Document:

Exhibit 10.1

 

PURCHASE AGREEMENT

 

$300,000,000

Archrock Partners, L.P.

Archrock Partners Finance Corp.

 

6.250% Senior Notes due 2028

 

December 14, 2020

 

RBC Capital Markets, LLC

 

As Representative of the

several Initial Purchasers listed

in Schedule 1 hereto

 

c/o RBC Capital Markets, LLC

200 Vesey Street

New York, New York 10281-8098

 

Ladies and Gentlemen:

 

Archrock Partners,
L.P., a Delaware limited partnership (the “Partnership”), and Archrock Partners Finance Corp., a Delaware
corporation (“Finance Corp” and, together with the Partnership, the “Issuers”),
propose, upon the terms and conditions set forth in this agreement (this “Agreement”), to issue and sell
to the several initial purchasers listed in Schedule 1 hereto (the “Initial Purchasers”),
for whom you are acting as representative (the “Representative”), $300,000,000 aggregate principal amount
of the Issuers’ 6.250% Senior Notes due 2028 (the “Notes”).

 

Archrock General Partner,
L.P., a Delaware limited partnership (the “General Partner”), is the sole general partner of the Partnership.
Archrock GP LLC, a Delaware limited liability company (“GP LLC”), is the sole general partner of the
General Partner. Each of the Issuers and the Guarantors (as defined below) are sometimes individually referred to herein as an
 “Archrock Entity,” and they are sometimes collectively referred to herein as the “Archrock
Entities.”

 

The Securities will
be issued pursuant to an Indenture, dated as of December 20, 2019 (the “Indenture”), among the Issuers,
Archrock, Inc., a Delaware corporation (the “Parent”), as well as the other guarantors listed in Schedule 2
hereto (such guarantors, together with the Parent, the “Guarantors”), and Wells Fargo Bank, National
Association, as trustee (the “Trustee”), and will be guaranteed on an unsecured senior basis by the Guarantors
(the “Guarantees” and, together with the Notes, the “Securities”). The Issuers
have previously issued $500,000,000 principal amount of their 6.250% Senior Notes due 2028 pursuant to the Indenture (the “Existing
Notes”). The Notes constitute “Additional Notes” under the Indenture. The Notes will have identical terms
to the Existing Notes and will be treated as a single class of notes with the Existing Notes for all purposes under the Indenture.

 

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This Agreement, the
Securities and the Indenture (including the Guarantees set forth therein) are referred to herein as the “Transaction
Documents.”

 

The Issuers and the
Guarantors hereby confirm their agreement with the several Initial Purchasers concerning the purchase and resale of the Notes,
as follows:

 

1.                 
Offering Memorandum and Transaction Information.

 

The Securities will
be sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the “Securities
Act”), in reliance upon an exemption therefrom. The Issuers and the Guarantors have prepared a preliminary offering
memorandum dated December 14, 2020 (the “Preliminary Offering Memorandum”) and will prepare an offering
memorandum dated the date hereof (the “Offering Memorandum”) setting forth information concerning the
Issuers, the Guarantors and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the Offering
Memorandum will be, delivered by the Issuers to the Initial Purchasers pursuant to the terms of Agreement. Each of the Issuers
hereby confirms that it has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale Information (as defined
below) and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers in the
manner contemplated by this Agreement. References herein to the Preliminary Offering Memorandum, the Time of Sale Information and
the Offering Memorandum shall be deemed to refer to and include any document incorporated by reference therein prior to the Time
of Sale, and any reference to “amend,” “amendment” or “supplement” with respect to the Preliminary
Offering Memorandum or the Offering Memorandum shall be deemed to refer to and include any documents filed after such date and
incorporated by reference therein. Capitalized terms used but not defined herein shall have the meanings given to such terms in
the Preliminary Offering Memorandum.

 

At or prior to the
time when sales of the Securities were first made (the “Time of Sale”), the Issuers had prepared the
following information (collectively, the “Time of Sale Information”): the Preliminary Offering Memorandum,
as supplemented and amended by the written communications listed on Annex A hereto.

 

2.                 
Purchase and Resale of the Securities.

 

(a)                The
Issuers agree to issue and sell the Securities to the several Initial Purchasers as provided in this Agreement, and each Initial
Purchaser, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth
herein, agrees, severally and not jointly, to purchase from the Issuers the respective principal amount of Securities set forth
opposite such Initial Purchaser’s name in Schedule 1 hereto at a price equal to 103.5% of the principal amount
thereof plus accrued interest from October 1, 2020 to the Closing Date (as defined below). The Partnership will not be obligated
to deliver any of the Securities except upon payment for all the Securities to be purchased as provided herein.

 

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(b)              
 The Issuers understand that the Initial Purchasers intend to offer the Securities for resale on the terms set forth in
the Time of Sale Information. Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that:

 

(i)                
it is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act (a “QIB”)
and an accredited investor within the meaning of Rule 501(a) of Regulation D under the Securities Act (“Regulation
D”);

 

(ii)                it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities by
means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner
involving a public offering within the meaning of Section 4(a)(2) of the Securities Act; and

 

(iii)              
it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities as
part of their initial offering except:

 

(A)            
to persons whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A under the Securities Act (“Rule
144A”) and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser
of the Securities is aware that such sale is being made in reliance on Rule 144A; or

 

(B)             
in accordance with the restrictions set forth in Annex C hereto.

 

(c)              
Each Initial Purchaser acknowledges and agrees that the Issuers and, for purposes of the “no registration” opinions
to be delivered to the Initial Purchasers pursuant to Sections 6(f) and 6(g), counsel for the Issuers and counsel
for the Initial Purchasers, respectively, may rely upon the accuracy of the representations and warranties of the Initial Purchasers,
and compliance by the Initial Purchasers with their agreements, contained in paragraph (b) above (including Annex C
hereto), and each Initial Purchaser hereby consents to such reliance.

 

(d)              
The Issuers acknowledge and agree that the Initial Purchasers may offer and sell Securities to or through any affiliate
of an Initial Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser.

 

(e)              
Payment for and delivery of the Securities will be made at the offices of Vinson & Elkins L.L.P. at 10:00 A.M., New
York City time, on December 17, 2020, or at such other time or place on the same or such other date, not later than the fifth business
day thereafter, as the Representative and the Issuers may agree upon in writing. The time and date of such payment and delivery
is referred to herein as the “Closing Date.”

 

(f)               
Payment for the Securities shall be made by wire transfer in immediately available funds to the account(s) specified by
the Issuers to the Representative against delivery to the nominee of The Depository Trust Company (“DTC”),
for the account of the Initial Purchasers, of one or more global notes representing the Securities, with any transfer taxes payable
in connection with the sale of the Securities duly paid by the Partnership.

 

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(g)               Each of the Issuers and the Guarantors acknowledges and agrees that each Initial Purchaser is acting solely in the capacity
of an arm’s length contractual counterparty to the Issuers and the Guarantors with respect to the offering of Securities
contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary
to, or an agent of, the Issuers, the Guarantors or any other person. Additionally, neither the Representative nor any other Initial
Purchaser is advising the Issuers, the Guarantors or any other person as to any legal, tax, investment, accounting or regulatory
matters in any jurisdiction. The Issuers and the Guarantors shall consult with their own advisors concerning such matters and shall
be responsible for making their own independent investigation and appraisal of the transactions contemplated hereby, and the Initial
Purchasers shall have no responsibility or liability to the Issuers or the Guarantors with respect thereto. Any review by the Representative
or any Initial Purchaser of the Issuers, the Guarantors, and the transactions contemplated hereby or other matters relating to
such transactions will be performed solely for the benefit of the Representative or such Initial Purchaser, as the case may be,
and shall not be on behalf of the Issuers, the Guarantors or any other person.

 

3.                 Representations
and Warranties of the Archrock Entities. Each of the Issuers and Guarantors, jointly and severally, hereby represent and
warrant to each Initial Purchaser that:

 

(a)              
No Registration Required. Subject to compliance by the Initial Purchasers with the representations and warranties
set forth in Section 2(b) hereof and with the procedures set forth in Section 2 hereof, it is not necessary
in connection with the offer, sale and delivery of the Securities to the Initial Purchasers and to each subsequent purchaser in
the manner contemplated by this Agreement and the Offering Memorandum, to register the Securities under the Securities Act or to
qualify the Indenture under the Trust Indenture Act of 1939 (the “Trust Indenture Act,” which term, as
used herein, includes the rules and regulations of the Securities and Exchange Commission (the “Commission”)
promulgated thereunder).

 

(b)              No
Integration of Offerings or General Solicitation. None of the Issuers, their respective affiliates (as such term is
defined in Rule 501 under the Securities Act) (each, an “Affiliate”) or any person acting on its or
any of their behalf (other than the Initial Purchasers, as to whom the Issuers and the Guarantors make no representation or
warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly,
solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security
that is or would be integrated with the sale of the Securities in a manner that would require the Securities to be registered
under the Securities Act. None of the Issuers, their respective Affiliates or any person acting on its or any of their behalf
(other than the Initial Purchasers, as to whom the Issuers and the Guarantors make no representation or warranty) has engaged
or will engage, in connection with the offering of the Securities, in any form of general solicitation or general advertising
within the meaning of Rule 502 under the Securities Act or in any manner involving a public offering within the meaning of
Section 4(a)(2) of the Securities Act. With respect to those Securities sold in reliance upon Regulation S, (i) none of the
Issuers, their respective Affiliates or any person acting on its or their behalf (other than the Initial Purchasers, as to
whom the Issuers and the Guarantors make no representation or warranty) has engaged or will engage in any directed selling
efforts within the meaning of Regulation S and (ii) each of the Issuers and their respective Affiliates and any person acting
on its or their behalf (other than the Initial Purchasers, as to whom the Issuers and the Guarantors make no representation
or warranty) has complied and will comply with the offering restrictions set forth in Regulation S.

 

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(c)              
Eligibility for Resale under Rule 144A. The Securities are eligible for resale pursuant to Rule 144A and will
not be, at the Closing Date, of the same class as securities listed on a national securities exchange registered under Section
6 of the Exchange Act or quoted in a U.S. automated interdealer quotation system; and each of the Preliminary Offering Memorandum
and the Offering Memorandum, as of its respective date, contains or will contain all the information that, if requested by a prospective
purchaser of the Securities, would be required to be provided to such prospective purchaser pursuant to Rule 144(A)(d)(4) under
the Securities Act.

 

(d)              The
Time of Sale Information and Offering Memorandum. Neither the Time of Sale Information, as of the Time of Sale, nor the
Offering Memorandum, as of its date or (as amended or supplemented in accordance with Section 4(b), as applicable)
as of the Closing Date, contains or represents any untrue statement of a material fact or omits to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided
that this representation, warranty and agreement shall not apply to statements in or omissions from the Time of Sale Information,
the Offering Memorandum or any amendment or supplement thereto made in reliance upon and in conformity with information furnished
to the Issuers in writing by any Initial Purchaser through the Representative expressly for use in the Time of Sale Information,
the Offering Memorandum or amendment or supplement thereto, as the case may be. The Time of Sale Information contains, and the
Offering Memorandum will contain, all the information specified in, and meeting the requirements of, Rule 144A.

 

(e)              
Issuer Additional Written Communications. The Issuers have not prepared, made, used, authorized, approved
or distributed and will not prepare, make, use, authorize, approve or distribute any “written communication” (as defined
in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Securities other
than (i) the Time of Sale Information, (ii) the Offering Memorandum and (iii) any electronic road show or other written communications,
in each case used in accordance with Section 4(b). Each such communication by the Issuers or their respective agents
and representatives (other than the Initial Purchasers in their capacity as such) pursuant to clause (iii) of the preceding sentence
(each, an “Issuer Additional Written Communication”), when taken together with the Time of Sale Information,
did not as of the Time of Sale, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that this representation, warranty and agreement shall not apply to statements in or omissions from each
such Issuer Additional Written Communication made in reliance upon and in conformity with information furnished to the Issuers
in writing by any Initial Purchaser through the Representative expressly for use in any Issuer Additional Written Communication.

 

(f)                Incorporated
Documents. The documents incorporated or deemed to be incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum at the time they were or hereafter are filed with the Commission (collectively, the
 “Incorporated Documents”) complied and will comply in all material respects with the requirements
of the Exchange Act, and the rules and regulations of the Commission thereunder, and did not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading.

 

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(g)              
The Purchase Agreement. This Agreement has been duly authorized, executed and delivered by the Issuers and
the Guarantors.

 

(h)              
Authorization of the Notes and the Guarantees. The Notes to be purchased by the Initial Purchasers from the
Issuers will, on the Closing Date, be in substantially the form contemplated by the Indenture, have been duly authorized for issuance
and sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly executed by the Issuers and,
when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase price therefor, will
constitute valid and binding obligations of the Issuers, enforceable against the Issuers in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to or affecting the rights
and remedies of creditors generally or by general equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law) (collectively, the “Enforceability Exceptions”) and will be entitled
to the benefits of the Indenture. The Guarantees of the Notes have been duly authorized for issuance pursuant to this Agreement
and the Indenture; when the Notes have been authenticated in the manner provided for in the Indenture and issued and delivered
against payment of the purchase price therefor, the Guarantees of the Notes will constitute valid and binding agreements of the
Guarantors, enforceable against the Guarantors in accordance with their terms, subject to the Enforceability Exceptions, and will
be entitled to the benefits of the Indenture.

 

(i)                Authorization
of the Indenture. The Indenture has been duly authorized, executed and delivered by the Issuers and the Guarantors and
constitutes a valid and binding agreement of the Issuers and the Guarantors, enforceable against the Issuers and the Guarantors
in accordance with its terms, except as the enforcement thereof may be limited by the Enforceability Exceptions.

 

(j)                Description
of the Transaction Documents. The Transaction Documents (excluding the Indenture) will conform and the Indenture conforms
in all material respects to the respective statements relating thereto contained in the Time of Sale Information and the Offering
Memorandum.

 

(k)               No
Material Adverse Change. Except as otherwise disclosed in the Time of Sale Information and the Offering Memorandum
(exclusive of any amendment or supplement thereto), subsequent to the respective dates as of which information is given in
the Time of Sale Information and the Offering Memorandum (exclusive of any amendment or supplement thereto): (i) there has
been no material adverse change, or any development involving a prospective material adverse change, in the condition,
financial or otherwise, or in the earnings, business affairs or business prospects of any of the Archrock Entities, whether
or not arising in the ordinary course of business, that would, individually or in the aggregate, reasonably be expected to
have a material adverse effect on the condition, financial or otherwise, or in the earnings, business affairs or business
prospects of the Archrock Entities, considered as one enterprise (any such change is called a “Material Adverse
Change”); (ii) the Archrock Entities, considered as one entity, have not incurred any material liability or
obligation, indirect, direct or contingent, not in the ordinary course of business nor entered into any material transaction
or agreement not in the ordinary course of business; and (iii) there has been no dividend or distribution of any kind
declared, paid or made by any Archrock Entity on any class of capital stock or other ownership interest or repurchase or
redemption by any Archrock Entity of any class of capital stock or other ownership interest.

 

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(l)                Independent
Accountants. Deloitte & Touche LLP has audited certain historical consolidated financial statements of the Parent
and is an independent registered public accounting firm with respect to the Parent within the applicable rules and regulations
adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities
Act.

 

(m)              Preparation
of the Financial Statements. The historical financial statements included or incorporated by reference in the Offering
Memorandum, together with the related schedules and notes, comply as to form in all material respects with the requirements of
Regulation S-X under the Securities Act and present fairly in all material respects the financial condition, results of operations,
cash flows and partners’ capital/net parent equity, as applicable, of the Partnership, at the dates and for the periods
specified and have been prepared in conformity with generally accepted accounting principles as applied in the United States (“GAAP”)
applied on a consistent basis throughout the periods involved. The other financial information included or incorporated by reference
in the Offering Memorandum has been derived from the accounting records of the Archrock Entities and presents fairly in all material
respects the information shown thereby. All disclosures included or incorporated by reference in the Offering Memorandum regarding
 “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with
Item 10 of Regulation S-K of the Securities Act, to the extent applicable. The interactive data in eXtensible Business Reporting
Language incorporated by reference in the Offering Memorandum presents fairly the information called for in all material respects
and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

(n)              
Formation and Qualification. Each of the Archrock Entities has been duly incorporated or formed, as applicable,
and is validly existing as a corporation, limited partnership or limited liability company, as applicable, and is in good standing
under the laws of its jurisdiction of its incorporation or formation, as applicable, and has full corporate, partnership or limited
liability company power and authority necessary to own, lease and operate its properties that it owns, leases or operates and to
conduct its business as described in the Offering Memorandum and to enter into and perform its obligations under each of the Transaction
Documents to which it is a party. Each of the Archrock Entities is duly qualified to transact business and is in good standing
as a foreign limited partnership or foreign limited liability company, as the case may be, in each other jurisdiction in which
such qualification is required, for the ownership or leasing of property or the conduct of business, except where the failure to
so qualify or to be in good standing would not, individually or in the aggregate, result in a Material Adverse Change or subject
the limited partners of the Partnership to any material liability or disability.

 

(o)               Power
and Authority to Act as a General Partner. The General Partner has full power and authority to act as general partner
of the Partnership in all material respects as described in the Offering Memorandum. GP LLC has full power and authority to
act as general partner of the General Partner in all material respects as described in the Offering Memorandum.

 

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(p)              Corporate Structure. The Issuers and each Guarantor, other than the Parent, is a wholly owned subsidiary,
direct or indirect, of the Parent. The Parent owns all of the issued and outstanding membership interests of GP LLC and Archrock
GP LP LLC, a Delaware limited liability company (“Archrock GP”); such membership interests have been
duly authorized and validly issued in accordance with the limited liability company agreements of GP LLC and of Archrock GP, as
applicable, and are fully paid (to the extent required by such limited liability company agreements) and nonassessable (except
as such nonassessability may be affected by matters described in Section 18-607 of the Delaware Limited Liability Company Act);
and the Parent owns such membership interests free and clear of all liens, encumbrances, security interests, charges or claims
(collectively, “Liens”), other than those arising under that certain Credit Agreement, dated as of March
30, 2017, among Archrock Partners Operating LLC, as borrower, the guarantors party thereto, the lenders party thereto and the administrative
agents, lenders and other agents party thereto (as amended by the Amendment No. 1, dated February 23, 2018 and Amendment No. 2,
dated November 8, 2019, the “Partnership Credit Agreement”).

 

(q)              Ownership of General Partner Interest in the General Partner. GP LLC is the sole general partner of the General
Partner with a 0.001% general partner interest in the General Partner; such general partner interest has been duly authorized and
validly issued in accordance with the partnership agreement of the General Partner (the “GP Partnership Agreement”);
and GP LLC owns such general partner interest free and clear of all Liens other than those arising under the Partnership Credit
Agreement.

 

(r)               Ownership of the Limited Partner Interests in the General Partner. Archrock GP owns a 99.999% limited partner
interest in the General Partner; such limited partner interest has been duly authorized and validly issued in accordance with the
GP Partnership Agreement and is fully paid (to the extent required under the GP Partnership Agreement) and nonassessable (except
as such nonassessability may be affected by matters described in Sections 17-303, 17-607 and 17-804 of the Delaware Revised Uniform
Limited Partnership Act); and Archrock GP owns such limited partner interest free and clear of all Liens other than those arising
under the Partnership Credit Agreement.

 

(s)              Ownership of the General Partner Interest in the Partnership. The General Partner is the sole general partner
of the Partnership with a 1.9852% general partner interest in the Partnership; such general partner interest has been duly authorized
and validly issued in accordance with the partnership agreement of the Partnership (the “Partnership Agreement”);
and the General Partner owns such general partner interest free and clear of all Liens (except for restrictions on transferability
as described in the Offering Memorandum or the Partnership Agreement).

 

(t)                Ownership
of Finance Corp. The Partnership owns 100% of the capital stock of Finance Corp; such capital stock has been duly authorized
and validly issued in accordance with the charter and bylaws of Finance Corp (the “Finance Corp Charter Documents”)
and is fully paid and nonassessable; and the Partnership owns such capital stock free and clear of all Liens (except for restrictions
on transferability as described in the Offering Memorandum or the Finance Corp Charter Documents) other than those arising under
the Partnership Credit Agreement.

 

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(u)              
No Other Subsidiaries. Other than (i) the Parent’s direct and indirect interests in the Issuers and
the Guarantors, (ii) GP LLC’s 0.001% general partner interest in the General Partner, (iii) the General Partner’s 1.9852%
general partner interest in the Partnership and (iv) the Partnership’s ownership of (A) 100% of the capital stock of Finance
Corp, (B) 100% of the membership interests of Archrock Partners Operating LLC and (C) 100% of the membership interests of Archrock
Partners Leasing LLC, none of the Parent, GP LLC, the General Partner or the Issuers owns, directly or indirectly, any equity or
long-term debt securities of any corporation, partnership, limited liability company, joint venture, association or other entity.

 

(v)              
No Conflicts. None of the issuance or sale of the Notes, the Guarantees, the execution, delivery and performance
by the Issuers and the Guarantors of the Transaction Documents, the application of the proceeds from the sale of the Notes as described
under the caption “Use of Proceeds” in each of the Time of Sale Information and the Offering Memorandum or the consummation
of any other transactions contemplated hereby and thereby, (i) conflicts or will conflict with or constitutes or will constitute
a violation of the Organizational Documents of any of the Archrock Entities, (ii) conflicts or will conflict with or constitutes
or will constitute a breach or violation of, or a default (or an event which, with notice or lapse of time or both, would constitute
such a default) under, any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which
any of the Archrock Entities is a party or by which any of them or any of their respective properties may be bound (including,
without limitation, the Partnership Credit Agreement), (iii) violates or will violate any statute, law or regulation or any order,
judgment, decree or injunction of any court or governmental agency or body directed to any of the Archrock Entities or any of their
properties in a proceeding to which any of them or their property is a party, or (iv) results or will result in the creation or
imposition of any Lien upon any property or assets of any of the Archrock Entities (other than Liens created pursuant to the Partnership
Credit Agreement), which conflicts, breaches, violations, defaults or Liens, in the case of clauses (ii), (iii) or (iv), could,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Change or could reasonably be expected
to materially impair the ability of any of the Issuers and the Guarantors to consummate the transactions provided for in the Transaction
Documents. For purposes of this Agreement, “Organizational Documents” means (A) in the case of a corporation,
its charter and bylaws, (B) in the case of a limited or general partnership, its partnership certificate, certificate of partnership
or similar organizational document and its partnership agreement and (C) in the case of a limited liability company, its articles
of organization, certificate of formation or similar organizational documents and its operating agreement, limited liability company
agreement, membership agreement or other similar agreement.

 

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(w)             No
Violations. No permit, consent, approval, authorization, order, registration, filing or qualification of or with any
court, governmental agency or body, domestic or foreign, having jurisdiction over any of the Archrock Entities or any of
their properties or assets is required in connection with the issuance and sale of the Notes and the Guarantees, the
execution, delivery and performance by the Issuers and the Guarantors of the Transaction Documents, the application of the
proceeds from the sale of the Notes as described under the caption “Use of Proceeds” in each of the Time of Sale
Information and the Offering Memorandum or the consummation of any other transactions contemplated hereby and thereby, except
(i) for such consents that have been, or prior to the Closing Date will be, obtained, (ii) such consents as may be required
under state securities or “Blue Sky” laws in connection with the purchase and distribution of the Notes by the
Initial Purchasers (iii) such filings required to be made under the Exchange Act, (iv) such consents that, if not obtained,
would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Change or could not
reasonably be expected to materially impair the ability of any of the Issuers or the Guarantors to perform their obligations
under the Transaction Documents, (v) for such consents that if not obtained would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Change and (vi) as disclosed in the Time of Sale Information and the
Offering Memorandum.

 

(x)              
No Defaults. None of the Archrock Entities is in (i) violation of its Organizational Documents, or of any
statute, law, rule or regulation, or any judgment, order, injunction or decree of any court, governmental agency or body or arbitrator
having jurisdiction over any of the Archrock Entities or any of their properties or assets or (ii) breach, default (or an event
that, with notice or lapse of time or both, would constitute such an event), or violation in the performance of any obligation,
agreement or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument
to which it is a party or by which it or any of its properties may be bound, which breach, default or violation would, if continued,
individually or in the aggregate, result in a Material Adverse Change or materially impair the ability of any of the Issuers or
the Guarantors to consummate the transactions provided for in the Transaction Documents.

 

(y)              Authorization, Execution, Delivery and Enforceability of Certain Agreements. The Organizational Documents
of each of the Archrock Entities have been duly authorized, executed and delivered by the parties thereto, and are valid and legally
binding agreements of such parties, enforceable against such parties in accordance with their terms; provided that the enforceability
thereof may be limited by (i) the Enforceability Exceptions and (ii) public policy and an implied covenant of good faith and fair
dealing.

 

(z)              
Absence of Proceedings. There is no action, demand, claim, suit, arbitration, proceeding, inquiry or investigation
before or brought by any court or governmental agency or body, domestic or foreign, now pending or, to the knowledge of the Issuers
and each of the Guarantors, threatened against or affecting the Archrock Entities, that is required to be disclosed in the Offering
Memorandum (other than as disclosed or incorporated by reference therein), or that, individually or in the aggregate, would reasonably
be expected to result in a Material Adverse Change or would materially impair the ability of any of the Issuers to consummate the
transactions provided for in the Transaction Documents.

 

(aa)            Intellectual
Property Rights. Except for such exceptions that would not, individually or in the aggregate, reasonably be expected
to result in a Material Adverse Change, (i) each Archrock Entity owns or possesses, has the right to use or can acquire on
reasonable terms, adequate patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and
other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service
marks, trade names or other intellectual property (collectively, “Intellectual Property”) necessary
to carry on the business now operated by it and (ii) none of the Archrock Entities have received any notice and is otherwise
aware of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property or of any
facts or circumstances that would render any Intellectual Property invalid or inadequate to protect the interest of the
Archrock Entities.

 

    10 

     

    

 

(bb)          
All Necessary Permits, etc. The Archrock Entities possess, directly or indirectly, such permits, licenses,
approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate
federal, state, local or foreign regulatory agencies or bodies necessary to own or lease their respective properties and to conduct
their respective businesses, except where the failure so to possess would not, individually or in the aggregate, result in a Material
Adverse Change; the Archrock Entities are in compliance with the terms and conditions of all such Governmental Licenses, except
where the failure to so comply would not, individually or in the aggregate, result in a Material Adverse Change; all of the Governmental
Licenses are valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such
Governmental Licenses to be in full force and effect would not, individually or in the aggregate, result in a Material Adverse
Change; and the Archrock Entities have not received any notice of proceedings relating to the revocation or modification of any
such Governmental Licenses that, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would result in a Material Adverse Change.

 

(cc)           
Title to Properties. Except for such exceptions that would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Change, the Archrock Entities have good title to all properties owned by them, in each
case, free and clear of all Liens except (i) such Liens as are described in the Offering Memorandum, (ii) any Liens arising under
the Partnership Credit Agreement or (iii) such Liens as do not, individually or in the aggregate, materially affect the value of
such property and do not interfere with the use made or proposed to be made of such property by the Archrock Entities.

 

(dd)          
Tax Law Compliance. Each of the Archrock Entities has filed (or has obtained extensions with respect to) all
material federal, state and local income and franchise tax returns required to be filed through the date of this Agreement, which
returns are correct and complete in all material respects, and has timely paid all taxes due thereon, other than those (i) that
are being contested in good faith and for which adequate reserves have been established in accordance with GAAP or (ii) that if
not paid would not, individually or in the aggregate, have a Material Adverse Change.

 

(ee)           
Archrock Entities Not an “Investment Company”. None of the Archrock Entities is now, and after
the sale of the Notes to be sold by the Issuers hereunder and the application of the net proceeds from such sale as described in
the Time of Sale Information and the Offering Memorandum under the caption “Use of Proceeds” will be, an “investment
company” or a company “controlled by” an “investment company” within the meaning of the Investment
Company Act of 1940, as amended (the “Investment Company Act”).

 

(ff)              Insurance.
The Archrock Entities are entitled to the benefits of insurance, with financially sound and reputable insurers, in such
amounts and covering such risks as is generally maintained by companies of established repute engaged in the same or similar
business, and all such insurance is in full force and effect. The Archrock Entities have no reason to believe that the Parent
or its affiliates will not be able (i) to renew such existing insurance coverage as and when such policies expire or (ii) to
obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct such business as now
conducted and at a cost that would not, individually or in the aggregate, result in a Material Adverse Change.

 

    11 

     

    

 

(gg)            No Price Stabilization or Manipulation. None of the Issuers or any of the Guarantors has taken, directly or
indirectly, any action designed to or that might be reasonably expected to cause or result in stabilization or manipulation of
the price of any security of the Issuers to facilitate the sale or resale of the Securities.

 

(hh)          
Solvency. Immediately after the consummation of the transactions contemplated by this Agreement, (i) the fair
market value and present fair saleable value of the assets of the Issuers and the Guarantors, on a consolidated basis, will exceed
the sum of their stated liabilities and identified contingent liabilities, and (ii) the Issuers and the Guarantors, on a consolidated
basis, will not be (A) left with unreasonably small capital with which to carry on their business as it is proposed to be conducted
or (B) unable to pay the probable liabilities on their debts as they become absolute and matured.

 

(ii)              Accounting
Systems. The Archrock Entities maintain a system of internal accounting controls sufficient to provide reasonable assurances
that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability
for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization;
(iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences and (v) the interactive data in eXtensible Business Reporting Language incorporated by
reference in the Offering Memorandum fairly presents the information called for in all material respects and is prepared in accordance
with the Commission’s rules and guidelines applicable thereto. The Archrock Entities keep and maintain accurate books and
records.

 

(jj)             
Disclosure Controls and Procedures. The Parent has established and maintains disclosure controls and procedures
(as such term is defined in Rules 13a-15 and 15d-15 under the Exchange Act); such disclosure controls and procedures are designed
to ensure that material information relating to the Parent (including its subsidiaries) is made known to the Chief Executive Officer
and Chief Financial Officer of such entity, and such disclosure controls and procedures are reasonably effective to perform the
functions for which they were established subject to the limitations of any such control system; since the date of the most recent
audited financial statements of such entity; the Parent does not have any material weaknesses in internal controls, and since the
date of the most recent audited financial statements of the Parent, there has been no fraud, whether or not material, that involves
management or other employees who have a significant role in the Parent’s internal controls. The Parent is otherwise in compliance
in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act of 2002, as amended, and the rules
and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”).

 

(kk)           Regulations
T, U, X. Neither the Issuers nor any of the Guarantors nor any of their respective subsidiaries nor any agent thereof
acting on their behalf has taken, and none of them will take, any action that might cause this Agreement or the issuance or
sale of the Securities to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve
System.

 

    12 

     

    

 

(ll)             
Environmental Matters. Except for any such matter as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Change or as disclosed in the Time of Sale Information and the Offering Memorandum, each
of the Archrock Entities (x)(A) is in compliance with and has not violated any applicable federal, state or local statutes, laws,
rules, regulations, judgments, orders, decrees, ordinances, codes or other legally binding requirements relating to the prevention
of pollution or protection of the environment (including natural resources) or human health and safety (to the extent such health
or safety relates to exposure to Hazardous Materials, as defined below), or imposing liability or standards of conduct concerning
any Hazardous Materials (“Environmental Laws”), (B) has received and is in compliance with and has not
violated any terms and conditions of permits, licenses, authorizations or other approvals required under Environmental Laws to
conduct its business as it is currently being conducted, and (C) has not received written notice of any pending or threatened violation
of, or liability under, any Environmental Law and, to the knowledge of the Issuers, there is no event or condition that would reasonably
be expected to result in the receipt of any such notice, and (y) there are no costs or liabilities arising under Environmental
Laws with respect to the operations of the Archrock Entities. Except as disclosed in the Time of Sale Information and the Offering
Memorandum, (A) there is no proceeding that is pending, or that is known to be contemplated, against the Archrock Entities under
any Environmental Laws in which a governmental entity is also a party, other than such proceedings regarding which it is reasonably
believed no monetary sanction of $300,000 or more will be imposed, and (B) none of the Archrock Entities anticipates any obligations
arising under Environmental Laws that would result, individually or in the aggregate, in capital expenditures constituting a Material
Adverse Change. The term “Hazardous Material” means (i) any “hazardous substance” as defined
in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, (ii) any “hazardous waste”
as defined in the Resource Conservation and Recovery Act, as amended, (iii) any petroleum or petroleum product, (iv) any polychlorinated
biphenyl and (v) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material, waste or substance regulated
under or within the meaning of any Environmental Law.

 

(mm)          ERISA
Compliance. (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), for which the Partnership, the Parent or any member of
its “Controlled Group” (defined as any organization which is a member of a controlled group of corporations
within the meaning of Section 414(b) or (c) of the Internal Revenue Code of 1986, as amended (the
 “Code”)) would have any liability, other than a Multiemployer Plan (each, a
 “Plan”) has been maintained in compliance in all material respects with its terms and the
requirements of any presently applicable statutes, orders, rules and regulations, including but not limited to ERISA and the
Code; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, that would
result in a material liability has occurred with respect to any Plan excluding transactions effected pursuant to a statutory
or administrative exemption; (iii) for each Plan that is subject to the funding rules of Section 412 of the Code or Section
302 or ERISA, compliance with the minimum funding standard in Section 412 of the Code, whether or not waived, has occurred;
(iv) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred or is expected to occur,
other than an event for which the 30 day notice period is waived; and (v) neither the Partnership nor any member of the
Controlled Group has any unpaid material liability, including withdrawal liability, under Title IV of ERISA (other than
contributions to the Plan or premiums to the Pension Benefit Guaranty Corporation, in the ordinary course and without
default) in respect of a Plan (including a “Multiemployer Plan,” within the meaning of Section 4001(a)(3) of
ERISA).

 

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(nn)          
No Labor Disputes. No labor disturbance by or dispute with employees of any Archrock Entity exists or, to
the knowledge of the Issuers, is contemplated or threatened, except as would not, individually or in the aggregate, reasonably
be expected to result in a Material Adverse Change.

 

(oo)          
Related Party Transactions. No relationship, direct or indirect, exists between or among any of the Archrock
Entities or any affiliate of the Archrock Entities, on the one hand, and any director, officer, member, stockholder, customer or
supplier of the Archrock Entities or any affiliate of the Archrock Entities, on the other hand, which is required by the Securities
Act to be disclosed in a registration statement on Form S-1 which is not so disclosed in the Offering Memorandum. There are no
outstanding loans, advances (except advances for business expenses in the ordinary course of business) or guarantees of indebtedness
by the Archrock Entities or any affiliate of the Archrock Entities to or for the benefit of any of the officers or directors of
any Archrock Entity or any affiliate of any Archrock Entity or any of their respective family members.

 

(pp)            Compliance with Anti-Money Laundering Laws. The operations of the Archrock Entities are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting requirements, including those of the Currency
and Foreign Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes of all jurisdictions where
the Archrock Entities conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”),
and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving
the Archrock Entities with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Archrock Entities,
threatened.

 

(qq)          
No Unlawful Payments. Neither the Archrock Entities, nor any director, officer or employee of the Archrock
Entities nor, to the knowledge of the Archrock Entities, any agent, affiliate or other person associated with or acting on behalf
of the Archrock Entities has (i) used any corporate, company or partnership funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; (ii) made or taken an act in furtherance of an offer, promise or authorization
of any direct or indirect unlawful payment or benefit to any foreign or domestic government official or employee, including of
any government-owned or controlled entity or of a public international organization, or any person acting in an official capacity
for or on behalf of any of the foregoing, or any political party or party official or candidate for political office; (iii) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation
implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed
an offence under the Bribery Act 2010 of the United Kingdom, or any other applicable anti-bribery or anti-corruption law; or (iv)
made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without
limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. Each of the Archrock Entities has instituted,
maintains and enforces, and will continue to maintain and enforce, policies and procedures designed to promote and ensure compliance
with all applicable anti-bribery and anti-corruption laws.

 

    14 

     

    

 

(rr)             
No Conflicts with Sanctions Laws. None of the Archrock Entities nor any of the subsidiaries, directors, officers
or employees, nor, to the knowledge of the Archrock Entities, any agent, affiliate or other person associated with or acting on
behalf of the Archrock Entities is currently the subject or the target of any sanctions administered or enforced by the U.S. government,
(including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department
of State and including, without limitation, the designation as a “specially designated national” or “blocked
person”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions
authority (collectively, “Sanctions”), nor is the Parent, any of its subsidiaries or any of the Guarantors
located, organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation,
Crimea, Cuba, Iran, North Korea, Syria and Crimea (each, a “Sanctioned Country”); and neither the Issuers
nor the Parent will directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or
otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate
any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions,
(ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result
in a violation by any person (including any person participating in the transaction, whether as initial purchaser, underwriter,
advisor, investor or otherwise) of Sanctions. For the past five years, the Archrock Entities have not knowingly engaged in, are
not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or
was the subject or the target of Sanctions or with any Sanctioned Country.

 

(ss)            
Domestic Operations. The operations and activities of the Archrock Entities are, and at all times have been,
conducted within the United States of America. The Archrock Entities have no foreign operations or activities.

 

(tt)          
    Statistical and Market-Related Data. Any statistical, demographic and market-related
data included or incorporated by reference in the Offering Memorandum or the Time of Sale Information are based on or derived
from sources that the Archrock Entities believe to be reliable and accurate, and all such data included or incorporated by
reference in the Offering Memorandum or the Time of Sale Information accurately reflects the materials upon which it is based
or from which it was derived.

 

(uu)           
No Restrictions on Subsidiaries. No subsidiary of the Issuers is currently prohibited, directly or indirectly,
under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Issuers, from making
any other distribution on such subsidiary’s capital stock or equity interests, from repaying to the Issuers any loans or
advances to such subsidiary from the Issuers or from transferring any of such subsidiary’s properties or assets to the Issuers
or any other subsidiary of the Issuers.

 

(vv)           Forward-Looking
Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act) included or incorporated by reference in any of the Time of Sale Information and the Offering Memorandum
has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

 

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(ww)         
No Broker’s Fees. None of the Archrock Entities is a party to any contract, agreement or understanding
with any person (other than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser
for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Securities.

 

(xx)            
Capitalization. The Parent has the capitalization as set forth in each of the Time of Sale Information and
the Offering Memorandum under the heading “Capitalization”; and all the outstanding shares of capital stock or other
equity interests of each subsidiary of the Issuers and the Parent have been duly and validly authorized and issued, are fully paid
and non assessable and are owned directly or indirectly by the Issuers and the Parent, free and clear of all Liens other than those
arising under the Partnership Credit Agreement.

 

(yy)          
Cybersecurity; Data Protection. The Archrock Entities’ information technology assets and equipment,
computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”)
are adequate for, and operate and perform in all material respects as required in connection with the operation of the business
of the Archrock Entities as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs,
malware and other corruptants. The Archrock Entities have implemented and maintained commercially reasonable controls, policies,
procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation,
redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or
regulated data (“Personal Data”)) used in connection with their businesses, and there have been no breaches,
violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without material cost
or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the
same. The Archrock Entities are presently in material compliance with all applicable laws or statutes and all judgments, orders,
rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations
relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data
from unauthorized use, access, misappropriation or modification.

 

(zz)           
Sarbanes-Oxley Act. There is and has been no failure on the part of the Archrock Entities or any of the Archrock
Entities’ directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act, including
Section 402 related to loans and Sections 302 and 906 related to certifications.

 

(aaa)         
Certificates. Each certificate signed by any of the Archrock Entities’ officers, in their capacities
as such, delivered to the Initial Purchasers shall be deemed a representation and warranty by such Archrock Entity (and not individually
by such officer) to the Initial Purchasers with respect to the matters covered thereby.

 

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4.              
 Further Agreements of the Archrock Entities. The Archrock Entities jointly and severally covenant and agree
with each Initial Purchaser that:

 

(a)              
Delivery of Copies. The Issuers will deliver, without charge, to the Initial Purchasers as many copies of
the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum
(including all amendments and supplements thereto) as the Representative may reasonably request.

 

(b)             
Offering Memorandum, Amendments or Supplements. Before finalizing the Offering Memorandum or making or distributing
any amendment or supplement to any of the Time of Sale Information or the Offering Memorandum or filing with the Commission any
document that will be incorporated by reference therein, the Partnership will furnish to the Representative and counsel for the
Initial Purchasers a copy of the proposed Offering Memorandum or such amendment or supplement or document to be incorporated by
reference therein for review, and will not distribute any such proposed Offering Memorandum, amendment or supplement or file any
such document with the Commission to which the Representative reasonably objects.

 

(c)              
Additional Written Communications. Before making, preparing, using, authorizing, approving or referring to
any Issuer Written Communication, the Issuers and the Guarantors will furnish to the Representative and counsel for the Initial
Purchasers a copy of such written communication for review and will not make, prepare, use, authorize, approve or refer to any
such written communication to which the Representative reasonably objects.

 

(d)              
Notice to the Representative. The Partnership will advise the Representative promptly, and confirm such advice
in writing, (i) of the issuance by any governmental or regulatory authority of any order preventing or suspending the use of any
of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum or the initiation or threatening of
any proceeding for that purpose; (ii) of the occurrence of any event at any time prior to the completion of the initial offering
of the Securities as a result of which any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum
as then amended or supplemented would include any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances existing when such Time of Sale Information, Issuer
Written Communication or the Offering Memorandum is delivered to a purchaser, not misleading; and (iii) of the receipt by the Partnership
of any notice with respect to any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and the Partnership will use its reasonable best efforts to prevent
the issuance of any such order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication
or the Offering Memorandum or suspending any such qualification of the Securities and, if any such order is issued, will obtain
as soon as possible the withdrawal thereof.

 

(e)               Time
of Sale Information. If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a
result of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement the Time of Sale
Information to comply with law, the Partnership will immediately notify the Initial Purchasers thereof and forthwith prepare
and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to the Time of Sale
Information (or any document to be filed with the Commission and incorporated by reference therein) as may be necessary so
that the statements in any of the Time of Sale Information as so amended or supplemented (including such documents to be
incorporated by reference therein) will not, in the light of the circumstances under which they were made, be misleading or
so that any of the Time of Sale Information will comply with law.

 

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(f)               
Ongoing Compliance. If at any time prior to the completion of the initial offering of the Securities (i) any
event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in
the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading or (ii) it is
necessary to amend or supplement the Offering Memorandum to comply with law, the Partnership will immediately notify the Initial
Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments
or supplements to the Offering Memorandum (or any document to be filed with the Commission and incorporated by reference therein)
as may be necessary so that the statements in the Offering Memorandum as so amended or supplemented (including such document to
be incorporated by reference therein) will not, in the light of the circumstances existing when the Offering Memorandum is delivered
to a purchaser, be misleading or so that the Offering Memorandum will comply with law.

 

(g)              
Blue Sky Compliance. The Issuers will qualify the Securities for offer and sale under the securities or Blue
Sky laws of such jurisdictions as the Representative shall reasonably request and will continue such qualifications in effect so
long as required for the offering and resale of the Securities; provided that no Archrock Entity shall be required to (i) qualify
as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to
taxation in any such jurisdiction if it is not otherwise so subject.

 

(h)             
Clear Market. During the period from the date hereof through and including the date that is 90 days after
the date hereof, the Archrock Entities will not, without the prior written consent of the Representative, offer, sell, contract
to sell or otherwise dispose of any debt securities issued or guaranteed by the Archrock Entities and having a tenor of more than
one year.

 

(i)               
Use of Proceeds. The Issuers will apply the net proceeds from the sale of the Securities as described in each
of the Time of Sale Information and the Offering Memorandum under the heading “Use of proceeds.”

 

(j)               
Supplying Information. While the Securities remain outstanding and are “restricted securities”
within the meaning of Rule 144(a)(3) under the Securities Act, the Archrock Entities will, during any period in which either of
the Partnership or the Parent is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, furnish to holders
of the Securities and prospective purchasers of the Securities designated by such holders, upon the request of such holders or
such prospective purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

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(k)              
 DTC. The Issuers will assist the Initial Purchasers in arranging for the Securities to be eligible for clearance
and settlement through DTC.

 

(l)               
No Resales by the Issuers. The Issuers will not, and will not permit any of their affiliates (as defined in
Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities
purchased by the Issuers or any of their affiliates and resold in a transaction registered under the Securities Act.

 

(m)            
No Integration. Neither of the Issuers nor any of their affiliates (as defined in Rule 501(b) of Regulation
D) will, directly or through any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security
(as defined in the Securities Act), that is or will be integrated with the sale of the Securities in a manner that would require
registration of the Securities under the Securities Act.

 

(n)              
No General Solicitation or Directed Selling Efforts. None of the Issuers or any of their respective affiliates
or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no covenant is given) will (i)
solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within
the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of
the Securities Act or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will
comply with the offering restrictions requirement of Regulation S.

 

(o)             
No Stabilization. Neither the Issuers nor any of the Guarantors will take, directly or indirectly, any action
designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities.

 

5.               
Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that it
has not and will not use, authorize use of, refer to, or participate in the planning for use of, any written communication that
constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the Preliminary Offering Memorandum
and the Offering Memorandum, (ii) any written communication that contains either (a) no “issuer information” (as defined
in Rule 433(h)(2) under the Securities Act) or (b) “issuer information” that was included (including through incorporation
by reference) in the Time of Sale Information or the Offering Memorandum, (iii) any written communication listed on Annex A
or prepared pursuant to Section 4(c) (including any electronic road show) above, (iv) any written communication prepared
by such Initial Purchaser and approved by the Partnership and the Representative in advance in writing or (v) any written communication
relating to or that contains the terms of the Securities and/or other information that was included (including through incorporation
by reference) in the Time of Sale Information or the Offering Memorandum.

 

6.                  Conditions
of Initial Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase Securities on the
Closing Date as provided herein is subject to the performance by the Issuers and each of the Guarantors of their respective
covenants and other obligations hereunder and to the following additional conditions:

 

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(a)              
Representations and Warranties. The representations and warranties of the Issuers and Guarantors contained
herein shall be true and correct on the date hereof and on and as of the Closing Date; and the statements of the Issuers, the Guarantors
and their respective officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as
of the Closing Date.

 

(b)              
No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and delivery of this
Agreement, (i) no downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred
stock issued or guaranteed by the Parent or any of its subsidiaries by any “nationally recognized statistical rating organization,”
as such term is defined under Section 3(a)(62) under the Exchange Act and (ii) no such organization shall have publicly announced
that it has under surveillance or review, or has changed its outlook with respect to, its rating of the Securities or of any other
debt securities or preferred stock issued or guaranteed by the Parent or any of its subsidiaries (other than an announcement with
positive implications of a possible upgrading).

 

(c)              
No Material Adverse Change. No event or condition of a type described in Section 3(l) hereof shall
have occurred or shall exist, which event or condition is not described in each of the Time of Sale Information (excluding any
amendment or supplement thereto) and the Offering Memorandum (excluding any amendment or supplement thereto) the effect of which
in the judgment of the Representative makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum.

 

(d)              
Officer’s Certificate. On the Closing Date, the Representative shall have received a written certificate
executed by the Chief Executive Officer or President of GP LLC, Finance Corp and each of the Guarantors and by the Chief Financial
Officer or Chief Accounting Officer of GP LLC, Finance Corp and each of the Guarantors, dated as of the Closing Date, (i) confirming
that such officers have carefully reviewed the Time of Sale Information and the Offering Memorandum and, to the knowledge of such
officers, the representations set forth in Sections 3(d) and 3(e) hereof are true and correct, (ii) confirming
that the other representations and warranties of the Issuers and the Guarantors in this Agreement are true and correct and that
the Issuers and the Guarantors have complied with all agreements and satisfied all conditions on their part to be performed or
satisfied hereunder at or prior to the Closing Date and (iii) confirming that the representations and warranties to the effect
set forth in Sections 6(b) and 6(c) hereof are true and correct.

 

(e)               Comfort
Letters. On the date hereof, the Initial Purchasers shall have received from Deloitte & Touche LLP, the
independent registered public accounting firm for the Parent, a “comfort letter” dated the date hereof addressed
to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative, covering the financial
information in the Time of Sale Information and other customary matters. In addition, on the Closing Date, the Initial
Purchasers shall have received from such accountants a “bring down comfort letter” dated the Closing Date
addressed to the Initial Purchasers, in form and substance satisfactory to the Representative, in the form of the
 “comfort letter” delivered on the date hereof, except that (A) it shall cover the financial information contained
or incorporated by reference in each of the Time of Sale Information and the Offering Memorandum and any amendment or
supplement thereto and (B) procedures shall be brought down to a date no more than three days prior to the Closing Date.

 

    20

     

    

 

(f)               
Opinion and 10b-5 Statement of Counsel for the Issuers. The Representative shall have received on and as of
the Closing Date an opinion and 10b-5 statement of Latham & Watkins LLP, counsel for the Issuers, with respect to such matters
as the Representative may reasonably request, and such counsel shall have received such documents and information as they may reasonably
request to enable them to pass upon such matters.

 

(g)              
Opinion and 10b-5 Statement of Counsel for the Initial Purchasers. The Representative shall have received
on and as of the Closing Date an opinion and 10b-5 statement, addressed to the Initial Purchasers, of Vinson & Elkins L.L.P.,
counsel for the Initial Purchasers, with respect to such matters as the Representative may reasonably request, and such counsel
shall have received such documents and information as they may reasonably request to enable them to pass upon such matters.

 

(h)              
No Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order
shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as
of the Closing Date, prevent the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction or order
of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale
of the Securities or the issuance of the Guarantees.

 

(i)                
Good Standing. The Representative shall have received on and as of the Closing Date satisfactory evidence
of the good standing of the Issuers and Guarantors in their respective jurisdictions of organization and their good standing in
such other jurisdictions as the Representative may reasonably request, in each case in writing or any standard form of telecommunication
from the appropriate governmental authorities of such jurisdictions; provided that, if evidence of good standing cannot be delivered
to the Representative prior to the Closing Date with respect to AROC Services GP LLC, Archrock Partners Leasing LLC or Archrock
Partners Leasing LLC in California, Utah or New York, respectively, the Issuers and Guarantors will deliver such evidence to the
Representative within 10 business days of the Closing Date (or such other date as may be agreed to in writing by the Representative
in its sole discretion).

 

(j)                
DTC. The Securities shall be eligible for clearance and settlement through DTC.

 

(k)              
Securities. The Securities shall have been duly executed and delivered by a duly authorized officer of the
Issuers and duly authenticated by the Trustee.

 

(l)                
Additional Documents. On or prior to the Closing Date, the Issuers and the Guarantors shall have furnished
to the Representative such further certificates and documents as the Representative may reasonably request.

 

All opinions, letters,
certificates and evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions
hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers.

 

    21

     

    

 

7.               
 Indemnification and Contribution.

 

(a)              
Indemnification of the Initial Purchasers. The Archrock Entities jointly and severally agree to indemnify
and hold harmless each Initial Purchaser, its affiliates, directors and officers and each person, if any, who controls such Initial
Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and
all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection
with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise
out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering
Memorandum, any of the other Time of Sale Information, any Issuer Written Communication, or the Offering Memorandum (or any amendment
or supplement thereto) or any omission or alleged omission to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses,
claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating to any Initial Purchaser furnished to the Partnership
in writing by such Initial Purchaser through the Representative expressly for use therein.

 

(b)              
Indemnification of the Issuers and the Guarantors. Each Initial Purchaser agrees, severally and not jointly,
to indemnify and hold harmless the Issuers, each of the Guarantors, each of their respective directors and officers and each person,
if any, who controls the Issuers or any of the Guarantors within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses,
claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with any information relating to such Initial Purchaser furnished to the Partnership
in writing by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any of
the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or any amendment or supplement
thereto), it being understood and agreed that the only such information consists of the following paragraphs in the Preliminary
Offering Memorandum and the Offering Memorandum: the third and fourth sentences of the ninth paragraph and the tenth paragraph
under the caption “Plan of distribution.”

 

(c)               Notice
and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or
demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either
paragraph (a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person
against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph
(a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it
from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such
proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person
thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not,
without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and
any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in
such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has
failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in
addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any
impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing interests between them. It is understood and agreed
that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be
liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified
Persons, and that all such fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for any
Initial Purchaser, its affiliates, directors and officers and any control persons of such Initial Purchaser shall be
designated in writing by RBC Capital Markets, LLC and any such separate firm for the Partnership, the Guarantors, their
respective directors and officers and any control persons of the Partnership and the Guarantors shall be designated in
writing by the Partnership. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying
Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or
judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an
Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the
Indemnifying Person shall be liable for any settlement of any proceeding effected without its written consent if (i) such
settlement is entered into more than 30 days after receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of
such settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement
of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and
indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an
unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person,
from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or
any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

    22

     

    

 

(d)               Contribution.
If the indemnification provided for in paragraph (a) or (b) above is unavailable to an Indemnified Person or insufficient in
respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to
reflect the relative benefits received by the Issuers and the Guarantors on the one hand and the Initial Purchasers on the
other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the
relative fault of the Issuers and the Guarantors on the one hand and the Initial Purchasers on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the Issuers and the Guarantors on the one hand and the Initial
Purchasers on the other shall be deemed to be in the same respective proportions as the net proceeds (before deducting
expenses) received by the Issuers from the sale of the Securities and the total discounts and commissions received by the
Initial Purchasers in connection therewith, as provided in this Agreement, bear to the aggregate offering price of the
Securities. The relative fault of the Issuers and the Guarantors on the one hand and the Initial Purchasers on the other
shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to information supplied by the Issuers or the Guarantors or
by the Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.

 

(e)              
Limitation on Liability. The Issuers, the Guarantors and the Initial Purchasers agree that it would not be
just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity for such purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of
the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding
the provisions of this Section 7, in no event shall an Initial Purchaser be required to contribute any amount in excess
of the amount by which the total discounts and commissions received by such Initial Purchaser with respect to the offering of the
Securities exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this Section 7 are several in
proportion to their respective purchase obligations hereunder and not joint.

 

(f)               
Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and shall
not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

8.                 
Effectiveness of Agreement. This Agreement shall become effective as of the date first written above.

 

    23

     

    

 

9.                  Termination.
This Agreement may be terminated in the absolute discretion of the Representative, by notice to the Partnership, if after the
execution and delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended
or materially limited on the New York Stock Exchange or the over-the-counter market; (ii) trading of any securities issued or
guaranteed by the Issuers or any of the Guarantors shall have been suspended on any exchange or in any over-the-counter
market; (iii) a general moratorium on commercial banking activities shall have been declared by federal or New York State
authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or any change in financial markets
or any calamity or crisis, either within or outside the United States, that, in the judgment of the Representative, is
material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering
Memorandum.

 

10.             
Defaulting Initial Purchaser.

 

(a)              
If, on the Closing Date, any Initial Purchaser defaults on its obligation to purchase the Securities that it has agreed
to purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange for the purchase of such Securities
by other persons satisfactory to the Partnership on the terms contained in this Agreement. If, within 36 hours after any such default
by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase of such Securities, then the Partnership
shall be entitled to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Initial
Purchasers to purchase such Securities on such terms. If other persons become obligated or agree to purchase the Securities of
a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or the Partnership may postpone the Closing Date for
up to five full business days in order to effect any changes that in the opinion of counsel for the Partnership or counsel for
the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other document or arrangement,
and the Partnership agrees to promptly prepare any amendment or supplement to the Time of Sale Information or the Offering Memorandum
that effects any such changes. As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of
this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to
this Section 10, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase.

 

(b)              
If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Partnership as provided in paragraph (a) above, the aggregate principal
amount of such Securities that remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Securities,
then the Partnership shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of
Securities that such Initial Purchaser agreed to purchase hereunder plus such Initial Purchaser’s pro rata share (based on
the principal amount of Securities that such Initial Purchaser agreed to purchase hereunder) of the Securities of such defaulting
Initial Purchaser or Initial Purchasers for which such arrangements have not been made.

 

(c)              
If, after giving effect to any arrangements for the purchase of the Securities of a defaulting Initial Purchaser or Initial
Purchasers by the non-defaulting Initial Purchasers and the Partnership as provided in paragraph (a) above, the aggregate principal
amount of such Securities that remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities,
or if the Partnership shall not exercise the right described in paragraph (b) above, then this Agreement shall terminate without
liability on the part of the non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this Section 10
shall be without liability on the part of the Partnership or the Guarantors, except that the Partnership and each of the Guarantors
will continue to be liable for the payment of expenses as set forth in Section 11 hereof and except that the provisions
of Section 7 hereof shall not terminate and shall remain in effect.

 

    24

     

    

 

(d)              
 Nothing contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Partnership,
the Guarantors or any non-defaulting Initial Purchaser for damages caused by its default.

 

11.             
Payment of Expenses.

 

(a)              
Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Issuers
and each of the Guarantors jointly and severally agree to pay or cause to be paid all costs and expenses incident to the performance
of their respective obligations hereunder, including without limitation, (i) the costs incident to the authorization, issuance,
sale, preparation and delivery of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation
and printing of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the
Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing
and distributing each of the Transaction Documents; (iv) the fees and expenses of the Issuers’ and the Guarantors’
counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or qualification and
determination of eligibility for investment of the Securities under the laws of such jurisdictions as the Representative may designate
and the preparation, printing and distribution of a Blue Sky Memorandum (including the related fees and expenses of counsel for
the Initial Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses of the
Trustee and any paying agent (including related fees and expenses of any counsel to such parties); (viii) all expenses and application
fees incurred in connection with the approval of the Securities for book-entry transfer by DTC; and (ix) all expenses incurred
by the Issuers in connection with any “road show” presentation to potential investors.

 

(b)              
If (i) this Agreement is terminated pursuant to Section 9, (ii) the Issuers for any reason fail to tender the
Securities for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the Securities for any reason
permitted under this Agreement, the Issuers and each of the Guarantors jointly and severally agree to reimburse the Initial Purchasers
for all out-of-pocket costs and expenses (including the fees and expenses of their counsel) reasonably incurred by the Initial
Purchasers in connection with this Agreement and the offering contemplated hereby.

 

12.             
Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and the officers and directors and any controlling persons referred to herein,
and the affiliates of each Initial Purchaser referred to in Section 7 hereof. Nothing in this Agreement is intended
or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision contained herein. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor merely
by reason of such purchase.

 

13.              Survival.
The respective indemnities, rights of contribution, representations, warranties and agreements of the Issuers, the Guarantors
and the Initial Purchasers, its affiliates, directors and officers and each person, if any, who controls such Initial
Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, contained in this
Agreement or made by or on behalf of the Issuers, the Guarantors or the Initial Purchasers pursuant to this Agreement or any
certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall remain in full
force and effect, regardless of any termination of this Agreement or any investigation made by or on behalf of the Issuers,
the Guarantors or the Initial Purchasers.

 

    25

     

    

 

14.             
Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the
term “affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business
day” means any day other than a day on which banks are permitted or required to be closed in New York City; (c) the
term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act; (d) the term “Exchange
Act” collectively means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder; and (e) the term “written communication” has the meaning set forth in Rule 405 under the
Securities Act; and (f) the term “significant subsidiary” has the meaning set forth in Rule 1-02 of Regulation
S-X under the Exchange Act.

 

15.             
Compliance with USA Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information
that identifies their respective clients, including the Issuers and the Guarantors, which information may include the name and
address of their respective clients, as well as other information that will allow the Initial Purchasers to properly identify their
respective clients.

 

16.             
Miscellaneous.

 

(a)              
Authority of the Representative. Any action by the Initial Purchasers hereunder may be taken by RBC Capital
Markets, LLC on behalf of the Initial Purchasers, and any such action taken by RBC Capital Markets, LLC shall be binding upon the
Initial Purchasers.

 

(b)              
Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been
duly given if mailed or transmitted and confirmed by any standard form of telecommunication as follows:

 

If to the Initial Purchasers:

RBC Capital Markets, LLC

Three World Financial Center

200 Vesey Street, New York, New
York 10281

Attention: High Yield Capital Markets

with a copy to:

Vinson & Elkins L.L.P.

1001 Fannin Street, Suite 2500

Houston, Texas 77002-6760

Attention: Douglas McWilliams

 

    26

     

    

 

If to the Issuers or the Guarantors:

Archrock, Inc.

9807 Katy Freeway, Suite 100

Houston, Texas 77024

Attention: General Counsel

 

with a copy to:

Latham & Watkins LLP

811 Main Street, Suite 3700

Houston, Texas 77002

Attention:Ryan Maierson

Nick Dhesi

 

(c)              
Governing Law. This Agreement and any claim, controversy or dispute arising under or related to this Agreement
shall be governed by and construed in accordance with the laws of the State of New York.

 

(d)              
Submission to Jurisdiction. The Issuers and each of the Guarantors hereby submit to the exclusive jurisdiction
of the U.S. federal and New York state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby. The Issuers and each of the Guarantors waive any
objection which it may now or hereafter have to the laying of venue of any such suit or proceeding in such courts. Each of the
Issuers and Guarantors agrees that final judgment in any such suit, action or proceeding brought in such court shall be conclusive
and binding upon the Issuers and each Guarantor, as applicable, and may be enforced in any court to the jurisdiction of which the
Issuers and each Guarantor, as applicable, is subject by a suit upon such judgment.

 

(e)              
Waiver of Jury Trial. Each of the parties hereto hereby waives any right to trial by jury in any suit or proceeding
arising out of or relating to this Agreement.

 

(f)               
Recognition of the U.S. Special Resolution Regimes.

 

(i)                
In the event that any Initial Purchaser that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution
Regime, the transfer from such Initial Purchaser of this Agreement, and any interest and obligation in or under this Agreement,
will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement,
and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

 

(ii)             
In the event that any Initial Purchaser that is a Covered Entity or a BHC Act Affiliate of such Initial Purchaser becomes
subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against
such Initial Purchaser are permitted to be exercised to no greater extent than such Default Rights could be exercised under the
U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

 

    27

     

    

 

 

 

As used in this Section 16(f):

 

“BHC Act
Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance
with, 12 U.S.C. § 1841(k).

 

“Covered
Entity” means any of the following:

 

(i)      a
 “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

(ii)     a
 “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

(iii)    a
 “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§
252.81, 47.2 or 382.1, as applicable.

 

“U.S. Special
Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder
and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

 

(g)         Counterparts. This Agreement may be signed in counterparts (which may include counterparts delivered by any
standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or electronic (e.g.
pdf) transmission shall be as effective as delivery of a manually executed counterpart hereof. The words “execution,”
 “signed,” “signature,” and words of like import in this Agreement shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability
as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided
for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, and any other similar state laws based on the Uniform Electronic Transactions Act.

 

(h)         Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval
to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

 

(i)          Headings. The headings herein are included for convenience of reference only and are not intended to be part
of, or to affect the meaning or interpretation of, this Agreement.

 

    	 	29	 

     

    

 

If the foregoing is
in accordance with your understanding, please indicate your acceptance of this Agreement by signing in the space provided below.

 

	 	Very truly yours,
	 	 	 	 
	 	ISSUERS:
	 	 	 	 
	 	ARCHROCK PARTNERS, L.P.
	 	 	 	 
	 	By:	ARCHROCK GENERAL PARTNER, L.P.
	 	 	its general partner
	 	 	 	 
	 	By:	ARCHROCK GP LLC
	 	 	its general partner
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice President
and Chief Financial Officer

	 	 	 	 
	 	ARCHROCK PARTNERS FINANCE CORP.
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer

 

    	 	30	 

     

    

 

	 	GUARANTORS:
	 	 	 	 
	 	ARCHROCK, INC.
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	AROC CORP.
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	AROC SERVICES GP LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	AROC SERVICES LP LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	ARCHROCK SERVICES, L.P.
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer

 

    	 	31	 

     

    

 

	 	ARCHROCK SERVICES LEASING LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	ARCHROCK GP LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	ARCHROCK GP LP LLC
	 	 	 	        
	 	By:	/s/ Pamela A. Jasinski    
	 	 	Name:	Pamela
A. Jasinski
	 	 	Title:	Manager
	 	 	 	 
	 	ARCHROCK MLP LP LLC
	 	 	 	 
	 	By:	/s/ Pamela A. Jasinski
	 	 	Name:	Pamela A. Jasinski
	 	 	Title:	Manager
	 	 	 	 
	 	ARCHROCK GENERAL PARTNER, L.P.
	 	 	 	 
	 	By: ARCHROCK GP LLC,
	 	its General Partner
	 	 	 	 
	 	By:	/s/ Douglas S. Aron  

	 	 	Name:	Douglas
S. Aron    
	 	 	Title:	Senior Vice President
and Chief Financial Officer

 

    	 	32	 

     

    

 

	 	ARCHROCK PARTNERS CORP.
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	ARCHROCK PARTNERS OPERATING LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer
	 	 	 	 
	 	ARCHROCK PARTNERS LEASING LLC
	 	 	 	 
	 	By:	/s/ Douglas S. Aron
	 	 	Name:	Douglas
S. Aron
	 	 	Title:	Senior Vice
President and Chief Financial Officer

 

    	 	33	 

     

    

 

	Accepted: As of the date first written above	 
	 	 	 
	RBC CAPITAL MARKETS, LLC	 
	 	 	 
	For itself and on behalf of the several Initial Purchasers listed in Schedule 1 hereto.	 
	 	 	 
	By:	/s/ A. Kiss  	 
	 	Authorized Signatory	 

 

    	 	34	 

     

    

 

 

Schedule 1

 

	Initial Purchaser	 	Principal

 Amount	 
	RBC Capital Markets, LLC	 	$	82,500,000	 
	J.P. Morgan Securities LLC	 	$	38,250,000	 
	Wells Fargo Securities, LLC	 	$	28,200,000	 
	BofA Securities, Inc. 	 	$	23,250,000	 
	Regions Securities LLC	 	$	23,250,000	 
	Scotia Capital (USA) Inc. 	 	$	23,250,000	 
	TD Securities (USA) LLC	 	$	23,250,000	 
	Citigroup Global Markets Inc. 	 	$	23,250,000	 
	Truist Securities, Inc. 	 	$	15,000,000	 
	SMBC Nikko Securities America, Inc. 	 	$	3,750,000	 
	CIT Capital Securities LLC	 	$	3,000,000	 
	Fifth Third Securities, Inc. 	 	$	3,000,000	 
	BBVA Securities Inc. 	 	$	3,000,000	 
	PNC Capital Markets LLC	 	$	2,400,000	 
	Raymond James & Associates, Inc. 	 	$	2,400,000	 
	FHN Financial Securities Corp. 	 	$	2,250,000	 
	Total	 	$	300,000,000	 

 

     

     

    

 

Schedule 2

 

Guarantors

 

		1.	Archrock, Inc.

		 	 

		2.	AROC Corp.

		 	 

		3.	AROC Services GP LLC

		 	 

		4.	AROC Services LP LLC

		 	 

		5.	Archrock Services, L.P.

		 	 

		6.	Archrock Services Leasing LLC

		 	 

		7.	Archrock GP LLC

		 	 

		8.	Archrock Partners Corp

		 	 

		9.	Archrock GP LP LLC

		 	 

		10.	Archrock MLP LP LLC

		 	 

		11.	Archrock General Partner, L.P.

		 	 

		12.	Archrock Partners Operating LLC

		 	 

		13.	Archrock Partners Leasing LLC

 

     

     

    

 

ANNEX A

 

Additional Time of Sale Information

 

		1.	Term sheet containing the terms of the Securities, substantially
in the form of Annex B.

 

     

     

    

 

ANNEX B

 

Pricing Term Sheet, dated December 14,
2020

to Preliminary Offering Memorandum dated December 14, 2020

Strictly Confidential

 

ARCHROCK PARTNERS, L.P.

ARCHROCK PARTNERS FINANCE CORP.

 

This pricing term sheet is qualified in
its entirety by reference to the Preliminary Offering Memorandum (the “Preliminary Offering Memorandum”).
The information in this pricing term sheet supplements the Preliminary Offering Memorandum and updates and supersedes the information
in the Preliminary Offering Memorandum to the extent it is inconsistent with the information in the Preliminary Offering Memorandum.
Terms used and not defined herein have the meanings assigned in the Preliminary Offering Memorandum.

 

	Issuers:	Archrock Partners, L.P.
	 	Archrock Partners Finance Corp.
	Guarantors:	Archrock, Inc. and all of its subsidiaries (other than the Issuers)
	Security Description:	6.250% Senior Notes due 2028.  The Securities are part of the same series as the $500.0 million principal amount of 6.250% Senior Notes due 2028 issued by the Issuers on December 20, 2019.  
	Distribution:	144A/Regulation S for life
	
        Aggregate Principal Amount:

        Gross Proceeds (disregarding accrued interest):
	
        $300,000,000 (increased from $250,000,000)

        $314,625,000

	Estimated Net Proceeds (after deducting initial purchasers’ discounts and estimated offering expenses, but disregarding accrued interest):	
        

        $309,625,000

	Maturity:	April 1, 2028
	Coupon:	6.250%
	Issue Price:	104.875% of face amount plus accrued interest from October 1, 2020
	Yield to Worst:	5.183%
	Benchmark Treasury:	UST 2.875% due May 15, 2028
	Spread to Benchmark Treasury:	+ 453 bps
	Interest Payment Dates:	April 1 and October 1
	Equity Clawback:	Up to 35% at 106.250% prior to April 1, 2023

 

    B-1

     

    

 

	Optional Redemption:	Make-whole call @ T+50 bps prior to April 1, 2023 then:
	 	 	 

	 	
        On or after April 1:

        2023

        2024

        2025

        2026 and thereafter
	
        Price:

        103.125%

        102.083%

        101.042%

        100.000%

	 	 	 
	Change of Control:	Offer to purchase at 101% of principal plus accrued and unpaid interest to, but not including, the date of purchase.
	Trade Date:	December 14, 2020
	Settlement:	T+3; December 17, 2020. It is expected that delivery of the notes will be made against payment therefor on or about December 17, 2020 which is the third business day following the date hereof (such settlement cycle being referred to as “T+3”).  Under Rule 15c6-1 under the Exchange Act, trades in the secondary market generally are required to settle in two business days unless the parties to any such trade expressly agree otherwise.  Accordingly, purchasers who wish to trade the notes on any date prior to the second business day prior to delivery will be required, by virtue of the fact that the notes initially will settle in T+3, to specify an alternative settlement cycle at the time of any such trade to prevent a failed settlement and should consult their own advisors.
	CUSIP/ISIN:	144A: 03959K AC4/US03959KAC45
	 	Regulation S: U2214K AC4/USU2214KAC46
	Denominations/Multiple:	$2,000 and integral multiples of $1,000 in excess thereof
	Issue Ratings*:	Moody’s: B2 / S&P: B+
	Joint Book-Running Managers:	RBC Capital Markets, LLC
	 	J.P. Morgan Securities LLC
	 	Wells Fargo Securities, LLC
	 	BofA Securities, Inc.
	 	Citigroup Global Markets Inc.
	 	Regions Securities LLC
	 	Scotia Capital (USA) Inc.
	 	TD Securities (USA) LLC
	Senior Co-Manager:	Truist Securities, Inc.
	Co-Managers:	SMBC Nikko Securities America, Inc.

 

    B-2

     

    

 

	 	CIT Capital Securities LLC
	 	PNC Capital Markets LLC  
	 	Fifth Third Securities, Inc.
	 	BBVA Securities Inc.
	 	Raymond James & Associates, Inc.
	 	FHN Financial Securities Corp.  

 

Changes to the Preliminary Offering
Memorandum 

 

The following changes will be made to the
disclosure in the Preliminary Offering Memorandum:

 

Offering Size 

 

The Issuers have increased the aggregate
principal amount of the offering from $250.0 million to $300.0 million. References in the Preliminary Offering Memorandum to the
$250.0 million aggregate principal amount of new notes are hereby amended to reference the issuance of $300.0 million aggregate
principal amount of new notes. The net proceeds from the increased amount of the offering will be used to repay additional amounts
of existing indebtedness outstanding under our Credit Facility.

 

All information (including financial
information) presented in the Preliminary Offering Memorandum is deemed to have changed to the extent affected by the changes described
herein.

 

 

This material is confidential and is
for your information only and is not intended to be used by anyone other than you. This information does not purport to be a complete
description of these notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete description.

 

This communication is being distributed
in the United States solely to persons reasonably believed to be Qualified Institutional Buyers, as defined in Rule 144A under
the Securities Act of 1933, as amended, and outside the United States solely to Non-U.S. persons as defined under Regulation S.

 

The notes have not been registered under
the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction. The notes may not be offered or sold
in the United States or to U.S. persons (as defined in Regulation S) except in transactions exempt from, or not subject to, the
registration requirements of the Securities Act. This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such
jurisdiction.

 

*A securities rating is not a recommendation
to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

Any disclaimer or other notice that may
appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically generated
as a result of this communication being sent by Bloomberg or another email system.

 

    B-3

     

    

 

ANNEX C

 

Restrictions on Offers and Sales
Outside the United States

 

In connection with
offers and sales of Securities outside the United States:

 

(a)              
Each Initial Purchaser acknowledges that the Securities have not been registered under the Securities Act and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption
from, or in transactions not subject to, the registration requirements of the Securities Act.

 

(b)              
Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that:

 

(i)              
Such Initial Purchaser has offered and sold the Securities, and will offer and sell the Securities, (A) as part of
their distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering of the Securities
and the Closing Date, only in accordance with Regulation S under the Securities Act (“Regulation S”)
or Rule 144A or any other available exemption from registration under the Securities Act.

 

(ii)             
None of such Initial Purchaser or any of its affiliates or any other person acting on its or their behalf has engaged
or will engage in any directed selling efforts with respect to the Securities, and all such persons have complied and will comply
with the offering restrictions requirement of Regulation S.

 

(iii)           
At or prior to the confirmation of sale of any Securities sold in reliance on Regulation S, such Initial Purchaser
will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchases
Securities from it during the distribution compliance period a confirmation or notice to substantially the following effect:

 

The Securities covered hereby have
not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution
at any time or (ii) otherwise until 40 days after the later of the commencement of the offering of the Securities and the date
of original issuance of the Securities, except in accordance with Regulation S or Rule 144A or any other available exemption from
registration under the Securities Act. Terms used above have the meanings given to them by Regulation S.

 

(iv)            
Such Initial Purchaser has not and will not enter into any contractual arrangement with any distributor with respect
to the distribution of the Securities, except with its affiliates or with the prior written consent of the Partnership.

 

Terms used in paragraph (a) and this paragraph
(b) and not otherwise defined in this Agreement have the meanings given to them by Regulation S.

 

(c)              
 Each Initial Purchaser acknowledges that no action has been or will be taken by the Partnership that would permit
a public offering of the Securities, or possession or distribution of any of the Time of Sale Information, the Offering Memorandum,
any Issuer Written Communication or any other offering or publicity material relating to the Securities, in any country or jurisdiction
where action for that purpose is required.

 

    C-1Exhibit 10.33

   

MANAGEMENT AND OPERATIONS
SERVICES AGREEMENT

 

THIS
MANAGEMENT SERVICES AND OPERATIONS AGREEMENT (“Agreement”) is entered into by and between Petroteq Energy,
Inc. (“Petroteq”), an Ontario, Canada corporation with an office at 15315 West Magnolia Boulevard, Suite 120, Sherman
Oaks, California 91403, and Valkor, LLC (“Valkor”), a Texas limited liability with an office at 21732 Provincial Boulevard
Kat y, Texas 77450 (“Valkor”) as of May 1, 2020 (“Effective Date” ). Petroteq and Valkor may each be referred
to individually as a “Party” and collectively as the “Parties” to this Agreement.

 

	A.	Petroteq holds certain patent and other rights in a technology for the production of commercial
quality oil from oil sands (“Oil Sands Technology”) and is a producer of oil using this technology at a plant located
in or near Vernal, Utah (” Plant” ) with respect to which Valkor has been providing technical and design assistance with
the goal of maximizing capacity, optimizing OPEX per barrel and achieving long-term production;

 

	B.	Valkor is an energy services company, with expertise in the area of oil and gas processing, providing
engineering, design optimization, construction, supply, installation, and various other services required to serve Petroteq in
its expansion and optimization programs and is both technically capable of scaling up the Oil Sands Technology with substantial
expertise in design automation and the modularization of oil and gas plants, and capable of assuming the management and operation
of the Plant for and on behalf of Petroteq; and

 

	C.	Petroteq has requested that Valkor provide overall management and operations services at the Plant,
and Valkor has agreed to provide such management and operations services as of the Effective Date, pursuant to and in accordance
with the terms of this Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the Parties hereby agree as follows:

 

	1.	Scope and Term of Services.

 

	1.1.	During the term of this Agreement, Valkor shall be the “operator” of the Plant under
and pursuant to the terms of this Agreement including, without limitation, primary management and operations services at and with
respect to the Plant as set forth in greater detail in Exhibit A hereto “(Services”).

 

	1.2.	In providing the Services, Valkor shall, except as otherwise provided herein, be responsible for
providing, employing , managing, supervising and compensating all personnel employed at or assigned to the Plant or the performance
of specific projects, assignments or work from time to time and all decisions with regard to such employment shall be made by Valkor
in its sole discretion. In this regard, Valkor will employ, provide or otherwise assign to the Plant experienced and qualified
employees of Valkor (“Personnel”) and outside or independent contractors (“Contractors”) that Valkor will retain
or hire, manage and supervise on behalf of Petroteq in connection with Valkor’s management and operation of the Plant.

 

	1.3.	Petroteq and Valkor acknowledge and agree that, in providing the Services under this Agreement,
Valkor will be acting as an independent contractor in providing: (a) Services for TMC Capital, LLC (“TMC Capital” ),
an indirect operating subsidiary of Petroteq under or in connection with mineral rights, working interests, and operating rights
owned or held by TMC in mineral properties or under mineral
leases; and (b) Services for Petroteq Oil Recovery, LLC (“Petroteq Oil”), an indirect operating subsidiary of Petroteq
and the owner of the Plant. TMC Capital and Petroteq Oil are each executing this Agreement and, in authorizing Valkor to provide
the Services herein, shall be vested with all of the rights and obligations of Petroteq hereunder.

 

     

     

    

 

	1.4.	Except as otherwise set forth in this Agreement or a separate written agreement, the Services provided
to Petroteq hereunder may also be provided to any of Petroteq’s affiliates and subsidiaries, and the terms and provisions of this
Agreement shall apply thereto; provided, however, that should Valkor provide Services to any of Petroteq’s affiliates or subsidiaries,
then such affiliate or subsidiary shall be deemed to be the contract party under this Agreement, and Valkor shall look only to
such entity for its rights hereunder, and hereby specifically waives all rights it may have towards Petroteq or any of its other
affiliates and subsidiaries in connection with the Services so provided.

 

	1.5.	This Agreement shall commence on the Effective Date and shall continue for a term of one (1) year
(“Original Term”) and shall automatically renew for up to four (4) additional one (1)-year terms for after the end of
Original Term (each a “Renewal Term”) unless either Party notifies the other Party no less than ninety (90) days prior
to the expiration of the Original Term or any Renewal Term that such notifying Party does not wish to renew this Agreement . This
Agreement will continue month-to-month thereafter the expiration of the Original Term and all four (4) Renewal Terms. Termination
of this Agreement, however, shall not affect any work orders still in effect at that time.

 

	1.6.	Valkor represents and warrants that the Services shall be free from defects and shall be performed
in a good and workmanlike manner in accordance with good practices for the industry in which Valkor operates and for the specific
place in which Services are provided; that all Personnel and Contractors shall be fully trained and shall perform the Services
competently and safely; that Valkor has the expertise to perform the Services properly and shall exercise due diligence in performing
the Services; that Valkor will comply with all applicable laws, statutes, codes, rules and regulations, which are now or may become
applicable to the Services or arising out of the performance of such Services; and that all Services will be in compliance with
the industry standards, the standards and requirements in or under this Agreement, and any work order.

 

	1.7.	In the event of a breach by Valkor under this Agreement, Valkor shall promptly cure such breach.
If Valkor fails to cure such breach within a reasonable time after being notified of the breach in writing by Petroteq, Petroteq
may cure such breach directly or through another contractor. Valkor shall reimburse Petroteq the reasonable and necessary costs
incurred to cure such breach within thirty (30) days after receipt of
a written invoice from Petroteq.

 

		2.	Personnel and Contractors.

 

	2.1.	The Personnel shall at all times be and remain employees of Valkor. Valkor shall be solely responsible for all salaries, benefits, taxes, social security, Medicare and other withholding requirements applicable to Personnel. Notwithstanding
any other provision of this Agreement, Petroteq may make withholdings on behalf of Valkor or Personnel in the event necessary or
as required by law. All Contractors will contract directly with and be supervised by Valkor.

 

    2

     

    

 

	2.2.	Valkor shall provide Personnel and Contractors that are capable of performing the work for which
they are engaged. Valkor, Personnel and Contractors shall comply with Petroteq’s policy on drug and alcohol abuse and with all
Petroteq’s security, computer usage and safety requirements and/or obligations as overseen and managed by Valkor.

 

	3.	Intellectual Property and Information; Ownership and Rights.

 

	3.1.	Petroteq is and shall be the full and exclusive owner of all proprietary and/or confidential
                                   technical, business and other information of Petroteq and its subsidiaries and affiliates, which may be disclosed or
                                   otherwise made accessible to Valkor, Personnel and/or Contractors in connection with the performance of the Services, along
                                   with all intellectual property rights in all forms of technology developed, created or devised by Valkor and/or Personnel in
                                   connection with this Agreement, including but not limited to patents, trademarks, copyrights, trade secrets, inventions,
                                   discoveries, know-how, techniques, and the Confidential Information described in Section 4.0 below.

 

	3.2.	Valkor and Personnel will promptly furnish to Company a record of any and all ideas, discoveries,
inventions, writings and improvements that are believed to be patentable, or which consist of unpatentable technical information,
know-how or trade secrets (within the meaning of U.S. or applicable state law), which Valkor or Personnel solely or jointly with
others may conceive, discover, invent, develop or reduce to practice in connection with (or relate in any way to): (a) the Oil
Sands Technology; or (bl any Services provided or rendered by Valkor or the Personnel under or in connection with this Agreement
(all such patentable or unpatentable information being referred to herein collectively as “New Intellectual Property”).
All such New Intellectual Property shall be subject to a “work for hire” condition and shall be owned in its entirety
by Company . In each such case, Valkor and its Personnel (including any inventor of any such Intellectual Property) shall execute
such instruments as may be provided by Company from time to time in and under which Valkor and Personnel shall assign and convey
to Company all of the right, title and interest that Valkor (or its Personnel) may otherwise have in and to any and all such New
Intellectual Property. Valkor and Company shall negotiate in good faith on terms for filing and prosecuting, in Company’s name
and on its behalf, any and all patent applications that Company determines should be filed and prosecuted in or with respect to
any New Intellectual Property and the terms under which the right to practice under or use any such New Intellectual Property (including
any patents issued with respect thereto) shall be licensed on a non-exclusive basis to Valkor.

 

	3.3.	All works of copyrightable subject matter created by Valkor or Personnel pursuant to this
                                                                 Agreement shall be deemed works made for hire and shall be owned by Company. If any such works may not be deemed works made
                                                                 for hire by operation of law, Valkor and Personnel hereby assign ownership of all copyright in such works to Company,
                                                                 including any and all rights under the (U.S.) Visual Artists Rights Act of 1990, which shall be waived, to the extent
                                                                 authorized or permitted thereunder, by Valkor and any Personnel considered the “artist” under or with respect to
                                                                 any work of visual art created under or in connection with the Services. To the extent of any pre-existing ideas,
                                                                 discoveries, inventions, writings and improvements of Valkor or Personnel (excluding Personnel previously employed by Company
                                                                 or any of its subsidiaries or affiliates as employees or contractors,
as the case may be), Valkor shall and hereby does grant to Company an irrevocable, non-exclusive, world-wide, royalty-free license
to: (a) use, execute, reproduce, display, perform, distribute (internally and externally) copies of, and prepare derivative works
based upon, such pre-existing materials and derivative works thereof; and (b) authorize others to do any, some, or all of the foregoing.

 

    3

     

    

 

	3.4.	Petroteq shall grant Valkor a global, non-exclusive license to use: (a) the Oil Sands Technology;
(b) the New Intellectual Property; (c) the copyrightable subject matters covered by Section 3.3 above; and (d) the Confidential
Information described in Section 4 below, pursuant to a separate Technology License Agreement executed by the Parties concurrently
with the execution of this Agreement .

 

	4.	Confidential Information.

 

		4.1.	Petroteq and Valkor acknowledge and understand that, during
the term of this Agreement, Petroteq will provide or otherwise make available to Valkor, or Valkor and the Personnel shall gain
access to or otherwise develop, either singularly or in concert with others, non-public information and materials that are deemed
to be or consist of “Confidential Information.”

 

		4.2.	Valkor covenants and agrees that, during the term of this
Agreement and for an additional period of three (3) years after the termination or expiration of this Agreement (collectively,
the “Confidentiality Period”), Valkor shall: (a) not use, copy or reproduce the Confidential Information for any purpose
other than as necessary to perform the Services, and to exercise its rights and obligations, under this Agreement (or in connection
with any other services agreement entered into by and between Petroteq (of any of its subsidiaries and affiliates) and Valkor;
and (b) keep and maintain the Confidential Information as confidential and shall not disclose any of the Confidential Information
to any person or entity other than: (i) to Petroteq and its subsidiaries, and to each of their respective directors, officers,
members, managers and employees; (ii) to the Personnel and any Contractors on a “need to know” basis that have executed
confidentiality agreements or undertakings that contain confidentiality obligations that are at least as protective as the confidentiality
obligations undertaken by Valkor in this Agreement; or (iii) that otherwise has been authorized by Petroteq in or under a separate
writing executed by an executive officer of Petroteq.

 

		4.3.	Valkor agrees, during the Confidentiality Period, to protect
and safeguard all such Confidential Information through use of security measures and precautions that are reasonably designed
to prevent unauthorized use, access to or misappropriation of the Confidential Information by any person or entity that is not
authorized to receive or have access to such Confidential Information.

 

		4.4.	Valkor shall ensure that all Contractors that it retains
or employs to perform work at the Plant have executed written agreements with Valkor that, among other things, contain confidentiality
provisions that are designed to protect the Confidential Information from unauthorized disclosure, use or misappropriation, whether
by inadvertence or otherwise.

 

    4

     

    

 

	5.	Compensation.

 

	5.1.	For the purposes of this Agreement, the term “Personnel
Cost and Expenses” means the fully burdened cost of all employees, consultants and independent contractors working at the
Plant, whether such costs or expenses are paid by Valkor directly from accounts maintained in Valkor’s name or from one
or more special accounts established and maintained in the name of Valkor and Petroteq for the purpose of administering this Agreement

 

	5.2.	For the purposes this Agreement, the term “Operations
Costs and Expenses” means all identifiable, verifiable and auditable costs and expenses (including capital expenditures
approved in writing by Petroteq) incurred and paid by Valkor in performing the Services, whether such costs or expenses (and capital
expenditures approved in writing by Petroteq) are paid by Valkor directly from accounts maintained in Valkor’s name or from
one or more special accounts established and maintained in the name of Valkor and Petroteq for the purpose of administering this
Agreement.

 

	5.3.	For the purposes of this Agreement, the term “Costs
and Expenses” shall refer to the sum total of all “Personnel Costs and Expenses” and all “Operations Costs
and Expenses.”

 

	5.4.	Petroteq shall pay to Valkor, for the Services conducted
and performed under this Agreement, fees and cost reimbursements on a periodic basis consisting of the following:

 

	5.4.1.	Reimbursement of all identifiable “Costs and Expenses”
(excluding any costs or expenses paid by Petroteq from any special account established by the Parties funded by amounts deposited
by Petroteq or received by Petroteq from and pursuant to licensing and other arrangements with Valkor or any third party);

 

	5.4.2.	A fee equal to twelve percent (12%) of the Personnel Costs
and Expenses (“Personnel Management Fee”) calculated pursuant to this Agreement; and

 

	5.4.3.	. A fee equal to five percent (5%) of the Operations Costs
and Expenses (“Operations Management Fee”) calculated pursuant to this Agreement.

 

		S.S.	Where work is performed by Valkor for Petroteq outside
the scope of this Agreement, including without limitation, any engineering or related technical work provided by Valkor on a specific
project or assignment (“Special Assignments”), a work order shall be prepared by Valkor and approved in writing by
Petroteq prior to the start of any such Special Assignment . For Special Assignments, Petroteq shall pay Valkor at the rates set
forth in Exhibit B hereto based upon and pursuant to written billing statements prepared and submitted by Valkor to Petroteq
that describe the nature of work performed and completed, the individual(s) providing or performing the work (and any costs or
expenses incurred by such individuals in performing the work), and the time required to perform and complete such work.

 

	5.6.	Valkor shall not be required to submit time sheets for
work in performing Special Assignments that are required to be paid as a fixed or lump sum amount under any work order approved
or authorized by Petroteq.

 

    5

     

    

 

	5.7.	Valkor shall pay all taxes, licenses, fees and governmental charges levied or assessed on Valkor
in connection with or incident to the performance of the Services by any governmental agency. Valkor agrees to require the same
actions by any of its Contractors and Valkor shall be liable for any breach of these provisions by any of its Contractors. Valkor
shall pay all claims for labor, goods, equipment, services, supplies, machinery, and/or facilities of any kind furnished in connection
with Valkor’s obligations under this Agreement, with all such costs and expenses paid by Valkor being included within the “Operations
Costs and Expenses” for purposes of Section 5.2 above, and agrees to allow no lien or charge to be fixed upon any of the Plant
or the Lease or any other property or assets of Petroteq (or any of its subsidiaries and affiliates) or any person for whom Petroteq
is the Services.

 

	5.8.	Notwithstanding the above, Valkor shall not incur, assume or become liable in any way for any payments,
duties, fees, penalties, judgements, compensation, liabilities, responsibilities, violations, incidents, levies, fines, assessments
and/or any other obligations of Petroteq (“Petroteq Liabilities”), including any such Petroteq Liabilities incurred in
connection with the management and operation of the Plant prior to the Effective Date of this Agreement.

 

	6.	Quarterly Production Reports.

 

	6.1.	For each calendar quarter during the term of this Agreement (each such quarter being a “Reporting
Quarter”), Valkor shall deliver to Petroteq, within thirty (30) days after the end of each Reporting Quarter, a report (each
a “Quarterly Production Report”) that, for and with respect such Reporting Quarter, sets forth the following:

 

	6.1.1.	The quantity of oil-bearing ore and sediments mined, extracted and produced from each of the Leases
and transported or delivered to the Plant;

 

	6.1.2.	The quantity of crude oil, synthetic oil, bitumen oil and other petroleum products (collectively
“Oil Products”) produced, saved and sold at and from the Plant, identifying separately the volume of Oil Products in
storage and the volume of Oil Products that has been sold and delivered to purchasers;

 

	6.1.3.	The quantity or volume of feedstocks, solvents, and other chemicals: (a) purchased or acquired
by Valkor; and (b) used, recycles or consumed in operations at the Plant; and

 

	6.1.4.	The gross proceeds derived from and received by Valkor from the sale of Oil Products to purchasers,
together with: (a) the amount of any production-related, sales or value added taxes imposed on or with respect to the Oil Products
produced or sold from the Plant; and (b) the amount of any transportation taxes incurred and paid by Valkor that are attributable
to the sale or other disposition of Oil Products sold at or from the Plant (or debited against the proceeds derived from the sale
of such Oil Pro ducts) . In the event that, during any Reporting Quart er, the Oil Products produced and sold from the Plant were
derived from mined ores or sediments from more than one Lease, the reported production and sale of Oil Products shall be allocated
to such Leases in proportion to the volume of mined ore or sediments contributed by each Lease to such Oil Products produced, saved
and sold from the Plant during such Reporting Quarter.

 

    6

     

    

 

	6.2.	Each Quarterly Production Report delivered to Petroteq shall be certified by Valkor or the preparer
of the report as true, correct and complete in all material respects. If, during any Reporting Quarter, no production or sale of
Oil Products from the Plant has occurred, or if no proceeds from the sale or other disposition of Oil Products has been received
by Valkor, the Quarterly Production Report generated with respect to such Reporting Quarter shall so state.

 

		7.	Quarterly Operating Reports.

 

	7.1.	For each Reporting Quarter, Valkor shall deliver to Petroteq, within thirty (30) days after the
end of each Reporting Quarter, a report (each a “Quarterly Operating Report”) that, for and with respect such Reporting
Quart er, sets forth the following:

 

	7.1.1.	All revenue received by Valkor from the sale or other disposition of Oil Products produced, saved
and sold from the Plant;

 

	7.1.2.	A detailed accounting of all “Costs and Expenses” that, expressed as separate line items,
have been incurred and/or paid by Valkor during such Reporting Quarter, including any estimated cost reserves established by Valkor
for recurring costs or expenses or for any capital expenditures that have been or will be paid, either in whole or in part, during
the calendar year; and

 

	7.1.3.	The amount of the Operations Management Fee and Personnel Management Fees earned by Valkor during
such Reporting Quarter.

 

	7.2.	Each Quarterly Operating Report delivered to Petroteq shall be certified by Valkor, or by the preparer
of the report, as true, correct and complete in all material respects. If, during any Reporting Quarter, no revenue from the production
and sale of Oil Products has occurred, or if no Costs and Expenses were incurred or paid by Valkor during such Reporting Quarter,
the Quarterly Operating Report shall so state.

 

	8.	Quarterly Royalty Reports.

 

	8.1.	Within thirty (30) days after the end of each Reporting Quarter, Valkor shall deliver a copy of
the Quarterly Production Report to an independent third party (“Third Party Payor”) retained for the purpose of: (a)
calculating the production royalty (including any overriding royalty or “ORRI”) owed by TMC Capital or Petroteq Oil,
as the case may be, to holders of royalty interests under the Leases based on the sale or other disposition of Oil Products from
the Plant during such Reporting Quarter; and (b) developing a report (each a “Quarterly Royalty Report”), prepared for
and addressed to each holder of royalty interests under the Leases (including holders of ORRI reserved under the Leases or granted
in any valid instrument) showing: (i) the quantity of Oil Products sold from the Plant during such Reporting Quarter that is attributable
or returnable to each Lease; (ii) the applicable royalty rate under each Lease and in any instrument governing an ORRI; and (iii)
the production royalty (or overriding royalty) payable to such royalty owner, together with the quantity of Oil Products sold,
the price or prices received, and the associated transportation and other costs used in calculating the royalty under each Lease
or under any instrument governing an ORRI.

 

    7

     

    

 

	8.2.	The Third-Party Payor shall, with funds provided from the Special Account, transmit or mail each
Quarterly Royalty Report, together payment of applicable royalty, to owners of royalty interests under any applicable Lease and,
if applicable, under any instrument governing an ORRI.

 

		9.	Records & Audit
Rights.

 

	9.1.	Valkor shall maintain complete and accurate records of or reflecting: (a) the quantities of raw
oil-bearing ore and sediments mined, extracted, and produced from the Leases; and (b) all information and data required under this
Agreement of or reflecting the operations conducted at the Plant and the sale or disposition of Oil Products produced, saved and
sold from the Plant, including the information and data captured, stored and used in the generation of Quarterly Production Reports,
Quarterly Operating Reports, and Quarterly Royalty Reports. All such records shall contain sufficient information to permit Petroteq
to confirm the accuracy of any reports prepared by Valkor under this Agreement and shall be retained by Valkor continuously during
the term of this Agreement and for a period of five (5) years after the termination or expiration of this Agreement .

 

	9.2.	Petroteq shall have the right, at its sole cost and within a period of one hundred twenty (120)
days after the end of each calendar year during the term of this Agreement, to cause its accountants , auditors and other designated
representatives to inspect and audit the records (including banking records) maintained by Valkor with respect to the Services
or that are otherwise required to be maintained by Valkor under or in connection with this Agreement. Each such inspection and
audit may be scheduled by Petroteq at any time after giving at least ten (10) days prior written notice to Valkor and shall be
conducted during normal business hours at any location at which any of Valkor’s records may be located or maintained. Each such
inspection and audit shall be conducted for the purpose of verifying the accuracy of the reports generated or prepared by Valkor
under this Agreement and Valkor’s compliance with the terms of this Agreement.

 

	10.	Insurance.

 

	10.1.	Valkor shall maintain, at all times during the term of this Agreement and for a period of at least one (1) year after the expiration
or termination hereof, the following insurance coverage, with limits not less than the limits specified below:

 

	10.1.1.	Comprehensive General Liability Insurance (“CGL Insurance”), covering personal injury,
death or property damage resulting from each occurrence, on an unamended basis (including without limitation contractual liability,
pollution and completed operations/products coverage), with limits of no less than One Million Dollars ($1,000,000) per occurrence,
or the amount required by law, whichever is higher, with CG 2503 or its equivalent amending aggregate limits applying;

 

	10.1.2.	Business Auto Liability Insurance (“AL Insurance”), covering owned, non-owned and hire
motor vehicles, with a combined single limit of One Million Dollars ($1,000,000); and

 

		10.1.3.	Excess Liability Insurance (“Excess Insurance”),
which may be “following form” extending coverage in excess of the CGL Insurance and AL Insurance coverages, with limits
of not less than One Million Dollars ($1,000,000) combined single limit each occurrence and in the aggregate; and

 

    8

     

    

 

	10.1.4.	Workers’ Compensation Insurance (“WC Insurance”) as required by applicable law; and Employer’s
Liability Insurance (“EL Insurance”) with limits of One Million Dollars ($1,000,000) per accident or illness;

 

	10.2.	The insurance policies maintained by Valkor shall be issued by or through insurance carriers that
carry a financial rating of at least “A” with A.M. Best Co. or that are otherwise acceptable to Petroteq. Any deductible
or self-insurance retention of insurable risk shall be for Valkor’s account.

 

	10.3.	Valkor will furnish to Petroteq certificates of Insurance, signed by its insurance carriers, evidencing
the insurance required hereunder. Each certificate will provide that at least thirty (30) days prior written notice will be given
to Petroteq in the event of cancellation, suspension, or material change in the policy to which it relates. Notwithstanding anything
contained in this Agreement to the contrary, in no event will Petroteq have any liability to the insurers for payment of premiums.
It is expressly agreed and understood that the cost of premiums and the deductibles for insurance required by this Section 10 will
be borne by Valkor.

 

	10.4.	The insurance policies maintained by Valkor hereunder, and as reflected in the certificates of
insurance delivered annually to Petroteq, shall satisfy the following:

 

	10.4.1.	The liability insurance policies maintained by Valkor (CGL Insurance, AL Insurance, and Excess
Insurance) shall name Petroteq and its subsidiaries and affiliates (including TMC Capital and Petroteq Oil) as additional insureds
on either: (a) an ISO Form CG 20 10 11 85 (November 1985 edition) (covering both ongoing and completed operations); or (b) an ISO
Form CG 20 (post November 1985 edition) (ongoing operations) and an ISO Form 20 37 (post November 1985 edition) (completed operations);

 

	10.4.2.	All of the insurance policies maintained by Valkor (CGL Insurance, AL Insurance, Excess Insurance,
WC Insurance and EL Insurance) shall include clauses providing that each insurance carrier (including each issuer and underwriter)
shall waive its rights of recovery, under any theory of subrogation or otherwise, against Petroteq and its subsidiaries and affiliates
for claims, losses or liabilities within the scope of such policies;

 

	10.4.3.	Each insurance policy maintained by Valkor shall include clauses stating that the policy shall
be primary and not excess or non-contributing to any insurance policies carried by Petroteq or any of its subsidiaries or affiliates;
and

 

	10.4.4.	The policies and insurance certificates shall provide coverage in those nations, states or geographic
areas or territories as may be applicable to the locations where the Services will be performed by Valkor under the terms of this
Agreement.

 

	10.5.	Valkor hereby waives any right of recovery, under any theory of subrogation or otherwise, against
Petroteq and its subsidiaries for any claims, losses or liabilities within the scope insurance policies maintained by Valkor as
provided hereunder.

 

	10.6.	Unless the Parties agree otherwise, fifty percent (50%) of the premiums paid by Valkor for the
insurance policies maintained by Valkor hereunder shall be included in the “Operations Costs and Expenses” for the Plant
for purposes of Section 5.2 above.

 

    9

     

    

 

	11.	Entire Agreement and Waiver.

 

	11.1.	This Agreement constitutes the entire agreement between the Parties and shall supersede all prior
agreements and understandings between the Parties regarding the subject matter bereof. No representations or statements made by
any representative of Petroteq or of Valkor which are not stated herein shall be binding. No modification or amendment to this
Agreement shall be binding unless in writing and signed by a duly authorized representative of each Pa rt y.

 

	11.2.	No waiver of any breach of any of the provisions of this Agreement shall be deemed a waiver of
any preceding or succeeding breach of the same or any other provisions hereof. No such waiver shall be effective unless in writing
andthen only to the extent expressly set forth in writing. Failure of either Party to enforce rights under this Agreement shall
not constitute a waiver of such right s.

 

	12.	Compliance with Laws. Valkor agrees to comply with all applicable federal, state and local rules, regulations, orders
and laws in the performance of this Agreement.

 

	13.	Indemnity.

 

	13.1.	VALKOR AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD HARMLESS PETROTEQ AND EACH OF ITS SUBSIDIARIES
AND AFFILIATED COMPANIES, TOGETHER WITH EACH OF THEIR RESPECTIVE DIRECTORS, OFFICERS, MEMBERS, MANAGERS, EMPLOYEES, CONTRACTORS
AND AGENTS (COLLECTIVELY, THE “INDEMNITEES”), FREE AND HARMLESS FROM AND AGAINST ANY AND ALL LOSSES, CLAIMS, LIENS, DEMANDS
AND CAUSE OF ACTION OF EVERY KIND AND CHARACTER, INCLUDING BUT NOT LIMITED TO ANY AND ALL CLAIMS ASSERTED OR THREATENED BY ANY
THIRD PARTY ON ACCOUNT OF OR RESULTING FROM ANY OF THE FOLLOW ING:

 

		13.1.1.	DEATH, PERSONAL INJURY, AND DAMAGE TO PROPERTY ARISING
OUT OF, IN CONNECTION WITH OR RESULTING FROM WORK PERFORMED BYVALKOR OR PERSONNEL IN CONNECTION WITH THIS AGREEMENT, INCLUDING
ANY DEATH, INJURY OR PROPERTY DAMAGE CAUSED BY OR RESULTING FROM : (a) THE SOLE, CONCURRENT OR COMBINED NEGLIGENCE OR FAULT OF
VALKOR OR ANY OF ITS DIRECTORS, OFFICERS, MEMBERS, MANAGERS, CONTRACTORS, EMPLOYEES OR AGENTS, INCLUDNG ANY OF THE PERSONNEL;
OR (b) WHERE LIABILITY WITH OR WITHOUT FAULT IS STRICTLY IMPOSED BY OPERATION OF LAW WITHOUT REGARD TO FAULT;

 

	13.1.2.	ANY AND ALL COSTS AND EXPENSES AT THE PLANT ARISING AFTER THE EFFECTIVE DATE, INCLUDING SALARIES,
BENEFITS, TAXES AND WITHHOLDING REQUIREMENTS APPLICABLE TO PERSONNEL, WHETHER OR NOT SUCH LOSSES, CLAIMS, LIENS, DEMANDS AND CAUSE
OF ACTION RESULT FROM THE INDEMNITEES’ SOLE OR CONTRIBUTORY NEGLIGENCE;

 

	13.1.3.	ANY FAILURE BY VALKOR TO COMPLY WITH ANY APPLICABLE LAW, INCLUDING FEDERAL, STATE AND LOCAL HEALTH,
SAFETY AND ENVIRONMENTAL LAWS, RULES AND REGULATIONS THAT ARE APPLICABLE TO VALKOR OR ITS OPERATIONS AT THE PLANT AFTER THE EFFECTIVE
DATE; AND

 

	13.1.4.	ANY ENVIRONMENTAL CONDITION, INCLUDING THE RELEASE OF CHEMICALS, HYDROCARBONS OR OTHER SUBSTANCES
INTO THE ENVIRONMENT, CREATED OR CAUSED BY VALKOR IN CONNECTION WITH THE OPERATIONS OF THE PLANT AFTER THE EFFECTIVE DATE.

 

    10

     

    

 

	13.2.	Valkor’s indemnity obligations herein shall not limit, and shall not be limited by, any insurance
protection provided to Petroteq and its subsidiaries and affiliates under the insurance policies maintained by Valkor as required
under this Agreement.

 

	14.	Governing Law and Dispute Resolution; Survival.

 

	14.1.	THIS AGREEMENT SHALL BE GOVERNED, INTERPRETED AND ENFORCED IN ALL RESPECT UNDER AND IN ACCORDANCE
WITH THE LAWS OF THE STATED OF UTAH WITHOUT REGARD TO THE CONFLICTS OF LAWS OR CHOICE OF LAWS PRINCIPLES THEREOF.

 

	14.2.	 Any dispute, controversy or claim arising out of or
relating to this Agreement which the Parties are unable to resolve amicably shall be finally settled by binding arbitration in
Houston, Texas in accordance with the Commercial Arbitration rules of the American Arbitration Association. The award of the arbitrator
shall be binding and may be entered as a judgment in any court of competent jurisdiction.

 

	14.3.	Any termination or expiration of this Agreement shall not
affect or prejudice the rights and obligations contained in Sections 3, 4, 9, 11, 13 and 14 of this Agreement and all such rights
and obligations contained in such sections shall suNive any expiration or termination of this Agreement.

 

    11

     

    

 

IN WITNESS WHEREOF, the Parties have duly
executed this Agreement effective as of the Effective Date.

  

 

  

    12

     

    

 

EXHIBIT A

 

SCOPE OF PRIMARY SERVICES

 

	A.	Operations Management Services. Valkor will provide management and operations services (“Services”),
including without limitation, primary management and operations services at and with respect to the Plant as set forth in Section
1 of the Agreement and in this Exhibit A. as follows:

 

		1.	All operations conducted at and within the Plant, including the design, engineering, acquisition,
installation, operation and maintenance of equipment, tanks, units, pipelines facilities, vehicles and other property maintained
at the site of the Plant or used or operated in connection therewith.

 

		2.	Procurement of all property and materials to be used or installed at the Plant, including the supervision,
control and acquisition of: (a) raw mined ores, materials, feedstocks, and other materials; and (b) all power, water, natural gas,
sewage and other utilities that may be required, installed at or used by the Plant.

 

		3.	Storage, transportation and marketing and sale, in arms-length transactions, of all crude oil,
synthetic oil, bitumen oil and other hydrocarbon or petroleum products extracted, generated or produced at the Plant and the collection,
accounting and disbursement of all proceeds derived from the sale of disposition thereof in accordance with the requirements and
procedures set forth in the Agreement or otherwise developed between Valkor and Petroteq Oil.

 

		4.	Control all access to the Plant and oversee all security maintained or reasonably required at the
Plant in order to: (a) protect Personnel and Contractors located or working within the Plant; (b) protect and safeguard the Confidential
Information and all other non-public equipment, units, configurations, processes, methods, inventions, know-how and other trade
secrets of Petroteq or Valkor deployed, used or stored at the Plant; and (c) to protect the integrity of the Plant and its equipment,
tanks, units pipelines, facilities, vehicles and other property located at the Plant or used in connection with its operations,
including any security that may be reasonably required to safeguard the Plant from access by unauthorized persons or entities.

 

		5.	Such other Services as may be described or contemplated under the Agreement. including such Services
and the incidents thereto as may be reasonably required or necessary to aid Valkor in performing and discharging its duties under
the Agreement.

  

	B.	Mining and Extraction Services; the Leases. TMC Capital LLC (“TMC Capital”), an
indirect subsidiary of Petroteq, holds certain mineral rights under mineral leases in, at or near the vicinity of the Plant near
Vernal, Utah, including without limitation: (a) the mineral lease previously entered into by and between Asphalt Ridge, Inc. a
Utah corporation, as lessor, and TMC Capital, as lessee; (b) one or more mineral leases entered into by and between the Utah School
and Institutional Trust Lands Administration (SITLA), as lessor, and TMC Capital or Petroteq Oil, as lessee; and (c) such other
federal, state or private mineral lands, right or leases as TMC Capital or Petroteq Oil, as the case may be, may acquire or hold
at any time during the term of this Agreement (collectively, the “Leases” ). Under this Agreement, Valkor will assist
TMC Capital or Petroteq Oil, as the case may be, in providing or conducting, through such Personnel or Contractors as Valkor may retain from time to time, to conduct all exploratory, mining, extraction
and production operations on or with respect to the Leases and to arrange for mined, extracted and produced oil-bearing materials,
whether in solid, semi-solid or liquid form to be gathered, stockpiled and transported to the Plant for processing as contemplated
under this Agreement.

 

    13

     

    

 

	C.	Financial Management Services. Valkor has secured a licensee for the Petroteq process with
early payments to go towards the plant upgrade, operation, and to a limited degree make payments on past due accounts payable.
The plant is currently selling crushed rock for use in paving and will eventually the plant shall be producing petroleum products
for sale. Valkor shall establish a separate account (“Project Account”) the funds in which shall not be comingled with
funds from any other source and managed as follows:

 

		1.	All incoming relating to the Plant will be deposited in the Project
Account, including: (a) all funds paid by TomCo and/or any other licensee of the Oil Sands Technology; (b) all revenue from the
operation ofthe Plant; and (c) all sales of ore, oil or other products from the Plant premise s.

 

		2.	Valkor will provide reports of payables, receivables, income and payments as required in the Agreement
and will use funds per mutually agreed budgets to cover plant upgrade, plant operations, and past due payables as determined by
Valkor.

 

		3.	Valkor shall work with Petroteq with regards to compliance with debt forgiveness provisions on
any Payroll Protection funds received from the US government. The Parties will agree on a spreadsheet of all past due accounts
payable and periodic future payments (such as continuing leases) that are due and Valkor’s responsibility will be limited to addressing
those obligations, unless voluntarily agreed by Valkor to add or incur additional obligations. Valkor anticipates that at least
Fifty Thousand Dollars ($50,000) will be made available towards accounts payable .

 

		4.	Valkor will endeavor to make payments on accounts payable but takes no responsibility for any past
due payables or any newly generated payable, except where the Parties specifically agree otherwise. Petroteq shall not make, attempt
to make, nor commit to make any payments or additional financial commitments on behalf of the Plant and no such payments shall
be made from the Project Account except as approved in advance in writing by Valkor.

 

		5.	Provided that funds are available, Petroteq shall be due a minimum of Five Hundred Thousand Dollars
($500,000) from the Project Account within ninety (90) days after the Effective Date of the Agreement for Petroteq to use for its
own purposes.

 

		6.	Within thirty (30) days after the expiration or termination of the Agreement, funds in the Project
Account shall be used to pay Valkor all amounts owed to Valkor under the Agreement and any remaining funds shall be transferred
to Petroteq.

 

    14

     

    

 

EXHIBIT B

 

PROFESSIONAL SERVICES RATE SHEET - SPECIAL ASSIGNMENTS

  

	CATALOGUING	 	RATE PER HOUR	 
	Senior Principal Engineer/Project Manager	 	$	195.00	 
	Principal Engineer	 	$	180.00	 
	Senior Staff Engineer /Lead Engineer	 	$	165.00	 
	Staff Engineer	 	$	147.00	 
	Senior Engineer	 	$	130 .00	 
	Engineer	 	$	116.00	 
	Lead Design	 	$	95
..00	 
	Senior Designer	 	$	75.00	 
	Draftsman	 	$	60.00	 
	Project Controls	 	$	SO.DO	 
	Clerical	 	$	38.00	 

  

	SOFTWARE	 	COST PER HOUR	 
	SACS/StruCAD	 	$	23 .00	 
	ANSYS	 	$	1
7.00	 
	AQWA	 	$	26.00	 
	MOSES/HARP	 	$	22
..00	 
	Orcaflex/Flexcom	 	$	23.00	 
	Solidwork	 	$	10.00	 
	AutoCAD	 	$	8.00	 

 

 

15

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