Document:

exv10w1

 

EXHIBIT 10.1

ASSET PURCHASE AGREEMENT

by and among

Enterprise Products Operating L.P.

as Buyer

and

Ferrellgas, L.P. and Ferrellgas, Inc.

as Sellers

June 22, 2005

 

 

TABLE OF CONTENTS

Page

ARTICLE I

PURCHASE AND SALE

	 	 	 	 	 	 	 
	1.1

	 	Purchase and Sale of Assets
	 	 	1	 
	1.2

	 	Excluded Assets
	 	 	2	 
	1.3

	 	Assumption of Obligations
	 	 	3	 
	1.4

	 	Excluded Obligations and Liabilities
	 	 	4	 
	1.5

	 	Nonassignable Permits or Contracts
	 	 	5	 
	1.6

	 	Consideration
	 	 	5	 
	1.7

	 	Inventory
	 	 	5	 
	1.8

	 	Forward Sales and Purchases
	 	 	6	 
	1.9

	 	Closing
	 	 	7	 
	1.10

	 	Post-Closing Adjustments For First Day of Month
	 	 	8	 
	1.11

	 	Post-Closing Adjustments For Any Day Other than First Day of Month
	 	 	11	 
	1.12

	 	Price Allocation
	 	 	12	 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

	 	 	 	 	 	 	 
	2.1 

	 	Organization and Existence
	 	 	12	 
	2.2 

	 	Authority and Approval
	 	 	12	 
	2.3 

	 	No Conflict
	 	 	13	 
	2.4 

	 	Litigation; Regulations
	 	 	13	 
	2.5 

	 	No Default
	 	 	13	 
	2.6 

	 	Permits
	 	 	14	 
	2.7 

	 	Financial Information
	 	 	14	 
	2.8 

	 	No Material Adverse Effect
	 	 	14	 
	2.9 

	 	Taxes
	 	 	14	 
	2.10

	 	Intellectual Property
	 	 	15	 
	2.11

	 	Contracts
	 	 	15	 
	2.12

	 	Real Property
	 	 	15	 
	2.13

	 	Title Other than Real Property
	 	 	17	 
	2.14

	 	Fixed Assets
	 	 	17	 
	2.15

	 	Environmental Matters
	 	 	17	 

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TABLE OF CONTENTS

(continued)

Page

	 	 	 	 	 	 	 
	2.16

	 	Insurance
	 	 	18	 
	2.17

	 	Business Employees
	 	 	18	 
	2.18

	 	Labor Relations
	 	 	18	 
	2.19

	 	Benefit Plans
	 	 	18	 
	2.20

	 	Solvency
	 	 	19	 
	2.21

	 	Bankruptcy
	 	 	19	 
	2.22

	 	Brokerage Arrangements
	 	 	19	 
	2.23

	 	Sufficiency of Assets
	 	 	19	 
	2.24

	 	Inventory
	 	 	20	 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE BUYER

	 	 	 	 	 	 	 
	3.1

	 	Organization and Existence       
	 	 	20	 
	3.2

	 	Authority and Approval           
	 	 	20	 
	3.3

	 	No Conflict                      
	 	 	20	 
	3.4

	 	Litigation                       
	 	 	21	 
	3.5

	 	Funds Available                  
	 	 	21	 
	3.6

	 	No Material Adverse Effect       
	 	 	21	 
	3.7

	 	Bankruptcy                       
	 	 	21	 
	3.8

	 	Brokerage Arrangements           
	 	 	21	 

ARTICLE IV

ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS

	 	 	 	 	 	 	 
	4.1 

	 	Certain Changes                                          
	 	 	21	 
	4.2 

	 	Operations                                               
	 	 	22	 
	4.3 

	 	Buyer Notification                                       
	 	 	22	 
	4.4 

	 	Schedules                                                
	 	 	23	 
	4.5 

	 	Access                                                   
	 	 	23	 
	4.6 

	 	Antitrust Notification; Other Reporting Requirements     
	 	 	23	 
	4.7 

	 	Reasonable Business Efforts                              
	 	 	23	 
	4.8 

	 	Employees and Employee Benefits                          
	 	 	24	 
	4.9 

	 	Post-Closing Further Assurances                          
	 	 	26	 
	4.10

	 	Transition Services                                      
	 	 	26	 

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TABLE OF CONTENTS

(continued)

Page

	 	 	 	 	 	 	 
	4.11

	 	Storage Agreements          
	 	 	29	 
	4.12

	 	Throughput Agreement        
	 	 	29	 
	4.13

	 	Leases                      
	 	 	29	 

ARTICLE V

CONDITIONS TO CLOSING

	 	 	 	 	 	 	 
	5.1

	 	Conditions to the Obligation of Buyer            
	 	 	29	 
	5.2

	 	Conditions to the Obligation of Sellers          
	 	 	30	 

ARTICLE VI

INVESTIGATION; LIMITATIONS

	 	 	 	 	 	 	 
	6.1

	 	Independent Investigation          
	 	 	30	 
	6.2

	 	Survival                           
	 	 	31	 

ARTICLE VII

TERMINATION

	 	 	 	 	 	 	 
	7.1

	 	Events of Termination              
	 	 	31	 
	7.2

	 	Effect of Termination              
	 	 	31	 

ARTICLE VIII

INDEMNIFICATION

	 	 	 	 	 	 	 
	8.1 

	 	Indemnification of Sellers                                    
	 	 	32	 
	8.2 

	 	Indemnification of Buyer                                      
	 	 	32	 
	8.3 

	 	Demands                                                       
	 	 	32	 
	8.4 

	 	Right to Contest and Defend                                   
	 	 	33	 
	8.5 

	 	Cooperation                                                   
	 	 	33	 
	8.6 

	 	Right to Participate                                          
	 	 	33	 
	8.7 

	 	Payment of Damages                                            
	 	 	34	 
	8.8 

	 	Limitations on Indemnification                                
	 	 	34	 
	8.9 

	 	Sole Remedy                                                   
	 	 	34	 
	8.10

	 	General Limitation of Damages                                 
	 	 	34	 
	8.11

	 	No Waiver Relating to Claims for Fraud/Willful Misconduct     
	 	 	34	 

ARTICLE IX

MISCELLANEOUS

	 	 	 	 	 	 	 
	9.1

	 	Expenses and Payments                 
	 	 	35	 

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TABLE OF CONTENTS

(continued)

Page

	 	 	 	 	 	 	 
	9.2 

	 	Notices                                           
	 	 	35	 
	9.3 

	 	No Negotiations                                   
	 	 	36	 
	9.4 

	 	Governing Law                                     
	 	 	36	 
	9.5 

	 	Public Statements                                 
	 	 	36	 
	9.6 

	 	Entire Agreement; Amendments and Waivers          
	 	 	36	 
	9.7 

	 	Binding Effect and Assignment                     
	 	 	37	 
	9.8 

	 	Severability                                      
	 	 	37	 
	9.9 

	 	Headings and Schedules                            
	 	 	37	 
	9.10

	 	Multiple Counterparts                             
	 	 	37	 

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SCHEDULES

	 	 	 
	Schedule 1.1 

	 	Asset Schedule                                     

	Schedule 1.8(a) 

	 	Matched Forward Sales and Forward Purchases

	Schedule 1.8(b) 

	 	Forward Sale Margin

	Schedule 1.10(a)

	 	Indices for Inventories

	Schedule 1.10(d)

	 	Well Emptying Procedures

	Schedule 1.11(b)

	 	Format of Closing Month EBITDA

	Schedule 2.3 

	 	Conflicts

	Schedule 2.7 

	 	Financial Information

	Schedule 2.11 

	 	Contracts

	Schedule 2.12 

	 	Title Defects and Encumbrances

	Schedule 2.15 

	 	Environmental

	Schedule 2.17 

	 	Business Employees

	Schedule 2.19 

	 	Plans

	Schedule 2.24 

	 	Inventory Specifications

EXHIBITS

	 	 	 
	Exhibit A-1 

	 	Adamana Storage Agreement
	Exhibit A-2 

	 	Hutchinson Storage Agreement
	Exhibit A-3 

	 	Moab Storage Agreement
	Exhibit B-1 

	 	Inver Grove Heights Throughput Agreement
	Exhibit B-2 

	 	Jackson Throughput Agreement
	Exhibit C-1 

	 	Inver Grove Lease (Blue Rhino)
	Exhibit C-2 

	 	Inver Grove Lease (Retail)
	Exhibit C-3 

	 	Aberdeen Lease

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INDEX OF DEFINED TERMS

	 	 	 	 	 
	Above-Ground Retained Inventory
	 	 	5	 
	Accounting Firm
	 	 	11	 
	Adjusted Value
	 	 	7	 
	Affiliate
	 	 	12	 
	Agreement
	 	 	1	 
	Apportionments
	 	 	9	 
	Asset Schedule
	 	 	1	 
	Assets
	 	 	1	 
	Assumed Obligations
	 	 	3	 
	Business
	 	 	1	 
	Business Employees
	 	 	18	 
	Buyer
	 	 	1	 
	Buyer Employee Benefit Plans
	 	 	24	 
	Buyer Parties
	 	 	32	 
	Buyer’s Cafeteria Plan
	 	 	26	 
	Buyer’s Defined Contribution Plan
	 	 	25	 
	Claim
	 	 	32	 
	Closing
	 	 	7	 
	Closing Date
	 	 	7	 
	Closing Month EBITDA
	 	 	11	 
	Closing Month Receivables
	 	 	2	 
	Code
	 	 	12	 
	Confidentiality Agreement
	 	 	23	 
	Constituent Documents
	 	 	36	 
	Contracts
	 	 	15	 
	Coverage Period
	 	 	26	 
	Current Receivables
	 	 	8	 
	Damages
	 	 	32	 
	debt
	 	 	19	 
	Easements
	 	 	15	 
	Employee Benefit Plans
	 	 	18	 
	Encumbrances
	 	 	13	 
	Environmental Claims
	 	 	17	 
	Environmental Law
	 	 	17	 
	Environmental Permits
	 	 	17	 
	ERISA
	 	 	18	 
	Excluded Assets
	 	 	2	 
	Excluded Liabilities
	 	 	4	 
	Feedstock Operations
	 	 	1	 
	Fixed Price Sale Customers
	 	 	6	 
	Force Majeure
	 	 	28	 

	 	 	 	 	 
	Forward Purchases
	 	 	6	 
	Forward Sale Margin
	 	 	7	 
	Forward Sales
	 	 	6	 
	General Partner
	 	 	1	 
	Governmental Body
	 	 	13	 
	Hazardous Substances
	 	 	17	 
	Holding Costs
	 	 	6	 
	HSR Act
	 	 	13	 
	Initial Adjustement Statement
	 	 	8	 
	Initial Adjustment
	 	 	8	 
	Knowledge of Sellers
	 	 	13	 
	Law
	 	 	2	 
	Laws
	 	 	2	 
	Material Adverse Effect
	 	 	12	 
	Notice
	 	 	35	 
	Operating Statement Date
	 	 	14	 
	Partnership
	 	 	1	 
	Permits
	 	 	14	 
	Permitted Encumbrances
	 	 	16	 
	Person
	 	 	3	 
	Purchase Price
	 	 	5	 
	Real Property
	 	 	15	 
	Seller Parties
	 	 	32	 
	Sellers
	 	 	1	 
	Sellers’ Cafeteria Plan
	 	 	26	 
	Sellers’ Qualified Plans
	 	 	25	 
	Taxes
	 	 	14	 
	Terminal Inventory
	 	 	5	 
	Terminals
	 	 	1	 
	Third Party Location Inventory
	 	 	6	 
	Transferred Employee
	 	 	24	 
	Transferred Inventory
	 	 	6	 
	Transit Inventory
	 	 	6	 
	Transition Services
	 	 	26	 
	Underground Inventory
	 	 	6	 
	Underground Purchased Inventory
	 	 	6	 
	Underground Retained Inventory
	 	 	6	 
	Underground Storage Facilities
	 	 	1	 
	Underground Transferred Inventory
	 	 	6	 
	Wholesale Operations
	 	 	1	 

-vi-

 

 

ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (“Agreement”) is made and entered into as of June 22, 2005, by
and among Ferrellgas, L.P., a Delaware limited partnership (the “Partnership”), Ferrellgas, Inc., a
Delaware corporation and the general partner of the Partnership (the “General Partner,” and
together with the Partnership, the “Sellers”), and Enterprise Products Operating L.P., a Delaware
limited partnership (the “Buyer”).

W I T N E S S E T H:

     WHEREAS, Buyer desires to acquire specified assets of Sellers related to:

     (a) underground storage facilities in Adamana, Arizona, Hutchinson, Kansas and Moab, Utah
(“Underground Storage Facilities”), together with complementary feedstock operations (“Feedstock
Operations”); and

     (b) rail or pipeline to truck terminals, as well as such terminals, in Inver Grove Heights and
Jackson, Minnesota, and Sylva and Aberdeen, North Carolina (“Terminals”), together with
complementary wholesale propane marketing operations (“Wholesale Operations”) (the Underground
Storage Facilities, Feedstock Operations, Terminals and Wholesale Operations are referred to herein
as the “Business”);

and Sellers have agreed to sell those assets to Buyer on the terms and subject to the conditions
hereinafter set forth;

     NOW, THEREFORE, in consideration of the premises and the respective representations,
warranties, covenants, agreements and conditions contained herein, the parties hereto agree as
follows:

Article I

PURCHASE AND SALE

     1.1 Purchase and Sale of Assets. Subject to the terms and conditions of this
Agreement, Buyer agrees to purchase from Sellers, and Sellers agree to sell, convey, transfer,
assign and deliver, and cause to be sold, conveyed, transferred, assigned and delivered, the Assets
to Buyer on the Closing Date against the receipt by Sellers of the Purchase Price. The term
“Assets” means all of the Partnership’s rights, title and interests in and to the assets related to
the Business as specifically set forth on Schedule 1.1 (the “Asset Schedule”) and as follows:

    (a) to the extent permitted by applicable Law and subject to the provisions of Section
1.5, an original or duplicate copy of all sales and business records, files, product
specifications, blueprints, drawings and correspondence; engineering, manufacturing,
maintenance, operating and production records; personnel records with respect to the
Transferred Employees; customer, supplier and circulation lists and records; sales and
marketing material; and all other permits, books and records including without limitation,
records related to compliance with or which are required to be maintained in accordance
with any applicable Laws (including applicable Environmental Laws), and in each case which
relate to the Business and/or Assets; as used herein, the terms “Law” and “Laws” shall mean
all applicable federal, state, and local constitutions, laws, statutes, treaties, common
law, ordinances, regulations, rules, permits, licenses, guidelines, requests for
information, injunctions, judgments, decrees, or orders promulgated or issued by a
Governmental Body;

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    (b) all rights of Sellers under Permits and franchises issued by any Governmental Body
and used in connection with any of the Assets, including those listed on Schedule 1.1;

    (c) all rights under all covenants and warranties relating to the Assets, express or
implied (including written title warranties and manufacturers’, suppliers’ and contractors’
warranties), that have heretofore been made by third party manufacturers, suppliers and
contractors;

    (d) all rights in connection with the Current Receivables, including proceeds thereof
(other than the proceeds referenced in Section 1.10(b) and remitted as part of the Initial
Adjustment);

    (e) all other equipment, goods, and intangibles, and real and personal property that is
used directly by Sellers or any of Sellers’ Affiliates in the operation of the Business or
any of the Assets;

    (f) all prepayments and deposits as specifically described in Sections 1.10(a)(9) and
1.10(a)(10);

    (g) the Terminal Inventory (not including the Above-Ground Retained Inventory), the
Underground Purchased Inventory, the Transit Inventory and the Third Party Location
Inventory;

    (h) all rights from pipeline allocations earned on the Mid-America Pipeline System
related to the Wholesale Operations; and

    (i) all receivables arising as a result of the operation of the Business or the Assets
during the month in which the Closing occurs whether or not collected (“Closing Month
Receivables”), including proceeds thereof (other than the proceeds referenced in Section
1.10(b) and remitted as part of the Initial Adjustment).

     1.2 Excluded Assets. The Assets include only those assets specifically listed on the
Asset Schedule or described in Section 1.1. The Assets do not include any asset not specifically
listed on the Asset Schedule or described in Section 1.1, including, but not limited to, the
following (the “Excluded Assets”):

    (a) all cash on hand, on deposit or in transit and arising out of the operation of the
Business through the day immediately proceeding the Closing Date and any bank accounts of
Sellers;

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    (b) all of the Employee Benefit Plans;

    (c) causes of action and third-party indemnities, policies of insurance, fidelity,
surety or similar bonds and the coverage afforded thereby other than those relating to the
Current Receivables;

    (d) any books and records of Sellers (including, but not limited to, minute books and
governance documents of Sellers) other than those specifically relating to the Assets and
the operations thereof including those identified on the appropriate schedule hereto;

    (e) subject to Section 1.5 below and excluding the Federal Trade Commission or the
Department of Justice, each Permit or Contract set forth on the Asset Schedule that requires
the consent to assignment by any individual, corporation, partnership, firm, joint venture,
association, joint-stock company, limited liability company, limited liability partnership,
trust, unincorporated organization, Governmental Body or other entity (any of which, a
“Person”) other than Sellers or their Affiliates and which consents have not been obtained
on or before the Closing Date;

    (f) any Tax refund related to the Assets or the Business attributable to periods ending
on or prior to the Closing Date;

    (g) all of Sellers’ right, title and interest in their names, logos and trademarks;
provided, however, effective upon the Closing Date, the Sellers and the Sellers’ Affiliates
hereby grant to the Buyer a nonexclusive, nontransferable, royalty-free license, without
right of sublicense, to use, solely in the Business as it is presently conducted but not in
connection with the marketing of the Business, any and all trademarks, service marks, and
trade names owned by the Sellers solely to the extent appearing on existing inventory,
advertising materials and the Assets as of the Closing Date (such as signage, vehicles, and
equipment) for a period of three (3) months from the Closing Date;

    (h) any of Sellers’ above-ground storage tanks at third party locations identified in
writing by Buyer to Sellers prior to Closing; and

    (i) the Above-Ground Retained Inventory and the Underground Retained Inventory.

     1.3 Assumption of Obligations. Subject to the indemnification rights in favor of
Buyer in Section 8.2, upon the sale of the Assets by Sellers, Buyer assumes and agrees to pay,
perform and discharge, in a timely manner and in accordance with the terms thereof, from and after
the Closing Date any and all liabilities, obligations and Damages of Sellers in respect of the
following (collectively, the “Assumed Obligations”):

    (a) the Permits and Contracts properly transferred and assigned to Buyer hereunder in
conformity with the provisions of such Permits and Contracts;

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    (b) actual or alleged violations of, or liability or Damages under, Environmental Laws
or Environmental Permits or to Environmental Claims, related to conditions, acts or
omissions occurring on or after the Closing;

    (c) the ownership or operation of the Business and the Assets on or after Closing;

    (d) to the extent specifically provided in Section 4.8, liabilities to or with respect
to the Transferred Employees; and

    (e) transfer, sales, use, and other similar Taxes arising in connection with the
transactions contemplated by this Agreement.

The assumption by Buyer of the Assumed Obligations shall not enlarge any rights or remedies of any
third parties under any Contracts with Sellers. Nothing herein prevents Buyer from contesting in
good faith any of the Assumed Obligations. Sellers agree to satisfy and discharge all the
liabilities, obligations and Damages of Sellers relating to their respective businesses and which
are not assumed by Buyer pursuant to the terms of this Agreement, whether known as of the date
hereof or thereafter determined.

     1.4 Excluded Obligations and Liabilities. It is expressly understood and agreed that,
except as specifically provided in this Agreement, Buyer is not obligated to pay, perform or
discharge any debt, obligation, cost, expense or liability of Sellers, whether absolute or
contingent, known or unknown (“Excluded Liabilities”), including, but not limited to debts,
obligations, costs, expenses and liabilities:

    (a) related to any of the Excluded Assets;

    (b) for the accounts payable related to the Business (except such accounts payable
arising from the Assumed Obligations after Closing);

    (c) for any Taxes relating to the Sellers’ business or the Assets for taxable periods
ending on or prior to the Closing Date (other than those Taxes specifically assumed by Buyer
pursuant to Section 1.3);

    (d) for any of the liabilities or expenses of Sellers incurred in the negotiation of
and carrying out of their respective obligations under this Agreement;

    (e) actual or alleged violations of, or liability or Damages under, Environmental Laws
or Environmental Permits or to Environmental Claims, related to conditions, acts or
omissions occurring before the Closing;

    (f) the ownership or operation of the Business and the Assets prior to Closing;

    (g) except as specifically provided in Section 4.8, any liabilities to or with respect
to employees of Sellers or under or with respect to Employee Benefit Plans; or

-4-

 

    (h) for liabilities and obligations of Sellers to Buyer created by this Agreement.

Sellers agree to satisfy and discharge all the liabilities of Sellers relating to their respective
businesses and which are not assumed by Buyer pursuant to the terms of this Agreement.

     1.5 Nonassignable Permits or Contracts. If any Permits or Contracts to be included
in the Assets are not by their respective terms assignable, Sellers agree to use their
reasonable best efforts promptly to obtain, or cause to be obtained, prior to the Closing Date,
any written consents necessary to convey to Buyer the benefit thereof, it being understood that
such reasonable best efforts shall not include any requirement to offer or grant financial
accommodations to any third party or to remain secondarily liable with respect to any such
Permits or Contracts. Buyer shall cooperate with Sellers in such manner as may be reasonably
requested in connection therewith, including without limitation, active participation in visits
to and meetings, discussions and negotiations with all Persons with the authority to grant or
withhold consent. To the extent that any such consents cannot be obtained on or before the
Closing Date, Sellers and Buyer will use their reasonable best efforts to take such actions as
may be possible without violation or breach of any such nonassignable Permits or Contracts to
effectively grant Buyer the economic benefits of, and impose upon Buyer the economic burdens of,
such Permits and Contracts and the assignment shall not become effective unless and until such
consent has been obtained, waived or is no longer required. When such consent has been
obtained, waived or is no longer required, the applicable assignment shall automatically become
effective without the need for any further action on the part of Sellers, Buyer or any other
Person and without payment of any further consideration.

     1.6 Consideration. On the terms and subject to the conditions of this Agreement, on
the Closing Date, Buyer will pay to Sellers in consideration of the transfer by Sellers of the
Assets an amount equal to One Hundred Forty Four Million Dollars ($144,000,000) in cash, subject to
adjustment as provided in Section 1.10 (the “Purchase Price”).

     1.7 Inventory.

    (a) At a reasonable time selected by Sellers, with reasonable notice to Buyer, on the
day immediately preceding the Closing Date:

      (1) Sellers shall conduct a physical inventory as of such date with respect to
the propane owned by Sellers at the Terminals stored above-ground in conjunction
with the Business (the “Terminal Inventory”), which includes a number of gallons of
propane owned by Sellers to be retained by Sellers, for which Sellers shall notify
Buyer of such amount at least three days prior to Closing (the “Above-Ground
Retained Inventory”); Buyer shall be permitted to have a representative present for
such inventory; if Buyer’s representative is present, such representative and
Sellers shall agree on such physical inventory, or, if Buyer’s representative is not
present, Sellers’ physical inventory shall be deemed correct; such Terminal
Inventory shall be deemed final among the parties and not subject to any claim by Buyer with respect to the accuracy of the
volume of such Terminal Inventory pursuant to this Agreement;

-5-

 

      (2) Sellers shall conduct an inventory of propane and all other products in
Sellers’ custody at the Underground Storage Facilities based upon Sellers’ records
(the “Underground Inventory”) categorized by location, product and owner, including
(i) inventories owned by Sellers in conjunction with the Feedstock Operations and
the Wholesale Operations (the “Underground Purchased Inventory”), (ii) propane owned
by Sellers to be retained by Sellers (the “Underground Retained Inventory”), and
(iii) the feedstock or product inventory owned by any third party at the Underground
Storage Facilities (the “Underground Transferred Inventory”);

      (3) Sellers shall conduct an inventory of propane and all other products owned
by Sellers in conjunction with the Feedstock Operations or the Wholesale Operations
in transit based upon Sellers’ shipping, inventory and rail records (the “Transit
Inventory”);

      (4) Sellers shall conduct an inventory of propane and all other products owned
by Sellers in conjunction with the Feedstock Operations or the Wholesale Operations
at third party storage locations based upon Sellers’ and each applicable third
party’s inventory records, to the extent such third party delivered such records to
Sellers (the “Third Party Location Inventory”); and

      (5) Sellers shall conduct an inventory of any feedstock or product inventory
owned by any third party which is located at or within any of the Assets (the
“Transferred Inventory”) other than the Underground Transferred Inventory.

    (b) At Closing, the Terminal Inventory, the Underground Inventory, the Transit
Inventory and the Third Party Location Inventory shall be transferred to Buyer’s custody or
ownership, as applicable, including (1) the Above-Ground Retained Inventory, (2) the
Underground Retained Inventory that shall be subject to the underground storage contracts
attached hereto as Exhibits A-1, A-2 and A-3 to be executed at Closing, and (3) the
Transferred Inventory.

     1.8 Forward Sales and Purchases. 

    (a) As of the date of this Agreement, Sellers have entered into fixed price sales
obligations for delivery of product to third-party customers in connection with the Business
(“Fixed Price Sale Customers”) on or after the date of this Agreement (“Forward Sales”). As
of the date of this Agreement, Sellers have entered into fixed price purchase obligations
for receipt of product in connection with the Business on or after the date of this
Agreement (“Forward Purchases”). Schedule 1.8(a) lists all Forward Sales and Forward
Purchases that can be matched (in the aggregate) and indicates the resulting dollar per
gallon margin on those matched transactions. Schedule 1.8(a) also includes assumptions
related to the interest and storage costs expected to be incurred in connection with the
performance of those contracts (“Holding Costs”), to the extent the
product delivery dates do not match. Buyer agrees that the aggregate margin for the
Forward Sales and Forward Purchases listed on Schedule 1.8(a) is acceptable and that for any
such Forward Sales and Forward Purchases that are not scheduled to close prior to the
Closing Date shall be deemed to be Contracts and included as part of the Asset Schedule.
Sellers shall update Schedule 1.8(a) at the Closing to include only the Forward Sales and
Forward Purchases applicable to the period on and after the Closing Date.

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    (b) Schedule 1.8(b) lists all Forward Sales that are not matched against Forward
Purchases as of the date of this Agreement. Schedule 1.8(b) also lists for each such
Forward Sale the (1) the sales price, (2) the delivery location at which risk of loss passes
and to which freight is paid, (3) the location of inventory that hedges that sale, (4) all
fees, tariffs, freight element and other delivery costs to be paid to deliver the product by
the Sellers, (5) the Holding Costs from the date of such Forward Sale until the time of
product delivery, (6) the margin of revenue as agreed by Buyer and Sellers, (7) the market
value for each inventory location as per Schedule 1.10(a), and (8) the sales volume. In the
event that a sufficient quantity of product is stored in multiple locations, then the
location of the inventory being held for the Forward Sales shall be deemed as the one that
has the lowest overall delivered cost to satisfy the sale. For purposes of this Agreement,
the “Adjusted Value” of each Forward Sale set forth on Schedule 1.8(b) shall be equal to the
result of the following calculation for such Forward Sale:

      (i) the sales price in clause (1) above; minus

      (ii) the sum of clauses (4), (5), (6) and (7) above; multiplied by

      (iii) the sales volume in clause (8) above.

If Sellers desire to enter into any additional Forward Sales prior to Closing, Sellers shall
deliver to Buyer all relevant information relating to each such additional Forward Sale,
including, without limitation, the information required to be set forth on Schedule 1.8(b)
with respect to such Forward Sale and may not enter into such Forward Sale without the prior
written consent of Buyer. At Closing, Schedule 1.8(b) shall be amended to include all
Forward Sales approved by Buyer pursuant to this Section 1.8(b), all of which shall be
deemed to be Contracts and included as part of the Asset Schedule. Sellers shall update
Schedule 1.8(b) at the Closing to include only the Forward Sales approved by Buyer under
this Section 1.8(b) and applicable to the period on and after the Closing Date.

     1.9 Closing. Subject to the satisfaction of the conditions to closing set forth in
Article V, the closing of the acquisition of the Assets contemplated hereby (the “Closing”) shall
be held at the offices of Mayer, Brown, Rowe & Maw LLP at 700 Louisiana, Suite 3600, Houston, Texas
77002 on or before the seventh business day following the satisfaction of the conditions set forth
in Article V commencing at 9:00 a.m., Houston time, or such other place, date and time as may be
mutually agreed upon by the parties hereto. The “Closing Date,” as referred to herein, shall mean
the date of the Closing.

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     1.10 Post-Closing Adjustments For First Day of Month. If the Closing Date is the
first day of the month, the following shall apply:

    (a) Within fifteen (15) business days after Closing, Sellers shall deliver to Buyer,
for Buyer’s review, to account for the initial adjustment to the Purchase Price for the
Assets listed in Sections 1.1(d), (f), (g) and (i) (the “Initial Adjustment”), all relevant
information to account for the Initial Adjustment, including the following items as of 11:59
p.m. on the day preceding the Closing Date and a calculation of the Initial Adjustment
together with the relevant supporting documentation (the “Initial Adjustment Statement”):

      (1) a list setting forth a description and amount of all accounts receivable of
the Business as of the last day of the month immediately preceding the month in
which the Closing occurs with aging of 90 days or less (the “Current Receivables”);

      (2) the written results of the Terminal Inventory, categorized by product type
and by location (including the Above-Ground Retained Inventory);

      (3) the written results of the Underground Inventory, including lists:

        (i) categorized by location, product and owner, including the
Underground Purchased Inventory, the Underground Retained Inventory and the
Underground Transferred Inventory;

        (ii) categorized by the total number of barrels, net of the shrink
deduction (which shall be deemed to be two percent (2%) for each of the
Adamana and Moab locations and one percent (1%) for the Hutchinson
location), delivered to each well at an Underground Storage Facility for the
period from the date that the well was last emptied prior to the Closing
Date until 11:59 p.m. on the day preceding the Closing Date; and

        (iii) setting forth the Underground Inventory in each well at the
Underground Storage Facilities;

      (4) the written results of the Transit Inventory categorized by delivery
location and product;

      (5) the written results of the Third Party Location Inventory categorized by
location and product;

      (6) a list of the following items to be apportioned as of 11:59 p.m. as of the
last day of the month immediately preceding the month in which the Closing occurs:
(i) property taxes, utility charges and other state, county and municipal taxes and
assessments and charges affecting the Assets; (ii) rents and other payments under
any of the Contracts; and (iii) such other items as are customarily apportioned in
connection with the sale of similar property, all such
items prior to such time being for the account of Sellers, as applicable, and
all such items after such time being for the account of Buyer (the
“Apportionments”);

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      (7) the market value (as determined below) of the Terminal Inventory (less the
Above-Ground Retained Inventory), the Underground Purchased Inventory, the Transit
Inventory and the Third Party Location Inventory as set forth in the lists delivered
pursuant to Section 1.10(a)(2) through (5); the market value shall be determined by
multiplying the number of barrels of the applicable product type at each location
(or the delivery point for the Transit Inventory, unless in transit to a customer in
which case the location for calculation shall be the applicable Terminal or
Underground Storage Facility from which such Transit Inventory originated) by the
applicable index price indicated on Schedule 1.10(a) determined as the average of
such prices as of the Closing Date and the two (2) business days immediately
following the Closing Date, which index price shall also include where applicable,
pipeline, rail and truck freight associated with inventory (corrected in accordance
with industry standards); provided, however, that Sellers shall pay for any freight
charges associated with transporting the Transit Inventory to be delivered to a
Terminal or the Underground Storage Facilities and Buyer shall pay for any freight
charges associated with transporting the Transit Inventory to be delivered to a
customer;

      (8) the amount of any Apportionments as set forth in the list delivered
pursuant to Section 1.10(a)(6) already paid by Sellers relating to periods after the
last day of the month immediately preceding the month in which the Closing occurs
less the amount of any Apportionments as set forth in the list delivered pursuant to
Section 1.10(a)(6) not paid by Sellers after the last day of the month immediately
preceding the month in which the Closing occurs relating to periods prior to the
month in which the Closing occurs; provided, however, that if it is later determined
that any such Apportionment was not accurate, such items shall be apportioned or
reapportioned, as the case may be, as soon as practicable after payment under
Section 1.10(b) or the date on which the Apportionment error is discovered, as
applicable, but in no event more than 120 days after the Closing Date or, in the
case of property taxes, 30 days after the end of the calendar year;

      (9) an amount equal to all costs and expenditures actually incurred and paid by
Sellers or Sellers’ Affiliates as of the last day of the month immediately preceding
the month in which the Closing occurs under the Contracts, the Permits or the
applicable agreements entered into by Sellers in the ordinary course of business, or
other similar arrangements or agreements and, in the absence of such Contracts,
Permits or agreements, such costs and expenditures of the sort customarily billed
thereunder, necessarily incurred and paid by Sellers directly and solely in
connection with the ownership, maintenance or operation of the Assets, but for which
the third party obligated to Sellers under any such agreement or arrangement has not
fully performed as of the last day of the month immediately preceding the month in
which the Closing occurs;

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      (10) an amount equal to all amounts received by Sellers as of the last day of
the month immediately preceding the month in which the Closing occurs under the
Contracts, the Permits or the applicable agreements entered into by Sellers in the
ordinary course of business, or other similar arrangements or agreements and, in the
absence of such Contacts, Permits or agreements, such receipts of the sort
customarily received thereunder, actually received by Sellers directly and solely in
connection with the ownership, maintenance or operation of the Assets, but for which
the third party who has made such payment under any such agreement or arrangement
expects the Business to perform services after the last day of the month immediately
preceding the month in which the Closing occurs; and

      (11) the sum of the Adjusted Value for all Forward Sales set forth on Schedule
1.8(b) at Closing.

    (b) Subject to Section 1.10(c), Buyer shall pay to Sellers, as an adjustment to the
Purchase Price, the amount of the Initial Adjustment as determined in Section 1.10(a)
including:

      (1) 1.10(a)(1); plus

      (2) Section 1.10(a)(7); plus or minus (as applicable)

      (3) Section 1.10(a)(8); plus

      (4) Section 1.10(a)(9); minus

      (5) Section 1.10(a)(10); plus or minus (as applicable)

      (6) Section 1.10(a)(11); minus

      (7) any amount of the proceeds from either the Current Receivables or the
Closing Month Receivables actually received by Sellers prior to the date of the
Initial Adjustment Statement.

Sellers shall pay to Buyer, within ten (10) business days of Sellers’ receipt, any amount of
the Current Receivables and Closing Month Receivables actually received by Sellers on or
after the date of the Initial Adjustment Statement and not otherwise accounted for by the
prior sentence.

    (c) Buyer shall have the right within fifteen (15) business days after the receipt of
the items in Section 1.10(a) and the Initial Adjustment Statement, to audit same. If Buyer
disagrees with a portion of the Initial Adjustment Statement, Buyer shall deliver to Sellers
written notice thereof in reasonable detail and setting forth the basis for each such
disagreement. Upon Sellers’ receipt of such notice, Buyer and Sellers shall use their
respective commercially reasonable efforts to reach agreement on such disputed portion of
the Initial Adjustment Statement within fifteen (15) business days following Buyer’s
completion of its audit. If Buyer fails to deliver such notice or
with respect to any

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portion of the Initial Adjustment Statement to which Buyer has no disagreement,
Buyer shall pay to Sellers the amounts set forth in the Initial Adjustment Statement within
such fifteen (15) business day period. Should the parties be unable to resolve any
disagreements concerning the Initial Adjustment Statement, all such disagreements shall, at
the earliest practicable date, be referred at one time, by either or all of the parties, to
a nationally or regionally recognized accounting firm mutually acceptable to Buyer and
Sellers (the “Accounting Firm”), along with, and on a confidential basis only, such audit
reports, work papers, schedules, and calculations related to the matters in dispute as the
Accounting Firm may request and are available to that party or its agents. Within
twenty-five (25) days after such submission, the Accounting Firm shall issue a letter report
determining the Initial Adjustment, which shall be final and binding, absent fraud or
manifest error. Any fees and expenses incurred in resolving disputes pursuant to this
Section 1.10 (c) shall be borne by the party incurring such fees and expenses, except for
those of the Accounting Firm, which shall be borne equally by the parties. Payment of any
previously disputed and subsequently resolved amounts owed under the Initial Adjustment
pursuant to this Section 1.10(c) is due within five (5) days after the date Sellers and
Buyer agree with respect to any portion of the Initial Adjustment Statement, or within five
(5) days after the determination of any portion of the Initial Adjustment by the Accounting
Firm.

    (d) After Closing, Buyer shall conduct the reconciliation process for each well at the
Underground Storage Facilities in accordance with the procedures set forth on Schedule
1.10(d) and Buyer or Sellers, as applicable, shall pay, as an adjustment to the Purchase
Price, the amount determined in accordance with those procedures.

     1.11 Post-Closing Adjustments For Any Day Other than First Day of Month. If the
Closing Date is on a day other than the first day of the month, the provisions of Section 1.10
shall apply modified as follows:

    (a) the items in Section 1.10(a) shall be due within fifteen (15) business days after
the last day of the month in which the Closing occurs;

    (b) together with the information delivered by Sellers pursuant to Section 1.10(a),
Sellers shall deliver to Buyer a schedule together with the relevant supporting
documentation that calculates the revenues of the Business minus the expenses of the
Business for the month in which Closing occurs, calculated in the same manner as EBITDA was
calculated on a historical basis as set forth on Schedule 2.7 and formatted in the same
manner as Schedule 1.11(b) (such calculation being the “Closing Month EBITDA”); and

    (c) the amount determined in Section 1.10(b) shall be increased by an amount equal to
the Closing Month EBITDA (if a positive number) or decreased by an amount equal to the
Closing Month EBITDA (if a negative number) divided by the number of days in the month in
which the Closing occurs and then multiplied by the number of days prior to the Closing Date
in the month in which Closing occurs.

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     1.12 Price Allocation. The Sellers and the Buyer agree that the Purchase Price shall
be allocated to the Assets for all purposes (including Tax and financial accounting purposes) as
jointly agreed among the Buyer and the Sellers within 120 days after the Closing. The Sellers and
the Buyer agree (a) to report the federal, state and local income and other Tax consequences of the
transactions contemplated herein, and in particular to report the information required by Section
1060(b) of the Internal Revenue Code of 1986, as amended (the “Code”), and to jointly prepare IRS
Form 8594 (Asset Acquisition Statement under Section 1060) in a manner consistent with such
allocation and (b) without the consent of the other parties hereto, not to take any position
inconsistent therewith upon examination of any Tax return, in any refund claim, in any litigation,
investigation or otherwise. The Sellers, on one hand, and the Buyer, on the other, agree that each
will furnish the other a copy of Form 8594 proposed to be filed with the Internal Revenue Service
by such party or any other Person that, directly or indirectly, is in control of, is controlled by,
or is under common control with, such party (control of a Person means the power, direct or
indirect, to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise; and the terms “controlled by” and “common control” have meanings correlative
to the foregoing) (an “Affiliate”) within ten days prior to the filing of such form with the
Internal Revenue Service.

Article II

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

     Sellers hereby represent and warrant to the Buyer that as of the date hereof and as of the
Closing Date:

     2.1 Organization and Existence. The Partnership is a limited partnership duly
organized, validly existing and in good standing under the laws of the State of Delaware. The
General Partner is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware. Each of the Sellers has full power and authority to own and hold
its properties and assets it now owns and holds and to carry on its business as and where such
properties are now owned or held and such business is now conducted. Each of the Sellers is
qualified to do business as a foreign partnership or corporation, as applicable, and is in good
standing in each jurisdiction in which the character of the properties and assets now owned or held
by it or the nature of the business now conducted by it requires it to be so licensed or qualified,
except where the failure so to qualify would not reasonably be expected to have a material adverse
effect on the Assets taken as a whole or Sellers’ ability to consummate the transactions
contemplated by this Agreement (a “Material Adverse Effect”).

     2.2 Authority and Approval. Each of the Sellers has the partnership or corporate
power and authority, as applicable, to execute and deliver this Agreement, to consummate the
transactions contemplated hereby and to perform all the terms and conditions hereof to be performed
by it. The execution and delivery by each of the Sellers of this Agreement, the performance by
each of the Sellers of all the terms and conditions hereof to be performed by it and the
consummation of the transactions contemplated hereby have been duly authorized and approved by all
required partnership or corporate action of Sellers, as applicable. This Agreement constitutes the
valid and binding obligation of Sellers enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting enforcement of creditors’ rights generally and by
general principles of equity (whether applied in a proceeding at law or in equity).

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     2.3 No Conflict. Except as set forth in Schedule 2.3 hereto, this Agreement and the
execution and delivery hereof by the Sellers do not, and the fulfillment and compliance with the
terms and conditions hereof and the consummation of the transactions contemplated hereby will not:

    (a) conflict with any of, or require the consent of any Person under, the terms,
conditions or provisions of the governing documents of Sellers;

    (b) violate any provision of, or require any consent, authorization or approval under,
any law, statute, ordinance, rule or regulation or any judicial, administrative or
arbitration order, award, judgment, writ, injunction or decree applicable to the Sellers
except for the consents or filings required by the Hart-Scott-Rodino Antitrust Improvements
Act of 1976 (“HSR Act”), required by any state regulatory commissions or those that have
already been received;

    (c) conflict with, result in a breach of, constitute a default under (whether with
notice or the lapse of time or both), or accelerate or permit the acceleration of the
performance required by or any remedies or any rights of termination or cancellation or the
loss of benefits or change in the rights or obligations of any Person, or require any
consent, authorization or approval under (1) any Contract or Permit to which the either of
the Sellers is a party or by which any of them is bound or to which any property of the
Sellers is subject, or (2) any Contracts or Permits that are included in the Assets, except
in the case of clause (1) or (2), for those which in the aggregate would not reasonably be
expected to have a Material Adverse Effect; or

    (d) result in the creation of any mortgage, pledge, lien, claim, option, conditional
sales agreement, encumbrance, security interest or charge (collectively, “Encumbrances”) on
the Assets under any Contract.

     2.4 Litigation; Regulations. Except as would not reasonably be expected to have a
Material Adverse Effect, there are no claims, fines, actions, suits, demands, investigations or
proceedings pending or, to the actual knowledge of the executive officers of the General Partner
(“Knowledge of Sellers”), threatened against Sellers, at law or in equity, or before or by any
court, tribunal or arbitrator or federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality (each of the foregoing, a “Governmental Body”)
having jurisdiction over Sellers. Except (a) as would not reasonably be expected to have a
Material Adverse Effect or (b) with respect to any matters related to Taxes, which matters are
governed solely by Section 2.9 hereof, Sellers have conducted, and are conducting the Business in
compliance with, the requirements, standards, criteria and conditions set forth in federal, state
and local statutes, ordinances, Permits, Permit applications, orders, approvals, variances, rules
and regulations applicable to the Business.

     2.5 No Default. Sellers are not in default under, and no condition exists that with
notice or lapse of time or both would constitute a default under (a) any mortgage, loan
agreement, indenture, evidence of indebtedness or other instrument evidencing borrowed money
to which Sellers or any of their respective properties are bound, (b) any judgment, order or
injunction of any Governmental Body, or (c) any other agreement, except in case of clauses (a), (b)
and (c) for such defaults and conditions that, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

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     2.6 Permits. The list of all licenses, franchises, permits and authorizations
(“Permits”) included in the Asset Schedule is a true and correct list of the Permits to be included
in the Assets and necessary for the lawful conduct of the Business, except for those for which the
failure to hold would not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     2.7 Financial Information. Attached as Schedule 2.7 are the unaudited operating
statements solely related to the Assets for the fiscal year ended July 31, 2004, and for the ten
months ended May 31, 2005 (the “Operating Statement Date”). The operating statements set forth on
Schedule 2.7 fairly present, in all material respects, the results of operations related to the
Assets for the respective fiscal periods set forth therein.

     2.8 No Material Adverse Effect. Since the Operating Statement Date, there has been no
Material Adverse Effect or any event or events that individually or in the aggregate, with the
lapse of time or further notice or both would reasonably be expected to have a Material Adverse
Effect, except for matters that generally affect the economy or the industry in which Sellers are
engaged or changes in the ordinary course of business.

     2.9 Taxes.

    (a) “Taxes” shall mean all taxes, however denominated, including any interest,
penalties or other additions to tax that may become payable in respect thereof, imposed by
any Governmental Body, which taxes shall include, without limiting the generality of the
foregoing, all income or profits taxes (including, but not limited to, federal income taxes
and state income taxes), gross receipts taxes, sales taxes, use taxes, real property gains
or transfer taxes, ad valorem taxes, property taxes, value-added taxes, franchise taxes,
production taxes, severance taxes, windfall profit taxes, withholding taxes, payroll taxes,
employment taxes, excise taxes, Propane Education Research Council fees and other
obligations of the same or similar nature to any of the foregoing, which Sellers are
required to pay, withhold or collect.

    (b) All returns and reports for Taxes required to be filed on or before the Closing
Date by Sellers with respect to the Business or the Assets have been filed in accordance
with all applicable laws, are in all material respects true, complete and correct, and all
Taxes, which were shown to be due on such returns or reports have been paid; provided,
however, that the representations and warranties set forth in this Section 2.9(b) are made
only to the extent that such Taxes (1) are or may become liens on the Assets or (2)
constitute Taxes for which Buyer is or may be liable in its capacity as a transferee of the
Assets.

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     2.10 Intellectual Property. The Asset Schedule sets forth a list of all intellectual
property rights, if any, to be included in the Assets. To the Knowledge of Sellers, the
intellectual property rights included in the Assets do not infringe upon any patent, copyright or
trademark rights of others. Sellers have the right to use, free and clear of claims or rights of
others, all material trade secrets, customer lists, processes, computer software, patents,
copyrights and trademarks required for, incident to or included in the Assets.

     2.11 Contracts. The list of contracts (written or oral), plans, undertakings,
commitments, instruments or agreements (collectively, “Contracts”) included in the Asset Schedule
is a true and correct list of the Contracts (including any amendments, modifications, extensions
and supplements thereto) to be included in the Assets (other than any individual customer service
agreements or purchase orders which are subject to termination by Sellers without penalty upon 90
days notice or less, and any agreements providing for annual expenditures by, or revenues to,
Sellers of less than $50,000), which Contracts constitute all of the Contracts (with the above
exceptions) related to the Business. Except as set forth in Schedule 2.11, neither of the Sellers
is and, to the Knowledge of Sellers, no other party is, in default under, or in breach or violation
of (and no event has occurred which, with notice or the lapse of time or both, would constitute a
default under, or a breach or violation of) any term, condition or provision of any Contract
identified on the Asset Schedule except for defaults, breaches, violations or events which,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect. Other than Contracts which have terminated or expired in accordance with their terms, each
of the Contracts identified on the Asset Schedule constitutes valid, binding and enforceable
obligations of Sellers to the extent they are parties thereto and, to the Knowledge of Sellers,
enforceable obligations of any other party thereto, in accordance with its terms (subject to the
effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other
similar laws relating to or affecting creditors’ rights generally, general equitable principles
(whether considered on a proceeding in equity or at law) and an implied covenant of good faith and
fair dealing) and is in full force and effect. None of the Partnership’s customers which
constitute a material portion of the Business have canceled or substantially reduced purchases from
the Partnership or, to the Knowledge of Sellers, are currently attempting or threatening to cancel
or substantially reduce service.

     2.12 Real Property.

    (a) With respect to the real property which is part of the Assets (other than
Easements) (the “Real Property”), the Partnership is the owner of good and indefeasable fee
simple title (or in the case of leases, leasehold title) to all such Real Property and to
all buildings and improvements thereon, in each case free and clear of all Encumbrances,
except for (1) Permitted Encumbrances, (2) defects in title or Encumbrances described on
Schedule 2.12 and (3) other defects in title or Encumbrances which individually would not
reasonably be expected to have a Material Adverse Effect. The Real Property set forth on
the Asset Schedule constitutes all of the Real Property owned or leased relating to the
Business.

    (b) With respect to pipeline easements, rights of way, licenses and land use permits
included as part of the Assets (collectively, the “Easements”), the Partnership at Closing
will convey any and all of Sellers’ right title and interest in and to the Easements,
free and clear of all Encumbrances, except for (1) Permitted Encumbrances, (2) defects
in title or Encumbrances described on Schedule 2.12 and (3) other defects in title or
Encumbrances which individually would not reasonably be expected to have a Material Adverse
Effect. The Easements set forth on the Asset Schedule constitute all of the Easements
relating to the Business.

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    (c) As used in this Agreement, the term “Permitted Encumbrances” means, with respect to
or upon any of the Assets:

      (1) Encumbrances set forth on any schedule attached hereto;

      (2) Encumbrances incurred and pledges and deposits made in the ordinary course
of business in connection with worker’s compensation;

      (3) Encumbrances securing the performance of bids, tenders, leases, contracts
(other than for the repayment of debt), statutory obligations, surety, customs and
appeal bonds and other obligations of like nature, incurred as an incident to and in
the ordinary course of business;

      (4) Encumbrances imposed by law, such as carriers’, warehouseman’s, mechanics’,
materialmen’s, landlords’, laborers’, suppliers’ and vendors’ liens, incurred in the
ordinary course of business and securing obligations which are not yet due or
delinquent or which are being contested in good faith by appropriate proceedings;

      (5) Encumbrances securing the payment of taxes and assessments, either not yet
due or delinquent or being contested in good faith by appropriate legal or
administrative proceedings;

      (6) zoning restrictions, easements, licenses, rights-of-way, declarations,
reservations (including but not limited to mineral and oil and gas reservations),
provisions, covenants, conditions, waivers, restrictions on the use of property,
mineral and oil and gas leases or licenses, or other matters of record (and with
respect to leasehold interests, mortgages, obligations and Encumbrances incurred,
created, assumed or permitted to exist and arising by, through or under a landlord
or owner of the leased property, with or without consent of the tenant);

      (7) visible and apparent easements or other matters that would be revealed by
an accurate and current survey or careful physical inspection;

      (8) Encumbrances on property existing at the time such property was acquired by
the Sellers (provided, that such Encumbrances were not created in contemplation of
the acquisition of such property by the Sellers);

      (9) tenant leases with respect to Real Property and Easements;

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      (10) subleases and assignments with respect to any tenant leases on the Real
Property and Easements, and any Encumbrances created as a result of any financing of
a tenant under any such tenant lease;

      (11) extensions, renewals and replacements of Encumbrances and other matters
referred to in clauses (1) through (10) above;

      (12) Encumbrances created by Buyer; and

      (13) Encumbrances, Contracts and other matters included in the Assumed
Obligations.

     2.13 Title Other than Real Property. Other than with respect to those Assets
described in Section 2.12, Sellers have good and indefeasible title to all of the Assets, subject
to no Encumbrances except for Permitted Encumbrances.

     2.14 Fixed Assets. The Asset Schedule sets forth a list and summary description of
all fixed assets owned or leased by Sellers as of the Operating Statement Date. The Partnership’s
fixed assets to be included in the Assets, taken as a whole, are sufficient to conduct the
operations of the Business in the ordinary course of business consistent with past practice,
ordinary wear and tear excepted, except to the extent that such failure would not reasonably be
expected to have a Material Adverse Effect.

     2.15 Environmental Matters.

    (a) “Environmental Law,” as referred to herein, shall mean any federal, state, or local
statute, law, rule, regulation, ordinance, code, or order in effect and, in each case, as
amended, that relates to protection of the environment or natural resources, including
without limitation laws that regulate air emissions, the discharge of pollutants to surface
or ground water, and the generation, handling, disposal, storage, treatment, use, presence,
transportation or release of or exposure to Hazardous Substances or wastes.

    (b) “Environmental Claims,” as referred to herein, shall mean any and all
administrative, regulatory, or judicial actions, suits, demands, claims, notices of
noncompliance or violation or potential liability, information requests and other
adversarial proceedings relating to or arising under any Environmental Law.

    (c) “Environmental Permits,” as referred to herein, shall mean any Permit required
pursuant to Environmental Law.

    (d) “Hazardous Substances,” as referred to herein, shall mean any material or
substance, including any petroleum product or byproduct, or asbestos, that is defined as
hazardous or toxic, or otherwise regulated or controlled, under any applicable Environmental
Law.

    (e) Solely with respect to the Assets and except as described on Schedule 2.15: (1)
except as would not have a Material Adverse Effect, Sellers are in compliance with all
applicable Environmental Laws; (2) except as would not have a Material Adverse
Effect, Sellers have included on Schedule 2.15 all Environmental Permits in their
possession, which are all the Environmental Permits required for the operation of the Assets
as currently operated, and Sellers are in compliance with all of the terms and conditions of
such Environmental Permits; (3) Sellers have not received written notice from any
governmental authority or third party of any violation or alleged violation by, or liability
attributable to, Sellers arising under or relating to any requirements of Environmental Law;
(4) no Environmental Claims are presently pending against Sellers and to the Knowledge of
the Sellers, no Environmental Claims are threatened against Sellers; and (5) Sellers do not
own or operate underground storage tanks containing petroleum products or other substances
which would be subject to regulation under 40 C.F.R. Part 280 or other applicable
requirements of Environmental Law.

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    (f) Notwithstanding any other provision of this Agreement, the representations and
warranties in this Section 2.15 shall be the exclusive representations and warranties
relating to Environmental Laws, Environmental Claims and Environmental Permits.

     2.16 Insurance. Each of the Sellers is insured with financially responsible insurers
in such amounts and against such risks and losses as are customary in all material respects for
companies conducting the businesses conducted by the respective entity. Neither of the Sellers has
received any notice of cancellation or termination with respect to any material insurance policy.
To the Knowledge of the Sellers, all of such insurance policies are valid and enforceable policies
in all material respects.

     2.17 Business Employees. Schedule 2.17 sets forth a list of the actively-at-work
employee of Sellers or their Affiliates who are employed primarily in connection with the Business
immediately prior to the date of this Agreement (the “Business Employees”), which schedule includes
the employee’s name, job title, work location and hire date, along with organizational charts
showing the position of each employee and his/her reporting relationship in Sellers’ organizations.

     2.18 Labor Relations. Neither of the Sellers is a party to any collective bargaining
agreement or other labor agreement with any union or labor organization involving Business
Employees nor, to the Knowledge of Sellers, is there any action or proceeding by any labor
organization or employee group to organize the Business Employees. There is no labor strike,
slowdown, stoppage or lockout pending, or, to the Knowledge of Sellers, threatened against or
affecting the Assets.

     2.19 Benefit Plans. Schedule 2.19 sets forth each “employee benefit plan” (as defined
in section 3(3) of the Employee Retirement Income Security Act of 1974, as amended) (“ERISA”) which
Sellers maintain, are a party to, participate in or have any liability with respect to for the
benefit of the Business Employees (collectively, the “Employee Benefit Plans”). A true and correct
copy of each of the Employee Benefit Plans has been supplied to Buyer. All Employee Benefit Plans
comply and have been administered in form and in operation in all material respects with all
applicable requirements of law and no notice has been issued by any Governmental Body questioning
or challenging such compliance. Each Employee Benefit Plan that constitutes an employee pension
benefit plan (within the meaning of Section 3(2) of ERISA)
and that is intended to be qualified under Section 401(a) of the Code, is subject to a
favorable determination letter issued by the Internal Revenue Service, which letter covers all
amendments thereto for which the remedial amendment period (within the meaning of Section 401(b) of
the Code) has expired.

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     2.20 Solvency. Sellers are not entering into this Agreement with actual intent to
hinder, delay or defraud creditors. Immediately prior to and immediately subsequent to the Closing
Date:

    (a) the present fair salable value of the assets of Sellers (on a going concern basis)
will exceed the liability of Sellers for their respective debts (including their respective
contingent obligations);

    (b) Sellers have not incurred, nor do they intend to or believe that they will incur,
debts (including contingent obligations) beyond their respective ability to pay such debts
as such debts mature (taking into account the timing and amounts of cash to be received from
any source, and of amounts to be payable on or in respect of debts); and the amount of cash
available to Sellers after taking into account all other anticipated uses of funds is
anticipated to be sufficient to pay all such amounts on or in respect of debts, when such
amounts are required to be paid; and

    (c) Sellers will have sufficient capital with which to conduct their respective
business, and the property of Sellers does not constitute unreasonably small capital with
which to conduct their respective business.

For purposes of this Section 2.20, “debt” means any liability or a (1) right to payment whether or
not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
unmatured, disputed, undisputed, legal, equitable secured, or unsecured, or (2) right to an
equitable remedy for breach of performance if such breach gives rise to a payment, whether or not
such a right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured,
disputed, undisputed, secured, or unsecured.

     2.21 Bankruptcy. There are no bankruptcy, reorganization or arrangement proceedings
pending against, being contemplated by, or to the Knowledge of Sellers, threatened against Sellers.

     2.22 Brokerage Arrangements. Sellers have not entered (directly or indirectly) into
any agreement with any Person that would obligate the Buyer to pay any commission, brokerage or
“finder’s fee” in connection with the transactions contemplated herein other than an agreement with
Simmons & Company International, the fees of whom will be paid by the Sellers.

     2.23 Sufficiency of Assets. The Assets are all of the assets that are used or
necessary to conduct the Business as it is presently conducted and the Assets constitute all of the
assets and rights used by the Sellers to conduct the Business as it is presently conducted.

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     2.24 Inventory. The Terminal Inventory, the Underground Purchased Inventory, the
Transit Inventory, the Third Party Location Inventory and the Transferred Inventory meet the
applicable specifications listed on Schedule 2.24.

Article III

REPRESENTATIONS AND WARRANTIES OF THE BUYER

     Buyer hereby represents and warrants to Sellers that as of the date hereof and as of the
Closing Date:

     3.1 Organization and Existence. Buyer is a limited partnership duly organized,
validly existing and in good standing under the laws of the State of Delaware. Buyer has full
partnership power and authority to own and hold the properties and assets it now owns and holds and
to carry on its business as and where such properties and assets are now owned or held and such
business is now conducted. Each of the Buyer and its general partner are duly licensed or
qualified to do business as a foreign limited partnership or corporation, as applicable, and are in
good standing in each jurisdiction in which the character of the properties and assets now owned or
held by it or the nature of the business now conducted by it requires it to be so licensed or
qualified, except where the failure so to qualify would not reasonably be expected to have a
material adverse effect on Buyer’s ability to consummate the transactions contemplated by this
Agreement.

     3.2 Authority and Approval. Buyer has the partnership power and authority to execute
and deliver this Agreement, to consummate the transactions contemplated hereby and to perform all
the terms and conditions hereof to be performed by it. The execution and delivery by the Buyer of
this Agreement, the performance by the Buyer of all the terms and conditions hereof to be performed
by it and the consummation of the transactions contemplated hereby have been duly authorized and
approved by all required partnership action applicable to Buyer. This Agreement constitutes the
valid and binding obligation of Buyer enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting enforcement of creditors’ rights generally and by general principles of equity
(whether applied in a proceeding at law or in equity).

     3.3 No Conflict. This Agreement and the execution and delivery hereof by the Buyer do
not, and the fulfillment and compliance with the terms and conditions hereof and the consummation
of the transactions contemplated hereby will not:

    (a) conflict with any of, or require the consent of any Person under, the terms,
conditions or provisions of the governing documents of Buyer or its general partner;

    (b) violate any provision of, or require any consent, authorization or approval under,
any law, statute, ordinance, rule or regulation or any judicial, administrative or
arbitration order, award, judgment, writ, injunction or decree applicable to the Buyer
except for the consents or filings required by the HSR Act, required by any state regulatory
commissions or those that have already been received; or

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    (c) conflict with, result in a breach of, constitute a default under (whether with
notice or the lapse of time or both), or accelerate or permit the acceleration of the
performance required by or any remedies or any rights of termination or cancellation or the
loss of benefits or change in the rights or obligations of any Person, or require any
consent, authorization or approval under any Contract or Permit to which the Buyer is a
party or by which it is bound or to which any property of Buyer is subject, except for those
which in the aggregate would not reasonably be expected to have a material adverse effect on
the Buyer’s ability to consummate the transactions contemplated by this Agreement.

     3.4 Litigation. There are no actions, suits, proceedings or governmental
investigations or inquiries pending against Buyer or its properties, assets, operations or business
which might delay or prevent the consummation of the transactions contemplated hereby.

     3.5 Funds Available. Buyer has sufficient cash, or firm commitments from responsible
lending institutions, available lines of credit or other sources of available funds to enable it to
make payment of any amounts to be paid by it hereunder.

     3.6 No Material Adverse Effect. Since December 31, 2004, there has been no material
adverse affect on the business, financial condition or results of operations of the Buyer which
might delay or prevent the consummation of the transactions contemplated hereby.

     3.7 Bankruptcy. There are no bankruptcy, reorganization or arrangement proceedings
pending against, being contemplated by, or to the actual knowledge of the executives of the general
partner of Buyer, threatened against Buyer.

     3.8 Brokerage Arrangements. Buyer has not entered (directly or indirectly) into any
agreement with any Person that would obligate Sellers to pay any commission, brokerage or “finder’s
fee” in connection with the transactions contemplated herein.

Article IV

ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS

     4.1 Certain Changes. Without first obtaining the written consent of Buyer, from the
date hereof until the Closing Date, Sellers hereby covenant and agree that Sellers will not:

    (a) other than in the ordinary course of business, make any material change in the
conduct of the Business or the operation of the Assets;

    (b) other than in the ordinary course of business, enter into any material Contract
directly related to the Business or Assets and intended to be conveyed pursuant to this
Agreement or terminate or amend in any material respect, any material Contract to which
Sellers are a party and which is included in the Assets;

    (c) sell, lease or otherwise dispose of any of Assets other than the sale of Assets in
the ordinary course of business consistent with past practices that would not
reasonably be expected to, individually or in the aggregate, have a Material Adverse
Effect;

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    (d) purchase, lease or otherwise acquire any property of any kind whatsoever to be
included in the Assets other than in the ordinary course of business;

    (e) allow or permit the expiration, termination or cancellation at any time prior to
the Closing of any of the insurance policies described in Section 2.16, unless it is
replaced, with no loss of coverage, by a comparable insurance policy;

    (f) implement or adopt any change in their tax methods, principles or elections related
to the Assets;

    (g) increase the rate of compensation payable or to become payable to any of the
Business Employees, except in the ordinary course of business or agree to pay any bonuses or
severance pay other than in accordance with currently established plans, policies, programs
or agreements; or

    (h) commit to do any of the foregoing.

     4.2 Operations. Until the Closing Date, Sellers will:

    (a) maintain the properties and facilities included in the Assets in the ordinary
course of business;

    (b) use their reasonable business efforts to maintain and preserve the Business intact,
retain the services of the Business Employees and maintain their relationship with
suppliers, customers and others having business relations relative to the Business;

    (c) advise the Buyer promptly in writing after any material change to the Knowledge of
Sellers in any document, schedule or other information delivered pursuant to this Agreement;

    (d) file on a timely basis all notices, reports or other filings related to the
Business required to be filed with or reported to any federal, state, municipal or other
governmental department, commission, board, bureau, agency or any instrumentality of any of
the foregoing wherever located; and

    (e) file on a timely basis all complete and correct applications or other documents
necessary to maintain, renew or extend in the names of Sellers, as applicable, any Permit,
variance or any approval required by any Governmental Body for the continuing operation of
the Assets, whether or not such approval would expire before or after the Closing Date.

     4.3 Buyer Notification. Buyer shall advise the Sellers promptly in writing after
obtaining knowledge of any material change in any document, schedule or other information delivered
pursuant to this Agreement.

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     4.4 Schedules. The parties agree that any disclosure by Sellers on a schedule
attached to this Agreement shall be deemed a disclosure on any other applicable schedule to this
Agreement and shall be deemed notice to Buyer even if such disclosure is omitted from another
schedule to which it would pertain.

     4.5 Access. Sellers will afford Buyer and its authorized representatives reasonable
access to Sellers’ financial, title, tax, corporate and legal materials and operating data and
information available directly related to the Assets as of the date hereof and which becomes
available to Sellers at any time prior to the Closing Date, and will furnish to Buyer such other
information as it may reasonably request, unless any such access and disclosure would violate the
terms of any agreement to which the Sellers are bound or any applicable law or regulation. Sellers
will use their reasonable business efforts to secure all requisite consents for the examination by
the Buyer and its representatives of all information covered by confidentiality agreements.
Sellers will allow Buyer access to and consultation with the lawyers, accountants, and other
professionals employed by or used by Sellers as directly related to the Business for all purposes
under this Agreement. Any such consultation shall occur under circumstances appropriate to
maintain intact the attorney-client privilege as to privileged communications and attorney work
product. The confidentiality of any data or information so acquired shall be maintained by Buyer
and its representatives pursuant to the terms of that certain Confidentiality Agreement between
Ferrellgas, L.P. and Enterprise Products OLPGP, Inc. dated April 4, 2005 (the “Confidentiality
Agreement”), until the expiration of the term of the Confidentiality Agreement, which Buyer hereby
acknowledges is binding on it. Further, Sellers will afford Buyer and its authorized
representatives reasonable access from the date hereof until the Closing Date, during normal
business hours upon at least 24 hours prior notice, to the facilities included in the Assets;
provided that such access shall be at the sole cost, expense and risk of the Buyer.

     4.6 Antitrust Notification; Other Reporting Requirements. The Sellers and the Buyer
will, as promptly as practicable after the execution of this Agreement, file with the Federal Trade
Commission and the Department of Justice the notification and report form required for the
transactions contemplated hereby and any supplemental information which may be reasonably requested
in connection therewith pursuant to the HSR Act and the rules and regulations promulgated
thereunder, which notification and report form and supplemental information will comply in all
material respects with the requirements of the HSR Act and the rules and regulations promulgated
thereunder. The Sellers and the Buyers will duly and timely file all notices and reports required
to be filed with all other Governmental Bodies in contemplation of the consummation of the
transactions described herein.

     4.7 Reasonable Business Efforts.

    (a) Sellers and Buyer, as appropriate, shall use their reasonable business efforts to
(1) obtain all approvals and consents required by or necessary for the transactions
contemplated by this Agreement, including, but not limited to, the consent under any
agreements identified on the Asset Schedule, and (2) ensure that all of the conditions to
the obligations of the Buyer and the Sellers contained in Sections 5.1 and 5.2,
respectively, are satisfied timely.

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    (b) A party’s reasonable business efforts for purposes of Section 4.7(a) shall not
require that party:

      (1) to hold separate or make any divestiture of any asset or any portion of the
Business or the Assets;

      (2) to otherwise agree to any restriction on its operations or other materially
burdensome condition;

      (3) to obtain a consent, approval or other clearance required by this Agreement
if such consent, approval or other clearance contains any restriction on its
operations or other materially burdensome condition which would, in any such case,
be material to the assets, liabilities or business of that party or any of its
respective subsidiaries or affiliates; or

      (4) to offer or grant financial accommodations to any third party or to remain
secondarily liable with respect to any liability.

    (c) Subject to Section 4.7(b) and notwithstanding Section 4.2(e), Buyer shall be
responsible for obtaining the transfer or cancellation and reissuance of any Permit,
variance or other approval required by any Governmental Body for the operation of the Assets
by Buyer, and Sellers shall reasonably cooperate with Buyer to accomplish such transfer or
cancellation and reissuance.

     4.8 Employees and Employee Benefits.

    (a) Effective as of the Closing Date, Buyer or an Affiliate of Buyer shall offer
employment to each Business Employee at the same base rate of pay applicable to such
Business Employee immediately prior to the Closing and with such other terms and conditions
of employment, including other compensation and benefits, as may be provided by Buyer or its
employing Affiliate to similarly situated employees of Buyer or Buyer’s employing Affiliate.
Each Business Employee who accepts Buyer’s or its Affiliate’s offer of employment is
referred to herein as a “Transferred Employee.” Upon the request of Buyer, Sellers shall
provide Buyer timely access to benefit census data (including computer data) regarding the
Transferred Employees.

    (b) Subject to the provisions of this Section 4.8, Sellers shall be responsible for all
liabilities to and claims of Transferred Employees and any other employees of Sellers and
their Affiliates arising out of their employment with Sellers prior to the Closing Date,
regardless of when such liabilities are asserted, including, but not limited to, any claims
arising out of any Employee Benefit Plans. Subject to the provisions of this Section 4.8,
Buyer and its Affiliates shall be responsible for all liabilities to and claims of
Transferred Employees and any other employees of Buyer and its Affiliates arising out of
their employment with Buyer or its Affiliates on and after the Closing Date, regardless of
when such liabilities are asserted, including, but not limited to, any claims arising out of
any employee benefit plans, programs, policies and arrangements of Buyer or its Affiliates
(collectively, the “Buyer Employee Benefit Plans”).

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    (c) Buyer shall, and shall cause its Affiliates to, credit the Transferred Employees
with all service that Sellers and their Affiliates recognized under the Employee Benefit
Plans as of the Closing Date as service with Buyer and its Affiliates for purposes of
eligibility to participate, vesting and entitlement to benefits (but not for purposes of
benefit accrual, other than for purposes of vacation benefits) under all Buyer Employee
Benefit Plans. With respect to Transferred Employees (and their covered dependents), Buyer
shall cause the Buyer Employee Benefit Plans that constitute welfare benefit plans (within
the meaning of section 3(1) of the Employee Retirement Income Security Act of 1974, as
amended) to (1) waive any exclusions, restrictions or limitations with respect to
pre-existing conditions or waiting periods thereunder to the extent that the same were
waived or satisfied by a Transferred Employee on the Closing Date under a corresponding
Employee Benefit Plan and (2) if Sellers provide the necessary data in a timely fashion,
credit any amounts paid by a Transferred Employee or his or her covered dependents under a
corresponding Employee Benefit Plan during the year in which the Closing Date occurs for
purposes of satisfying any applicable deductible, coinsurance and maximum out-of-pocket
provisions under such corresponding Buyer Employee Benefit Plan to the extent such amounts
were taken into account for a similar purpose under the corresponding Employee Benefit Plan;
provided, however, that the provisions of clauses (1) and (2) of this Sections 4.8(c) shall
not apply to any Buyer Employee Benefit Plan that is insured unless the applicable insurer
consents to the foregoing. Buyer shall use its commercially reasonable efforts to obtain
such applicable consents.

    (d) Immediately prior to the Closing, all Transferred Employees shall cease active
participation in all Employee Benefit Plans and Sellers shall cause each Transferred
Employee to be 100% vested in his or her accrued benefits under each Employee Benefit Plan
that is intended to be qualified under section 401(a) of the Code.

    (e) With respect to any accrued but unused vacation, personal time off, or sick leave
time which has been accrued in the current calendar year (and not carried over from a prior
year) to which any Transferred Employee is entitled pursuant to the vacation or leave policy
applicable to such Transferred Employee immediately prior to the Closing, Buyer shall, or
shall cause its employing Affiliate to, allow such Transferred Employee to use such accrued
vacation or other leave time during the remainder of the current calendar year.

    (f) Effective as of the Closing Date, Buyer shall, or shall cause an Affiliate of Buyer
to, make available to Transferred Employees participation in a defined contribution plan
which is qualified under section 401(a) of the Code (the “Buyer’s Defined Contribution
Plan”). Transferred Employees who receive an eligible rollover distribution (within the
meaning of section 402(f)(2) of the Code) from Sellers’ defined contribution and/or defined
benefit plan(s) that are qualified under section 401(a) of the Code (“Sellers’ Qualified
Plans”) may, if Buyer or an Affiliate of Buyer is provided with a copy of a current
favorable determination letter with respect to such Sellers’ Qualified Plans at the time of
such rollover, make a cash rollover contribution to the Buyer’s Defined Contribution Plan.
To the extent that, pursuant to the foregoing provisions of this paragraph (f), a
Transferred Employee makes a direct rollover contribution (within the meaning of section
401(a)(31) of the Code) of an eligible rollover distribution (within
the meaning of section 402(f)(2) of the Code) to the Buyer’s Defined Contribution Plan,
such direct rollover contribution may also include promissory notes which have not
previously been defaulted and become a taxable distribution to such Transferred Employee for
loans made to such Transferred Employee under Sellers’ Qualified Plans, but shall not
include any “in-kind” distribution of securities.

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    (g) Effective immediately following the Closing Date, Buyer shall, or shall cause an
Affiliate of the Buyer to, permit Transferred Employees to participate in a cafeteria plan
within the meaning of section 125 of the Code (the “Buyer’s Cafeteria Plan”). Buyer’s
Cafeteria Plan shall contain provisions that assume and recognize any before-tax salary
deferral elections and contributions of Transferred Employees for the plan year in which the
Closing Date occurs under the cafeteria plan maintained by the Sellers (the “Sellers’
Cafeteria Plan”) and the Buyer’s Cafeteria Plan shall recognize payments or reimbursements
made with respect to Transferred Employees (and their eligible dependents) under the
Sellers’ Cafeteria Plan for the plan year in which the Closing Date occurs. As of the
Closing Date, Sellers shall transfer to Buyer, in cash, an amount equal to the difference
between (a) an amount equal to the amount contributed to the Sellers’ Cafeteria Plan by
Transferred Employees (through payroll deductions or otherwise) for the plan year of the
Sellers’ Cafeteria Plan in which the Closing Date occurs and ending on the Closing Date (the
“Coverage Period”), less the total payments from the Sellers’ Cafeteria Plan for the
Coverage Period (determined as of the Closing Date).

    (h) It is understood and agreed among the parties that all provisions contained in this
Agreement with respect to employee benefit plans or employee compensation are included for
the sole benefit of the respective parties hereto and do not and shall not create any right
in any other Person, including, but not limited to, any Transferred Employee, any
participant in any benefit or compensation plan or any beneficiary thereof. The
representations, provisions, warranties and undertakings contained in this Section 4.8 shall
be binding solely on the parties to this Agreement, and no other Persons shall have any
third party beneficiary or other right hereunder.

     4.9 Post-Closing Further Assurances. In case at any time after the Closing any
further action is necessary to carry out the purposes of this Agreement, the parties will take such
further action (including the execution and delivery of further instruments and documents) as a
party reasonably may request, all at the sole cost and expense of the requesting party (unless the
requesting party is entitled to indemnification therefor under Article VIII below).

     4.10 Transition Services.

    (a) In order to facilitate the full transition of operating activities and functions in
the Business following the Closing Date, for a period of six (6) months commencing on the
Closing Date, upon the request from time to time from Buyer, Sellers shall provide or cause
to be provided to Buyer support services for information technology, accounting, scheduling,
distribution and other administrative functions of the same or substantially similar nature
which the Sellers provided to the Business during calendar year 2005 (“Transition
Services”), Buyer, upon not less than ten days’ written notice to Sellers, at
any time and from time to time may, as of the date set forth in that notice (which may
not precede the end of such 10-day period without Sellers’ approval), terminate any or all
of the Transition Services.

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    (b) Buyer shall pay to Sellers $20,000 for each month in which any Transition Services
are provided by Sellers, which amount shall be paid to Sellers no later than the tenth
business day of each calendar month for Transition Services to be rendered in that month,
beginning with the calendar month immediately following the month in which the Closing Date
occurs. If the Closing Date is on a day other than the last day of a month, Buyer shall
also pay to Sellers, when the first payment is made pursuant to this Section 4.10, a
pro-rated amount for the days in the month of Closing.

    (c) Sellers shall cause their personnel providing the Transition Services to perform
such Transition Services with the same degree of care, skill, confidentiality and diligence
with which such personnel perform similar services for the Sellers. Sellers shall provide
the Transition Services in accordance with the reasonable instructions provided by the
authorized representatives of Buyer, or its designee, and Sellers shall be entitled to rely
upon any written or oral instructions received from such authorized representatives or
designees.

    (d) Sellers shall act as independent contractors, and nothing herein shall at any time
be construed to create the relationship of employer and employee, partnership, principal and
agent, broker or finder, or joint venturers as among Sellers and Buyer. Except as expressly
provided herein, no party shall have any right or authority, and no party shall attempt to
enter into any contract, commitment, or agreement or incur any debt or liability of any
nature, in the name of or on behalf of the other parties.

    (e) Sellers represent and agree that they will perform the Transition Services, and
Buyer represents and agrees that it will use the Transition Services provided hereunder,
only in accordance with all applicable Laws.

    (f) Except as specifically provided herein, Sellers shall not be obligated to hire any
additional employees or retain or acquire any outside or additional assistance, equipment,
computer programs or data to enable Sellers to provide the Transition Services.

    (g) Sellers shall not be required to provide any Transition Services to Buyer if
Sellers are prohibited by Law from providing such Transition Services.

    (h) SELLERS SHALL NOT BE LIABLE FOR ANY DAMAGES AS A RESULT OF SELLERS’ OR THEIR
EMPLOYEES’ PERFORMANCE OF, OR FAILURE TO PERFORM, ANY TRANSITION SERVICES, INCLUDING THOSE
THAT RESULT FROM SELLERS’ OR THEIR EMPLOYEES’ SOLE, JOINT AND OR CONCURRENT NEGLIGENCE OR
OTHER FAULT, BUT EXCLUDING THOSE RESULTING FROM SELLERS’ OR THEIR EMPLOYEES’ GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT. SELLERS DO NOT MAKE ANY WARRANTY AS TO THE RESULTS OF THE
TRANSITION SERVICES AND HEREBY DISCLAIM
ALL WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO PERFORMANCE OF THE TRANSITION
SERVICES.

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    (i) SELLERS SHALL NOT BE LIABLE TO BUYER FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL
DAMAGES RESULTING FROM THE PERFORMANCE OF THE TRANSITION SERVICES OR FROM THE BREACH OF THIS
SECTION 4.10, EVEN IF CAUSED BY THE SOLE, JOINT AND/OR CONCURRENT NEGLIGENCE, STRICT
LIABILITY OR OTHER FAULT OF SELLERS OR THEIR OFFICERS, DIRECTORS, OR EMPLOYEES, EXCEPT TO
THE EXTENT ARISING OUT OF, IN CONNECTION WITH, OR RESULTING FROM SELLERS’ OR THEIR
EMPLOYEES’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

    (j) BUYER AGREES TO DEFEND, INDEMNIFY AND HOLD SELLERS AND THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES AND REPRESENTATIVES HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES,
CLAIMS, LOSSES, DAMAGES, COSTS, EXPENSES, CAUSES OF ACTION, OR JUDGMENTS OF ANY KIND OR
CHARACTER (INCLUDING THOSE ARISING FROM, RELATED TO OR CAUSED, DIRECTLY OR INDIRECTLY, BY
THE SOLE, JOINT AND/OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF SELLERS OR
ANY SUCH OTHER INDEMNIFIED PARTY, INCLUDING ANY INTEREST, PENALTY, REASONABLE ATTORNEYS’
FEES, AND OTHER COSTS AND EXPENSES INCURRED IN CONNECTION THEREWITH OR IN THE DEFENSE
THEREOF), ATTRIBUTABLE TO OR ARISING OUT OF ANY CLAIMS BY OR LIABILITIES OR OBLIGATIONS TO,
ANY THIRD PARTY ARISING OUT OF, IN CONNECTION WITH OR RESULTING FROM ANY OF THE TRANSITION
SERVICES PROVIDED BY SELLERS OR ANY OTHER INDEMNIFIED PARTY UNDER THIS SECTION 4.10, EXCEPT
TO THE EXTENT ARISING OUT OF, IN CONNECTION WITH OR RESULTING FROM SELLERS’ OR ANY OTHER
INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

    (k) Sellers shall not be liable to Buyer for their failure or delay in performing their
obligations hereunder due to and during the duration of any contingency beyond such party’s
control including, without limitation, acts of God, fires, floods, wars, acts of war,
sabotage, terrorism, accidents, labor disputes (whether or not such disputes are within the
power of the party to settle), shortages, governmental laws, ordinances, rules or
regulations (whether valid or invalid and which include but are not limited to import or
export prohibitions or priorities, requisitions, allocations and price adjustment
restrictions), inability to obtain power, materials, equipment or transportation and any
other similar contingency (any of which, a “Force Majeure”). In the event of a Force
Majeure, which makes unavailable part, but not all, of any of the Transition Services,
Sellers will provide to Buyer that quantity and level of Transition Services as is
reasonable under the circumstances. Sellers will give notice to Buyer as promptly as
practicable of the nature and probable duration of the Force Majeure as well as of the
termination of such Force Majeure. Sellers will use commercially reasonable efforts to
remove the Force Majeure event.

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     4.11 Storage Agreements. At Closing, Buyer and the Partnership shall execute storage
agreements for the Adamana, Hutchinson and Moab underground storage facilities in the forms of
Exhibits A-1, A-2 and A-3 attached hereto.

     4.12 Throughput Agreement. At Closing, Buyer and the Partnership shall execute
agreements with specified throughput volumes for the Inver Grove Heights and Jackson Terminals in
the forms of Exhibits B-1 and B-2 attached hereto.

     4.13 Leases. At Closing, Buyer and the Partnership shall execute leases for the Inver
Grove Heights and Aberdeen locations in the forms of Exhibits C-1, C-2 and C-3 attached hereto.

Article V

CONDITIONS TO CLOSING

     5.1 Conditions to the Obligation of Buyer. The obligation of Buyer to proceed with
the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing Date of
all of the following conditions, any one or more of which may be waived in writing, in whole or in
part, by the Buyer:

    (a) Sellers shall have complied in all material respects with each of their covenants
and agreements contained herein and each of their representations and warranties contained
in this Agreement shall be deemed to have been made again at and as of the Closing Date and
shall then be true and correct in all material respects (unless otherwise qualified by
materiality, and in such case, shall be true and correct) and Buyer shall have received a
certificate, dated as of the Closing Date, of an executive officer of the General Partner
certifying as to such matters.

    (b) All actions, proceedings, instruments and documents required to carry out this
Agreement or incidental hereto and all other related legal matters shall have been approved
by counsel to the Buyer and such counsel shall have been furnished with all such documents
and instruments as it shall have reasonably requested in connection with the transactions
contemplated herein.

    (c) No suit, action or other proceeding shall be pending in which there is sought any
remedy to restrain, enjoin or otherwise prevent the consummation of this Agreement or the
transactions in connection herewith.

    (d) The waiting period under the HSR Act and the rules and regulations promulgated
thereunder applicable to the transactions contemplated hereunder shall have expired or been
terminated.

    (e) Sellers shall provide to Buyer a letter signed by an authorized officer of the
General Partner on behalf of Sellers, which certifies that the Sellers’ defined contribution
plan (1) is, to the Knowledge of Sellers, a tax qualified plan under Section 401(a) of the
Code and such letter includes a copy of the most recent determination letter received from
the Internal Revenue service directly applicable to such plan; and (2) has
received certification from every participant in Sellers’ defined contribution plan
whose loan is to be rolled over to Buyer’s Defined Contribution Plan and whose loan had an
original maturity exceeding five (5) years but less than or equal to fifteen (15) years that
such loan was used by such participant to acquire his or her principal residence.

-29-

 

     5.2 Conditions to the Obligation of Sellers. The obligation of Sellers to proceed
with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing Date
of all of the following conditions, any one or more of which may be waived in writing, in whole or
in part, by Sellers:

    (a) Buyer shall have complied in all material respects with its covenants and
agreements contained herein and each of its representations and warranties contained in this
Agreement shall be deemed to have been made again at and as of the Closing Date and shall
then be true in all material respects (unless otherwise qualified by materiality, and in
such case, shall be true and correct) and Sellers shall have received a certificate, dated
the Closing Date, of an executive officer of Buyer certifying as to such matters.

    (b) All actions, proceedings, instruments and documents required to carry out this
Agreement or incidental hereto and all other related legal matters shall have been approved
by counsel to Sellers and such counsel shall have been furnished with all such documents and
instruments as it shall have reasonably requested in connection with the transactions
contemplated herein.

    (c) No suit, action or other proceeding shall be pending in which there is sought any
remedy to restrain, enjoin or otherwise prevent the consummation of this Agreement or the
transactions in connection herewith.

    (d) The waiting period under the HSR Act and the rules and regulations promulgated
thereunder applicable to the transactions contemplated hereunder shall have expired or been
terminated.

Article VI

INVESTIGATION; LIMITATIONS

     6.1 Independent Investigation. Buyer acknowledges that in making the decision to
enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied
solely on the basis of its own independent investigation of Sellers, the Business and the Assets
and upon the express written representations, warranties and covenants in this Agreement. Without
diminishing the scope of the express written representations, warranties and covenants of Sellers
in this Agreement and without affecting or impairing its right to rely thereon, Buyer acknowledges
that Sellers have not made, AND SELLERS HEREBY EXPRESSLY DISCLAIM AND NEGATE ANY OTHER
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, RELATING TO THE ASSETS AND OPERATIONS OF THE
BUSINESS (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE).

-30-

 

     6.2 Survival. The liability of the Sellers for the breach of any of the
representations and warranties of the Sellers set forth in Article II shall be limited to claims
for which the Buyer delivers written notice to the Sellers on or before two years after Closing
Date. The liability of the Buyer for the breach of any of the representations and warranties of
the Buyer set forth in Article III shall be limited to claims for which Sellers shall deliver
written notice to the Buyer on or before two years after the Closing Date.

Article VII

TERMINATION

     7.1 Events of Termination. This Agreement may be terminated at any time prior to the
Closing Date:

    (a) by mutual consent of Buyer and Sellers;

    (b) by either Buyer or Sellers after July 31, 2005, if the Closing has not occurred by
such date, provided that as of such date neither Buyer, on one hand, and Sellers, on the
other, is in default under this Agreement; provided, further, if no party is in default and
Sellers and Buyer, as applicable, are complying with the terms of Section 4.7, but the
conditions to Closing set forth in Sections 5.1(d) and 5.2(d) have not been met, then the
July 31, 2005 date shall be extended to December 31, 2005; or

    (c) by either Buyer, on one hand, or Sellers, on the other, without prejudice to other
rights and remedies which the terminating party may have (provided the terminating party is
not otherwise in material default or breach of this Agreement, or has failed or refused to
close without justification hereunder), if the other party shall (1) materially fails to
perform its covenants or agreements contained herein required to be performed on or prior to
the Closing Date, or (2) materially breaches or has breached any of its representations or
warranties contained herein; provided, however, that in the case of clause (1) or (2), the
defaulting party shall have a period of ten (10) days following written notice from the
nondefaulting party to cure any breach of this Agreement, if such breach is curable.

     7.2 Effect of Termination.

    (a) In the event of the termination of this Agreement by a party, as provided above,
this Agreement shall thereafter become void and there shall be no liability on the part of
any party hereto or their respective directors, officers, managers, equityholders,
representatives or agents, except as provided in Section 7.2(b) and Section 9.1 hereof and
except that any such termination shall be without prejudice to the rights of any party
hereto arising out of the willful breach by any other party of any representation, warranty,
covenant or agreement contained in this Agreement.

    (b) Buyer acknowledges that the Assets are not readily available in the open market and
the Assets are unique and specifically identifiable. Accordingly, Buyer agrees that if the
Closing does not occur because of the negligent or willful failure of Buyer to perform its
obligations hereunder (1) monetary damages and any other remedy
at law will not be adequate, (2) Sellers shall be entitled to specific performance as
the remedy for such breach, (3) Buyer waives any objection to the remedy of specific
performance, (4) Buyer agrees that the granting of specific performance by any court will
not be deemed to be harsh or oppressive to Buyer, who shall be ordered specifically to
perform its obligations under this Agreement, and (5) in connection with any action for
specific performance, Sellers shall be entitled to reasonable attorneys’ fees and other
costs of prosecuting such action. The right to seek specific performance hereunder shall
not preclude Sellers from seeking any other remedy at law or in equity.

-31-

 

Article VIII

INDEMNIFICATION

     8.1 Indemnification of Sellers. Buyer, from and after the Closing Date, shall
indemnify and hold Sellers and their affiliates, partners, directors, officers, employees, agents,
representatives and insurers and each Person that controls any of the foregoing (together with the
Sellers, the “Seller Parties”) harmless from and against any and all damages (including exemplary
damages and penalties), losses, deficiencies, costs, expenses, obligations, fines, expenditures,
claims and liabilities, including reasonable counsel fees and reasonable expenses of investigation,
defending and prosecuting litigation (collectively, the “Damages”), suffered by any of the Seller
Parties as a result of, caused by, arising out of, or in any way relating to (a) subject to Section
6.2, any misrepresentation, breach of warranty or any misrepresentation in or omission from any
list, schedule, certificate, or other instrument furnished or to be furnished to the Sellers by the
Buyer pursuant to the terms of this Agreement, (b) any nonfulfillment of any agreement or covenant
on the part of the Buyer under this Agreement, (c) any liability or obligation which pertains to
the ownership or operation of the Assets on and after the Closing Date, (d) the Assumed Obligations
and (e) the operation of the Business and the ownership of the Assets on and after the Closing
Date.

     8.2 Indemnification of Buyer. Sellers shall indemnify and hold Buyer and its
affiliates, directors, officers, employees, agents, representatives and insurers and each Person
that controls any of the foregoing (together with the Buyer, the “Buyer Parties”) harmless from and
against any and all Damages suffered by any of the Buyer Parties as a result of, caused by, arising
out of, or in any way relating to (a) subject to Section 6.2, any misrepresentation, breach of
warranty or any misrepresentation in or omission from any list, schedule, certificate, or other
instrument furnished or to be furnished to the Buyer by the Sellers pursuant to the terms of this
Agreement, (b) any nonfulfillment of any agreement or covenant on the part of the Sellers under
this Agreement, (c) the Excluded Assets, and (d) the Excluded Liabilities.

     8.3 Demands. Each indemnified party hereunder agrees that promptly upon its discovery
of facts giving rise to a claim for indemnity under the provisions of this Agreement, including
receipt by it of notice of any demand, assertion, claim, action or proceeding, judicial or
otherwise, by any third party (such third party actions being collectively referred to herein as
the “Claim”), with respect to any matter as to which it claims to be entitled to indemnity under
the provisions of this Agreement, it will give prompt notice thereof in writing to the indemnifying
party, together with a statement of such information respecting any of the foregoing as it shall
have. Such notice shall include a formal demand for indemnification under this Agreement. The
indemnifying party shall not be obligated to indemnify the indemnified party with respect to
any Claim if the indemnified party knowingly failed to notify the indemnifying party thereof in
accordance with the provisions of this Agreement in sufficient time to permit the indemnifying
party or its counsel to defend against such matter and to make a timely response thereto including,
without limitation, any responsive motion or answer to a complaint, petition, notice or other
legal, equitable or administrative process relating to the Claim, only insofar as such knowing
failure to notify the indemnifying party has actually resulted in prejudice or damage to the
indemnifying party.

-32-

 

     8.4 Right to Contest and Defend. The indemnifying party shall be entitled at its cost
and expense to contest and defend by all appropriate legal proceedings any Claim with respect to
which it is called upon to indemnify the indemnified party under the provisions of this Agreement;
provided, that notice of the intention so to contest shall be delivered by the indemnifying party
to the indemnified party within 20 days from the date of receipt by the indemnifying party of
notice by the indemnified party of the assertion of the Claim. Any such contest may be conducted
in the name and on behalf of the indemnifying party or the indemnified party as may be appropriate.
Such contest shall be conducted by reputable counsel employed by the indemnifying party, but the
indemnified party shall have the right but not the obligation to participate in such proceedings
and to be represented by counsel of its own choosing at its sole cost and expense. The
indemnifying party shall have full authority to determine all action to be taken with respect
thereto; provided, however, that the indemnifying party will not have the authority to subject the
indemnified party to any obligation whatsoever, other than the performance of purely ministerial
tasks or obligations not involving material expense. If the indemnifying party does not elect to
contest any such Claim, the indemnifying party shall be bound by the result obtained with respect
thereto by the indemnified party. At any time after the commencement of the defense of any Claim,
the indemnifying party may request the indemnified party to agree in writing to the abandonment of
such contest or to the payment or compromise by the indemnified party of the asserted Claim,
whereupon such action shall be taken unless the indemnified party determines that the contest
should be continued, and so notifies the indemnifying party in writing within ten (10) days of such
request from the indemnifying party. If the indemnified party determines that the contest should
be continued, the indemnifying party shall be liable hereunder only to the extent of the amount
that the other party to the contested Claim had agreed unconditionally to accept in payment or
compromise as of the time the indemnifying party made its request therefor to the indemnified
party.

     8.5 Cooperation. If requested by the indemnifying party, the indemnified party agrees
to cooperate with the indemnifying party and its counsel in contesting any Claim that the
indemnifying party elects to contest or, if appropriate, in making any counterclaim against the
Person asserting the Claim, or any cross-complaint against any Person, and the indemnifying party
will reimburse the indemnified party for any expenses incurred by it in so cooperating. At no cost
or expense to the indemnified party, the indemnifying party shall cooperate with the indemnified
party and its counsel in contesting any Claim.

     8.6 Right to Participate. The indemnified party agrees to afford the indemnifying
party and its counsel the opportunity to be present at, and to participate in, conferences with all
Persons, including governmental authorities, asserting any Claim against the indemnified party or
conferences with representatives of or counsel for such Persons.

-33-

 

     8.7 Payment of Damages. The indemnifying party shall pay to the indemnified party in
immediately available funds any amounts to which the indemnified party may become entitled by
reason of the provisions of this Agreement, such payment to be made within five days after any such
amounts are finally determined either by mutual agreement of the parties hereto or pursuant to the
final unappealable judgment of a court of competent jurisdiction. In calculating any amount to be
paid by an indemnifying party by reason of the provisions of this Agreement, the amount shall be
reduced by all tax benefits and other reimbursements credited to or received by the other party
related to the Damages.

     8.8 Limitations on Indemnification.

    (a) Sellers shall not be liable for Damages under Section 8.2(a) unless the aggregate
amount of Damages for which Sellers would, but for the provisions of this Section 8.8, be
liable exceeds on an aggregate basis $1,000,000, and then only to the extent of any such
excess; provided that Sellers shall not be liable for the amount of Damages under Section
8.2(a) that exceed in the aggregate $18,000,000 (the “Cap”), subject to adjustment.

    (b) To the extent any Damages are paid by Sellers under Section 8.8(a), the Cap shall
be reduced accordingly. When the Cap is reduced to zero, Sellers shall no longer be liable
for any Damages under Section 8.8(a) other than with respect to Sellers’ representations and
warranties under Sections 2.12 and 2.13, at which time Sellers shall be liable only for
further claims under Sections 2.12 and 2.13 that do not in the aggregate exceed
$126,000,000.

    (c) Notwithstanding anything contained herein to the contrary, this Section 8.8 and the
limitations contained herein shall not apply to Sellers’ representations and warranties
under Sections 2.1, 2.2, 2.3(a), (b) and (c), 2.20, 2.21 or 2.22.

     8.9 Sole Remedy. No party shall have liability under the Constituent Documents, as
defined below, or the transactions contemplated thereby except as is provided in Section 7.2 or
this Article 8, as applicable.

     8.10 General Limitation of Damages. NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT TO THE CONTRARY, EXCEPT AS SET FORTH IN SECTION 8.11, NEITHER SELLERS NOR BUYER
SHALL BE LIABLE TO ANY INDEMNIFIED PARTY FOR ANY EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT,
CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES (INCLUDING ANY DAMAGES ON ACCOUNT OF LOST PROFITS OR
OPPORTUNITIES) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

     8.11 No Waiver Relating to Claims for Fraud/Willful Misconduct. Any claim for any
breach of representation, warranty, covenant or agreement specified in Article VIII shall have as
its sole remedy the indemnification provided in Article VIII. Notwithstanding the foregoing, none
of the provisions set forth in this Agreement shall be deemed to be a waiver by or release of any
party of any right or remedy which such party may have at law or equity based on any other
party’s fraudulent acts or omissions or willful misconduct nor shall any such provisions
limit, or be deemed to limit (a) the amounts of recovery sought or awarded in any such claim for
fraud or willful misconduct, (b) the time period during which a claim for fraud or willful
misconduct may be brought, or (c) the recourse which any such party for fraud or willful
misconduct.

-34-

 

Article IX

MISCELLANEOUS

     9.1 Expenses and Payments. Regardless of whether the transactions contemplated hereby
are consummated, each party hereto shall pay its own expenses incident to this Agreement and all
action taken in preparation for carrying this Agreement into effect. Any payment to be made under
this Agreement shall be made by wire transfer to an account designated by the recipient.

     9.2 Notices. Any notice, request, instruction, correspondence or other document to be
given hereunder by either party to the other (herein collectively called “Notice”) shall be in
writing and delivered in person or by courier service requiring acknowledgment of receipt of
delivery or mailed by certified mail, postage prepaid and return receipt requested, or by
telecopier, as follows:

If to Sellers, addressed to:

Kenneth A. Heinz,

Sr. Vice President, Corporate Development

Ferrellgas, Inc.

7500 College Boulevard

Suite 1000

Overland Park, Kansas 66210

Telecopy: (913) 661-1809

with a copy to:

Mayer, Brown, Rowe & Maw LLP

700 Louisiana, Suite 3600

Houston, Texas 77002

Attention: David L. Ronn

Telecopy: (713) 632-1825

-35-

 

If to Buyer, addressed to:

Richard H. Bachmann

Chief Legal Officer

Enterprise Products Operating L.P.

(by delivery)

2727 North Loop West

7th Floor

Houston, Texas 77008-1044

(by mail)

P.O. Box 4324

Houston, Texas 77210-4324

Telecopy: (713) 880-6570

Notice given by personal delivery, courier service or mail shall be effective upon actual receipt.
Notice given by telecopier shall be confirmed by appropriate answer back and shall be effective
upon actual receipt if received during the recipient’s normal business hours, or at the beginning
of the recipient’s next business day after receipt if not received during the recipient’s normal
business hours. Any party may change any address to which Notice is to be given to it by giving
Notice as provided above of such change of address.

     9.3 No Negotiations. Until the first to occur of the Closing or termination of this
Agreement pursuant to the provisions of Article VII, Sellers shall not initiate or participate in
discussions with, or otherwise solicit from, any Person any proposals or offers relating to the
disposition of the Assets or the Business with any other Person.

     9.4 Governing Law. This Agreement shall be governed and construed in accordance with
the substantive laws of the State of New York without reference to principles of conflicts of law.

     9.5 Public Statements. The parties hereto shall consult with each other and no party
shall issue any public announcement or statement with respect to the transactions contemplated
hereby (not including any periodic report under the Securities Exchange Act of 1934, as amended, or
any registration statement under the Securities Act of 1933, as amended) without the consent of the
other parties, which consent shall not be unreasonably withheld, unless the party desiring to make
such announcement or statement, after seeking such consent from the other parties, obtains advice
from legal counsel that a public announcement or statement is required by applicable law.

     9.6 Entire Agreement; Amendments and Waivers. This Agreement, together with schedules
attached hereto, and any documents delivered pursuant hereto, and the Confidentiality Agreement
(collectively, the “Constituent Documents”), constitute the entire agreement among the parties
hereto pertaining to the subject matter hereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties, and there are no warranties,
representations or other agreements among the parties in connection with the subject matter hereof
except as set forth specifically herein or contemplated hereby. No
supplement, modification or waiver of this Agreement shall be binding unless executed in
writing by each party to be bound thereby. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether
similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly
provided.

-36-

 

     9.7 Binding Effect and Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective permitted successors and assigns; but
neither this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned,
by operation of law or otherwise, by any party hereto without the prior written consent of the
other parties; provided that Buyer may assign all of its rights, privileges and obligations
hereunder to any direct or indirect wholly-owned subsidiary of Buyer organized under the laws of
any State of the United States. No such assignment shall relieve Buyer of any of its obligations
under this Agreement. Nothing in this Agreement, express or implied, is intended to confer upon
any Person other than the parties hereto and their respective permitted successors and assigns, any
rights, benefits or obligations hereunder.

     9.8 Severability. If any one or more of the provisions contained in this Agreement or
in any other document delivered pursuant hereto shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision of this Agreement or any other such document.

     9.9 Headings and Schedules. The headings of the several Articles and Sections herein
are inserted for convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement. The schedules referred to herein are attached
hereto and incorporated herein by this reference, and unless the context expressly requires
otherwise, such schedules are incorporated in the definition of “Agreement.”

     9.10 Multiple Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

[signature page follows]

-37-

 

EXECUTED as of the date first set forth above.

	 	 	 	 	 
	 	BUYER:

ENTERPRISE PRODUCTS OPERATING L.P.

By Enterprise Products OLPGP, Inc., its general partner

 	 
	 	By:  	/s/ Michael A. Creel
 	 
	 	 	Name:  	Michael A. Creel 	 
	 	 	Title:  	Executive Vice President and Chief Financial

Officer 	 
	 
	 	SELLERS:

FERRELLGAS, L.P.

By Ferrellgas, Inc., its general partner

 	 
	 	By:  	/s/ Kenneth A. Heinz
 	 
	 	 	Name:  	Kenneth A. Heinz 	 
	 	 	Title:  	Sr. Vice President, Corporate Development 	 
	 
	 	FERRELLGAS, INC.

 	 
	 	By:  	/s/ Kenneth A. Heinz
 	 
	 	 	Name:  	Kenneth A. Heinz 	 
	 	 	Title:  	Sr. Vice President, Corporate Development 	 
	 

-38-exv4w1

 

Exhibit 4.1

FIRST SUPPLEMENTAL INDENTURE

     FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) executed as of June 22, 2005 by
and among Dean Holding Company, a Delaware corporation (formerly, Dean Foods Company) (the
“Company”), Dean Pickle and Specialty Products Company, a Wisconsin corporation (“Dean Pickle”) and
The Bank of New York Trust Company N.A. (as successor to The Bank of New York), as Trustee (the
“Trustee”).

RECITALS

     WHEREAS, the Company and the Trustee have heretofore executed and delivered that certain
Indenture, dated as of January 15, 1998 (the “Indenture”), pursuant to which the Company has or may
issue from time to time unsecured debentures, notes or other evidences of indebtedness in one or
more series (the “Securities”);

     WHEREAS, the Company plans to merge with and into Dean Pickle with Dean Pickle being the
surviving entity (the “Merger”), and upon consummation of the Merger, Dean Pickle will change its
name to Dean Holding Company;

     WHEREAS, the Merger is a permitted transaction pursuant to Section 9.1 of the Indenture
provided that the surviving entity expressly assumes, by a supplemental indenture, the due and
punctual payment of the principal of and interest on all the Securities according to their tenor,
and the due and punctual performance and observance of all of the covenants and conditions of the
Indenture to be performed or observed by the Company;

     WHEREAS, Dean Pickle desires to becomes the successor to the Company with respect to the
Securities and the Indenture as contemplated by Section 9.2 of the Indenture;

     WHEREAS, Section 8.1 of the Indenture provides that the Company, when authorized by a
resolution of its board of directors, and the Trustee may enter into indentures supplemental to the
Indenture without the consent of the Holders;

     WHEREAS, the execution and delivery of this Supplemental Indenture has been duly authorized by
the parties hereto, and all other acts necessary to make this Supplemental Indenture a valid and
binding supplement to the Indenture, effectively supplementing the Indenture as set forth herein,
have been duly taken;

     NOW, THEREFORE, in consideration of the above premises and for other good and valuable
consideration, the receipt of which is hereby acknowledged, it is mutually agreed, for the equal
and proportionate benefit of all Holders, as follows:

 

 

ARTICLE ONE

     1.1 Upon the consummation of the Merger, Dean Pickle agrees to assume the due and punctual
payment of the principal of and interest on all the Securities according to their tenor, and the
due and punctual performance and observance of all of the covenants and conditions of the Indenture
to be performed or observed by the Company.

ARTICLE TWO

     2.1 All terms used in this Supplemental Indenture which are defined in the Indenture and not
otherwise defined herein shall have the meanings assigned to such terms in the Indenture.

     2.2 All of the provisions of this Supplemental Indenture shall be deemed to be incorporated
in, and made part of, the Indenture, and the Indenture, as amended and supplemented by this
Supplemental Indenture, shall be read, taken and construed as one and the same instrument and shall
be binding upon all the Holders.

     2.3 This Supplemental Indenture may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.

     2.4 In case any provision in this Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

     2.5 Nothing in this Supplemental Indenture, express or implied, shall give any person, other
than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or
equitable right, remedy or claim under this Supplemental Indenture. Except as expressly
supplemented or amended as set forth in this Supplemental Indenture, the Indenture is hereby
ratified and confirmed, and all the terms, provisions and conditions thereof shall be and continue
in full force and effect. The Trustee accepts the trusts created by the Indenture, as amended and
supplemented by this Supplemental Indenture, and agrees to perform the same upon the terms and
conditions in the Indenture as amended and supplemented by this Supplemental Indenture.

     2.6 The Trustee shall not be responsible in any manner whatsoever for or in respect of the
validity or sufficiency of this Supplemental Indenture, except with respect to the execution hereof
by the Trustee, or for or in respect of the recitals contained herein, all of which are made solely
by the Company and Dean Pickle.

* * * * * * *

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed, all as of the day and year first written above.

	 	 	 	 	 
	 	DEAN HOLDING COMPANY

 	 
	 	/s/ Lisa N. Tyson
 	 
	 	Name:  	Lisa N. Tyson 	 
	 	Title:  	Senior Vice President, Deputy General Counsel
	 
	 	and Assistant Secretary 	 
	 
	 	DEAN PICKLE AND SPECIALTY PRODUCTS COMPANY

 	 
	 	/s/ Lisa N. Tyson
 	 
	 	Name:  	Lisa N. Tyson 	 
	 	Title:  	Vice President and Secretary 	 
	 
	 	THE BANK OF NEW YORK TRUST COMPANY N.A.,

As successor Indenture Trustee to The Bank of

New York as Indenture Trustee

 	 
	 	/s/ Patrick T. Giordano
 	 
	 	Name:  	Patrick T. Giordano 	 
	 	Title:  	Vice President

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