Document:

stockoptionagreement5101

                                                                                                                  FORM OF              NON-QUALIFED STOCK OPTION AGREEMENT       UNDER THE BOSTON PRIVATE FINANCIAL HOLDINGS, INC.                         AMENDED AND RESTATED                2009 STOCK OPTION AND INCENTIVE PLAN     Name of Optionee:                                                    No. of Option Shares:                                                Option Exercise Price Per Share: _______________________________________   Grant Date:                                                          Expiration Date:                                                           Pursuant to the Boston Private Financial Holdings, Inc. Amended and Restated 2009  Stock Option and Incentive Plan as amended through the date hereof (the “Plan”), Boston Private  Financial Holdings, Inc. (the “Company”) hereby grants to the Optionee named above an option  (the “Stock Option”) to purchase on or prior to the Expiration Date specified above all or part of  the number of Option Shares of Common Stock, par value $1.00 per share (the “Stock”), of the  Company at the Option Exercise Price Per Share specified above, subject to the terms and  conditions set forth herein and in the Plan. This Stock Option is not intended to be an “incentive  stock option” under Section 422 of the Internal Revenue Code of 1986, as amended.         By accepting this Stock Option, the Optionee confirms the Optionee’s agreement to all  of the terms and conditions of any agreement between the Optionee and the Company or any  of its subsidiaries that addresses confidentiality obligations and/or post-employment  restrictions on solicitation of employees and customers or clients.  If the Optionee is not a  party to any such agreement, by accepting this Stock Option, the Optionee agrees to the terms  and conditions of the Non-Solicitation and Confidentiality Agreement attached as Exhibit I,  hereto (the “Non-Solicitation Agreement”).  The Non-Solicitation Agreement addresses  confidentiality of Company information, post-employment restrictions on solicitation of  employees and customers or clients and other similar matters and should be reviewed carefully  by the Optionee.  If this Stock Option is not so accepted within 60 days of the Grant Date, the  Optionee shall forfeit the Stock Option in its entirety (regardless of whether vested or  unvested).         1.    Restrictions on Transfer of Award.  This Stock Option may not be sold,  transferred, pledged, assigned or otherwise encumbered or disposed of by the Optionee. This  Stock Option is exercisable, during the Optionee’s lifetime, only by the Optionee, and thereafter,  only by the Optionee’s legal representative or legatee.          2.    Exercisability Schedule.  The Optionee shall have no rights to this Stock Option  unless he or she shall have accepted the Stock Option electronically through the Company’s  

 

Stock Plan Administration System.  No portion of this Stock Option may be exercised until such  portion shall have become exercisable. Except as set forth below, and subject to the discretion of  the Administrator (as defined in Section 2 of the Plan) to accelerate the exercisability schedule  hereunder, this Stock Option shall be exercisable with respect to the following number of Option  Shares on the dates indicated, so long as the Optionee remains an employee of the Company or  any of its subsidiaries through each such date:   Incremental Number of Option Shares      Exercisability Date  Exercisable                                                                                                                                                                    3.    Manner of Exercise.                 (a)   The Optionee may exercise this Stock Option only in the following  manner: from time to time on or prior to the Expiration Date of this Stock Option, the Optionee  may give written or electronic notice to the Administrator through the Company’s Stock Plan  Administration System of his or her election to purchase some or all of the Option Shares  purchasable at the time of such notice and specifying the number of Option Shares to be  purchased.               Payment of the purchase price for the Option Shares may be made by one or more  of the following methods: (i) in cash, by certified or bank check or other instrument acceptable to  the Administrator; (ii) through the delivery (or attestation to the ownership) of shares of Stock  that have been purchased by the Optionee on the open market or that are beneficially owned by  the Optionee and are not then subject to any restrictions under any Company plan and that  otherwise satisfy any holding periods as may be required by the Administrator; (iii) by the  Optionee delivering to the Company a properly executed exercise notice together with  irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable  and acceptable to the Company to pay the option purchase price, provided that in the event the  Optionee chooses to pay the option purchase price as so provided, the Optionee and the broker  shall comply with such procedures and enter into such agreements of indemnity and other  agreements as the Administrator shall prescribe as a condition of such payment procedure; (iv)  by a “net exercise” arrangement pursuant to which the Company will reduce the number of  shares of Stock issuable upon exercise by the largest whole number of shares with a Fair Market  Value that does not exceed the aggregate exercise price, or (v) a combination of (i), (ii), (iii) and  (iv) above. Payment instruments will be received subject to collection. In addition, to the extent  that (1) this Option remains outstanding and has not been exercised by the Optionee as of the  Expiration Date and (2) the Fair Market Value of the Stock exceeds the exercise price of the  Option by at least one percent on such date, then this Option shall automatically be exercised on  the Expiration Date (without any action required on the part of the Optionee) pursuant to the “net  exercise” arrangement described in (iv), above.  

 

            The transfer to the Optionee on the records of the Company or of the transfer  agent of the Option Shares will be contingent upon (x) the Company’s receipt from the Optionee  of the full purchase price for the Option Shares, as set forth above, (y) the fulfillment of any  other requirements contained herein or in the Plan or in any other agreement or provision of  laws, and (z) the receipt by the Company of any agreement, statement or other evidence that the  Company may require to satisfy itself that the issuance of Stock to be purchased pursuant to the  exercise of Stock Options under the Plan and any subsequent resale of the shares of Stock will be  in compliance with applicable laws and regulations. In the event the Optionee chooses to pay the  purchase price by previously-owned shares of Stock through the attestation method, the number  of shares of Stock transferred to the Optionee upon the exercise of the Stock Option shall be net  of the Shares attested to.               (b)   The shares of Stock purchased upon exercise of this Stock Option shall be  transferred to the Optionee on the records of the Company or of the transfer agent upon  compliance to the satisfaction of the Administrator with all requirements under applicable laws  or regulations in connection with such issuance and with the requirements hereof and of the Plan.  The determination of the Administrator as to such compliance shall be final and binding on the  Optionee. The Optionee shall not be deemed to be the holder of, or to have any of the rights of a  holder with respect to, any shares of Stock subject to this Stock Option unless and until this  Stock Option shall have been exercised pursuant to the terms hereof, the Company or the transfer  agent shall have transferred the shares to the Optionee, and the Optionee’s name shall have been  entered as the stockholder of record on the books of the Company. Thereupon, the Optionee shall  have full voting, dividend and other ownership rights with respect to such shares of Stock.               (c)   Notwithstanding any other provision hereof or of the Plan, no portion of  this Stock Option shall be exercisable after the Expiration Date hereof.         4.    Termination of Employment.  If the Optionee’s employment with the Company or  any subsidiary (as defined in the Plan) is terminated, the period within which to exercise the  Stock Option may be subject to earlier termination as set forth below:               (a)   Termination for Cause. If the Optionee’s employment terminates for  Cause (as defined below), any portion of this Stock Option outstanding on such date, whether  vested or unvested, shall terminate immediately and be of no further force and effect. For  purposes hereof, “Cause” means a termination of  Optionee’s employment as a result of (i)  conviction of the Optionee of, or plea of guilty or nolo contendere by the Optionee to, a felony,  or (ii) dishonest acts against the Company or any of its subsidiaries, or (iii) misconduct which is  likely to cause financial loss to the Company or any of its subsidiaries or to cause damage to the  business reputation of the Company or any of its subsidiaries, or (iv) willful or repeated  misconduct or gross neglect constituting bad faith in performing the Optionee’s duties with the  Company, or (v) breach of fiduciary duty involving personal profit to the Optionee. For purposes  of clause (iv), no act, or failure to act, on the Optionee’s part shall be deemed “willful” unless  done, or omitted to be done, by the Optionee without reasonable belief that the Optionee’s act, or  failure to act, was in the best interest of the Company and any of its subsidiaries. In the event the  Optionee is a party to an employment agreement with the Company or any subsidiary that  contains a different definition of “cause,” the definition set forth in such other agreement shall be  applicable to the Optionee for purposes of this Agreement and not this definition.  

 

            (b)   Termination Due to Death. If the Optionee’s employment terminates by  reason of the Optionee's death, any portion of this Stock Option outstanding on such date shall  become fully exercisable and may thereafter be exercised by the Optionee’s legal representative  or legatee for a period of 12 months from the date of the Optionee’s death or until the Expiration  Date, if earlier.               (c)   Termination by Reason of Retirement. If the Optionee's employment  terminates by reason of the Optionee’s Retirement (as defined in Section 1 of the Plan), any  portion of this Stock Option outstanding on such date shall become fully exercisable and may  thereafter be exercised by the Optionee for a period of 24 months from the date of termination or  until the Expiration Date, if earlier.               (d)   Termination Due to Disability. If the Optionee's employment terminates  by reason of the Optionee’s disability (as determined by the Administrator), any portion of this  Stock Option outstanding on such date shall become fully exercisable and may thereafter be  exercised by the Optionee for a period of 12 months from the date of termination or until the  Expiration Date, if earlier.               (e)   Other Termination. If the Optionee’s employment terminates for any  reason other than the Optionee’s death, the Optionee’s disability, the Optionee’s retirement or for  Cause, and unless otherwise determined by the Administrator, any portion of this Stock Option  outstanding on such date may be exercised, to the extent exercisable on the date of termination,  for a period of three months from the date of termination or until the Expiration Date, if earlier.  Any portion of this Stock Option that is not exercisable on the date of termination shall terminate  immediately and be of no further force or effect. Notwithstanding the foregoing, in the event of  termination of the Optionee's service as an employee of the Company or a subsidiary by the  Company or such subsidiary without Cause, any portion of this Stock Option outstanding on  such date shall become fully exercisable and may thereafter be exercised by the Optionee for a  period from the date of termination until 3 months from the last exercisability date or until the  Expiration Date, if earlier.          The Administrator’s determination of the reason for the termination of the Optionee’s  employment shall be conclusive and binding on the Optionee and his or her representatives or  legatees.         5.    Change of Control.  Notwithstanding the provisions of Paragraph 4 above, or the  provisions of any agreement between the Optionee and Company or any subsidiary that is in  effect as of the date hereof, in the event of a Change of Control or Sale Event (i) if, in connection  with such Change of Control or Sale Event, this Stock Option is not assumed or continued by the  successor entity in such Change of Control or Sale Event or substituted with a new award of such  successor (in accordance with the Plan), this Stock Option shall automatically become  immediately exercisable in full, whether or not exercisable at such time, subject to the provisions  of the Plan, as of the effective time of such Change of Control or Sale Event, and may thereafter  be exercised by the Optionee for a period of 24 months from the date of the Change of Control or  Sale Event or until the Expiration Date, if earlier and (ii) if this Stock Option is assumed or  continued by the successor entity in such Change of Control or Sale Event or substituted with a  new award of such successor subject to the provisions of the Plan, the Stock Option shall become  

 

exercisable in accordance with Paragraphs 2 and 4 of this Agreement (as applicable), subject, in  each case, to the terms of the Plan.         6.    Incorporation of Plan.  Notwithstanding anything herein to the contrary, this  Agreement shall be subject to and governed by all the terms and conditions of the Plan, including  the powers of the Administrator set forth in Section 2(b) of the Plan.  Capitalized terms in this  Agreement shall have the meaning specified in the Plan, unless a different meaning is specified  herein.         7.    Tax Withholding.   The Optionee shall, not later than the date as of which the  exercise of this Stock Option becomes a taxable event for Federal income tax purposes, pay to  the Company or make arrangements satisfactory to the Administrator for payment of any  Federal, state, and local taxes required by law to be withheld on account of such taxable event.  The Optionee may elect to have, and the Company shall have the authority to cause, the required  minimum tax withholding obligation satisfied, in whole or in part, by authorizing the Company  to withhold from shares of Stock to be issued a number of shares of Stock with an aggregate Fair  Market Value that would satisfy the withholding amount due. In connection with any automatic  “net exercise” of all or any portion of this Option on the Expiration Date, the Company shall also  withhold from shares of Stock to be issued a number of shares of Stock with an aggregate Fair  Market Value that would satisfy the withholding amount due.         8.    No Obligation to Continue Employment.  Neither the Company nor any  subsidiary is obligated by or as a result of the Plan or this Agreement to continue the Optionee in  employment and neither the Plan nor this Agreement shall interfere in any way with the right of  the Company or any subsidiary to terminate the employment of the Optionee at any time.         9.    Clawback.  If the Company or its subsidiaries terminate the Optionee’s service  relationship due to the Optionee’s gross negligence or willful misconduct (whether or not such  actions also constitute Cause hereunder), which conduct, directly or indirectly results in the  Company preparing an accounting restatement, and/or if the Optionee breaches any provision of  the Non-Solicitation Agreement (or, if applicable, such other agreement referenced in Paragraph  1 above), this entire Stock Option, whether or not vested, as well as any Option Shares issued  upon exercise of this Stock Option (and any gains thereon) shall be subject to forfeiture, recovery  and “clawback.”         10.   Data Privacy Consent.  In order to administer the Plan and this Agreement and to  implement or structure future equity grants, the Company, its subsidiaries and affiliates and  certain agents thereof (together, the “Relevant Companies”) may process any and all personal or  professional data, including but not limited to Social Security or other identification number,  home address and telephone number, date of birth and other information that is necessary or  desirable for the administration of the Plan and/or this Agreement (the “Relevant Information”).   By entering into this Agreement, the Optionee (i) authorizes the Company to collect, process,  register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy  rights the Optionee may have with respect to the Relevant Information; (iii) authorizes the  Relevant Companies to store and transmit such information in electronic form; and (iv)  authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant  Companies consider appropriate.  The Optionee shall have access to, and the right to change, the  

 

Relevant Information.  Relevant Information will only be used in accordance with applicable  law.         11.   Notices.  Notices hereunder shall be mailed or delivered to the Company at its  principal place of business and shall be mailed or delivered to the Optionee at the address on file  with the Company or, in either case, at such other address as one party may subsequently furnish  to the other party in writing.                                          BOSTON PRIVATE FINANCIAL                                         HOLDINGS, INC.                                           By:                                                                                Title:     The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed  to by the undersigned.  Electronic acceptance of this Agreement pursuant to the Company’s  instructions to the Optionee (including through an online acceptance process) is acceptable.    Dated:                                                                                                                 Optionee’s Signature                                            Optionee’s name and address:                                                                                                                                                                                                                                                        

 

                   EXHIBIT I (A):  NON-SOLICITATION AND        CONFIDENTIALITY AGREEMENT FOR NON-CALIFORNIA RESIDENTS           I acknowledge that I enter into this Non-Solicitation and Confidentiality Agreement (the  “Agreement”) in connection with an award of restricted stock, restricted stock units or a grant of  a stock option (together, an “Award”) that is made on or about the date of the proposal of this  Agreement, pursuant to the Boston Private Financial Holdings, Inc. Amended and Restated 2009  Stock Option and Incentive Plan or any subsequent stock option and/or restricted stock plan of  Boston Private Financial Holdings, Inc. (together, the “Plan”) and that I shall forfeit the Award  (whether vested or unvested) if I do not execute this Non-Solicitation and Confidentiality  Agreement (the “Agreement”) within 60 days of the grant date of the Award.          For purposes of this Agreement, the “Company” refers to Boston Private Financial  Holdings, Inc. (“BPFH”) and any and all of its wholly or partially owned subsidiaries.             In consideration for my eligibility for any Award, I hereby agree as follows:             1.    Confidential Information.  During my employment with the Company and at all  times thereafter, I shall keep secret and retain in strictest confidence, and shall not disclose or  use, other than in the proper performance of my responsibilities for the Company, any  Confidential Information.  “Confidential Information” means any information, whether or not in  writing, concerning the Company’s business or activities that the Company has not released to  the general public.  I acknowledge that all Confidential Information is the property of the  Company.  I understand that the term “Confidential Information” includes, but is not limited to  financial statements, business plans, document templates, term sheets, policies and procedures,  proprietary training materials, personnel, board materials and minutes, operations, customer and  client lists and identities, potential customers and clients, vendor lists and agreements,  employees, servicing methods, strategies and strategic planning materials, analyses, profit  margins and other proprietary information in connection with the Company; provided, however,  that Confidential Information shall not include any information which is generally known to the  public or becomes known in the industry through no wrongful act on my part.  Confidential  Information also includes information received in confidence by the Company from its  customers, clients or other third parties.           2.    Return of Confidential Information and Other Property.  I shall deliver to the  Company all copies of Confidential Information and other Company property (which includes  but is not limited to any documents, notes or other work product connected with or derived from  my services to or affiliation with the Company, whether in electronic or paper form) in my  possession or control upon the earlier of a request by the Company or termination of my  employment.           3.    Non-Solicitation/Non-Accept.    

 

            (a)   During my employment with the Company, and for the period ending on  the first anniversary of the effective date of my termination of employment with the Company, I  shall not directly or indirectly:                       (i)   solicit or accept for employment with another employer or employ        any person then, or within the prior six (6) months, employed by the Company, or        request, influence or advise any person who at the time of such communication is        employed by the Company to leave such employment; or                      (ii)  influence or advise any business that is or may be competitive with        the business of the Company to employ any person who is employed by the Company; or                      (iii) solicit or accept any customer or client of the Company to do        business with any person or entity other than the Company or request, induce or advise        any customer or client of the Company to withdraw, curtail, diminish or cease his, her or        its business with the Company.                      (iv)  For purposes of Section 3(a), I understand and acknowledge the        following for purposes of this Agreement:                       (v)   A business is or may be “competitive” with the Company if such        business is engaged in banking, investment management, financial planning, trust        administration or other related financial services;                     (vi)  to “employ” means to perform services as a common law employer        or as an independent contractor for the Company or another person or entity;                     (vii) if I advise others concerning the process of encouraging a person        to become employed or a customer to do business, I will be considered to have solicited        such person or customer regardless of whether I directly engage in solicitation of the        person;                      (viii) I shall be considered to “accept for employment” or “employ” any        person who becomes employed by another employer if:                             (A)   I advise any bank or other business with which I am              affiliated to consider such person for employment,                            (B)   I participate in any way in the consideration of any such              person for employment, or                            (C)   such person becomes employed in a position in which I              supervise such person;                      (ix)  I shall be considered to “accept” a customer or client if I perform        services for such customer or client;    

 

                  (x)   a “customer or client of the Company” means any person or entity        who or which did business with the Company during my employment with the Company;        provided that, if my employment with the Company is limited exclusively to Boston        Private Bank & Trust Company and its predecessors (the “Bank”), a “customer or client        of the Company” shall be limited to any person or entity who or which did business with        the Bank during my employment with the Bank. for purposes of the post-employment        restrictions in this Section 3.               (b)   I hereby acknowledge the necessity of the protection provided to the  Company under this Agreement.  I have carefully considered the nature and scope of such  protection.  The Company and I hereby agree that the unique nature of the business of the  Company and the nature of my services for the Company require the protection specified in this  Agreement.  The consideration described in this Agreement is sufficient and adequate to  compensate me for agreeing to the restrictions contained herein.  I acknowledge that I can  continue to actively pursue my career and earn sufficient compensation without breaching any of  the foregoing restrictions.  The period of the post-employment restrictions in this Agreement is  expressly represented and agreed to be fair, reasonable and necessary.           4.    Other Obligations.  I represent and warrant to the Company that I am not under  any contract, agreement or restrictive covenant, and have not previously executed any documents  whatsoever with any other person, firm, association, or corporation, that will, in any manner,  prevent me from performing any of the job duties and responsibilities that may be assigned to me  from time to time by the Company.  I also represent and warrant that I will not bring and have  not brought with me to the Company and that I will not use in the course and scope of my  employment with the Company any confidential, proprietary and/or trade secret materials,  documents or information that I obtained from a former employer or other individual or entity,  without the express written authorization of the pertinent former employer or other individual or  entity.  I further represent and warrant that, during my employment with the Company, I will not  breach any obligation or duty to maintain confidential and not to disclose or use that I may owe  to any former employer or other individual or entity, and I agree to fulfill and comply with any  and all such obligations and duties during my employment by the Company.         5.    Notice to Future Employers and of Future Employment.                 (a)   I agree that during my employment with the Company and for the period  of one (1) year following the termination of my employment with the Company for any reason, I  will inform each prospective new employer I may have, prior to accepting employment, of the  existence of this Agreement, and I shall provide each prospective employer with a copy of this  Agreement.                 (b)   I also agree that during my employment with the Company and for the  period of one (1) year following the termination of my employment with the Company for any  reason, I shall notify the Company in writing of any subsequent engagement, occupation or  employment, whether as owner, employee, officer, director, agent, consultant, independent  contractor or the like, and my duties and responsibilities with respect to any such position.    

 

      6.    Enforcement and Remedies.  I hereby acknowledge that upon my breach of any of  the covenants contained in this Agreement, the Company will suffer irreparable harm for which  the remedy at law will be inadequate, and that an injunction may be entered against me by any  court having jurisdiction, restraining me from breaching any of the provisions of this Agreement  or continuing the breach of any such provisions, without the necessity of posting a bond.  Resort  to such equitable relief shall not be construed to be a waiver by the Company of any other rights  or remedies that the Company may have to recover damages or other relief.  In addition, if the  Company prevails in an action to enforce this Agreement, I shall compensate the Company for  its reasonable attorneys’ fees and related expenses incurred in enforcing this Agreement.            7.    At-Will Employment.  It is my understanding that the Company or I may  terminate my employment at any time, with or without cause; provided that if I have entered into  or in the future enter into a separate written and fully executed employment agreement that  expressly provides for employment on other than an at-will basis, my employment status  pursuant to such agreement shall supersede the foregoing acknowledgment of at-will  employment.          8.    Amendment or Modification.  This Agreement may not be changed or amended  except in writing signed by myself and the Company.           9.    Severability.  All provisions, terms, conditions, paragraphs, agreements and  covenants (“Provisions”) contained in this Agreement are severable and, in the event any one of  them shall be held to be invalid, this Agreement shall be interpreted as if such Provision was not  contained herein, and such determination shall not otherwise affect the validity of any other  Provision.           10.   Survival and Assignment by the Company.  The Company may assign the rights  given to it in this Agreement, and this Agreement shall survive any sale of assets, merger,  consolidation, or other change in corporate structure.  I understand that my obligations under this  Agreement will continue in accordance with its express terms regardless of any changes in my  title, position, duties, salary, compensation or benefits or other terms and conditions of  employment or any transfer between Company entities and that no such changes shall constitute  a termination of my employment.  I also acknowledge that provisions of this Agreement shall  continue in effect following the termination of my employment as specified above.   Notwithstanding the foregoing, if my employment terminates without Cause upon or following a  Change of Control or a Sale Event, my obligations under Section 3 (“Non-Solicitation/Non- Accept”) shall no longer be in effect.  For purposes of this Agreement, (i) a termination without  “Cause” shall have the same meaning as a Job Elimination, as that term is defined in the BPFH  Severance Pay Plan as in effect on the date of this Agreement; and (ii) the terms “Change of  Control” and “Sale Event” shall have the same meanings as set forth in the Plan.           11.   Waiver.  The waiver by the Company of any breach of any provision of this  Agreement shall not be construed as a waiver of any subsequent breach of such provision or the  breach of any other provision contained in this Agreement.    

 

      12.   Governing Law.  This Agreement shall be construed in accordance with and  governed by the substantive laws of the Commonwealth of Massachusetts without regard to  conflict of law provisions.           13.   Knowledge of Rights and Duties.  I have carefully reviewed and completely read  all of the provisions of this Agreement and understand my rights, duties, obligations and  responsibilities under this Agreement.  I acknowledge that I am knowingly and voluntarily  entering into this Agreement.          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date  shown below.                                           EMPLOYEE (Print Name)                    FOR THE COMPANY (Print name, title &                                           employer)                                                                                      Signature                                Signature      DATE:                                                                 

 

                                      EXHIBIT I (B):  NON-SOLICITATION AND      CONFIDENTIALITY AGREEMENT (FOR CALIFORNIA RESIDENTS ONLY)           I acknowledge that I enter into this Non-Solicitation and Confidentiality Agreement (the  “Agreement”) in connection with an award of restricted stock, restricted stock units or a grant of  a stock option (together, an “Award”) that is made on or about the date of the proposal of this  Agreement, pursuant to the Boston Private Financial Holdings, Inc. Amended and Restated 2009  Stock Option and Incentive Plan or any subsequent stock option and/or restricted stock plan of  Boston Private Financial Holdings, Inc. (together, the “Plan”) and that I shall forfeit the Award  (whether vested or unvested) if I do not execute this Non-Solicitation and Confidentiality  Agreement (the “Agreement”) within 60 days of the grant date of the Award.            For purposes of this Agreement, the “Company” refers to Boston Private Financial  Holdings, Inc. (“BPFH”) and any and all of its wholly or partially owned subsidiaries.           In consideration for my eligibility for any Award, I hereby agree as follows:           14.   Confidential Information.  During my employment with the Company and at all  times thereafter, I shall keep secret and retain in strictest confidence, and shall not disclose or  use, other than in the proper performance of my responsibilities for the Company, any  Confidential Information.  “Confidential Information” means any information, whether or not in  writing, concerning the Company’s business or activities that the Company has not released to  the general public.  I acknowledge that all Confidential Information is the property of the  Company.  I understand that the term “Confidential Information” includes, but is not limited to  financial statements, business plans, document templates, term sheets, policies and procedures,  proprietary training materials, personnel, board materials and minutes, operations, customer and  client lists and identities, potential customers and clients, vendor lists and agreements,  employees, servicing methods, strategies and strategic planning materials, analyses, profit  margins and other proprietary information in connection with the Company; provided, however,  that Confidential Information shall not include any information which is generally known to the  public or becomes known in the industry through no wrongful act on my part.  Confidential  Information also includes information received in confidence by the Company from its  customers, clients or other third parties.           Return of Confidential Information and Other Property.  I shall deliver to the Company  all copies of Confidential Information and other Company property (which includes but is not  limited to any documents, notes or other work product connected with or derived from my  services to or affiliation with the Company, whether in electronic or paper form) in my  possession or control upon the earlier of a request by the Company or termination of my  employment.          Non-Solicitation.  During my employment with the Company, and for the period ending  on the first anniversary of the effective date of my termination of employment with the  Company, I shall not, directly or indirectly, solicit any person then, or within the prior six (6)  

 

months, employed by the Company, or request, influence or advise any person who at the time of  such communication is employed by the Company to leave such employment.          Other Obligations.  I represent and warrant to the Company that I am not under any  contract, agreement or restrictive covenant, and have not previously executed any documents  whatsoever with any other person, firm, association, or corporation, that will, in any manner,  prevent me from performing any of the job duties and responsibilities that may be assigned to me  from time to time by the Company.  I also represent and warrant that I will not bring and have  not brought with me to the Company and that I will not use in the course and scope of my  employment with the Company any confidential, proprietary and/or trade secret materials,  documents or information that I obtained from a former employer or other individual or entity,  without the express written authorization of the pertinent former employer or other individual or  entity.  I further represent and warrant that, during my employment with the Company, I will not  breach any obligation or duty to maintain confidential and not to disclose or use that I may owe  to any former employer or other individual or entity, and I agree to fulfill and comply with any  and all such obligations and duties during my employment by the Company.         Notice to Future Employers.  I agree that during my employment with the Company and  for the period of one (1) year following the termination of my employment with the Company for  any reason, I will inform each prospective new employer I may have, prior to accepting  employment, of the existence of this Agreement, and I shall provide each prospective employer  with a copy of this Agreement.  I also agree that the Company has the right to independently  contact any potential or actual future employer of mine to notify the future employer of my  obligations under this Agreement and provide such future employer with a copy of this  Agreement.           Enforcement and Remedies.  I hereby acknowledge that upon my breach of any of the  covenants contained in this Agreement, the Company will suffer irreparable harm for which the  remedy at law will be inadequate, and that an injunction may be entered against me by any court  having jurisdiction, restraining me from breaching any of the provisions of this Agreement or  continuing the breach of any such provisions, without the necessity of posting a bond.  Resort to  such equitable relief shall not be construed to be a waiver by the Company of any other rights or  remedies that the Company may have to recover damages or other relief.   In addition, if the  Company prevails in an action to enforce this Agreement, I shall compensate the Company for  its reasonable attorneys’ fees and related expenses incurred in enforcing this Agreement.           At-Will Employment.  It is my understanding that the Company or I may terminate my  employment at any time, with or without cause; provided that if I have entered into or in the  future enter into a separate written and fully executed employment agreement that expressly  provides for employment on other than an at-will basis, my employment status pursuant to such  agreement shall supersede the foregoing acknowledgment of at-will employment.          Amendment or Modification.  This Agreement may not be changed or amended except in  writing signed by myself and the Company.           Severability.  All provisions, terms, conditions, paragraphs, agreements and covenants  (“Provisions”) contained in this Agreement are severable and, in the event any one of them shall  

 

be held to be invalid, this Agreement shall be interpreted as if such Provision was not contained  herein, and such determination shall not otherwise affect the validity of any other Provision.           Survival and Assignment by the Company.  The Company may assign the rights given to  it in this Agreement, and this Agreement shall survive any sale of assets, merger, consolidation,  or other change in corporate structure.  I understand that my obligations under this Agreement  will continue in accordance with its express terms regardless of any changes in my title, position,  duties, salary, compensation or benefits or other terms and conditions of employment or any  transfer between Company entities and that no such changes shall constitute a termination of my  employment.  I also acknowledge that provisions of this Agreement shall continue in effect  following the termination of my employment as specified above.  I also acknowledge that  provisions of this Agreement shall continue in effect following the termination of my  employment as specified above.  Notwithstanding the foregoing, if my employment terminates  without Cause upon or following a Change of Control or a Sale Event, my obligations under  Section 3 (“Non-Solicitation”) shall no longer be in effect.  For purposes of this Agreement, (i) a  termination without “Cause” shall have the same meaning as a Job Elimination, as that term is  defined in the BPFH Severance Pay Plan as in effect on the date of this Agreement; and (ii) the  terms “Change of Control” and “Sale Event” shall have the same meanings as set forth in the  Plan.           Waiver.  The waiver by the Company of any breach of any provision of this Agreement  shall not be construed as a waiver of any subsequent breach of such provision or the breach of  any other provision contained in this Agreement.           Governing Law.  This Agreement shall be construed in accordance with and governed by  the substantive laws of the State of California without regard to conflict of law provisions.           Knowledge of Rights and Duties.  I have carefully reviewed and completely read all of  the provisions of this Agreement and understand my rights, duties, obligations and  responsibilities under this Agreement.  I acknowledge that I am knowingly and voluntarily  entering into this Agreement.          IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date  shown below.                                           EMPLOYEE (Print Name)                    FOR THE COMPANY (Print name, title &                                           employer)                                                                              Signature                                Signature      DATE:EX-10.1

 Exhibit 10.1 

Execution Copy 

CONTRIBUTION AGREEMENT 

dated as of May 10, 2019, 

by and among 
 SHELL
PIPELINE COMPANY LP, 
 SHELL MIDSTREAM PARTNERS, L.P. 

and 
 SHELL MIDSTREAM
OPERATING LLC 

 TABLE OF CONTENTS 

 

							
	 Article I DEFINITIONS
	  	 	2	 
			
	 Section 1.1
	 	Definitions	  	 	2	 
			
	 Section 1.2
	 	Construction	  	 	9	 
		
	 Article II CONVEYANCE AND CLOSING
	  	 	9	 
			
	 Section 2.1
	 	Conveyance	  	 	9	 
			
	 Section 2.2
	 	Consideration	  	 	9	 
			
	 Section 2.3
	 	Closing	  	 	10	 
			
	 Section 2.4
	 	Subject Interest Distributions	  	 	11	 
		
	 Article III REPRESENTATIONS AND WARRANTIES OF SPLC
	  	 	11	 
			
	 Section 3.1
	 	Organization	  	 	11	 
			
	 Section 3.2
	 	Authority and Approval	  	 	11	 
			
	 Section 3.3
	 	No Conflict; Consents	  	 	12	 
			
	 Section 3.4
	 	Capitalization; Title to Subject Interests	  	 	13	 
			
	 Section 3.5
	 	Financial Information; Undisclosed Liabilities	  	 	13	 
			
	 Section 3.6
	 	Litigation; Laws and Regulations	  	 	14	 
			
	 Section 3.7
	 	No Adverse Changes	  	 	14	 
			
	 Section 3.8
	 	Environmental Matters	  	 	14	 
			
	 Section 3.9
	 	Joint Venture Contracts	  	 	15	 
			
	 Section 3.10
	 	Insurance	  	 	15	 
			
	 Section 3.11
	 	Brokerage Arrangements	  	 	16	 
			
	 Section 3.12
	 	Investment Intent	  	 	16	 
		
	 Article IV REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING
	  	 	16	 
			
	 Section 4.1
	 	Organization and Existence	  	 	16	 
			
	 Section 4.2
	 	Authority and Approval	  	 	17	 
			
	 Section 4.3
	 	No Conflict; Consents	  	 	17	 
			
	 Section 4.4
	 	Brokerage Arrangements	  	 	18	 
			
	 Section 4.5
	 	Litigation	  	 	18	 
			
	 Section 4.6
	 	Investment Intent	  	 	18	 
		
	 Article V ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS
	  	 	19	 
			
	 Section 5.1
	 	Operation of Colonial and Explorer	  	 	19	 
			
	 Section 5.2
	 	Supplemental Disclosure	  	 	21	 
			
	 Section 5.3
	 	Cooperation; Further Assurances	  	 	21	 

  
 i 

							
		
	 Article VI TAX MATTERS
	  	 	21	 
			
	 Section 6.1
	 	Liability for Taxes	  	 	21	 
			
	 Section 6.2
	 	Cooperation	  	 	22	 
			
	 Section 6.3
	 	Transfer Taxes	  	 	22	 
			
	 Section 6.4
	 	Allocation of Consideration	  	 	22	 
			
	 Section 6.5
	 	Conflict	  	 	22	 
			
	 Section 6.6
	 	Tax Treatment	  	 	22	 
		
	 Article VII CONDITIONS TO CLOSING
	  	 	23	 
			
	 Section 7.1
	 	Conditions to the Obligations of SHLX and Operating	  	 	23	 
			
	 Section 7.2
	 	Conditions to the Obligations of SPLC	  	 	24	 
		
	 Article VIII INDEMNIFICATION
	  	 	25	 
			
	 Section 8.1
	 	Indemnification of SHLX and Operating	  	 	25	 
			
	 Section 8.2
	 	Indemnification of SPLC	  	 	25	 
			
	 Section 8.3
	 	Survival	  	 	26	 
			
	 Section 8.4
	 	Indemnification Procedures	  	 	26	 
			
	 Section 8.5
	 	Direct Claim	  	 	28	 
			
	 Section 8.6
	 	Limitations on Indemnification	  	 	28	 
			
	 Section 8.7
	 	Sole Remedy	  	 	29	 
		
	 Article IX TERMINATION
	  	 	29	 
			
	 Section 9.1
	 	Termination	  	 	29	 
			
	 Section 9.2
	 	Remedies upon Termination	  	 	29	 
		
	 Article X MISCELLANEOUS
	  	 	29	 
			
	 Section 10.1
	 	Acknowledgements	  	 	29	 
			
	 Section 10.2
	 	Expenses	  	 	29	 
			
	 Section 10.3
	 	Notices	  	 	30	 
			
	 Section 10.4
	 	Arbitration	  	 	30	 
			
	 Section 10.5
	 	Governing Law	  	 	31	 
			
	 Section 10.6
	 	Public Statements	  	 	32	 
			
	 Section 10.7
	 	Entire Agreement; Amendments and Waivers	  	 	32	 
			
	 Section 10.8
	 	Conflicting Provisions	  	 	32	 
			
	 Section 10.9
	 	Binding Effect and Assignment	  	 	32	 
			
	 Section 10.10
	 	Severability	  	 	33	 
			
	 Section 10.11
	 	Interpretation	  	 	33	 
			
	 Section 10.12
	 	Headings and Disclosure Letter	  	 	33	 
			
	 Section 10.13
	 	Multiple Counterparts	  	 	33	 
			
	 Section 10.14
	 	Action by SHLX	  	 	33	 

  

  
 ii 

 CONTRIBUTION AGREEMENT 

This CONTRIBUTION AGREEMENT (this “Agreement”) is made as of May 10, 2019, by and among SHELL PIPELINE COMPANY LP, a
Delaware limited partnership (“SPLC”), SHELL MIDSTREAM PARTNERS, L.P., a Delaware limited partnership (“SHLX”), and SHELL MIDSTREAM OPERATING LLC, a Delaware limited liability company (“Operating”).

 RECITALS 
 WHEREAS,
in a series of prior transactions, Operating has acquired from SPLC (i) a six percent (6%) interest in Colonial Pipeline Company, a Delaware corporation (“Colonial”), and (ii) a 12.62% interest in Explorer Pipeline
Company, a Delaware corporation (“Explorer”); 
 WHEREAS, SPLC owns (i) a 10.125% interest in Colonial (the
“Colonial Subject Interests”), and (ii) a 25.97% interest in Explorer ((the “Explorer Subject Interests”, and together with the Colonial Subject Interests, the “Subject Interests”). 

WHEREAS, SPLC desires to contribute to SHLX or its designee Operating all of its right, title and interest in and to the Subject Interests,
and SHLX and its designee Operating desires to accept and acquire the Subject Interests in accordance with the terms of this Agreement (the “Transaction”); and 

WHEREAS, (a) the Conflicts Committee (the “Conflicts Committee”) of the Board of Directors (the “Board of
Directors”) of Shell Midstream Partners GP LLC, the general partner of SHLX (the “General Partner”), has previously (i) received an opinion of Evercore Group LLC, the financial advisor to the Conflicts Committee (the
“Financial Advisor”), that the Consideration to be distributed by SHLX pursuant to the Transaction is fair, from a financial point of view, to SHLX and (ii) based on the belief of the members of the Conflicts Committee that the
consummation of the Transaction on the terms and conditions set forth in this Agreement would not be adverse to the best interests of the Partnership Group (as defined in the First Amended and Restated Agreement of Limited Partnership of SHLX dated
as of November 3, 2014, as amended by Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership of Shell Midstream Partners, L.P. dated as of February 26, 2018, as further amended by Amendment No. 2 to
the First Amended and Restated Agreement of Limited Partnership of Shell Midstream Partners, L.P. dated as of December 21, 2018 (the “Partnership Agreement”)), unanimously approved the Transaction, such approval constituting
“Special Approval” for purposes of the Partnership Agreement, and unanimously recommended that the Board of Directors approve the Transaction and (b) subsequently, the Board of Directors has approved the Transaction. 

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

  
 1 

 ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. 

The respective terms defined in this Section 1.1 shall, when used in this Agreement, have the respective meanings
specified herein, with each such definition equally applicable to both singular and plural forms of the terms so defined: 

“Affiliate,” means, with respect to any Person, any other Person that directly or indirectly Controls, is Controlled by or is
under common Control with such Person; provided that when used (a) with respect to SPLC, the term “Affiliate” shall mean any other Person that directly or indirectly Controls, is Controlled by or is under common Control with
SPLC, excluding SHLX, the General Partner and SHLX’s subsidiaries and equity interests, including Operating, and (b) with respect to SHLX or Operating, the term “Affiliate” shall mean only the General Partner and
SHLX’s subsidiaries and equity interests. No Person shall be deemed an Affiliate of any Person solely by reason of the exercise or existence of rights, interests or remedies under this Agreement. 

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

“Applicable Law” means any applicable statute, law (including common law), ordinance, code, rule or regulation of any
Governmental Authority and any applicable order, decision, injunction, judgment, award and decree or consent of or agreement with any Governmental Authority. 

“Assignment Agreement” means the Subject Interests Assignment Agreement between SPLC and Operating dated as of the Closing
Date, pursuant to which SPLC assigns, transfers, contributes, grants, bargains, conveys, sets over and delivers to Operating, all of SPLC’s right, title and interest in and to the Subject Interests. 

“Board of Directors” has the meaning ascribed to such term in the recitals. 

“Business Day” means any day except a Saturday, a Sunday and any day which, in Houston, Texas, United States, shall be a
legal holiday or a day on which banking institutions are authorized or required by law or other government action to close. 
 “Cash
Consideration” has the meaning ascribed to such term in Section 2.2. 
 “Ceiling Amount”
has the meaning ascribed to such term in Section 8.6(a). 
 “CERCLA” means the Comprehensive
Environmental Response, Compensation, and Liability Act. 
 “Closing” has the meaning ascribed to such term in
Section 2.3. 
 “Closing Date” means the date on which the Closing occurs. 

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

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

  
 2 

 “Colonial Assets” means all of the assets owned by Colonial, including the
refined products pipeline system, comprising approximately 5,500 miles of pipeline connecting refineries along the Gulf Coast to approximately 270 marketing terminals located near major population centers throughout the Southeast, Mid-Atlantic, and Northeast United States. 
 “Colonial Shareholders Agreement” means the
Amended and Restated Shareholder Agreement, effective as of October 3, 2013, by and among CDPQ Colonial Partners, L.P., IFM (US) Colonial Pipeline 2 LLC, KKR-Keats Pipeline Investors LP, Koch Capital
Investments Company, LLC, Shell Pipeline Company LP, and Colonial Pipeline Company, as amended to date. 
 “Colonial Subject
Interests” has the meaning ascribed to such term in the recitals. 
 “Common Units” means common units
representing limited partner interests in SHLX. 
 “Conflicts Committee” has the meaning ascribed to such term in the
recitals. 
 “Consideration” means Eight Hundred Million United States Dollars ($800,000,000) subject to adjustment
pursuant to Section 2.4. 
 “Control” and its derivatives mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

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

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

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

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

“Dispute” has the meaning ascribed to such term in Section 10.4(a). 

“Effective Time” means 12:01 a.m., Houston Time, on the Closing Date. 

“Environmental Laws” means, without limitation, the following laws, in effect, and as interpreted and enforced, as of the
Closing Date: (a) the Resource Conservation and Recovery Act; (b) the Clean Air Act; (c) CERCLA; (d) the Federal Water Pollution Control Act; (e) the Safe Drinking Water Act; (f) the Toxic Substances Control Act;
(g) the Emergency Planning and Community Right-to-Know Act; (h) the National Environmental Policy Act; (i) the Pollution Prevention Act of 1990; (j) the
Oil Pollution Act of 1990; (k) the Hazardous Materials Transportation Act; (l) the Federal Insecticide, Fungicide and Rodenticide Act; (m) all laws, statutes, rules, regulations, orders, judgments or decrees promulgated or issued with
respect to the foregoing Environmental Laws by Governmental Authorities; and (n) any other federal, state 

  
 3 

 
or local statutes, laws, common laws, ordinances, rules, regulations, orders, codes, decisions, injunctions or decrees that regulate or otherwise pertain to the protection of the environment or
health and safety, including the management, control, discharge, emission, exposure, treatment, containment, handling, removal, use, generation, permitting, migration, storage, release, transportation, disposal, remediation, manufacture, processing
or distribution of Hazardous Materials. 
 “Explorer” has the meaning ascribed to such term in the recitals 

“Explorer Assets” means all of the assets owned by Explorer, including the products pipeline system, comprising approximately
1,830 miles of pipeline that primarily transports gasoline, diesel, diluent and jet fuel from the Gulf Coast refining complex to the Midwest United States. 

“Explorer Shareholders Agreement” means that certain Shareholders Agreement dated January 1, 2016, between EXPL Pipeline
Investment LLC, MPL Investment LLC, Phillips 66 Partners Holdings LLC, Shell Pipeline Company LP, Sunoco Pipeline, L.P. and Explorer Pipeline Company. 

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

“GAAP” means generally accepted accounting principles in the United States of America. 

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

“General Partner Subject Interests” has the meaning ascribed to such term in Section 2.1(a). 

“General Partner Unit Quantity” means the number of General Partner Units that, when added to the number of General Partner
Units owned by the General Partner immediately prior to Closing of the Transaction, causes the percentage interest of the General Partner to be 2%, after taking into account as outstanding the New Common Units. 

“General Partner Unit Value” means a dollar amount equal to (a) the General Partner Unit Quantity multiplied by
(b) the Price Per Unit. 
 “General Partner Units” has the meaning ascribed to such term in the Partnership Agreement.

 “Governmental Authority” means any federal, state, municipal or other government, governmental court, department,
commission, board, bureau, agency or instrumentality, whether foreign or domestic. 
 “Hazardous Materials” means
(a) any substance, whether solid, liquid or gaseous, that (i) is listed, defined or regulated as a “hazardous material,” “hazardous waste,” “solid waste,” “hazardous substance,” “toxic
substance,” “pollutant” or “contaminant,” or words of similar meaning or import found in any applicable Environmental Law or (ii) is or contains asbestos, 

  
 4 

 
polychlorinated biphenyls, radon, urea formaldehyde foam insulation, explosives, or radioactive materials; (b) any petroleum, petroleum hydrocarbons, petroleum substances, petroleum or
petrochemical products, refined petroleum products, natural gas, crude oil and any components, fractions, or derivatives thereof, any oil or gas exploration or production waste, and any natural gas, synthetic gas or any mixtures thereof;
(c) naturally occurring radioactive material, radioactive material, waste and pollutants, radiation, radionuclides and their progeny, or nuclear waste including used nuclear fuel; or (d) any substance, whether solid, liquid or gaseous,
that causes or poses a threat to cause contamination or nuisance on any properties or any adjacent property or a hazard to the environment or to the health or safety of persons on or about any properties. 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 

“Indebtedness for Borrowed Money” means, with respect to any Person, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or
other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services or any other similar obligation upon which interest charges are
customarily paid (excluding trade accounts payable incurred in the ordinary course of business), (e) all Indebtedness for Borrowed Money of others secured by (or for which the holder of such Indebtedness for Borrowed Money has an existing right,
contingent or otherwise, to be secured by) any encumbrance on property owned or acquired by such Person, whether or not the Indebtedness for Borrowed Money secured thereby has been assumed, (f) all assurances by such Person of Indebtedness for
Borrowed Money of others, (g) all capital lease obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (i) all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. 
 “Intellectual Property”
means all intellectual or industrial property and rights therein, however denominated, throughout the world, whether or not registered, including all patent applications, patents, trademarks, service marks, trade styles or dress, mask works,
copyrights, (including copyrights in computer programs, software, computer code, documentation, drawings, specifications and data), works of authorship, moral rights of authorship, rights in designs, trade secrets, technology, inventions, invention
disclosures, discoveries, improvements, know-how, proprietary rights, formulae, processes, methods, technical and business information, confidential and proprietary information, and all other intellectual and
industrial property rights, whether or not subject to statutory registration or protection and, with respect to each of the foregoing, all registrations and applications for registration, renewals, extensions, continuations, reexaminations,
reissues, divisionals, improvements, modifications, derivative works, goodwill and common law rights, and causes of action relating to any of the foregoing. 

“Joint Venture Contract” means (a) every material contract to which Explorer or Colonial is a party to which any
Explorer Asset or Colonial Asset, as applicable, is subject as of the date of this Agreement and which remains executory in whole or in part, (b) the Colonial Shareholders’ Agreement and the Colonial Pipeline Company Bylaws, and
(c) the Explorer Shareholders Agreement and the By-Laws of Explorer Pipeline Company. 

  
 5 

 “Joint Venture Financial Statements” has the meaning ascribed to such term
in Section 3.5(a). 
 “Knowledge,” as used in this Agreement with respect to a party hereof,
means the actual knowledge of that party’s designated personnel after due inquiry; provided, however, that with respect to the designated personnel of SPLC who are appointed directors of Colonial, “Knowledge” shall be
limited by protocols put in place for directors of Colonial with respect to certain matters listed in Section 3.6(a) of the Disclosure Letter. 

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

 “LP Holdings” means Shell Midstream LP Holdings LLC, a direct subsidiary of SPLC. 

“New Common Units” has the meaning ascribed to such term in Section 2.2. 

“New Debt” has the meaning ascribed to such term in Section 6.6. 

“New General Partner Units” has the meaning ascribed to such term in Section 2.2. 

“Notice” has the meaning ascribed to such term in Section 10.3. 

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

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

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

  
 6 

 “Person” means an individual or entity, including any partnership,
corporation, association, trust, limited liability company, joint venture, unincorporated organization or other entity. 
 “Price
Per Unit” $20.68, which represents the volume weighted average sales prices of the Common Units calculated for the five (5) trading day period ending on April 30, 2019. 

“Rules” has the meaning ascribed to such term in Section 10.4(a). 

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

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

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

“SHLX Indemnified Parties” has the meaning ascribed to such term in Section 8.1. 

“SHLX Material Adverse Effect” means a material adverse effect on or a material adverse change in the ability of SHLX or
Operating to perform their respective obligations under this Agreement and the other Transaction Documents or to consummate the transactions contemplated hereby or thereby. 

“SOPUS” means Equilon Enterprises LLC d/b/a SOPUS, a Delaware limited liability company. 

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

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

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

“SPLC Material Adverse Effect” means a material adverse effect on or a material adverse change in (a) the value or
operation of the Colonial Assets, taken as a whole, (b) the value or operation of the Explorer Assets, taken as a whole, (c) the business, operations or financial condition of Colonial or Explorer, other than any effect or change
(i) that impacts the offshore or onshore crude oil, natural gas or other hydrocarbon products transportation industry generally (including any change in the prices of crude oil, natural gas or other hydrocarbon products, industry margins or any
regulatory changes or changes in Applicable Law or GAAP), (ii) in United States or global political or economic conditions or financial markets in general or (iii) resulting from the announcement of the transactions contemplated by this
Agreement and the taking of any actions contemplated by this Agreement (excluding any preferential purchase right, right-of-first refusal,
tag-along right or similar right triggered as a result of this Agreement or the consummation of the transactions contemplated hereby), provided, that in the case of clauses (i) and (ii), the impact
on any component of the Colonial Assets or the Explorer Assets is not materially disproportionate to the impact on similarly situated assets in the offshore or onshore crude oil, natural gas or other hydrocarbon products transportation industry, as
applicable, or (d) the ability of SPLC to perform its obligations under this Agreement and/or the other Transaction Documents to which it is a party or to consummate the transactions contemplated hereby or thereby. 

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

 “Subject Interest Distributions” has the meaning ascribed to such term in Section 2.4. 

“Tax” means any and all U.S. federal, state, local or foreign net income, gross income, gross receipts, sales, use, ad
valorem, transfer, franchise, capital stock, profits, margin, license, license fee, environmental, customs duty, unclaimed property or escheat payments, alternative fuels, mercantile, lease, service, withholding, payroll, employment, unemployment,
social security, disability, excise, severance, registration, stamp, occupation, premium, property (real or personal), windfall profits, fuel, value added, alternative or add on minimum, estimated or other similar taxes, duties, levies, customs,
tariffs, imposts or assessments (including public utility commission property tax assessments) imposed by any Governmental Authority, together with any interest, penalties or additions thereto payable to any Governmental Authority in respect thereof
or any liability for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any agreement or arrangement whereby liability for payment of
such amounts was determined or taken into account with reference to the liability of any other Person. 
 “Tax Return”
means any return, declaration, report, statement, election, claim for refund or other written document, together with all attachments, amendments and supplements thereto, filed with or provided to, or required to be filed with or provided to, a
Governmental Authority in respect of Taxes. 
 “Transaction” has the meaning ascribed to such term in the recitals. 

“Transaction Documents” means this Agreement, the Assignment Agreement, any certificates delivered by any of the parties at
the Closing and any other documents of conveyance or other related documents contemplated to be entered into in connection with this Agreement and the transactions contemplated hereby with respect to which SPLC, SHLX or Operating is a party. 

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

“Tribunal” has the meaning ascribed to such term in Section 10.4(b). 

“Unit Consideration” has the meaning ascribed to such term in Section 2.2. 

“Unit Consideration Value” means a United States dollar amount equal to 25% of the Consideration. 

  
 8 

 Section 1.2 Construction. 

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

CONVEYANCE AND CLOSING 

Section 2.1 Conveyance. 

Upon the terms and subject to the conditions set forth in this Agreement and in the other Transaction Documents, at the Closing: 

(a) SPLC shall contribute, transfer, assign and convey (i) to the General Partner a percentage of the Subject Interests equal to the
quotient of the General Partner Unit Value divided by the Consideration (the “General Partner Subject Interests”) and (ii) the remaining Subject Interests to Operating, as designee of SHLX; 

(b) SPLC shall cause General Partner to contribute, transfer, assign and convey the General Partner Subject Interests to Operating, as designee
of SHLX; and 
 (c) Operating, in its capacity as designee of SHLX, shall accept and acquire the Subject Interests from SPLC and General
Partner, 
 in each case free and clear of all Liens (other than restrictions under applicable federal and state securities laws. 

Section 2.2 Consideration. 

In consideration for the Subject Interests, the Consideration distributed from SHLX shall consist of the Cash Consideration and the Unit
Consideration. The cash consideration shall be a cash payment from SHLX to SPLC in United States dollars equal to the Consideration minus the Unit Consideration Value (“Cash Consideration”), subject to adjustment pursuant to
Section 2.4. The unit consideration shall consist of (i) an issuance by SHLX of a number of Common Units equal to (x) the Unit Consideration Value minus the General Partner Unit Value, divided by (y) the
Price Per Unit (the “New Common Units”) to LP Holdings, and (ii) an issuance by SHLX of a number of General Partners Units equal to the General Partner Unit Quantity (the “New General Partner Units,” and
together with the New Common Units, the “Unit Consideration”) to the General Partner. 

  
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 Section 2.3 Closing. 

(a) The closing of the Transaction (the “Closing”) shall take place as provided in this Section 2.3;
but if the Closing occurs, the Transaction, including the transfer to Operating of the risk of loss and reward relating to the Subject Interests, shall be effective as of the Effective Time. The Closing will be held at the offices of SPLC at 150 N.
Dairy Ashford, Houston, Texas 77079, on the earlier of (i) July 24, 2019 or (ii) two (2) Business Days after satisfaction or waiver, as applicable, of the conditions set forth in Section 7.1 and
Section 7.2, or such other place, date and time or means (including by electronic means), as may be mutually agreed upon by the parties hereto. 

(b) At the Closing, SHLX and Operating shall deliver, or cause to be delivered, the following: 

 

	 	(i)	 the Cash Consideration by wire transfer in immediately available funds to an account of SPLC or of such
designee(s) to be designated by SPLC not less than two (2) Business Days prior to the Closing, which account(s) shall be designated in writing to SPLC not less than two (2) Business Days prior to Closing; 

 

	 	(ii)	 the New Common Units to be issued by SHLX to LP Holdings; 

 

	 	(iii)	 the New General Partner Units to be issued by SHLX to the General Partner; 

 

	 	(iv)	 a duly executed counterpart of the Assignment Agreement by Operating to SPLC; 

 

	 	(v)	 a certificate of good standing as of a recent date of SHLX and Operating to SPLC; and 

 

	 	(vi)	 the SHLX Closing Certificate to SPLC. 

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

 

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

 

	 	(ii)	 a certificate of good standing as of a recent date for each of SPLC, Colonial and Explorer;

  

	 	(iii)	 a foreign qualification certificate as of a recent date for each of SPLC, Colonial and Explorer;

  

	 	(iv)	 a certification of non-foreign status in accordance with Treasury
Regulation Section 1.1445-2(b)(2) from SOPUS, on behalf of SPLC; and 

  

	 	(v)	 the SPLC Closing Certificate. 

(d) The parties hereto agree to deliver such other certificates, instruments of conveyance and documents as may be reasonably requested by
another party hereto not less than two (2) Business Days prior to the Closing Date to carry out the intent and purposes of this Agreement. 

  
 10 

 Section 2.4 Subject Interest Distributions. 

For the avoidance of doubt, Operating shall be entitled to receive from SPLC any and all dividends or distributions payable in cash, equity
securities, or other property declared, set aside or paid by Colonial or Explorer as they relate to the Subject Interests with respect to the period beginning April 1, 2019 (and such distributions are referred to herein as the “Subject
Interest Distributions”); provided, however, that if the Closing Date occurs after the date upon which the Subject Interest Distributions are paid by either Explorer or Colonial, such Subject Interest Distributions shall be
treated as an adjustment to the Consideration and the Consideration shall be reduced by the amount of such Subject Interest Distributions. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SPLC 

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

Section 3.1 Organization. 

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

(b) SPLC has made available to SHLX and Operating true and complete copies of the organizational documents of Colonial and Explorer, in each
case as in effect as of the date of this Agreement. 
 Section 3.2 Authority and Approval. 

(a) SPLC has full limited partnership power and authority to execute and deliver this Agreement and the other Transaction Documents to which
SPLC is a party, to consummate the transactions contemplated hereby and thereby and to perform all of the obligations hereof and thereof to be performed by it. The execution and delivery by SPLC of this Agreement and the other Transaction Documents
to which SPLC is or will be a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SPLC have been duly authorized and approved by all
requisite limited partnership action on the part of SPLC. 

  
 11 

 (b) This Agreement has been duly executed and delivered by SPLC and constitutes the valid
and legally binding obligation of SPLC, enforceable against it in accordance with its terms, and, upon the execution of the other Transaction Documents to which SPLC is a party, such other Transaction Documents will be duly executed and delivered by
SPLC and will constitute the valid and legally binding obligations of SPLC, enforceable against SPLC in accordance with their terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity). 

Section 3.3 No Conflict; Consents. 

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

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

  
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 Section 3.4 Capitalization; Title to Subject
Interests. 
 Except as set forth on Section 3.4 of the Disclosure Letter: 

(a) SPLC owns, beneficially and of record, the Subject Interests and will convey to Operating at Closing good title to the Subject Interests,
free and clear of all Liens. Except for (i) the conveyance of the Subject Interests contemplated by this Agreement and (ii) restrictions under applicable federal and state securities laws, the Subject Interests are not subject to any
agreements or understandings with respect to the voting or transfer of any of the Subject Interests, stockholders’ agreements, pledge agreements, buy-sell agreements, rights of first refusal, preemptive
rights or proxy arrangements. To the Knowledge of SPLC, the Subject Interests have been duly authorized and are validly issued, fully paid and nonassessable. 

(b) To the Knowledge of SPLC, there are (i) no authorized or outstanding subscriptions, warrants, options, convertible securities or other
rights (contingent or otherwise) to purchase or otherwise acquire from either Colonial or Explorer any equity interests of or in such entity, (ii) no commitments on the part of either Colonial or Explorer to issue capital stock, shares,
subscriptions, warrants, options, convertible securities or other similar rights, and (iii) no equity securities of either Colonial or Explorer reserved for issuance for any such purpose. To the Knowledge of SPLC, neither Colonial nor Explorer
has any obligation (contingent or other) to purchase, redeem or otherwise acquire any of its equity securities or interests. To the Knowledge of SPLC, except for this Agreement, there is no voting trust or agreement, stockholders’ agreement,
pledge agreement, buy-sell agreement, right of first refusal, preemptive right or proxy relating to any equity securities of either Colonial or Explorer. To the Knowledge of SPLC, neither Colonial nor Explorer
owns any equity interests in any other Person except as set forth on Section 3.4 of the Disclosure Letter. 

Section 3.5 Financial Information; Undisclosed Liabilities. 

(a) SPLC has provided to Operating the audited consolidated financial statements as of December 31, 2018 of each of Colonial and Explorer
(the “Joint Venture Financial Statements”). To the Knowledge of SPLC, the applicable Joint Venture Financial Statements present fairly in all material respects the financial position of Colonial and Explorer, respectively, as of the
date thereof. To the Knowledge of SPLC, there are no material off-balance sheet arrangements of either Colonial or Explorer. To the Knowledge of SPLC, the Joint Venture Financial Statements have been prepared
in accordance with GAAP consistently applied throughout the periods presented (except as may be indicated in the notes thereto). 
 (b)
Except as set forth on Section 3.5(b) of the Disclosure Letter and to the Knowledge of SPLC, there are no liabilities or obligations of either Colonial or Explorer of any nature (whether known or unknown and whether
accrued, absolute, contingent or otherwise) and there are no facts or circumstances that would reasonably be expected to result in any such liabilities or obligations, whether arising in the context of federal, state or local judicial, regulatory,
administrative or permitting agency proceedings, other than (i) liabilities or obligations reflected or reserved against in the applicable Joint Venture Financial Statements, (ii) current liabilities incurred in the ordinary course of
business since December 31, 2018, and (iii) liabilities or obligations (whether accrued, absolute, contingent or otherwise) that, individually and in the aggregate, are not material. 

  
 13 

 Section 3.6 Litigation; Laws and Regulations. 

(a) Except as set forth on Section 3.6(a) of the Disclosure Letter, to the Knowledge of SPLC, there are no
(i) civil, criminal or administrative actions, complaints, suits, claims, hearings, arbitrations or proceedings pending or threatened against either Colonial or Explorer, (ii) judgments, orders, decrees or injunctions of any Governmental
Authority, whether at law or in equity, against either Colonial or Explorer or (iii) pending or threatened investigations by any Governmental Authority against either Colonial or Explorer, except in each case, for those items that would not,
individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect; and 
 (b) To the Knowledge of SPLC, neither
Colonial nor Explorer is in violation of or in default under any Applicable Law, except as would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect or result in any liability or obligation of SHLX or
Operating. 
 Section 3.7 No Adverse Changes. 

Except as set forth on Section 3.7 of the Disclosure Letter, since December 31, 2018, to the Knowledge of SPLC:

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

(b) there has not been any damage, destruction or loss to any material portion of the Colonial Assets or the Explorer Assets, whether or not
covered by insurance, in excess of One Million Dollars ($1,000,000). 
 Section 3.8 Environmental
Matters. 
 To the Knowledge of SPLC, except as disclosed in Section 3.8 of the Disclosure Letter, or as
would not reasonably be expected, individually or in the aggregate, to have a SPLC Material Adverse Effect: 
 (a) (i) Colonial and the
Colonial Assets, operations and business, and (ii) Explorer and the Explorer Assets, operations and business, are each in compliance with applicable Environmental Laws, which compliance includes the possession and maintenance of, and compliance
with, all material permits required under all Environmental Laws; 
 (b) no circumstances exist with respect to (i) Colonial and the
Colonial Assets, operations or business, or (ii) Explorer and the Explorer Assets, operations or business, that give rise to an obligation or Damages of Colonial or Explorer or their respective operators related to the investigation,
remediation or other action necessary to address the presence, on-site or offsite, of Hazardous Materials under any applicable Environmental Laws; 

(c) Neither (i) Colonial, with respect to Colonial or the Colonial Assets, operations or business, (ii) nor Explorer, with respect to
Explorer or the Explorer Assets, operations or business, has received any written communication from a Governmental Authority that remains unresolved alleging a violation or potential violation of any Environmental Law or any Permit issued pursuant
to Environmental Law; 

  
 14 

 (d) Neither Colonial and the Colonial Assets, operations or business, nor Explorer and the
Explorer Assets, operations or business, is subject to any pending or threatened, claim, action, suit, investigation, inquiry or proceeding under any Environmental Law (including designation as a potentially responsible party under CERCLA or any
similar local or state law); 
 (e) all notices, permits, permit exemptions, licenses or similar authorizations, if any, required to be
obtained or filed under any Environmental Law by (i) Colonial, with respect to Colonial or the Colonial Assets, operations or business and (ii) Explorer, with respect to Explorer or the Explorer Assets, operations or business, have been
duly obtained or filed, are valid and currently in effect, and Colonial and the Colonial Assets, operations and business, and Explorer and the Explorer Assets, operations and business are in compliance with such authorizations; and 

(f) since January 1, 2017, there has been no discharge, disposal or arrangement for disposal of any Hazardous Material into the
environment by (i) Colonial, or the Colonial Assets, operations or business, and (ii) Explorer, or the Explorer Assets, operations or business, or by a third party in connection with any of the foregoing, except in compliance with
applicable Environmental Law and in a manner that has not and would not be expected to give rise to any material liability under Environmental Laws. 

Section 3.9 Joint Venture Contracts. 

Except as set forth on Section 3.9 of the Disclosure Letter: 

(a) To SPLC’s Knowledge, each Joint Venture Contract is valid, binding and enforceable in full force and effect, subject to the effects of
bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or in law); 

(b) To SPLC’s Knowledge, each Joint Venture Contract will continue to be valid, binding and enforceable and in full force and effect on
terms identical to those contemplated in (a) above following the consummation of the transactions contemplated by this Agreement; 
 (c)
To the Knowledge of SPLC, (i) neither Colonial nor Explorer, nor any of their respective counterparties to an applicable Joint Venture Contract, is in breach or default of any Joint Venture Contract, and (ii) no event has occurred that,
with notice, lapse of time or both, would constitute a breach or default under any Joint Venture Contract. 

Section 3.10 Insurance. 

To the Knowledge of SPLC, Section 3.10 of the Disclosure Letter sets forth a list of the material insurance policies
that Colonial and Explorer hold or SPLC holds with respect to the Colonial Assets and the Explorer Assets, respectively. To the Knowledge of SPLC, such policies are in full force and effect, and all premiums due and payable under such policies have
been paid, and SPLC has not received written notice of any pending or threatened termination of, or indication of an intention not to renew, such policies. 

  
 15 

 Section 3.11 Brokerage Arrangements. 

None of SPLC nor any of its Affiliates has entered (directly or indirectly) into any agreement with any Person that would obligate either
Operating or any of its Affiliates, or Colonial or Explorer, to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement or the other Transaction Documents or the Transactions contemplated
hereby or thereby. For purposes of this Section 3.11, SHLX and its subsidiaries shall not constitute Affiliates of SPLC or their respective Affiliates. 

Section 3.12 Investment Intent. 

(a) SPLC, together with its wholly owned subsidiary LP Holdings, is accepting the Unit Consideration for its own account with the present
intention of holding the Unit Consideration for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or state securities laws. SPLC acknowledges that the
Unit Consideration constitute “restricted securities” and have not been registered under the Securities Act or any applicable state securities laws, and that the certificates representing the Unit Consideration will bear a restrictive
legend to that effect. SPLC further acknowledges that such Unit Consideration may not be transferred or sold except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state
securities laws and regulations as applicable. 
 (b) LP Holdings is an “accredited investor,” as such term is defined in Rule
501(a) of Regulation D promulgated under the Securities Act and the investment by LP Holdings in SHLX is for investment purposes for its own account and not for the account of others. SPLC, together with its wholly owned subsidiary LP Holdings, have
such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Unit Consideration and has so evaluated the merits and risks of such
investment. LP Holdings is able to bear the economic risk of an investment in the Unit Consideration and, at the present time and in the foreseeable future, is able to afford a complete loss of such investment. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING 

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

Section 4.1 Organization and Existence. 

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

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

  
 16 

 Section 4.2 Authority and Approval. 

(a) Each of SHLX and Operating has full limited partnership power and authority or full limited liability company power and authority, as
applicable, to execute and deliver this Agreement, to consummate the transactions contemplated hereby (including the issuance at the Closing to SPLC of the Unit Consideration) and to perform all of the obligations hereof to be performed by it. The
execution and delivery of this Agreement and the other Transaction Documents to which SHLX and Operating are or will be a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations
hereof and thereof to be performed by SHLX and Operating, as applicable, have been duly authorized and approved by all requisite limited partnership or limited liability company action of SHLX and Operating, as applicable. 

(b) This Agreement has been duly executed and delivered by or on behalf of SHLX and Operating, and constitutes the valid and legally binding
obligation of SHLX and Operating, enforceable against SHLX and Operating in accordance with its terms and, upon the execution of all of the other Transaction Documents to which SHLX or Operating is or will be a party, such other Transaction
Documents will be duly executed and delivered by or on behalf of SHLX and Operating and will constitute the valid and legally binding obligation of SHLX and Operating, enforceable against SHLX and Operating in accordance with their terms, except in
each case as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights and remedies generally and by general
principles of equity (whether applied in a proceeding at law or in equity). 
 Section 4.3 No Conflict;
Consents. 
 (a) The execution, delivery and performance of this Agreement and the other Transaction Documents to which SHLX and
Operating are or will be a party by SHLX or Operating, as applicable, does not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the transactions contemplated hereby and thereby will not,
(i) violate, conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or provisions of the organizational documents of SHLX or Operating; (ii) conflict with or violate any provision
of any law or administrative rule or regulation or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to SHLX or Operating or any property or asset of SHLX or Operating; (iii) conflict
with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, or result
in the suspension, termination or cancellation of, or in a right of suspension, termination or cancellation of, any indenture, mortgage, agreement, contract, commitment, right of way, license, concession, permit, lease, joint venture or other
instrument to which SHLX or Operating is a party or by which it is bound or to which SHLX’s or Operating’s property is subject, except in the case of clauses (ii) and (iii) for those items which, individually or in the aggregate,
would not reasonably be expected to affect the ability of either SHLX or Operating to perform its obligations under this Agreement and the other Transaction Documents to which SHLX or Operating is or will be a party or to consummate the transactions
contemplated hereby or thereby. 

  
 17 

 (b) No consent, approval, license, permit, order or authorization of any Governmental
Authority or other Person is required to be obtained or made by or with respect to SHLX or Operating in connection with the execution, delivery, and performance of this Agreement or the other Transaction Documents to which SHLX or Operating is or
will be a party or the consummation of the transactions contemplated hereby and thereby, except (i) as have been waived or obtained or with respect to which the time for asserting such right has expired or (ii) for those which, the failure
to be obtained or made, would not, individually or in the aggregate, reasonably be expected to affect the ability of SHLX and Operating to perform their respective obligations under this Agreement and the other Transaction Documents to which SHLX or
Operating are or will be a party or to consummate the transactions contemplated hereby or thereby (including such consents, approvals, licenses, permits, orders or authorizations that are not customarily obtained prior to the Closing and are
reasonably expected to be obtained in the ordinary course of business following the Closing). 
 Section 4.4 Valid Issuance of
Unit Consideration. 
 When issued by SHLX at the Closing as contemplated in accordance with Section 2.2,
the Unit Consideration will be validly issued and fully paid, and the new Common Units will be non-assessable (except as such non-assessability may be affected by
Sections 17-303(a), 17-607(b) or 17-804(c) of the Delaware Revised Uniform Limited Partnership Act. 

Section 4.5 Brokerage Arrangements. 

Neither SHLX nor Operating has entered (directly or indirectly) into any agreement with any Person that would obligate SPLC or any of its
Affiliates to pay any commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby. For purposes of this
Section 4.4, SHLX and its subsidiaries shall not constitute Affiliates of SPLC or of SPLC’s Affiliates. 

Section 4.6 Litigation. 

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

Section 4.7 Investment Intent. 

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

  
 18 

 ARTICLE V 

ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS 

Section 5.1 Operation of Colonial and Explorer. 

(a) Except as expressly provided by this Agreement, or as consented to in writing by SHLX and Operating, during the period from the date of
this Agreement through the Closing Date, (i) SPLC shall not take any action that would reasonably be expected to result in any representation and warranty of SPLC set forth in this Agreement becoming untrue in any material respect and
(ii) in the event that items are presented to the shareholders of either Colonial or Explorer, SPLC shall, or shall cause its respective representative(s) to, vote in favor of taking actions to: 

 

	 	(i)	 conduct its business and operations in the usual and ordinary course thereof consistent with past practices;
and 

  

	 	(ii)	 preserve, maintain and protect the Colonial Assets and operations or the Explorer Assets and operations, as
applicable, as are now being conducted. 

 SPLC shall, or shall cause its respective representative(s) to, vote its interests in Colonial
and Explorer in opposition to any actions contrary to the foregoing. 
 (b) Except (i) as expressly provided by this Agreement,
(ii) as set forth on Section 5.1 of the Disclosure Letter or (iii) as consented to in writing by SHLX and Operating, during the period from the date of this Agreement through the Closing Date, SPLC shall cause its
representative(s) to vote against any action that would permit Colonial or Explorer, to: 
  

	 	(i)	 amend its organizational documents; 

 

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

 

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

  

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

 

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

  
 19 

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

  

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

  

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

  

	 	(ix)	 file any material lawsuit; 

 

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

  

	 	(xi)	 undertake any capital project; 

 

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

 

	 	(xiii)	 make any loan to any Person (other than extensions of credit to customers in the ordinary course of business in
accordance with past practice); 

  

	 	(xiv)	 issue or sell any equity interest, notes, bonds or other securities, or any option, warrant or right to acquire
the same or incur, assume or guarantee any Indebtedness for Borrowed Money; 

  

	 	(xv)	 make any distribution with respect to its equity interests other than in the ordinary course of business
consistent with past practice; 

  

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

 

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

  

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

  

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

  
 20 

 Section 5.2 Supplemental Disclosure. 

As soon as reasonably practical following SPLC obtaining Knowledge of a relevant disclosure, but in all cases no later than three Business Days
prior to Closing, by written notice to the Partnership, SPLC shall supplement or amend the Disclosure Letter to this Agreement for matters which, if existing or known at the date of this Agreement, would have been required to be set forth or
described in the Disclosure Letter. For all purposes of this Agreement, including for purposes of determining whether the conditions set forth in Article VII have been fulfilled, the Disclosure Letter shall be deemed to include only that
information contained therein on the date of this Agreement and shall be deemed to exclude all information contained in any supplement or amendment to the Disclosure Letter; and if the Closing shall occur, then all matters disclosed pursuant to any
such supplement or amendment at or prior to the Closing shall not be waived and the Partnership and Operating shall be entitled to make a claim thereon pursuant to the terms of this Agreement. 

Section 5.3 Cooperation; Further Assurances. 

(a) SPLC, on the one hand, and SHLX and Operating, on the other hand, shall use their respective commercially reasonable efforts (i) to
obtain all approvals and consents required by or necessary for the transactions contemplated by this Agreement, including, if required, any approvals and consents required by the HSR Act, (ii) to ensure that all of the conditions to the
respective obligations of the SPLC, SHLX and Operating, as the case may be, contained in Section 7.1 and Section 7.2, respectively, are satisfied timely and (iv) to execute and deliver all
documents and instruments required by or necessary for the consummation of the transactions contemplated by this Agreement. Each of the Parties acknowledges that certain actions may be necessary with respect to the matters and actions contemplated
by this Agreement, such as making notifications and obtaining consents or approvals or other clearances that are material to the consummation of the transactions contemplated hereby, and each agrees to take all appropriate action and to do all
things necessary, proper or advisable under Applicable Laws and regulations to make effective the transactions contemplated by this Agreement; provided, however, that except as expressly set forth herein, nothing in this Agreement will
require any party hereto to hold separate or make any divestiture not expressly contemplated herein of any asset or otherwise agree to any restriction on its operations or other burdensome condition which would in any such case be material to its
assets, liabilities or business in order to obtain any consent or approval or other clearance required by this Agreement. 
 ARTICLE VI

 TAX MATTERS 

Section 6.1 Liability for Taxes. 

(a) SPLC shall be liable for, and shall indemnify, defend and hold harmless SHLX and Operating from any unpaid Taxes (including related
penalties and interest) imposed on or incurred with respect to the Subject Interests attributable to any taxable period (or portion thereof) ending on or prior to the Closing Date. 

(b) SHLX and Operating shall be liable for any Taxes (including related penalties and interest) imposed on or incurred with respect to the
Subject Interests attributable to any taxable period (or portion thereof) beginning after the Closing Date. 

  
 21 

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

Section 6.2 Cooperation. 

The Parties will cooperate fully with each other regarding Tax matters and the preparation and filing of Tax Returns (including the execution
of appropriate powers of attorney) and will make available to the other as reasonably requested all information, records and documents relating to Taxes governed by this Agreement until the expiration of the applicable statute of limitations or
extension thereof or the conclusion of all audits, appeals or litigation with respect to such Taxes. 

Section 6.3 Transfer Taxes. 

Any transfer, documentary, sales, use, stamp, registration and other similar Taxes and/or fees arising out of or in connection with the
transactions effected pursuant to this Agreement (each such Tax or fee, a “Transfer Tax”) shall be borne by the party on whom such obligation is primarily imposed by Applicable Law; provided, however, that SHLX shall bear any
Transfer Tax for which SHLX is jointly and severally liable, and for which no other party is primarily liable, under Applicable Law. The party responsible for a Transfer Tax pursuant to this Section 6.3 shall file all
necessary Tax Returns and other documentation with respect to such Transfer Tax. If required by Applicable Law, SPLC, SHLX and Operating shall, and shall cause their respective Affiliates to, join in the execution of any such Tax Returns and other
documentation. The parties shall cooperate to establish eligibility for any applicable exemption from any Transfer Tax. 

Section 6.4 Allocation of Consideration. 

The Parties will use commercially reasonable efforts to agree upon an allocation of the Consideration between the Colonial Subject Interests
and the Explorer Subject Interests for federal income tax purposes in compliance with the principles of Code Section 1060 and the Treasury Regulations thereunder and Treasury Regulation 1.755-1, as
applicable. 
 Section 6.5 Conflict. 

In the event of a conflict between the provisions of this Article VI and any other provisions of this Agreement, the provisions of this
Article VI shall control. 
 Section 6.6 Tax Treatment. 

The Parties agree that the Transaction shall be treated for Tax purposes as a contribution of property by SOPUS to SHLX subject to the
disguised sale rules under Code Section 707(a)(2)(B) and the Treasury Regulations promulgated thereunder. SHLX may incur a borrowing or borrowings through a new loan from Shell Treasury Center (West) Inc. (the “New Debt”)
and/or through excess capacity on its existing credit facilities with Shell Treasury Center (West) Inc. to fund all or a portion of the Cash Consideration contemplated by the Transaction. The Parties intend that (i) the distribution of the Cash
Consideration shall be treated, pursuant to 

  
 22 

 
Treasury Regulation Section 1.163-8T, as being made first out of proceeds of the New Debt, if any, and such payment shall qualify to the maximum
extent possible as a “debt-financed transfer” under Treasury Regulation Section 1.707-5(b) and (ii) SOPUS’s allocable share of the New Debt shall be determined under Treasury
Regulation Section 1.752-2 and Proposed Treasury Regulation Section 1.707-5(a)(2). The Parties agree to act at all times in a manner consistent with this
intended treatment of the Transaction and the New Debt. 
 ARTICLE VII 

CONDITIONS TO CLOSING 

Section 7.1 Conditions to the Obligations of SHLX and Operating. 

The obligations of SHLX and Operating to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing
Date of all of the following conditions, any one or more of which may be waived, in whole or in part, by SHLX and Operating: 
 (a) The
representations and warranties of SPLC set forth in (i) this Agreement (other than the representations and warranties of SPLC set forth in Sections 3.1, 3.2, 3.4, and 3.11) shall be true and correct (without giving
effect to any materiality standard or SPLC Material Adverse Effect qualification, except with respect to Section 3.7(a)) as of the date of this Agreement and on the Closing Date as if made on such date, or in the case of
representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct (without giving effect to any materiality standard or SPLC Material Adverse Effect qualification, except with respect
to Section 3.7(a)) as of such specified date, except to the extent that failure of such representations and warranties to be true and correct would not, individually or in the aggregate, result in an SPLC Material Adverse
Effect and (ii) Sections 3.1, 3.2, 3.4, and 3.11 shall be true and correct in all respects as of the date of this Agreement and on the Closing Date as if made on such date. SPLC shall have performed or complied in
all material respects with all obligations and covenants required by this Agreement to be performed or complied with by SPLC by the time of the Closing. SPLC shall have delivered to SHLX a certificate, dated as of the Closing Date and signed by an
authorized signatory of SPLC’s general partner (the “SPLC Closing Certificate”) confirming the foregoing matters set forth in this Section 7.1(a). 

(b) All necessary filings with and consents, approvals, licenses, permits, orders and authorizations of any Governmental Authority required for
the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act, if applicable) shall have been made and obtained, and all waiting periods with respect to filings made with Governmental Authorities in
contemplation of the consummation of the transactions described herein shall have expired or been terminated. 
 (c) All necessary consents
of any Person not a party hereto, other than any Governmental Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained, including any consents set forth on
Section 7.1(c) of the Disclosure Letter. 

  
 23 

 (d) No statute, rule, regulation, executive order, decree, temporary restraining order,
preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of the transactions
contemplated hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the consummation of the transactions
contemplated hereby or to recover Damages in connection herewith. 
 (e) Since the date of this Agreement, there shall not have occurred an
SPLC Material Adverse Effect. 
 (f) SPLC or its designee shall have delivered, or caused to be delivered, to SHLX and Operating all of the
documents, certificates and other instruments required to be delivered under, and otherwise complied with the applicable provisions of Section 2.3. 

Section 7.2 Conditions to the Obligations of SPLC. 

The obligations of SPLC to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing Date all of
the following conditions, any one or more of which may be waived in writing, in whole or in part, by the SPLC: 
 (a) The representations and
warranties of SHLX and Operating set forth in (i) this Agreement (other than the representations and warranties in Sections 4.1, 4.2, 4.4, and 4.5) shall be true and correct (without giving effect to any materiality
standard or SHLX Material Adverse Effect qualification) as of the date of this Agreement and on the Closing Date as if made on such date, or in the case of representations and warranties that are made as of a specified date, such representations and
warranties shall be true and correct (without giving effect to any materiality standard or SHLX Material Adverse Effect qualification) as of such specified date, except, in each case, to the extent that failure of such representations and warranties
to be true and correct would not, individually or in the aggregate, result in a SHLX Material Adverse Effect and (ii) Sections 4.1, 4.2, 4.4, and 4.5 shall be true and correct in all respects as of the date of this
Agreement and on the Closing Date as if made on such date. SHLX and Operating shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by it by the time
of the Closing. SHLX shall have delivered to SPLC a certificate, dated as of the Closing Date and signed by an authorized officer of the General Partner confirming the foregoing matters set forth in this Section 7.2(a) (the
“SHLX Closing Certificate”). 
 (b) All necessary filings with and consents, approvals, licenses, permits, orders and
authorizations of any Governmental Authority required for the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act, if applicable) shall have been made and obtained, and all waiting periods with
respect to filings made with Governmental Authorities in contemplation of the consummation of the transactions described herein shall have expired or been terminated. 

(c) All necessary consents of any Person not a party hereto, other than any Governmental Authority, required for the consummation of the
transactions contemplated in this Agreement shall have been made and obtained, including any consents set forth on Section 7.1(c) of the Disclosure Letter. 

  
 24 

 (d) No statute, rule, regulation, executive order, decree, temporary restraining order,
preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of the transactions
contemplated hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the consummation of the transactions
contemplated hereby or to recover Damages in connection herewith. 
 (e) Since the date of this Agreement, there shall not have occurred a
SHLX Material Adverse Effect. 
 (f) SHLX shall have delivered, or caused to be delivered, to SPLC all of the documents, certificates and
other instruments required to be delivered under, and otherwise complied with, the applicable provisions of Section 2.3. 

ARTICLE VIII 

INDEMNIFICATION 

Section 8.1 Indemnification of SHLX and Operating. 

Subject to the limitations set forth in this Agreement, SPLC shall indemnify, defend and hold SHLX and Operating, their subsidiaries and their
respective security holders, directors, officers and employees, and the officers, directors and employees of the General Partner, but otherwise excluding SPLC and its Affiliates (the “SHLX Indemnified Parties”), harmless from and
against any and all Damages suffered or incurred by any SHLX Indemnified Party as a result of or arising out of (a) any breach or inaccuracy of a representation or warranty of SPLC in this Agreement or in any other Transaction Document to which
SPLC is or will be a party and (b) any breach of any agreement or covenant on the part of SPLC made under this Agreement or in any other Transaction Document to which SPLC is or will be a party; provided however, that for purposes
of determining the amount of any Damages suffered or incurred by the SHLX Indemnified Parties in respect of a breach or inaccuracy of a representation or warranty of SPLC or a breach of any covenant or agreement on the part of SPLC, in each case in
respect of the business, operations, assets, liabilities or financial condition of Colonial or Explorer, Operating’s acquisition of only 10.125% of the ownership interests in Colonial and 25.97% of the ownership interests in Explorer shall be
taken into account, such that the aggregate Damages described in this Section 8.1 suffered or incurred by the SHLX Indemnified Parties, would equal (where applicable) no more than 10.125% or 25.97% of the total of such
Damages suffered by all shareholders in Colonial and Explorer, respectively. 
 Section 8.2 Indemnification
of SPLC. 
 Subject to the limitations set forth in this Agreement, SHLX and Operating, jointly and severally, shall indemnify,
defend and hold SPLC and its Affiliates (other than any SHLX Indemnified Parties) and their respective securityholders, directors, officers, agents, representatives and employees (the “SPLC Indemnified Parties”) harmless from and
against any 

  
 25 

 
and all Damages suffered or incurred by the SPLC Indemnified Parties as a result of or arising out of (a) any breach or inaccuracy of a representation or warranty of SHLX or Operating in
this Agreement or in any other Transaction Document to which SHLX or Operating is or will be a party or (b) any breach of any agreement or covenant on the part of SHLX or Operating made under this Agreement or in any other Transaction Document
to which SHLX or Operating is or will be a party . 
 Section 8.3 Survival. 

All the provisions of this Agreement shall survive the Closing, notwithstanding any investigation at any time made by or on behalf of any party
hereto, provided that the representations and warranties set forth in Article III and Article IV shall terminate and expire on the date that is eighteen (18) months following the Closing Date, except (a) the
representations and warranties of SPLC set forth in Section 3.8 (Environmental Matters) shall terminate and expire on the third (3rd) anniversary of the Closing Date,
(b) the representations and warranties of SPLC set forth in Section 3.1 (Organization), Section 3.2 (Authority and Approval), Section 3.4 (Capitalization; Title to
Subject Interests) and Section 3.11 (Brokerage Arrangements) shall terminate and expire on the second (2nd) anniversary of the Closing Date and (c) the
representations and warranties of SHLX and Operating set forth in Section 4.1 (Organization and Existence), Section 4.2 (Authority and Approval), Section 4.4 (Valid Issuance of Unit
Consideration) and Section 4.5 (Brokerage Arrangements) shall terminate and expire on the second (2nd) anniversary of the Closing Date. After a representation and
warranty has terminated and expired, no indemnification shall or may be sought pursuant to this Article VIII on the basis of that representation and warranty by any Person who would have been entitled pursuant to this Article VIII to
indemnification on the basis of that representation and warranty prior to its termination and expiration, provided that in the case of each representation and warranty that shall terminate and expire as provided in this
Section 8.3, no claim presented in writing for indemnification pursuant to this Article VIII on the basis of that representation and warranty prior to its termination and expiration shall be affected in any way by
that termination and expiration. The indemnification obligations under this Article VIII or elsewhere in this Agreement shall apply regardless of whether any suit or action results solely or in part from the active, passive
or concurrent negligence or strict liability of the indemnified party. The covenants and agreements entered into pursuant to this Agreement to be performed after the Closing shall survive the Closing. 

Section 8.4 Indemnification Procedures. 

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

(b) The indemnifying party shall have the right following receipt of notice from the indemnified party of a proceeding for which such person
may be entitled to indemnification hereunder to assume control of all aspects of the defense of (and any counterclaims with respect to) any claims brought against the indemnified party that are covered by the indemnification under this Article
IX, including the selection of counsel, the determination of whether to appeal 

  
 26 

 
any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided, however, that no such settlement for only the payment of money
shall be entered into without the consent of the indemnified party, which consent shall not be unreasonably withheld, conditioned or delayed, unless it includes a full release of the indemnified party from such claim; provided further, that
no such settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the indemnified party, which consent shall not be unreasonably delayed or withheld. Until the indemnifying party so
assumes control of the defense of any such claims, the indemnified party or indemnified parties may control all aspects of the defense of any such claims. 

(c) If the indemnifying party assumes the defense of any claim in respect of which an indemnified party intends to or has asserted a claim for
indemnification under this Agreement, then such indemnified party agrees to cooperate in good faith and in a commercially reasonably manner with the indemnifying party, with respect to all aspects of the defense of and pursuit of any counterclaims
with respect to any claims covered by the indemnification under this Article IX, including the prompt furnishing to the indemnifying party of any correspondence or other notice relating thereto that the indemnified party
may receive, permitting the name of the indemnified party to be utilized in connection with such defense and counterclaims, the making available to the indemnifying party of any files, records or other information of the indemnified party that the
indemnifying party considers relevant to such defense and counterclaims, the making available to the indemnifying party of any employees of the indemnified person and the granting to the indemnifying party of reasonable access rights to the
properties and facilities of the indemnified party; provided, however, that in connection therewith the indemnifying party agrees to use reasonable efforts to minimize the impact thereof on the operations of the indemnified party and
further agrees to maintain the confidentiality of all files, records and other information furnished by the indemnified party pursuant to this Section. The obligation of the indemnified party to cooperate with the indemnifying party as set forth in
the immediately preceding sentence shall not be construed as imposing upon the indemnified party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the
indemnification set forth in this Article VIII, provided, however, that if the indemnifying party has assumed the defense of any claim, the indemnified party may, at its own option, cost and expense, hire and pay for counsel in
connection with any such defense and counterclaims. The indemnifying party agrees to keep any such counsel hired by the indemnified party informed as to the status of any such defense or counterclaim, but the indemnifying party shall have the right
to retain sole control over such defense and counterclaims so long as the indemnified party is still seeking indemnification hereunder. 

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

  
 27 

 Section 8.5 Direct Claim. 

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

Section 8.6 Limitations on Indemnification. 

(a) To the extent that SHLX Indemnified Parties would otherwise be entitled to indemnification for Damages pursuant to
Section 8.1(a), SPLC shall be liable for Damages pursuant to Section 8.1(a) only if (i) the Damages with respect to any individual claim pursuant to Section 8.1(a)
exceed One Hundred Thousand Dollars ($100,000) and (ii) the Damages for all claims pursuant to Section 8.1(a) (excluding any claim excluded pursuant to the preceding clause (i) of this
Section 8.6(a)) exceed, in the aggregate, One Million Dollars ($1,000,000) (the “Deductible Amount”), and then SPLC shall be liable only for Damages pursuant to Section 8.1(a) to
the extent of any excess over the Deductible Amount. In no event shall SPLC’s aggregate liability to SHLX Indemnified Parties under (i) Section 8.1(a) exceed Eighty Million ($80,000,000) (the “Ceiling
Amount”) or Section 8.1(b) exceed the Consideration amount. Notwithstanding the foregoing, the Deductible Amount and the Ceiling Amount shall not apply to breaches or inaccuracies of representations and warranties
contained in Section 3.1 (Organization), Section 3.2 (Authority and Approval), Section 3.4 (Capitalization; Title to Subject Interests), and
Section 3.11 (Brokerage Arrangements), provided, that SPLC’s aggregate liability for all claims under this Agreement, including for breaches or inaccuracies of representations and warranties contained in such
sections described in this sentence and for breaches of covenants, shall not exceed the Consideration, absent fraud; provided, further, however, that the payment and indemnification obligations of SPLC pursuant to Article VI
shall not be subject to any limitation in this Section 8.6(a) and shall be excluded from the determination of whether the maximum indemnification amount specified in the immediately preceding proviso has been reached or
exceeded. 
 (b) For purposes of determining the amount of Damages, with respect to any asserted claim for indemnification by a SHLX
Indemnified Party, such determination shall be made without regard to any qualifier as to “material,” “materiality” or SPLC Material Adverse Effect expressly contained in Article III; provided that this
Section 8.6(b) shall not so modify the representations and warranties for purposes of first determining whether a breach of any representation or warranty has occurred. 

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

  
 28 

 Section 8.7 Sole Remedy. 

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

Section 9.1 Termination. 

(a) This Agreement and the transactions contemplated hereby may be terminated at any time prior to the Closing with the mutual written consent
of the parties. 
 (b) This Agreement and the transactions contemplated hereby will automatically terminate if the Closing has not occurred
on or before July 24, 2019, or such later date as may be agreed by the parties. 
 Section 9.2 Remedies
upon Termination. 
 (a) If this Agreement is terminated under Section 9.1, the parties shall then be
released from their respective obligations under this Agreement, except as provided in this Section 9.2 and in Article X. 

(b) If a Party fails, refuses, or is unable for any reason not permitted by this Agreement to comply with its obligations under this Agreement,
the non-defaulting Party may pursue any rights and remedies (including the rights and remedies available with respect to breaches of this Agreement prior to termination) under this Agreement, at law or in
equity. 
 ARTICLE X 

MISCELLANEOUS 

Section 10.1 Acknowledgements. 

Each party acknowledges that it has relied on the representations and warranties of the other party expressly and specifically set forth in
this Agreement, including, in the case of SHLX and Operating, the Disclosure Letter attached hereto. Such representations and warranties constitute the sole and exclusive representations and warranties of the parties hereto in connection with the
transactions contemplated hereby, and the parties hereto understand, acknowledge and agree that all other representations and warranties of any kind or nature, whether expressed, implied or statutory, oral or written, past or present, are
specifically disclaimed. 
 Section 10.2 Expenses. 

Except as otherwise provided herein and regardless of whether the transactions contemplated hereby are consummated, each party shall pay its
own expenses incident to this Agreement and all action taken in preparation for carrying this Agreement into effect. 

  
 29 

 Section 10.3 Notices. 

Any notice, request, instruction, correspondence or other document to be given hereunder by any party hereto to another party hereto (herein
collectively called “Notice”) shall be in writing and either delivered (i) in person or by courier service requiring acknowledgment of receipt of delivery or (ii) by e-mail, with
delivery deemed to have been duly given upon acknowledgment of receipt of e-mail, as follows: 
 If
to SPLC, addressed to: 
 Shell Pipeline Company LP 

150 N. Dairy Ashford Rd. 

Houston, Texas 77079 
 Attn: Vice
President — Finance 
 Email: 

With a copy to: Assistant General Counsel-Downstream Americas 

Email: 
 Facsimile: 

If to SHLX or Operating, addressed to: 

Shell Midstream Partners, L.P. 

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

150 N. Dairy Ashford Rd. 

Houston, Texas 77079 
 Attn: Chief
Executive Officer 
 Email: 

With a copy to: General Counsel 

Email: 
 Facsimile: 

Notice given by personal delivery or courier service shall be effective upon actual receipt. Any party may change any address to which Notice
is to be given to it by giving Notice as provided above of such change of address. 
 Section 10.4
Arbitration. 
 (a) Any dispute, controversy or claim arising out of or in connection with this Agreement or its subject matter
or formation, whether in tort, contract, under statute or otherwise, including any question regarding its existence, validity, interpretation, breach or termination, and including any non-contractual claim (a
“Dispute”), shall be finally and exclusively resolved by arbitration under the arbitration rules of the American Arbitration Association (the “Rules”), which Rules are deemed to be incorporated by reference into
this Agreement. 
 (b) The arbitral tribunal (the “Tribunal”) shall consist of three arbitrators, to be appointed in
accordance with the Rules. 
 (c) The seat of the arbitration shall be Houston, Texas. 

  
 30 

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

(e) Any award rendered by the Tribunal shall be made in writing and shall be final and binding on the parties to this Agreement. The parties to
this Agreement undertake to carry out the award without delay. 
 (f) All aspects of the arbitration shall be confidential. Save to the
extent required by law or pursuant to any proceedings to enforce or challenge an award, no aspect of the proceedings, documentation, any partial or final award or order or any other matter connected with the arbitration shall be disclosed to any
other person by either party or its counsel, agents, corporate parents, affiliates or subsidiaries without the prior written consent of the other party/parties. 

(g) Nothing in this Section 10.4 shall be construed as preventing any party from seeking conservatory or similar
interim relief from any court with competent jurisdiction. 
 (h) In respect of any Dispute, each party to this Agreement expressly waives
any right to claim or recover from the other party and the Tribunal is not empowered to award punitive, exemplary, moral, multiple or similar non-compensatory damages. 

(i) Articles 3 and 9 of the International Bar Association (IBA) Rules on the Taking of Evidence in International Arbitration shall apply to the
arbitration. 
 (j) Each party hereby waives, to the fullest extent permitted by law: (i) any right under the laws of any jurisdiction
to apply to any court or other judicial authority to determine any preliminary point of law, except as expressly provided in Section 10.4(g), and/or (ii) any right it may otherwise have under the laws of any
jurisdiction to appeal or otherwise challenge the award, other than on the same grounds on which recognition and enforcement of an award may be refused under Article V of the United Nations Convention on the Recognition and Enforcement of
Foreign Arbitral Awards of 1958. 
 (k) Judgment upon any award and/or order may be entered in any court having jurisdiction thereof. 

Section 10.5 Governing Law. 

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

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

  
 31 

 Section 10.6 Public Statements. 

The parties hereto shall consult with each other and no party shall issue any public announcement or statement with respect to this Agreement
or the transactions contemplated hereby without the consent of the other parties, unless the party desiring to make such announcement or statement, after seeking such consent from the other parties, obtains advice from legal counsel that a public
announcement or statement is required by Applicable Law or stock exchange regulations. 
 Section 10.7
Entire Agreement; Amendments and Waivers. 
 (a) This Agreement and the other Transaction Documents constitute the entire
agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Each party to this Agreement agrees that
no other party to this Agreement (including its agents and representatives) has made any representation, warranty, covenant or agreement to or with such party relating to this Agreement or the transactions contemplated hereby, other than those
expressly set forth herein and in the other Transaction Documents. 
 (b) No supplement, modification or waiver of this Agreement shall be
binding unless executed in writing by each party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such
waiver constitute a continuing waiver unless otherwise expressly provided. 
 Section 10.8 Conflicting
Provisions. 
 This Agreement and the other Transaction Documents, read as a whole, set forth the parties’ rights,
responsibilities and liabilities with respect to the transactions contemplated by this Agreement. In this Agreement and the other Transaction Documents, and as between them, specific provisions prevail over general provisions. In the event of a
conflict between this Agreement and any of the other Transaction Documents, this Agreement shall control. 

Section 10.9 Binding Effect and Assignment. 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns, but
neither this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned or transferred, by operation of law or otherwise, by any party hereto without the prior written consent of each other party. Nothing in this Agreement,
express or implied, is intended to confer upon any person or entity other than the parties hereto and their respective permitted successors and assigns, any rights, benefits or obligations hereunder, except for express language with respect to SHLX
Indemnified Parties and the SPLC Indemnified Parties contained in the indemnification provisions of Article IX. 

  
 32 

 Section 10.10 Severability. 

If any provision of this Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted
legislation or by decree of a court of last resort, the parties hereto shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but all of the remaining provisions of this Agreement shall
remain in full force and effect. 
 Section 10.11 Interpretation. 

It is expressly agreed by the parties that this Agreement shall not be construed against any party, and no consideration shall be given, or
presumption made, on the basis of who drafted this Agreement or any provision hereof or who supplied the form of this Agreement. Each Party agrees that this Agreement has been purposefully drawn and correctly reflects its understanding of the
transactions contemplated by this Agreement and, therefore, waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such
agreement or document. 
 Section 10.12 Headings and Disclosure Letter. 

The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or
to affect the meaning or interpretation of this Agreement. The Disclosure Letter and the Exhibits referred to herein are attached hereto and incorporated herein by this reference, and unless the context expressly requires otherwise, the Disclosure
Letter and such Exhibits are incorporated in the definition of “Agreement.” 
 Section 10.13
Multiple Counterparts. 
 This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 Section 10.14 Action by
SHLX. 
 With respect to any action, notice, consent, approval or waiver that is required to be taken or given or that may be taken
or given by SHLX with respect to the transactions contemplated hereby, such action, notice, consent, approval or waiver shall be taken or given solely by the Conflicts Committee on behalf of SHLX. 

[Signature page follows.] 

  
 33 

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

			
	SPLC:
	
	Shell Pipeline Company LP
		
	By:	 	Shell Pipeline GP LLC,
		 	its general partner
		
	By:	 	 /s/ Shawn J. Carsten

	Name:	 	Shawn J. Carsten
	Title:	 	Vice President — Finance

 
			
	SHLX:
	
	Shell Midstream Partners, L.P.
		
	By:	 	Shell Midstream Partners GP LLC, its general partner
		
	By:	 	 /s/ Kevin M. Nichols

	Name:	 	Kevin M. Nichols
	Title:	 	President and Chief Executive Officer
	
	OPERATING:
	
	Shell Midstream Operating LLC
		
	By:	 	 /s/ Kevin M. Nichols

	Name:	 	Kevin M. Nichols
	Title:	 	President and Chief Executive Officer

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