Document:

The 2009 Praxair, Inc. Long Term Incentive Plan

 Exhibit 10.01 
 2009 Praxair, Inc. 
 Long Term Incentive Plan 
 Effective April 28, 2009 

 Contents 
  

			
	Article 1. Establishment, Purpose, and Duration	  	2
	Article 2. Definitions	  	2
	Article 3. Administration	  	8
	Article 4. Shares Subject to this Plan and Maximum Awards	  	9
	Article 5. Eligibility and Participation	  	11
	Article 6. Stock Options	  	11
	Article 7. Stock Appreciation Rights	  	13
	Article 8. Restricted Stock Grants	  	14
	Article 9. Performance Units	  	16
	Article 10. Other Stock-Based Awards	  	17
	Article 11. Transferability of Awards	  	18
	Article 12. Performance Measures	  	19
	Article 13. Dividend Equivalents	  	20
	Article 14. Beneficiary Designation	  	21
	Article 15. Rights of Participants	  	21
	Article 16. Change in Control	  	21
	Article 17. Amendment, Modification, Suspension, and Termination	  	23
	Article 18. Withholding	  	23
	Article 19. Successors	  	24
	Article 20. General Provisions	  	24

 2009 Praxair, Inc. 
 Long Term Incentive Plan 
 Article 1. Establishment, Purpose, and Duration 
 1.1 Establishment. Praxair, Inc., a Delaware corporation (hereinafter referred to as the “Company”), establishes an incentive
compensation plan to be known as the 2009 Praxair, Inc. Long Term Incentive Plan (hereinafter referred to as the “Plan”), as set forth in this document. 
 This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights (“SARs”), Restricted Stock, Restricted Stock Units, Performance Units, and Other Stock-Based
Awards. 
 This Plan was adopted by the Board on February 24, 2009. This Plan shall become effective upon shareholder approval (the
“Effective Date”) and shall remain in effect as provided in Section 1.3 hereof. 
 1.2 Purpose of this Plan. The
purpose of this Plan is to provide a means whereby Employees develop personal involvement in the financial success of the Company, and to encourage them to devote their best efforts to the business of the Company, thereby advancing the interests of
the Company and its shareholders. A further purpose of this Plan is to provide a means through which the Company may attract and retain able Employees and to provide a means whereby those individuals can acquire and maintain stock ownership, thereby
strengthening their concern for the welfare of the Company. 
 1.3 Duration of this Plan. Unless sooner terminated as provided herein,
this Plan shall terminate February 24, 2019. After this Plan is terminated, no Awards may be granted but Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions and this Plan’s terms and
conditions. 
 Article 2. Definitions 
 Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized. 
 2.1 “Award” means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock
Options, SARs, Restricted Stock, Restricted Stock Units, Performance Units, or Other Stock-Based Awards, in each case subject to the terms of this Plan. 
 2.2 “Award Agreement” means either (a) a written agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this
Plan, or (b) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, 

  

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including any amendment or modification thereof. The Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the
use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 
 2.3
“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act. 
 2.4 “Board” means the Board of Directors of the Company. 
 2.5 “Change in Control” means the occurrence of any one of the following events with respect to the Company: 
  

	 	(a)	individuals who, on January 1, 2009, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided
that any person becoming a director subsequent to January 1, 2009, whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of
the Company proxy statement in which such person is named as a nominee for director, without objection to such nomination) shall be an Incumbent Director; provided, however, that no individual elected or nominated as a director of the Company
initially as a result of an actual or threatened election contest with respect to directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any person other than the Board shall be deemed an Incumbent
Director; 

  

	 	(b)	any “person” (as such term is defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or becomes a
Beneficial Owner, directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Praxair Voting
Securities”); provided, however, that the event described in this Subsection 2.5(b) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions: (A) by the Company or any of its subsidiaries; (B) by
any employee benefit plan sponsored or maintained by the Company or any of its subsidiaries; (C) by any underwriter temporarily holding securities pursuant to an offering of such securities; or (D) pursuant to a Non-Qualifying Transaction
(as defined in Subsection 2.5(c)); 

  

	 	(c)	 the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or any of its subsidiaries that
requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such Business Combination: (A)

  

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more than 50% of the total voting power of (x) the corporation resulting from such Business Combination (the “Surviving Corporation”), or
(y) if applicable, the ultimate parent corporation that directly or indirectly has Beneficial Ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is
represented by Praxair Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, shares into which such Praxair Voting Securities were converted pursuant to such Business Combination), and such voting
power among the holders thereof is in substantially the same proportion as the voting power of such Praxair Voting Securities among the holders thereof immediately prior to the Business Combination, (B) no person (other than any employee
benefit plan sponsored or maintained by the Surviving Corporation or the Parent Corporation), is or becomes the Beneficial Owner, directly or indirectly, of 20% or more of the total voting power of the outstanding voting securities eligible to elect
directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) and (C) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the
Surviving Corporation) were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Business Combination (any Business Combination which satisfies all of the criteria specified in
(A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 

  

	 	(d)	the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or a sale or disposition of all or substantially all of the Company’s
assets. 

 Notwithstanding the foregoing, to the extent an Award is subject to Code Section 409A, the Committee shall have
the discretion to define Change in Control for such Award in a manner which complies with such Code Section. 
 2.6
“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any
successor or similar provision. 
 2.7 “Committee” means the Compensation and Management Development Committee of the
Board, or any other committee designated by the Board to administer this Plan. The Committee shall consist of not less than two directors. However, if a member of the Committee is not an “outside director” within the meaning of Code
Section 162(m) or is not a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act, the Committee may from time to time delegate some or all of its functions under the Plan to a committee or subcommittee
composed of members that meet the relevant requirements. The term “Committee” includes any such committee or subcommittee, to the extent of the Compensation and Management Development 

  

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Committee’s delegation. If the Committee does not exist or cannot function for any reason, the Board may take any action under the Plan that would
otherwise be the responsibility of the Committee, other than any actions required to be carried out by a committee of at least two “outside directors” or “non-employee directors”. 
 2.8 “Company” means Praxair, Inc., a Delaware corporation, and any successor thereto as provided in Article 19 herein.

 2.9 “Covered Employee” means any Employee who is or may become a “Covered Employee,” as defined in Code
Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of (a) ninety (90) days after the beginning of the Performance Period, or (b) the period prior to
the date twenty-five percent (25%) of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period. 
 2.10 “Effective Date” has the meaning set forth in Section 1.1. 
 2.11
“Employee” means any individual performing services for the Company or a Subsidiary and designated as an employee of the Company or its Subsidiaries on the payroll records thereof. An Employee shall not include any individual during
any period he or she is classified or treated by the Company or its Subsidiary as an independent contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity other than the Company or its
Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a common-law employee of the Company or its Subsidiary during such period. 
 2.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

2.13 “Fair Market Value” or “FMV” means, in respect of any date on or as of which a determination thereof is
being or to be made, the closing market price of a Share reported on the New York Stock Exchange Composite Transactions tape on such date, or, if no Shares were traded on such date, on the next preceding day on which sales of Shares were reported on
the New York Stock Exchange Composite Transactions tape. 
 2.14 “Grant Date” means the date an Award is granted to a
Participant pursuant to the Plan. 
 2.15 “Grant Price” means the price established at the time of grant of a SAR pursuant
to Article 7, used to determine whether there is any payment due upon exercise of the SAR. 
  

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 2.16 “Incentive Stock Option” or “ISO” means an Option to
purchase Shares granted under Article 6 to an Employee that is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision. 
 2.17 “Insider” shall mean an individual who is, on the relevant date, an executive officer of the Company or a more than
ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section 16 of the Exchange Act.

 2.18 “Market Price” means, in respect of any date on or as of which a determination thereof is being or to be
made, the average of the high and low prices of a Share reported on the New York Stock Exchange Composite Transactions tape on such date, or, if no Shares were traded on such date, on the next preceding day on which sales of Shares were reported on
the New York Stock Exchange Composite Transactions tape. 
 2.19 “Nonqualified Stock Option” or
“NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise does not meet such requirements. 
 2.20 “Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6. 
 2.21 “Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option. 
 2.22 “Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10. 
 2.23 “Participant” means any Employee to whom an Award is granted. 
 2.24 “Performance-Based Compensation” means compensation under an Award that is intended to satisfy the requirements of Code
Section 162(m) for certain performance-based compensation paid to Covered Employees. Any Award granted hereunder that is intended to be Performance-Based Compensation within the meaning of Code Section 162(m) shall be subject to the terms
and provisions of this Plan and not the Praxair, Inc. Plan for Determining Performance-Based Awards Under Section 162(m). 
 2.25
“Performance Goal” means, with respect to any applicable Award, the one or more targets, goals or levels of attainment required to be achieved in terms of the specified Performance Measures during the specified Performance Period, as
set forth in the related Award Agreement. 
  

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 2.26 “Performance Measures” means: (a) with respect to any Award intended to
qualify as Performance-Based Compensation, any one or more of the measures described in Article 12 on which the Performance Goals are based and which are approved by the Company’s shareholders pursuant to this Plan in order to qualify Awards as
Performance-Based Compensation; and (b) with respect to any other Award, such performance measures as determined by the Committee in its sole discretion and set forth in the applicable Award Agreement for purposes of determining the applicable
Performance Goal. 
 2.27 “Performance Period” means the period of time during which the Performance Goals must be
met in order to determine the degree of payout and/or vesting with respect to an Award. 
 2.28 “Performance Unit”
means an Award under Article 9 herein and subject to the terms of this Plan, denominated in Units, the value of which at the time it is payable is determined as a function of the extent to which corresponding Performance Goal(s) has been achieved
during the applicable Performance Period. 
 2.29 “Plan” means this 2009 Praxair, Inc. Long Term Incentive Plan.

 2.30 “Restricted Stock” means Shares issued pursuant to a Restricted Stock Grant under Article 8 so long as the Shares
remain subject to the restrictions and conditions specified in the Award Agreement pursuant to which such Restricted Stock Grant is made. 
 2.31 “Restricted Stock Grant” means an Award of Restricted Stock or Restricted Stock Units made pursuant to the provisions of Article 8. 
 2.32 “Restricted Stock Unit” means a Unit issued pursuant to a Restricted Stock Grant under Article 8 so long as the Units remain subject to the restrictions and conditions specified in the
Award Agreement. 
 2.33 “Restriction Period” means the period when Restricted Stock or Restricted Stock Units are subject
to a substantial risk of forfeiture (based on the passage of time, the achievement of Performance Goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8. 
 2.34 “Share” means a share of common stock of the Company, $0.01 par value per share or any security issued by the Company in
substitution or exchange therefor or in lieu thereof. 
 2.35 “Share Equivalent” means a Unit (or fraction thereof,
if authorized by the Committee) substantially equivalent to a hypothetical Share, credited to the Participant and having a value at any time equal to the FMV of a Share (or fraction thereof) at such time. 
  

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 2.36 “Stock Appreciation Right” or “SAR” means an Award,
designated as a SAR, pursuant to the terms of Article 7 herein. 
 2.37 “Subsidiary” means any corporation or other
entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, a proprietary interest of fifty percent (50%) or greater by reason of stock ownership or otherwise; provided, however, that (a) for purposes
of determining whether any Employee can be a Participant with respect to any Award of Incentive Stock Option, the term “Subsidiary” has the meaning given to such term in Code Section 424, as interpreted by the regulations thereunder
and applicable law; and (b) for purposes of determining whether any individual may be a Participant with respect to any Award of Options or SARs that are intended to be exempt from Code Section 409A, the term “Subsidiary” means
any corporation or other entity to which the Company is an “eligible issuer of service recipient stock” within the meaning of Code Section 409A. 
 2.38 “Unit” means a bookkeeping entry used by the Company to record and account for the grant or settlement of an Award until such time as the Award is paid, canceled, forfeited or terminated,
as the case may be, which, except as otherwise specified by the Committee, shall be equal to one Share Equivalent. 
 Article 3. Administration

 3.1 General. The Committee shall be responsible for administering this Plan, subject to this Article 3 and the other provisions
of this Plan. The Committee may employ attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee, and the Committee, the Company, and its officers and directors shall be entitled to rely upon the advice,
opinions, or valuations of any such individuals. All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company, and all other interested individuals. 
 3.2 Authority of the Committee. The Committee shall have full and exclusive discretionary power to interpret the terms and the intent of this Plan
and any Award Agreement or other agreement or document ancillary to, or in connection with, this Plan, to determine eligibility for Awards and to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as the
Committee may deem necessary or proper. Such authority shall include, but not be limited to, selecting Participants, establishing all Award terms and conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an
alternative to or as the form of payment for grants or rights earned or due under compensation plans or arrangements of the Company, construing any ambiguous provision of the Plan or any Award Agreement, and, subject to Article 17, adopting
modifications and amendments to this Plan or any Award Agreement, including without limitation, any that are necessary to comply with the laws of the countries and other jurisdictions in which the Company and/or its Subsidiaries operate. 

 

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 3.3 Delegation. The Committee may delegate to one or more of its members or to one or more
officers of the Company, and/or its Subsidiaries or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may
employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan. The Committee may, by resolution, authorize the Chief Executive Officer of the Company (the
“CEO”) or any other officer of the Company, to do one or both of the following on the same basis as can the Committee: (a) designate Employees to be recipients of Awards and (b) determine the size of any such Awards; provided,
however, (i) the Committee shall not delegate such responsibilities for any Awards to be granted to an Employee who is considered an Insider; (ii) the resolution providing such authorization sets forth the total number of Awards the CEO or
officer may grant; and (iii) the CEO or officer, as applicable, shall report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. 
 Article 4. Shares Subject to this Plan and Maximum Awards 
 4.1 Number of Shares Available for Awards. Subject to adjustment as provided in Section 4.4, the maximum number of Shares which may be issued pursuant to Awards under this Plan on or after the Effective Date shall be 12,000,000
Shares (the “Share Authorization”). The Shares available for issuance under this Plan may be authorized and unissued Shares or treasury Shares. The maximum number of Shares of the Share Authorization that may be issued pursuant to ISOs
under this Plan shall be 12,000,000 Shares. The maximum number of Shares of the Share Authorization that may be issued under this Plan pursuant to Awards other than Options or SARs shall be 4,000,000 Shares. 
 4.2 Share Usage. Shares subject to an Award that expires according to its terms or is forfeited, terminated, canceled or surrendered, in each
case, without having been exercised or settled, or can be paid only in cash, will be available again for grant under the Plan, without reducing the number of Shares that are available for Awards under the Plan. In no event shall (a) any Shares
subject to an Option that is cancelled upon the exercise of a tandem SAR; (b) any Shares subject to an Award that are surrendered in payment of the exercise price of an Option or in payment of the taxes associated with an Award; or (c) any
Shares subject to a SAR that are not issued in connection with the stock settlement of the SAR upon exercise thereof become available for grant under the Plan pursuant to this Section. 
 4.3 Annual Award Limits. Unless and until the Committee determines that an Award to a Covered Employee shall not be designed to qualify as
Performance-Based Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”), as adjusted pursuant to Sections 4.4, shall apply to grants of such Awards under this Plan: 

 

	 	(a)	Options: The maximum aggregate number of Shares subject to Options granted in any one calendar year to any one Participant shall be 1,000,000. 

  

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	 	(b)	SARs: The maximum number of Shares subject to SARs granted in any one calendar year to any one Participant shall be 1,000,000. 

  

	 	(c)	Restricted Stock or Restricted Stock Units: The maximum aggregate Restricted Stock Grant in any one calendar year to any one Participant shall be 300,000 Shares, or equal to
the Fair Market Value of 300,000 Shares, determined as of the date of vesting or payout, as applicable. 

  

	 	(d)	Performance Units: The maximum aggregate Award of Performance Units that a Participant may receive in any one calendar year shall be 300,000 Shares, or equal to the Fair
Market Value of 300,000 Shares, determined as of the date of vesting or payout, as applicable. 

  

	 	(e)	Other Stock-Based Awards: The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Section 10.1 in any one calendar year to any one Participant
shall be 300,000 Shares. 

 4.4 Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split,
reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in capital structure, number of outstanding Shares or distribution
(other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as
applicable, the number and kind of Shares that may be issued under this Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the
Annual Award Limits, and other value determinations applicable to outstanding Awards. 
 To further reflect any of the foregoing
events, transactions or adjustments, the Committee, in its sole discretion, may also make adjustments in the terms of any Awards under this Plan and may modify any other terms of outstanding Awards, including modifications of Performance Goals and
changes in the length of Performance Periods, as it deems necessary or appropriate. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan. 
 Subject to the provisions of Article 17 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or
available hereunder, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem
appropriate (including, but not limited to, a conversion of equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44), subject to compliance with the rules under Code Sections 422 and 424,
as and where applicable. 
  

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 Article 5. Eligibility and Participation 
 Only Employees shall be eligible to participate in this Plan. Subject to the provisions of this Plan, the Committee may, from time to time, select those
Employees to whom Awards shall be granted and shall determine, in its sole discretion, the nature of, any and all terms permissible by law, and the amount of each Award. 
 Article 6. Stock Options 
 6.1 Grant of Options. Subject to the terms and provisions of this
Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion. Options may be granted in addition to, or in tandem with or
independent of, SARs or any other Awards under the Plan. 
 6.2 Award Agreement. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the term of the Option, the number of Shares to which the Option pertains, the conditions, including any Performance Goals, upon which an Option shall become vested and exercisable, and such other terms
and conditions as the Committee shall determine which are not inconsistent with the terms of this Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. 
 6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and
shall be specified in the Award Agreement; provided, however, the Option Price must be at least equal to 100% of the FMV of the Shares as determined on the Grant Date. 
 6.4 Term of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the
time of grant; provided, however, no Option shall be exercisable later than the day before the tenth (10th) anniversary of its Grant Date. 
 6.5 Exercise of Options. Options granted under this Article
6 shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant. Except upon a
Change in Control and in certain limited situations (including, but not limited to, the death or disability of the Participant): (a) Awards of Options subject solely to the continued service of the Participant shall become exercisable no
earlier than three (3) years after the Grant Date provided that such Option may partially vest after no less than one year following such Grant Date; and (b) any other Award of Options shall become exercisable no earlier than one
(1) year after the Grant Date.  
  

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 6.6 Payment. Options granted under this Article 6 shall be exercised by the delivery of a notice
of exercise to the Company or an agent designated by the Company in a form specified or accepted by the Committee, or by complying with any alternative procedures which may be authorized by the Committee, setting forth the number of Shares with
respect to which the Option is to be exercised, accompanied by full payment for the Shares. 
 A condition of the issuance of the Shares as
to which an Option shall be exercised shall be the payment of the Option Price. The Option Price of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or
attestation) previously acquired Shares having an aggregate Market Price at the time of exercise equal to the Option Price (provided that except as otherwise determined by the Committee, the Shares that are tendered must have been held by the
Participant for at least six (6) months (or such other period, if any, as the Committee may permit) prior to their tender to satisfy the Option Price if acquired under this Plan or any other compensation plan maintained by the Company or have
been purchased on the open market); (c) by having the Company withhold Shares that otherwise would be delivered to the exerciser pursuant to the exercise of the Option having a value equaling the aggregate Option Price due; (d) by a
cashless (broker-assisted) exercise; (e) by a combination of (a), (b), (c) and/or (d); or (f) any other method approved or accepted by the Committee in its sole discretion. 
 Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including
satisfaction of any applicable tax withholding), the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares
purchased under the Option(s). 
 Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall
be paid in United States dollars. 
 6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the
requirements of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares. 
 6.8 Termination of Employment. Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to
exercise the Option following termination of the Participant’s employment or provision of services to the Company and/or its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the
Award Agreement entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on the reasons for termination. 
  

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 6.9 Notification of Disqualifying Disposition. If any Participant shall make any disposition of
Shares issued pursuant to the exercise of an ISO under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten (10) days
thereof. 
 Article 7. Stock Appreciation Rights 
 7.1 Grant of SARs. Subject to the terms and conditions of this Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee, in its sole discretion. Subject to the terms and
conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, in determining the terms and conditions pertaining to such SARs.
SARs may be granted under the Plan alone, in tandem with, in addition to or independent of, Options or any other Awards under the Plan. 
 7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the SAR, the number of Shares to which the SAR pertains, the conditions, including any Performance Goals, upon
which the SAR shall become vested and exercisable, and such other terms and conditions as the Committee shall determine which are not inconsistent with the terms of this Plan. 
 7.3 Term of SAR. The term of a SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and
specified in the SAR Award Agreement; provided, however, no SAR shall be exercisable later than the tenth (10th) anniversary of its Grant Date. 
 7.4 Grant Price. The Grant Price for each Award of a SAR
shall be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price must be at least equal to 100% of the FMV of the Shares as determined on the Grant Date. 
 7.5 Exercise of SARs. SARs granted under this Article 7 shall be exercisable at such times and be subject to such restrictions and conditions
as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant. Except upon a Change in Control and in certain limited situations (including, but not limited to, the death or
disability of the Participant): (a) Awards of SARs subject solely to the continued service of the Participant shall become exercisable no earlier than three (3) years after the Grant Date provided that such SAR may partially vest after no
less than one year following such Grant Date; and (b) any other Award of SARs shall become exercisable no earlier than one (1) year after the Grant Date. The Committee may provide that a SAR shall be automatically exercised on one or more
specified dates. 
 7.6 Settlement of SARs. Upon the exercise of a SAR, a Participant shall be entitled to receive payment from the
Company in an amount determined by multiplying: 
  

	 	(a)	The excess of the FMV of a Share on the date of exercise over the Grant Price; by 

  

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	 	(b)	The number of Shares with respect to which the SAR is exercised. 

 At the discretion of the Committee, the payment upon exercise of a SAR may be in cash, Shares, or any combination thereof, or in any other manner approved by the Committee in its sole discretion. The Committee’s determination regarding
the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR. 
 7.7 Termination of Employment.
Each Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the SAR following termination of the Participant’s employment with the Company and/or its Subsidiaries. Such provisions shall be
determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the reasons for
termination. 
 7.8 Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares received
upon exercise of a SAR granted pursuant to this Plan as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of a SAR for a
specified period of time. 
 Article 8. Restricted Stock Grants 
 8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Restricted Stock Grants to Participants in
such amounts as the Committee shall determine. A Restricted Stock Grant is the issue of Shares or Units in the name of a Participant subject to such terms and conditions as the Committee shall deem appropriate, including, without limitation,
restrictions on the sale, assignment, transfer or other disposition of such Shares or Units and the requirement that the Participant forfeit such Shares or Units back to the Company (a) upon termination of employment for specified reasons
within a specified period of time; (b) if any specified Performance Goals are not achieved during a specified Performance Period; or (c) if such other conditions as the Committee may specify are not satisfied. 
 8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock Grant shall be evidenced by an Award Agreement that shall specify
the Restriction Period(s), the number of Shares of Restricted Stock and/or Restricted Stock Units granted, the conditions and restrictions imposed upon the Restricted Stock Grant, and such other provisions as the Committee shall determine which are
not inconsistent with the terms of this Plan. 
  

 14 

 8.3 Restriction Period. Each Restricted Stock Grant shall provide that in order for a Participant
to receive unrestricted Shares or payment in settlement of a Restricted Stock Unit, the Participant must remain an Employee for a period of time specified by the Committee in the Award Agreement. The Committee may also establish one or more
Performance Goals that are required to be achieved during one or more Performance Periods within the Restriction Period as a condition to the lapse of restrictions. Except upon a Change in Control and in certain limited situations (including, but
not limited to, the death or disability of the Participant): (a) Awards of Restricted Stock and/or Restricted Stock Units subject solely to the continued service of the Participant shall have a Restriction Period of not less than three
(3) years from the Grant Date; and (b) Awards of Restricted Stock and/or Restricted Stock Units subject to the achievement of one or more Performance Goals shall have a minimum Restriction Period of one (1) year. The Committee may
provide for the pro rata lapse of restrictions in installments during the Restriction Period. 
 8.4 Restrictions. The following
restrictions and conditions shall apply to each Restricted Stock Grant during the Restriction Period: (a) the Participant may not sell, assign, transfer, pledge, hypothecate, encumber or otherwise dispose of or realize on the Shares or Units
subject to the Restricted Stock Grant; and (b) the Shares issued as Restricted Stock or the Restricted Stock Units shall be forfeited to the Company if the Participant for any reason ceases to be an Employee prior to the end of the Restriction
Period, except due to circumstances specified in the related Award Agreement or otherwise approved by the Committee. Unless otherwise directed by the Committee, (i) all certificates representing Shares of Restricted Stock will be held in
custody by the Company until all restrictions thereon have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are registered, endorsed in blank and covering such Shares, or (ii) all
uncertificated Shares of Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Shares of Restricted Stock. The Committee may, in its sole discretion,
include such other restrictions and conditions as it may deem appropriate. 
 The Committee may, in its sole discretion, impose such other
conditions and/or restrictions on any Restricted Stock Grant awarded pursuant to this Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or
each Restricted Stock Unit, and/or restrictions under applicable laws or under the requirements of any stock exchange or market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the
Company upon vesting of such Restricted Stock or Restricted Stock Units. 
 8.5 Payment. Upon expiration of the Restriction Period and
if all conditions have been satisfied and any applicable Performance Goals attained, the Shares of Restricted Stock will be made available to the Participant or the Restricted Stock Units will be vested in the account of the Participant, free of all
restrictions; provided, that the Committee may, in its discretion, require (a) the further deferral of any Restricted Stock Grant beyond the initially specified Restriction Period; (b) that the Restricted Stock or Restricted Stock Units be
retained by the Company; and (c) that the Participant receive a cash payment in lieu of unrestricted Shares or Units. 
  

 15 

 8.6 Rights as a Shareholder. Unless otherwise determined by the Committee and set forth in a
Participant’s Award Agreement, the Participant shall have, with respect to shares of Restricted Stock, all of the rights of a shareholder of the Company, including the right to vote the shares and receive any dividends paid thereon. Any such
dividends shall be reinvested on the dividend payment date in additional Shares of Restricted Stock under the Restricted Stock Grant and shall be subject to the restrictions and other terms and conditions set forth therein. A Participant shall not
have, with respect to Restricted Stock Units, any voting or other rights of a shareholder of the Company; provided, however, that if determined by the Committee and set forth in the Participant’s Award Agreement, the Participant shall have the
right to receive Dividend Equivalents in accordance with the provisions of Article 13. 
 8.7 Section 83(b) Election. The
Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Code Section 83(b). If a Participant makes an
election pursuant to Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file promptly a copy of such election with the Company. 
 Article 9. Performance Units 
 9.1 Grant of Performance Units. Subject to the terms and
provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units to Participants in such amounts and upon such terms as the Committee shall determine. Each Performance Unit shall represent the prospective
contingent right to receive payment based upon Company and/or Subsidiary performance over a specified Performance Period. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant and need not
be equivalent to the value of a Share Equivalent. At the time of grant, the Committee, in its sole discretion, shall establish the Performance Period, Performance Measures, Performance Goals and such other terms and conditions applicable to such
Award. The number of Shares and/or the amount of cash or other consideration earned in settlement of a Performance Unit shall be determined at the end of the Performance Period. 
 9.2 Earning of Performance Units. Each Performance Unit Award Agreement shall provide that in order for a Participant to receive a payment in
settlement of the Award, the Company must achieve certain Performance Goals over a designated Performance Period, with attainment of one or more Performance Goals determined using one or more specific Performance Measures. The Performance Goals and
the Performance Period shall be established by the Committee in its sole discretion; provided, however that except upon a Change in Control and in certain limited situations (including, but not limited to, the death or disability of the
Participant), the Performance Period must have a minimum duration of one (1) year. The Committee shall establish one or more Performance Measures for each Performance Period for determining the portion of the Performance Unit Award which will
be earned or forfeited based on the extent to which the Performance Goals are achieved or exceeded. Such Performance Goals may include minimum, maximum and target levels of performance, with the size of the payment payable in settlement of the
Performance Unit Award based on the level attained. 
  

 16 

 9.3 Form of Performance Unit Award. Performance Unit Awards shall be made on such terms and
conditions not inconsistent with the Plan, and in such form or forms, as the Committee may from time to time approve. Performance Units may be awarded alone, in addition to, or independent of other Awards under the Plan. Subject to the terms of the
Plan, the Committee shall, in its discretion, determine the number of Units subject to each Performance Unit Award made to a Participant and may impose different terms and conditions on any particular Performance Unit Award made to any Participant.
The Performance Goals, Performance Period or Periods, Performance Measures and other terms and conditions applicable to any Performance Unit Award shall be set forth in the relevant Award Agreement. 
 9.4 Termination of Employment. Each Performance Unit Award Agreement shall set forth the extent to which the Participant shall have the right to
retain Performance Units following termination of the Participant’s employment with the Company and/or its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Awards of Performance Units, and may reflect distinctions based on the reasons for termination. Notwithstanding the foregoing, to the extent a Performance Unit is intended to be
Performance-Based Compensation, the termination provisions in the Award Agreement shall comply with the requirements of Code Section 162(m) (including any regulations, rulings, notices and procedures thereunder). 
 9.5 Payment of Performance Units. Subject to the terms of this Plan and the applicable Award Agreement, after the later of the date the
applicable Performance Period has ended or the date on which any other terms and conditions applicable to such Performance Unit Award have been satisfied, the holder of Performance Units shall be entitled to receive payout of the value and number of
Performance Units earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals have been achieved. Subject to Section 12.3 below, such payment shall be as
determined by the Committee and as evidenced in the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Units in the form of Shares, cash, any combination thereof, or
any other form as designated by the Committee in its sole discretion, equal to the value of the earned Performance Units at the close of the applicable Performance Period, or at such other time as specified in the Award Agreement. Any Shares paid in
settlement of such Performance Units may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form of payout of such Awards shall be set forth in the applicable Award
Agreement. 
 Article 10. Other Stock-Based Awards 
 10.1 Other Stock-Based Awards. The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms of this Plan (including, subject to the limitations below, the
grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions, as the Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of
amounts 

  

 17 

 
based on the value of Shares and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of
jurisdictions other than the United States. Notwithstanding any provision in this Plan to the contrary, Awards of unrestricted Shares shall only be made in lieu of salary and/or cash bonuses/variable compensation. 
 10.2 Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or Units, as determined by the
Committee. The Committee may, in its discretion, establish Performance Goals with respect to any Other Stock-Based Awards. If the Committee exercises its discretion to establish Performance Goals, the number and/or value of Other Stock-Based Awards
that will be paid out to the Participant will depend on the extent to which the Performance Goals are met. 
 10.3 Payment of Other
Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines. 
 10.4 Termination of Employment. The Committee shall determine the extent to which the Participant shall have the right to receive Other
Stock-Based Awards following termination of the Participant’s employment with the Company and/or its Subsidiaries. Such provisions shall be determined in the sole discretion of the Committee, such provisions shall be included in the applicable
Award Agreement, but need not be uniform among all Other Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
 Article 11. Transferability of Awards 
 No Award under the Plan, and no right or interest therein,
shall be (a) assignable, alienable or transferable by a Participant, except by will or the laws of descent and distribution, or (b) subject to any obligation, or the lien or claims of any creditor, of any Participant, or (c) subject
to any lien, encumbrance or claim of any party made in respect of or through any Participant, however arising. During the lifetime of a Participant, Options and SARs are exercisable only by, Shares issued upon the exercise of Options and SARs or in
settlement of other Awards will be issued only to, and other payments in settlement of any Award will be payable only to, the Participant or his or her legal representative. A Participant may designate a beneficiary or beneficiaries in accordance
with Article 14. Notwithstanding the foregoing, the Committee may, in its sole discretion and on and subject to such terms and conditions as it shall deem appropriate, which terms and conditions shall be set forth in the related Award Agreement:
(i) authorize a Participant to transfer all or a portion of any Nonqualified Stock Option or SAR, as the case may be, granted to such Participant; provided, that in no event shall any transfer be made to any person or persons other than such
Participant’s spouse, children or grandchildren, or a trust or partnership for the exclusive benefit of one or more such persons, which transfer must be made as a gift and without any consideration; and (ii) provide for the transferability
of a particular grant or Award pursuant to a domestic relations order. All other transfers and any retransfer by any permitted transferee are prohibited and any such purported transfer shall be null and void. Each Nonqualified Stock Option or SAR
which becomes the subject of a permitted transfer (and 

  

 18 

 
the Participant to whom it was granted by the Company) shall continue to be subject to the same terms and conditions as were in effect immediately prior to
such permitted transfer. The Participant shall remain responsible to the Company for the payment of all withholding taxes incurred as a result of any exercise of such Option or SAR. In no event shall any permitted transfer of an Option, SAR or other
grant or Award create any right in any party in respect of any Option, SAR or other grant or Award, other than the rights of the qualified transferee in respect of such Option, SAR or other Award specified in the related Award Agreement. 

Article 12. Performance Measures 
 12.1
Performance Measures. The Performance Goals upon which the payment or vesting of an Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures:

  

	 	(a)	Net earnings or net income (before or after taxes); 

  

	 	(b)	Earnings per share (basic or diluted); 

  

	 	(c)	Net sales; 

  

	 	(d)	Revenue growth; 

  

	 	(e)	Operating profit; 

  

	 	(f)	Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue); 

  

	 	(g)	Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); 

  

	 	(h)	Earnings before or after taxes, interest, depreciation, and/or amortization; 

  

	 	(i)	Gross or operating margins; 

  

	 	(j)	Productivity ratios; 

  

	 	(k)	Share price (including, but not limited to, growth measures and total shareholder return); 

  

	 	(l)	Expense targets; 

  

	 	(m)	Margins; 

  

	 	(n)	Operating efficiency; 

  

	 	(o)	Market share; 

  

	 	(p)	Working capital targets; 

  

	 	(q)	Economic value added or EVA (net operating profit after tax minus the sum of capital multiplied by the cost of capital); and 

  

	 	(r)	Objective safety measures. 

 Any Performance Measure(s)
may be used to measure the performance of the Company and/or its Subsidiary as a whole or any business unit of the Company and/or its Subsidiary or any combination thereof, as the Committee may deem appropriate, or any of the above Performance
Measures as compared to the performance of a group of comparator companies, or published or special index that the Committee, in its sole discretion, deems appropriate, or the Committee may select Share price as a Performance Measure as compared to
various stock market indices. The Committee also has the authority to provide in an Award Agreement for accelerated vesting of any Award based on the achievement of Performance Goals pursuant to the Performance Measures specified in this
Article 12. 
  

 19 

 12.2 Evaluation of Performance. The Committee may provide at the time of any such Award that any
evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs and impairments; (b) gain/loss on sale of assets; (c) litigation or claim judgments or
settlements (including insurance proceeds); (d) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results; (e) any reorganization and restructuring programs; (f) extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders
and/or other public filings for the applicable year; (g) acquisitions or divestitures; (h) foreign exchange gains and losses; and (i) the effect of any materially adverse and unforeseen market conditions beyond the control of the
Company and its Subsidiaries, Employees, officers and directors. To the extent such inclusions or exclusions affect Awards to Covered Employees that are intended to be Performance-Based Compensation, they shall be prescribed in a form that meets the
requirements of Code Section 162(m) for deductibility. 
 12.3 Adjustment of Performance-Based Compensation. Awards that are
intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines.

 12.4 Committee Discretion. In the event that the Committee determines that it is advisable to grant Awards that shall not qualify
as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance Measures other than those set forth in Section 12.1. 
 Article 13. Dividend Equivalents 
 Any Participant
selected by the Committee may be granted dividend equivalents based on the dividends declared on Shares or Share Equivalents that are subject to any Award (other than Options and SARs), to be credited as of dividend payment dates, during the period
between the date the Award is granted and the date the Award is exercised, vests, settled or expires, as determined by the Committee (“Dividend Equivalents”). Except as otherwise provided in the Plan or the applicable Award Agreement, such
Dividend Equivalents shall be converted to cash or additional Shares or Share Equivalents by such formula, at such time and subject to such limitations as may be determined by the Committee; provided, however, that in no event shall any Dividend
Equivalents become payable earlier than the date on which the underlying Award becomes vested and payable. 
  

 20 

 Article 14. Beneficiary Designation 
 Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan is to be paid in case of the
Participant’s death before receiving any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant and will be effective only when filed by the Participant in writing with the Company during
the Participant’s lifetime. In the absence of any such beneficiary designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or exercised by the Participant’s executor,
administrator, or legal representative. 
 Article 15. Rights of Participants 
 15.1 Employment. Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company and/or its
Subsidiaries, to terminate any Participant’s employment at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his employment for any specified period of time. 
 Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company and/or its Subsidiaries and,
accordingly, subject to Article 17, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company and/or its Subsidiaries.

 15.2 Participation. No individual shall have the right to be selected to receive an Award under this Plan, or, having been so
selected, to be selected to receive a future Award. 
 15.3 Rights as a Shareholder. Except as otherwise provided herein, a
Participant shall have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 
 Article 16. Change in Control 
 16.1 Change in Control of the Company. Notwithstanding any
other provision of this Plan to the contrary, the provisions of this Article 16 shall apply in the event of a Change in Control, unless otherwise determined by the Committee in connection with the grant of an Award as reflected in the applicable
Award Agreement. 
 Upon a Change in Control, except to the extent that another Award meeting the requirements of Section 16.2 (a
“Replacement Award”) is provided to the Participant to replace such Award (the “Replaced Award”), all then-outstanding Options and SARs shall immediately become fully vested and exercisable, and all other then-outstanding Awards
subject solely to the satisfaction of a service obligation by a Participant to the Company and/or its Subsidiary shall vest in full and be free of restrictions related to the vesting of such Awards. The treatment of any other Awards shall be as
determined by the Committee in connection with the grant thereof, as reflected in the applicable Award Agreement. 
  

 21 

 Except to the extent that a Replacement Award is provided to the Participant, the Committee may, in its
sole discretion, determine that any or all outstanding Awards granted under the Plan, whether or not exercisable, will be canceled and terminated and that in connection with such cancellation and termination the holder of such Award may receive for
each Share subject to such Awards a cash payment (or the delivery of shares of stock, other securities or a combination of cash, stock and securities equivalent to such cash payment) equal to the difference, if any, between the consideration
received by shareholders of the Company in respect of a Share in connection with such transaction and the purchase price per share, if any, under the Award multiplied by the number of Shares subject to such Award; provided that if such product is
zero or less or to the extent that the Award is not then exercisable, the Award will be canceled and terminated without payment therefor. 
 16.2 Replacement Awards. An Award shall meet the conditions of this Section 16.2 (and hence qualify as a Replacement Award) if: (a) it has a value at least equal to the value of the Replaced Award as determined by the
Committee in its sole discretion; (b) it relates to publicly traded equity securities of the Company or its successor in the Change in Control or another entity that is affiliated with the Company or its successor following the Change in
Control; and (c) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control). Without
limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Replaced Award if the requirements of the preceding sentence are satisfied. The determination of whether the conditions of this
Section 16.2 are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion. 
 16.3 Termination of Employment. Upon a termination of employment of a Participant occurring in connection with or during the period of two (2) years immediately after such Change in Control, other than for cause, (a) all
Replacement Awards held by the Participant shall become fully vested and (if applicable) exercisable and free of restrictions, and (b) all Options and SARs held by the Participant immediately before the termination of employment that the
Participant held as of the date of the Change in Control or that constitute Replacement Awards shall remain exercisable for not less than one (1) year following such termination or until the expiration of the stated term of such Option or SAR,
whichever period is shorter; provided, that if the applicable Award Agreement provides for a longer period of exercisability, that provision shall control. 
  

 22 

 Article 17. Amendment, Modification, Suspension, and Termination 
 17.1 Amendment, Modification, Suspension, and Termination. Subject to Section 17.2, the Board may, at any time and from time to time,
alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or in part without approval of the Company’s shareholders, unless such approval is necessary to comply with applicable laws, including the Exchange Act
and the Code, or the rules and regulations of any securities exchange on which the Shares are listed. In no event may the Board amend the Plan without the prior approval of the Company’s shareholders to (a) increase the maximum number of
Shares which may be issued pursuant to the Plan; (b) increase any limitation set forth in the Plan on the number of Shares which may be issued, or the aggregate value of Awards which may be made, in respect of any type of Award to any single
Participant during any specified period; (c) except as provided in Section 4.4, lower the Option Price of a previously granted Option or the Grant Price of a previously granted SAR, whether by repricing, replacing, or regranting through
cancellation; (d) change the class of individuals eligible to participate in the Plan; (e) reduce the minimum Option Price or the minimum SAR Grant Price as set forth in Sections 6.3 and 7.4; or (f) reduce the minimum vesting period,
Restriction Period or Performance Period requirements applicable to Awards under the Plan. 
 17.2 Awards Previously Granted.
Notwithstanding any other provision of this Plan to the contrary (other than Section 17.3), no termination, amendment, suspension, or modification of this Plan or an Award Agreement shall adversely affect in any material way any Award
previously granted under this Plan, without the written consent of the Participant holding such Award. 
 17.3 Amendment to Conform to
Law. Notwithstanding any other provision of this Plan to the contrary, the Board may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an
Award Agreement to any present or future law relating to plans of this or similar nature and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made
pursuant to this Section 17.3 to any Award granted under the Plan without further consideration or action. 
 Article 18. Withholding 

All Awards under the Plan will be made subject to any applicable withholding for taxes of any kind. The Company shall have the right to deduct from any
amount payable under the Plan, including delivery of Shares to be made under the Plan, all federal, state, city, local or foreign taxes of any kind required by law to be withheld with respect to such payment and to take such other actions as may be
necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. If Shares are used to satisfy withholding taxes, such shares shall be valued based on the Market Value thereof on the date when the withholding for
taxes is required to be made and shall be withheld only up to the minimum required tax withholding rates or such other rate that will not trigger a negative accounting impact on the Company. The Company shall have the right to require a Participant
to pay cash to satisfy withholding taxes as a condition to the payment of any amount (whether in cash or Shares) under the Plan. 
  

 23 

 Article 19. Successors 
 All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 Article 20. General Provisions

 20.1 Forfeiture Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments, and
benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such
events may include, but shall not be limited to, any Participant’s fraud resulting in the restatement of the Company’s published earnings, termination of employment for cause, termination of the Participant’s provision of services to
the Company and/or its Subsidiary, violation of material Company and/or Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is
detrimental to the business or reputation of the Company and/or its Subsidiaries. 
 20.2 Legend. The certificates for Shares may
include any legend which the Committee deems appropriate to reflect any restrictions on transfer of such Shares. 
 20.3 Gender and
Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 
 20.4 Severability. In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 20.5 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required. 
 20.6 Delivery of Title. The Company shall have no obligation to issue or deliver
evidence of title for Shares issued under this Plan prior to: 
  

	 	(a)	Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

  

	 	(b)	Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. 

  

 24 

 20.7 Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained. 
 20.8 Investment Representations. The Committee
may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

 20.9 Employees Based Outside of the United States. Notwithstanding any provision of this Plan to the contrary, in order to comply
with the laws in other countries in which the Company and/or its Subsidiaries operate or have Employees, the Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	Determine which Subsidiaries shall be covered by this Plan; 

  

	 	(b)	Determine which Employees outside the United States are eligible to participate in this Plan; 

  

	 	(c)	Modify the terms and conditions of any Award granted to Employees outside the United States to comply with applicable foreign laws; 

  

	 	(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan
terms and procedures established under this Section 20.9 by the Committee shall be attached to this Plan document as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would
violate applicable law. 
 20.10 Uncertificated Shares. To the extent that this Plan provides for issuance of certificates to reflect
the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 
 20.11 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments that the Company, and/or its
Subsidiaries may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its 

  

 25 

 
provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary,
legal representative, or any other individual. To the extent that any individual acquires a right to receive payments from the Company and/or its Subsidiaries under this Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company or a Subsidiary, as the case may be. All payments to be made hereunder shall be paid from the general funds of the Company or a Subsidiary, as the case may be and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts except as expressly set forth in this Plan. 
 20.12 No Fractional
Shares. No fractional Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional
Shares or any rights thereto shall be forfeited or otherwise eliminated. 
 20.13 Deferrals. To the extent permitted by Code
Section 409A, the Committee may, whether at the time of grant or at any time thereafter prior to payment or settlement, require a Participant to defer, or permit (subject to such conditions as the Committee may from time to time establish) a
Participant to elect to defer, receipt of all or any portion of any payment of cash or Shares that would otherwise be due to such Participant in payment or settlement of any Award under the Plan. If any such deferral is required by the Committee (or
is elected by the Participant with the permission of the Committee), the Committee shall establish rules and procedures for payment of such deferrals. The Committee may provide for the payment or crediting of interest, at such rate or rates as it
shall in its discretion deem appropriate, on such deferred amounts credited in cash and the payment or crediting of Dividend Equivalents in respect of deferred amounts credited in Share Equivalents or Restricted Stock Units. Deferred amounts may be
paid in a lump sum or in installments in the manner and to the extent permitted, and in accordance with rules and procedures established, by the Committee. This Section shall not apply to any grant of Options or SARs that are intended to be exempt
from Code Section 409A. 
 20.14 Nonexclusivity of this Plan. The adoption of this Plan shall not be construed as creating any
limitations on the power of the Board or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant or Participants. 
 20.15 No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s right or power to make adjustments,
reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company
or a Subsidiary to take any action which such entity deems to be necessary or appropriate. 
 20.16 Governing Law. The Plan and each
Award Agreement shall be governed by the laws of the State of Connecticut, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Connecticut, to resolve any and all issues that may
arise out of or relate to this Plan or any related Award Agreement. 
  

 26Asset Purchase Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
  
  
 ASSET PURCHASE AGREEMENT 
 By and Between

 LONGHORN PARTNERS PIPELINE, L.P. 
 AS SELLER 
 And 
 MAGELLAN MIDSTREAM PARTNERS, L.P. 
 AS BUYER 
 Dated as of June 18, 2009 
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1 PURCHASE AND SALE OF THE ACQUIRED ASSETS
	  	1
			
	 1.1.
	  	Transfer of Acquired Assets	  	1
			
	 1.2.
	  	Excluded Assets	  	3
			
	 1.3.
	  	Assumption of Liabilities	  	5
			
	 1.4.
	  	Excluded Liabilities	  	6
			
	 1.5.
	  	Delayed Conveyance of Certain Property	  	7
		
	 ARTICLE 2 CONSIDERATION
	  	9
			
	 2.1.
	  	Consideration	  	9
			
	 2.2.
	  	Deposit	  	9
		
	 ARTICLE 3 CLOSING AND DELIVERIES
	  	9
			
	 3.1.
	  	Closing	  	9
			
	 3.2.
	  	Seller’s Deliveries	  	9
			
	 3.3.
	  	Buyer’s Deliveries	  	11
			
	 3.4.
	  	Proceeds from Operations	  	12
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF SELLER
	  	13
			
	 4.1.
	  	Corporate Organization	  	13
			
	 4.2.
	  	Authorization and Validity	  	13
			
	 4.3.
	  	No Conflict or Violation	  	13
			
	 4.4.
	  	Consents and Approvals	  	13
			
	 4.5.
	  	Compliance with Law	  	14
			
	 4.6.
	  	Litigation	  	14
			
	 4.7.
	  	Material Contracts	  	14
			
	 4.8.
	  	Permits	  	15
			
	 4.9.
	  	Environmental Matters	  	15
			
	 4.10.
	  	[Intentionally Omitted]	  	16
			
	 4.11.
	  	Owned Real Property	  	16
			
	 4.12.
	  	Real Property Easements; Crossings	  	16
			
	 4.13.
	  	Real Property Leases and Licenses	  	16
			
	 4.14.
	  	Title to Assets	  	17
			
	 4.15.
	  	Business Records	  	17

  

 i 

					
			
	 4.16.
	  	Intellectual Property	  	17
			
	 4.17.
	  	Taxes	  	17
			
	 4.18.
	  	Assets Used in the Business	  	17
		
	 ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER
	  	18
			
	 5.1.
	  	Corporate Organization	  	18
			
	 5.2.
	  	Authorization and Validity	  	18
			
	 5.3.
	  	No Conflict or Violation	  	18
			
	 5.4.
	  	Consents, Approvals and Notifications	  	18
			
	 5.5.
	  	Financing	  	18
			
	 5.6.
	  	Adequate Assurances Regarding Assigned Contracts	  	19
		
	 ARTICLE 6 COVENANTS OF SELLER
	  	19
			
	 6.1.
	  	Conduct of Business Before the Closing Date	  	19
			
	 6.2.
	  	Obligations of Seller after Entry of Sale Order	  	20
			
	 6.3.
	  	Access to Properties and Records; Confidentiality	  	20
			
	 6.4.
	  	Rejection of Assigned Contracts	  	21
			
	 6.5.
	  	Casualty Loss	  	21
			
	 6.6.
	  	Provision of Data; Transfer of Software	  	21
			
	 6.7.
	  	Further Assurances	  	22
			
	 6.8.
	  	Seller’s Obligation to Perform	  	22
			
	 6.9.
	  	Title Insurance	  	22
		
	 ARTICLE 7 COVENANTS OF BUYER
	  	22
			
	 7.1.
	  	Actions Before Closing Date	  	22
			
	 7.2.
	  	Consents	  	23
			
	 7.3.
	  	Adequate Assurances Regarding Assigned Contracts	  	23
			
	 7.4.
	  	Cure of Defaults	  	23
			
	 7.5.
	  	Support Obligations	  	23
			
	 7.6.
	  	Availability of Business Records	  	24
			
	 7.7.
	  	Flying J Marks	  	25
			
	 7.8.
	  	Buyer Obligation to Perform; Cooperation with Seller	  	25
			
	 7.9.
	  	Further Assurances	  	26
			
	 7.10.
	  	Financing	  	26
			
	 7.11.
	  	O&M Agreement; Operational Expenses	  	28

  

 ii 

					
	 ARTICLE 8 BANKRUPTCY PROCEDURES
	  	29
			
	 8.1.
	  	Bankruptcy Actions	  	29
			
	 8.2.
	  	Bidding Procedures	  	30
		
	 ARTICLE 9 EMPLOYEE AND BENEFITS MATTERS
	  	30
			
	 9.1.
	  	No Obligation	  	30
			
	 9.2.
	  	Employee Benefit Plans	  	30
			
	 9.3.
	  	WARN Notices	  	30
			
	 9.4.
	  	No Assumption of Liability	  	30
		
	 ARTICLE 10 REGULATORY MATTERS
	  	31
			
	 10.1.
	  	Antitrust And Other Filings and Notices	  	31
			
	 10.2.
	  	Cooperation; Confidentiality Agreement	  	31
			
	 10.3.
	  	Objections or Other Challenges	  	32
		
	 ARTICLE 11 TAXES AND FEES
	  	33
			
	 11.1.
	  	Taxes Related to Purchase of Assets	  	33
			
	 11.2.
	  	Cooperation on Tax Matters	  	33
			
	 11.3.
	  	Allocation of Purchase Price and Purchase Price Allocation Forms	  	33
			
	 11.4.
	  	Prorations	  	33
			
	 11.5.
	  	Unbilled Transactional Taxes	  	36
		
	 ARTICLE 12 CONDITIONS PRECEDENT TO PERFORMANCE BY PARTIES
	  	36
			
	 12.1.
	  	Conditions Precedent to Performance by Seller and Buyer	  	36
			
	 12.2.
	  	Conditions Precedent to Performance by Seller	  	36
			
	 12.3.
	  	Conditions Precedent to the Performance by Buyer	  	37
			
	 12.4.
	  	Waiver of Condition; Frustration of Conditions	  	37
		
	 ARTICLE 13 TERMINATION AND EFFECT OF TERMINATION
	  	38
			
	 13.1.
	  	Right of Termination	  	38
			
	 13.2.
	  	Termination Without Default	  	38
			
	 13.3.
	  	Effect of Failure of Seller’s Conditions to Closing	  	39
			
	 13.4.
	  	Effect of Failure of Buyer’s Conditions to Closing	  	39
			
	 13.5.
	  	Termination on Alternative Transaction	  	40
		
	 ARTICLE 14 INDEMNIFICATION
	  	41
			
	 14.1.
	  	Right to Indemnification	  	41
			
	 14.2.
	  	Limitations and Other Indemnity Claim Matters	  	42

  

 iii 

					
			
	 14.3.
	  	Exclusive Remedy; Payment of Indemnity Claims	  	43
			
	 14.4.
	  	Indemnification Procedures	  	44
			
	 14.5.
	  	Releases of Indemnity Escrow Funds to Seller	  	46
		
	 ARTICLE 15 MISCELLANEOUS
	  	47
			
	 15.1.
	  	Successors and Assigns	  	47
			
	 15.2.
	  	Governing Law; Jurisdiction	  	47
			
	 15.3.
	  	Mutual Disclosures	  	47
			
	 15.4.
	  	Disclosure Schedules; Disclosure Schedule Supplements	  	47
			
	 15.5.
	  	Cancellation of Intercompany Accounts and Services	  	48
			
	 15.6.
	  	Warranties Exclusive	  	48
			
	 15.7.
	  	No Recourse Against Affiliates or Related Persons of Seller	  	50
			
	 15.8.
	  	Mutual Drafting	  	50
			
	 15.9.
	  	Expenses	  	50
			
	 15.10.
	  	Broker’s and Finder’s Fees	  	50
			
	 15.11.
	  	Severability	  	51
			
	 15.12.
	  	Notices	  	51
			
	 15.13.
	  	Amendments; Waivers	  	52
			
	 15.14.
	  	Public Announcements	  	52
			
	 15.15.
	  	Entire Agreement	  	53
			
	 15.16.
	  	Parties in Interest	  	53
			
	 15.17.
	  	DAMAGES	  	53
			
	 15.18.
	  	Specific Performance	  	54
			
	 15.19.
	  	Headings	  	54
			
	 15.20.
	  	Construction	  	54
			
	 15.21.
	  	Currency	  	54
			
	 15.22.
	  	Time of Essence	  	54
			
	 15.23.
	  	Counterparts	  	54
		
	 ARTICLE 16 DEFINITIONS
	  	54
			
	 16.1.
	  	Certain Terms Defined	  	54
			
	 16.2.
	  	All Terms Cross-Referenced	  	67

  

 iv 

 EXHIBITS 
  

			
	 Exhibit A-1
	  	Main Line Fill Purchase Agreement
		
	 Exhibit A-2
	  	Spur Line Fill Purchase Agreement
		
	 Exhibit B-1
	  	Form of Bill of Sale
		
	 Exhibit B-2
	  	Form of Assigned Contract/Assumed Liability Assignment and Assumption Agreement
		
	 Exhibit B-3
	  	Form of Real Property Easement Assignment and Assumption Agreement
		
	 Exhibit B-4
	  	Form of Real Property Lease Assignment and Assumption Agreement
		
	 Exhibit B-5
	  	Form of Real Property License Assignment and Assumption Agreement
		
	 Exhibit B-6
	  	Form of Deed
		
	 Exhibit B-7
	  	Form of Seller’s Secretary’s Certificate
		
	 Exhibit B-8
	  	Form of Non-Foreign Status Certificate
		
	 Exhibit B-9
	  	Form of Buyer’s Secretary’s Certificate
		
	 Exhibit B-10
	  	Form of Buyer’s Bring Down Certificate
		
	 Exhibit B-11
	  	Form of Seller’s Bring Down Certificate
		
	 Exhibit C
	  	Form of Bidding Procedures Order
		
	 Exhibit D
	  	Form of Sale Order
		
	 Exhibit E
	  	Form of Indemnity Escrow Agreement

 DISCLOSURE SCHEDULES 
  

			
	 Schedule 1.1(a)
	  	Owned Real Property
		
	 Schedule 1.1(b)
	  	Real Property Leases and Licenses
		
	 Schedule 1.1(c)
	  	Real Property Easements
		
	 Schedule 1.1(e)
	  	Customer Contracts
		
	 Schedule 1.1(f)
	  	Supplier Contracts
		
	 Schedule 1.1(g)
	  	Other Contracts
		
	 Schedule 1.1(X)
	  	Government Contracts
		
	 Schedule 1.2(o)
	  	Flying J Marks
		
	 Schedule 1.2(x)
	  	Excluded Assets
		
	 Schedule 1.3(c)
	  	Mitigation and Protective Measures
		
	 Schedule 1.4
	  	Excluded Liabilities

  

 v 

			
		
	Schedule 4.4	  	Consents and Approvals
		
	Schedule 4.5	  	Compliance with Law
		
	Schedule 4.6	  	Litigation
		
	Schedule 4.7(a)	  	Material Contracts
		
	Schedule 4.7(b)	  	Material Contract Exceptions
		
	Schedule 4.7(c)	  	Material Contract Consents
		
	Schedule 4.7(d)	  	Material Contract Termination
		
	Schedule 4.8	  	Permits; Permit Exceptions
		
	Schedule 4.9	  	Environmental Matters
		
	Schedule 4.9(b)	  	Environmental Permits
		
	Schedule 4.12(b)	  	Crossing Permits
		
	Schedule 4.14	  	Exceptions to Title to Personal Property
		
	Schedule 4.16	  	Intellectual Property Infringements
		
	Schedule 4.17	  	Contested Taxes
		
	Schedule 4.18	  	Assets Used in the Business
		
	Schedule 16.1(k)	  	Existing Encumbrances
		
	Schedule 16	  	Pipeline System Map

  

 vi 

 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of June 18, 2009, is made by and between Longhorn Partners
Pipeline, L.P., a Delaware limited partnership (“Seller”) and Magellan Midstream Partners, L.P., a Delaware limited partnership (“Buyer”). Capitalized terms used in this Agreement are defined or
cross-referenced in Article 16. 
 BACKGROUND INFORMATION 
 WHEREAS, Seller is a Subsidiary of Flying J Inc. (“Flying J”), a Utah corporation; 
 WHEREAS, on December 22, 2008 Flying J and certain of its Affiliates, including Seller, filed voluntary petitions for relief under the Bankruptcy
Code in the Bankruptcy Court; 
 WHEREAS, on the terms and subject to the conditions set forth in this Agreement, Buyer desires to purchase
from Seller, and Seller desires to sell to Buyer, the Acquired Assets, in a sale authorized by the Bankruptcy Court pursuant to, inter alia, Sections 105, 363, and 365 of the Bankruptcy Code; 
 WHEREAS, it is intended that the acquisition of the Acquired Assets would be accomplished through the sale, transfer and assignment of the Acquired
Assets by Seller to Buyer; 
 WHEREAS, Buyer also desires to assume, and Seller desires to assign and transfer to Buyer, the Assumed
Liabilities; 
 NOW, THEREFORE, in consideration of the foregoing and their respective representations, warranties, covenants and
undertakings herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer hereby agree as follows: 
 ARTICLE 1 
 PURCHASE AND SALE OF THE ACQUIRED ASSETS 
 1.1. Transfer of Acquired Assets. At the Closing, and upon the terms and conditions herein set forth, Seller shall sell, assign, transfer and
convey to Buyer, and Buyer shall acquire from Seller, all of Seller’s right, title and interest in, to and under the Acquired Assets. “Acquired Assets” means solely the following properties and assets, but in all cases
exclude the Excluded Assets: 
 (a) the real property owned by Seller and listed on Schedule 1.1(a), together with
any Improvements owned by Seller erected thereon (the “Owned Real Property”); 
 (b) all of
Seller’s rights under (i) the leases of real property (the “Real Property Leases”) and (ii) the licenses of real property and other executory agreements for the right to use, access or occupy real property (the
“Real Property Licenses”) listed on Schedule 1.1(b) (such real property in clauses (i) and (ii) collectively, the “Leased Real Property”); 
  

 1 

 (c) all of Seller’s rights under the easements, rights of way and other real
property entitlements listed on Schedule 1.1(c) (the “Real Property Easements” and the real property covered thereby, together with the Owned Real Property and the Leased Real Property, the “Real
Property”); 
 (d) all of Seller’s (i) owned equipment (including pumps, valves, launchers and
receivers, tanks, meters, communication equipment, SCADA communications and control equipment, rectifiers, other cathodic protection equipment, tools, spare parts, machinery, furniture, fixtures, and other personal property) used exclusively in the
Business, including Seller’s interest in shared systems and facilities, whether located on the Real Property, on the premises or in the possession of the Operator or in the possession of third parties (including but not limited to emergency
response trailers at fire departments and any work product with engineering or consulting firms) (the “Equipment”), (ii) rights, to the extent transferable, to the warranties and licenses received from manufacturers and
sellers of the Equipment, and (iii) interest in the Pipeline System; 
 (e) all of Seller’s rights under sales
orders, service agreements, customer contracts or other similar Contracts entered into by Seller with the customers that are listed on Schedule 1.1(e) (“Customer Contracts”); 
 (f) all of Seller’s rights under outstanding purchase orders or other similar Contracts used in the Business and entered into by
Seller with any supplier that are listed on Schedule 1.1(f) (“Supplier Contracts”); 
 (g) all
of Seller’s rights under the Contracts that are listed on Schedule 1.1(g) (the “Other Contracts” and, together with the Real Property Leases, Real Property Licenses, the Customer Contracts and the Supplier
Contracts, the “Assigned Contracts”); and, pursuant to a request from the Government, Seller shall novate to Buyer, rather than assign, those contracts listed on Schedule 1.1(X) (such novated contracts, the
“Government Contracts”); 
 (h) all (i) supplies, materials and spares that are owned by Seller
on the Closing Date and (x) located on the Real Property or on the premises or in the control of the Operator, or (y) in transit to the Real Property (the “Inventory”) and (ii) rights of Seller, to the extent
transferable, to the warranties received from suppliers with respect to such Inventory; provided that, for the avoidance of doubt, in no event shall Inventory include any line fill, including the Main Line Fill and the Spur Line Fill (with it
being understood and agreed that all line fill are Excluded Assets for purposes of this Agreement); 
 (i) any computer
software or systems located at the Real Property and owned exclusively by Seller and licenses held exclusively by Seller, to the extent transferable, in each case that pertain solely to the Business; 
  

 2 

 (j) copies of all Business Records; and 
 (k) Seller’s rights to, and goodwill represented by, the name “Longhorn Pipeline” and the domain name
“longhornpipeline.com”; provided that nothing in this Section 1.1(k) will give Buyer any rights to any name that includes a Flying J Mark. 
 1.2. Excluded Assets. Notwithstanding anything to the contrary in this Agreement, the Acquired Assets are the only rights, properties and assets transferred to Buyer under this Agreement. Without limiting the
generality of the foregoing, the Acquired Assets do not include (i) any right, title or interest of Flying J or any of its Subsidiaries (other than Seller) or any other Person, in any right, property or asset (whether or not listed or described
in this Section 1.2), (ii) without limiting the generality of clause (i), the Main Line Fill, the Spur Line Fill or any other line fill in the Pipeline System or (iii) any right, property or asset of Seller listed or described
in this Section 1.2 (all rights, properties and assets not being acquired by Buyer are herein referred to as the “Excluded Assets”): 
 (a) all of Seller’s cash and cash equivalents, marketable securities, surety accounts, deposits and other similar prepaid items,
checks in transit and un-deposited checks; 
 (b) all accounts, notes and other receivables and all prepaid expenses of Seller
or otherwise related to the operation of the Pipeline System or the Business prior to the Closing Date; 
 (c) assets and
property, including manuals, financial information, process and data, owned by the Operator or its Affiliates used in the operation, maintenance and control of the Pipeline System, including all systems and software in the Operator’s Tulsa
control center; 
 (d) forecasts, financial information or financial statements and proprietary manuals (except rights to use
manuals specific to and necessary for the operation of the Business) prepared by or used by Seller or its Affiliates to the extent not relating exclusively to the Business; 
 (e) all of Seller’s rights under Contracts that are not Assigned Contracts, including (i) that certain Amended and Restated
Membership Interest Purchase Agreement between Longhorn Pipeline Investors, LLC and Longhorn Pipeline, Inc., dated as of August 17, 2006 and (ii) all other Contracts listed on Schedule 1.2(x), and all Equipment, services, drawings,
specifications, work product and other assets delivered or to be delivered pursuant to the Contracts listed on Schedule 1.2(x); 
 (f) any property or rights retained by Exxon Pipeline Company or its Related Persons under the Contribution Agreement; 
 (g) subject to Sections 1.5 and 7.2, any Real Property Easements which are not transferable or for which Consent to a transfer is required and not obtained; 
  

 3 

 (h) all assets of any Employee Benefit Plan of Seller or any of its Related Persons;

 (i) all rights to Claims, refunds or adjustments, all other refunds, and all other adjustments with respect to
(i) Excluded Assets, (ii) any proceeding before any Government relating to the period prior to the Closing, except to the extent that any such proceeding relates to any Assumed Liability, and (iii) insurance proceeds or other
insurance recoveries (x) that relate to, or are reimbursement for, Seller’s or any of Seller’s Affiliate’s expenditures made prior to the Closing Date for which insurance proceeds are available or due to Seller or Seller’s
Affiliates, or (y) to the extent relating to Excluded Assets or Excluded Liabilities; 
 (j) every asset of Seller that
would constitute an Acquired Asset (if owned by Seller on the Closing Date) that is conveyed or otherwise disposed of during the period from the date hereof until the Closing Date either (i) in the Ordinary Course of Business of Seller,
(ii) at the direction of the Bankruptcy Court without any request to do so from Seller or its Related Persons or (iii) as otherwise permitted by the terms of this Agreement; 
 (k) all losses, loss carry forwards and rights to receive refunds, credits and loss carry forwards with respect to any and all Taxes of
Seller incurred or accrued prior to the Closing Date, including interest receivable with respect to any of the foregoing; 
 (l) all Claims of Seller or its Related Person or their Related Persons, including Claims arising out of or relating in any way to the Chapter 11 Case or any of the transactions contemplated thereby or entered into as a consequence thereof,
including any claims (as defined in Section 101(5) of the Bankruptcy Code) filed, scheduled or otherwise arising in the Chapter 11 Case; 
 (m) all shares of capital stock or other equity interests of Seller and all Affiliates of Seller; 
 (n) all rights of Seller arising under (i) this Agreement and (ii) any other agreement between Seller and Buyer entered into in connection with this Agreement; 
 (o) all rights to or goodwill represented by or pertaining to all names, marks, trade names, trademarks and service marks incorporating
the name Flying J or any other name set forth on Schedule 1.2(o) (the “Flying J Marks”) and any brand names or derivatives thereof no matter how used, whether as a corporate name, domain name or otherwise and including
the corporate design logo associated with any Flying J Mark or variant of any Flying J Mark other than the Longhorn Pipeline name; 
 (p) all rights of Flying J or it Affiliates under any Contract that has been guaranteed by Flying J or an Affiliate of Flying J or to which Flying J is a party, other than rights of Seller under an Assigned Contract; 
  

 4 

 (q) all rights under any Contract that is, at the time of Closing, secured by any
collateral owned by any of Seller’s Affiliates, Excluded Assets, or letters of credit other than an Assigned Contract; 
 (r) all Retained Books and Records; 
 (s) all of Seller’s rights to recovery of (i) cash collateral,
(ii) security deposits and (iii) collateral given to obtain letters of credit and rights to recover amounts drawn or paid on letters of credit; 
 (t) all accounts receivable and other amounts due to Seller from any Affiliate of Seller and all rights and Claims of Seller against any Affiliate of Seller; 
 (u) Flying J skid racks at Crane Station; 
 (v) the Flying J card lock fueling facility and the truck lot adjacent to such facility at the El Paso Terminal; 
 (w) all bank accounts of Seller or any of its Affiliates; 
 (x) all assets set forth on
Schedule 1.2(x); 
 (y) Seller’s rights under that certain pollution legal liability policy number PLL12436398
with American International Specialty Lines Insurance Company and that certain pollution legal liability excess policy number XEC001704202 with Indian Harbor Insurance Company (collectively, the “Pollution Policies”); and

 (z) all reserved rights of the owners of outstanding oil, gas and mineral interests and/or their lessees to explore for,
drill, extract, produce and develop said oil, gas and minerals in, on and under the lands associated with the Real Property, together with the right to use as much of the surface of said lands as is reasonably necessary to exercise such rights.

 1.3. Assumption of Liabilities. Without limiting the rights of Buyer under Article 14 for breaches of any representations or
warranties of Seller made in Article 4, at the Closing, Buyer shall assume, and Buyer shall hereafter pay, perform and discharge when due, the following liabilities and obligations of Seller and no others (collectively, the
“Assumed Liabilities”): 
 (a) all liabilities and obligations of Seller arising after the Effective
Time under the Assigned Contracts, along with Buyer Cure Cost Obligations; 
 (b) all liabilities and obligations arising
after the Effective Time under the Permits of Seller; 
 (c) all liabilities and obligations relating to or arising out of
those Mitigation Commitments set forth on the Mitigation Plan that have not been completed prior to the Effective Time, are ongoing, or are required to be implemented after the Effective Time, which liabilities and obligations, to the Knowledge of
Seller, are listed on Schedule 1.3(c); 
  

 5 

 (d) all liabilities and obligations of Seller for Transaction Taxes payable in connection
with the transactions contemplated by this Agreement; 
 (e) all liabilities and obligations of Seller arising under or
relating to any environmental, health or safety matter (including any liability or obligation arising under any Environmental Law); 
 (f) all liabilities and obligations assumed by or agreed to be performed by Buyer or any of its Affiliates pursuant to this Agreement or any Ancillary Agreement; 
 (g) all liabilities and obligations of Seller relating to or arising from the operation of the Business or the ownership of the Acquired
Assets, on and after the Effective Time; 
 (h) all liabilities and obligations of Seller to store, terminal or ship petroleum
products of third parties; and 
 (i) Buyer’s portion of prorated Taxes, fees and expenses set forth in Article
11. 
 Other than the Assumed Liabilities and the Permitted Encumbrances, the sale of the Acquired Assets shall be free and clear of any and all
Encumbrances to the extent provided by the Bankruptcy Code (including Sections 105 and 363(f) thereof) or by order of the Bankruptcy Court. 
 1.4. Excluded Liabilities. Notwithstanding anything to the contrary contained in this Agreement, the Ancillary Agreements or any other agreement or instrument, other than the Assumed Liabilities, Buyer shall not assume or be liable
with respect to any other liability or obligation of Seller and its Related Persons (such other liabilities and obligations, the “Excluded Liabilities”) and Seller and its Related Persons, as applicable, shall remain solely
responsible and liable for all Excluded Liabilities. Excluded Liabilities shall include, but not be limited to, the following liabilities and obligations (other than in each case to the extent the same are Assumed Liabilities): (a) liabilities
and obligations of Seller with respect to any note or other liability or obligation (including intercompany debt or intercompany accounts payable) owing from Seller to any of its Affiliates, (b) liabilities and obligations arising in connection
with Excluded Assets, (c) liabilities and obligations of Seller resulting from the Valero Litigation, the Tanner Litigation and the Kinder Morgan Litigation, (d) liabilities and obligations that Seller has agreed to pay or perform pursuant
to this Agreement, (e) liabilities and obligations of Seller in respect of indebtedness for borrowed money (including liabilities and obligations pursuant to the Pollution Policies Financing Agreement), (f) all Taxes, including penalties
and interest thereon related to or imposed upon the Business, the Acquired Assets or the Excluded Assets prior to the Effective Date, including Seller’s portion of any prorated Taxes, fees and expenses in accordance with Article 11,
(g) liabilities of Seller for deferred revenue, (h) all accounts payable and accrued liabilities arising prior to the Closing Date, (i) the Seller Cure Cost Obligations, (j) all deficiency 

  

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payments (the “KM Pre-Effective Time Deficiency Obligations”) due to Kinder Morgan pursuant to the Connection Agreement with respect
to periods or partial periods ending prior to the Effective Time (assuming for purposes of this Agreement that, with respect to any partial period, the deficiency payment obligation is calculated with respect to a period that ends on the Closing
Date (e.g., by taking the volume of commodities or other product required to be delivered by Seller during the one-year period in which the Closing occurs and multiplying such volume by a fraction, the numerator of which is the number of days from
the September 1 immediately preceding the Closing Date through the day immediately preceding the Closing Date and the denominator of which is 365 and calculating the volume of commodities or other product actually delivered or credited as
delivered in accordance with the Connection Agreement during the period from the September 1 immediately preceding the Closing Date through the day immediately preceding the Closing Date and calculating the deficiency payment accordingly)),
(k) liabilities and obligations of Seller to third parties arising prior to the Effective Time from the 42-mile replacement project on the Pipeline System, and (l) those liabilities of Seller listed on Schedule 1.4. For the
avoidance of doubt, any liabilities and obligations of Seller arising from or relating to the Seller Note, the Merrill Lynch Agreements and the Seller’s debtor-in-possession financing are Excluded Liabilities. 
 1.5. Delayed Conveyance of Certain Property. 
 (a) Notwithstanding anything in this Agreement to the contrary, Seller shall not be obligated to assign, transfer, or convey (or cause to be assigned, transferred, or conveyed) to Buyer any Delayed Acquired Asset or
Delayed Assumed Liability until such time as all Legal Impediments are removed and/or all Consents necessary for the legal transfer and/or assumption thereof are obtained or delivered in respect of such Delayed Acquired Asset or Delayed Assumed
Liability, as applicable; provided that, for all purposes of this Section 1.5, if the Bankruptcy Code (including Section 365 thereof) permits the assignment, transfer or conveyance without any other removal of any Legal
Impediment or the obtaining or delivering of any such Consent, then the Parties shall take whatever action is reasonably necessary under the Bankruptcy Code to cause the assignment, transfer and conveyance of such Delayed Acquired Asset or Delayed
Assumed Liability as of the Closing Date without such separate removal of any such Legal Impediment or such separate obtaining or delivery of any such Consent and such asset or liability, as the case may be, shall be transferred on the Closing Date
and without regard to the other provisions of this Section 1.5. Following such assignment, transfer, and conveyance of any Delayed Acquired Asset, or the assumption of any Delayed Assumed Liability, the applicable Delayed Acquired Asset
or Delayed Assumed Liability shall be treated for all purposes of this Agreement as an “Acquired Asset” or as an “Assumed Liability,” as the case may be, and shall no longer be a “Delayed Acquired Asset” or a
“Delayed Assumed Liability”. For all purposes hereof, unless otherwise waived in writing by Seller or transferred, assigned or conveyed as provided in this Section 1.5(a), “Acquired Assets” shall not include any
Delayed Acquired Asset and “Assumed Liabilities” shall not include any “Delayed Assumed Liability” until the Legal Impediments are removed and/or all Consents necessary for the legal transfer and/or assumption thereof are
obtained or delivered in respect of such Delayed Acquired Asset or Delayed Assumed Liability. 
  

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 (b) To the extent permitted by Law and to the extent otherwise permissible in light of
any Legal Impediment or required Consent, if the transfer, assignment or conveyance or assumption of any Delayed Acquired Asset or any Delayed Assumed Liability intended to be transferred, assigned or assumed hereunder is not consummated on the
Closing Date, then Seller shall thereafter hold such Delayed Acquired Asset or such Delayed Assumed Liability for the use and benefit, to the extent it may lawfully do so, of Buyer (at the expense of Buyer). In addition, to the extent permitted by
law and to the extent otherwise permissible in light of any Legal Impediment or required Consent, Seller shall take such other actions in order to place Buyer, to the extent it may lawfully do so, in the same position as if such Delayed Acquired
Asset or such Delayed Assumed Liability had been transferred, assigned or conveyed or assumed as contemplated hereby and so that all the benefits and burdens relating to such Delayed Acquired Asset or such Delayed Assumed Liability, including
possession, use, risk of loss, potential for gain, and dominion, control and command over such asset, are to inure from, and after the Closing Date to Buyer. To the extent permitted by law and to the extent otherwise permissible in light of any
Legal Impediment or required Consent, Buyer shall be entitled to, and shall be responsible for, the management and the benefits and burdens of any Delayed Acquired Asset or any Delayed Assumed Liability not yet transferred to or assumed by it as a
result of this Section 1.5, and, subject to the other provisions of this Agreement, the parties hereto agree to use reasonable best efforts to cooperate and coordinate with respect to obtaining any Consent or removing any Legal
Impediment, including by providing any financial information and pro forma financial information of the relevant party and its Affiliates reasonably required by the party from whom a Consent is sought to be obtained or from whom a Legal Impediment
is sought to be removed. Each of the parties hereto agrees that, until a Delayed Assumed Liability is assumed by Buyer, Buyer shall indemnify and hold harmless Seller from such Delayed Assumed Liability. Nothing herein shall require Seller to expend
any money or commence any litigation to obtain the removal of any Legal Impediment or obtain any required Consent. 
 (c) If
and when the Legal Impediments and the Consents, the failure to remove or the absence of which caused the deferral of the transfer or assumption of any Delayed Acquired Asset or Delayed Assumed Liability, are removed or obtained, as the case may be,
the transfer and assumption of the applicable Delayed Acquired Asset or Delayed Assumed Liability shall be promptly effected in accordance with the terms of this Agreement and/or any other applicable Ancillary Agreements, without the payment of
additional consideration. 
 (d) In connection with Seller’s retention of a Delayed Acquired Asset or Delayed Assumed
Liability due to the deferral of the transfer or assumption of such Delayed Acquired Asset or Delayed Assumed Liability pursuant to this Section 1.5, Seller shall not be obligated to expend any money, unless the necessary funds are
advanced by Buyer. 
  

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 ARTICLE 2 
 CONSIDERATION 
 2.1. Consideration. The aggregate consideration for the sale and transfer of
the Acquired Assets is (i) the Purchase Price, which is payable and deliverable at the Closing in accordance with Section 3.3 plus (ii) the assumption by Buyer at the Closing of the Assumed Liabilities. 
 2.2. Deposit. On or prior to 12:00 p.m. central daylight time on the first calendar day after the date hereof (i.e., June 19, 2009), Buyer
and Flying J shall execute and deliver the Purchase Notice and Buyer shall deposit with the Escrow Agent $12,500,000.00 (the “Deposit”). The Deposit shall be held and disbursed pursuant to the terms of the Master Escrow
Agreement, the Purchase Notice and this Agreement. 
 ARTICLE 3 
 CLOSING AND DELIVERIES 
 3.1. Closing. The sale,
transfer, assignment and delivery by Seller of the Acquired Assets to Buyer and the assumption by Buyer of the Assumed Liabilities (the “Closing”), will take place at the offices of Kirkland & Ellis LLP, 153 East 53
rd Street, New York, New York at 10:00 a.m. eastern prevailing time on the second
Business Day following the satisfaction or waiver by the appropriate party of all the conditions contained in Article 12 (other than conditions which by their terms or their nature are to be performed or measured as of the Closing Date), or
on such other date or at such other place and time as may be agreed to by the Parties (the “Closing Date”). The Closing will be deemed to be effective at the Effective Time. 
 3.2. Seller’s Deliveries. 
 (a) At the Closing, Seller shall, or shall cause one of its Affiliates to, deliver the following documents consistent with the terms of this Agreement: 
 (i) the Main Line Fill Purchase Agreement, duly executed by an Affiliate of Seller and in the form of Exhibit A-1 hereto;

 (ii) the Spur Line Fill Purchase Agreement, duly executed by an Affiliate of Seller and in the form of Exhibit A-2
hereto; 
 (iii) a bill of sale with respect to the Acquired Assets (other than the Assigned Contracts, Real Property and
assets set forth in Section 1.1(d)(ii)), duly executed by Seller and in the form of Exhibit B-1 hereto; 
 (iv) an assignment and assumption agreement with respect to the Assigned Contracts (other than the Real Property Leases and the Real Property Licenses) and Assumed Liabilities, duly executed by Seller and in the form of Exhibit B-2
hereto; 
  

 9 

 (v) a copy of the Business Records in Seller’s possession or control (it being
understood that any Business Records located at the 3411 Richmond Avenue, Houston, Texas location (the “Houston Office Site”) need not be physically delivered, but will be deemed delivered at the Closing), provided
that, for any Business Records not located at the Houston Office Site, Seller may deliver such Business Records to Buyer promptly after the Closing Date, but in no event later than one hundred twenty (120) days after the Closing Date;

 (vi) one or more assignment and assumption agreements with regard to the Real Property Easements, duly executed by Seller
and in the form of Exhibit B-3 hereto, as modified as necessary to meet the filing requirements for each recording jurisdiction; 
 (vii) an assignment and assumption agreement with regard to the Real Property Leases, duly executed by Seller and in the form of Exhibit B-4 hereto, as modified as necessary to meet the filing requirements for
each recording jurisdiction; 
 (viii) an assignment and assumption agreement with regard to the Real Property Licenses duly
executed by Seller and in the form of Exhibit B-5 hereto, as modified as necessary to meet the filing requirements for each recording jurisdiction; 
 (ix) one or more special warranty deeds with regard to each parcel of the Owned Real Property, duly executed by Seller and in the form of Exhibit B-6 hereto, as modified as necessary to meet the filing
requirements for each recording jurisdiction; 
 (x) a secretary’s certificate certifying as to the resolutions of the
general partner of Seller approving and authorizing this Agreement and the transactions contemplated by this Agreement and in the form of Exhibit B-7 hereto; 
 (xi) certificates of title, assignments of contracts and other instruments of transfer, conveyance and assignment as and to the extent
agreed by Buyer and Seller to be necessary to evidence the transfer, conveyance and assignment of Seller’s right, title and interest in and to the Acquired Assets to Buyer (collectively, the “Additional Asset Conveyance
Documents”); 
 (xii) such assignments of contracts and other instruments of assumption as and to the extent
necessary to evidence the valid and effective assumption by Buyer of the Assumed Liabilities (collectively, the “Additional Liabilities Assumption Documents”); 
  

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 (xiii) an affidavit of non-foreign status that complies with Section 1445 of the
Code, duly executed by Seller or Seller’s Affiliate, as applicable, and in the form of Exhibit B-8 hereto; and 
 (xiv) the Indemnity Escrow Agreement. 
 (b) Notwithstanding anything in this Agreement or any Ancillary Agreement to
the contrary, Seller’s obligation to convey to Buyer all rights of Seller under the Permits or Crossing Permits consist of providing: (i) if required by Law, notices of intent to transfer the Permit to Buyer in accordance with the
Government regulations governing such Permit transfer, and (ii) information as required by the Government regulations governing such Permit transfer. Furthermore, in no event shall Seller, any of its Related Persons or their Related Persons be
required to deliver any Additional Asset Conveyance Document or Additional Liabilities Assumption Document that (i) requires Seller, any of its Related Persons or their Related Persons to make any additional representations, warranties or
covenants, express or implied, not contained in this Agreement or (ii) otherwise expands the liabilities or obligations of Seller, any of its Related Persons or their Related Person related to the transactions contemplated hereby. 

3.3. Buyer’s Deliveries. 
 (a) At Closing, the Escrow Agent shall cause $10,000,000 of the Deposit (the “Initial Indemnity Escrow Fund”) to be transferred to the escrow account established pursuant to the Indemnity
Escrow Agreement (the “Indemnity Escrow Account”) and Buyer and Seller shall take all action required to cause such delivery of such portion of the Deposit to the Indemnity Escrow Account on the Closing Date and the Indemnity
Escrow Funds shall become and shall continue to be held by the Escrow Agent and released in accordance with the provisions of Article 14 of this Agreement and the Indemnity Escrow Agreement; 
 (b) At Closing, (i) the Escrow Agent shall pay to Seller the excess of the Deposit minus the Initial Indemnity Escrow Fund in
accordance with the terms of the Master Escrow Agreement and the Purchase Notice, by wire transfer of immediately available funds to a bank account designated by Seller in writing (the “Seller’s Account”) and each of
Buyer and Seller shall take all action required to cause such delivery of such portion of the Deposit to Seller on the Closing Date to occur and (ii) subject only to adjustment in accordance with Section 11.4, Buyer shall pay to
Seller an amount equal to (x) the Purchase Price, minus (y) the Deposit, minus (z) the Deferred Fee Amount by wire transfer of immediately available funds to the Seller’s Account; provided that Seller shall
have the right, but not the obligation, to pay, or cause to be paid, to any secured creditor any portion of the amount payable to Seller pursuant to this Section 3.3(b) and Seller shall comply with any orders of the Bankruptcy Court
regarding the payment and/or allocation of such amount or other amounts payable hereunder or under the Ancillary Agreements; 
 (c) At or prior to Closing, Buyer shall deliver the following documents consistent with the terms of this Agreement 
  

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 (i) the Main Line Fill Purchase Agreement, duly executed by Buyer and in the form of
Exhibit A-1 hereto; 
 (ii) the Spur Line Fill Purchase Agreement, duly executed by Buyer and in the form of Exhibit
A-2 hereto; 
 (iii) an assignment and assumption agreement, duly executed by Buyer, in the form of Exhibit B-2
hereto; 
 (iv) one or more assignment and assumption agreements with regard to the Real Property Easements, duly executed by
Buyer and in the form of Exhibit B-3 hereto, as modified as necessary to meet the filing requirements for each recording jurisdiction; 
 (v) an assignment and assumption agreement with regard to the Real Property Leases, duly executed by Buyer and in the form of Exhibit B-4 hereto, as modified as necessary to meet the filing requirements for
each recording jurisdiction; 
 (vi) an assignment and assumption agreement with regard to the Real Property Licenses duly
executed by Buyer and in the form of Exhibit B-5 hereto, as modified as necessary to meet the filing requirements for each recording jurisdiction; 
 (vii) a secretary’s certificate certifying as to the resolutions of Buyer approving and authorizing this Agreement and the transactions contemplated by this Agreement and in the form of Exhibit B-9 hereto;

 (viii) each of the Additional Asset Conveyance Documents and Additional Liabilities Assumption Documents; and 

(ix) the Indemnity Escrow Agreement. 
 3.4. Proceeds from Operations. All proceeds attributable to the operation, ownership, use or maintenance of, or otherwise relating to, the Business prior to the Closing Date shall be the property of Seller and
to the extent received by Buyer or its Affiliates, Buyer shall promptly and fully disclose, account for and transmit same to Seller. All other proceeds attributable to the operation, ownership, use, or maintenance of, or otherwise relating to, the
Business on and after the Closing Date shall be the property of Buyer and to the extent received by Seller or its Affiliates, Seller shall promptly and fully disclose, account for and transmit same to Buyer. For the avoidance of doubt, all proceeds
collected or paid in respect of an Excluded Asset (including cash paid in respect of receivables or Inventory of Seller or relating to the operation, ownership, use or maintenance of the Business prior to the Closing Date) shall be the property of,
and for the benefit of, Seller. 
  

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 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Seller hereby represents and warrants to Buyer on the date
hereof as follows, except in all cases as disclosed in the Disclosure Schedules: 
 4.1. Corporate Organization. Seller is duly
organized and validly existing under the Laws of the State of Delaware and is duly qualified or licensed to do business in each jurisdiction in which the nature of its business or the ownership or leasing of its properties or operation of its assets
makes such qualification or licensing necessary, except where the failure to be so qualified would not have a Material Adverse Effect. Subject to any necessary authority from the Bankruptcy Court, Seller has all requisite limited partnership power
and authority to own its properties and assets and to conduct its business as now conducted. 
 4.2. Authorization and Validity.
Subject to the Bankruptcy Court’s entry of the Sale Order and the receipt of the Consents set forth on Schedule 4.4, Seller has all requisite limited partnership power and authority to enter into this Agreement and the Ancillary
Agreements to which it is or will be a party and to carry out its obligations hereunder and thereunder. Subject to the Bankruptcy Court’s entry of the Sale Order, the execution and delivery of this Agreement and the Ancillary Agreements and the
performance by Seller of its obligations hereunder and thereunder have been duly authorized by all necessary action by the general partner of Seller, and no other organizational proceedings on the part of Seller are necessary to authorize such
execution, delivery and performance. This Agreement has been, and the Ancillary Agreements when delivered will be, duly executed by Seller and, subject to the Bankruptcy Court’s entry of the Sale Order, constitute or will constitute its valid
and binding obligation, enforceable against it in accordance with the terms herein and therein, except that such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar
laws affecting or relating to the enforcement of creditors’ rights generally, and is subject to general principles of equity. 
 4.3.
No Conflict or Violation. Subject to the receipt of all Consents set forth on Schedule 4.4 and the receipt of the Antitrust Approvals, the execution, delivery and performance by Seller of this Agreement and the Ancillary
Agreements do not and will not (a) violate or conflict with any provision of the limited partnership agreement (or equivalent organizational documents such as a certificate of incorporation or by-laws) (collectively, the
“Organizational Documents”) of Seller, (b) subject to the Bankruptcy Court’s entry of the Sale Order, violate any provision of law, regulation, rule or other legal requirement of any Government
(“Law”) or any order, judgment or decree of any court or Government (“Order”) applicable to Seller, or (c) subject to the Bankruptcy Court’s entry of the Sale Order, violate, result in a
breach of or constitute (with due notice or lapse of time, or both) a default under any Assigned Contract, which violation, conflict, breach or default in the case of clauses (b) and (c) that would reasonably be expected to have a Material
Adverse Effect. 
 4.4. Consents and Approvals. Other than Consents relating to Real Property Easements (the only representations to
which are set forth in Section 4.12) and as may result from the Chapter 11 Case, Schedule 4.4 sets forth a true and correct list of each Consent and each declaration to, or filing or registration with, any Government that is
required in connection 

  

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with the execution and delivery of this Agreement and the Ancillary Agreements by Seller or the performance by Seller of its obligations hereunder or
thereunder, the failure of which to obtain would reasonably be expected to have a Material Adverse Effect. 
 4.5. Compliance with
Law. Except as would not reasonably be expected to result in a material liability of the Business after the Closing or materially impair the operation of the Business after the Closing or as otherwise set forth on Schedule 4.5 or
Schedule 4.6, (a) Seller is in compliance in all material respects with all Laws, (b) Seller has not received written notice of, nor to Seller’s Knowledge has Seller been under investigation for, any material violation of any
Law, including Seller’s obligations to provide accurate information in its quarterly FERC Form 6 filings (other than with respect to Environmental Law, as to which the only representations and warranties made by Seller are those contained in
Section 4.9), and (c) Seller is not in material default with respect to any Order, in all cases as applicable to the Acquired Assets, the Business or operation of the Pipeline System. 
 4.6. Litigation. As of the date of this Agreement and except (x) as a result of the Chapter 11 Case, (y) Claims made or to be made
against Seller or any of its Related Persons in the Chapter 11 Case, or (z) as otherwise set forth on Schedules 4.6 or 4.9, there are no Claims, suits or proceedings pending or, to the Knowledge of Seller, threatened, before
any Government, brought by or against Seller, related to the Business or the Acquired Assets. 
 4.7. Material Contracts.

 (a) Schedule 4.7(a) sets forth a complete and correct list of each of the Assigned Contracts that: 
 (i) relates to the maintenance, operation, refurbishment or expansion of the Pipeline System or the acquisition of goods, the construction
of assets, the purchase, sale or lease of equipment or other personal property, or the provision of any services, which requires any future payment in excess of $250,000 in the aggregate during any 12 month period; or 
 (ii) the consequences of a default under or termination of such Assigned Contract would reasonably be expected to result in a Material
Adverse Effect (clauses (i) and (ii) collectively, the “Material Contracts”). 
 (b) Other
than as set forth on Schedule 4.7(b)(I) or in motions, other pleadings or similar items filed with the Bankruptcy Court, neither Seller nor, to Seller’s Knowledge, any other party to any of the Material Contracts is in breach or default
under nor has commenced any action against any of the parties to such Material Contracts or given or received any written notice of any material default or violation under any Material Contract that was not withdrawn or dismissed, except only for
those defaults that will be cured in accordance with the Sale Order (or that need not be cured under the Bankruptcy Code to permit the assumption and assignment of the Assigned Contracts). To Seller’s Knowledge, each of the Material Contracts
is, or will be at the Closing, valid, binding and in full force and effect against Seller, except as otherwise set forth on Schedule 4.7(b)(II). 
  

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 (c) Except for Consents or waivers which are not required as a result of the operation of
the Bankruptcy Code or the Sale Order or as otherwise set forth on Schedule 4.7(c), no Consent or waiver under any of the Assigned Contracts (including the Real Property Leases and the Real Property Licenses) or Real Property Easements
is required to be obtained by Seller in connection with the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 
 (d) Except as may arise related to the Chapter 11 Case or as set forth on Schedule 4.7(d), none of the other parties under any of
the Material Contracts has provided Seller with any written notice that it currently plans or intends to terminate any such Contract, or otherwise cease their performance thereunder related to such Contracts or the Business. 
 4.8. Permits. Schedule 4.8(I) sets forth a complete and correct list of all material Permits and all pending applications therefor
obtained by Seller in connection with the operation of the Pipeline System, other than (a) the Environmental Permits, as to which the only representations and warranties made by Seller are those contained in Section 4.9, and
(b) the Crossing Permits, as to which the only representations and warranties made by Seller are those contained in Section 4.12(b). As of the date of this Agreement, except as would not reasonably be expected to result in a
material liability of the Business after the Closing or materially impair the operation of the Business after the Closing or as otherwise set forth on Schedule 4.8(II), each such Permit is valid and in full force and effect, and is not
subject to any pending or, to Seller’s Knowledge, threatened administrative or judicial proceeding to revoke, cancel, suspend or declare such Permit invalid in any respect. To Seller’s Knowledge, Schedule 4.8(I) sets forth all
material Permits necessary for the operation of the Pipeline System as currently conducted. 
 4.9. Environmental Matters. Except as
would not reasonably be expected to result in a material liability of the Business after the Closing or materially impair the operation of the Business after the Closing or as otherwise set forth on Schedule 4.9, to Seller’s
Knowledge, with respect to the Acquired Assets or the operation of the Pipeline System: 
 (a) Seller is in compliance with
and, since September 1, 2006, has complied with all applicable Environmental Laws. 
 (b) Seller has obtained and since
September 1, 2006 has complied with all Environmental Permits required for the operation of the Pipeline System; a list of such Environmental Permits is set forth on Schedule 4.9(b). To Seller’s Knowledge, the Permits set forth on
Schedule 4.9(b) are all of the material Environmental Permits necessary for the operation of the Pipeline System as currently conducted. 
 (c) Seller’s operation of the Pipeline System is not subject to any Order issued pursuant to Environmental Law. 
 (d) Since September 1, 2006, Seller has not received a written complaint, Order, directive, Claim, citation or notice of violation, suit or proceeding from any Government or any other Person with respect to any
violation of Environmental Laws or any release, spill, leak, discharge or emission of any Hazardous Materials. 
  

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 (e) Seller has made available to Buyer copies of all Environmental Reports that are in
the possession or within the reasonable control of Seller. 
 (f) The representations and warranties contained in this
Section 4.9 are the only representations and warranties made by Seller with respect to matters arising under Environmental Laws or relating to Hazardous Materials. 
 4.10. [Intentionally Omitted]. 
 4.11. Owned Real Property. Schedule 1.1(a)(I) sets forth a complete and correct list of all material real property owned in whole or in part (and states the ownership percentage of all partially owned real property, if
applicable) by Seller and used in connection with the operation of the Pipeline System. Seller has made available to Buyer all material existing surveys or topographical maps for the Owned Real Property and title policies in Seller’s possession
or reasonably under its control. Except as set forth on Schedule 1.1(a)(II) and subject to the Existing Encumbrances, Seller has Good and Defensible Title to all Owned Real Property free and clear of Encumbrances arising by, through or under
Seller. 
 4.12. Real Property Easements; Crossings. 
 (a) To Seller’s Knowledge, after reasonable inquiry, Schedule 1.1(c)(I) sets forth a complete and correct list of all
easements, rights of way and other real property entitlements relating to the Pipeline System. Seller has made available to Buyer a true and complete copy of each Real Property Easement in its possession or control. Except as set forth on
Schedule 1.1(c)(II), subject to the Existing Encumbrances, Seller has Good and Defensible title to the Real Property Easements. 
 (b) To Seller’s Knowledge, after reasonable inquiry, Schedule 4.12(b) sets forth a list of Permits that Seller has obtained with respect to crossings of railroads, roads, waterways and similar crossings
that the Pipeline System makes from Galena Park to El Paso, Texas and from Crane to Odessa, Texas (“Crossing Permits”). Except (i) matters known to Buyer’s Knowledge, (ii) those defaults that will be cured in
accordance with the Sale Order (or that need not be cured under the Bankruptcy Code to permit the assumption and assignment of the Assigned Contracts), or (iii) as otherwise set forth on Schedule 4.12(b), to Seller’s Knowledge, as
of the date of this Agreement, neither Seller nor, to Seller’s Knowledge, any other party to any of the Crossing Permits is in material breach or default under any such Crossing Permit or given or received any written notice of any material
default or violation under any Crossing Permit that was not withdrawn or dismissed and each such Crossing Permit is valid and in full force and effect, and is not subject to any pending or, to Seller’s Knowledge, threatened administrative or
judicial proceeding to revoke, cancel, suspend or declare such Crossing Permit invalid in any respect. 
 4.13. Real Property Leases and
Licenses. To Seller’s Knowledge, after reasonable inquiry, Schedule 1.1(b) sets forth a complete and correct list of all leases and licenses used by Seller relating to the Pipeline System. Seller has made available to Buyer a true
and complete copy of each lease or license of real property relating to the Pipeline System and in its possession 

  

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or control. Except (i) matters known to Buyer’s Knowledge, (ii) those defaults that will be cured in accordance with the Sale Order (or that
need not be cured under the Bankruptcy Code to permit the assumption and assignment of the Assigned Contracts), or (iii) as otherwise set forth on Schedule 4.12(b), to Seller’s Knowledge, as of the date of this Agreement, neither
Seller nor, to Seller’s Knowledge, any other party to any of the leases and licenses is in material breach of or default under any Leases or Licenses or given or received any written notice of any material default or violation under any lease
or license that was not withdrawn or dismissed and each such lease or license is valid and in full force and effect, and is not subject to any pending or, to Seller’s Knowledge, threatened administrative or judicial proceeding to revoke,
cancel, suspend or declare such lease or license invalid in any respect. 
 4.14. Title to Assets. Other than Existing Encumbrances or
as otherwise set forth on Schedule 4.14, Seller has title to the personal property, other than the leased property, included in the Acquired Assets. 
 4.15. Business Records. Seller has made, or will make, available to Buyer those Business Records that are in the possession or control of Seller or its Affiliates which Buyer does not already have in its
possession or control. 
 4.16. Intellectual Property. Seller owns or possesses licenses or other valid rights to use the intellectual
property used in connection with the operation of the Business as currently conducted, except to the extent such intellectual property is provided by the Operator pursuant to its obligations under the O&M Agreement or where the failure to
possess such licenses or valid rights to use would not, individually or in the aggregate, have a Material Adverse Effect. Except as set forth in Schedule 4.16, to Seller’s Knowledge, the conduct of the operations of the Business as
currently conducted does not infringe upon any intellectual property of any third party. To Seller’s Knowledge, no Person is infringing upon any intellectual property used in the conduct of the operation of the Business, except where such
infringement would not, individually or in the aggregate, have a Material Adverse Effect. 
 4.17. Taxes. Except as would not
reasonably be expected to result in a material liability to the Business after the Closing or as would result in an Encumbrance on the Acquired Assets that is not released at Closing, (a) Seller has filed in a timely manner all required
federal, state, and local Tax returns related to the Acquired Assets, and has paid (except amounts being diligently contested in good faith by appropriate Proceedings and disclosed in Section 4.17 of the Disclosure Schedule) all required
Tax or similar assessments arising from or related to the Acquired Assets, including any interest, penalties or additions attributable thereto shown as due on all such filings and (b) Taxes which Seller was required by Law to withhold or
collect in respect of the Acquired Assets have been withheld or collected and have been paid over to the proper Government or are properly held by Seller for such payment when due and payable. 
 4.18. Assets Used in the Business. Except for (a) the Excluded Assets, (b) assets provided by the Operator, (c) assets associated
with the provision of services to Seller including but not limited to tax, legal and accounting, (d) assets sold, transferred or otherwise disposed of in the Ordinary Course of Business, and (e) other assets set forth on Schedule
4.18, at the Closing, the Acquired Assets will constitute all of the material assets used in the Business as conducted as of the date of this Agreement. 
  

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 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby represents and warrants to Seller as follows,
except in all cases as disclosed in the Disclosure Schedules. 
 5.1. Corporate Organization. Buyer is a limited partnership, duly
organized, validly existing and in good standing under the Laws of the jurisdiction of its organization, and has all requisite power and authority to own its properties and assets and to conduct its business as now conducted. 
 5.2. Authorization and Validity. Buyer has all requisite power and authority to enter into this Agreement and to execute and deliver any Ancillary
Agreement to which it is or will be a party and to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and the Ancillary Agreements and the performance of Buyer’s obligations hereunder and thereunder
have been duly authorized by all necessary action by the board of directors of Buyer’s general partner, and no other proceedings on the part of Buyer are necessary to authorize such execution, delivery and performance. This Agreement has been,
and the Ancillary Agreements when delivered will be duly executed by Buyer and do and will constitute its valid and binding obligation, enforceable against it in accordance with the terms herein and therein, except that such enforceability
(a) may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting or relating to the enforcement of creditors’ rights generally and (b) is subject to general
principles of equity. 
 5.3. No Conflict or Violation. The execution, delivery and performance by Buyer of this Agreement and the
Ancillary Agreements, and the operation of the Business by Buyer as it is constituted as of the Closing Date do not and will not (a) violate or conflict with any provision of the Organizational Documents of Buyer and (b) violate any
provision of Law, or any Order applicable to Buyer, nor will they result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contract to which Buyer is a party, by which it is bound or to which any of
its properties or assets is subject. 
 5.4. Consents, Approvals and Notifications. The execution, delivery and performance by Buyer
of this Agreement and the Ancillary Agreements, and the operation of the Business by Buyer as it is constituted as of the Closing Date do not require the Consent of, or filing with or notification of, any Government or any other Person except as
required: (a) under any Antitrust Law; (b) for entry of the Sale Order by the Bankruptcy Court; or (c) for such Consents and filings, the failure to obtain or make would not reasonably be expected to have a material adverse effect on
the ability of Buyer to consummate the transactions contemplated hereby. 
 5.5. Financing. On and after the Closing Date, Buyer will
have sufficient funds available to finance and consummate the transactions contemplated by this Agreement and the Ancillary Agreements and to perform its obligations hereunder and thereunder. Without limiting the generality of the foregoing, on the
date hereof, Buyer has delivered to Seller, true and correct copies of that certain $550,000,000 Second Amended and Restated Credit Agreement dated as of 

  

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September 20, 2007 among Buyer, as Borrower, the Lenders party thereto and Wachovia Bank, N.A., as Administrative Agent, including all exhibits,
schedules, annexes and amendments to such agreement in effect as of the date of this Agreement (the “Credit Facility”), pursuant to which and subject to the terms and conditions thereof each of the lenders party thereto, have
severally agreed to provide the debt financing set forth therein on the terms and subject to the conditions specified therein. The Credit Facility has not been amended, restated or otherwise modified or waived (except as contemplated thereby) prior
to the date of this Agreement and the respective obligations contained in the Credit Facility have not been withdrawn, modified or rescinded in any respect prior to the date of this Agreement. As of the date of this Agreement, the Credit Facility is
in full force and effect and constitutes the legal, valid and binding obligation of each of the parties thereto and no consents, approvals or waivers of any lenders or other Person a party thereto needs to be obtained in order for Buyer to obtain
funds under the Credit Facility. There are no conditions precedent to the funding of any borrowings under the Credit Facility, other than as expressly set forth in the Credit Facility. The available borrowings under the Credit Facility and, if
applicable, the Supplemental Facility, together with other financial resources of Buyer (including cash on hand and marketable securities of Buyer) on the Closing Date, will, in the aggregate, be sufficient for the timely satisfaction of
Buyer’s obligations under this Agreement and the Ancillary Agreements. As of the date of this Agreement, (a) no event has occurred which would constitute a breach or default (or an event which with notice or lapse of time or both would
constitute a default), in each case, on the part of Buyer under the Credit Facility or any other party to the Credit Facility and (b) subject to the satisfaction of the conditions contained in Sections 12.1 and 12.3 hereof, Buyer
has no reason to believe that the conditions (if any) to the Financing will not be satisfied. When used herein, the “Financing” means all borrowings necessary under the Credit Facility and, if applicable, any Supplemental
Facility for Buyer to timely consummate the transactions contemplated by this Agreement and the Ancillary Agreements and to perform and pay Buyer’s obligations when required hereunder and thereunder. Buyer has fully paid all fees required to be
paid prior to the date of this Agreement pursuant to the Credit Facility. 
 5.6. Adequate Assurances Regarding Assigned Contracts.
Buyer is and, as of the Closing Date and thereafter, will be capable of satisfying the conditions contained in Sections 365(b) and 365(f) of the Bankruptcy Code with respect to the Assigned Contracts. 
 ARTICLE 6 
 COVENANTS OF SELLER 

 Seller hereby covenants to Buyer as follows: 
 6.1. Conduct of Business Before the Closing Date. Without the prior written consent of Buyer or, without any request to do so by Seller or any of its Related Person unless consented to by Buyer, the
authorization of the Bankruptcy Court after notice and a hearing, between the date hereof through the Closing Date, Seller shall not, except as required or expressly permitted pursuant to the terms hereof or of any Ancillary Agreement, make any
material change in the Acquired Assets, taken as a whole, or enter into any material transaction other than an Alternative Transaction, in each case other than in the Ordinary Course of Business. Without limiting the generality of the foregoing,
except as may be required by the 

  

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Bankruptcy Court without any request to do so from Seller or its Related Persons, from the date hereof until the Closing, Seller shall use commercially
reasonable efforts to operate the Pipeline System and conduct the Business in substantially the same manner as conducted by Seller in the Ordinary Course of Business, taking into account business exigencies arising as a result of Seller’s
financial condition, cash position and status as a filer under Chapter 11 of the Bankruptcy Code and Seller shall not enter into, amend or terminate any transportation, terminaling or interconnection agreements, or any other Material Contracts that
are part of the Acquired Assets or file any revised tariffs without Buyer’s prior written consent, such consent not to be unreasonably withheld, delayed or conditioned; provided that Seller may enter into or amend such agreements in the
Ordinary Course of Business if the term of such agreement or amendment is less than sixty days. Seller shall not be obligated to make any capital expenditures related to any expansion of the capacity of the Pipeline System. To the extent permitted
by the Bankruptcy Court, Seller shall use commercially reasonable efforts to undertake any capital expenditures for the expansion of pipeline capacity currently contemplated in Seller’s annual budget and reasonably requested by Buyer if and to
the extent that Buyer provides all funds necessary to undertake such activities, including for the procurement of equipment and third party services. 
 6.2. Obligations of Seller after Entry of Sale Order. From and after the date that the Sale Order is entered, Seller shall use reasonable best efforts to cause the Closing to occur as promptly as practicable,
and Seller shall not, and shall not permit any of its Affiliates to, intentionally take any action that is reasonably likely to prevent or delay the consummation of the transactions contemplated hereby unless otherwise required by the Bankruptcy
Court or Law. Without limiting or amending any covenant or agreement of Seller under this Agreement or any Ancillary Agreement which is not qualified by “reasonable best efforts”, when a covenant or agreement requires that Seller use its
“reasonable best efforts”, such covenant or agreement shall not require Seller or any of its Related Person to expend any money to remedy any breach of any representation or warranty hereunder, to commence any litigation or arbitration
proceeding, to offer or grant any accommodation (financial or otherwise) to any third party, to obtain any Consent required for the consummation of the transactions contemplated hereby or to provide financing to Buyer for the consummation of the
transactions contemplated hereby; provided that, if Seller or any of its Affiliates remedies such breach prior to the Closing, Seller shall not be deemed to be in breach of such representation or warranty, or in violation of any covenant, for
purposes of determining Buyer’s obligations to consummate the transactions contemplated by this Agreement. 
 6.3. Access to
Properties and Records; Confidentiality. Prior to the Closing Date, unless an Alternative Transaction is approved in accordance with the Bidding Procedures, Seller shall afford to Buyer and to the accountants, counsel and representatives of
Buyer, reasonable access during normal business hours throughout the period prior to the Closing Date (or the earlier termination of this Agreement pursuant to Article 13) to all books and records of Seller relating exclusively to the
Business for purposes of assisting in the transition of the Acquired Assets and Assumed Liabilities to the Buyer at the Closing if (a) permitted under Law, (b) such books and records are not subject to confidentiality agreements,
(c) disclosing such books and records would not adversely affect any attorney client privilege, work product or similar privilege and (d) such books and records do not relate to any confidential proprietary models or other information of
Seller or any of its Affiliates pertaining to project evaluation, price curves or 

  

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projections or other economic or other predictive models. Upon reasonable prior notice, Seller shall also afford Buyer reasonable access, during normal
business hours, to the Business, to all operations of the Business and to all Acquired Assets throughout the period prior to the Closing Date for purposes of assisting in the transition of the Acquired Assets and the Assumed Liabilities to Buyer at
the Closing. The rights of access contained in this Section 6.3 are granted subject to, and on, the following terms and conditions: (v) any such investigation shall not include physical testing or samplings and shall be exercised in
such a manner as not to interfere unreasonably with the operation of the Business; (w) during the period from the date hereof through the Closing Date, all information provided to Buyer or its agents or representatives by or on behalf of Seller
or their agents or representatives (whether pursuant to this Section 6.3 or otherwise) is governed by and subject to the Confidentiality Agreement, dated as of February 12, 2009, by and between Flying J and Buyer or an Affiliate of
Buyer (the “Confidentiality Agreement”); (x) such rights of access shall not affect or modify the conditions set forth in Article 12 in any way; (y) all such rights of access are at Buyer’s sole cost,
expense and risk; and Buyer shall indemnify Seller for any damages, suits, claims, proceedings, fines, judgments, costs or expenses (including attorneys’ fees and incidental, consequential or punitive damages) that Seller or any third party may
suffer as a result of Buyer’s exercise of its rights under this Section 6.3; and (z) Buyer shall comply with and adhere to all of Seller’s safety policies and procedures. 
 6.4. Rejection of Assigned Contracts. Seller shall not reject any Assigned Contracts pursuant to the Chapter 11 Case without the prior written
consent of Buyer. 
 6.5. Casualty Loss. Notwithstanding any provision in this Agreement to the contrary, if, before the Closing
(a) all or any portion of the Acquired Assets is condemned or taken by eminent domain, or (b) a material portion is damaged or destroyed by fire or other casualty, Seller shall notify Buyer promptly in writing of such fact. In the case of
condemnation or taking, Seller shall assign or pay, as the case may be, any proceeds thereof to Buyer at the Closing, and in the case of fire or other casualty, Seller shall either restore such damage or assign the insurance proceeds therefrom to
Buyer at Closing. If Seller chooses to assign the insurance proceeds to Buyer, Seller agrees that the Purchase Price shall be reduced by the amount of the deductible for the insurance policy paying proceeds to Seller for such loss (with Buyer being
responsible for payment of such deductible). Notwithstanding the foregoing, the provisions of this Section 6.5 do not in any way modify Buyer’s other rights under this Agreement, including any applicable right to terminate this
Agreement if any condemnation, taking, damage or other destruction resulted in a Material Adverse Effect. 
 6.6. Provision of Data;
Transfer of Software. Seller agrees to cooperate with such reasonable requests during normal business hours as Buyer may make prior to and following the Closing (which requests shall not interfere in any material respect with the
responsibilities of the Business Employees), so as to assist Buyer, at Buyer’s sole cost and expense, with the integration, from and after the Closing, of the existing operational data, software and systems relating to the Pipeline System into
Buyer’s software and systems. Notwithstanding the foregoing, the parties acknowledge and agree that Buyer is not acquiring any software or any computer or other electronic equipment transferred to Buyer as part of the Acquired Assets, unless
and only to the extent that Buyer or Seller have obtained prior to the Closing any necessary licenses or rights to use such software from and after the Closing. Seller also agrees to cooperate with such reasonable requests during normal business
hours as Buyer may make in 

  

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order to facilitate Buyer’s acquisition of such licenses or rights, at no cost to Seller, but neither Seller nor any Affiliate of Seller shall have any
obligation to assist Buyer to retain the services of any other Person, or to obtain any services provided by any such Person to support software or systems at any particular cost. 
 6.7. Further Assurances. Upon the request and at the sole expense of Buyer at any time after the Closing Date (but without additional
consideration), Seller shall execute and deliver such documents as Buyer or its counsel may reasonably request to effectuate the transactions contemplated by this Agreement. Without limiting the foregoing, if at any time on or after the Closing,
Seller or any of its Related Persons comes into possession or control of any Acquired Assets, Seller shall, subject in all respects to Section 1.5 with respect to Delayed Acquired Assets, promptly but in no event later than three
(3) Business Days after coming into possession or control, return such Acquired Assets to Buyer for no additional consideration. 
 6.8.
Seller’s Obligation to Perform. Seller shall pay, perform and discharge all Excluded Liabilities in accordance with Seller’s plan of reorganization or liquidation and as permitted by the Bankruptcy Court, as applicable, and will
indemnify and hold Buyer and each of Buyer’s Related Persons harmless as provided in Article 14 for any and all Losses suffered by Buyer or any of its Related Persons from breach of the covenants and agreements of Seller in this
Section 6.8. 
 6.9. Title Insurance. At or prior to Closing, Buyer may obtain, at its sole cost and expense, extended
coverage ALTA owner’s policies of title insurance or other title insurance policy insuring fee title in Buyer to the Owned Real Property. Seller shall cooperate with Buyer in obtaining such policies, including cooperating with Buyer, at
Buyer’s sole cost and expense, to obtain or extend an abstract for the Owned Real Property and to obtain surveys of the Owned Real Property necessary to obtain such policies. In no event shall the Closing be delayed or prevented by operation of
this Section 6.9. 
 ARTICLE 7 
 COVENANTS OF BUYER 
 Buyer hereby covenants to Seller as follows: 
 7.1. Actions Before Closing Date. Subject to the express provisions of this Agreement, Buyer shall use reasonable best efforts (a) to perform
and satisfy all conditions to each of Buyer’s and Seller’s obligations to consummate the transactions contemplated by this Agreement that are to be performed or satisfied by Buyer under this Agreement and (b) for the Closing to occur
as promptly as practicable and Buyer shall not, and shall not permit any of its Affiliates to, intentionally take any action that is reasonably likely to prevent or delay the consummation of the transactions contemplated hereby. Without limiting or
amending any covenant or agreement of Buyer under this Agreement or any Ancillary Agreement which is not qualified by “reasonable best efforts”, when a covenant or agreement requires that Buyer use its “reasonable best efforts”,
such covenant or agreement shall not require Buyer or any of its Related Persons to expend any money to remedy any breach of any representation or warranty hereunder (other than the representations or warranties set forth in Section 5.5
and Section 5.6), to commence any litigation or arbitration proceeding, to offer or grant any accommodation 

  

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(financial or otherwise) to any third party, to obtain any Consent required for the transactions contemplated hereby or to sell or agree to sell any of the
Acquired Assets or any assets owned by Buyer or any of its Affiliates. 
 7.2. Consents. Buyer acknowledges that certain Consents to
the transactions contemplated by this Agreement may be required from parties to Assigned Contracts to which Seller and/or its Affiliates are party and that such Consents have not been obtained and may not be obtained. Buyer agrees that neither
Seller nor any of Seller’s Related Persons shall have any liability whatsoever to Buyer (and Buyer shall not be entitled to assert any claims) arising out of or relating to the failure to obtain any Consents that may have been, or may be,
required in connection with the transactions contemplated by this Agreement, or because of the default, acceleration or termination of or loss of right under any such contract, lease, license or other agreement as a result of such failure. Buyer
further agrees that no representation, warranty or covenant of Seller contained herein shall be breached or deemed breached and no condition of Buyer shall be deemed not to be satisfied as a result of the failure to obtain any Consent, as a result
of any default, acceleration or termination or loss of right resulting from such failure, or as a result of any lawsuit, action, claim, proceeding or investigation commenced or threatened by or on behalf of any Person arising out of or relating to
the failure to obtain any Consent or any default, acceleration or termination or loss of right resulting from such failure. Subject to the foregoing, at Buyer’s written request prior to the Closing, if such Consent is required notwithstanding
the provisions of Section 365 of the Bankruptcy Code, Seller shall cooperate with Buyer in any reasonable manner in connection with Buyer’s obtaining any such Consents; provided that such cooperation shall not include any
requirement of Seller or any of its Affiliates to expend money, commence any litigation or arbitration proceeding or offer or grant any accommodation (financial or otherwise) to any third party. 
 7.3. Adequate Assurances Regarding Assigned Contracts. With respect to each Assigned Contract, to the extent required by the Bankruptcy Court,
Buyer shall provide the Bankruptcy Court, Seller or the counterparty to any such Contract, as the case may be, adequate assurance of the future performance of such Assigned Contract by Buyer. 
 7.4. Cure of Defaults. Except as provided below, Buyer shall, on or prior to the Closing, cure (or, to the extent permitted by the Bankruptcy
Code, segregate funds sufficient to cure) any and all defaults under the Assigned Contracts that are required to be cured under the Bankruptcy Code, so that such Contracts may be assumed by Seller and assigned to Buyer in accordance with the
provisions of Section 365 of the Bankruptcy Code. Notwithstanding the forgoing, Buyer shall not be obligated to pay more than the Buyer Cure Cost Obligations to cure any such defaults. On the Closing Date, Seller shall pay or, to the extent
permitted by the Sale Order, segregate funds sufficient to pay, the Seller Cure Cost Obligations. 
 7.5. Support Obligations.

 (a) Buyer recognizes that Seller may have provided credit support with respect to the Acquired Assets (collectively, the
“Support Obligations”). As promptly as practicable after the Sale Order is entered by the Bankruptcy Court, Buyer shall use reasonable efforts to effect the full and unconditional release of Seller from any and all Support
Obligations identified by Seller to Buyer by: 
 (i) furnishing letters of credit containing terms and conditions that are
substantially identical to the terms and conditions of existing letters of credit and from lending institutions that are either investment grade institutions or have a credit rating commensurate with or better than that of lending institutions for
existing letters of credit; 
  

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 (ii) instituting escrow arrangements with terms equal to, or more favorable to the
counterparty than, the terms of existing escrow arrangements; 
 (iii) posting surety or performance bonds issued by an
institution having a credit rating at least equal to those of the issuer of existing surety or performance bonds, and which replacement surety or performance bonds contain terms and conditions that are substantially identical to the terms and
conditions of existing surety or performance bonds; and 
 (iv) providing substitute guaranties. 
 (b) Buyer and Seller shall use reasonable efforts to cause the beneficiary or beneficiaries of the Support Obligations to terminate and
redeliver to Seller, prior to the Closing, each original copy of each original guaranty, letter of credit or other instrument constituting or evidencing such Support Obligations, to redeliver to Seller any cash collateral in respect of the Support
Obligations and, as to any Support Obligations terminated after the Closing, promptly to redeliver such originals or cash to Seller, and in each case, to take such other actions as may be required to terminate such Support Obligations. 

(c) If Buyer is not successful in obtaining the complete and unconditional release of Seller from the Support Obligations prior to the
Closing, then Buyer shall indemnify, defend and hold harmless Seller from and against any and all costs, expenses, reimbursements or performance incurred by Seller in connection with the Support Obligations. Buyer shall, for so long as any Support
Obligation remains outstanding, not effect any amendments or modifications or any other changes to the agreements, guaranties or letters of credit to which any of such Support Obligations relate, or otherwise take any action that would effect any
change to such agreements, guaranties or letters of credit without Seller’s prior written consent. Notwithstanding anything in this Agreement to the contrary, prior to Closing, Buyer shall have the right to contact and have discussions with
each beneficiary of a Support Obligation in order to satisfy its obligations under this Section 7.5; provided that (i) Buyer shall give Seller prior notice before making any such contact and (ii) Seller shall have the
right to have one of its representatives present on the telephone line or in person, as applicable, during any such contact or discussion. 
 7.6. Availability of Business Records. After the Closing Date, Buyer shall provide to Seller and its Related Persons (after reasonable notice and during normal business hours and without charge to Seller) access to all Business
Records for periods prior to the Closing and shall preserve such Business Records until the later of (a) six (6) years after the Closing Date and (b) the required retention period for all Government contact information, records or
documents. 

  

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Such access includes access to any information in electronic form to the extent reasonably available. Buyer acknowledges that Seller has the right to retain
originals or copies of Business Records for periods prior to the Closing. Prior to destroying any Business Records for periods prior to the Closing, Buyer shall notify Seller thirty (30) days in advance of any such proposed destruction of its
intent to destroy such Business Records, and Buyer will permit Seller to retain such Business Records. With respect to any litigation and claims that are Excluded Liabilities, Buyer shall, at Seller’s expense, render all reasonable assistance
that Seller may request in defending such litigation or claim and shall make available to Seller personnel most knowledgeable about the matter in question. If, after the Closing, Buyer (or any Affiliate or creditor of Buyer) receives any payment or
revenue that belongs to Seller pursuant to this Agreement, Buyer shall promptly remit or cause to be remitted the same to Seller without set-off or deduction of any kind or nature. 
 7.7. Flying J Marks. Buyer agrees that, within thirty (30) days after the Closing Date, Buyer shall (a) remove, obliterate, cover or
replace, as appropriate, all signs, billboards, containers, drums, advertisements or other media containing any service marks, trade names, trade dress or other indicia of origin of Flying J or any of Seller’s Affiliates (other than Longhorn)
and (b) return to Seller or, at Seller’s option, destroy (and certify such destruction to Seller) all items and materials, including stationery, letterhead and purchase orders, located on any of the Acquired Assets containing the above
described marks. In addition, Buyer agrees that, within thirty (30) days after the Closing Date, Buyer shall replace all signs located along the Pipeline System, including at river crossings, that identify Flying J or any affiliate of Flying J
(other than Seller) as the operator of the Pipeline System. 
 7.8. Buyer Obligation to Perform; Cooperation with Seller. 

(a) Buyer shall pay, perform and discharge all Assumed Liabilities when due or required and will indemnify and hold Seller and each of
Seller’s Related Persons harmless as provided in Article 14 for any and all Losses suffered by Seller or any of its Related Persons from breach of the covenants and agreements of Buyer in this Section 7.8(a). 
 (b) Buyer acknowledges and agrees that certain litigation, namely the Tanner Litigation, the Valero Litigation and the Kinder Morgan
Litigation, pertaining to the Business and the Pipeline System is being retained by Seller. Buyer shall, at the written request of Seller and at Seller’s cost and expense, cooperate with Seller in its pursuit, prosecution, and/or defense of any
Claim related to the Tanner Litigation, the Valero Litigation, the Kinder Morgan Litigation or other litigation that may be instituted by or against Seller or its Related Persons related to the Business, the Pipeline System or the transactions
contemplated hereby, including by making individuals available to provide testimony or information in connection therewith and to make Books and Records available for review, inspection and, as necessary, production. 
 (c) Buyer also acknowledges that there are certain issues between Seller and Longhorn Pipeline Investors, LLC (the “Seller
Note Holder”) concerning the August 17, 2006 Membership Interests Purchase Agreement between Seller and the Seller Note Holder and Claims arising thereunder. Buyer shall, at the written request of Seller or the 

  

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Seller Note Holder, cooperate with Seller and/or the Seller Note Holder with respect to obtaining information related to such issues, including by
making individuals available to provide information in connection therewith and to make relevant Business Records available for review, inspection and, as necessary, production; provided that Buyer shall have no obligation under this
Section 7.8(c) unless the party for whom such information is being made available has agreed in a writing addressed to Buyer to reimburse Buyer for its out-of-pocket costs and expenses related to its obligations under this
Section 7.8(c); provided further that Seller’s execution and delivery of this Agreement shall constitute such written agreement by Seller. 
 7.9. Further Assurances. Upon the request and at the sole expense of Seller at any time after the Closing Date (but without additional consideration), Buyer shall execute and deliver such documents as Seller or
its counsel may reasonably request to effectuate the transactions contemplated by this Agreement. Without limiting the foregoing, if at any time on or after the Closing Buyer or any of its Related Persons comes into possession or control of any
Excluded Assets (other than Excluded Assets that are the property of Buyer or its Affiliates as the Operator), Buyer shall promptly but in no event later than three (3) Business Days after coming into possession or control, return such Excluded
Assets to Seller for no additional consideration. 
 7.10. Financing. 
 (a) Buyer shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary, proper or advisable to
consummate and obtain the Financing on the terms and conditions described in the Credit Facility, including (i) maintaining in effect the Credit Facility and, as applicable, any Supplemental Facility without amendment after the date hereof,
(ii) negotiating, executing and delivering all documents required under the Credit Facility and, as applicable, any Supplemental Facility to borrow under the Credit Facility and, as applicable, any Supplemental Facility to receive the Financing
or otherwise required with respect to the transactions contemplated hereby and by the Ancillary Agreements, (iii) satisfying on a timely basis all conditions applicable to the Financing in the Credit Facility and, as applicable, any
Supplemental Facility that are within the control of Buyer and comply with its obligations under the Credit Facility and, as applicable, any Supplemental Facility, (iv) consummating the Financing at or prior to the Closing, (v) ensuring
sufficient availability thereunder such that, when taken together with cash on hand, at Closing and without delay for such availability, the Financing is sufficient to fulfill Buyer’s obligations under this Agreement and the Ancillary
Agreements, and (vi) enforcing its rights under the Credit Facility and, as applicable, any Supplemental Facility in the event of a breach by the financing sources that impedes or delays the Closing, including seeking specific performance of
the parties thereunder. Buyer shall use its reasonable best efforts to cause the lenders and the other Persons providing such Financing to fund on the Closing Date the Financing required to consummate the transactions contemplated by this Agreement
and the Ancillary Agreements (including, notwithstanding anything to the contrary in Section 7.1 of this Agreement, by taking enforcement action, including seeking specific performance, to cause such lenders and the other Persons
providing such Financing to fund such Financing). If any portion of the Financing becomes unavailable or Buyer becomes 

  

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aware of any event or circumstance that makes any portion of the Financing unavailable, in each case, on the terms and conditions contemplated in the Credit
Facility and, as applicable, any Supplemental Facility and such portion is reasonably required to consummate the transactions contemplated by this Agreement and the Ancillary Agreements, Buyer shall use its reasonable best efforts to arrange and
obtain alternative debt financing from the same and/or alternative financial institutions in an amount sufficient to consummate the transactions contemplated by this Agreement as promptly as practicable following the occurrence of such event;
provided that, without limiting the provisions set forth at all times on and after the date of this Agreement, Buyer shall maintain, solely for use for its obligations under this Agreement, available borrowings under its Credit Facility in an
amount not less than $250,000,000. Buyer shall give Seller prompt oral and written notice (but in any event not later than one (1) Business Day after the occurrence) of (x) any material breach by any party to the Credit Facility or, as
applicable, any Supplemental Facility, (y) any condition not likely to be satisfied or (z) any termination of the Credit Facility or, as applicable, any Supplemental Facility or any obligations to fund thereunder. 
 (b) As promptly as possible after the date hereof, but in no event later than the date (the “FCN Deadline Date”)
that is the earlier of (x) one Business Day after Buyer or any of its Subsidiaries raises debt or equity financing in an amount of not less than $100,000,000 and (y) the Bid Deadline Date (as defined in the Bid Procedures Order), Buyer
shall deliver written notice to Seller, certified by a senior executive officer on behalf of Buyer and in form and substance reasonably satisfactory to Seller, (i) representing and warranting (without qualification or limitation) to Seller for
purposes of Seller’s reliance that Buyer has cash on hand and/or available borrowings under the Credit Facility and, as applicable, any Supplemental Facility to consummate the transactions contemplated by this Agreement and the Ancillary
Agreements (including the Main Line Fill Purchase Agreement and the Spur Line Fill Purchase Agreement), (ii) covenanting and agreeing with Seller that, at all times on and after the date of such notice, Buyer shall maintain, solely for use for
its obligations under this Agreement, cash on hand and/or available borrowings under its Credit Facility and, as applicable, any Supplemental Facility in an amount not less than that needed to fulfill its obligations under this Agreement and the
Ancillary Agreements at the Closing and thereafter, (iii) to the extent applicable, making the representations, warranties, and covenants required by the definition of Supplemental Facility and (iv) agreeing for the benefit of Seller that
such representations, warranties and covenants are, respectively, representations, warranties and covenants of Buyer made in, under and pursuant to this Agreement on which Buyer may rely (a written notice meeting all of such conditions, the
“Funds Certification Notice”). Without limiting or amending any other rights or remedies to which Seller may be entitled as a result thereof or arising therefrom, in the event that a Funds Certification Notice is not
delivered by Buyer to Seller on or prior to the FCN Deadline Date, Seller or an Affiliate thereof may, in its sole discretion, as a non-exclusive remedy, by written notice to Buyer (a “Line Fill Termination Notice”), elect to
terminate the obligations of the parties under this Agreement to deliver, or cause an Affiliate to deliver, the Main Line Fill Purchase Agreement and the Spur Line Purchase Agreement at the Closing. 
  

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 (c) In the event that Seller or an Affiliate elects to deliver the Line Fill Termination
Notice, (v) effective immediately upon such delivery, automatically and without further action on the part of any Party hereto, (A) Sections 3.2(a)(i), 3.2(a)(ii), 3.3(c)(i) and 3.3(c)(ii) of this Agreement
shall be amended and restated as “Intentionally Omitted”, (B) the following shall be deleted from the definition of “Ancillary Agreements”: “, including but not limited to the Main Line Fill Purchase Agreement and the
Spur Line Fill Purchase Agreement”, and (C) the following shall be deleted from the definition of “Main Line Fill”: “and as more fully set forth in the Main Line Fill Purchase Agreement”, (w) after giving effect to
the amendments described in the immediately foregoing clause (v), the respective rights and obligations of the parties under this Agreement shall remain in full force and effect without delay, (x) Seller shall have the right at any time either
prior to or after the Closing, to, or to permit an Affiliate or third party on its behalf to, remove the Main Line Fill and the Spur Line Fill from the Pipeline System at the sole cost and expense of Buyer (whether incurred prior to or after the
Closing) and Buyer shall fully cooperate with and assist Seller and its Affiliates, as Seller or any Affiliate requests, in the removal, sale to a third party of, or any financing involving the Main Line Fill and the Spur Line Fill, (y) Seller
shall not be deemed to be in breach of any representation, warranty, covenant or agreement under this Agreement as a result of delivery of the Line Fill Termination Notice and (z) Buyer shall indemnify Seller and its Affiliates for all Losses
(without limitation by Section 15.17 of this Agreement) suffered by Seller or any of its Affiliates arising from or related to failure of Buyer to purchase the Main Line Fill and the Spur Line Fill when required pursuant to this
Agreement (determined without regard to the Line Fill Termination Notice and the amendments affected thereby). 
 (d) In no
event shall this Section 7.10 be deemed to amend or modify any representations, warranties or other covenants of Buyer under this Agreement or any of the Ancillary Agreements or be construed that receipt of the Financing is a condition
to Buyer’s obligations under this Agreement (it being understood and agreed that, for all purposes of this Agreement, failure of Buyer to deliver the Purchase Price and, unless a Linefill Termination Notice has been delivered by Seller to Buyer
prior to such time, the purchase price required under the Main Line Fill Purchase Agreement and the Spur Line Fill Purchase Agreement (whether delivered or required to be delivered by Buyer) shall be deemed a willful and intentional breach of this
Agreement, regardless of whether such failure results, in whole or in part from failure to receive third-party financing). 
 7.11.
O&M Agreement; Operational Expenses. 
 (a) By its execution and delivery hereof, Operator agrees that the monthly
management fees described in Section 7.1.1 of the O&M Agreement that were or are required to be paid by Seller or any of its Related Persons to Operator pursuant to the O&M Agreement on June 15, 2009, July 15, 2009 and
August 15, 2009 are deferred and Operator agrees that no breach or default under the O&M Agreement shall be deemed to have occurred as a result of a non-payment of such fees on any such date. Any such deferred fees shall be paid to Operator
by reduction, in accordance with Section 3.3 of this Agreement, of the amount that Buyer is required to pay at Closing; provided that if Buyer is not the winning bidder at the Auction, such deferred fees shall be paid to 

  

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Operator as a super-priority administrative claim of Seller under the Bankruptcy Code subordinate in right to payment to Seller’s debtor-in-possession
financing and all other super-priority administrative claims of Seller. Operator acknowledges and agrees that reduction of the amount Buyer is required to pay at Closing in accordance with Section 3.3 of this Agreement shall be in full
satisfaction of Operator’s rights in respect of the monthly fees so deferred. The aggregate amount of monthly fees deferred in accordance with this Section 7.11 are referred to herein as the “Deferred Fee
Amount”. 
 (b) Operator and Seller hereby acknowledge and agree that the O&M Agreement is hereby terminated,
automatically and without further action on the part of any party thereto, effective as of the Effective Time without further liability to either Operator or Seller and that the O&M Agreement is hereby amended to provide for such automatic
termination effective as of the Effective Time; provided that Seller and Operator hereby agree that, without otherwise limiting such termination of the O&M Agreement, Article 12 of the O&M Agreement (as amended and restated by the
Third Amendment to the O&M Agreement, the “O&M Surviving Provisions”) shall survive any such termination with respect to occurrences prior to the Closing Date. Unless this Agreement is terminated in accordance with
its terms, other than (i) Claims of Buyer for breach after the date hereof of any O&M Surviving Provision, (ii) Claims of Buyer for payment of the Deferred Fee Amount in accordance with Section 3.3, and (iii) O&M
Surviving Claims which Operator asserts in the Chapter 11 Case, Buyer and Operator hereby irrevocably waive any Claims that Buyer or Operator may have with respect to the O&M Agreement and Buyer and Operator agree that they shall not, and shall
cause their Related Persons not to, file or enforce any proof of claim with respect to, file any objection to any proposed rejection by Seller of, or assert any other Claim in the Chapter 11 Case or otherwise with respect to the O&M Agreement
pursuant to the Chapter 11 Case and this Section 7.11 shall be a complete defense to any such proof of claim, objection or other Claim. Buyer shall indemnify Seller and Seller’s Related Persons for any Losses of Seller or
Seller’s Related Persons arising from or relating to an assertion of a Claim by any Person arising from the termination or rejection of the O&M Agreement. 
 ARTICLE 8 
 BANKRUPTCY PROCEDURES 
 8.1. Bankruptcy Actions. From and after receipt of the Deposit, Seller shall use reasonable best efforts to obtain entry by the Bankruptcy Court
of (a) an Order substantially in the form of Exhibit C attached hereto (the “Bidding Procedures Order”) and (b) upon completion of the Auction and subject to an Alternative Transaction not being approved in
accordance with the Bidding Procedures, an Order substantially in the form of Exhibit D attached hereto (the “Sale Order”). Subject to Buyer not then being in breach of its obligations under Section 2.2 of
this Agreement, Seller shall (x) file all pleadings with the Bankruptcy Court as are necessary or appropriate to secure entry of the Bidding Procedures Order (including by filing a motion seeking entry of such Bidding Procedures Order within
five (5) Business Days after the date hereof) and, upon completion of the Auction and subject to an Alternative Transaction not being approved in accordance with the Bidding Procedures, the Sale Order, and (y) serve all parties known to
Seller to be entitled to notice of such pleadings under applicable 

  

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provisions of the Bankruptcy Code and Rules, including all parties to the Assigned Contracts and all Governmental Authorities having or asserting
jurisdiction over Seller or the Acquired Assets, and shall diligently pursue the obtaining of such orders. Buyer shall promptly take all actions as are reasonably requested by Seller to assist in obtaining the Bankruptcy Court’s entry of the
Bidding Procedures Order and, as applicable, the Sale Order or any other Order reasonably necessary in connection with the transactions contemplated hereby, including furnishing affidavits, financial information or other documents or information for
filing with the Bankruptcy Court and making Buyer’s employees and representatives available to testify before the Bankruptcy Court. Furthermore, Buyer covenants and agrees that it shall cooperate with Seller in connection with furnishing
information or documents to Seller to satisfy the requirements of adequate assurance of future performance under Section 365(f)(2)(B) of the Bankruptcy Code. 
 8.2. Bidding Procedures. The bidding procedures (the “Bidding Procedures”) to be employed with respect to this Agreement are those reflected in the Bidding Procedures Order. Buyer
acknowledges that the Bidding Procedures may be supplemented by other customary procedures not inconsistent with the matters otherwise set forth herein and the terms of this Agreement and there shall be no breach of this Agreement by Seller for
compliance with, or actions or inactions in furtherance of, the Bidding Procedures Order. 
 ARTICLE 9 
 EMPLOYEE AND BENEFITS MATTERS 
 This
Article 9 sets forth Buyer’s and Seller’s acknowledgements, covenants and undertakings with respect to certain matters related to employees of the Business. 
 9.1. No Obligation. Nothing contained in this Agreement shall obligate Buyer to offer employment to any employees of the Business. Nothing in this
Agreement is intended to create any Claim or right on the part of any employee of the Business and no such employee shall be entitled to assert any such Claim or right hereunder. 
 9.2. Employee Benefit Plans. Buyer will not adopt or assume an Employee Benefit Plan that Seller maintains, and Seller shall be solely responsible
for any liabilities which have arisen or accrued from the employment, compensation or benefits of any employee or former employee of the Business, including any Claims relating to continuation of health coverage required pursuant to
Section 4980B of the Code or Part 6 of Subtitle B of Title I of ERISA attributable to “qualifying events” and claims incurred by the Business employees or their covered dependents. 
 9.3. WARN Notices. The Seller shall bear the full and sole responsibility and liability for providing any notice to employees of the Business
which may be required pursuant to the WARN Act or any similar applicable law for any employment loss which occurs in connection with this transaction. 
 9.4. No Assumption of Liability. Not withstanding anything to the contrary provided in this Agreement, Buyer shall not assume any obligation or liability of Seller with respect to any employee of the Business,
including employment agreements, all liabilities and obligations for accrued and unpaid wages, including those accrued for holiday and vacation pay, sick pay, payroll-related Taxes and under the Seller’s bonus plan. 
  

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 ARTICLE 10 
 REGULATORY MATTERS 
 Buyer hereby covenants to Seller, and Seller hereby covenants to Buyer, as
follows: 
 10.1. Antitrust And Other Filings and Notices. Subject to the terms and conditions of this Agreement, each party shall
(a) file a Notification and Report Form pursuant to the HSR Act with respect to the transactions contemplated hereby within five (5) Business Days after the date hereof, or at such other time as agreed in writing between the parties;
(b) supply as promptly as practicable any information and documentary material that may be requested or required pursuant to any (i) Antitrust Law, including the HSR Act or (ii) any Government or Person as may be necessary to provide
notice to or obtain approval of, Buyer’s assumption of the obligations of Seller and its Affiliates under the Longhorn EA, and (c) use its reasonable best efforts to cause the expiration or termination of the applicable waiting periods
under the HSR Act or any other Antitrust Law as soon as practicable. 
 10.2. Cooperation; Confidentiality Agreement. In connection
with the efforts referenced in Section 10.1 to obtain all such requisite approvals and authorizations for the transactions contemplated by this Agreement (a) in connection with Buyer’s assumption of Seller’s and
Seller’s Affiliates’ obligations under the Longhorn EA or (b) under the HSR Act, any other Antitrust Law, or any state law, each of the parties shall (i) cooperate with each other in connection with any filing or submission and
in connection with any investigation or other inquiry, including any proceeding initiated by a Person; (ii) keep the other parties informed in all material respects of any material communication received by such party from, or given by such
party to, any Government (or other Person with regards to the Longhorn EA) and of any material communication received or given in connection with any proceeding by a Person, in each case regarding any of the transactions contemplated hereby;
(iii) permit the other party to review any material communication given to it by, and consult with each other in advance of any meeting or conference with, any Government (or other Person with regards to the Longhorn EA), including in
connection with any proceeding by a Person and (iv) attend meetings the other Party has with the Government or Person, if permitted by such Government or Person. The foregoing obligations in this Section 10.2 shall be subject to the
Confidentiality Agreement and any attorney-client, work product or other privilege, and each of the parties hereto shall coordinate and cooperate fully with the other parties hereto in exchanging such information and providing such assistance as
such other parties may reasonably request in connection with the foregoing and in seeking early termination of any applicable waiting periods under Antitrust Law. No Party shall take any action that will have the effect of delaying, impairing or
impeding the receipt of any Antitrust Approvals or any other required Consents or Orders. “Antitrust Law” means the Sherman Act, the Clayton Act, the HSR Act, the Federal Trade Commission Act, and all other Laws and Orders
that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition through merger or acquisition. “Antitrust Approval”
means any Consent of any Government required under any applicable Antitrust Law or the expiration or termination of any applicable waiting period under any applicable Antitrust Law. 
  

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 10.3. Objections or Other Challenges. If any objections are asserted with respect to the
transactions contemplated hereby under any Antitrust Law or if any suit is instituted by any Government or any Person challenging any of the transactions contemplated hereby as violative of any Antitrust Law, each Party shall use reasonable best
efforts to resolve such objections or challenges as such Government or Person may have to such transactions, including to vacate, lift, reverse or overturn any Order, whether temporary, preliminary or permanent, so as to permit consummation of the
transactions contemplated by this Agreement. Without limiting the generality of the foregoing, Buyer shall promptly take and diligently pursue any or all of the following actions to the extent necessary to eliminate any concerns on the part of, or
to satisfy any conditions imposed by, any Government with jurisdiction over the enforcement of any applicable Law, including any Antitrust Law and applicable state Law, regarding the legality of Buyer’s acquisition of the Business or any
portion thereof, the Acquired Assets or the Assumed Liabilities: (a) entering into negotiations, providing information requested by any Government or Person as promptly as possible by (X) if such response is acceptable to the requesting
Government or Person, providing information as obtained or generated that addresses individual or specific questions and prior to obtaining or generating a complete set of information that addresses all outstanding information requests;
(Y) providing a complete set of information that addresses fully the requesting Government’s or Person’s request as soon as possible after receipt of an oral or written request for such information and (Z) if appropriate,
promptly and continuously providing updated information to the requesting Government or Person as such information is generated or obtained; (b) using its reasonable best efforts to prevent the entry in a judicial or administrative proceeding
brought under any Law, including any Antitrust Law or applicable state Law, by any Government or any other Person of any permanent, temporary or preliminary injunction or other Order that would make consummation of the acquisition of the Business or
any portion thereof, the Acquired Assets or the Assumed Liabilities in accordance with the terms of this Agreement unlawful or that would prevent or delay such consummation; (c) taking promptly and diligently pursuing, in the event that an
injunction or Order has been issued as referred to in Section 10.3(b), any and all steps consistent with such Party’s obligations under this Article 10 necessary to vacate, modify or suspend such injunction or Order,
including the appeal of such injunction or Order, so as to permit such consummation as promptly as possible and (d) diligently and promptly pursuing all other actions and doing all other things necessary and proper consistent with such
Party’s obligations under this Article 10 to avoid or eliminate each and every impediment under any Law, including any Antitrust Law, that may be asserted by any Government or any other Person to the consummation of the acquisition of
the Business or any portion thereof, the Acquired Assets or the Assumed Liabilities by Buyer in accordance with the terms of this Agreement. Notwithstanding anything to the contrary in this Agreement or any of the Ancillary Agreements, in no event
shall Buyer be required to enter into or perform any agreements or submit to any Orders requiring it to sell or otherwise dispose of, or hold separate (through the establishment of a trust or otherwise), particular assets or categories of assets
(including, after the Closing, any of the Acquired Assets), or operations (including, after the Closing, the Business or any portion thereof), of Buyer or any of its Affiliates. 
  

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 ARTICLE 11 
 TAXES AND FEES 
 11.1. Taxes Related to Purchase of Assets. All state and local sales, use,
gross-receipts, transfer, excise, value-added or other similar Taxes incurred in connection with the transfer of the Acquired Assets and the assumption of the Assumed Liabilities, and all recording and filing fees that may be imposed by reason of
the sale, transfer, assignment and delivery of the Acquired Assets (collectively, “Transaction Taxes”), shall be paid by Buyer on or prior to their due date, in all cases to the extent not discharged by operation of the
Bankruptcy Code upon entry of the Sale Order. 
 11.2. Cooperation on Tax Matters. Seller and Buyer shall (and shall cause their
respective Affiliates to) cooperate fully with each other and make available or cause to be made available to each other for consultation, inspection and copying (at such other Party’s expense), in a timely fashion, such personnel, Tax data,
relevant Tax Returns or portions thereof and filings, files, books, records, documents, financial, technical and operating data, computer records and other information as may be reasonably required (a) for the preparation by such other Party of
any Tax Returns or (b) in connection with any Tax audit or proceeding including one Party (or an Affiliate thereof) to the extent such Tax audit or proceeding relates to or arises from the transactions contemplated by this Agreement.

 11.3. Allocation of Purchase Price and Purchase Price Allocation Forms. The Purchase Price, the Assumed Liabilities and other
relevant items shall be allocated among the Acquired Assets in accordance with Section 1060 of the Code. Seller shall prepare and deliver to Buyer an allocation schedule setting forth Seller’s determination of the allocation (the
“Allocation Schedule”) within sixty (60) days after the date hereof, which Allocation Schedule is subject to the reasonable approval of Buyer. The Allocation Schedule shall identify the transferor and transferee thereof
and shall be prepared in accordance with Treas. Reg. Section 1.1060-1 (or any comparable provision of state or local Tax Law) or any successor provision. The Parties agree that they will report the federal, state, local and other Tax
consequences of the purchase and sale hereunder (including in filings on IRS Form 8594) in a manner consistent with such allocation and that they will not take any position inconsistent therewith in connection with any Tax Return, refund claim,
litigation or otherwise, unless and to the extent required to do so pursuant to applicable law. Seller and Buyer shall cooperate in the filing of any forms (including Form 8594) with respect to such allocation. Notwithstanding any other provision of
this Agreement, this Section 11.3 survives any termination or expiration of this Agreement. 
 11.4. Prorations. The items
of revenue and expense set forth in this Section 11.4 shall be prorated between the Parties (the “Prorations”) as of the Effective Time, or such other time expressly provided in this Section 11.4, so that the
Closing Date is a day of income and expense for Buyer. 
 (a) Ad valorem Taxes. Seller shall be responsible to pay all
real and personal property taxes, including penalties and interest thereon, applicable to the Acquired Assets for any fiscal year prior to the fiscal year in which the Closing occurs. Buyer shall be responsible to pay all real and personal property
taxes applicable to the Acquired Assets for fiscal years subsequent to the fiscal year in which the Closing occurs. All real and 

  

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personal property Taxes applicable to the Acquired Assets for the fiscal year in which Closing occurs will be prorated between the Parties as of the
Effective Time. Seller’s allocated share of the real and personal property Taxes shall be deducted from the Purchase Price at Closing and Buyer shall assume the responsibility for payment unless the Seller has already paid such Taxes, in which
case Buyer’s allocated share of such real and personal property Taxes shall be added to the Purchase Price and paid to Seller at Closing. If the Closing occurs before the Tax rate is fixed for such fiscal year, the apportionment of real and
personal property Taxes shall be based on the most recently ascertainable Tax statement provided that the Parties shall recalculate and re-prorate the Taxes and make the necessary cash adjustments promptly upon the issuance of the actual tax
statements for the fiscal year in which Closing occurs. This Section 11.4(a) shall survive the Closing. 
 (b)
Real Property Leases and Licenses. Any rents, fees, charges and other amounts prepaid, accrued or due and payable or to become due and payable for the calendar year or other portion thereof in which the Closing occurs under the Real Property
Leases and Real Property Licenses shall be prorated as of the Effective Time between Seller and Buyer. 
 (c) Real Property
Easements. Any fees, charges and other amounts prepaid, accrued or due and payable or to become due and payable for the calendar year or other portion thereof in which the Closing occurs under the Real Property Easements shall be prorated as of
the Effective Time between Seller and Buyer. 
 (d) Permits and Crossing Permits. All amounts prepaid, accrued or due
and payable or to become due and payable for the calendar year or other portion thereof in which the Closing occurs under any Permits and Crossing Permits transferred to Buyer shall be prorated as of the Effective Time between Seller and Buyer.
Seller shall receive a credit for all deposits made by Seller under the Permits and Crossing Permits (together with any interest thereon) which are transferred to Buyer or which remain on deposit for the benefit of Buyer. 
 (e) Utilities. All utility services shall be prorated as of the Effective Time between Seller and Buyer. The Parties shall use
commercially reasonable efforts to obtain readings for all utilities as of the Effective Time. If readings cannot be obtained as of the Closing Date, the cost of such utilities shall be prorated between Seller and Buyer by estimating such cost on
the basis of the most recent bill for such service; provided, however, that after the Closing, the Parties shall re-prorate the amount for such utilities and pay any deficiency in the original proration to the other Party promptly upon
receipt of the actual bill for the relevant billing period, which obligation shall survive the Closing. 
 (f) Third-Party
Tariffs. To the extent that, prior to the Effective Time, Seller has collected tariff payments in cash from third-parties (specifically excluding Flying J, LPI and any other Affiliate of Seller) for transportation of any batch of petroleum
products in the Pipeline System (other than the spur line from Crane, Texas to Odessa, Texas) (each, a “Third-Party Batch”) and, after Closing, Buyer has obligations to 

  

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continue to transport such Third-Party Batch, such third-party tariff payments shall be prorated as of the Effective Time (for each such batch, such tariff
so collected, the “Collected Tariff Amount”) as though the Seller Percentage of such tariff collected on such Third-Party Batch is for the benefit of, and retained by, Seller and the Buyer Percentage of such tariff collected
on such Third-Party Batch is for the benefit of, and shall be paid in accordance with this Section 11.4(f) to, Buyer. Seller shall make payment to Buyer in an amount equal to the Buyer Percentage multiplied by the Collected Tariff Amount
for such Third-Party Batch and Buyer shall be solely responsible for all custody and transportation obligations of Seller with respect to each such Third-Party Batch. 
 (g) Other Adjustments and Prorations. All other items of income and expense as are customarily adjusted or prorated upon the sale
and purchase of property similar to the Acquired Assets shall be adjusted and prorated between Seller and Buyer accordingly. 
 (h) Estimated Prorations. 
 (i) On or prior to the Business Day immediately preceding the Closing Date,
Seller shall deliver to Buyer its good faith estimate of the amount due to or owing by Seller with respect to the matters referred to in this Section 11.4 (the “Estimated Proration Amount”), together with
reasonable back-up therefor; provided that, to the extent that, prior to Closing, Buyer gives written notice to Seller that it disagrees with Seller’s calculation of the Estimated Proration Amount and provides its own good faith
calculation of the Estimated Proration Amount, the “Estimated Proration Amount” shall be (a) the amount agreed in writing by Buyer and Seller prior to the Closing (without delay by reason of this Section 11.4(h) or
(b) in the absence of such agreement, the average of the Estimated Proration Amount delivered by Buyer and the Estimated Proration Amount delivered by Seller. If, after determination in accordance with the foregoing sentence, the Estimated
Proration Amount (x) is owed by Buyer to Seller, the amount required to be delivered by Buyer pursuant to Section 3.3(b) shall be increased accordingly or (y) is owed by Seller to Buyer, the amount required to be delivered by
Buyer pursuant to Section 3.3(b) shall be decreased accordingly. To the extent that, after the Closing, any amount is required to be re-prorated in accordance with this Section 11.4, to the extent such re-proration was not
taken into account in the calculation of the Estimated Proration Amount, such amount shall be paid to Buyer or Seller in accordance with this Section 11.4 promptly, but in any event within ten (10) Business Days, after determination
thereof. 
 (ii) Not less than five (5) Business Days prior to the originally scheduled date for the hearing for entry of
the Sale Order, Seller shall deliver a draft of its computation of the Estimated Proration Amount, based on information then in its possession and assuming the Closing Date is two Business Days after such hearing is scheduled (or such other date as
Buyer and Seller may agree). 
  

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 11.5. Unbilled Transactional Taxes. If a Tax assessment is levied upon Seller or its Affiliates by
an authorized Tax jurisdiction for unbilled Transaction Taxes then Buyer shall reimburse Seller for those Taxes including any interest and penalty. 
 ARTICLE 12 
 CONDITIONS PRECEDENT TO PERFORMANCE BY PARTIES 
 12.1. Conditions Precedent to Performance by Seller and Buyer. The respective obligations of Seller and Buyer to consummate the transactions
contemplated by this Agreement are subject to the satisfaction or waiver by Buyer and Seller (other than the condition contained in Section 12.1(a), the satisfaction of which cannot be waived), on or prior to the Closing Date, of the
following conditions: 
 (a) Sale Order. The Bankruptcy Court has entered the Sale Order, and no Order staying,
reversing, modifying or amending the Sale Order is in effect on the Closing Date. 
 (b) Antitrust Approvals. The
applicable waiting periods for the transactions contemplated under this Agreement under the HSR Act applicable to the transactions contemplated hereby has expired or terminated. 
 (c) No Violation of Orders. No preliminary or permanent injunction or other Order that declares this Agreement, the Master Escrow
Agreement, or the Purchase Notice invalid or unenforceable in any material respect or that prevents the consummation of the transactions contemplated hereby or thereby is in effect. 
 12.2. Conditions Precedent to Performance by Seller. The obligations of Seller to consummate the transactions contemplated by this Agreement are
subject to the satisfaction, on or before the Closing Date, of the following conditions, any one or more of which may be waived by Seller in its sole discretion: 
 (a) Representations and Warranties of Buyer. All representations and warranties made by Buyer in this Agreement shall be true and
correct in all material respects on and as of the Closing Date as if again made by Buyer on and as of such date (or, if made as of a specific date, on and as of such date), and Seller shall have received on the Closing Date a certificate in the form
attached hereto as Exhibit B-10 dated as of the Closing Date and signed by a duly authorized signatory of Buyer to that effect. 
 (b) Performance of the Obligations of Buyer. Buyer shall have performed in all material respects all obligations required under this Agreement to be performed by it on or before the Closing Date (except with
respect to the obligation to pay the Purchase Price in accordance with the terms of this Agreement, which obligation has been performed in all respects as required under this Agreement), and Seller shall have received on the Closing Date a
certificate in the form attached hereto as Exhibit B-10 dated the Closing Date and signed by a duly authorized signatory of Buyer to that effect. 
  

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 (c) Cure of Defaults. Subject to the cap contained in the definition of Buyer Cure
Cost Obligations, Buyer shall have, at or prior to the Closing, cured any and all defaults under the Assigned Contracts that are required to be cured under the Bankruptcy Code or shall have, in the discretion of Seller, made adequate provision for
payment of such cure amounts at the Closing and shall have provided all assurances of future performance required to be provided by Buyer hereunder, so that the Assigned Contracts may be assumed by Seller and assigned to Buyer in accordance with the
provisions of Section 365 of the Bankruptcy Code. 
 (d) Buyer’s Deliveries. Buyer shall have delivered to
Seller all of the items set forth in Section 3.3(c) of this Agreement. 
 12.3. Conditions Precedent to the Performance by
Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement are subject to the satisfaction, on or before the Closing Date, of the following conditions, any one or more of which may be waived by Buyer in its
sole discretion: 
 (a) Representations and Warranties of Seller. The representations and warranties made by Seller in
Article 4 of this Agreement (disregarding any Material Adverse Effect or other materiality qualifiers therein) shall be true and correct as of the Closing, in each case as though made on and as of such time (or, if made as of a specific date,
on and as of such date), except to the extent such failures to be true and correct do not individually or in the aggregate constitute a Material Adverse Effect, and Buyer has received on the Closing Date a certificate in the form attached hereto as
Exhibit B-11 dated as of the Closing Date and signed by a duly authorized signatory of Seller to that effect. 
 (b)
Performance of the Obligations of Seller. Seller shall have performed in all material respects all obligations required under this Agreement to be performed by it on or before the Closing Date, and Buyer has received on the Closing Date a
certificate in the form attached hereto as Exhibit B-11 dated as of the Closing Date and signed by a duly authorized signatory of Seller to that effect. 
 (c) Seller Cure Cost Obligations. At or prior to the Closing, Seller shall have paid, segregated funds for payment of, or directed
to Buyer that a portion of the amount otherwise payable to Seller pursuant to Section 3.3(a) shall be paid in satisfaction of the Seller Cure Cost Obligations. 
 (d) Material Adverse Effect. Since the date of execution of this Agreement, no Material Adverse Effect shall have occurred and be
continuing. 
 (e) Seller’s Deliveries. Seller shall have delivered to Buyer all of the items set forth in
Section 3.2(a) of this Agreement. 
 12.4. Waiver of Condition; Frustration of Conditions. All conditions to the Closing
shall be deemed to have been satisfied or waived from and after the Closing. Neither Buyer nor Seller may rely on the failure of any condition set forth in this Article 12, as applicable, to be 

  

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satisfied if such failure was caused by such party’s failure to use, as required by this Agreement, its reasonable best efforts to consummate the
transactions contemplated hereby. Furthermore, in no event may Buyer rely on the failure of any condition set forth in this Article 12 to the extent that failure of such condition was caused by Operator’s breach of the O&M Agreement.

 ARTICLE 13 
 TERMINATION AND EFFECT OF TERMINATION 
 13.1. Right of Termination. Notwithstanding anything to the contrary
contained herein, this Agreement may be terminated only as provided in this Article 13. In the case of any such termination, the terminating party shall give notice to the other party specifying the provision pursuant to which the Agreement
is being terminated. 
 13.2. Termination Without Default. 
 (a) This Agreement may be terminated at any time before Closing: 
 (i) by mutual written consent of Seller and Buyer; 
 (ii) by Buyer (A) on any date that is more than 210 days after the date hereof (the “Final Termination
Date”), if any condition contained in Section 12.1 or 12.3 has not been satisfied or waived as of such time or (B) on or after November 1, 2009 if the condition set forth in Section 12.1(b) has
not been satisfied by such time (“Buyer Regulatory Termination Date”); provided, however, that, if Buyer is designated as the Back-Up Bidder at the Auction in accordance with the Bidding Procedures Order, then each of
the “Buyer Regulatory Termination Date” and the “Final Termination Date” will be 210 days from the date of the Auction; provided, further, that Buyer has no right to terminate this Agreement under this
Section 13.2(a)(ii) if Buyer’s failure to fulfill any of its obligations under this Agreement is a reason that the Closing has not occurred on or before said date; 
 (iii) by Seller (A) on or after September 1, 2009, if the condition set forth in Section 12.1(b) has not been
satisfied or (B) on and after the Final Termination Date if any condition contained in Sections 12.1 or 12.2 have not been satisfied or waived by such time; provided, however, that Seller has no right to terminate this
Agreement under this Section 13.2(a)(iii) if Seller’s failure to fulfill any of its obligations under this Agreement is a reason that the Closing has not occurred on or before said date; or 
 (iv) by either Buyer or Seller, immediately upon an Order becoming final and non-appealable that declares this Agreement invalid or
unenforceable in any material respect or that prevents the consummation of the transactions contemplated hereby or thereby (a “Termination Order”); provided, however, that neither Seller nor Buyer has the right to
terminate this Agreement pursuant to this Section 13.2(a)(iv) if such party or any of its Affiliates has sought entry of, or has failed to use its reasonable best efforts to oppose entry of, such Termination Order. 
  

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 (b) If this Agreement is terminated pursuant to Section 13.2, (i) the
Deposit, together with any interest accrued thereon less fees and expenses of the Escrow Agent owed by Buyer, shall be returned to Buyer and each of Buyer and Seller shall take all actions necessary to cause such return as promptly as practicable
after the date of such termination (including delivery of joint written instructions to such effect), (ii) this Agreement is null and void and has no effect (other than Sections 7.10(b)-(d), this Article 13, Article 15 and
Article 16 and the proviso to the second sentence of Section 7.11(a), which survive termination) and (iii) none of Seller, Buyer or any of their respective Related Persons has any liability or obligation arising under or in
connection with this Agreement; provided that such termination shall not limit the liability of (A) Buyer for Seller’s Losses arising from or relating to Buyer’s willful or intentional breach of this Agreement arising prior to
such termination or (B) Seller for Buyer’s Losses arising from or relating to Seller’s willful or intentional breach of this Agreement arising prior to such termination. 
 13.3. Effect of Failure of Seller’s Conditions to Closing. Seller may terminate this Agreement if there has been a material violation or
breach by Buyer of any covenant, representation or warranty contained in this Agreement which has prevented the satisfaction of any condition to the obligation of Seller at the Closing and such violation or breach has not been waived by Seller and
such violation or breach is not capable of being cured or, if capable of being cured, shall not have been cured prior to the earlier of (I) twenty days (ten days, in the case of any payment obligation) after written notice thereof from Seller,
or (II) the Final Termination Date; provided that the right of termination pursuant to this Section 13.3 is not available to Seller at any time that Seller has violated or is in breach of any covenant, representation or warranty
hereunder if such breach has prevented satisfaction of Buyer’s conditions to Closing hereunder and has not been waived by Buyer or, if capable of cure, has not been cured by Seller. If this Agreement is terminated pursuant to this
Section 13.3: (a) the Deposit, together with any interest accrued thereon less any fees and expenses of the Escrow Agent, shall be paid to Seller and each of Buyer and Seller shall take all actions necessary to cause such payment as
promptly as practicable after the date of such termination (including delivery of joint written instructions to such effect), (b) this Agreement is null and void and has no effect (other than Sections 7.10(b)-(d), this Article 13,
Article 15 and Article 16 and the proviso to the second sentence of Section 7.11(a), which survive termination) and (c) except as provided in this Section 13.3 or for Losses of a Party arising from or
related to a Party’s willful or intentional breach of this Agreement prior to termination of this Agreement, none of Seller, Buyer or any of their respective Related Persons have any liability or obligation arising under or in connection with
this Agreement. 
 13.4. Effect of Failure of Buyer’s Conditions to Closing. Buyer may terminate this Agreement if there has been
a material violation or breach by Seller of any covenant, representation or warranty contained in this Agreement which has prevented the satisfaction of any condition to the obligation of Buyer at the Closing and such violation or breach has not
been waived by Buyer and such violation or breach is not capable of being cured or, if capable of being cured, shall not have been cured prior to the earlier of (I) thirty days after written notice 

  

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thereof from Buyer, or (II) the Final Termination Date; provided that the right of termination pursuant to this Section 13.4 is not
available to Buyer at any time that Buyer has violated or is in breach of any covenant, representation or warranty hereunder if such breach has prevented satisfaction of Seller’s conditions to Closing hereunder and has not been waived by Seller
or, if capable of cure, has not been cured by Buyer. If this Agreement is terminated pursuant to this Section 13.4: (a) the Deposit, together with any interest accrued thereon less any fees and expenses of the Escrow Agent, shall be
returned to Buyer and each of Buyer and Seller shall take all actions necessary to cause such return as promptly as practicable after the date of such termination (including delivery of joint written instructions to such effect), (b) this
Agreement is null and void and has no effect (other than Sections 7.10(b)-(d), this Article 13, Article 15 and Article 16 and the proviso to the second sentence of Section 7.11(a), which survive termination)
and (c) except as provided in this Section 13.4 or for Losses of a party arising from or related to a Party’s willful or intentional breach of this Agreement prior to termination of this Agreement, none of Seller, Buyer or any
of their respective Related Persons have any liability or obligation arising under or in connection with this Agreement. 
 13.5.
Termination on Alternative Transaction. 
 (a) This Agreement may be terminated at any time before Closing by either
Buyer or Seller (i) upon or after Seller’s execution and delivery of any definitive purchase and sale or similar definitive agreement related to any Alternative Transaction if Buyer is not designated as the Back-up Bidder at the Auction or
(ii) at the closing of any Alternative Transaction if Buyer is designated as the Back-up Bidder at the Auction. 
 (b) If
this Agreement is terminated pursuant to Section 13.5(a): (i) the Deposit, together with any interest accrued thereon, less any fees and expenses of the Escrow Agent, shall be returned to Buyer within five (5) Business Days
after such termination (provided that the interest may not be returned until the second day of the month following such termination) and each of Buyer and Seller shall take all actions necessary to cause such payment as promptly as
practicable after the date of such termination (including delivery of joint written instructions to such effect), (ii) Seller shall pay Buyer the Break-Up Fee in accordance with Section 13.5(c), (iii) this Agreement is null and
void and has no effect (other than Sections 7.10(b)-(d), this Article 13, Article 15 and Article 16 and the proviso to the second sentence of Section 7.11(a), which survive termination), and (iv) except
as provided in this Section 13.5(b) and Section 13.5(c), none of Buyer, Seller or their respective Related Persons have any liability or obligation arising under or in connection with this Agreement. 
 (c) Break-Up Fee. 
 (i) If this Agreement is terminated pursuant to Section 13.5(a), Seller shall pay to Buyer, upon closing of the Alternative Transaction, an amount in immediately available funds equal to the Break-Up Fee.

 (ii) Seller’s obligation to pay the Break-Up Fee pursuant to this Section 13.5(c) survives termination of
this Agreement pursuant to this Section 13.5 and constitutes an administrative expense of Seller. 
  

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 (iii) The Break-Up Fee, payable under the circumstances provided in
Section 13.5(c)(i) constitutes liquidated damages and not a penalty and is the exclusive remedy of Buyer and its Affiliates for any termination of this Agreement pursuant to this Section 13.5. Buyer shall not, and shall cause
each of its Related Person not to bring any cause of action against or otherwise seek remedies from, Seller or any of Seller’s Related Persons or any counterparty to an Alternative Transaction or any of such counter party’s Related Persons
(other than for payment of the applicable Break-Up Fee when payable hereunder), whether at equity or in law, for breach of contract, in tort or otherwise, in the event that this Agreement is terminated for any reason in accordance with this
Section 13.5, and any claim, right or cause of action by Buyer or any other Person against Seller or its Related Persons in excess of the applicable Break-Up Fee is hereby fully waived, released and forever discharged. 
 (d) If Seller enters into an Alternative Transaction and Buyer is chosen as the Back-up Bidder, each Party’s obligations and rights
to consummate the transactions contemplated by this Agreement are tolled until either (i) Seller closes the Alternative Transaction or (ii) Seller informs Buyer that the Alternative Transaction will not be consummated. Upon notification by
Seller that the Alternative Transaction will not close and Buyer, as Back-up Bidder, must close the transaction, both Parties shall proceed to the closing of this transaction in accordance with the terms of this Agreement and the obligations of the
parties under this Agreement shall automatically, and without further part on any party, be restored in full. 
 ARTICLE 14 

INDEMNIFICATION 
 14.1. Right to
Indemnification. 
 (a) From and after the Closing (but subject to the provisions of this Article 14), Seller shall
indemnify Buyer on behalf of itself and its Related Persons (collectively, the “Buyer Indemnitees”) from the Indemnity Escrow Funds as its sole and exclusive remedy for any Losses relating to (i) Seller’s breach of
any of its representations or warranties in this Agreement or in any Ancillary Agreement, (ii) the Excluded Assets or the Excluded Liabilities (including the KM Pre-Effective Time Deficiency Obligations) and (iii) the failure of Seller to
perform any of its covenants and obligations required to be performed by it pursuant to this Agreement or any Ancillary Agreement. Notwithstanding the foregoing, from and after the Closing, the Indemnity Escrow Funds shall be the sole and exclusive
source of recovery for any Buyer Indemnitee for any amounts owing to Buyer for any claim for indemnification pursuant to this Agreement or any Ancillary Agreement. 
 (b) Subject to the other terms of this Article 14, from and after the Closing Date, Buyer shall indemnify, defend and hold harmless
Seller and its Related Persons (collectively, the “Seller Indemnitees” and, together with the Buyer Indemnitees, the “Indemnitees”) from and against, and pay to the applicable Seller Indemnitee the
amount 

  

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of, any and all Losses arising out of, resulting from or relating to (i) Buyer’s breach of any of its representations or warranties in this
Agreement or any Ancillary Agreement and (ii) the failure of Buyer to perform any of its covenants and obligations required to be performed by it pursuant to this Agreement or any Ancillary Agreement. 
 14.2. Limitations and Other Indemnity Claim Matters. Notwithstanding anything to the contrary in this Article 14 or elsewhere in this
Agreement, from and after the Closing, the following terms shall apply to any claim related to a Loss pursuant to Section 14.1: 
 (a) De Minimis. No indemnifying party (“Indemnifying Party”) will have any liability under this Article 14 in respect of any individual Loss of less than $20,000 (each, a
“De Minimis Loss”). For purposes of calculating the amount of any individual Loss, Losses resulting from the same or substantially similar or related set of facts, circumstances, acts, omissions or occurrences shall be
aggregated. Notwithstanding the foregoing, the limitations set forth in this Section 14.2(a) shall not apply to Losses arising from or related to a Party’s breach of any covenant in this Agreement or any Ancillary Agreement to the
extent providing for performance by such Party at or after the Effective Time. 
 (b) Deductible. No Indemnifying Party
will have any liability under Section 14.1 until the Buyer Indemnitees or Seller Indemnitees (as applicable) have suffered Losses in excess of an aggregate amount equal to $750,000 (the “Deductible”) arising from
Losses under Section 14.1, including De Minimis Losses, and then the recoverable Losses under Section 14.1 shall be limited to those that in the aggregate exceed such Deductible. Notwithstanding the foregoing, the limitations
set forth in this Section 14.2(b) shall not apply to Losses arising from or related to (i) a Party’s breach of any covenant in this Agreement or any Ancillary Agreement to the extent providing for performance by such Party at
or after the Effective Time (including Section 11.4 and the last sentence of Section 7.4), (ii) the rights of the Buyer Indemnitees to indemnification under clause (ii) of Section 14.1(a) or
(iii) any breach of the representations and warranties in any of the last sentence of Section 4.11, the last sentence of Section 4.12(a), Section 4.14, or Section 4.17. 
 (c) Cap. The aggregate liability of each of Buyer and Seller under this Agreement and from the transactions contemplated hereby
shall not exceed $10,000,000 (the “Cap”). Notwithstanding the foregoing, the limitations set forth in this Section 14.2(c) shall not apply to Losses arising from or related to a Party’s breach of any covenant
in this Agreement or any Ancillary Agreement to the extent providing for performance by such Party at or after the Effective Time. 
 (d) Calculation of Losses. The amount of any and all Losses under this Article 14 shall be determined net of any amounts actually recovered by an Indemnitee or any of such Indemnitee’s Affiliates under or pursuant to any
insurance policy, title insurance policy, indemnity, reimbursement arrangement or contract pursuant to which or under which such Indemnitee or such Indemnitee’s Affiliates is a party or has rights (collectively, “Alternative
Arrangements”). An Indemnifying Party shall have no liability, and an Indemnitee shall have no right to assert any claims, with respect to any 

  

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Losses that would have been covered by an Alternative Arrangement unless such Indemnitee has used reasonable best efforts to enforce its rights under such
Alternative Arrangement. 
 (e) Indemnitee Knowledge. No claims by any Indemnitee shall be so asserted for any breach
of a representation or warranty contained in this Agreement if such Indemnitee had knowledge of such breach at the date of this Agreement or otherwise at the time of Closing. For all purposes of this Agreement, no knowledge of any Buyer Indemnitee
shall be imputed to any Seller Indemnitee and no knowledge of any Seller Indemnitee shall be imputed to any Buyer Indemnitee. For purposes of this Section 14.2(e) knowledge by a Seller Indemnitee of a breach by Buyer shall be determined
to exist if there was Seller’s Knowledge of such breach and knowledge by a Buyer Indemnitee of a breach by Seller shall be determined to exist if there was Buyer’s Knowledge of such breach at the occurrence thereof. Each of Seller and
Buyer agrees that, prior to the date of this Agreement and the Closing Date, they shall review the representations and warranties in this Agreement with the individuals named in the definition of Seller’s Knowledge and Buyer’s Knowledge,
respectively. 
 (f) Mitigation of Losses. Each Indemnitee agrees that in the event of any breach giving rise to an
indemnification obligation under this Article 14, such Indemnitee shall take and shall cause its Affiliates to take, or cooperate with the Indemnifying Party if so requested by the Indemnifying Party, in order to take, all reasonable measures
to mitigate the consequences of the related breach (including taking steps to prevent any contingent liability from becoming an actual liability). 
 (g) Survival; Claims Period. All representations and warranties of the Parties contained in this Agreement shall survive the Closing until twelve (12) months after the Closing Date. All covenants contained
in this Agreement that are to be performed prior to the Closing shall terminate at the Closing, and all covenants contained in this Agreement that are to be performed at or after the Closing shall survive the Closing indefinitely. NO PARTY SHALL
HAVE ANY LIABILITY FOR INDEMNIFICATION CLAIMS MADE UNDER THIS ARTICLE 14 WITH RESPECT TO ANY SUCH REPRESENTATION, WARRANTY OR COVENANT UNLESS A NOTICE OF SUCH CLAIM IS PROVIDED BY THE INDEMNITEE TO SUCH OTHER PARTY PRIOR TO THE EXPIRATION OF
THE APPLICABLE SURVIVAL PERIOD FOR SUCH REPRESENTATION, WARRANTY OR COVENANT. If a Claim Notice has been timely given in accordance with this Agreement prior to the expiration of the applicable survival period for such representation, warranty or
covenant, then the applicable representation, warranty or covenant shall survive as to such Loss until such Loss has been finally resolved. 
 14.3. Exclusive Remedy; Payment of Indemnity Claims. 
 (a) NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,
IF THE CLOSING OCCURS, EXCEPT (I) AS PROVIDED IN THIS ARTICLE 14, (II) FOR CLAIMS FOR INJUNCTIVE OR OTHER EQUITABLE RELIEF, OR (III) IN THE CASE OF FRAUD OR ANY INTENTIONAL BREACH OF THIS AGREEMENT, 

  

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NO PARTY SHALL HAVE ANY LIABILITY, AND NO PARTY SHALL MAKE ANY CLAIM, FOR ANY LOSS OR OTHER MATTER (AND THE PARTIES HEREBY WAIVE ANY RIGHT OF CONTRIBUTION
AGAINST EACH OTHER AND THEIR RESPECTIVE AFFILIATES), UNDER, ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING ANY CERTIFICATE DELIVERED PURSUANT HERETO), ANY ANCILLARY AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, WHETHER BASED
ON CONTRACT, TORT, STRICT LIABILITY, OTHER LAWS OR OTHERWISE. 
 (b) To the extent it is finally determined that Seller is
required to provide an indemnification payment under the terms of this Article 14 to a Buyer Indemnitee, such payment shall be satisfied exclusively by the release of a portion of the Indemnity Escrow Funds from the Indemnity Escrow Account.

 (c) For the avoidance of doubt, none of the Losses indemnifiable under this Article 14 shall include any type of
damages of the type that Section 15.17 provides is not recoverable by any party from and after the Closing. 
 14.4.
Indemnification Procedures. 
 (a) Any Indemnitee claiming indemnification under this Agreement with respect to any
claim asserted against the Indemnitee by a third party (a “Third Party Claim”) in respect of any matter that, if true (without any responsibility for independent investigation of the facts or law contained in such notice from
the third party), would be subject to indemnification under Section 14.1 shall promptly (i) notify the Indemnifying Party of the Third Party Claim and (ii) deliver to the Indemnifying Party a written notice (a “Claim
Notice”) describing in reasonable detail the nature of the Third Party Claim and the basis of the Indemnitee’s request for indemnification under this Agreement and a copy of all papers served with respect to such claim (if any).
Subject to Section 14.2(g), failure to timely and completely provide such Claim Notice shall not affect the right of the Indemnitee’s indemnification hereunder, except to the extent the Indemnifying Party is actually prejudiced by
such delay or omission. 
 (b) The Indemnifying Party shall have the right to defend the Indemnitee against such Third Party
Claim. If the Indemnifying Party notifies the Indemnitee that the Indemnifying Party elects to assume the defense of the Third Party Claim, then the Indemnifying Party shall have the right to defend such Third Party Claim with counsel selected by
the Indemnifying Party (who shall be reasonably satisfactory to the Indemnitee), by all appropriate proceedings, to a final conclusion or settlement at the discretion of the Indemnifying Party in accordance with this Section 14.4(b);
provided, that the Indemnifying Party must conduct its defense of the Third Party Claim actively and diligently in all material respects in order to preserve its rights to defend the Indemnitee against such Third Party Claim. The Indemnifying
Party shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided, that the Indemnifying Party shall not enter into any settlement agreement without the written consent of the Indemnitee (which
consent shall not be unreasonably withheld, conditioned or delayed); provided further, that such consent shall 

  

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not be required if (i) the settlement agreement contains a complete and unconditional general release by the third party asserting the claim of all
Indemnitees affected by the claim, (ii) the settlement agreement does not contain any sanction or restriction upon the conduct of any business by any Indemnitee and (iii) the settlement agreement does not give rise to any liability of an
Indemnitee for which the Indemnifying Party is not liable to indemnify hereunder. If requested by the Indemnifying Party, the Indemnitee agrees to cooperate with the Indemnifying Party and its counsel, at the Indemnifying Party’s expense, in
contesting any Third Party Claim which the Indemnifying Party elects to contest. The Indemnitee may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to this
Section 14.4(b), and the Indemnitee shall bear its own costs and expenses with respect to such participation; provided, however, that the Indemnitee shall be entitled to participate in any such defense with separate counsel at the
expense of the Indemnitee. 
 (c) If the Indemnifying Party does not notify the Indemnitee that the Indemnifying Party elects
to defend the Indemnitee pursuant to Section 14.4(b) within 30 days of the Indemnifying Party’s receipt of a Claim Notice, then the Indemnitee shall have the right to defend, and be reimbursed for its reasonable cost and expense
(but only if the Indemnitee is actually entitled to indemnification hereunder) in regard to the Third Party Claim with counsel selected by the Indemnitee, by all appropriate proceedings, which proceedings shall be prosecuted diligently by the
Indemnitee; provided that, if the alleged Indemnifying Party denies that it is obligated to indemnify the alleged Indemnitee for a Third Party Claim pursuant to a Claim Notice, such alleged Indemnitee shall not have the right to reimbursement for
any defense of such Third Party Claim until the dispute is resolved and the alleged Indemnifying Party agrees to or is found by the final adjudicating body with jurisdiction over the dispute to be liable or obligated for the alleged
Indemnitee’s requested indemnification. In such circumstances, the Indemnitee shall have full control of such defense and proceedings; provided, however, that the Indemnitee may not enter into any compromise or settlement of such Third Party
Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent (which consent shall not be unreasonably withheld, conditioned or delayed). The Indemnifying Party may participate in, but not control, any defense or
settlement controlled by the Indemnitee pursuant to this Section 14.4(c), and the Indemnifying Party shall bear its own costs and expenses with respect to such participation. 
 (d) Subject to the other provisions of this Article 14, a claim for indemnification by any Indemnitee for any matter not involving
a Third Party Claim shall be asserted by delivery of a Claim Notice to the Indemnifying Party from whom indemnification is sought promptly after such Indemnitee becomes aware of the facts or circumstances giving rise to such Claim; provided, that
failure to timely provide such Claim Notice shall not affect the Indemnitee’s rights to indemnification hereunder, except to the extent the Indemnifying Party is actually prejudiced by such delay or omission. 
  

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 14.5. Releases of Indemnity Escrow Funds to Seller. 
 (a) Not later than the six-month anniversary of the Closing Date (the “First Release Date”), Buyer and Seller
shall cause the Escrow Agent (including by delivering joint written instructions to the Escrow Agent) to disburse to Seller from the Indemnity Escrow Funds, an amount equal to the excess of (I) $5,000,000, minus (II) the sum (without
duplication) of (A) the aggregate amount for which claims for indemnification of the Buyer Indemnitees that were asserted pursuant to this Agreement prior to the First Release Date and are still pending (or, to the extent finally resolved in
favor of the Buyer Indemnified Parties (or any of them), have not been paid from the Indemnity Escrow Funds) as of the First Release Date (such aggregate amount, the “Interim Claim Amount”) and (B) the aggregate amount
of all distributions from the Indemnity Escrow Funds to any Buyer Indemnitee or any designee thereof prior to the First Release Date. In the event that, after the First Release Date but prior to the Second Release Date, it is finally determined in
accordance with this Agreement that the Buyer Indemnitees are not entitled to some portion of the Interim Claim Amount pursuant to this Agreement, Buyer and Seller shall, within five (5) business days after such final determination, cause the
Escrow Agent (including by delivering joint written instructions to the Escrow Agent) to disburse to Seller from the Indemnity Escrow Funds, that portion of the Interim Claim Amount which, when taken together with the amounts previously disbursed or
released from the Indemnity Escrow Funds pursuant to this Section 14.5, would not be in excess of (I) $5,000,000, minus (II) the sum (without duplication) of (A) the aggregate amount of all claims for indemnification of
the Buyer Indemnitees that were asserted pursuant to this Agreement prior to the First Release Date and are still pending (or, to the extent finally resolved in favor of the Buyer Indemnitees, have not been paid from the Indemnity Escrow Funds) as
of the date of final determination of such Interim Claim Amount, and (B) the aggregate amount of all distributions from the Indemnity Escrow Funds to any Buyer Indemnitee or a designee thereof prior to the First Release Date. 
 (b) Not later than one-year anniversary of the Closing Date (the “Second Release Date”), Buyer and Seller shall
cause the Escrow Agent (including by delivering joint written instructions to the Escrow Agent) to disburse to Seller from the Indemnity Escrow Funds, an amount equal to the excess of (I) all of such then-remaining Indemnity Escrow Funds
minus (II) the aggregate amount for which claims for indemnification (including Interim Claim Amounts) of the Buyer Indemnitees were asserted pursuant to this Agreement prior to the Second Release Date and are still pending (or, to the extent
finally resolved in favor of the Buyer Indemnitees, have not been paid from the Indemnity Escrow Funds) as of the Second Release Date (the “Final Claim Amount”). Furthermore, after the Second Release Date, within five
(5) business days after it is finally determined in accordance with this Agreement that all or any portion of the Final Claim Amount is not owed to any Buyer Indemnitee hereunder, Buyer and Seller shall cause the Escrow Agent (including by
delivering joint written instructions to the Escrow Agent) to disburse to Seller from the Indemnity Escrow Funds, all or such portion of the Final Claim Amount; provided that the remaining Indemnity Escrow Funds, after giving effect to such
disbursement, are at least equal to the aggregate amount of all claims for indemnification of the Buyer Indemnitees which were asserted prior to, and were pending on, the Second Release Date and are still pending as of the date of such disbursement
of such Final Claim Amount (or portion thereof) (or, to the extent finally resolved in favor of the Buyer Indemnitees, have not been paid from the Indemnity Escrow Funds). 
  

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 ARTICLE 15 
 MISCELLANEOUS 
 15.1. Successors and Assigns. Except as otherwise provided in this Agreement,
no Party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party and any such attempted assignment without such prior written consent is void and of no force or effect; provided
that, notwithstanding the foregoing, without amending, modifying or terminating any of Buyer’s obligations under this Agreement, Buyer may, not less than five Business Days prior to Closing, designate one or more Subsidiaries to purchase all or
any portion of the Acquired Assets and execution and delivery by such Subsidiary(ies) of any agreement or document contemplated by Section 3.3(c) of this Agreement shall be in full satisfaction of Buyer’s obligations under
Section 3.3(c) to deliver any such agreement or document. This Agreement inures to the benefit of and is binding upon the successors and permitted assigns of the parties hereto. 
 15.2. Governing Law; Jurisdiction. This Agreement is construed, performed and enforced in accordance with, and governed by, the Laws of the State
of Delaware (without giving effect to the principles of conflicts of Laws thereof), except to the extent that the Laws of such State are superseded by the Bankruptcy Code; provided that the validity and enforceability of all conveyance
documents or instruments executed and delivered pursuant to this Agreement insofar as they affect title to real property are governed by and construed in accordance with the Laws of the State of Texas. For so long as Seller is subject to the
jurisdiction of the Bankruptcy Court, the parties hereto irrevocably elect as the sole judicial forum for the adjudication of any matters arising under or in connection with the Agreement, and consent to the exclusive jurisdiction of, the Bankruptcy
Court. After Seller is no longer subject to the jurisdiction of the Bankruptcy Court, any legal action or proceeding with respect to this Agreement or the transactions contemplated hereby may be brought in the courts of the State of Texas sitting in
Harris County or of the United States for the Southern District of Texas, and by execution and delivery of this Agreement, each of the Parties consents to the non-exclusive jurisdiction of those courts. Each of the Parties irrevocably waives any
objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any action or proceeding in any such jurisdiction in respect of this Agreement or
the transactions contemplated hereby. 
 15.3. Mutual Disclosures. Prior to the Closing, each of Buyer and Seller shall promptly
notify the other parties hereto if such party obtains knowledge that any of the representations and warranties in this Agreement or the Disclosure Schedules are not true and correct in all material respects, or if such Party obtains actual knowledge
of any material errors in or omissions from the Disclosure Schedules. 
 15.4. Disclosure Schedules; Disclosure Schedule Supplements.

 (a) From time to time prior to the Closing, Seller shall supplement or amend the Disclosure Schedules to this Agreement
with respect to any matter that, if existing, occurring or known at the date of this Agreement, would have been required to be set forth or described in the Disclosure Schedules. No such update shall be deemed to have amended any Disclosure Schedule
for purposes of Article 12 and Article 14. 
  

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 (b) Seller may, at its option, include in the Disclosure Schedules items that are not
material, and any such inclusion, or any references to dollar amounts, is not deemed to be an acknowledgment or representation that such items are material or would cause a Material Adverse Effect, to establish any standard of materiality or to
define further the meaning of such terms for purposes of this Agreement. Information disclosed in the Disclosure Schedules constitutes a disclosure for all purposes of the section for which such disclosure was made and each other section for which
such disclosure is readily apparent. 
 15.5. Cancellation of Intercompany Accounts and Services. Buyer acknowledges and agrees that,
at or prior to the Closing, Seller and its Affiliates may (but shall not be obligated to) cancel or forgive any note or other liability or obligation (including intercompany debt or intercompany receivables) owing (i) from Seller to any of its
Affiliates or (ii) from any of Seller’s Affiliates to Seller or otherwise with respect to the Business, that such cancellation or forgiveness shall be without liability to Seller or any such Affiliate and that all representations and
warranties made hereunder shall be made as though such receivable, note, or other liability or obligation was never outstanding. Except as contemplated by any other agreement executed by Seller or one of its Affiliates, on the one hand, and Buyer,
on the other hand, from and after the Closing, all services (including cash management and treasury, accounting, Tax, insurance, human resources, environmental, banking, legal, data network and other services) provided to the Business by Seller or
any of its Affiliates, including any agreements or understandings (written or oral) with respect thereto, will terminate without any further action or liability on the part of the parties thereto and intercompany accounts from Seller or any of its
Affiliates to the Business shall be terminated without liability to Seller or such Affiliates. Without limiting the generality of the foregoing, as of the Closing Date, the coverage under all insurance policies (including the Pollution Policies)
maintained by Seller or any of its Affiliates related to the Business or the Pipeline System shall continue in force only for the benefit of Seller and its Affiliates and not for the benefit of Buyer or its Affiliates. Buyer agrees to arrange for
its own insurance policies with respect to the Business and Pipeline System covering all periods and agrees not to seek, through any means, to benefit from any of the insurance policies maintained by Seller or its Affiliates (including the Pollution
Policies) which may provide coverage for claims relating in any way to the Business or the Pipeline System prior to the Closing. Furthermore, and without limiting the generality of the provisions of this Section 15.5, (a) each party
hereto or any of such party’s Affiliates shall be permitted to remove any link on any website owned, maintained or controlled by it to any internet website(s) owned, maintained or controlled by the other party or any of its Affiliates without
any further action or liability on the part of the removing party and (b) upon the request of a party hereto, the other party or any of its Affiliates shall promptly remove or cause to be removed any link(s) to any internet web site(s) owned,
maintained or controlled by the requesting party on any internet website owned, maintained or controlled by such other party or any of its Affiliates. 
 15.6. Warranties Exclusive. 
 (a) The representations, warranties, covenants and
agreements contained in this Agreement and the Ancillary Agreements are the only representations, warranties, covenants or agreements given by Seller and its Related Persons and all other express or implied warranties are disclaimed. Furthermore,
Buyer acknowledges and agrees that (i)

  

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except as expressly provided in this Agreement and the Ancillary Agreements, the Acquired Assets are conveyed “AS IS”, “WHERE IS” and
“WITH ALL FAULTS” and that all warranties of merchantability, usage or suitability or fitness for a particular purpose are disclaimed, (ii) it has not relied on any representation, warranty, covenant or agreement of Seller or its
Related Persons, other than the express representations, warranties, covenants and agreements of Seller made in this Agreement, (iii) Buyer has made its own investigation of the Acquired Assets and Assumed Liabilities and, based on such
investigation and its own conclusions derived from such investigation, has elected to proceed with the transactions contemplated hereby and (iv) except as expressly provided in this Agreement and the Ancillary Agreements, no material or
information provided by or communications made by Seller or its Related Persons will create any representation or warranty of any kind, whether express or implied, with respect to the Acquired Assets and the title thereto, the operation of the
Acquired Assets, or the prospects (financial and otherwise), risks and other incidents of the Business. 
 (b) Without
limiting the generality of the foregoing, Buyer acknowledges and agrees that none of Seller or its Related Persons has made any representation or warranty, express or implied, as to the accuracy or completeness of any information regarding the
Business or the Pipeline System, except as expressly set forth in this Agreement or as and to the extent required by this Agreement to be set forth in the Disclosure Schedules. Buyer further agrees that none of Seller or its Related Persons will
have or be subject to any liability to Buyer or any other Person resulting from the distribution to Buyer, or Buyer’s use of, any such information and any information, document or material made available to Buyer or its Related Persons in that
certain confidential information of Longhorn Pipeline Holdings, LLC, in certain “data rooms” and online “data sites,” management presentations or any other form in expectation of the transactions contemplated by this Agreement.

 (c) In connection with Buyer’s investigation of the Business and the Pipeline System, Buyer may have reviewed certain
projections, including projected statements of operating revenues and income from operations of the Business and the Pipeline System and certain business plan information regarding the Business and the Pipeline System. Buyer acknowledges that there
are uncertainties inherent in attempting to make such estimates, projections and other forecasts and plans, that Buyer is familiar with such uncertainties, that Buyer is taking full responsibility for making its own evaluation of the adequacy and
accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts), and that Buyer shall have no claim against Seller or its
Related Persons with respect to such estimates, projections and other forecasts and plans. Accordingly, Seller or its Related Persons make no representations or warranties whatsoever with respect to such estimates, projections and other forecasts
and plans (including the reasonableness of the assumptions underlying such estimates, projections and forecasts). 
  

 49 

 15.7. No Recourse Against Affiliates or Related Persons of Seller. 
 (a) Buyer (on its behalf and on behalf of its Related Persons) acknowledges and agrees that, from and after the Closing, to the fullest
extent permitted under applicable law, any and all rights, claims and causes of action it may have against Seller or its Related Persons relating to the operation of the Business or relating to the subject matter of this Agreement and the
transactions contemplated hereby arising under or based upon any Law (including any right, whether arising at law or in equity, to seek indemnification, contribution, cost recovery, damages, or any other recourse or remedy, including as may arise
under common law or Environmental Law) are hereby waived. Nothing in this Section 15.7(a) shall be deemed to limit or amend any rights of any Buyer Indemnitee for breach of this Agreement or with respect to the transactions contemplated
hereby set forth in this Agreement. 
 (b) Seller (on its behalf and on behalf of its Related Persons) acknowledges and agrees
that, from and after the Closing, to the fullest extent permitted under applicable law, any and all rights, claims and causes of action it may have against Buyer or its Related Persons relating to the subject matter of this Agreement and the
transactions contemplated hereby arising under or based upon any Law (including any right, whether arising at law or in equity, to seek indemnification, contribution, cost recovery, damages, or any other recourse or remedy, including as may arise
under common law or Environmental Law) are hereby waived. Nothing in this Section 15.7(b) shall be deemed to limit or amend any rights of any Seller Indemnitee for breach of this Agreement or with respect to the transactions contemplated
hereby set forth in this Agreement. 
 (c) Each of Buyer and Seller acknowledge and agree that the representations,
warranties, covenants agreements contained in Section 15.6 and this Section 15.7 are an integral part of the transactions contemplated by this Agreement and that, without these agreements, the Parties would not enter into
this Agreement. 
 15.8. Mutual Drafting. This Agreement is the result of the joint efforts of Buyer and Seller, and each provision
hereof has been subject to the mutual consultation, negotiation and agreement of the parties and there is to be no construction against either Party based on any presumption of that Party’s involvement in the drafting thereof. 
 15.9. Expenses. Except as otherwise provided herein, each of the Parties hereto shall pay its own expenses in connection with this Agreement and
the transactions contemplated hereby, including any legal and accounting fees, whether or not the transactions contemplated hereby are consummated. Buyer shall pay the cost of all Transaction Taxes payable upon or in connection with, and all
surveys, title insurance policies and title reports obtained in connection with this Agreement, if any; and the transactions contemplated thereby and all filing fees required to be paid in connection with any filings made or notices given pursuant
to any Antitrust Law. 
 15.10. Broker’s and Finder’s Fees. Each of the Parties represents and warrants that it has not
dealt with any broker or finder in connection with any of the transactions contemplated by this Agreement in a manner so as to give rise to any claims against the other Party for any brokerage commission, finder’s fees or other similar payout,
except that Seller and its Affiliates 

  

 50 

 
have retained The Blackstone Group and Flying J has retained Aegis Energy Advisors and Seller will pay its retained advisors such fees as are approved by the
Bankruptcy Court. Buyer acknowledges and agrees that if any brokerage commission, finder’s fee or other similar payout are owed to any Person as a result of any agreement or understanding entered into by Buyer or its Related Persons with
respect to any of the transactions contemplated hereby, Buyer shall be solely responsible for payment of all fees, expenses, liabilities and other obligations to such Person. 
 15.11. Severability. In the event that any part of this Agreement is declared by any court or other judicial or administrative body to be null,
void or unenforceable, said provision survives to the extent it is not so declared, and all of the other provisions of this Agreement remain in full force and effect only if, after excluding the portion deemed to be unenforceable, the remaining
terms provide for the consummation of the transactions contemplated hereby in substantially the same manner as originally set forth at the later of the date this Agreement was executed or last amended. 
 15.12. Notices. All notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given (a) if personally delivered, on the date of delivery, (b) if delivered by express courier service of national standing (with charges prepaid), on the Business Day following the
date of delivery to such courier service, (c) if deposited in the United States mail, first-class postage prepaid, on the fifth Business Day following the date of such deposit, (d) if delivered by telecopy, upon confirmation of successful
transmission, (i) on the date of such transmission, if such transmission is completed at or prior to 5:00 p.m., local time of the recipient party on a Business Day, on the date of such transmission, and (ii) on the next day following the
date of transmission, if such transmission is completed after 5:00 p.m., local time of the recipient party, on the date of such transmission or is transmitted on a day that is not a Business Day, or (e) if delivered by Internet mail (with a
delivery report); provided that the relevant computer record indicates a full and successful transmission or no failure message is generated (i) on the date of such transmission, if such transmission is completed at or prior to 5:00
p.m., local time of the recipient party on a Business Day, on the date of such transmission, and (ii) on the next Business Day following the date of transmission, if such transmission is completed after 5:00 p.m., local time of the recipient
party or is transmitted on a day that is not a Business Day. All notices, demands and other communications hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice: 
 If to Seller: 
 c/o Flying J Inc. 
 1104 Country Hills Drive 
 Ogden, Utah 84403 
 Attention: General Counsel 
 Facsimile: 810-624-1263 
 E-mail:
james.dester@flyingj.com 
  

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 Copy to: 
 Kirkland & Ellis LLP 
 655 15th St. N.W. 
 Washington, DC 20005-5793 
 Attention:
Mitchell F. Hertz 
 Facsimile: (202) 874-5200 
 E-mail: mitchell.hertz@kirkland.com 
 Kirkland & Ellis LLP 
 300 North LaSalle 
 Chicago, IL 60654

 Attention: Adam Paul 
 Facsimile: (312) 862-2200 
 E-mail: adam.paul@kirkland.com 
 If to Buyer: 
 Magellan Pipeline Company,
L.P. 
 One Williams Center, Suite 2800 
 Tulsa, OK 74172 
 Attention: Brett Riley 
 Facsimile: (918) 574-7003 
 E-mail: Brett.Riley@magellanlp.com 
 Copy to: 
 Magellan Midstream Partners, L.P.

 One Williams Center, Suite 2800 
 Tulsa, OK 74172 
 Attention: General Counsel 
 Facsimile: (918) 574-7039 
 E-mail: Lonny.Townsend@magellanlp.com 
 15.13. Amendments; Waivers. This Agreement may be amended or modified, and any of the terms, covenants, representations, warranties or conditions
hereof may be waived, only by a written instrument executed by the Parties, or in the case of a waiver, by the Party waiving compliance. Any waiver by any Party of any condition, or of the breach of any provision, term, covenant, representation or
warranty contained in this Agreement, in any one or more instances, is not deemed to be nor construed as a furthering or continuing waiver of any such condition, or of the breach of any other provision, term, covenant, representation or warranty of
this Agreement. 
 15.14. Public Announcements. No Party shall make any press release or public announcement concerning the
transactions contemplated by this Agreement without the prior written approval of the other Party, unless a press release or public announcement is required by Law or Order of the Bankruptcy Court. If any such announcement or other disclosure is
required by 

  

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Law or Order of the Bankruptcy Court, the disclosing Party shall give the nondisclosing Party prior notice of, and an opportunity to comment on, the proposed
disclosure. The Parties acknowledge that Seller will file this Agreement with the Bankruptcy Court in connection with obtaining the Sale Order and Bidding Procedures Order. 
 15.15. Entire Agreement. This Agreement and the Ancillary Agreements contain the entire understanding among the Parties with respect to the
transactions contemplated hereby and supersede and replace all prior and contemporaneous agreements and understandings, oral or written, with regard to such transactions. All Disclosure Schedules hereto and any documents, certificates and
instruments delivered pursuant to any provision hereof are expressly made a part of this Agreement as fully as though completely set forth herein. 
 15.16. Parties in Interest. 
 (a) Except as set forth in Section 7.8(c), which confers upon the
Seller Note Holder, a non-signatory to this Agreement, rights to certain information and materials, nothing in this Agreement is intended to confer any rights or remedies under or by reason of this Agreement on any Persons other than Seller and
Buyer and their respective successors and permitted assigns; provided that (i) each covenant or agreement of Buyer in this Agreement is expressly for the benefit of each of Seller, Flying J and each of their respective Affiliates and
shall be enforceable by each of Seller, Flying J and each of their respective Affiliates and (ii) any Related Person of Seller or Buyer, as applicable, may enforce the terms of any provision of this Agreement in which such Related Person is
referenced as a beneficiary of such provision. 
 (b) Without limiting or amending the obligations of Buyer hereunder, to the
extent that any obligation or liability of Buyer hereunder is to be performed or paid by a Related Person of Buyer, this Agreement shall constitute an obligation of Buyer to cause such Related Person to perform. Nothing in this Agreement is intended
to relieve or discharge the obligations or liability of any third Persons to Seller or Buyer. No provision of this Agreement gives any third Persons any right of subrogation or action over or against Seller or Buyer. 
 15.17. DAMAGES. FROM AND AFTER THE CLOSING, NO PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, SPECIAL, INDIRECT OR PUNITIVE
DAMAGES (INCLUDING LOST PROFITS, LOSS OF PRODUCTION OR OTHER DAMAGES ATTRIBUTABLE TO BUSINESS INTERRUPTION) ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT. THE EXCLUSION OF CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, SPECIAL, INDIRECT OR PUNITIVE
DAMAGES AS SET FORTH IN THE PRECEDING SENTENCE SHALL NOT LIMIT THE RIGHTS OF ANY PERSON ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT TO ANY SUCH DAMAGES PAYABLE TO THIRD PERSONS IN CONNECTION WITH A MATTER FOR WHICH A PERSON ENTITLED TO
INDEMNIFICATION UNDER THIS AGREEMENT. 
  

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 15.18. Specific Performance. Each Party acknowledges and agrees that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed by it in accordance with their specific terms or were otherwise breached by it. It is accordingly agreed that subject to the entry of the Sale Order in which Buyer is
designated as the purchaser of the Acquired Assets, each Party shall be entitled (in addition to any other remedy that may be available to it whether in law or equity, including monetary damages, except as limited by this Agreement) to seek and
obtain (a) a decree or order of specific performance to enforce the observance and performance of such covenant or obligation, and (b) an injunction restraining such breach or threatened breach. Each Party further agrees that
(x) neither the other Party, such other Party’s Related Persons or their Related Persons shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to
in this Section 15.18, and each Party irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument and (y) each Party irrevocably waives its right to contest any of
the relief that each Party is entitled. 
 15.19. Headings. The article and section headings in this Agreement are for reference
purposes only and do not affect the meaning or interpretation of this Agreement. 
 15.20. Construction. Unless the context of this
Agreement otherwise requires, (a) words of any gender include the other gender, (b) words using the singular or plural number also include the plural or singular number, respectively, (c) the terms “hereof,”
“herein,” “hereby,” and derivative or similar words refer to this entire Agreement as a whole and not to any other particular article, section or other subdivision, (d) the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation,” (e) “shall,” “will,” or “agrees” are mandatory, and “may” is permissive, and (f) “or” is
not exclusive. 
 15.21. Currency. Except where otherwise expressly provided, all amounts in this Agreement are stated and shall be
paid in United States currency, and without discount, rebate or reduction and subject to no counterclaim or offset (other than withholding Tax obligations required to be withheld by law), on the dates specified herein. 
 15.22. Time of Essence. Time is of the essence of this Agreement. 
 15.23. Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which constitute the same agreement. This Agreement and any signed agreement entered into in
connection herewith or contemplated hereby, and any amendments hereto or thereto, to the extent signed and delivered by facsimile (or equivalent electronic transmission), shall be treated in all manner and respects as an original contract and is
considered to have the same binding legal effects as if it were the original signed version thereof delivered in person. 
 ARTICLE 16 

 DEFINITIONS 
 16.1.
Certain Terms Defined. As used in this Agreement, the following terms have the following meanings: 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such first Person where “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person, through the ownership of voting securities, by contract, as trustee, executor or otherwise. 
  

 54 

 “Alternative Transaction” means a transaction involving a sale, directly or
indirectly, of all or substantially all of the Business or the Acquired Assets by Seller or an Affiliate thereof to a purchaser or purchasers, other than Buyer or an Affiliate thereof. 
 “Ancillary Agreement” means collectively, any agreement to be executed by Seller and/or its Related Persons, on the one hand, and
Buyer and/or it Related Persons on the other hand, in connection with the transactions contemplated by this Agreement, including but not limited to the Main Line Fill Purchase Agreement and the Spur Line Fill Purchase Agreement. 
 “Auction” means the auction conducted by Seller pursuant to the Bidding Procedures Order. 
 “Back-up Bidder” has the meaning set forth in the Bidding Procedures. 
 “Bankruptcy Code” means Title 11 of the United States Code. 
 “Bankruptcy Court” means the United States Bankruptcy Court for the District of Delaware or such other court having jurisdiction
over the Chapter 11 Case originally administered in the United States Bankruptcy Court of the District of Delaware. 
 “Break-Up
Fee” means $3,750,000; provided that if this Agreement is terminated pursuant to Section 13.5(a) and the condition specified in Section 12.1(b) has been satisfied on or prior to the last day of the
Auction, the “Break-Up Fee” means $7,500,000. 
 “Business” means the business of shipping, storing, and
terminaling of refined petroleum products on the Pipeline System to Seller’s customers, including but not limited to the operation, maintenance, repair, expansion and connection of the Pipeline System, as conducted by Seller over the last
twelve (12) months prior to the date hereof, and any business activities of Seller incidental to the foregoing. 
 “Business
Day” means any day other than Saturday, Sunday and any day that is a legal holiday or a day on which banking institutions in New York, New York are authorized by Law or other Governmental action to close. 
 “Business Records” means all books, files and records to the extent they apply exclusively to the Acquired Assets or the
Business, including customer lists, historical customer files, reports, plans, data, accounting and Tax records, test results, product specifications, drawings, diagrams, training manuals, engineering data, safety reports, Environmental Reports,
maintenance schedules, operating and production records, inventory records, business plans, and marketing and all other studies, documents and records but excluding any Retained Books and Records. 
  

 55 

 “Buyer Cure Cost Obligations” means the sum of (i) 50% of the Shared Cure
Cost Obligations plus (ii) all cure costs required to be paid pursuant to Section 365 of the Bankruptcy Code in connection with the assumption and assignment of the Assigned Contracts that are not Shared Cure Cost Contracts;
provided that in no event shall the amount of “Buyer Cure Cost Obligations” exceed $3,500,000 in the aggregate (with any such amount not deemed to be Buyer Cure Cost Obligations by operation of this proviso being deemed to fully
reduce amounts determined pursuant to clause (ii) before any reduction in Buyer Cure Costs pursuant to clause (i) of this definition occurs. 
 “Buyer Percentage” means, with respect to each Third-Party Batch, the percentage determined by dividing (i) 694 minus the distance in miles that the mid-point of such Third-Party Batch has
traveled from Galena Park as of the Third-Party Batch Measurement Time by (ii) 694. 
 “Chapter 11 Case” means,
collectively, the cases commenced and to be commenced by Seller under chapter 11 of the Bankruptcy Code in the Bankruptcy Court. 
 “Claims” means all rights, demands, claims, credits, allowances, rebates, causes of action, known or unknown, pending or threatened (including all causes of action arising under Sections 510, 544 through 551 and 553
of the Bankruptcy Code or under similar state Laws including fraudulent conveyance claims, and all other causes of action of a trustee and debtor-in-possession under the Bankruptcy Code) or rights of set-off. 
 “Clayton Act” means Title 15 of the United States Code §§ 12-27 and Title 29 of the United States Code
§§ 52-53, as amended. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Connection Agreement” means that certain GATX-Longhorn Connection Agreement between GATX Terminals Corporation and Seller dated
as of October 23, 1997, as amended prior to the date of this Agreement. 
 “Consent” means any consent,
approval, authorization, qualification, waiver or notification of a Government or any other Person. 
 “Contract”
means any written or oral contract, agreement, license, sublicense, lease, sublease, easement, mortgage, instruments, guaranties, commitment, undertaking or other similar arrangement, whether express or implied, other than the Permits or Crossing
Permits. 
 “Contribution Agreement” means that certain Contribution and Sale Agreement between Seller and Exxon
Pipeline Company, dated as of October 21, 1997. 
 “Crane Station” means Seller’s terminal and associated
tanks and piping, located at 221 Longhorn Road, Crane, Texas. 
 “Delayed Acquired Assets” means any Acquired Assets
that this Agreement provides or contemplates are to be transferred to Buyer and that require the removal of a Legal Impediment or the receipt or delivery of a Consent for such transfer, which Legal Impediment is not removed or Consent is not
obtained or delivered on or prior to the Closing Date. 
  

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 “Delayed Assumed Liabilities” means any Assumed Liabilities that this Agreement
provides or contemplates are to be assumed by Buyer and that require the removal of a Legal Impediment or the receipt or delivery of a Consent for such assumption, which Legal Impediment is not removed or Consent is not obtained or delivered on or
prior to the Contribution Date. 
 “Disclosure Schedules” means the schedules to this Agreement delivered by Seller
to Buyer on the date hereof, as amended, supplemented or restated in accordance with this Agreement. 
 “Effective
Time” means 12:01 a.m. central prevailing time on the Closing Date. 
 “El Paso Terminal” means the
pipeline terminal located at 13551, Montana Ave., El Paso, Texas. 
 “Employee Benefit Plan” means any “employee
benefit plan” (as such term is defined in ERISA § 3(3)) and any other material employee benefit plan, program or arrangement of any kind maintained by Seller or its ERISA Affiliates for the benefit of Seller employees or otherwise
with respect to which Seller has any liability. 
 “Encumbrance” means any charge, claim, easement, deed of trust,
hypothecation, collateral assignment, mortgage, lien, option, pledge, security interest or other restriction of any kind. 
 “Environmental Laws” means all Laws and Orders on or prior to the Closing Date, and all common law relating to pollution or protection of the environment, including the federal Comprehensive
Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. Sec. 9601 et seq., as amended, the federal Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6901 et seq., as amended, the
regulations thereunder and similar state statutes and regulations. For the avoidance of doubt, the term Environmental Laws does not include the federal pipeline safety regulations (Title 49 CFR, Parts 190-199) and the related governing federal
statutes. 
 “Environmental Permits” means all environmental permits, authorizations, approvals,
registrations, and licenses relating exclusively to the Business issued by any Government (and pending applications for the foregoing). 
 “Environmental Reports” means any environmental report assessing compliance with any Environmental Laws, and any Phase I or II environmental site assessments, in each case which Seller has received from an
un-Affiliated third party within the last three years with respect to the Pipeline System or the Real Property; provided, Environmental Reports do not include any safety, health and environmental audit reports, or internal investigation
reports, prepared under the direction of Seller’s legal department and privileged under the attorney-client privilege, attorney work-product privilege, or state or federal environmental self-auditing privilege or policy. 
  

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 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 “ERISA Affiliate” means any entity treated as a single employer with Seller pursuant to Section 414 of the
Code. 
 “Escrow Agent” means Wells Fargo, N.A., the escrow agent under the Master Escrow Agreement and the Indemnity
Escrow Agreement. 
 “Existing Encumbrances” means: 
 (a) Encumbrances imposed by any Government for Taxes, assessments or charges not yet due or the validity of which is being contested in good faith and by
appropriate proceedings, if necessary, and for which adequate reserves are maintained on the books of the Seller; 
 (b) pledges or deposits
of cash or other security under worker’s compensation and automobile insurance policies, unemployment insurance and employee medical insurance or other social security legislation not to exceed for all such items in the aggregate $500,000;

 (c) carriers’, warehousemen’s, mechanics’, materialmen’s, landlord’s, statutory or like Encumbrances; 

(d) easements, rights-of-way, restrictions and similar encumbrances incurred in the ordinary course of the hazardous liquid pipeline transportation
industry and encumbrances consisting of zoning restrictions, easements, licenses, restrictions on the use of real property or minor imperfections in title thereto which do not in any case materially detract from the value of the property subject
thereto or interfere with the ordinary conduct of the business of the Seller; 
 (e) rights reserved to or vested in any Government by the
terms of any right, power, franchise, grant, license or permit, or by any provision of law, to revoke or terminate any such right, power, franchise, grant, license or permit or to condemn or acquire same by eminent domain or similar process;

 (f) rights reserved to or vested by law in any Government to, in any manner, control or regulate any of the assets used in the Business or
the use thereof or the rights and interests of the Seller therein, in any manner under any and all laws; 
 (g) rights reserved to the
grantors of any properties of the Seller, and the restrictions, conditions, restrictive covenants and limitations in respect thereto, pursuant to the terms, conditions and provisions of any right-of-way or easement agreements or contracts or other
agreements therewith or otherwise covering the Real Property which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of business of the Seller; 
 (h) Encumbrances or other rights of licensors or lessors under any Assigned Contract or Real Estate Easement that do not materially impair the operation
of the Pipeline System; 
  

 58 

 (i) Encumbrances granted by Seller or its Affiliates pursuant to the Merrill Lynch Agreements, its
debtor-in-possession financing and the Seller Note; 
 (j) Encumbrances that are being released from the Acquired Assets at Closing by
operation of the Sale Order or otherwise; and 
 (k) Encumbrances identified on Schedule 16.1(k). 
 “Existing Survey” means that certain plat of a survey provided by Seller to Buyer and covering all or part of the Real Property.

 “Federal Trade Commission Act” means the Federal Trade Commission Act (15 U.S.C. § 41 et seq.),
as amended, and the rules and regulations promulgated thereunder. 
 “FERC” means the Federal Energy Regulatory
Commission. 
 “Good and Defensible Title” means such title to the Real Property that (i) Seller can
successfully defend against a claim to the contrary made by a third party, based upon industry standards in the hazardous liquids pipeline transportation industry in the exercise of reasonable judgment and in good faith, (ii) is deducible of
record (or otherwise acceptable to a reasonably prudent title examiner, including rights acquired by prescription) and free from reasonable doubt (including without limitation liens, encumbrances, preferential purchase rights, rights of first
refusal, requirements for consents to assign and judgments) to the end that a prudent person engaged in the pipeline industry with knowledge of all the facts and appreciation of their legal significance would be willing to accept the same, and
(iii) will permit Buyer after the Closing Date to utilize the Real Property for their intended use of the operation of the pipeline system for the transportation of refined petroleum products. 
 “Government” means any agency, division, subdivision, audit group, procuring office or governmental or regulatory authority in
any event or any adjudicatory body thereof, of the United States, any state thereof or any foreign government. 
 “Hazardous Materials” means any hazardous or toxic substance or waste or any contaminant or pollutant regulated under Environmental Laws, including, but not limited to, “hazardous
substances” as currently defined by the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, “hazardous wastes” as currently defined by the Resource Conservation and Recovery Act, as
amended, and petroleum. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C.
§§ 15c-15h, 18a), as amended. 
 “Improvements” means the buildings, improvements and structures now
existing on the Real Property or demised under the Real Estate Leases, but only to the extent such buildings, improvements and structures constitute fixtures under applicable law. 
 “Indemnity Escrow Agreement” means that certain Indemnity Escrow Agreement, to be dated as of the Closing Date, by and among
Buyer, Seller and the Escrow Agent, in substantially the form of Exhibit E attached hereto and as amended, modified, supplemented and waived from time to time. 
  

 59 

 “Indemnity Escrow Funds” means the Initial Indemnity Escrow Amount, as reduced
for any distributions from the Indemnity Escrow Account and increased for any income earned on the Indemnity Escrow Account. 
 “Kinder Morgan Litigation” means the claims, cross-claims and counterclaims (and each defense related thereto) made on or prior to the date of this Agreement in respect of the litigation identified as such on
Schedule 4.6. 
 “Knowledge of Buyer,” or “Buyer’s Knowledge” or
any other similar term of knowledge qualification means the present actual knowledge of Jim Griffin, Randy Hermes, Brett Riley, or Mike Stackhouse. 
 “Knowledge of Seller,” “Seller’s Knowledge” or any other similar term or knowledge qualification means the present actual knowledge of Jeff Foote, Brett Bailey, Burk Reynolds or Orville
Harris. 
 “LCRA Settlement Agreement” means that certain Settlement Agreement between Lower Colorado River
Authority, the U.S. Department of Transportation, Environmental Protection Agency, Department of the Army, the United States, and Seller, dated May 14, 2001, as amended, modified, supplemented or waived from time to time. 
 “Legal Impediment” means a legal impediment preventing or restricting the transfer of an Acquired Asset or the assumption of an
Assumed Liability, as the case may be, as of the Closing Date. 
 “Lien” means any mortgage, pledge, charge, security
interest, encumbrance, lien (statutory or other) or conditional sale agreement. 
 “LPI” means Longhorn Pipeline,
Inc. 
 “Longhorn EA” means the Environmental Assessment of the Proposed Longhorn Pipeline System and associated
Finding of No Significant Impact issued by the U.S. Department of Transportation and the Environmental Protection Agency on November 3, 2000 (which includes Longhorn’s commitments under the Phase One Biological Assessment, the Phase One
Biological Opinion, the Phase Two Biological Assessment, the Longhorn Mitigation Plan, and the LCRA Settlement Agreement). 
 “Losses” means any damages, fines, judgments, costs, liabilities, loss or expenses (including reasonable attorneys’ fees). 
 “Main Line Fill” means the refined petroleum products owned by LPI and contained in the Pipeline System and storage tanks in El Paso and as more fully set forth in the Main Line Fill Purchase
Agreement. 
  

 60 

 “Master Escrow Agreement” means the escrow agreement by and between Flying J,
acting on behalf of Seller, and Wells Fargo, N.A., dated as of April 16, 2009. 
 “Material Adverse Effect”
means a change or effect on the physical condition of the Acquired Assets or the enforceability of any Assigned Contract that results in a material adverse effect on the operation of the Business; provided that none of the following changes
or effects, either alone or taken together with other changes or effects or whether arising directly or indirectly, shall be taken into account in determining whether there has been a Material Adverse Effect: (i) changes, or effects arising
from or relating to changes, of Laws, including those governing national, regional, state or local petroleum pipelines; (ii) changes arising from or relating to, or effects of, strikes, work stoppages or other labor disturbances;
(iii) changes arising from or relating to, or effects of, increases in costs of commodities or supplies; (iv) changes arising from or relating to, or effects of, weather or meteorological events, other than those having a direct physical
impact on the Pipeline System; (v) changes arising from or relating to, or effects of, the transactions contemplated by this Agreement or the announcement thereof or the taking of any action in accordance with this Agreement; (vi) changes,
or effects arising from or relating to changes, affecting the industries of which the Business is a part generally (including any change, or any effect arising from or relating to any change, (x) generally affecting the international, national
or regional or local petroleum industry or (y) generally affecting the international, national, regional or local wholesale or retail markets for refined petroleum products); (vii) changes, or effects arising from or relating to changes,
in economic, regulatory or political conditions generally; (viii) changes arising from or relating to, or effects of, the Chapter 11 Case, any motion, application, pleading or Order filed under or in connection with, the Chapter 11 Case;
(ix) any motion, application, pleading or Order filed by any Government applicable to refined petroleum products generally; (x) changes, or effects arising from or relating to changes, in financial, banking, or securities markets
(including (w) any disruption of any of the foregoing markets, (x) any change in currency exchange rates, (y) any decline in the price of any security or any market index and (z) any increased cost of capital or pricing related
to any financing); (xi) changes arising from or relating to, or effects of, any existing event, occurrence, or circumstance with respect to which Buyer has knowledge as of the date hereof (including any matter set forth in the Disclosure
Schedules); (xii) changes arising from or relating to, or effects of, any seasonal fluctuations in the business; (xiii) any failure, in and of itself, to achieve any projections, forecasts, estimates, performance metrics or operating
statistics (whether or not shared with Buyer or its Affiliates); (xiv) changes arising from or relating to, or effects of, any act(s) of war or of terrorism or (xv) any actions or failures to act by the Operator in its role as operator of
the Pipeline System. 
 “Merrill Lynch Agreements” means that certain Revolving Credit Agreement, dated as of
December 19, 2007, by and between LPI and Merrill Lynch Capital Corporation, as amended, modified, supplemented or waived from time to time, and the various security agreements, collateral agreements, guarantees and other documents and
agreements executed in connection therewith. 
 “Mitigation Commitments” has the meaning set forth in the Mitigation
Plan. 
 “Mitigation Plan” means The Longhorn Mitigation Plan (Revised), dated September 11, 2000, as
supplemented by the First Supplement to the Longhorn Mitigation Plan, by the Second 

  

 61 

 
Supplement to the Longhorn Mitigation Plan, and by that certain Settlement Agreement between Seller and Lower Colorado River Authority dated May 14,
2001 (Matter A 98 CA 255 SS in the United States District Court for the Western District of Texas, Austin Division). 
 “Multiemployer Plan” has the meaning set forth in ERISA § 3(37). 
 “Operator” means Magellan Pipeline Company, L.P. 
 “O&M Agreement” means the
First Amended and Restated Pipeline Operating Services Agreement, dated as of Jan 31, 2004, between Seller and Williams Petroleum Services, LLC, as amended. 
 “O&M Surviving Claims” means Claims of Operator for (i) unpaid amounts owed by Seller to Operator under Section 7.1.2 of the O&M Agreement for periods prior to
December 22, 2008, and (ii) amounts owed and paid by Operator to third parties for claims by such third parties against Operator, in its capacity as such, which Operator is obligated to pay for services provided with respect to the
Pipeline System prior to December 22, 2008 and with respect to which Seller is obligated to reimburse or pay the Operator in accordance with the O&M Agreement. 
 “Ordinary Course of Business” means, with respect to the operation by Seller of the Business, the operation thereof consistent with prior practices with respect to the operation thereof and
prudent health, safety and environmental practices, and taking into account the status and quality of the Pipeline System and requirements of applicable regulation, including but not limited to the Longhorn EA. 
 “Party” or “Parties” means each of Seller and Buyer or collectively, Seller and Buyer, respectively.

 “Permits” means all permits, authorizations, approvals, registrations, and licenses relating exclusively to the
operation of the Business issued by any Government (and pending applications for the foregoing), other than the Crossing Permits. 
 “Permitted Encumbrances” means the following Encumbrances, but in each case only to the extent not released by operation of the Bankruptcy Code (including Sections 105 and 363(f)) or by order of the Bankruptcy Court
upon Closing and after entry of the Sale Order: 
 (a) Encumbrances imposed by any Government for Taxes, assessments or charges not yet due;

 (b) easements, rights-of-way, restrictions and similar encumbrances incurred in the ordinary course of the hazardous liquid pipeline
transportation industry and encumbrances consisting of zoning restrictions, easements, licenses, restrictions on the use of real property or minor imperfections in title thereto which do not in any case materially detract from the value of the
property subject thereto or interfere with the ordinary conduct of the Business; 
 (c) rights reserved to or vested in any Government by the
terms of any right, power, franchise, grant, license or permit, or by any provision of law, to revoke or terminate any such right, power, franchise, grant, license or permit or to condemn or acquire same by eminent domain or similar process;

  

 62 

 (d) rights reserved to or vested by law in any Government to, in any manner, control or regulate any of
the assets used in the Business or the use thereof or the rights and interests of the Seller therein, in any manner under any and all laws; and 
 (e) rights reserved to the grantors of any Acquired Assets, and the restrictions, conditions, restrictive covenants and limitations in respect thereto, pursuant to the terms, conditions and provisions of any Assigned Contract or Real
Property Easement which do not in any case materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the Business. 
 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or Government. 
 “Pipeline System” means the refined products pipeline that runs from Galena Park, Texas to El Paso, Texas, and from Crane, Texas
to Odessa, Texas, as well as pipeline segments outbound from Seller’s El Paso terminal which connect to other pipeline systems or otherwise service such outbound pipelines, which refined products pipeline system is generally depicted on
Schedule 16 attached hereto and is described by segment as follows: 
  

							
	Galena Park to Satsuma:	  	20 inch diameter, 34 miles	  		  	
				
	Satsuma to El Paso	  	18 inch diameter, 660 miles	  		  	
			
	El Paso to Junction	  	8 inch diameter, 3 pipelines, 27 miles	  	
			
	El Paso to Junction	  	12 inch diameter, 9 miles, and	  	
				
	Crane to Odessa	  	8 inch diameter, 29 miles.	  		  	

 The term Pipeline System also includes Seller’s pump stations and terminal facilities, but excludes any land
rights associated with such pump stations and terminal facilities that are not assumed by or conveyed to Buyer. 
 “Pollution
Policies Financing Agreement” means that certain Commercial Premium Financing Agreement, dated as of September 29, 2008, by and between Seller and AFCO Credit Corporation. 
 “Purchase Notice” means Exhibit A of the Master Escrow Agreement, as executed and delivered by Buyer and Flying J. 
 “Purchase Price” means $250,000,000.00. 
 “Related Person” means, with respect to any Person, all past, present and future directors, officers, members, managers, stockholders, employees, controlling persons, agents, professionals,
financial advisors, restructuring advisors, attorneys, accountants, investment bankers, Affiliates or representatives of (i) any such Person or (ii) any Affiliate of such Person. 
  

 63 

 “Retained Books and Records” means (a) all corporate seals, minute books,
charter documents, corporate stock record books, original Tax and financial records and such other files, books and records to the extent they relate to any of the Excluded Assets or Excluded Liabilities or the organization, existence,
capitalization or debt financing of Seller or of any Affiliate of Seller, (b) all books, files and records that would otherwise constitute a Business Record but for the fact that disclosure of books, files or records could (i) violate any
legal constraints or obligations regarding the confidentiality thereof, (ii) waive any attorney client, work product or other legal privilege, (iii) disclose information about Seller or any of its Affiliates that is unrelated to the
Pipeline System or the Business or (iv) disclose information about Seller or any of its Affiliates pertaining to project evaluation, price curves or projections or other economic predictive models, and (c) all books and records prepared in
connection with or relating in any way to the transactions contemplated by this Agreement, including bids received from other parties and analyses relating in any way to the Acquired Assets and the Assumed Liabilities. 
 “Rule” or “Rules” means the Federal Rules of Bankruptcy Procedure. 
 “SCADA” means Supervisory Control and Data Acquisition. 
 “Seller Cure Cost Obligations” means the sum of (i) 50% of the Shared Cure Cost Obligations plus (ii) if (and then only
to the extent that) the aggregate cure costs required to be paid pursuant to Section 365 of the Bankruptcy Code in connection with the assumption and assignment of the Assigned Contracts that are not Shared Cure Cost Contracts exceeds the
excess of $3,500,000 minus 50% of the Shared Cure Cost Obligations, such additional cure costs that are required to be paid pursuant to Section 365 of the Bankruptcy Code in connection with the assumption and assignment of the Assigned
Contracts that are not Shared Cure Cost Contracts. 
 “Seller Note” means the promissory note give by LPI to Longhorn
Pipeline Investors, LLC as part of the consideration for the sale of interests in Seller and its Affiliates to LPI. 
 “Seller
Percentage” means 100% minus the Buyer Percentage. 
 “Shared Cure Cost Contracts” means those Contracts
listed on Schedule 1.1(f) to this Agreement that are denoted with an asterisk. 
 “Shared Cure Cost
Obligations” means cure costs that are required to be paid pursuant to Section 365 of the Bankruptcy Code in connection with the assumption and assignment of the Shared Cure Cost Contracts. 
 “Sherman Act” means title 15 of the United States Code §§ 1-7, as amended. 
 “Spur Line Fill” means the line fill owned by Flying J that is contained in the segment of the line from Crane Station to Odessa,
Texas. 
 “Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company,
association or other business entity of which (a) if a corporation, a majority of 

  

 64 

 
the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (b) if a partnership, limited liability company, association or
other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For
purposes hereof, a Person or Persons is deemed to have a majority ownership interest in a partnership, limited liability company, association or other business entity if such Person or Persons is allocated a majority of partnership, limited
liability company, association or other business entity gains or losses or is or controls the managing director or general partner of such partnership, limited liability company, association or other business entity. 
 “Supplemental Facility” means a credit or other debt facility entered into by Buyer after the date hereof (a) of which true
and correct copies are delivered to Seller upon delivery of the Funds Certification Notice, together with all exhibits, schedules, annexes and amendments to such agreement in effect as of the date of the Funds Certification Notice, (b) with
respect to which Buyer represents and warrants to Seller in the Funds Certification Notice that (i) Buyer has delivered true and complete copies thereof, including all exhibits, schedules, annexes and amendments thereto as of the Funds
Certification Notice, (ii) the respective obligations contained therein have not been withdrawn, modified or rescinded in any respect prior to the date of the Funds Certification Notice, (iii) such facility is in full force and effect and
constitutes the legal, valid and binding obligation of each of the parties thereto, (iv) no consents, approvals or waivers of any lenders or other Person a party thereto needs to be obtained in order for Buyer to obtain funds thereunder,
(v) there are no conditions precedent to the funding of any borrowings under thereunder that will delay, frustrate or impede the Closing, (vi) all fees required to be paid thereunder have been paid by Buyer, (vii) which has a maturity
date at least 181 days after the Termination Date, and (viii) the available borrowings thereunder, when taken together with other financial resources of Buyer (including available borrowings under the Credit Facility and cash on hand and
marketable securities of Buyer) on the Closing Date, will, in the aggregate, be sufficient for the timely satisfaction of Buyer’s obligations under this Agreement and the Ancillary Agreement, and (c) with respect to which Buyer covenants
and agrees for the benefit of Seller, not to amend, modify or waive prior to the Closing Date in a manner that is reasonably likely to delay, impede or frustrate the Closing. 
 “Tanner Litigation” means the claims, cross-claims and counterclaims (and each defense related thereto) made on or prior to the
date of this Agreement in respect of the litigation identified as such on Schedule 4.6. 
 “Tax Return” means
any report, return, information return, filing or other information, including any schedules, exhibits or attachments thereto, and any amendments to any of the foregoing required to be filed or maintained in connection with the calculation,
determination, assessment or collection of any Taxes (including estimated Taxes). 
 “Taxes” means all taxes, however
denominated, including any interest, penalties or additions to tax that may become payable in respect thereof, imposed by any Government, which taxes include all income taxes, Transaction Taxes, payroll and employee withholding, 

  

 65 

 
unemployment insurance, social security (or similar), sales and use, excise, franchise, gross receipts, occupation, real and personal property, stamp,
transfer, workmen’s compensation, customs duties, registration, documentary, value added, alternative or add-on minimum, estimated, environmental (including taxes under Section 59A of the Code) and other obligations of the same or a
similar nature, whether arising before, on or after the Closing Date. 
 “Third-Party Batch Measurement Time” means
7:00 a.m. central prevailing time on the second day prior to the Closing Date. 
 “Valero Litigation” means the
claims, cross-claims and counterclaims (and each defense related thereto) made on or prior to the date of this Agreement in respect of the litigation identified as such on Schedule 4.6. 
 “WARN Act” means the Worker Adjustment Retraining and Notification Act of 1988, as amended. 
  

 66 

 16.2. All Terms Cross-Referenced. Each of the following terms is defined in the section set forth
opposite such term: 
  

			
	 Term
	  	Section
		
	 Acquired Assets
	  	1.1
		
	 Additional Asset Conveyance Documents
	  	3.2(a)(xi)
		
	 Additional Liabilities Assumption Documents
	  	3.2(a)(xii)
		
	 Affiliate
	  	16.1
		
	 Agreement
	  	Preamble
		
	 Allocation Schedule
	  	11.3
		
	 Alternative Arrangements
	  	14.2(d)
		
	 Alternative Transaction
	  	16.1
		
	 Ancillary Agreement
	  	16.1
		
	 Antitrust Approval
	  	10.2
		
	 Antitrust Law
	  	10.2
		
	 Assigned Contracts
	  	1.1(g)
		
	 Assumed Liabilities
	  	1.3
		
	 Auction
	  	16.1
		
	 Back-up Bidder
	  	16.1
		
	 Bankruptcy Code
	  	16.1
		
	 Bankruptcy Court
	  	16.1
		
	 Bidding Procedures
	  	8.2
		
	 Bidding Procedures Order
	  	8.1
		
	 Break-Up Fee
	  	16.1
		
	 Business
	  	16.1
		
	 Business Day
	  	16.1
		
	 Business Records
	  	16.1
		
	 Buyer
	  	Preamble
		
	 Buyer Cure Cost Obligations
	  	16.1
		
	 Buyer Indemnitees
	  	14.1(a)
		
	 Buyer Percentage
	  	16.1
		
	 Buyer Regulatory Termination Date
	  	(ii)
		
	 Buyer’s Knowledge
	  	16.1
		
	 Cap
	  	14.2(c)

  

 67 

			
	 Chapter 11 Case
	  	16.1
		
	 Claim Notice
	  	14.4(a)
		
	 Claims
	  	16.1
		
	 Clayton Act
	  	16.1
		
	 Closing
	  	3.1
		
	 Closing Date
	  	3.1
		
	 Code
	  	16.1
		
	 Collected Tariff Amount
	  	11.4(f)
		
	 Confidentiality Agreement
	  	6.3
		
	 Connection Agreement
	  	16.1
		
	 Consent
	  	16.1
		
	 Contract
	  	16.1
		
	 Contribution Agreement
	  	16.1
		
	 Crane Station
	  	16.1
		
	 Credit Facility
	  	5.5
		
	 Crossing Permits
	  	4.12(b)
		
	 Customer Contracts
	  	1.1(e)
		
	 De Minimis Loss
	  	14.2(a)
		
	 Deductible
	  	14.2(b)
		
	 Deferred Fee Amount
	  	7.11(a)
		
	 Delayed Acquired Assets
	  	16.1
		
	 Delayed Assumed Liabilities
	  	16.1
		
	 Deposit
	  	2.2
		
	 Disclosure Schedules
	  	16.1
		
	 Effective Time
	  	16.1
		
	 El Paso Terminal
	  	16.1
		
	 Employee Benefit Plan
	  	16.1
		
	 Encumbrance
	  	16.1
		
	 Environmental Laws
	  	16.1
		
	 Environmental Permits
	  	16.1
		
	 Environmental Reports
	  	16.1
		
	 Equipment
	  	1.1(d)
		
	 ERISA
	  	16.1
		
	 ERISA Affiliate
	  	16.1

  

 68 

			
	 Escrow Agent
	  	16.1
		
	 Estimated Proration Amount
	  	11.4(h)
		
	 Excluded Assets
	  	1.2
		
	 Excluded Liabilities
	  	1.4
		
	 Existing Survey
	  	16.1
		
	 FCN Deadline Date
	  	7.10(b)
		
	 Federal Trade Commission Act
	  	16.1
		
	 FERC
	  	16.1
		
	 Final Claim Amount
	  	14.5(b)
		
	 Final Termination Date
	  	13.2(a)(ii)
		
	 Financing
	  	5.5
		
	 First Release Date
	  	14.5(a)
		
	 Flying J
	  	Preamble
		
	 Flying J Marks
	  	1.2(o)
		
	 Funds Certification Notice
	  	7.10(b)
		
	 Good and Defensible Title
	  	16.1
		
	 Government
	  	16.1
		
	 Government Contracts
	  	1.1(g)
		
	 Hazardous Materials
	  	16.1
		
	 Houston Office Site
	  	3.2(a)(v)
		
	 HSR Act
	  	16.1
		
	 Improvements
	  	16.1
		
	 Indemnifying Party
	  	14.2(a)
		
	 Indemnitees
	  	14.1(b)
		
	 Indemnity Escrow Account
	  	3.3(a)
		
	 Indemnity Escrow Agreement
	  	16.1
		
	 Indemnity Escrow Funds
	  	16.1
		
	 Initial Indemnity Escrow Fund
	  	3.3(a)
		
	 Interim Claim Amount
	  	14.5(a)
		
	 Inventory
	  	1.1(h)
		
	 Kinder Morgan Litigation
	  	16.1
		
	 KM Pre-Effective Time Deficiency Obligations
	  	1.4
		
	 Knowledge of Buyer
	  	16.1
		
	 Knowledge of Seller
	  	16.1

  

 69 

			
	 Law
	  	4.3
		
	 LCRA Settlement Agreement
	  	16.1
		
	 Leased Real Property
	  	1.1(b)
		
	 Legal Impediment
	  	16.1
		
	 Lien
	  	16.1
		
	 Line Fill Termination Notice
	  	7.10(b)
		
	 Longhorn EA
	  	16.1
		
	 Losses
	  	16.1
		
	 LPI
	  	16.1. 10
		
	 Main Line Fill
	  	16.1
		
	 Master Escrow Agreement
	  	16.1
		
	 Material Adverse Effect
	  	16.1
		
	 Material Contracts
	  	4.7(a)(ii)
		
	 Merrill Lynch Agreement
	  	16.1
		
	 Mitigation Commitments
	  	16.1
		
	 Mitigation Plan
	  	16.1
		
	 Multiemployer Plan
	  	16.1
		
	 O&M Agreement
	  	16.1
		
	 O&M Surviving Claims
	  	16.1
		
	 O&M Surviving Provisions
	  	7.11(b)
		
	 Operator
	  	16.1
		
	 Order
	  	4.3
		
	 Ordinary Course of Business
	  	16.1
		
	 Organizational Documents
	  	4.3
		
	 Other Contracts
	  	1.1(g)
		
	 Owned Real Property
	  	1.1(a)
		
	 Parties
	  	16.1
		
	 Party
	  	16.1
		
	 Permits
	  	16.1
		
	 Permitted Encumbrances
	  	16.1. 16.1
		
	 Person
	  	16.1
		
	 Pipeline System
	  	16.1
		
	 Pollution Policies
	  	1.1(y)
		
	 Pollution Policies Financing Agreement
	  	16.1

  

 70 

			
	 Prorations
	  	11.4
		
	 Purchase Notice
	  	16.1
		
	 Purchase Price
	  	16.1
		
	 Real Property
	  	1.1(c)
		
	 Real Property Easements
	  	1.1(c)
		
	 Real Property Leases
	  	1.1(b)
		
	 Real Property Licenses
	  	1.1(b)
		
	 Related Person
	  	16.1
		
	 Retained Books and Records
	  	16.1
		
	 Rule
	  	16.1
		
	 Rules
	  	16.1
		
	 Sale Order
	  	8.1
		
	 SCADA
	  	16.1
		
	 Second Release Date
	  	14.5(b)
		
	 Seller
	  	Preamble
		
	 Seller Cure Cost Obligations
	  	16.1
		
	 Seller Indemnitees
	  	14.1(b)
		
	 Seller Note
	  	16.1
		
	 Seller Note Holder
	  	7.8(c)
		
	 Seller Percentage
	  	16.1
		
	 Seller’s Account
	  	3.3(a)
		
	 Seller’s Knowledge
	  	16.1
		
	 Shared Cure Cost Contracts
	  	16.1
		
	 Shared Cure Cost Obligations
	  	16.1
		
	 Sherman Act
	  	16.1
		
	 Spur Line Fill
	  	16.1
		
	 Subsidiary
	  	16.1
		
	 Supplemental Facility
	  	16.1
		
	 Supplier Contracts
	  	1.1(f)
		
	 Support Obligations
	  	7.5(a)
		
	 Tanner Litigation
	  	16.1
		
	 Tax Return
	  	16.1
		
	 Taxes
	  	16.1
		
	 Termination Order
	  	13.2(a)(iv)

  

 71 

			
	 Third Party Claim
	  	14.4(a)
		
	 Third-Party Batch
	  	11.4(f)
		
	 Third-Party Batch Measurement Time
	  	16.1
		
	 Transaction Taxes
	  	11.1
		
	 Valero Litigation
	  	16.1
		
	 WARN Act
	  	16.1

 (Signatures are on the following page.) 
  

 72 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized as of the date first above written. 
  

			
	MAGELLAN MIDSTREAM PARTNERS, L.P.
		
	By:	 	Magellan GP, LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Brett C. Riley

	Name:	 	Brett C. Riley
	Title:	 	Senior Vice President

  

			
	LONGHORN PARTNERS PIPELINE, L.P.
		
	By:	 	Longhorn Partners GP, L.L.C.,
	Its:	 	General Partner
		
	By:	 	 /s/ Jeffrey O. Foote

	Name:	 	Jeffery O. Foote
	Title:	 	President

  

			
	For purposes of Section 7.11
	
	MAGELLAN PIPELINE COMPANY, L.P.
		
	By:	 	Magellan Pipeline GP, LLC
	Its:	 	General Partner
		
	By:	 	 /s/ Brett C. Riley

	Name:	 	Brett C. Riley
	Title:	 	Senior Vice President

 SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT

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