such word is used. 
 ARTICLE II 

PURCHASE AND SALE AND CLOSING 

Section 2.1 Purchase and Sale. 

Upon the terms and subject to the conditions set forth in this Agreement and in the Assignment Agreements, at the Closing, SPLC and SOPUS
shall each sell, transfer, assign, and convey its respective Subject Interests to Operating, free and clear of all Liens (other than restrictions under applicable federal and state securities laws), and Operating, in its capacity as designee of
SHLX, shall accept and acquire the Subject Interests from SPLC and SOPUS. 

  
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 Section 2.2 Consideration. 

The aggregate amount of consideration for the Subject Interests to be paid by SHLX shall be the Consideration. 

Section 2.3 Closing. 

(a) The closing of the Transaction (the “Closing”) shall take place as provided in this Section 2.3, but if the
Closing occurs, the Transaction, including the transfer to Operating, in its capacity as designee of SHLX, of the risk of loss and reward relating to the Subject Interests and the underlying Assets, shall be effective as of the Effective Time. The
Closing will be held at the offices of SPLC at 910 Louisiana Street, Houston, Texas 77002 on October 3, 2016, commencing at 9:00 a.m., Houston time, or such other place, date and time or means (including by electronic means), as may be mutually
agreed upon by the parties hereto. 
 (b) At the Closing, SHLX or its designee shall deliver, or cause to be delivered, the following: 

 

	 	(i)	to SPLC or its designee(s), the Consideration by wire transfer in immediately available funds; 

  

	 	(ii)	to SPLC and SOPUS, a duly executed counterpart of each of the Assignment Agreements; 

  

	 	(iii)	to SPLC and SOPUS, a certificate of good standing of recent date of SHLX; 

  

	 	(iv)	to SPLC and SOPUS, the SHLX Closing Certificate; and 

  

	 	(v)	such other certificates, instruments of conveyance and documents as may be reasonably requested by SPLC and/or SOPUS at least two (2) Business Days prior to the Closing Date to carry out the intent and purposes of
this Agreement. 

 (c) At the Closing, Operating or its designee shall deliver, or cause to be delivered, the following: 

 

	 	(i)	to SPLC and SOPUS, a duly executed counterpart of each of the Assignment Agreements; 

  

	 	(ii)	to SPLC, a duly executed counterpart of an amendment to the Mars Agreement, creating an updated Exhibit reflecting the transfer of the Mars Subject Interests pursuant to this Agreement; and 


 

	 	(iii)	to SOPUS, a duly executed counterpart of an amendment to the Odyssey Agreement, creating an updated Exhibit reflecting the transfer of the Odyssey Subject Interests pursuant to this Agreement. 


  
 10 







 (d) At the Closing, SPLC or its designee shall deliver, or cause to be delivered, to SHLX and
Operating, the following: 
  

	 	(i)	a duly executed counterpart of the Mars Assignment Agreement; 

  

	 	(ii)	a duly executed notice of transfer to Mars delivered pursuant to the Mars Agreement; 

  

	 	(iii)	a duly executed counterpart to an amendment to the Mars Agreement, creating an updated Exhibit reflecting the transfer of the Mars Subject Interests pursuant to this Agreement; 


 

	 	(iv)	a certificate of good standing of recent date of SPLC and a certificate of tax account status of Mars; 

  

	 	(v)	foreign qualification certificates of recent date of Mars; 

  

	 	(vi)	the SPLC Closing Certificate, duly executed by SPLC; and 

  

	 	(vii)	such other certificates, instruments of conveyance and documents as may be reasonably requested by SHLX at least two (2) Business Days prior to the Closing Date to carry out the intent and purposes of this
Agreement. 

 (e) At the Closing, SOPUS or its designee shall deliver, or cause to be delivered, to SHLX and Operating, the
following: 
  

	 	(i)	a duly executed counterpart of the Odyssey Assignment Agreement; 

  

	 	(ii)	a duly executed notice of transfer to Odyssey and the other member of Odyssey, delivered pursuant to the Odyssey LLC Agreement; 

  

	 	(iii)	a duly executed counterpart to an amendment to the Odyssey Agreement, creating an updated Exhibit reflecting the transfer of the Odyssey Subject Interests pursuant to this Agreement; 


 

	 	(iv)	a certificate of good standing of recent date of each of SOPUS and Odyssey; 

  

	 	(v)	foreign qualification certificates of recent date of Odyssey; 

  

	 	(vi)	the SOPUS Closing Certificate, duly executed by SOPUS; and 

  

	 	(vii)	such other certificates, instruments of conveyance and documents as may be reasonably requested by SHLX at least two (2) Business Days prior to the Closing Date to carry out the intent and purposes of this
Agreement. 


  
 11 







 Section 2.4 Potential Post-Closing Adjustment. 

Within ten (10) Business Days after the Effective Time, SHLX, acting through the Conflicts Committee, shall prepare and deliver to SPLC a
statement detailing SHLX’s calculation of the Mars Closing Cash on Hand, which calculation shall include sufficient detail to substantiate the result to SPLC’s reasonable satisfaction. SPLC shall provide notice in writing to SHLX within
ten (10) Business Days of receipt of the calculation and any required substantiation of either (a) its agreement with the calculation, or (b) its disagreement with the calculation, in which case SPLC shall provide SHLX, acting through
the Conflicts Committee, a detailed description of the nature of its disagreement. If SPLC disagrees with the calculations, SPLC and SHLX, acting through the Conflicts Committee, shall meet promptly and in good faith negotiate and resolve the points
of disagreement. If SPLC and SHLX, acting through the Conflicts Committee, are unable to resolve the points of disagreement on or prior to the 60th day following the Effective Time, then SPLC or SHLX, acting through the Conflicts Committee, may
refer such dispute to Ernst & Young LLP or, if that firm declines to act as provided in this Section 2.4, another firm of independent public accountants, mutually acceptable to SPLC and SHLX, acting through the Conflicts
Committee, which firm shall make a final and binding determination as to all matters in dispute on a timely basis and promptly shall notify the parties and the Conflicts Committee in writing of its resolution. Such accounting firm handling the
dispute resolution shall not have the power to modify or amend any term or provision of this Agreement. Each of SHLX and SPLC shall bear and pay one-half of the fees and other costs charged by such accounting firm. 

If the Mars Closing Cash on Hand as determined in accordance with the foregoing provision is less than the Mars Target Cash on Hand, SPLC
shall pay to SHLX an amount equal to the Mars Post-Closing Adjustment. SPLC shall deliver, or cause to be delivered, to SHLX such Mars Post-Closing Adjustment within ten (10) days after SPLC provides notice in writing to SHLX, acting through
the Conflicts Committee, of its agreement with SHLX’s determination of the Mars Post-Closing Adjustment or the date any dispute relating to such calculation is resolved. The parties agree that once SPLC pays the Mars Post-Closing Adjustment, to
SHLX, SPLC shall have no further liability to SHLX or the General Partner of any kind in respect of this Section 2.4. 

Section 2.5 Potential Purchase Price Reduction. 

Within thirty (30) calendar days of receipt by SHLX of Mars’ audited financial statements for the twelve-month period ending
December 31, 2021, SHLX, acting through the Conflicts Committee, shall prepare and deliver to SPLC a statement detailing SHLX’s calculation of the Mars Storage Revenue True-Up Amount, together with all audited financial statements for the
twelve-month periods ending December 31, 2017 through December 31, 2021. Such calculation shall include sufficient detail to substantiate the result to SPLC’s reasonable satisfaction. SPLC shall provide notice in writing to SHLX,
acting through the Conflicts Committee, within 10 Business Days of receipt of the calculation and any required substantiation of either (a) its agreement with the calculation, or (b) its disagreement with the calculation, in which case
SPLC shall provide SHLX, acting through the Conflicts Committee, a detailed description of the nature of its disagreement. If SPLC disagrees with the calculations, SPLC and SHLX, acting through the Conflicts Committee, shall meet promptly and in
good faith negotiate 

  
 12 







 
and resolve the points of disagreement. If SPLC and SHLX, acting through the Conflicts Committee, are unable to resolve the points of disagreement on or prior to the 60th day following the
delivery of the statement detailing SHLX’s calculation of the Mars Storage Revenue True-Up Amount to each of SPLC and SHLX, acting through the Conflicts Committee, then SPLC or SHLX, acting through the Conflicts Committee, may refer such
dispute to Ernst & Young LLP or, if that firm declines to act as provided in this Section 2.5, another firm of independent public accountants, mutually acceptable to SPLC and SHLX, acting through the Conflicts Committee, which
firm shall make a final and binding determination as to all matters in dispute on a timely basis and promptly shall notify the parties and the Conflicts Committee in writing of its resolution. Such accounting firm handling the dispute resolution
shall not have the power to modify or amend any term or provision of this Agreement. Each of SHLX and SPLC shall bear and pay one-half of the fees and other costs charged by such accounting firm. 

If the Mars Storage Revenue True-Up Amount as determined in accordance with the foregoing provision is greater than zero, SPLC shall pay to
SHLX the Mars Storage Revenue True-Up Amount. SPLC shall deliver, or cause to be delivered, to SHLX such Mars Storage Revenue True-Up Amount within forty-five (45) days after SPLC and the Conflicts Committee each provides notice in writing to
SHLX of its agreement with SHLX’s determination of the Mars Storage Revenue True-Up Amount or the date any dispute relating to such calculation is resolved. The parties agree that once SPLC pays the Mars Storage Revenue True-up Amount, if
applicable, to SHLX, SPLC shall have no further liability to SHLX or the General Partner of any kind in respect of this Section 2.5. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SPLC AND SOPUS 

SPLC and SOPUS each hereby represent and warrant, as applicable, to SHLX and Operating that, except as disclosed in the disclosure letter
delivered to SHLX and Operating on the date of this Agreement (“Disclosure Letter”) (it being understood that any information set forth on any section of the Disclosure Letter shall be deemed to apply to and qualify all sections or
subsections of this Agreement to the extent that it is reasonably apparent on its face that such information is relevant to such other sections or subsections): 

Section 3.1 Organization. 

(a) SPLC is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has all
requisite limited partnership power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(b) SOPUS is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited liability company power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

  
 13 







 (c) Mars is a general partnership duly formed under the laws of the State of Texas and has all
requisite partnership power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(d) Odyssey is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited liability company power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(e) SPLC and SOPUS have made available to SHLX true and complete copies of the organizational documents of Mars and Odyssey, as applicable, in
each case as in effect as of the date of this Agreement. 
 Section 3.2 Authority and Approval. 

(a) SPLC has full limited partnership power and authority to execute and deliver this Agreement and the other Transaction Documents to which
SPLC is a party, to consummate the transactions contemplated hereby and thereby and to perform all of the obligations hereof and thereof to be performed by it. The execution and delivery by SPLC of this Agreement and the other Transaction Documents
to which SPLC is a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SPLC have been duly authorized and approved by all requisite limited
partnership action on the part of SPLC. 
 (b) SOPUS has full limited liability company power and authority to execute and deliver this
Agreement and the other Transaction Documents to which SOPUS is a party, to consummate the transactions contemplated hereby and thereby and to perform all of the obligations hereof and thereof to be performed by it. The execution and delivery by
SOPUS of this Agreement and the other Transaction Documents to which SOPUS is a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SOPUS
have been duly authorized and approved by all requisite limited liability company action on the part of SOPUS. 
 (c) This Agreement has
been duly executed and delivered by each of SPLC and SOPUS and constitutes the valid and legally binding obligation of each of SPLC and SOPUS, enforceable against each entity in accordance with its terms, and, upon the execution of the other
Transaction Documents to which SPLC or SOPUS is a party, such other Transaction Documents will be duly executed and delivered by SPLC or SOPUS, as applicable, and constitute the valid and legally binding obligations of SPLC or SOPUS, as applicable,
enforceable against SPLC or SOPUS, as applicable, in accordance with their terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity). 

Section 3.3 No Conflict; Consents. 

Except as set forth on Section 3.3 of the Disclosure Letter: 

  
 14 







 (a) The execution, delivery and performance of this Agreement and the other Transaction Documents
to which SPLC or SOPUS is a party by SPLC or SOPUS, as applicable, does not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the transactions contemplated hereby and thereby will not,
(i) violate, conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or provisions of the organizational documents of SPLC, SOPUS, Mars, or Odyssey; (ii) conflict with or violate any
provision of any law or administrative rule or regulation or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to SPLC, SOPUS, Mars, Odyssey or the Assets (“Applicable Law”);
(iii) conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or
approval under, or result in the suspension, termination or cancellation of, or in a right of suspension, termination or cancellation of, any indenture, mortgage, agreement, contract, commitment, right of way, license, concession, permit, lease,
joint venture or other instrument to which SPLC, SOPUS, Mars or Odyssey is a party or by which any of them are bound or to which any of the Assets are subject; or (iv) result in the creation of any Lien (other than Permitted Liens) on any of
the Assets or on the Subject Interests under any such indenture, mortgage, agreement, contract, commitment, right of way, license, concession, permit, lease, joint venture or other instrument, except in the case of clauses (ii), (iii) and
(iv) for those items which, individually or in the aggregate, would not reasonably be expected to have a SPLC Material Adverse Effect or result in any material liability or obligation of SHLX or Operating (other than any liability or obligation
hereunder); and 
 (b) No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is
required to be obtained or made by or with respect to SPLC, SOPUS, Mars or Odyssey with respect to the Subject Interests or the Assets in connection with the execution, delivery and performance of this Agreement and the other Transaction Documents
to which SPLC or SOPUS is a party or the consummation of the transactions contemplated hereby or thereby, except (i) as have been waived or obtained or with respect to which the time for asserting such right has expired or (ii) for those
which individually or in the aggregate would not reasonably be expected to have a SPLC Material Adverse Effect (including such consents, approvals, licenses, permits, orders or authorizations that are not customarily obtained prior to the Closing
and are reasonably expected to be obtained in the ordinary course of business following the Closing). 
 Section 3.4
Capitalization; Title to Subject Interests. 
 Except as described in Section 3.4 of the Disclosure Letter: 

(a) SPLC and SOPUS own, beneficially and of record, respectively, the Mars Subject Interests and the Odyssey Subject Interests and will each
convey good title, free and clear of all Liens, the Mars Subject Interests and the Odyssey Subject Interests, respectively, to SHLX or its designee. Except: (i) as expressly provided in the Mars Voting Agreement, (ii) for the sale of the
Subject Interests contemplated by this Agreement, and (iii) for restrictions under applicable federal and state securities laws, the Subject Interests are not subject to any agreements or understandings with respect to the voting or transfer of
any of the Subject Interests, stockholders agreements, pledge agreements, buy-sell agreements, rights of first refusal, preemptive rights or 

  
 15 







 
proxy arrangements. The Mars Subject Interests have been duly authorized and are validly issued. The Odyssey Subject Interests have been duly authorized and are validly issued, fully paid and
nonassessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC Act). 
 (b) There are
(i) no authorized or outstanding subscriptions, warrants, options, convertible securities or other rights (contingent or otherwise) to purchase or otherwise acquire from Mars any equity interests of or in Mars, (ii) no commitments on the
part of Mars to issue partnership interests, shares, subscriptions, warrants, options, convertible securities or other similar rights, and (iii) no equity securities of Mars reserved for issuance for any such purpose. Mars has no obligation
(contingent or other) to purchase, redeem or otherwise acquire any of its equity securities or interests. Except for this Agreement and the Mars Voting Agreement, there is no voting trust or agreement, stockholders agreement, pledge agreement,
buy-sell agreement, right of first refusal, preemptive right or proxy relating to any equity securities of Mars. Mars owns no equity interests in any other Person. 

(c) There are (i) no authorized or outstanding subscriptions, warrants, options, convertible securities or other rights (contingent or
otherwise) to purchase or otherwise acquire from Odyssey any equity interests of or in Odyssey, (ii) no commitments on the part of Odyssey to issue membership interests, shares, subscriptions, warrants, options, convertible securities or other
similar rights, and (iii) no equity securities of Odyssey reserved for issuance for any such purpose. Odyssey has no obligation (contingent or other) to purchase, redeem or otherwise acquire any of its equity securities or interests. Except for
this Agreement, there is no voting trust or agreement, stockholders agreement, pledge agreement, buy-sell agreement, right of first refusal, preemptive right or proxy relating to any equity securities of Odyssey. Odyssey owns no equity interests in
any other Person. 
 Section 3.5 Financial Information; Undisclosed Liabilities. 

(a) SPLC has provided to SHLX a true and complete copy of the audited financial statements as of December 31, 2015 of Mars on a
consolidated basis (the “Mars Financial Statements”). The Mars Financial Statements present fairly in all material respects the financial position of Mars as of the date thereof. There are no material off-balance sheet arrangements
of Mars. The Mars Financial Statements have been prepared in accordance with GAAP consistently applied throughout the periods presented. 

(b) Except as set forth on Section 3.5(b) of the Disclosure Letter, there are no liabilities or obligations of Mars of any nature
(whether known or unknown and whether accrued, absolute, contingent or otherwise) and there are no facts or circumstances that would reasonably be expected to result in any such liabilities or obligations, whether arising in the context of federal,
state or local judicial, regulatory, administrative or permitting agency proceedings, other than (i) liabilities or obligations reflected or reserved against in the Mars Financial Statements, (ii) current liabilities incurred in the
ordinary course of business since December 31, 2015, and (iii) liabilities or obligations (whether known or unknown and whether accrued, absolute, contingent or otherwise) that are not material. 

  
 16 







 (c) SOPUS has provided to SHLX a true and complete copy of the audited financial statements as of
December 31, 2015 of Odyssey on a consolidated basis (the “Odyssey Financial Statements”). The Odyssey Financial Statements present fairly in all material respects the financial position of Odyssey as of the date thereof. There
are no material off-balance sheet arrangements of Odyssey. The Odyssey Financial Statements have been prepared in accordance with GAAP consistently applied throughout the periods presented. 

(d) Except as set forth on Section 3.5(d) of the Disclosure Letter, there are no liabilities or obligations of Odyssey of any
nature (whether known or unknown and whether accrued, absolute, contingent or otherwise) and there are no facts or circumstances that would reasonably be expected to result in any such liabilities or obligations, whether arising in the context of
federal, state or local judicial, regulatory, administrative or permitting agency proceedings, other than (i) liabilities or obligations reflected or reserved against in the Odyssey Financial Statements, (ii) current liabilities incurred
in the ordinary course of business since December 31, 2015, and (iii) liabilities or obligations (whether known or unknown and whether accrued, absolute, contingent or otherwise) that are not material. 

Section 3.6 Title to Mars and Odyssey Properties. 

(a) Mars has (i) good and marketable fee simple title to the owned real property used or held for use by Mars for the conduct of
Mars’ business, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(a) of the Disclosure Letter) and (ii) a valid, binding, and enforceable leasehold interest in each of the leased properties
used or held for use by Mars for the conduct of Mars’ business, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(a) of the Disclosure Letter). 

(b) Odyssey has (i) good and marketable fee simple title to the owned real property used or held for use by Odyssey for the conduct of
Odyssey’s business, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(b) of the Disclosure Letter) and (ii) a valid, binding, and enforceable leasehold interest in each of the leased
properties used or held for use by Odyssey for the conduct of Odyssey’s business, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(b) of the Disclosure Letter). 

Section 3.7 Litigation; Laws and Regulations. 

Except as set forth on Section 3.7(a) of the Disclosure Letter: 

(a) there are no (i) civil, criminal or administrative actions, suits, claims, hearings, arbitrations or proceedings pending or, to
SPLC’s Knowledge, threatened against Mars, (ii) judgments, orders, decrees or injunctions of any Governmental Authority, whether at law or in equity, against Mars or (iii) pending or, to SPLC’s Knowledge, threatened
investigations by any Governmental Authority against Mars, except in each case, for those items that would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect; and 

(b) Mars is not in violation of or in default under any Applicable Law, except as would not, individually or in the aggregate, reasonably be
expected to have a SPLC Material Adverse Effect. 

  
 17 







 Except as set forth on Section 3.7(c) of the Disclosure Letter: 

(c) there are no (i) civil, criminal or administrative actions, suits, claims, hearings, arbitrations or proceedings pending or, to
SOPUS’s Knowledge, threatened against Odyssey, (ii) judgments, orders, decrees or injunctions of any Governmental Authority, whether at law or in equity, against Odyssey or (iii) pending or, to SOPUS’s Knowledge, threatened
investigations by any Governmental Authority against Odyssey, except in each case, for those items that would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect; and 

(d) Odyssey is not in violation of or in default under any Applicable Law, except as would not, individually or in the aggregate, reasonably
be expected to have a SPLC Material Adverse Effect. 
 Section 3.8 No Adverse Changes. 

Except as set forth on Section 3.8 of the Disclosure Letter, since December 31, 2015: 

(a) there has not been a SPLC Material Adverse Effect; and 

(b) there has not been any damage, destruction or loss to any material portion of the Assets, whether or not covered by insurance, in excess
of One Million Dollars ($1,000,000). 
 Section 3.9 Taxes. 

(a) Except as would not reasonably be expected to have a SPLC Material Adverse Effect, (i) all Tax Returns required to be filed by or
with respect to Mars, Odyssey, the Assets or the operations of Mars or Odyssey have been filed on a timely basis (taking into account all extensions of due dates); (ii) all Taxes owed by Mars, Odyssey, or any of their Affiliates with respect to
Mars, Odyssey, the Assets or the operations of Mars or Odyssey, as applicable, which are or have become due, have been timely paid, other than Taxes the amount or validity of which is being contested in good faith by appropriate proceedings for
which an adequate reserve has been established therefor; (iii) there are no Liens on any of the Assets that arose in connection with any failure (or alleged failure) to pay any Tax on the Assets other than Liens for Taxes not yet due and
payable or the amount or validity of which is being contested in good faith by appropriate proceedings for which an adequate reserve has been established therefor; (iv) there is no pending action, proceeding or investigation for assessment or
collection of Taxes and no Tax assessment, deficiency or adjustment has been asserted or proposed with respect to Mars, Odyssey, the Assets, or the operations of Mars or Odyssey; (v) except with respect to extensions of time to file Tax Returns
obtained in the ordinary course of business, there is not in force any outstanding agreement or waiver by or with respect to Mars, Odyssey, the Assets or the operations of Mars or Odyssey extending the period for assessment or collection of any Tax;
and (vi) neither Mars nor Odyssey is a party to any Tax allocation or Tax sharing agreement that will be binding on such entity after Closing. 

(b) Since November 3, 2014, each of Mars and Odyssey has been treated as a partnership for U.S. federal income tax purposes and has in
effect or shall be eligible to make an election pursuant to Section 754 of the Code. 

  
 18 







 Section 3.10 Environmental Matters. 

Except as disclosed in Section 3.10 of the Disclosure Letter, or as would not reasonably be expected, individually or in the
aggregate, to have a SPLC Material Adverse Effect: 
 (a) Mars and its assets, operations and business are in compliance with applicable
Environmental Laws, which compliance includes the possession and maintenance of, and compliance with, all material permits required under all Environmental Laws; 

(b) no circumstances exist with respect to Mars or its assets, operations or business that give rise to an obligation by Mars or its operators
to investigate or remediate the presence, on-site or offsite, of Hazardous Materials under any applicable Environmental Laws; 
 (c) Mars
has not received any written communication from a Governmental Authority that remains unresolved alleging that it may be in violation of any Environmental Law or any Permit issued pursuant to Environmental Law; 

(d) none of Mars, or its assets, operations or business are subject to any pending or, to the Knowledge of SPLC, threatened, claim, action,
suit, investigation, inquiry or proceeding under any Environmental Law (including designation as a potentially responsible party under CERCLA or any similar local or state law); 

(e) all notices, permits, permit exemptions, licenses or similar authorizations, if any, required to be obtained or filed by Mars under any
Environmental Law in connection with its assets, operations and business have been duly obtained or filed, are valid and currently in effect, and Mars and its assets, operations and business are in compliance with such authorizations; and 

(f) since January 1, 2014, there has been no release of any Hazardous Material into the environment by Mars, or its assets, operations or
business, or, to the Knowledge of SPLC, by a third party except in compliance with applicable Environmental Law. 
 Except as disclosed in
Section 3.10 of the Disclosure Letter, or as would not reasonably be expected, individually or in the aggregate, to have a SPLC Material Adverse Effect: 

(g) Odyssey and its assets, operations and business are in compliance with applicable Environmental Laws, which compliance includes the
possession and maintenance of, and compliance with, all material permits required under all Environmental Laws; 
 (h) no circumstances
exist with respect to Odyssey or its assets, operations or business that give rise to an obligation by Odyssey or its operators to investigate or remediate the presence, on-site or offsite, of Hazardous Materials under any applicable Environmental
Laws; 
 (i) Odyssey has not received any written communication from a Governmental Authority that remains unresolved alleging that it may
be in violation of any Environmental Law or any Permit issued pursuant to Environmental Law; 
 (j) none of Odyssey, or its assets,
operations or business are subject to any pending or, to the Knowledge of SOPUS, threatened, claim, action, suit, investigation, inquiry or proceeding under any Environmental Law (including designation as a potentially responsible party under CERCLA
or any similar local or state law); 

  
 19 







 (k) all notices, permits, permit exemptions, licenses or similar authorizations, if any, required
to be obtained or filed by Odyssey under any Environmental Law in connection with its assets, operations and business have been duly obtained or filed, are valid and currently in effect, and Odyssey and its assets, operations and business are in
compliance with such authorizations; and 
 (l) since January 1, 2014, there has been no release of any Hazardous Material into the
environment by Odyssey, or its assets, operations or business, or, to the Knowledge of SOPUS, by a third party except in compliance with applicable Environmental Law. 

Section 3.11 Licenses; Permits. 

Except as set forth in Section 3.11 of the Disclosure Letter: 

(a) Mars has all licenses, permits and authorizations issued or granted or waived by Governmental Authorities that are necessary for the
conduct of its business as now being conducted (collectively, “Mars Permits”), except, in each case, for such items for which the failure to obtain or have waived would not result in a SPLC Material Adverse Effect. 

(b) All Mars Permits are validly held by Mars or its operator and are in full force and effect, except as would not reasonably be expected to
have a SPLC Material Adverse Effect. 
 (c) Mars has complied with all terms and conditions of the Mars Permits, except as would not
reasonably be expected to have a SPLC Material Adverse Effect. 
 (d) There is no outstanding written notice nor, to SPLC’s Knowledge,
any other notice of revocation, cancellation or termination of any Mars Permit, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect. 

(e) No proceeding is pending or, to SPLC’s Knowledge, threatened with respect to any alleged failure by Mars to have any material Mars
Permit necessary for the operation of any of the Mars Assets or the conduct of Mars’s business. 
 Except as set forth in
Section 3.11 of the Disclosure Letter: 
 (f) Odyssey has all licenses, permits and authorizations issued or granted or waived
by Governmental Authorities that are necessary for the conduct of its business as now being conducted (collectively, “Odyssey Permits”), except, in each case, for such items for which the failure to obtain or have waived would not
result in a SPLC Material Adverse Effect. 
 (g) All Odyssey Permits are validly held by Odyssey or its operator and are in full force and
effect, except as would not reasonably be expected to have a SPLC Material Adverse Effect. 

  
 20 







 (h) Odyssey has complied with all terms and conditions of the Odyssey Permits, except as would
not reasonably be expected to have a SPLC Material Adverse Effect. 
 (i) There is no outstanding written notice nor, to SOPUS’s
Knowledge, any other notice of revocation, cancellation or termination of any Odyssey Permit, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect. 

(j) No proceeding is pending or, to SOPUS’s Knowledge, threatened with respect to any alleged failure by Odyssey to have any material
Odyssey Permit necessary for the operation of any of the Odyssey Assets or the conduct of Odyssey’s business. 
 Section 3.12
Material Contracts. 
 (a) Section 3.12(a) of the Disclosure Letter contains a true and complete listing (redacted as
applicable to comply with regulatory requirements) of the following contracts and other agreements to which, as of the date of this Agreement, Mars or Odyssey is a party or to which the Mars Assets or Odyssey Assets are subject (each such contract
or agreement, along with all amendments and supplements thereto, being referred to herein as a “Material Contract”): 
  

	 	(i)	contracts, agreements and instruments representing Indebtedness for Borrowed Money and all guarantees thereof; 

  

	 	(ii)	contracts containing covenants limiting the freedom of Mars or Odyssey to engage in any line of business or compete with any Person or operate at any location; 


 

	 	(iii)	price swaps, hedges, futures or similar instruments; 

  

	 	(iv)	contracts to which Mars or Odyssey, on the one hand, and an Affiliate of Mars or Odyssey, on the other hand, is a party or is otherwise bound; 


 

	 	(v)	contracts containing any preferential rights to purchase or similar rights relating to any of the Assets; 

  

	 	(vi)	joint venture or partnership agreements, including any agreement or commitment to make any loan or capital contribution to any joint venture or partnership; 


 

	 	(vii)	contracts relating to the acquisition or disposition by Mars or Odyssey of any business (whether by acquisition or disposition of equity interests or assets) pursuant to which Mars or Odyssey has or will have any
remaining material obligation or liability or benefit; 

  

	 	(viii)	 contracts or agreements which, individually, require or entitle Mars or Odyssey to make or receive payments of at
least Twenty-Five Million Dollars ($25,000,000) annually, provided that the calculation of the aggregate payments for any such agreement or contract shall not include 



  
 21 








	 	
payments attributable to any renewal periods or extensions for which Mars or Odyssey may exercise a renewal or extension option in its sole discretion; and 


 

	 	(ix)	licenses relating to Intellectual Property (whether as licensee or licensor) other than licenses with respect to software used or accessed by Mars or Odyssey under a “shrink wrap,” “click wrap,” or
“off the shelf” software license that is generally commercially available on standard terms. 

 (b) Subject to
regulatory requirements of which SHLX has been informed, SPLC and SOPUS have made available to SHLX a correct and complete copy of each Material Contract listed in Section 3.12(a) of the Disclosure Letter. 

(c) Except as would not reasonably be expected to result in a SPLC Material Adverse Effect or as disclosed on Section 3.12(c) of the
Disclosure Letter: (i) each Material Contract is legal, valid and binding on and enforceable against Mars or Odyssey, as applicable, and in full force and effect; (ii) each Material Contract will continue to be legal, valid and binding
on and enforceable against Mars or Odyssey, as applicable, and in full force and effect on identical terms following the consummation of the transactions contemplated by this Agreement; (iii) Mars is not in breach or default, and no event has
occurred which with notice or lapse of time would constitute a breach or default by Mars, or permit termination, modification or acceleration, under any Material Contract; (iv) Odyssey is not in breach or default, and no event has occurred
which with notice or lapse of time would constitute a breach or default by Odyssey, or permit termination, modification or acceleration, under any Material Contract; and (v) to SPLC’s Knowledge and to SOPUS’s Knowledge, no other party
to any Material Contract is in breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default by such other party, or permit termination, modification or acceleration, under any Material Contract
other than in accordance with its terms, nor has any other party repudiated any provision of any Material Contract. 
 Section 3.13
Employees. 
 Mars does not have, and has not had, any employees nor has it maintained or contributed to, and is not subject to
any liability in respect of, any employee benefit or welfare plan of any nature, including plans subject to ERISA. 
 Odyssey does not have,
and has not had, any employees nor has it maintained or contributed to, and is not subject to any liability in respect of, any employee benefit or welfare plan of any nature, including plans subject to ERISA. 

Section 3.14 Transactions with Affiliates. 

Except as otherwise contemplated in this Agreement, Mars is not and was not as of the Effective Time, a party to any agreement, contract or
arrangement with any of its Affiliates, other than those disclosed on Section 3.14 of the Disclosure Letter. 

  
 22 







 Except as otherwise contemplated in this Agreement, Odyssey is not and was not as of the
Effective Time, a party to any agreement, contract or arrangement with any of its Affiliates, other than those disclosed on Section 3.14 of the Disclosure Letter. 

Section 3.15 Insurance. 

Section 3.15 of the Disclosure Letter sets forth a list of the material insurance policies that Mars holds or SPLC holds with
respect to Mars, the Mars Subject Interests or the Mars Assets whether Mars or SPLC is the beneficiary. Such policies are in full force and effect, and all premiums due and payable under such policies have been paid, SPLC has received no written
notice of any pending or threatened termination of, or indication of an intention not to renew, such policies. 
 Section 3.15 of
the Disclosure Letter sets forth a list of the material insurance policies that Odyssey holds or SPLC or SOPUS holds with respect to Odyssey, the Odyssey Subject Interests or the Odyssey Assets, whether Odyssey, SPLC, or SOPUS is the
beneficiary. Such policies are in full force and effect, and all premiums due and payable under such policies have been paid, SPLC and SOPUS have received no written notice of any pending or threatened termination of, or indication of an intention
not to renew, such policies. 
 Section 3.16 Intellectual Property Rights. 

Mars and Odyssey each owns or has the right to use all Intellectual Property necessary for or used in the conduct of their respective
businesses as currently conducted, and, to the Knowledge of SPLC and the Knowledge of SOPUS, respectively, Mars and Odyssey’s products and services do not infringe upon, misappropriate or otherwise violate any Intellectual Property of any third
party. All Intellectual Property owned by Mars or Odyssey, if any, is owned free and clear of any Liens (other than Permitted Liens). Neither the execution and delivery of this Agreement or the other Transaction Documents, nor the consummation of
the transactions contemplated hereby or thereby will, with or without notice or lapse of time, result in, or give any other Person the right or option to cause or declare, a breach or termination of, or cancellation or reduction in, rights of Mars
or Odyssey under any contract providing for the license of any Intellectual Property to Mars or Odyssey, except for any such terminations, cancellations or reductions that, individually or in the aggregate, would not have a SPLC Material Adverse
Effect. There is no Intellectual Property-related action, suit, proceeding, hearing, investigation, notice or complaint pending or, to SPLC’s Knowledge and to SOPUS’s Knowledge, threatened by any third party before any court or tribunal
(including, without limitation, the United States Patent and Trademark Office or equivalent authority anywhere in the world) relating to Mars or Odyssey or their respective operations, nor has any claim or demand been made by any third party that
alleges any infringement, misappropriation or violation of any Intellectual Property of any third party, or unfair competition or trade practices by Mars or Odyssey. Except as would not result in a SPLC Material Adverse Effect, Mars and Odyssey have
taken reasonable measures to protect the confidentiality of all material trade secrets. 

  
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 Section 3.17 Brokerage Arrangements. 

Neither SPLC nor SOPUS has entered (directly or indirectly) into any agreement with any Person that would obligate SPLC, SOPUS, or any of
their Affiliates, Mars or Odyssey, to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement or the other Transaction Documents or the Transaction contemplated hereby or thereby. 

Section 3.18 Books and Records. 

Accurate copies of the respective books of account, minute books and equity record books of Mars and Odyssey and all books and records
maintained by, or made available to, SPLC or SOPUS with respect to Mars or Odyssey and the Subject Interests have been made available for inspection to SHLX. 

Section 3.19 Regulatory Matters. 

Since January 1, 2016, as to the portion of the Mars Pipeline that is downstream of block Bay Marchand 4 (BM4), inclusive of BM4, and is
subject to the Interstate Commerce Act and subject to regulation by the FERC and by any state public utility commission, Mars (and its business, operations and assets) has been in material compliance with (a) the applicable provisions of the
Interstate Commerce Act and (b) all applicable rules, regulations and orders of the FERC and any state public utility commission having jurisdiction over any of Mars’s business, operations or assets. Mars has duly filed all forms and
reports required to be filed by or with respect to Mars (and its business, operations and assets) with the FERC and any state public utility commission having jurisdiction over any of Mars’s business, operations or assets, and such forms and
reports have been prepared in accordance with Applicable Law, except to the extent that any noncompliance, either individually or in the aggregate, would not reasonably be expected to have a SPLC Material Adverse Effect. 

Since January 1, 2016, the Mars Pipeline (as to the portion that is upstream of BM4 and is not subject to regulation by the FERC and by
any state public utility commission) and the Odyssey Pipeline have not been subject to the jurisdiction of, or regulation by, the FERC under the Interstate Commerce Act and were operated by SPLC in compliance with the nondiscriminatory open access
transportation requirements under the Outer Continental Shelf Lands Act, as amended (“OCSLA”). Odyssey is not subject to the jurisdiction of, or regulation by, the FERC under the Interstate Commerce Act. 

Section 3.20 Management Projections and Budget. 

The projections and budgets regarding Mars and Odyssey identified on Section 3.20 of the Disclosure Letter, which were provided to
SHLX (including those provided to the Financial Advisor) by SPLC, SOPUS, and their Affiliates as part of SHLX’s review in connection with this Agreement, were prepared based upon assumptions that SPLC’s management and SOPUS’s
management believe to be reasonable as of the date hereof and are consistent with SPLC’s management and SOPUS’s management’s reasonable expectations as of the date hereof. 

  
 24 







 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING 

SHLX and Operating hereby jointly and severally represent and warrant to SPLC and SOPUS as follows: 

Section 4.1 Organization and Existence. 

(a) SHLX is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has all
requisite limited partnership power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(b) Operating is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and
has all requisite limited liability company power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

Section 4.2 Authority and Approval. 

(a) Each of SHLX and Operating has full limited partnership power and authority or full limited liability company power and authority, as
applicable, to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform all of the obligations hereof to be performed by it. The execution and delivery of this Agreement and the other Transaction
Documents to which SHLX or Operating is a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SHLX and Operating have been duly authorized
and approved by all requisite limited partnership or limited liability company action of SHLX and Operating, as applicable. 
 (b) This
Agreement has been duly executed and delivered by or on behalf of each of SHLX and Operating, and constitutes the valid and legally binding obligation of SHLX and Operating, enforceable against each of SHLX and Operating in accordance with its terms
and, upon the execution of the other Transaction Documents to which SHLX or Operating is a party, such other Transaction Documents will be duly executed and delivered by or on behalf of SHLX and Operating, as applicable, and constitute the valid and
legally binding obligation of SHLX and Operating, as applicable, enforceable against SHLX and Operating, as applicable, in accordance with their terms, except in each case as such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity). 

Section 4.3 No Conflict; Consents. 

(a) The execution, delivery and performance of this Agreement and the other Transaction Documents to which SHLX or Operating is a party by
SHLX and Operating, as applicable, does not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the transactions contemplated hereby and thereby will not,


  
 25 







 
(i) violate, conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or provisions of the certificate of limited partnership or limited
partnership agreement of SHLX or the certificate of formation or limited liability company agreement of Operating; (ii) conflict with or violate any provision of any law or administrative rule or regulation or any judicial, administrative or
arbitration order, award, judgment, writ, injunction or decree applicable to SHLX, Operating or any property or asset of SHLX or Operating; (iii) conflict with, result in a breach of, constitute a default under (whether with notice or the lapse
of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, or result in the suspension, termination or cancellation of, or in a right of suspension, termination
or cancellation of, any indenture, mortgage, agreement, contract, commitment, right of way, license, concession, permit, lease, joint venture or other instrument to which SHLX or Operating is a party or by which it is bound or to which any of its
property is subject, except in the case of clauses (ii) and (iii) for those items which, individually or in the aggregate, would not reasonably be expected to affect the ability of either SHLX or Operating to perform its obligations under
this Agreement and the other Transaction Documents to which SHLX or Operating is a party or to consummate the transactions contemplated hereby or thereby. 

(b) No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is required to be obtained or
made by or with respect to SHLX or Operating in connection with the execution, delivery, and performance of this Agreement or the other Transaction Documents to which SHLX or Operating is a party or the consummation of the transactions contemplated
hereby and thereby, except (i) as have been waived or obtained or with respect to which the time for asserting such right has expired or (ii) for those which individually or in the aggregate would not reasonably be expected to affect the
ability of either SHLX or Operating to perform its obligations under this Agreement and the other Transaction Documents to which SHLX or Operating is a party or to consummate the transactions contemplated hereby or thereby (including such consents,
approvals, licenses, permits, orders or authorizations that are not customarily obtained prior to the Closing and are reasonably expected to be obtained in the ordinary course of business following the Closing). 

Section 4.4 Brokerage Arrangements. 

Neither SHLX nor Operating has entered (directly or indirectly) into any agreement with any Person that would obligate SHLX, Operating or any
of their respective Affiliates to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby. 

Section 4.5 Litigation. 

There are no civil, criminal or administrative actions, suits, claims, hearings, arbitrations, investigations or proceedings pending or, or to
SHLX’s Knowledge, threatened that (a) question or involve the validity or enforceability of any of SHLX’s or Operating’s obligations under this Agreement or (b) seek (or reasonably might be expected to seek) (i) to
prevent or delay the consummation by SHLX or Operating of the transactions contemplated by this Agreement or (ii) damages in connection with any such consummation. 

  
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 Section 4.6 Investment Intent. 

Operating is accepting the Subject Interests for its own account with the present intention of holding the Subject Interests for investment
purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or state securities laws. SHLX and Operating acknowledge that the Subject Interests will not be registered under
the Securities Act or any applicable state securities law, and that such Subject Interests may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and
pursuant to state securities laws and regulations as applicable. 
 ARTICLE V 

ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS 

Section 5.1 Operation of Mars and Odyssey. 

(a) Except as provided by this Agreement, or as consented to by the other parties to this Agreement, during the period from the date of this
Agreement through the Closing Date, in the event items are presented to the partners of Mars or the members of Odyssey, (i) as to Mars, each of SHLX and SPLC shall, or shall cause its representative(s) to, vote in favor of, and (ii) as to
Odyssey, SOPUS shall, or shall cause its representative(s) to, vote in favor of , taking actions to: 
  

	 	(i)	conduct its business and operations in the usual and ordinary course thereof; and 

  

	 	(ii)	preserve, maintain and protect the assets and operations of Mars or Odyssey, as applicable, related thereto as are now being conducted. 


Each of SHLX, SPLC and SOPUS shall, or shall cause its representatives to, vote its interests in Mars or Odyssey, as applicable, in opposition
to any actions contrary to the foregoing. 
 (b) Except (i) as provided by this Agreement, (ii) as set forth on
Section 5.1(b) of the Disclosure Letter or (iii) as consented by the other parties to this Agreement, during the period from the date of this Agreement through the Closing Date, neither SPLC nor SHLX shall, and shall cause their
representative(s) not to, vote in favor of any action that would permit Mars to, and SOPUS shall not, and shall cause its representative(s) not to, vote in favor of any action that would permit Odyssey to: 

 

	 	(i)	amend its organizational documents; 

  

	 	(ii)	liquidate, dissolve, recapitalize or otherwise wind up its business; 

  

	 	(iii)	make any material change in any method of accounting or accounting principles, practices or policies other than those required by GAAP or Applicable Law; 


  
 27 








	 	(iv)	make, amend or revoke any material election with respect to Taxes; 

  

	 	(v)	enter into any contract or agreement that would be a Material Contract if entered into prior to the date of this Agreement, terminate any Material Contract or amend any Material Contract in any material respect, in each
case, other than in the ordinary course of business; 

  

	 	(vi)	purchase or otherwise acquire (including by lease) any asset or business of, or any equity interest in, any Person for consideration other than in the ordinary course of business; 


 

	 	(vii)	sell, lease, abandon or otherwise dispose of any asset other than in the ordinary course of business; 

  

	 	(viii)	take any action, refrain from taking any action, or enter into any agreement or contract that would result in the imposition of any Lien (other than Permitted Liens) on any assets; 


 

	 	(ix)	file any material lawsuit; 

  

	 	(x)	cancel, compromise, waive, release or settle any right, claim or lawsuit other than immaterial rights and claims in the ordinary course of business consistent with past practice; 


 

	 	(xi)	undertake any capital project other than as set forth on Section 5.1(b) of the Disclosure Letter; 

  

	 	(xii)	merge, consolidate or enter into any other business combination with any Person; 

  

	 	(xiii)	make any loan to any Person (other than extensions of credit to customers in the ordinary course of business and intercompany loans under SPLC’s or SOPUS’s cash management system in accordance with past
practice); 

  

	 	(xiv)	issue or sell any equity interests, notes, bonds or other securities, or any option, warrant or right to acquire the same or incur, assume or guarantee any indebtedness for borrowed money; 


 

	 	(xv)	with respect to Odyssey only, make any distribution with respect to its equity interests; 

  

	 	(xvi)	redeem, purchase, or otherwise acquire any of its equity interests; 

  

	 	(xvii)	fail to maintain in full force and effect its current insurance policies covering Mars, the Mars Assets and Mars’s business, and Odyssey, the Odyssey Assets and Odyssey’s business; 


  
 28 








	 	(xviii)	acquire, commence or conduct any activity or business that may generate income for United States federal income tax purposes that may not be “qualifying income” (as such term is defined pursuant to
Section 7704 of the Code), except to the extent such activity or business is being conducted on the date of this Agreement; 

  

	 	(xix)	take any action that would reasonably be expected to result in any representation and warranty of SPLC or SOPUS set forth in this Agreement becoming untrue in any material respect; or 


 

	 	(xx)	agree, whether in writing or otherwise, to do any of the foregoing. 

 Section 5.2
Cooperation; Further Assurances. 
 The parties to this Agreement shall use their respective commercially reasonable efforts
(a) to obtain all approvals and consents required by or necessary for the transactions contemplated by this Agreement, including, if required, any approvals and consents required by the HSR Act, and (b) to ensure that all of the conditions
to the respective obligations of such parties contained in Section 7.1 and Section 7.2, respectively, are satisfied timely; provided, however, that nothing in this Agreement will require any party hereto to hold separate, or
make any divestiture not expressly contemplated herein of, any asset or otherwise agree to any restriction on its operations or other burdensome condition which would in any such case be material to its assets, liabilities or business in order to
obtain any consent or approval or other clearance required by this Agreement. 
 ARTICLE VI 

TAX MATTERS 

Section 6.1 Liability for Taxes. 

(a) SPLC and SOPUS shall be jointly and severally liable for, and shall each indemnify, defend and hold harmless SHLX and Operating from any
unpaid Taxes (including related penalties and interest) imposed on or incurred by or with respect to their respective interests in the Subject Interests or the assets related to the Subject Interests, attributable to any taxable period ending on or
prior to the Closing Date or portion thereof to the extent occurring on or prior to the Closing Date. 
 (b) SHLX and Operating shall be
liable for any Taxes (including related penalties and interest) imposed on or incurred by or with respect to their interests in the Subject Interests or the assets related to the Subject Interests attributable to any taxable period beginning after
the Closing Date or portion thereof to the extent occurring after the Closing Date. 
 (c) Whenever it is necessary for purposes of this
Article VI to determine the amount of any Taxes imposed on or incurred by or with respect to the Subject Interests or the assets related to the Subject Interests for a taxable period beginning before and ending after the Closing Date which is
allocable to the period ending on or prior to the Closing Date and the allocation is not otherwise prescribed by Applicable Law or agreement in effect as of the date hereof, such amount shall be deemed to be the amount of such Tax for the entire Tax
period multiplied by a 

  
 29 







 
fraction, the numerator of which is the number of days in the Tax period ending on (and including) the Closing Date and the denominator of which is the number of days in the entire Tax period.

 (d) If SHLX receives a refund of any Taxes (including related penalties and interest) that SPLC or SOPUS is responsible for hereunder, or
if SPLC or SOPUS receives a refund of any Taxes (including related penalties and interest) that SHLX is responsible for hereunder, the party receiving such refund shall, within ninety (90) days after receipt of such refund, remit it to the
party which has responsibility for such Taxes hereunder. The parties shall cooperate in order to take all necessary and reasonable steps to claim any such refund. 

(e) For federal income tax purposes, the parties agree to report any payments with respect to Section 2.4,
Section 2.5, Section 6.1, Section 8.1 and Section 8.2 as an adjustment to the Consideration. 

Section 6.2 Cooperation. 

(a) The parties will cooperate fully with each other regarding Tax matters and the preparation and filing of Tax Returns (including the
execution of appropriate powers of attorney) and will make available to the other as reasonably requested all information, records and documents relating to Taxes governed by this Agreement until the expiration of the applicable statute of
limitations or extension thereof or the conclusion of all audits, appeals or litigation with respect to such Taxes. 
 Section 6.3
Transfer Taxes. 
 Any transfer, documentary, sales, use, stamp, registration and other similar Taxes and/or fees arising out of
or in connection with the transactions effected pursuant to this Agreement (each such Tax or fee, a “Transfer Tax”) shall be borne by the party on whom such obligation is primarily imposed by Applicable Law; provided, however, that
SHLX shall bear any Transfer Tax for which SHLX is jointly and severally liable, and for which no other party is primarily liable, under Applicable Law. The party responsible for a Transfer Tax pursuant to this Section 6.3 shall file all
necessary Tax Returns and other documentation with respect to such Transfer Tax. If required by Applicable Law, SPLC and SHLX shall, and shall cause their respective Affiliates to, join in the execution of any such Tax Returns and other
documentation. The parties shall cooperate to establish eligibility for any applicable exemption from any Transfer Tax. 

Section 6.4 Allocation of Consideration. 

The parties will use commercially reasonable efforts to agree upon an allocation of the Consideration to the Subject Interests and further
among the Mars Assets and the Odyssey Assets for U.S. federal income tax purposes in compliance with the principles of Section 1060 of the Code, and the Treasury Regulations thereunder, and Treasury Regulation Section 1.755-1, as
applicable. 

  
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 Section 6.5 Conflict. 

In the event of a conflict between the provisions of this Article VI and any other provisions of this Agreement, the provisions of this
Article VI shall control. 
 ARTICLE VII 

CONDITIONS TO CLOSING 

Section 7.1 Conditions to the Obligations of SHLX and Operating. 

The obligation of SHLX and Operating to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing
Date of all of the following conditions, any one or more of which may be waived, in whole or in part, by SHLX: 
 (a) The representations
and warranties of SPLC and SOPUS set forth in this Agreement shall be true and correct (without giving effect to any materiality standard or SPLC Material Adverse Effect qualification, except with respect to Section 3.8(a)) as of the
date of this Agreement and on the Closing Date as if made on such date, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct (without giving effect to
any materiality standard or SPLC Material Adverse Effect qualification, except with respect to Section 3.8(a)) as of such specified date, except, in each case, to the extent that failure of such representations and warranties to be true
and correct would not, individually or in the aggregate, result in a SPLC Material Adverse Effect. SPLC and SOPUS each shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be
performed or complied with by it by the time of the Closing. SPLC and SOPUS shall each have delivered to SHLX a certificate, dated as of the Closing Date and signed by an authorized officer of SPLC, or its general partner, and by an authorized
officer of SOPUS, respectively, confirming the foregoing matters set forth in this Section 7.1(a) (respectively, the “SPLC Closing Certificate” and the “SOPUS Closing Certificate”). 

(b) All necessary filings with and consents, approvals, licenses, permits, orders and authorizations of any Governmental Authority required
for the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act, if applicable) shall have been made and obtained, and all waiting periods with respect to filings made with Governmental Authorities in
contemplation of the consummation of the transactions described herein shall have expired or been terminated. 
 (c) All necessary consents
of any Person not a party hereto, other than any Governmental Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained, including any consents set forth on Section 7.1(c)
of the Disclosure Letter. 
 (d) No statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or
permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of the transactions contemplated
hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the consummation of the transactions contemplated hereby or
to recover damages in connection herewith. 

  
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 (e) Since the date of this Agreement, there shall not have occurred a SPLC Material Adverse
Effect. 
 (f) SPLC and SOPUS or their respective designees shall have delivered, or caused to be delivered, to SHLX all of the documents,
certificates and other instruments required to be delivered under, and otherwise complied with the provisions of, Section 2.3(d) and Section 2.3(e). 

Section 7.2 Conditions to the Obligations of SPLC and SOPUS. 

The obligation of SPLC and of SOPUS to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing
Date all of the following conditions, any one or more of which may be waived in writing, in whole or in part, by SPLC or by SOPUS: 
 (a)
The representations and warranties of SHLX and Operating set forth in this Agreement shall be true and correct (without giving effect to any materiality standard or SHLX Material Adverse Effect qualification) as of the date of this Agreement and on
the Closing Date as if made on such date, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct (without giving effect to any materiality standard or SHLX
Material Adverse Effect qualification) as of such specified date, except, in each case, to the extent that failure of such representations and warranties to be true and correct would not, individually or in the aggregate, result in a SHLX Material
Adverse Effect. SHLX and Operating shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by SHLX or Operating, as the case may be, by the time of the
Closing. SHLX shall have delivered to SPLC and SOPUS a certificate, dated as of the Closing Date and signed by an authorized officer of the General Partner confirming the foregoing matters set forth in this Section 7.2(a) (the
“SHLX Closing Certificate”). 
 (b) All necessary filings with and consents, approvals, licenses, permits, orders and
authorizations of any Governmental Authority required for the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act, if applicable) shall have been made and obtained, and all waiting periods with
respect to filings made with Governmental Authorities in contemplation of the consummation of the transactions described herein shall have expired or been terminated. 

(c) All necessary consents of any Person not a party hereto, other than any Governmental Authority, required for the consummation of the
transactions contemplated in this Agreement shall have been made and obtained. 
 (d) No statute, rule, regulation, executive order, decree,
temporary restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the
consummation of the transactions contemplated hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the
consummation of the transactions contemplated hereby or to recover damages in connection herewith. 

  
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 (e) Since the date of this Agreement, there shall not have occurred a SHLX Material Adverse
Effect. 
 (f) SHLX and Operating shall have delivered, or caused to be delivered, to SPLC and SOPUS all of the documents, certificates and
other instruments required to be delivered under, and otherwise complied with the provisions of, Section 2.3(b) and Section 2.3(c). 

ARTICLE VIII 

INDEMNIFICATION 

Section 8.1 Indemnification of SHLX. 

Subject to the limitations set forth in this Agreement, SPLC and SOPUS, jointly and severally, shall indemnify, defend and hold SHLX, its
subsidiaries and their respective security holders, directors, officers, and employees, and the officers, directors and employees of the General Partner, but otherwise excluding SPLC, SOPUS, and their respective Affiliates (the “SHLX
Indemnified Parties”), harmless from and against any and all Damages suffered or incurred by any SHLX Indemnified Party as a result of or arising out of (a) any breach or inaccuracy of a representation or warranty of SPLC or SOPUS in
this Agreement and (b) any breach of any agreement or covenant on the part of SPLC or SOPUS made under this Agreement or in connection with the transactions contemplated hereby or thereby; provided, however, that for purposes of determining the
amount of any Damages suffered or incurred by the SHLX Indemnified Parties, Operating’s acquisition of only 49.0% of the membership interests of Odyssey and 20.0% of the partnership interests of Mars shall be taken into account, such that the
aggregate Damages described in this Section 8.1 suffered or incurred by the SHLX Indemnified Parties, would equal (where applicable) no more than 49.0% of the total of such Damages suffered by Odyssey and no more than 20.0% of the total of
such Damages suffered by Mars, as the case may be. Any indemnification provided pursuant to this Agreement shall not be duplicative of any indemnification provided pursuant to the Omnibus Agreement. Further, if entitled to indemnification under this
Section 8.1, the SHLX Indemnified Parties may seek indemnification from either SPLC or SOPUS, as applicable, but may recover an aggregate amount not to exceed the above specified percentage of the Damages and subject to all other
limitations set forth in this Agreement, including Article VIII hereof. 
 Section 8.2 Indemnification of SPLC and SOPUS. 

Subject to the limitations set forth in this Agreement, SHLX and Operating, jointly and severally, shall indemnify, defend and hold SPLC,
SOPUS, and their respective Affiliates (other than any of SHLX Indemnified Parties) and their respective securityholders, directors, officers, agents, representatives and employees (the “SPLC Indemnified Parties”) harmless from and
against any and all Damages suffered or incurred by the SPLC Indemnified Parties as a result of or arising out of (a) any breach or inaccuracy of a representation or warranty of SHLX or Operating in this Agreement or (b) any breach of any
agreement or covenant on the part of SHLX or Operating made under this Agreement or in connection with the transactions contemplated hereby or thereby. Any indemnification provided pursuant to this Agreement shall not be duplicative of any
indemnification provided pursuant to the Omnibus Agreement. 

  
 33 







 Section 8.3 Survival. 

All the provisions of this Agreement shall survive the Closing, notwithstanding any investigation at any time made by or on behalf of any
party hereto, provided that the representations and warranties set forth in Article III and Article IV shall terminate and expire on the date that is eighteen (18) months following the Closing Date, except (a) the
representations and warranties of SPLC and SOPUS set forth in Section 3.9 (Taxes) shall survive until the date that is sixty (60) days after the expiration of the applicable statutes of limitations (including all periods of
extension and tolling), (b) the representations and warranties of SPLC and SOPUS set forth in Section 3.10 (Environmental Matters) shall terminate and expire on the third (3rd) anniversary of the Closing Date, (c) the
representations and warranties of SPLC and SOPUS set forth in Section 3.1 (Organization), Section 3.2 (Authority and Approval), Section 3.4(a) (Capitalization; Title to Subject Interests) and Section 3.17 (Brokerage
Arrangements) shall survive until the expiration of the applicable statute of limitations, and (d) the representations and warranties of SHLX set forth in Section 4.1 (Organization and Existence), Section 4.2 (Authority
and Approval) and Section 4.5 (Brokerage Arrangements) shall survive until the expiration of the applicable statute of limitations. After a representation and warranty has terminated and expired, no indemnification shall or may be sought
pursuant to this Article VIII on the basis of that representation and warranty by any Person who would have been entitled pursuant to this Article VIII to indemnification on the basis of that representation and warranty prior to its
termination and expiration, provided that in the case of each representation and warranty that shall terminate and expire as provided in this Section 8.3, no claim presented in writing for indemnification pursuant to this Article
VIII on the basis of that representation and warranty prior to its termination and expiration shall be affected in any way by that termination and expiration. The indemnification obligations under this Article VIII or elsewhere in this
Agreement shall apply regardless of whether any suit or action results solely or in part from the active, passive or concurrent negligence or strict liability of the indemnified party. The covenants and agreements entered into pursuant to this
Agreement to be performed after the Closing shall survive the Closing. 
 Section 8.4 Indemnification Procedures. 

(a) The indemnified party hereunder agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for
indemnification under this Article VIII, it will provide notice thereof in writing to the indemnifying party, specifying the nature of and specific basis for such claim. 

(b) The indemnifying party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the indemnified party that are covered by the indemnification under this Article VIII, including the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any
matter or any issues relating thereto; provided, however, that no such settlement for only the payment of money shall be entered into without the consent of the indemnified party, which consent shall not be unreasonably withheld, conditioned or
delayed, unless it includes a full 

  
 34 







 
release of the indemnified party from such claim; provided further, that no such settlement containing any form of injunctive or similar relief shall be entered into without the prior written
consent of the indemnified party, which consent shall not be unreasonably delayed or withheld. 
 (c) The indemnified party agrees to
cooperate in good faith and in a commercially reasonably manner with the indemnifying party, with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this
Article VIII, including the prompt furnishing to the indemnifying party of any correspondence or other notice relating thereto that the indemnified party may receive, permitting the name of the indemnified party to be utilized in connection
with such defense and counterclaims, the making available to the indemnifying party of any files, records or other information of the indemnified party that the indemnifying party considers relevant to such defense and counterclaims, the making
available to the indemnifying party of any employees of the indemnified person and the granting to the indemnifying party of reasonable access rights to the properties and facilities of the indemnified party; provided, however, that in connection
therewith the indemnifying party agrees to use reasonable efforts to minimize the impact thereof on the operations of the indemnified party and further agrees to maintain the confidentiality of all files, records, and other information furnished by
the indemnified party pursuant to this Section. The obligation of the indemnified party to cooperate with the indemnifying party as set forth in the immediately preceding sentence shall not be construed as imposing upon the indemnified party an
obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article VIII, provided, however, that the indemnified party
may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The indemnifying party agrees to keep any such counsel hired by the indemnified party informed as to the status of any such
defense or counterclaim, but the indemnifying party shall have the right to retain sole control over such defense and counterclaims so long as the indemnified party is still seeking indemnification hereunder. 

(d) In determining the amount of any Damages for which the indemnified party is entitled to indemnification under this Agreement, the gross
amount of the indemnification will be reduced by (i) any insurance proceeds realized by the indemnified person in respect of such Damages from third party insurers, and such correlative insurance benefit shall be net of any expenses related to
the receipt of such proceeds, including any premium adjustments that become due and payable by the indemnified party as a result of such claim, and (ii) all amounts recovered by the indemnified party in respect of such Damages under contractual
indemnities from third persons. 
 Section 8.5 Direct Claim. 

Any claim by an indemnified party with respect to any Damages which do not result from a claim for indemnity involving a third party (a
“Direct Claim”) will be asserted by giving the indemnifying party reasonably prompt written notice thereof, stating the nature of such claim in reasonable detail and indicating the estimated amount, if practicable. The indemnifying
party will have a period of ninety (90) days from receipt of such Direct Claim within which to respond to such Direct Claim. If the indemnifying party does not respond within such ninety (90) day period, the indemnifying party will be
deemed to have accepted such Direct Claim. If the indemnifying party rejects such Direct Claim, the indemnified party will be free to seek enforcement of its rights to indemnification under this Agreement. 

  
 35 







 Section 8.6 Limitations on Indemnification. 

(a) To the extent that SHLX Indemnified Parties would otherwise be entitled to indemnification for Damages pursuant to
Section 8.1(a), SPLC and SOPUS, jointly and severally, shall be liable only if (i) the Damages with respect to any individual claim exceed One Hundred Thousand Dollars ($100,000) (the “Minimum Claim Amount”) and
(ii) the Damages for all claims that exceed the Minimum Claim Amount exceed, in the aggregate, One Million Dollars ($1,000,000) (the “Deductible Amount”), and then SPLC and SOPUS, jointly and severally, shall be liable only for
Damages to the extent of any excess over the Deductible Amount. In no event shall SPLC’s and SOPUS’s aggregate liability to SHLX Indemnified Parties under Section 8.1 exceed Thirty-Five Million Dollars ($35,000,000) (the
“Ceiling Amount”). Notwithstanding the foregoing, (i) SPLC’s and SOPUS’s aggregate liability to SHLX Indemnified Parties under Section 8.1 for breaches or inaccuracies of representations and warranties
contained in Section 3.20 (Management Projections and Budget) shall not be subject to the Ceiling Amount but shall not exceed One Hundred Seventy Five Million Dollars ($175,000,000) and (ii) the Deductible Amount and the Ceiling
Amount shall not apply to breaches or inaccuracies of representations and warranties contained in Section 3.1 (Organization), Section 3.2 (Authority and Approval), Section 3.4 (Capitalization; Title to Subject
Interests), Section 3.9 (Taxes), Section 3.17 (Brokerage Arrangements) and Section 3.18 (Books and Records), provided, that SPLC’s and SOPUS’s aggregate liability for all claims under this Agreement,
including for breaches or inaccuracies of representations and warranties contained in such sections described in clauses (i) and (ii) and for breaches of covenants, shall not exceed the Consideration. 

(b) For purposes of determining the amount of Damages, with respect to any asserted claim for indemnification by a SHLX Indemnified Party,
such determination shall be made without regard to any qualifier as to “material,” “materiality” or SPLC Material Adverse Effect expressly contained in Article III (except in the case of the term “Material
Contract”); provided that this Section 8.6(b) shall not so modify the representations and warranties for purposes of first determining whether a breach of any representation or warranty has occurred. 

(c) Additionally, neither SPLC nor SOPUS, on the one hand, nor SHLX and Operating, on the other hand, will be liable as an indemnitor under
this Agreement for any consequential, incidental, special, indirect or exemplary damages suffered or incurred by the indemnified party or parties except to the extent resulting pursuant to third party indemnity claims. 

Section 8.7 Sole Remedy. 

No party shall have liability under this Agreement or the transactions contemplated hereby except as is provided in Article VI or this
Article VIII (other than claims or causes of action arising from fraud or willful misconduct). 

  
 36 







 ARTICLE IX 

MISCELLANEOUS 

Section 9.1 Acknowledgements. 

Each party acknowledges that it has relied on the representations and warranties of the other parties expressly and specifically set forth in
this Agreement, including, in the case of SHLX and Operating, the Disclosure Letter attached hereto. Such representations and warranties constitute the sole and exclusive representations and warranties of the parties hereto in connection with the
transactions contemplated hereby, and the parties hereto understand, acknowledge and agree that all other representations and warranties of any kind or nature, whether expressed, implied or statutory, oral or written, past or present, are
specifically disclaimed. 
 Section 9.2 Cooperation; Further Assurances. 

SPLC, SOPUS, SHLX and Operating shall use their respective commercially reasonable efforts to obtain all approvals and consents and to execute
and deliver all documents and instruments required by or necessary for the consummation of the transactions contemplated by this Agreement. Each of the parties acknowledges that certain actions may be necessary with respect to the matters and
actions contemplated by this Agreement, such as making notifications and obtaining consents or approvals or other clearances that are material to the consummation of the transactions contemplated hereby, and each agrees to take all appropriate
action and to do all things necessary, proper or advisable under Applicable Laws and regulations to make effective the transactions contemplated by this Agreement; provided, however, that nothing in this Agreement will require any party hereto to
hold separate or make any divestiture not expressly contemplated herein of any asset or otherwise agree to any restriction on its operations or other burdensome condition which would in any such case be material to its assets, liabilities or
business in order to obtain any consent or approval or other clearance required by this Agreement. 
 Section 9.3 Expenses.

 Except as otherwise provided herein and regardless of whether the transactions contemplated hereby are consummated, each party shall
pay its own expenses incident to this Agreement and all action taken in preparation for carrying this Agreement into effect. 
 Section
9.4 Notices. 
 Any notice, request, instruction, correspondence or other document to be given hereunder by any party hereto to
another party hereto (herein collectively called “Notice”) shall be in writing and either delivered (i) in person or by courier service requiring acknowledgment of receipt of delivery or (ii) by e-mail, with delivery
deemed to have been duly given upon acknowledgment of receipt of e-mail, as follows: 

  
 37 







 If to SPLC or to SOPUS, addressed to: 

Shell Pipeline Company LP 
 One
Shell Plaza 
 910 Louisiana Street 

Houston, Texas 77002 
 Attn: Vice
President-Operations 
 Email: greg.smith@shell.com 

With a copy to: Assistant General Counsel-Downstream Americas 

Email: nora.brooks@shell.com 

Facsimile: (713) 241-6161 

If to SHLX and/or Operating, addressed to: 

Shell Midstream Partners, L.P. 

c/o Shell Midstream Partners GP LLC, its general partner 

One Shell Plaza 
 910 Louisiana
Street 
 Houston, Texas 77002 

Attn: Chief Executive Officer 

Email: john.hollowell@shell.com 

With a copy to: General Counsel 

Email: lori.muratta@shell.com 

Facsimile: (713) 241-6161 

Notice given by personal delivery or courier service shall be effective upon actual receipt. Any party may change any address to which Notice
is to be given to it by giving Notice as provided above of such change of address. 
 Section 9.5 Arbitration. 

(a) Any dispute, controversy or claim arising out of or in connection with this Agreement or its subject matter or formation, whether in tort,
contract, under statute or otherwise, including any question regarding its existence, validity, interpretation, breach or termination, and including any non-contractual claim (a “Dispute”), shall be finally and exclusively resolved
by arbitration under the arbitration rules of the American Arbitration Association (the “Rules”), which Rules are deemed to be incorporated by reference into this Agreement. 

(b) The arbitral tribunal (the “Tribunal”) shall consist of three arbitrators, to be appointed in accordance with the Rules.

 (c) The seat of the arbitration shall be Houston, Texas. 

(d) The language of the arbitration shall be English. 

(e) Any award rendered by the Tribunal shall be made in writing and shall be final and binding on the parties to this Agreement. The parties
to this Agreement undertake to carry out the award without delay. 

  
 38 







 (f) All aspects of the arbitration shall be confidential. Save to the extent required by law or
pursuant to any proceedings to enforce or challenge an award, no aspect of the proceedings, documentation, or any partial or final award or order or any other matter connected with the arbitration shall be disclosed to any other person by either
party or its counsel, agents, corporate parents, affiliates or subsidiaries without the prior written consent of the other party / parties. 

(g) Nothing in this Section 9.5 shall be construed as preventing any party from seeking conservatory or similar interim relief from any
court with competent jurisdiction. 
 (h) In respect of any Dispute, each party to this Agreement expressly waives any right to claim or
recover from the other party and the Tribunal is not empowered to award punitive, exemplary, moral, multiple or similar non compensatory damages. 

(i) Articles 3 and 9 of the International Bar Association (IBA) Rules on the Taking of Evidence in International Arbitration shall apply to
the arbitration. 
 (j) Each Party hereby waives, to the fullest extent permitted by law: (i) any right under the laws of any
jurisdiction to apply to any court or other judicial authority to determine any preliminary point of law, except as expressly provided in Section 9.5(g) and/or (ii) any right it may otherwise have under the laws of any jurisdiction to
appeal or otherwise challenge the award, other than on the same grounds on which recognition and enforcement of an award may be refused under Article V of the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral
Awards of 1958. 
 (k) Judgment upon any award and/or order may be entered in any court having jurisdiction thereof. 

Section 9.6 Governing Law. 

(a) This Agreement shall be subject to and governed by the laws of the State of Texas. Each Party hereby submits to the exclusive jurisdiction
of the state and federal courts in the State of Texas and to venue in the state courts in Harris County, Texas and in the federal courts of Harris County, Texas. 

(b) Each of the parties to this Agreement irrevocably waives any and all right to trial by jury in any legal proceeding between the parties
arising out of or relating to this Agreement or the transactions contemplated by this Agreement. 
 (c) Each party to this Agreement waives,
to the fullest extent permitted by Applicable Law, any right it may have to receive damages from any other party based on any theory of liability for any special, indirect, consequential (including lost profits), exemplary or punitive damages
(except to the extent that any such damages are included in indemnifiable losses resulting from a third party claim in accordance with Article VIII). 

  
 39 







 Section 9.7 Public Statements. 

The parties hereto shall consult with each other and no party shall issue any public announcement or statement with respect to this Agreement
or the transactions contemplated hereby without the consent of the other parties, unless the party desiring to make such announcement or statement, after seeking such consent from the other parties, obtains advice from legal counsel that a public
announcement or statement is required by Applicable Law or stock exchange regulations. 
 Section 9.8 Entire Agreement; Amendments and
Waivers. 
 (a) This Agreement and the other Transaction Documents constitute the entire agreement among the parties with respect to
the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Each party to this Agreement agrees that no other party to this Agreement (including
its agents and representatives) has made any representation, warranty, covenant or agreement to or with such party relating to this Agreement or the transactions contemplated hereby, other than those expressly set forth herein and in the other
Transaction Documents. 
 (b) No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by each
party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver
unless otherwise expressly provided. 
 Section 9.9 Conflicting Provisions. 

This Agreement and the other Transaction Documents, read as a whole, set forth the parties’ rights, responsibilities and liabilities with
respect to the transactions contemplated by this Agreement. In this Agreement and the other Transaction Documents, and as between them, specific provisions prevail over general provisions. In the event of a conflict between this Agreement and any of
the other Transaction Documents, this Agreement shall control. 
 Section 9.10 Binding Effect and Assignment. 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns, but
neither this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned or transferred, by operation of law or otherwise, by any party hereto without the prior written consent of each other party; provided that SHLX and
Operating may assign their right to receive the Subject Interests hereunder to a wholly-owned subsidiary without the written consent of SPLC or SOPUS, provided that SHLX and Operating shall not be relieved of any obligations or liabilities hereunder
as a result of any such assignment. Nothing in this Agreement, express or implied, is intended to confer upon any person or entity other than the parties hereto and their respective permitted successors and assigns, any rights, benefits or
obligations hereunder, except for express language with respect to SHLX Indemnified Parties and the SPLC Indemnified Parties contained in the indemnification provisions of Article VIII. 

  
 40 







 Section 9.11 Severability. 

If any provision of this Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted
legislation or by decree of a court of last resort, the parties hereto shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but all of the remaining provisions of this Agreement shall
remain in full force and effect. 
 Section 9.12 Interpretation. 

It is expressly agreed by the parties that this Agreement shall not be construed against any party, and no consideration shall be given or
presumption made, on the basis of who drafted this Agreement or any provision hereof or who supplied the form of this Agreement. Each party agrees that this Agreement has been purposefully drawn and correctly reflects its understanding of the
transactions contemplated by this Agreement and, therefore, waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such
agreement or document. 
 Section 9.13 Headings and Disclosure Letter. 

The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement. The Disclosure Letter and the Exhibits referred to herein are attached hereto and incorporated herein by this reference, and unless the context expressly requires otherwise, the
Disclosure Letter and such Exhibits are incorporated in the definition of “Agreement.” 
 Section 9.14 Multiple
Counterparts. 
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 Section 9.15 Action by SHLX. 

With respect to any action, notice, consent, approval or waiver that is required to be taken or given or that may be taken or given by SHLX
with respect to the transactions contemplated hereby, such action, notice, consent, approval or waiver shall be taken or given solely by the Conflicts Committee on behalf of SHLX. 

[Signature page follows.] 

  
 41 







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

  

			
	Shell Pipeline Company LP
		
	By:	 	Shell Pipeline GP LLC, its general partner
		
	By:	 	 /s/ Kevin M. Nichols

	Name:	 	Kevin M. Nichols
	Title:	 	Vice President
	
	 Equilon Enterprises LLC

d/b/a Shell Oil Products US

		
	By:	 	 /s/ Shawn J. Carsten

	Name:	 	Shawn J. Carsten
	Title:	 	Vice President and Treasurer
	
	Shell Midstream Partners, L.P.
		
	By:	 	Shell Midstream Partners GP LLC, its general partner
		
	By:	 	 /s/ John H. Hollowell

	Name:	 	John H. Hollowell
	Title:	 	President and Chief Executive Officer
	
	Shell Midstream Operating LLC
		
	By:	 	 /s/ John H. Hollowell

	Name:	 	John H. Hollowell
	Title:	 	President and Chief Executive Officer








 Appendix A 

The designated personnel for SPLC, SOPUS, and SHLX, for purposes of “Knowledge” in this Agreement, are set forth below. 

 

	 	•	 	John Hollowell 

  

	 	•	 	Kevin Nichols 

  

	 	•	 	Ryan Lockwood 

  

	 	•	 	Humberto Orantes 

  

	 	•	 	Michael Fleming 

  

	 	•	 	Rebecca Wawak 

  

	 	•	 	Geoff Gauthier 







 Appendix B 

[attached]