Document:

exv10w3

 

Exhibit 10.3

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (herein called the “Amendment”) made as of
October ___, 2007 by and among Targa Resources Partners LP, a Delaware limited partnership (the
“Borrower”), Bank of America, N.A., as Administrative Agent (“Administrative
Agent”), Collateral Agent, Swing Line Lender and L/C Issuer, and each Lender party hereto
(collectively the “Lenders” and individually, a “Lender”).

W I T N E S S E T H:

     WHEREAS, the Borrower, Administrative Agent and Lenders entered into that certain Credit
Agreement dated as of February 14, 2007 (as amended, supplemented, or restated to the date hereof,
the “Original Agreement”), for the purpose and consideration therein expressed, whereby
Lenders became obligated to make loans to the Borrower as therein provided; and

     WHEREAS, the Borrower desires to amend the Original Agreement to increase the maximum amount
of increases to the Aggregate Commitments that may be requested by the Borrower under Section 2.14;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Original Agreement, in consideration of the loans which may hereafter
be made by Lenders to the Borrower, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.

DEFINITIONS AND REFERENCES

     Section 1.1. Terms Defined in the Original Agreement. Unless the context otherwise
requires or unless otherwise expressly defined herein, the terms defined in the Original Agreement
shall have the same meanings whenever used in this Amendment.

     Section 1.2. Other Defined Terms. Unless the context otherwise requires, the
following terms when used in this Amendment shall have the meanings assigned to them in this
Section 1.2.

     “Amendment” means this First Amendment to Credit Agreement and the Guarantor
Ratification attached hereto.

     “Credit Agreement” means the Original Agreement as amended hereby.

1

 

ARTICLE II.

AMENDMENTS TO ORIGINAL AGREEMENT

     Section 2.1. Increase in Commitments. The Original Agreement is hereby amended to
replace the reference to “$250,000,000” in clause (ii) of Section 2.14(a) of the Original Agreement
with “$500,000,000”.

ARTICLE III.

CONDITIONS OF EFFECTIVENESS

     Section 3.1. Effective Date. This Amendment shall become effective as of the date
first above written when, and only when, (i) Administrative Agent shall have received, at
Administrative Agent’s office, a counterpart of this Amendment executed and delivered by the
Borrower and Required Lenders and a counterpart of the Guarantor Ratification executed and
delivered by each Guarantor, (ii) the Borrower shall have requested an increase in the Aggregate
Commitments pursuant to Section 2.14 of the Credit Agreement in the amount of $250,000,000 and such
increase in the Aggregate Commitments shall have become effective, and (iii) Administrative Agent
shall have additionally received all of the following documents, each document (unless otherwise
indicated) being dated the date of receipt thereof by Administrative Agent, duly authorized,
executed and delivered, and in form and substance satisfactory to Administrative Agent:

     (a) a favorable opinion of Bracewell & Giuliani LLP, counsel to the Loan Parties,
addressed to the Administrative Agent and each Lender, as to such matters as the
Administrative Agent may reasonably request;

     (b) a certificate of the Secretary of each Loan Party certifying that none of the
resolutions or other action, incumbency certificates and/or other certificates of
Responsible Officers of each Loan Party as the Administrative Agent has previously required
evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Amendment and the other
Loan Documents to which such Loan Party is a party have been amended since they were
delivered,

     (c) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and that each Loan
Party is validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification; and that the execution and delivery of this Amendment
has been duly authorized; and

     (d) the Borrower shall have paid all fees required to be paid to Administrative Agent
pursuant to any Loan Documents and all other fees and reimbursements to be paid pursuant to
any Loan Documents, including fees and disbursements of Administrative Agent’s attorneys.

2

 

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

     Section 4.1. Representations and Warranties of the Borrower. In order to induce each
Lender to enter into this Amendment, the Borrower represents and warrants to each Lender that,
after giving effect to this Amendment (and including for purposes of all references to the Loan
Documents, and the Credit Agreement, (i) the representations and warranties of the Borrower and
each Loan Party contained in Article V of the Original Agreement or any other Loan Document, or
which are contained in any document furnished at any time under or in connection therewith, are
true and correct in all material respects on and as of the time of the effectiveness hereof, except
to the extent such representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and for purposes of this Section
4.1, the representations and warranties contained in subsections (a) and (b) of Section
5.05 of the Credit Agreement shall be deemed to refer, to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement, and
(ii) no Default exists.

ARTICLE V.

MISCELLANEOUS

     Section 5.1. Ratification of Agreements. The Original Agreement as hereby amended is
hereby ratified and confirmed in all respects. The other Loan Documents, as they may be amended or
affected by this Amendment, are hereby ratified and confirmed in all respects. Any reference to the
Credit Agreement in any Loan Document shall be deemed to be a reference to the Original Agreement
as hereby amended. The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein or therein, operate as a waiver of any right, power, or remedy of
Administrative Agent, Swing Line Lender, L/C Issuer, or Lenders under the Credit Agreement or any
other Loan Document nor constitute a waiver of any provision of the Credit Agreement or any other
Loan Document.

     Section 5.2. Survival of Agreements. All representations, warranties, covenants, and
agreements of the Borrower herein shall survive the execution and delivery of this Amendment and
the performance thereof, and shall further survive until all of the Obligations are paid in full.
All statements and agreements contained in this Amendment or any certificate or instrument
delivered by any Loan Party hereunder or thereunder to Administrative Agent, L/C Issuer, Swing Line
Lender, or any Lender shall be deemed to constitute representations and warranties by, and/or
agreements and covenants of the Borrower and such Loan Party under this Amendment and under the
Credit Agreement.

     Section 5.3. Loan Documents. This Amendment is a Loan Document, and all provisions in
the Credit Agreement pertaining to Loan Documents apply hereto and thereto.

     Section 5.4. Governing Law. This Amendment shall be governed by and construed in
accordance with, the law of the State of New York.

3

 

     Section 5.5. Counterparts; Fax. This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed shall be deemed to constitute one and the same agreement. This Amendment may be validly
executed by facsimile or other electronic transmission.

     THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF
THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.

[The remainder of this page has been intentionally left blank.]

4

 

     IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	TARGA RESOURCES PARTNERS LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Targa Resources GP LLC, its sole general

partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Howard M. Tate
	 

	 	 	 	 	 	Vice President — Finance and
Treasurer

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender,
L/C Issuer and Swing Line Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION, as Syndication
Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	MERRILL LYNCH CAPITAL, A DIVISION OF MERRILL LYNCH
BUSINESS FINANCIAL SERVICES INC., as
Co-Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA, as
Co-Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC, as
Co-Documentation Agent and as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BNP PARIBAS, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	SOCIÉTÉ GÉNÉRALE, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	BMO CAPITAL MARKETS FINANCING, INC., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	ABN AMRO BANK N.V., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	CITIBANK, N.A., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COMPASS BANK, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	FORTIS CAPITAL CORP., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	COMERICA BANK, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	GUARANTY BANK, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	NATIXIS, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	LEHMAN BROTHERS COMMERCIAL BANK, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

	 	 	 	 	 	 	 
	 	 	GOLDMAN SACHS CREDIT PARTNERS L.P., as a Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

GUARANTOR RATIFICATION

     The undersigned guarantors (whether one or more, “Guarantor”, and if more than one
jointly and severally), hereby (i) consents to the provisions of this Amendment and the
transactions contemplated herein, (ii) ratifies and confirms the Continuing Guaranty dated as of
February 14, 2007 made by it for the benefit of Administrative Agent and Lenders executed pursuant
to the Credit Agreement and the other Loan Documents, (iii) agrees that all of its respective
obligations and covenants thereunder shall remain unimpaired by the execution and delivery of this
Amendment and the other documents and instruments executed in connection herewith, and (iv) agrees
that the Guaranty and such other Loan Documents shall remain in full force and effect.

	 	 	 	 	 	 	 
	 	 	TARGA RESOURCES OPERATING LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Targa Resources Operating GP LLC,

its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Howard M. Tate
	 

	 	 	 	 	 	Vice President — Finance and
	 

	 	 	 	 	 	Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA RESOURCES OPERATING GP LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA NORTH TEXAS LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Targa North Texas GP LLC,

its sole general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Howard M. Tate
	 

	 	 	 	 	 	Vice President — Finance and
Treasurer

 

 

	 	 	 	 	 	 	 
	 	 	TARGA NORTH TEXAS GP LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA INTRASTATE PIPELINE LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA RESOURCES TEXAS GP LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA TEXAS FIELD SERVICES LP
	 
	 	 	 	 	 	 
	 	 	By:	 	Targa Resources Texas GP LLC, its sole

general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Howard M. Tate
	 

	 	 	 	 	 	Vice President — Finance and
Treasurer

 

 

	 	 	 	 	 	 	 
	 	 	TARGA LOUISIANA FIELD SERVICES LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer
	 
	 	 	 	 	 	 
	 	 	TARGA LOUISIANA INTRASTATE LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Howard M. Tate
	 	 	 	 	Vice President — Finance and
Treasurer

Address of each Guarantor:

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: Vice President — Finance

Telephone: 713.584.1024

Telecopier: 713.584.1523exv10w5

 

Exhibit 10.5

 

 

AMENDED AND RESTATED

OMNIBUS AGREEMENT

among

TARGA RESOURCES, INC.

TARGA RESOURCES GP LLC

and

TARGA RESOURCES PARTNERS LP

 

 

 

 

AMENDED AND RESTATED

OMNIBUS AGREEMENT

     THIS AMENDED AND RESTATED OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as
of, September ___, 2007, and is by and among Targa Resources, Inc., a Delaware corporation
(“Targa”), Targa Resources LLC, Targa Resources GP LLC, a Delaware limited liability company (the
“General Partner”) and Targa Resources Partners LP, a Delaware limited partnership (the
“Partnership”). The above-named entities are sometimes referred to in this Agreement each as a
“Party” and collectively as the “Parties.”

R E C I T A L S:

     1. The Parties entered into that certain Omnibus Agreement, dated and effective as of the
Closing Date (as defined herein) (the “Current Agreement"), to (i) evidence their agreement with
respect to the amount to be paid by the Partnership for certain general and administrative services
to be performed by Targa and its Affiliates as well as direct expenses, including operating
expenses, incurred by Targa and its Affiliates for and on behalf of the Partnership Group (as
defined herein) and (ii) evidence their agreement with respect to certain indemnification
obligations of the Parties.

     2. The Parties desire to amend and restate the Current Agreement to, among other things,
reflect the purchase of the SAOU/LOU Business (as defined herein) by the Partnership from certain
Affiliates of Targa.

     In consideration of the agreements contained herein, and for other good and valuable
consideration, the Parties hereby amend and restate the Current Agreement as follows:

ARTICLE I

Definitions

	 	a.	 	Definitions.

          As used in this Agreement, the following terms shall have the respective meanings set
forth below:

     “Affiliate” is defined in the Partnership Agreement.

     “Closing Date” means the date of the closing of the Partnership’s initial public
offering of Common Units.

     “Common Units” is defined in the Partnership Agreement.

     “Conflicts Committee” is defined in the Partnership Agreement.

     “Covered Environmental Losses” means all environmental losses, damages, liabilities,
claims, demands, causes of action, judgments, settlements, fines, penalties, costs and
expenses (including, without limitation, costs and expenses of any

 

 

Environmental Activity, court costs and reasonable attorney’s and experts’ fees) of any
and every kind or character, by reason of or arising out of:

     (i) any violation or correction of violation of Environmental Laws, including without
limitation performance of any Environmental Activity; or

     (ii) any event, omission or condition associated with ownership or operation of the
North Texas Assets relating to Environmental Activities (including, without limitation, the
exposure to or presence of Hazardous Substances on, under, about or migrating to or from the
North Texas Assets or the exposure to or release of Hazardous Substances arising out of
operation of the North Texas Assets) including, without limitation, (A) the cost and expense
of any Environmental Activities, (B) the cost or expense of the preparation and
implementation of any closure, remedial or corrective action or other plans required or
necessary under Environmental Laws and (C) the cost and expense for any environmental or
toxic tort pre-trial, trial or appellate legal or litigation support work; provided, in the
case of clauses (A) and (B), such cost and expense shall not include the costs associated
with project management and soil and ground water monitoring.

     “CPI Index” is defined in Section 2.1(c) of this Agreement.

     “Environmental Activities” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required
or necessary under any applicable Environmental Law, including, but not limited to,
institutional or engineering controls or participation in a governmental voluntary cleanup
program to conduct voluntary investigatory and remedial actions for the clean-up, removal or
remediation of Hazardous Substances that exceed actionable levels established pursuant to
Environmental Laws, or participation in a supplemental environmental project in partial or
whole mitigation of a fine or penalty.

     “Environmental Laws” means all federal, state, and local laws, statutes, rules,
regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental
Permits and other legally enforceable requirements and rules of common law relating to (a)
pollution or protection of the environment or natural resources including, without
limitation, the federal Comprehensive Environmental Response, Compensation and Liability
Act, the Superfund Amendments and Reauthorization Act, the Resource Conservation and
Recovery Act, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, the Toxic
Substances Control Act, the Oil Pollution Act of 1990, the Hazardous Materials
Transportation Act, the Marine Mammal Protection Act, the Endangered Species Act, the
National Environmental Policy Act and other environmental conservation and protection laws,
each as amended through the Closing Date, (b) any release or threatened release of, or any
exposure of any Person or property to, any Hazardous Substances and (c) the generation,
manufacture, processing, distribution, use, treatment, storage, transport or handling of any
Hazardous Substances.

-2 

 

          “Environmental Permit” means any permit, approval, identification number, license,
registration, consent, exemption, variance or other authorization required under or issued
pursuant to any applicable Environmental Law.

          “G&A Expenses Limit” is defined in Section 2.1(c) of this Agreement.

          “General Partner” is defined in the introduction to this Agreement.

          “Hazardous Substance” means (a) any substance that is designated, defined or classified
as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or
hazardous substance, or terms of similar meaning, or that is otherwise regulated under any
Environmental Law, including, without limitation, any hazardous substance as defined under
the Comprehensive Environmental Response, Compensation and Liability Act, as amended, (b)
oil as defined in the Oil Pollution Act of 1990, as amended, including oil, gasoline,
natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other refined
petroleum hydrocarbons and petroleum products and (c) radioactive materials, asbestos
containing materials or polychlorinated biphenyls.

          “Indemnified Party” means each Partnership Group Member and Targa in their capacities
as parties entitled to indemnification in accordance with Article III.

          “Indemnifying Party” means each of Targa and the Partnership Group, as the case may be,
in their capacity as the parties from whom indemnification may be required in accordance
with Article III.

          “Limited Partner” is defined in the Partnership Agreement.

          “Losses” means all losses, damages, liabilities, claims, demands, causes of action,
judgments, settlements, fines, penalties, costs and expenses (including, without limitation,
court costs and reasonable attorney’s and experts’ fees) of any and every kind or character.

          “North Texas Assets” means the gathering and processing assets to be contributed to the
Partnership in connection with its initial public offering and as more completely described
in the Registration Statement and includes the pipelines, processing plants or related
equipment or assets, or portions thereof, conveyed, contributed or otherwise transferred or
intended to be conveyed, contributed or otherwise transferred to any member of the
Partnership Group, or owned by or necessary for the operation of the business, properties or
assets of any member of the Partnership Group, prior to or as of the Closing Date.

          “Partnership” is defined in the introduction to this Agreement.

          “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Targa Resources Partners LP, dated as of the Closing Date, as such agreement
is in effect on the Closing Date, to which reference is hereby made for all purposes of this
Agreement. No amendment or modification to the Partnership Agreement subsequent to the
Closing Date shall be given effect for the purposes of this

-3 

 

Agreement unless such amendment receives the approval required pursuant to Section 4.5
hereof.

          “Partnership Entities” means the General Partner and each member of the Partnership
Group.

          “Partnership Group” means the Partnership and its Subsidiaries treated as a single
consolidated entity.

          “Partnership Group Member” means any member of the Partnership Group.

          “Partnership Indemnitee” shall mean any Person who is an Indemnitee (as defined in the
Partnership Agreement); provided, that the term “Partnership Indemnitee” shall exclude Targa
and any Affiliate of Targa which is not a member of the Partnership Group.

          “Party” and “Parties” are defined in the introduction to this Agreement.

          “Person” means an individual or a corporation, limited liability company, partnership,
joint venture, trust, business trust, employee benefit plan, unincorporated organization,
association, government agency or political subdivision thereof or other entity.

          “Registration Statement” means the Registration Statement on Form S-1 (Registration No.
333-138747) filed with the Securities and Exchange Commission with respect to the proposed
initial public offering of Common Units by the Partnership.

          “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any
contingency) to vote in the election of directors or other governing body of such
corporation is owned, directly or indirectly, at the date of determination, by such Person,
by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership
(whether general or limited) in which such Person or a Subsidiary of such Person is, at the
date of determination, a general or limited partner of such partnership, but only if more
than 50% of the partnership interests of such partnership (considering all of the
partnership interests of the partnership as a single class) is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of
such Person, or a combination thereof, or (c) any other Person (other than a corporation or
a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least
a majority ownership interest or (ii) the power to elect or direct the election of a
majority of the directors or other governing body of such Person.

          “Targa” is defined in the introduction to this Agreement.

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ARTICLE II

Reimbursement Obligations

     b. Reimbursement for Allocated General and Administrative Expenses; Limitations on
Reimbursement.

            (a) Targa hereby agrees to continue to provide the Partnership Group with certain general and
administrative services, such as legal, accounting, treasury, insurance, risk management, health,
safety and environmental, information technology, human resources, credit, payroll, internal audit,
taxes, engineering and marketing. These general and administrative services shall be substantially
identical in nature and quality to the services of such type previously provided by Targa in
connection with their management and operation of the North Texas Assets prior to their acquisition
by the Partnership. In the event that the Partnership Group makes any acquisitions of assets or
businesses from Targa or its Affiliates during the first three years following the Closing Date,
Targa will similarly provide general and administrative services that are substantially identical
in nature and quality to the services of such type previously provided by Targa in connection with
their management and operation of such assets or businesses prior to their acquisition by the
Partnership.

            (b) Subject to the provisions of Section 2.1(c) below, the Partnership Group hereby agrees to
reimburse Targa for all expenses and expenditures Targa or its Affiliates incur or payments they
make on behalf of the Partnership Group for these general and administrative services.

            (c) The amount for which Targa shall be entitled to reimbursement from the Partnership Group
pursuant to Section 2.1(b) for general and administrative expenses shall not exceed $5.0 million
annually for a period of three (3) years following the Closing Date (the “G&A Expenses Limit”).
Following the first anniversary of this Agreement, the G&A Expenses Limit shall be increased
annually over the next two years by the percentage increase in the Consumer Price Index — All
Urban Consumers, U.S. City Average, Not Seasonally Adjusted for the applicable year (the “CPI
Index”). In making such adjustment, the G&A Expenses Limit shall be increased on the first
anniversary of this Agreement by the CPI Index for the prior year period based on the most recent
information available from the U.S. Department of Labor and similarly increased on the second
anniversary of this Agreement by the CPI Index for the prior year period. In the event that the
Partnership Group makes any acquisitions of assets or businesses or the business of the Partnership
Group otherwise expands during the first three years following the Closing Date, then the G&A
Expenses Limit shall be appropriately increased in order to account for adjustments in the nature
and extent of the general and administrative services by Targa to the Partnership Group, with any
such increase in the G&A Expenses Limit subject to the approval of the Conflicts Committee. From
and after the date first set forth above, the G&A Expenses Limit is increased by the actual amount
of general and administrative expenses allocated by Targa for the services provided to Targa Texas
Field Services LP and Targa Louisiana Field Services LLC (the “SAOU/LOU Business”), according to
the allocation methodology utilized by Targa. After the third anniversary of the Closing Date, the
G&A Expenses Limit will no longer apply and the General Partner will determine the amount of
general and administrative expenses that will be properly allocated to the Partnership in
accordance with the terms of the Partnership Agreement. The G&A Expenses Limit shall not
apply to reimbursement for direct expenses of the Partnership as provided in Section 2.2.

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     c. Reimbursement for Direct Expenses.

            (d) The Partnership Group hereby agrees to reimburse Targa and its Affiliates for all direct
expenses and expenditures they incur or payments they make on behalf of the Partnership Group,
including, but not limited to, (i) salaries of operational personnel performing services on the
Partnership Group’s behalf, the cost of employee benefits for such personnel and general and
administrative expense associated with such personnel, (ii) capital expenditures, (iii) maintenance
and repair costs, (iv) taxes and (v) direct expenses, including operating expenses and certain
allocated operating expenses, associated with the ownership and operation of the North Texas Assets
and the SAOU/LOU Business.

            (e) The Partnership Group hereby agrees to reimburse Targa and its Affiliates for all expenses
and expenditures they incur or payments they make as a result of the Partnership becoming a
publicly traded entity, including costs associated with annual and quarterly reports, tax return
and Schedule K-1 preparation and distribution, independent auditor fees, registrar and transfer
agent fees, legal fees and independent director compensation.

            (f) The obligation of the Partnership Group to reimburse Targa and its Subsidiaries pursuant
to this Section 2.2 shall not be subject to any monetary limitation, including the G&A Expenses
Limit contained in Section 2.1.

ARTICLE III

Indemnification

     d. Environmental Indemnification.

            (a) Subject to the provisions of Section 3.3, Targa shall indemnify, defend and hold harmless
the Partnership Group and the Partnership Indemnitees from and against any Covered Environmental
Losses suffered or incurred by the Partnership Group or any Partnership Indemnitee relating to the
North Texas Assets for a period of three (3) years from the Closing Date but only to the extent
such violations, corrections, events or conditions occurred on or before the Closing Date;
provided, however, that such indemnity shall not apply to any Covered Environmental Losses reserved
on the books of the Partnership Group as of the Closing Date.

            (b) The Partnership Group shall indemnify, defend and hold harmless Targa and its Affiliates,
other than any Partnership Group Member, from and against any Covered Environmental Losses suffered
or incurred by Targa and its Affiliates, other than any Partnership Group Member, relating to the
North Texas Assets occurring after the Closing Date except to the extent that the Partnership Group
is indemnified with respect to any of such Covered Environmental Losses under Section 3.1(a).

            (c) The aggregate liability of Targa under Section 3.1(a) shall not exceed $10.0 million.

            (d) No claims may be made against Targa for indemnification pursuant to Section 3.1(a) unless
the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group or
Partnership Indemnitees exceed $250,000, after such time Targa shall be liable for the full amount
of such claims, subject to the limitations of Section 3.1(c).

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            (e) Notwithstanding anything herein to the contrary, in no event shall Targa have any
indemnification obligations under this Agreement for claims made as a result of additions to or
modifications of Environmental Laws promulgated after the Closing Date.

     e. Additional Indemnification

            (f) Subject to the provisions of Section 3.3, Targa shall indemnify, defend and hold harmless
the Partnership Group and the Partnership Indemnitees from and against any Losses suffered or
incurred by the Partnership Group or any Partnership Indemnitee by reason of or arising out of:

     (i) the failure of the Partnership Group to be the owner of valid and
indefeasible easement rights, leasehold and/or fee ownership interests in and to the
lands on which are located any North Texas Assets, and such failure renders the
Partnership Group liable or unable to use or operate the North Texas Assets in
substantially the same manner that the North Texas Assets were used and operated by
Targa and its Affiliates immediately prior to the Closing Date as described in the
Registration Statement;

     (ii) the failure of the Partnership Group to have on the Closing Date any
consent or governmental permit necessary to allow (i) the transfer of any of the
North Texas Assets to the Partnership Group on the Closing Date or (ii) any such
North Texas Assets to cross the roads, waterways, railroads and other areas upon
which any such North Texas Assets are located as of the Closing Date, and any such
failure specified in such clause (ii) renders the Partnership Group unable to use or
operate the North Texas Assets in substantially the same manner that the North Texas
Assets were owned and operated by Targa and its Affiliates immediately prior to the
Closing Date as described in the Registration Statement;

     (iii) all federal, state and local income tax liabilities attributable to the
ownership or operation of the North Texas Assets prior to the Closing Date,
including any such income tax liabilities of Targa and its Affiliates that may
result from the consummation of the formation transactions for the Partnership Group
occurring on or prior to the Closing Date; and

     (iv) all pending legal actions as of the Closing Date against one or more
Partnership Group Members involving or otherwise relating to the North Texas Assets;

provided, however, that, in the case of clauses (i), (ii) and (iv) above, such indemnification
obligations shall survive for three (3) years from the Closing Date; and that in the case of clause
(iii) above, such indemnification obligations shall survive after the expiration of any applicable
statute of limitations;

provided, further, that in the case of clauses (i), (ii), (iii) and (iv) above, such
indemnification shall not include indemnity for Losses reserved on the books of the Partnership
Group as of the Closing Date;

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provided, further, no claims may be made against Targa for indemnification pursuant to Section 3.2
unless the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group or
Partnership Indemnitees exceed $250,000, after such time Targa shall be liable for the full amount
of such claims.

            (g) In addition to and not in limitation of the indemnification provided under this Article
III, the Partnership Group shall indemnify, defend, and hold harmless Targa and its Affiliates,
other than any Partnership Group Member, from and against any Losses suffered or incurred by Targa
and its Affiliates, other than any Partnership Group Member, by reason of or arising out of events
and conditions associated with the operation of the North Texas Assets that occurs on or after the
Closing Date except to the extent that the Partnership Group is indemnified with respect to any
such Losses under Section 3.2(a).

     f. Indemnification Procedures.

            (h) The Indemnified Party agrees that within a reasonable period of time after it becomes
aware of facts giving rise to a claim for indemnification pursuant to this Article III, they will
provide notice thereof in writing to the Indemnifying Party specifying the nature of and specific
basis for such claim; provided, however, that the Indemnified Party shall not submit claims more
frequently than once a calendar quarter (or twice in the case of the last calendar quarter prior to
the expiration of the applicable indemnity coverage under this Agreement).

            (i) 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 set forth in this Article III, including, without limitation, the
selection of counsel, determination of whether to appeal any decision of any court or similar
authority and the settling of any such matter or any issues relating thereto; provided, however,
that no such settlement shall be entered into without the consent (which consent shall not be
unreasonably withheld, conditioned or delayed) of the Indemnified Party unless it includes a full
release of the Indemnified Party from such matter or issues, as the case may be.

            (j) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in this
Article III, including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, 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 the making available to
the Indemnifying Party of any employees 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 3.3. In no event shall the obligation of the
Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately
preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and
pay for counsel in connection with the defense of any claims covered by the indemnification set
forth in this Article III; provided, however, that the Indemnified Party may, at its own option,

-8 

 

cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying
Party agrees to keep any such counsel hired by the Indemnified Party reasonably informed as to the
status of any such defense, but the Indemnifying Party shall have the right to retain sole control
over such defense.

            (k) In determining the amount of any loss, cost, damage or expense 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 Party, and such
correlative insurance benefit shall be net of any incremental insurance premium that becomes due
and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by
the Indemnified Party under contractual indemnities from third Persons.

ARTICLE IV

Miscellaneous

            g. Choice of Law; Submission to Jurisdiction.

     This Agreement shall be subject to and governed by the laws of the State of Texas, excluding
any conflicts-of-law rule or principle that might refer the construction or interpretation of this
Agreement to the laws of another state. Each Party hereby submits to the jurisdiction of the state
and federal courts in the State of Texas and to venue in Houston, Texas.

            h. Notice.

     All notices or requests or consents provided for by, or permitted to be given pursuant to,
this Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the Person to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by telecopier or telegram to such Party.
Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by
telegram or telecopier shall be effective upon actual receipt if received during the recipient’s
normal business hours or at the beginning of the recipient’s next business day after receipt if not
received during the recipient’s normal business hours. All notices to be sent to a Party pursuant
to this Agreement shall be sent to or made at the address set forth below or at such other address
as such Party may stipulate to the other Parties in the manner provided in this Section 4.2.

     if to Targa:

Targa Resources, Inc.

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: General Counsel

     if to the Partnership Entities:

Targa Resources Partners LP

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: General Counsel

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            i. Entire Agreement.

     This Agreement constitutes the entire agreement of the Parties relating to the matters
contained herein, superseding all prior contracts or agreements, whether oral or written, relating
to the matters contained herein.

            j. Effect of Waiver or Consent.

     No waiver or consent, express or implied, by any Party to or of any breach or default by any
Person in the performance by such Person of its obligations hereunder shall be deemed or construed
to be a consent or waiver to or of any other breach or default in the performance by such Person of
the same or any other obligations of such Person hereunder.

            k. Amendment or Modification.

     This Agreement may be amended or modified from time to time only by the written agreement of
all the Parties hereto; provided, however, that the Partnership may not, without the prior approval
of the Conflicts Committee, agree to any amendment or modification of this Agreement that, in the
reasonable discretion of the General Partner, will adversely affect the holders of Common Units.
Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment”
or an “Addendum” to this Agreement.

            l. Assignment.

     No Party shall have the right to assign any of its rights or obligations under this Agreement
without the consent of the other Parties hereto.

            m. Counterparts.

     This Agreement may be executed in any number of counterparts with the same effect as if all
signatory parties had signed the same document. All counterparts shall be construed together and
shall constitute one and the same instrument.

            n. Severability.

     If any provision of this Agreement shall be held invalid or unenforceable by a court or
regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full
force and effect.

            o. Further Assurances.

     In connection with this Agreement and all transactions contemplated by this Agreement, each
signatory party hereto agrees to execute and deliver such additional documents and instruments and
to perform such additional acts as may be necessary or appropriate to effectuate, carry out and
perform all of the terms, provisions and conditions of this Agreement and all such transactions.

            p. Rights of Limited Partners.

     The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and
no Limited Partner of the Partnership shall have the right, separate and apart from the
Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to
comply with the terms of this Agreement.

            q. Successors.

     This Agreement shall bind and inure to the benefit of the Parties and to their respective
successors and assigns.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the date
first set forth above.

	 	 	 	 	 
	 	TARGA RESOURCES, INC.

 	 
	 	By:  	 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	TARGA RESOURCES LLC

 	 
	 	By:  	 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	TARGA RESOURCES GP LLC

 	 
	 	By:  	 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	TARGA RESOURCES PARTNERS LP

 	 
	 	By:  	Targa Resources GP LLC
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Rene R. Joyce                       	 
	 	 	Chief Executive Officer 	 
	 

[Signature Page to the Amended and Restated Omnibus Agreement]

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