Document:

exv10w1

 

Exhibit
10.1

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of July 2, 2007, is
entered into by and among SPECTRA ENERGY PARTNERS, LP, a Delaware limited partnership
(“MLP”), SPECTRA ENERGY PARTNERS OLP, LP, a Delaware limited partnership (“OLP”),
SPECTRA ENERGY PARTNERS GP, LLC, a Delaware limited liability company (“SEP GP LLC”),
SPECTRA ENERGY PARTNERS OLP GP, LLC, a Delaware limited liability company (“OLP GP”),
SPECTRA ENERGY PARTNERS (DE) GP, LP, a Delaware limited partnership (“SEP GP LP”), SPECTRA
ENERGY TRANSMISSION, LLC, a Delaware limited liability company (“SET”), SPECTRA ENERGY
SOUTHEAST PIPELINE CORP, a Delaware corporation (“SESPC”), SPECTRA ENERGY CAPITAL LLC, a
Delaware limited liability company (“Spectra Capital”), EAST TENNESSEE NATURAL GAS, LLC, a
Tennessee limited liability company (“East Tennessee”), EGAN HUB STORAGE, LLC, a Delaware
limited liability company (“Egan”), MOSS BLUFF HUB LLC, a Delaware limited liability
company (“Moss Bluff”) and MARKET HUB PARTNERS HOLDING, LLC, a Delaware limited liability
company (“Market Hub”). The parties to this agreement are collectively referred to herein
as the “Parties.” Capitalized terms used herein shall have the meanings assigned to such
terms in Section 1.1.

RECITALS

     WHEREAS, SET and SEP GP LP have formed MLP, pursuant to the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business
activity that is approved by SEP GP LP and that lawfully may be conducted by a limited partnership
organized pursuant to the Delaware LP Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, the
following actions have been taken prior to the date hereof:

          1. SET formed SEP GP LLC, under the terms of the Delaware Limited Liability Company Act (the
“Delaware LLC Act”) and contributed $1,000 in exchange for all of the member interests in
SEP GP LLC.

          2. SEP GP LLC and SET formed SEP GP LP, under the terms of the Delaware LP Act, to which SEP
GP LLC contributed $10.00 and SET contributed $990.00 in exchange for a 1.00% general partner
interest and 99.00% limited partner interest, respectively.

          3. SEP GP LP and SET formed MLP, under the terms of the Delaware LP Act, to which SEP GP LP
contributed $60 and SET contributed $2,940 in exchange for a 2% general partner interest and 98%
limited partner interest (the “SET MLP Interest”), respectively.

          4. MLP formed OLP GP under the terms of the Delaware LLC Act, and contributed $1,000 in
exchange for all of the member interests in OLP GP.

 

 

          5. OLP GP and MLP formed OLP, under the terms of the Delaware LP Act, to which OLP GP
contributed $0.01 and MLP contributed $999.99 in exchange for a 0.001% general partner interest and
99.999% limited partner interest, respectively.

          6. SET formed Spectra Energy MHP Holding, LLC, a Delaware limited liability company (“SET
MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for all of
the member interests in SET MHP.

          7. SET formed Spectra Energy Southeast MHP Holding, LLC, a Delaware limited liability company
(“SESPC MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in SESPC MHP.

          8. SET formed Spectra Energy Partners MHP Holding, LLC, a Delaware limited liability company
(“SEP MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in SEP MHP.

          9. SET formed Spectra GP MHP Holding, LLC, a Delaware limited liability company (“GP
MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for all of
the member interests in GP MHP.

          10. Market Hub formed Moss Bluff under the terms of the Delaware LLC Act and contributed
$1,000 in exchange for all of the member interests in Moss Bluff.

          11. Moss Bluff Hub Partners, L.P. merged with and into Moss Bluff under the terms of the
Delaware LLC Act and Delaware LP Act with Moss Bluff surviving.

          12. Moss Bluff Hub Partners, L.L.C. dissolved under the terms of the Delaware LLC Act and
liquidated its assets into Market Hub.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following matters shall occur:

          1. Each of East Tennessee, Egan and Moss Bluff will distribute approximately all of their cash
and accounts receivable as of the closing of the Offering
(“Closing Time”) to their
respective equity owners, and each such equity owner will in turn distribute these accounts
receivable to their equity owners, and this process of distributions will continue until such
accounts receivable are distributed to SET.

          2. Market Hub will distribute all of its member interests in Copiah Storage LLC, a Delaware
limited liability company (“Copiah”), and Spectra Energy County Line, LLC, a Delaware
limited liability company (“County Line”), and all of its stock in TPC Storage Holding
Corp., a Delaware corporation (“TPC”), to SET.

          3. SESPC, MLP and East Tennessee, will enter into an indemnity agreement pursuant to which MLP
will indemnity East Tennessee for $150 million in indebtedness and SESPC will in turn indemnify MLP
for the same amount.

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          4. SET will convey its limited partner interests in SEP GP LP and MLP to SESPC as a capital
contribution.

          5. SET will convey a 0.1% member interest in Market Hub to SESPC MHP as a capital
contribution.

          6. SET will convey a 49.9% member interest in Market Hub to SET MHP as a capital contribution.

          7. SET will convey a member interest in Market Hub to GP MHP with a value equal to (a) 1% of
2% of the sum of the equity value of MLP at the Closing plus (b) the amount of any cash distributed
or conveyed as part of a redemption to SEP GP LP by MLP at the Closing (the “Market Hub GP
Interest”) as a capital contribution.

          8. SET will convey a member interest in Market Hub to SEP MHP with a value equal to 50% of
Market Hub less the Market Hub GP Interest (the “Market Hub Remainder Interest”) as a
capital contribution.

          9. SET will convey a 100% member interest in GP MHP to SEP GP LLC as a capital contribution.

          10. SET will convey a 100% member interest in East Tennessee to SESPC as a capital
contribution.

          11. SET will convey (a) its 100% interest in SESPC MHP to SESPC as a capital contribution and
(b) its 100% membership interest in SEP MHP to MLP in exchange for the right to receive (i)
7,712,852 Common Units in MLP (representing a 11.41% interest) and (ii) 5,037,637 Sub Units in MLP
(representing a 7.45% interest) (the “Deferred Consideration”) and the right to receive
$25,707,958 to reimburse SET for certain capital expenditures.

          12. SEP GP LLC will convey a 100% membership interest in GP MHP to SEP GP LP as a capital
contribution and in exchange for the right to receive $292,042 to reimburse SEP GP LLC for certain
capital expenditures related to Market Hub.

          13. SESPC will convey a membership interest in Gulfstream Natural Gas System, L.L.C., a
Delaware limited liability company (“Gulfstream”), to SEP GP LP with a value equal to (a) 99% of 2%
of the sum of the equity value of MLP at the Closing plus (b) the amount of any cash distributed or
conveyed as part of a redemption to SEP GP LP by MLP at the Closing (the “Gulfstream GP
Interest” and together with SEP GP LP’s 100% interest in GP MHP, the “Interest”)) as a
capital contribution.

          14. Market Hub will file a certificate of conversion with the Delaware Secretary of State to
convert into a general partnership named Market Hub Partners Holding (“Market Hub GP”)
under the Delaware Revised Uniform Partnership Act.

          15. SEP GP LP will contribute the Interest to MLP in exchange for (a) a continuation of its 2%
general partner interest in MLP, (b) 1,500,000 Common Units, (c) the

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issuance of the IDRs of MLP,
(d) the right to receive $318,987,500 sourced to new indebtedness
recourse to SEP GP LP (the “Initial Recourse Debt”) and (e) the right to receive
$292,042 to reimburse SEP GP LP for certain capital expenditures.

          16. SESPC will contribute its 100% member interests in East Tennessee and a member interest in
Gulfstream equal to 24.5% of Gulfstream less the Gulfstream GP Interest (the “Gulfstream
Remainder Interest”) to MLP in exchange for (a) 25,417,028 Common Units in MLP (representing a
37.59% interest) and (b) 16,601,093 Sub Units in MLP (representing a 24.55% interest).

          17. SET will receive, in exchange for the interest it conveyed in paragraph 12 above (a) the
Deferred Compensation and (b) the right to receive $25,707,958 to reimburse SET for certain capital
expenditures.

          18. MLP will redeem and cancel the SET MLP Interest in exchange for $2,940 payable to SESPC.

          19. The public, through the Underwriters, will contribute $253.0 million in cash, less the net
amount of $15,812,500 payable to the Underwriters after taking into account the Underwriters’
discount, the structuring fees payable to Citigroup Global Markets Inc. (“Citigroup”) and Lehman
Brothers Inc. (“Lehman”) and the Underwriters’ reimbursement of certain expenses incurred by MLP in
connection with the Offering, in exchange for 11,500,000 Common Units in MLP (representing a 17.0%
interest).

          20. MLP will (a) pay transaction expenses associated with the transactions contemplated by
this Agreement in the amount of approximately $7.2 million (exclusive of the Underwriter’s spread
but including debt placement costs), (b) distribute $25,707,958 to SET to reimburse SET for certain
capital expenditures, (c) distribute $292,042 to SEP GP LP to reimburse SEP GP LP for certain
capital expenditures, (d) contribute $10.0 million in the aggregate to OLP to replenish working
capital (of which 0.001% of such contribution will be made to OLP on behalf of OLP GP), and (e)
contribute $194.0 million in cash and its membership interests in East Tennessee, Gulfstream, SEP
MHP and GP MHP to OLP as a capital contribution (of which 0.001% of such contribution will be made
to OLP on behalf of OLP GP).

          21. GP MHP will merge with and into SEP MHP under the Delaware LLC Act with SEP MHP surviving.

          22. OLP will buy U.S. Treasury securities or other qualifying securities permitted to be
pledged as collateral pursuant to the terms of the Term Loan Capacity under the Credit Agreement
(the “Securities”) for $194.0 million in cash and will incur the Initial Recourse Debt by
borrowing $319.0 million from lenders using the Securities as collateral security for all of the
borrowings under the Term Loan Capacity under the Credit Agreement with MLP guaranteeing the
Initial Recourse Debt.

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          23. OLP will distribute the borrowed funds of $319.0 million to MLP (of which 0.001% of such
distribution will be made to MLP on behalf of OLP GP) and MLP, in turn, will distribute the funds
(less the Redemption Price) to SEP GP LP.

          24. MLP will redeem from SEP GP LP 1,500,000 Common Units in exchange for a distribution of
borrowed funds of $30.94 million (the “Redemption Price”).

          25. SEP GP LP will loan the funds to Spectra Capital distributed to it and provided to it as
part of the Redemption Price pursuant to the preceding paragraphs 23 and 24.

          26. SEP GP LP will distribute $292,042 to SEP GP LLC to reimburse it for certain capital
expenditures and SEP GP LLC will in turn distribute such cash to SET.

          27. The partnership agreements, agreements of limited partnership and the limited liability
company agreements of the aforementioned entities will be amended and restated to the extent
necessary to reflect the applicable matters set forth above and as may be contained in this
Agreement.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE 1

DEFINITIONS

          Section 1.1 The following capitalized terms shall have the meanings given below.

          (a) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

          (b) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

          (c) “Credit Agreement” means the $500 million Credit Agreement, dated as of May 24,
2007, among the OLP as the borrower, MLP as the parent guarantor and Wachovia Bank, National
Association as administrative agent for the lenders named therein.

          (d) “Effective Time” shall mean 8:00 a.m. New York, New York time on July 2, 2007.

          (e) “IDRs” means “Incentive Distribution Rights” as such term is defined in the
Partnership Agreement.

          (f) “MLP” has the meaning assigned to such term in the opening paragraph of this
Agreement.

          (g) “Offering” means the initial public offering by MLP of Common Units.

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          (h) “Omnibus Agreement” means that certain Omnibus Agreement of even date herewith,
among SET, SEP GP LLC, SEP GP LP and MLP.

          (i) “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Spectra Energy Partners, LP dated as of July 2, 2007.

          (j) “Partnership Group” has the meaning assigned to such term in the Omnibus
Agreement.

          (k) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-141687) filed by MLP relating to the Offering.

          (l) “Sub Unit” means “Subordinated Unit” as such term is defined in the Partnership
Agreement.

          (m) “Term Loan Capacity” means the term loan capacity under the Credit Agreement.

          (n) “Underwriters” means Citigroup Global Markets Inc., Lehman Brothers Inc., Merrill,
Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, Wachovia Capital Markets, LLC, A.G.
Edwards & Sons, Inc. and Raymond James & Associates, Inc.

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

          Section 2.1 Distribution of Working Capital Assets by East Tennessee. East Tennessee
hereby distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to SET,
its successors and assigns, for its use forever, all of its cash and accounts receivable as of the
Closing Time. SET hereby accepts such cash and accounts receivable as a distribution.

          Section 2.2 Distribution of Working Capital Assets by Egan. Egan hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and
assigns, for its use forever, all of its cash and accounts receivable as of the Closing Time. SET
hereby accepts such cash and accounts receivable as a distribution.

          Section 2.3 Distribution of Working Capital Assets by Moss Bluff. Moss Bluff hereby
distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its
successors and assigns, for its use forever, all of its cash and accounts receivable as of the
Closing Time. SET hereby accepts such cash and accounts receivable as a distribution.

          Section 2.4 Distribution of Copiah by Market Hub. Market Hub hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and
assigns, for its use forever, all right, title and interest in and to all of its member interest in
Copiah. SET hereby accepts such member interest in Copiah as a distribution.

          Section 2.5 Distribution of County Line by Market Hub. Market Hub hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its

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successors and
assigns, for its use forever, all right, title and interest in and to all of its member interest in
County Line. SET hereby accepts such member interest in County Line as a distribution.

          Section 2.6 Distribution of TPC by Market Hub. Market Hub hereby distributes, grants,
bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and assigns,
for its use forever, all right, title and interest in and to all of its shares of TPC common stock.
SET hereby accepts such shares of common stock in TPC as a distribution.

          Section 2.7 Indemnification by MLP and SESPC of East Tennessee Indebtedness. The
Parties acknowledge that MLP, SESPC and East Tennessee have entered into indemnity agreements
pursuant to which MLP will indemnify East Tennessee for $150 million in indebtedness and SESPC will
indemnify MLP for the same amount.

          Section 2.8 Conveyance of SEP GP LP Limited Partner Interest to SESPC. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its limited partner interest in SEP GP LP, as a capital contribution, and SESPC hereby
accepts such limited partner interest in SEP GP LP as a contribution to the capital of SESPC.

          Section 2.9 Conveyance of MLP Limited Partner Interest to SESPC. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its successors
and assigns, for its and their own use forever, all right, title and interest in and to all of its
limited partner interest in MLP, as a capital contribution, and SESPC hereby accepts such limited
partner interest in MLP as a contribution to the capital of SESPC.

          Section 2.10 Conveyance of 0.1% Market Hub Member Interest to SESPC MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC MHP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to a 0.1% member interest in Market Hub, as a capital contribution, and SESPC MHP hereby accepts
such member interest in Market Hub as a contribution to the capital of SESPC MHP.

          Section 2.11 Conveyance of 49.9% Market Hub Member Interest to SET MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SET MHP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
a 49.9% member interest in Market Hub, as a capital contribution, and SET MHP hereby accepts such
member interest in Market Hub as a contribution to the capital of SET MHP.

          Section 2.12 Conveyance of Market Hub GP Interest to GP MHP. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to GP MHP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of the Market Hub GP Interest, as a capital contribution, and GP MHP hereby accepts such member
interest in Market Hub as a contribution to the capital of GP MHP.

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          Section 2.13 Conveyance of Market Hub Remainder Interest to SEP MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP MHP, its
successors and assigns, for its and their own use forever, all right, title and interest
in and to all of the Market Hub Remainder Interest, as a capital contribution, and SEP MHP
hereby accepts such member interest in Market Hub as a contribution to the capital of SEP MHP.

          Section 2.14 Conveyance of GP MHP Member Interest to SEP GP LLC. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LLC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its member interest in GP MHP, as a capital contribution, and SEP GP LLC hereby accepts such
member interest in GP MHP as a contribution to the capital of SEP GP LLC.

          Section 2.15 Conveyance of East Tennessee Member Interest to SESPC. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its member interest in East Tennessee, as a capital contribution, and SESPC hereby accepts
such member interest in East Tennessee as a contribution to the capital of SESPC.

          Section 2.16 Conveyance of SESPC MHP to SESPC. SET hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its successors and assigns,
for its and their own use forever, all right, title and interest in and to all of its member
interest in SESPC MHP, as a capital contribution, and SESPC hereby accepts such member interest in
SESPC MHP as a contribution to the capital of SESPC.

          Section 2.17 Conveyance of SEP MHP to MLP. SET hereby grants, contributes, bargains,
conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and
their own use forever, all right, title and interest in and to all of its member interest in SEP
MHP, as a capital contribution, in exchange for the right to receive the Deferred Consideration and
the right to receive $25,707,958 to reimburse SET for certain capital expenditures, and MLP hereby
accepts such member interests in SEP MHP as a contribution to the capital of MLP.

          Section 2.18 Conveyance of GP MHP Member Interest to SEP GP LP. SEP GP LLC hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to all of its member interest in GP MHP, as a capital contribution, in exchange for the right to
receive $292,042 to reimburse SEP GP LLC for certain capital expenditures, and SEP GP LP hereby
accepts such member interest in GP MHP as a contribution to the capital of SEP GP LP.

          Section 2.19 Contribution of Gulfstream GP Interest to SEP GP LP. SESPC hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to the Gulfstream GP Interest, as a capital contribution, and SEP GP LP hereby accepts such
interest as a contribution to the capital of SEP GP LP.

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          Section 2.20 Conversion of Market Hub to Market Hub GP. The Parties acknowledge that
Market Hub has adopted a certificate of conversion and pursuant thereto has converted to Market Hub
GP.

          Section 2.21 Contribution of the Interest by SEP GP LP to MLP. SEP GP LP hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
the Interest, as a capital contribution, in exchange for (a) a continuation of its 2% general
partner interest in MLP, (b) 1,500,000 Common Units, (c) the issuance of the IDRs, (d) the right to
receive the proceeds of the Initial Recourse Debt and (e) the right to receive $292,042 to
reimburse it for certain capital expenditures, and MLP hereby accepts the Interest as a
contribution to the capital of MLP.

          Section 2.22 Contribution of East Tennessee Member Interest and Gulfstream Remainder
Interest to MLP. SESPC hereby grants, contributes, bargains, conveys, assigns, transfers, sets
over and delivers to MLP, its successors and assigns, for its and their own use forever, all right,
title and interest in and to all of its member interest in East Tennessee and the Gulfstream
Remainder Interest, as a capital contribution, in exchange for the right to receive (a) 25,417,028
Common Units, representing a 37.59% interest in MLP and (b) 16,601,043 Sub Units, representing a
24.55% interest in MLP, and MLP hereby accepts such member interest in East Tennessee and the
Gulfstream Remainder Interest as a contribution to the capital of MLP.

          Section 2.23 Payment of Deferred Consideration. The Parties acknowledge the issuance
by MLP to SET of the Deferred Consideration in accordance with its right to receive it pursuant to
Section 2.17.

          Section 2.24
Redemption of SET MLP Interest; Distribution to SEP GP LP. MLP hereby
redeems the SET MLP Interest from SESPC and retires the SET MLP Interest in exchange for a payment
in cash to SESPC equal to an aggregate $2,940.

          Section 2.25 Public Cash Contribution. The Parties acknowledge a capital contribution
by the public through the Underwriters to MLP of $253.0 million in cash ($237.2 million net to MLP
after taking into account the Underwriters’ discount and the structuring fees payable to Citigroup
and Lehman and the Underwriters’ reimbursement of certain expenses incurred by MLP in connection
with the Offering) in exchange for 11,500,000 Common Units, representing a 17% interest in MLP.

          Section 2.26 Payment of Transaction Costs. The Parties acknowledge (a) the payment by
MLP, in connection with the transactions contemplated by this Agreement, of transaction expenses in
the amount of approximately $7.2 million (exclusive of the Underwriter’s spread but including debt
placement costs), (b) the distribution by MLP of $25,707,958 to SET to reimburse it for certain
capital expenditures pursuant to Section 2.17 above, (c) the distribution by MLP of $292,042 to SEP
GP LP to reimburse it for certain capital expenditures and (d) the contribution by MLP of
approximately $10.0 million to OLP (of which 0.001% is being contributed on behalf of OLP GP) to
replenish working capital.

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          Section 2.27 Contribution of Member Interest in Gulfstream, East Tennessee, SEP MHP, GP
MHP and Cash to OLP. MLP hereby grants, contributes, bargains, conveys, assigns, transfers,
sets over and delivers to OLP, its successors and assigns, for its and their own use forever, all
right, title and interest in and to its member interest in Gulfstream, East
Tennessee, SEP MHP and GP MHP and $194.0 million in cash (of which 0.001% is being contributed
on behalf of OLP GP), as a capital contribution, and OLP hereby accepts such member interests and
cash as a contribution to the capital of OLP.

          Section 2.28 Merger of GP MHP with and into SEP MHP. The Parties acknowledge that GP
MHP has adopted a certificate and plan of merger and pursuant thereto has merged with and into SEP
MHP with SEP MHP surviving.

          Section 2.29 Purchase of Securities by OLP and Incurrence of Initial Recourse Debt by
OLP. The Parties acknowledge (a) the purchase by OLP of $194.0 million in principal amount of
Securities, (b) the incurrence of the Initial Recourse Debt by OLP, (c) the pledge of the
Securities referred to in clause (a) of this Section 2.29 as collateral for the borrowings under
the Term Loan Capacity under the Credit Agreement and (d) the guarantee of the Initial Recourse
Debt by MLP.

          Section 2.30 Distribution of Proceeds from Initial Recourse Debt by OLP to MLP. OLP
hereby distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to MLP,
its successors and assigns, for its use forever, all right, title and interest in and to cash in an
amount equal to the principal amount of the Initial Recourse Debt (of which 0.001% of such
distribution is being made on behalf of OLP GP).

          Section 2.31 Distribution of Cash by MLP to SEP GP LP. MLP hereby distributes, grants,
bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LP, its successors and
assigns, for its and their own use forever, all right, title and interest in and to cash in an
amount equal to the amount to be received by MLP pursuant to Section 2.30 less the Redemption
Price.

          Section 2.32 Redemption of Common Units. MLP hereby redeems 1,500,000 Common Units
held by SEP GP LP in exchange for the distribution of borrowed funds equal to the Redemption Price.

          Section 2.33 Loan of Cash by SEP GP LP to Spectra Capital. SEP GP LP hereby loans to
Spectra Capital cash in an amount equal to the aggregate amount received by SEP GP LP pursuant to
Sections 2.31 and 2.32 and, in connection therewith, Spectra Capital agrees to execute a promissory
note in the form attached hereto as Exhibit A as completed to reflect the principal amount
of the loan from SEP GP LP to Spectra Capital.

          Section 2.34 Distribution of Cash by SEP GP LP to SEP GP LLC. SEP GP LP hereby
distributes $292,042 to SEP GP LLC to reimburse it for certain capital expenditures, and SEP GP
LLC, in turn, will distribute the funds to SET.

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ARTICLE 3

ADDITIONAL TRANSACTIONS

[Intentionally omitted].

ARTICLE 4

TITLE MATTERS

          Section 4.1 Encumbrances.

          (a) Except to the extent provided in any other document executed in connection with this
Agreement or the Offering, the contribution and conveyance (by operation of law or otherwise) of
the various physical assets owned as reflected in this Agreement (collectively, the
“Assets”) are made expressly subject to all recorded and unrecorded liens (other than
consensual liens), encumbrances, agreements, defects, restrictions, adverse claims and all laws,
rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals
having or asserting jurisdictions over the Assets and operations conducted thereon or in connection
therewith, in each case to the extent the same are valid and enforceable and affect the Assets,
including all matters that a current survey or visual inspection of the Assets would reflect.

          (b) To the extent that certain jurisdictions in which the Assets are located may require that
documents be recorded in order to evidence the transfers of title reflected in this Agreement, then
the provisions set forth in Section 4.1(a) immediately above shall also be applicable to the
conveyances under such documents.

          Section 4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION THE OMNIBUS AGREEMENT, THE
PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY
SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS,
AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR
STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR CONDITION
OF THE ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL CONDITION OF
THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON
THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE ASSETS FOR ANY
AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE ASSETS
OR THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR

11

 

FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT THE RESPECTIVE ASSETS, AND EACH IS RELYING
SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO
BE PROVIDED BY ANY OF THE PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE
OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE ASSETS FURNISHED BY ANY AGENT,
EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE
OMNIBUS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW,
THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN IS MADE IN AN “AS IS”, “WHERE IS” CONDITION
WITH ALL FAULTS, AND THE ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS
CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND CONVEYANCE OR THE
TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES
AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY
REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS
THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN
THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING, INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT.

          (b) The contributions of the Assets made under this Agreement are made with full rights of
substitution and subrogation of the respective parties receiving such contributions, and all
persons claiming by, through and under such parties, to the extent assignable, in and to all
covenants and warranties by the predecessors-in-title of the parties contributing the Assets, and
with full subrogation of all rights accruing under applicable statutes of limitation and all rights
of action of warranty against all former owners of the Assets.

          (c) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any exhibits hereto are hereby expressly disclaimed,
waived or negated.

12

 

          (d) Each of the Parties hereby waives compliance with any applicable bulk sales law or any
similar law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

ARTICLE 5

FURTHER ASSURANCES

          Section 5.1 Further Assurances. From time to time after the Effective Time, and
without any further consideration, the Parties agree to execute, acknowledge and deliver all such
additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases,
acquittances and other documents, and will do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate (a) more fully to assure that the
applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers
and privileges granted by this Agreement, or which are intended to be so granted, or (b) more fully
and effectively to vest in the applicable Parties and their respective successors and assigns
beneficial and record title to the interests contributed and assigned by this Agreement or intended
so to be and to more fully and effectively carry out the purposes and intent of this Agreement.

          Section 5.2 Other Assurances. From time to time after the Effective Time, and without
any further consideration, each of the Parties shall execute, acknowledge and deliver all such
additional instruments, notices and other documents, and will do all such other acts and things,
all in accordance with applicable law, as may be necessary or appropriate to more fully and
effectively carry out the purposes and intent of this Agreement. Without limiting the generality
of the foregoing, the Parties acknowledge that the parties have used their good faith efforts to
attempt to identify all of the assets being contributed to MLP or its subsidiaries as required in
connection with the Offering. However, due to the age of some of those assets and the difficulties
in locating appropriate data with respect to some of the assets it is possible that assets intended
to be contributed to MLP or its subsidiaries were not identified and therefore are not included in
the assets contributed to MLP or its subsidiaries. It is the express intent of the Parties that
MLP or its subsidiaries own all assets necessary to operate the assets that are identified in this
Agreement and in the Registration Statement. To the extent any assets were not identified but are
necessary to the operation of assets that were identified, then the intent of the Parties is that
all such unidentified assets are intended to be conveyed to the appropriate members of the
Partnership Group. To the extent such assets are identified at a later date, the Parties shall
take the appropriate actions required in order to convey all such assets to the appropriate members
of the Partnership Group. Likewise, to the extent that assets are identified at a later date that
were not intended by the parties to be conveyed as reflected in the Registration Statement, the
Parties shall take the appropriate actions required in order to convey all such assets to the
appropriate party.

ARTICLE 6

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement

13

 

shall
be effective and operative in accordance with Section 7.1, without further action by any party
hereto.

ARTICLE 7

MISCELLANEOUS

          Section 7.1 Order of Completion of Transactions. The transactions provided for in
Article 2 and Article 3 of this Agreement shall be completed immediately following the Effective
Time in the following order: first, the transactions provided for in Article 2 shall be completed
in the order set forth therein; and second, following the completion of the transactions as
provided in Article 2, the transactions, if they occur, provided for in Article 3 shall be
completed.

          Section 7.2 Costs. Except for the transaction costs set forth in Section 2.26, OLP
shall pay all expenses, fees and costs, including but not limited to, all sales, use and similar
taxes arising out of the contributions, conveyances and deliveries to be made hereunder and shall
pay all documentary, filing, recording, transfer, deed, and conveyance taxes and fees required in
connection therewith. In addition, OLP shall be responsible for all costs, liabilities and
expenses (including court costs and reasonable attorneys’ fees) incurred in connection with the
implementation of any conveyance or delivery pursuant to Section 5.1 or Section 5.2.

          Section 7.3 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement,
term or matter shall not be construed to limit such statement, term or matter to the specific items
or matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

          Section 7.4 Successors and Assigns. The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

          Section 7.5 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

14

 

          Section 7.6 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on the parties hereto.

          Section 7.7 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and to be performed
wholly within such state without giving effect to conflict of law principles thereof.

          Section 7.8 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid and an equitable adjustment shall
be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

          Section 7.9 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an Amendment to this Agreement.

          Section 7.10 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to their subject matter. This document and such instruments contain the entire
understanding of the Parties with respect to the subject matter hereof and thereof. No
understanding, representation, promise or agreement, whether oral or written, is intended to be or
shall be included in or form part of this Agreement unless it is contained in a written amendment
hereto executed by the parties hereto after the date of this Agreement.

          Section 7.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

15

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS, LP	 
	 
	 	By: 	Spectra Energy Partners (DE) GP, LP,
 its general
partner	 
	 
	 	By: 	Spectra Energy Partners GP, LLC, 
its
general partner	 
	 
	 	By:  	/s/
C. Gregory Harper 	 
	 	 	Name:  	C. Gregory Harper 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS (DE) GP, LP
 	 
	 	By:  	Spectra Energy Partners GP, LLC,
its
general partner
 
	 
	 	By:  	/s/
C. Gregory Harper 	 
	 	 	Name:  	C. Gregory Harper 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS GP, LLC

 	 
	 	By:  	/s/
C. Gregory Harper 	 
	 	 	Name:  	C. Gregory Harper 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS OLP, LP

	 
	 	By:  	Spectra Energy Partners OLP GP, LLC, its

    general partner

 	 
	 	By:  	/s/
C. Gregory Harper 	 
	 	 	Name:  	C. Gregory Harper 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS OLP GP, LLC

 	 
	 	By:  	
/s/ C. Gregory Harper 	 
	 	 	Name:  	C. Gregory Harper 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY TRANSMISSION, LLC

 	 
	 	By:  	/s/
Martha B. Wyrsch 	 
	 	 	Name:  	Martha B. Wyrsch 	 
	 	 	Title:  	President
and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY SOUTHEAST PIPELINE CORP

 	 
	 	By:  	/s/
William S. Garner, Jr. 	 
	 	 	Name:  	William S. Garner, Jr. 	 
	 	 	Title:  	Vice
President, General Counsel and Secretary 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

	 	 	 	 	 
	 	SPECTRA ENERGY CAPITAL LLC

 	 
	 	By:  	/s/
Sabra L. Harrington 	 
	 	 	Name:  	Sabra L. Harrington 	 
	 	 	Title:  	Vice
President, Chief Financial Officer and Controller 	 
	 

	 	 	 	 	 
	 	EAST TENNESSEE NATURAL GAS, LLC

 	 
	 	By:  	/s/
William S. Garner, Jr. 	 
	 	 	Name:  	William S. Garner, Jr. 	 
	 	 	Title:  	Vice
President, General Counsel and Secretary 	 
	 

	 	 	 	 	 
	 	MARKET HUB PARTNERS HOLDING, LLC

 	 
	 	By:  	/s/
William S. Garner, Jr. 	 
	 	 	Name:  	William S. Garner, Jr. 	 
	 	 	Title:  	Vice
President, General Counsel and Secretary 	 
	 

	 	 	 	 	 
	 	MOSS BLUFF HUB LLC

 	 
	 	By:  	/s/
William S. Garner, Jr. 	 
	 	 	Name:  	William S. Garner, Jr. 	 
	 	 	Title:  	Vice
President, General Counsel and Secretary 	 
	 

	 	 	 	 	 
	 	EGAN HUB STORAGE, LLC

 	 
	 	By:  	/s/
William S. Garner, Jr. 	 
	 	 	Name:  	William S. Garner, Jr. 	 
	 	 	Title:  	Vice
President, General Counsel and Secretary 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

Exhibit A

PROMISSORY NOTE

			
	$318,987,500
	 	July 2, 2007

     FOR VALUE RECEIVED, the undersigned, Spectra Energy Capital LLC a Delaware limited liability
company (the “Borrower”), promises to pay to the order of Spectra Energy Partners (DE) GP, LP, a
Delaware limited partnership (the “Lender”), at its office at 5400 Westheimer Court, Houston, Texas
77056 ON DEMAND, the principal sum of THREE HUNDRED EIGHTEEN MILLION NINE HUNDRED EIGHTY
SEVEN THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($318,987,500.00), together with interest on the
principal amount from time to time outstanding hereunder payable without necessity for demand
therefor, as set forth herein.

     The Lender shall record on its books or records the principal amount of this Note and the
principal balances from time to time outstanding. The record thereof shall be prima facie evidence
as to all such amounts; provided, however, that the failure of the Lender to record any of the
foregoing shall not limit or otherwise affect the obligation of the Borrower to repay amounts owing
under this Note.

     Interest on the principal amount from time to time outstanding hereunder shall accrue at an
interest rate equal to the greater of 5.0% per annum or at the applicable short-term federal rate
in effect under Section 1274(d) of the Internal Revenue Code of 1986, as amended, for the period in
which interest is being accrued; provided, however, that upon the occurrence and during the
continuance of any default by the Borrower in the payment of any amount due under this Note,
interest shall accrue and be payable by the Borrower on such unpaid amount at a rate per annum
equal to two percentage points above the rate otherwise applicable as set forth herein. Interest
shall be due and payable on January 1, April 1, July 1 and October 1 of each year commencing on the
date of this Note until paid or on the date on which the outstanding principal amount of this Note
shall become due and payable upon demand or by acceleration. Interest shall be computed on the
basis of a year of 365 (or 366, as the case may be) days and for the actual number of days elapsed
(including the first day but excluding the last day) occurring in the period for which payable.

     Prepayments may be made on this Note at any time, without any penalty or premium. All
payments hereunder shall be in such lawful money of the United States of America as shall be legal
tender for public and private debts at the time of payment.

     This Note shall be governed by and construed in accordance with the laws of the State of
Texas.

	 	 	 	 	 
	 	SPECTRA ENERGY CAPITAL LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w2

 

Exhibit
10.2

 

 

OMNIBUS AGREEMENT

among

SPECTRA ENERGY CORP

SPECTRA ENERGY PARTNERS GP, LLC

SPECTRA ENERGY PARTNERS (DE) GP, LP

and

SPECTRA ENERGY PARTNERS, LP

 

 

 

 

OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, the Closing Date
(as defined herein), and is by and among Spectra Energy Corp, a Delaware corporation (“Spectra”),
Spectra Energy Partners GP, LLC, a Delaware limited liability company (“GP LLC”), Spectra Energy
Partners (DE) GP, LP, a Delaware limited partnership (the “General Partner”) and Spectra Energy
Partners, LP, a Delaware limited partnership (the “Partnership”). The above-named entities are
sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”

RECITALS:

     1. The Parties desire to evidence their agreement, as more fully set forth in Article II, with
respect to certain indemnification obligations of the Parties.

     2. The Parties desire by their execution of this Agreement to evidence their agreement, as
more fully set forth in Article III, with respect to the amount to be paid by the Partnership for
certain general and administrative services to be performed by Spectra and its Affiliates as well
as direct expenses, including operating expenses, incurred by Spectra and its Affiliates for and on
behalf of the Partnership Group (as defined herein).

     In consideration of the premises and the covenants, conditions, and agreements contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

Definitions

     1.1 Definitions.

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

     “Affiliate”
has the meaning given such term in the Partnership Agreement.

     “Agreement” means this Omnibus Agreement, as it may be amended, modified or
supplemented from time to time in accordance with the terms hereof.

     “Cause”has the meaning given such term in the Partnership Agreement.

     “Change of Control” means, with respect to any Person (the “Applicable Person”), any of
the following events: (i) any sale, lease, exchange or other transfer (in one transaction or
a series of related transactions) of all or substantially all of the Applicable Person’s
assets to any other Person, unless immediately following such sale, lease, exchange or other
transfer such assets are owned, directly or indirectly, by the Applicable Person; (ii) the
dissolution or liquidation of the Applicable Person; (iii) the consolidation or merger of
the Applicable Person with or into another Person pursuant to

 

 

a transaction in which the outstanding Voting Securities of the Applicable Person are
changed into or exchanged for cash, securities or other property, other than any such
transaction where (a) the outstanding Voting Securities of the Applicable Person are changed
into or exchanged for Voting Securities of the surviving Person or its parent and (b) the
holders of the Voting Securities of the Applicable Person immediately prior to such
transaction own, directly or indirectly, not less than a majority of the outstanding Voting
Securities of the surviving Person or its parent immediately after such transaction; and
(iv) a “person” or “group” (within the meaning of Sections 13(d) or 14(d)(2) of the Exchange
Act) being or becoming the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act) of more than 50% of all of the then outstanding Voting Securities of the
Applicable Person, except in a merger or consolidation which would not constitute a Change
of Control under clause (iii) above.

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

     “Common Units” has the meaning given such term in the Partnership Agreement.

     “Conflicts Committee” has the meaning given such term in the Partnership Agreement.

     “Covered Environmental Losses” means all environmental and toxic tort losses, damages,
liabilities, injuries, claims, demands, causes of action, judgments, settlements, fines,
penalties, costs and expenses (including, without limitation, costs and expenses of any
Environmental Activity, court costs and reasonable attorney’s and experts’ fees) of any and
every kind or character, by reason of or arising out of:

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

     (ii) any event, omission or condition associated with ownership or operation of the
Partnership Assets relating to Environmental Activities (including, without limitation, the
exposure to or presence of Hazardous Substances on, under, about or migrating to or from the
Partnership Assets or the exposure to or Release of Hazardous Substances arising out of
operation of the Partnership Assets) including, without limitation, (A) the cost and expense
of any Environmental Activities, (B) the cost or expense of the preparation and
implementation of any closure, remedial or corrective action or other plans required or
necessary under Environmental Laws and (C) the cost and expense for any environmental or
toxic tort pre-trial, trial or appellate legal or litigation support work.

     “CPI Index” has the meaning given such term in Section 2.1(c) of this Agreement.

     “Environmental Activities” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or

-2-

 

abatement that is required or necessary under any applicable Environmental Law,
including, but not limited to, institutional or engineering controls or participation in a
governmental voluntary cleanup program to conduct voluntary investigatory and remedial
actions for the clean-up, removal or remediation of Hazardous Substances that exceed
actionable levels established pursuant to Environmental Laws, or participation in a
supplemental environmental project in partial or whole mitigation of a fine or penalty.

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

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

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “G&A Expenses Limit” has the meaning given such term in Section 3.1(c) of this
Agreement.

     “General Partner” has the meaning given such term in the introduction to this
Agreement.

     “GP LLC” has the meaning given such term in the introduction to this Agreement.

     “Gulfstream” means Gulfstream Natural Gas System, L.L.C., a Delaware limited liability
company.

     “Gulfstream Assets” means the assets owned by Gulfstream as of the Closing Date.

     “Hazardous Substance” means (a) any substance that is designated, defined or classified
as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or
hazardous substance, or terms of similar meaning, or that is otherwise regulated under any
Environmental Law, including, without limitation, any hazardous substance as defined under
the Comprehensive Environmental Response, Compensation

-3-

 

and Liability Act, as amended, (b) oil as defined in the Oil Pollution Act of 1990, as
amended, including oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel,
jet fuel and other refined petroleum hydrocarbons and petroleum products and (c) radioactive
materials, asbestos containing materials or polychlorinated biphenyls.

     “Indemnified Party” means each Partnership Group Member and Spectra, as the case may
be, in their capacities as parties entitled to indemnification in accordance with Article
II.

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

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

     “Market Hub” means Market Hub Partners Holding, a Delaware partnership.

     “Market Hub Assets” means the assets owned by Market Hub as of the Closing Date.

     “Partnership” has the meaning given such term in the introduction to this Agreement.

     “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Spectra Energy Partners, LP, dated as of the Closing Date, as such agreement
is in effect on the Closing Date, to which reference is hereby made for all purposes of this
Agreement.

     “Partnership Assets” means the natural gas transportation and storage assets (including
the Gulfstream Assets, the Market Hub Assets and the interests in Gulfstream and Market Hub
to be contributed to the Partnership in connection with its initial public offering and as
more completely described in the Registration Statement) conveyed, contributed or otherwise
transferred or intended to be conveyed, contributed or otherwise transferred to any
Partnership Group Member, or owned by or necessary for the operation of the business,
properties or assets of any Partnership Group Member, prior to or as of the Closing Date.

     “Partnership Entities” means GP LLC, the General Partner and each Partnership Group
Member.

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

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

-4-

 

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

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

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

     “Registration Statement” means the Registration Statement on Form S-1, as amended,
(Registration No. 333-141687) filed with the Securities and Exchange Commission with respect
to the proposed initial public offering of Common Units by the Partnership.

     “Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting,
discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching,
dumping or disposing into the environment.

     “Retained Assets” means all assets of Spectra and its Affiliates that were not
conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the
Contribution Agreement and other documents relating to the transactions referred to in the
Contribution Agreement.

     “Subsidiary” has the meaning given such term in the Partnership Agreement.

     “Spectra” has the meaning given such term in the introduction to this Agreement.

     “Units” has the meaning given such term in the Partnership Agreement.

     “Voting Securities” means securities of any class of a Person entitling the holders
thereof to vote in the election of, or to appoint, members of the board of directors or
other similar governing body of the Person.

ARTICLE II

Indemnification

     2.1 Environmental Indemnification.

          (a) Subject to the provisions of Section 2.3, Spectra shall indemnify, defend and hold
harmless the Partnership Group and the Partnership Indemnitees from and against any Covered
Environmental Losses suffered or incurred by the Partnership Group or any Partnership Indemnitee
relating to the Partnership Assets for a period of three (3) years from the Closing Date, but only
to the extent such violations, corrections, events or conditions giving rise to a Covered
Environmental Loss occurred on or before the Closing Date; provided that, for purposes of
determining the amount of any Covered Environmental Loss suffered or incurred by the Partnership
Group or any Partnership Indemnitee with respect to the Gulfstream Assets or the

-5-

 

Market Hub Assets, the Partnership Group’s ownership of only a 24.5% interest in Gulfstream
and a 50% interest in Market Hub shall be taken into account such that any Covered Environmental
Loss suffered or incurred by the Partnership Group or any Partnership Indemnitee with respect to
the Gulfstream Assets or the Market Hub Assets would equal 24.5% of the total Covered Environmental
Losses of Gulfstream or 50% of the total Covered Environmental Losses of Market Hub, as the case
may be.

          (b) Subject to the provisions of Section 2.3, the Partnership Group shall indemnify, defend
and hold harmless Spectra and its Affiliates, other than any Partnership Group Member, from and
against any Covered Environmental Losses suffered or incurred by Spectra and its Affiliates, other
than any Partnership Group Member, relating to the Partnership Assets occurring after the Closing
Date except to the extent that the Partnership Group is indemnified with respect to any of such
Covered Environmental Losses under Section 2.1(a); provided that in no event shall the Partnership
Group indemnify, defend or hold harmless Spectra and its Affiliates from and against any Covered
Environmental Losses relating to the Gulfstream Assets or the Market Hub Assets arising from or
attributable to the 25.5% interest in Gulfstream or the 50% interest in Market Hub, respectively,
owned by Spectra and its Affiliates from and after the Closing Date.

          (c) The aggregate liability of Spectra under Section 2.1(a) shall not exceed $15 million.

          (d) No claims may be made against Spectra for indemnification pursuant to Section 2.1(a)
unless the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group or
Partnership Indemnitees exceed $250,000, after such time Spectra shall be liable for the full
amount of such claims, subject to the limitations of Section 2.1(c).

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

     2.2 Additional Indemnification

          (a) Subject to the provisions of Section 2.3, Spectra shall indemnify, defend and hold
harmless the Partnership Group and the Partnership Indemnitees from and against any Losses suffered
or incurred by the Partnership Group or any Partnership Indemnitee by reason of or arising out of:

     (i) the failure of the Partnership Group to be the owner of valid and
indefeasible easement rights, leasehold and/or fee ownership interests in and to the
lands on which are located any Partnership Assets or to have valid and indefeasible
ownership of a 24.5% interest in Gulfstream and a 50.0% interest in Market Hub, and
such failure renders the Partnership Group liable or unable to use or operate the
Partnership Assets in substantially the same manner that the Partnership Assets were
used and operated by Spectra and its Affiliates (and Gulfstream with respect to the
Gulfstream Assets) immediately prior to the Closing Date as described in the
Registration Statement; provided that, for

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purposes of determining the amount of any Loss suffered or incurred by the
Partnership Group or any Partnership Indemnitee with respect to the Gulfstream
Assets or the Market Hub Assets, the Partnership Group’s ownership of only a 24.5%
interest in Gulfstream and its ownership of only a 50% interest in Market Hub shall
be taken into account such that any Loss suffered or incurred by the Partnership
Group or any Partnership Indemnitee with respect to the Gulfstream Assets or the
Market Hub Assets would equal 24.5% of the total Losses of Gulfstream or 50% of the
total Losses of Market Hub, as the case may be;

     (ii) the failure of the Partnership Group to have on the Closing Date any
consent or governmental permit necessary to allow (i) the transfer of any of the
Partnership Assets, a 24.5% interest in Gulfstream or a 50.0% interest in Market Hub
to the Partnership Group on the Closing Date or (ii) any such Partnership Assets to
cross the roads, waterways, railroads and other areas upon which any such
Partnership Assets are located as of the Closing Date, and any such failure
specified in such clause (ii) renders the Partnership Group unable to use or operate
the Partnership Assets in substantially the same manner that the Partnership Assets
were owned and operated by Spectra and its Affiliates (and Gulfstream with respect
to the Gulfstream Assets) immediately prior to the Closing Date as described in the
Registration Statement; provided that, for purposes of determining the amount of any
Loss suffered or incurred by the Partnership Group or any Partnership Indemnitee
with respect to the Gulfstream Assets or the Market Hub Assets, the Partnership
Group’s ownership of only a 24.5% interest in Gulfstream and its ownership of only a
50% interest in Market Hub shall be taken into account such that any Loss suffered
or incurred by the Partnership Group or any Partnership Indemnitee with respect to
the Gulfstream Assets or the Market Hub Assets would equal 24.5% of the total Losses
of Gulfstream or 50% of the total Losses of Market Hub, as the case may be.;

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

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

     (v) the assets, liabilities, business or operations associated with the
Retained Assets and whether occurring before or after the Closing Date;

provided, however, that, in the case of clauses (i), (ii) and (iv) above, such indemnification
obligations shall survive for three (3) years from the Closing Date; and that in the case of clause
(iii) above, such indemnification obligations shall survive until sixty (60) days after the
expiration of any applicable statute of limitations;

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          (b) Subject to the provisions of Section 2.3, in addition to and not in limitation of
the indemnification provided under this Article II, the Partnership Group shall indemnify, defend,
and hold harmless Spectra and its Affiliates, other than any Partnership Group Member, from and
against any Losses suffered or incurred by Spectra and its Affiliates, other than any Partnership
Group Member, by reason of or arising out of events and conditions associated with the operation of
the Partnership Assets that occurs on or after the Closing Date (other than Covered Environmental
Losses, which are covered by Section 2.1) except to the extent that the Partnership Group is
indemnified with respect to any such Losses under Section 2.2(a); provided that in no event shall
the Partnership Group indemnify, defend or hold harmless Spectra and its Affiliates from and
against any Losses relating to the Gulfstream Assets or the Market Hub Assets arising from or
attributable to the 25.5% interest in Gulfstream or the 50% interest in Market Hub, respectively,
owned by Spectra and its Affiliates from and after the Closing Date.

     2.3 Indemnification Procedures.

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

          (b) The Indemnifying Party shall have the right to control all aspects of the defense of (and
any counterclaims with respect to) any claims brought against the Indemnified Party that are
covered by the indemnification set forth in this Article II, including, without limitation, the
selection of counsel, determination of whether to appeal any decision of any court or similar
authority and the settling of any such matter or any issues relating thereto; provided, however,
that no such settlement shall be entered into without the consent (which consent shall not be
unreasonably withheld, conditioned or delayed) of the Indemnified Party unless it includes a full
release of the Indemnified Party from such matter or issues, as the case may be.

          (c) The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in this
Article II, including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to maintain the
confidentiality of all files, records and other information furnished by the Indemnified Party
pursuant to this Section 2.3. In no event shall the obligation of the Indemnified Party to
cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be
construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims covered by the indemnification set forth in this Article
II; provided, however, that the Indemnified Party may, at its own option,

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

          (d) In determining the amount of any loss, cost, damage or expense for which the Indemnified
Party is entitled to indemnification under this Agreement, the gross amount of the indemnification
will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such
correlative insurance benefit shall be net of any incremental insurance premium that becomes due
and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by
the Indemnified Party under contractual indemnities from third Persons.

ARTICLE III

Reimbursement Obligations

     3.1 Reimbursement for Allocated Corporate, General and Administrative Expenses; Limitations on
Reimbursement.

          (a) Spectra hereby agrees to continue to provide the Partnership Group with certain corporate,
general and administrative services, including, but not limited to, legal, accounting, compliance,
treasury, insurance, risk management, health, safety and environmental, information technology,
human resources, credit, payroll, internal audit, and tax (collectively, “Corporate Governance”).
These Corporate Governance services shall be consistent in nature and quality to the services of
such type previously provided by Spectra in connection with its management and operation of the
Partnership Assets prior to their acquisition by the Partnership.

          (b) Subject to the provisions of Section 3.1(c) below, the Partnership Group hereby agrees to
reimburse Spectra for all expenses and expenditures Spectra or its Affiliates incur or payments
they make on behalf of the Partnership Group for these Corporate Governance services.

          (c) The amount for which Spectra shall be entitled to reimbursement from the Partnership Group
pursuant to Section 3.1(b) for Corporate Governance services shall not exceed $3.0 million per year
(the “G&A Expenses Limit”) for a period of three (3) years following the date of this Agreement.
Following the first anniversary of this Agreement, the G&A Expenses Limit shall be increased in
each of the next two (2) years by the percentage increase in the Consumer Price Index — All Urban
Consumers, U.S. City Average, Not Seasonally Adjusted for the
applicable year (the “CPI Index”).
In making such adjustment, the G&A Expenses Limit shall be increased on the first anniversary of
this Agreement by the CPI Index for the prior year period based on the most recent information
available from the U.S. Department of Labor and similarly increased on the second anniversary of
this Agreement by the CPI Index for the prior year period. In the event that the Partnership Group
makes any acquisitions of assets or businesses or the business of the Partnership Group otherwise
expands during the first three (3) years following the date of this Agreement, then the G&A
Expenses Limit shall be appropriately increased in order to account for adjustments in the nature
and extent of the Corporate
Governance services provided by Spectra to the Partnership Group, with any such increase in
the G&A Expenses Limit subject to the approval of the Conflicts Committee. After the third

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anniversary of the date of this Agreement, the G&A Expenses Limit will no longer apply and the
General Partner will determine the amount of expenses for Corporate Governance services that will
be properly allocated to the Partnership in accordance with the terms of the Partnership Agreement.
The G&A Expenses Limit shall not apply to reimbursement for direct expenses of the Partnership as
provided in Section 3.2.

          (d) The General Partner shall be entitled to allocate any such expenses and expenditures
between the Partnership Group, on the one hand, and Spectra, on the other hand, in accordance with
the foregoing provision on any reasonable basis.

     3.2 Reimbursement for Direct Expenses.

          (a) The Partnership Group hereby agrees to reimburse Spectra and its Affiliates for all direct
expenses and expenditures, other than costs allocated pursuant to Section 3.1, they incur or
payments they make on behalf of the Partnership Group, including, but not limited to, (i) salaries
of personnel performing services on the Partnership Group’s behalf, the cost of employee benefits
for such personnel and general and administrative expense associated with such personnel, (ii)
capital expenditures, (iii) maintenance and repair costs, (iv) taxes and (v) direct expenses,
including operating expenses and certain allocated operating expenses, associated with the
ownership and operation of the Partnership Assets; provided, that any allocated operating expenses
shall be consistent in nature and quality to the services of such type previously provided by
Spectra in connection with its management and operation of the Partnership Assets prior to their
acquisition by the Partnership.

          (b) The Partnership Group hereby agrees to reimburse Spectra and its Affiliates for all
expenses and expenditures they incur or payments they make as a result of the Partnership becoming
and continuing as a publicly traded entity, including, but not limited to, costs associated with
annual and quarterly reports, tax return and Schedule K-1 preparation and distribution, independent
auditor fees, partnership governance and compliance, registrar and transfer agent fees, legal fees
and independent director compensation.

          (c) The obligation of the Partnership Group to reimburse Spectra and its Subsidiaries pursuant
to this Section 3.2 shall not be subject to any monetary limitation, including the G&A Expenses
Limit contained in Section 3.1.

     3.3 Budgets: Capital; Operating and Maintenance Expenses; and Corporate Governance Expenses

          (a) Prior to final approval, Spectra agrees to provide to the Partnership the annual estimated
budgets for the capital expenditures and costs associated with the entities in which the
Partnership has an ownership interest and for which the Partnership is required to reimburse
Spectra and its Affiliates pursuant to Sections 3.1 and 3.2. In the course of preparing such
budgets, Spectra agrees to consult with the Partnership regarding such budgets prior to their
approval.

          (b) Spectra agrees to promptly provide the Partnership with all budget forecast(s) and
variance analyses prepared by Spectra in the normal course of business and

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related to the budgets described in Section 3.3(a), and will consult with the Partnership with respect to material
variances and expenditures not initially included in such budgets.

ARTICLE IV

Miscellaneous

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

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

For notice to Spectra:

Spectra Energy Corp

5400 Westheimer Court

Houston, Texas 77056

Attention: General Counsel

For notice to the Partnership Entities:

Spectra Energy Partners, LP

5400 Westheimer Court

Houston, Texas 77056

Attention: Chief Financial Officer

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

     4.4 Termination. Notwithstanding any other provision of this Agreement, if the General Partner is
removed as general partner of the Partnership under circumstances where Cause does not exist and
Units held by the General Partner and its Affiliates are not voted in favor of such removal, this
Agreement, other than the provisions set forth in Article II hereof, may immediately thereupon be
terminated by Spectra. This Agreement, other than the

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provisions set forth in Article II hereof,
shall also terminate upon a Change of Control of GP LLC, the General Partner or the Partnership.

     4.5 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or of any
breach or default by any Person in the performance by such Person of its obligations hereunder
shall be deemed or construed to be a consent or waiver to or of any other breach or default in the
performance by such Person of the same or any other obligations of such Person hereunder. Failure
on the part of a Party to complain of any act of any Person or to declare any Person in default,
irrespective of how long such failure continues, shall not constitute a waiver by such Party of its
rights hereunder until the applicable statute of limitations period has run.

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

     4.7 Assignment; Third-Party Beneficiaries. No Party shall have the right to assign any of its rights
or obligations under this Agreement without the consent of the other Parties hereto. Each of the
Parties hereto specifically intends that Spectra and each entity comprising the Partnership
Entities, as applicable, whether or not a Party to this Agreement, shall be entitled to assert
rights and remedies hereunder as third-party beneficiaries hereto with respect to those provisions
of this Agreement affording a right, benefit or privilege to any such entity.

     4.8 Counterparts. This Agreement may be executed in any number of counterparts, including facsimile
caounterparts, with the same effect as if all signatory Parties had signed the same document. All
counterparts shall be construed together and shall constitute one and the same instrument.

     4.9 Severability. If any provision of this Agreement or the application thereof to any Person or
circumstance shall be held invalid or unenforceable by a court or regulatory body of competent
jurisdiction, the remainder of this Agreement and the application of such provision to other Persons or
circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted
by law.

     4.10 Gender, Parts, Articles and Sections. Whenever the context requires, the gender of all words used
in this Agreement shall include the masculine, feminine and neuter, and the number of all words
shall include the singular and plural. All references to Article numbers and Section numbers refer
to Articles and Sections of this Agreement.

     4.11 Further Assurances. In connection with this Agreement and all transactions contemplated by this
Agreement, each Party agrees to execute and deliver such additional documents and instruments and
to perform such additional acts as may be necessary or

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appropriate to effectuate, carry out and
perform all of the terms, provisions and conditions of this Agreement and all such transactions.

     4.12 Withholding or Granting of Consent. Each Party may, with respect to any consent or approval that it
is entitled to grant pursuant to this Agreement, grant or withhold such consent or approval in its
sole and uncontrolled discretion, with or without cause, and subject to such conditions as it shall
deem appropriate.

     4.13 Laws and Regulations. Notwithstanding any provision of this Agreement to the contrary, no Party
shall take any act, or fail to take any act, under this Agreement which would violate any
applicable law, statute, rule or regulation.

     4.14 Negation of Rights of Limited Partners, Assignees and Third Parties. The provisions of this
Agreement are enforceable solely by the Parties, and no stockholder, limited partner, member or
assignee of Spectra, the Partnership or other Person shall have the right, separate and apart from
Spectra or the Partnership, to enforce any provision of this Agreement or to compel any Party to
comply with the terms of this Agreement.

     4.15 No Recourse Against Officers or Directors. For the avoidance of doubt, the provisions of this
Agreement shall not give rise to any right of recourse against any officer or director of Spectra
or any Partnership Entity.

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

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the
Closing Date.

	 	 	 	 	 
	 	SPECTRA ENERGY CORP

 	 
	 	By:  	/s/
Allan Harris 	 
	 	 	Allan Harris 	 
	 	 	Chief Development Officer 	 
	 
	 	SPECTRA ENERGY PARTNERS GP, LLC

 	 
	 	By:  	/s/
C. Gregory Harper 	 
	 	 	C. Gregory Harper 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	SPECTRA ENERGY PARTNERS (DE) GP, LP

 	 
	 	By:  	    Spectra Energy Partners GP,
LLC,
its general partner
 	 
	 	 	 
	 	By:  	
/s/ C. Gregory Harper 	 
	 	 	C. Gregory Harper 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	SPECTRA ENERGY PARTNERS, LP

 	 
	 	By:  	    Spectra Energy Partners (DE)
GP, LP,
 its general partner
 	 
	 	 	 
	 	By:  	                      Spectra
Energy Partners GP, LLC, 
its general partner
 	 
	 	 	 
	 	By:  	
/s/ C. Gregory Harper 	 
	 	 	C. Gregory Harper 	 
	 	 	President and Chief Executive Officer 	 
	 

[Signature Page to the Omnibus Agreement]

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