Document:

Exhibit 4.3

 

 

 

 

ENLINK MIDSTREAM PARTNERS, LP,

 

as Issuer,

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of March 19, 2014
 to
 Indenture dated as of March 19, 2014

 

2.700% Senior Notes due 2019
 4.400% Senior Notes due 2024
 5.600% Senior Notes due 2044

 

 

 

 

Table of Contents

 

	
ARTICLE I DEFINITIONS
    	
1
    
	
SECTION 1.1 Generally
    	
1
    
	
SECTION 1.2 Definition of Certain   Terms
    	
2
    
	
 
    	
 
    
	
ARTICLE II GENERAL TERMS OF THE NOTES
    	
6
    
	
SECTION 2.1 Form
    	
6
    
	
SECTION 2.2 Title, Amount and   Payment of Principal and Interest
    	
6
    
	
SECTION 2.3 Transfer and Exchange
    	
8
    
	
 
    	
 
    
	
ARTICLE III FUTURE SUBSIDIARY GUARANTEES
    	
9
    
	
SECTION 3.1 No Initial Guarantee of   the Notes by Subsidiary Guarantors
    	
9
    
	
SECTION 3.2 Future Subsidiary   Guarantors
    	
9
    
	
SECTION 3.3 Release of Guarantees
    	
9
    
	
SECTION 3.4 Reinstatement of   Guarantees
    	
9
    
	
 
    	
 
    
	
ARTICLE IV REDEMPTION
    	
9
    
	
SECTION 4.1 Optional Redemption
    	
9
    
	
 
    	
 
    
	
ARTICLE V ADDITIONAL COVENANTS
    	
11
    
	
SECTION 5.1 Limitation on Liens
    	
11
    
	
SECTION 5.2 Restriction on   Sale-Leasebacks
    	
11
    
	
 
    	
 
    
	
ARTICLE VII MISCELLANEOUS PROVISIONS
    	
12
    
	
SECTION 6.1 Ratification of Base   Indenture
    	
12
    
	
SECTION 6.2 Trustee Not Responsible   for Recitals
    	
12
    
	
SECTION 6.3 Table of Contents,   Headings, etc.
    	
12
    
	
SECTION 6.4 Counterpart Originals
    	
12
    
	
SECTION 6.5 Governing Law
    	
13
    

 

 

THIS FIRST SUPPLEMENTAL INDENTURE, dated as of March 19, 2014 (the “First Supplemental Indenture”), is between EnLink Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), and Wells Fargo Bank, National Association, a national banking association, as trustee (the “Trustee”).

 

RECITALS:

 

WHEREAS, the Partnership has executed and delivered to the Trustee an Indenture, dated March 19, 2014 (the “Base Indenture” and, as supplemented by this First Supplemental Indenture, the “Indenture”), providing for the issuance by the Partnership from time to time of its debentures, notes, bonds or other evidences of indebtedness to be issued in one or more series unlimited as to principal amount (the “Debt Securities”);

 

WHEREAS, the Partnership has duly authorized and desires to cause to be established pursuant to the Base Indenture and this First Supplemental Indenture three new series of Debt Securities designated as the “2.700% Senior Notes due 2019” (the “2019 Notes”), the “4.400% Senior Notes due 2024” (the “2024 Notes”) and the “5.600% Senior Notes due 2044” (the “2044 Notes” and, together with the 2019 Notes and the 2024 Notes, the “Notes”);

 

WHEREAS, Sections 2.01 and 2.03 of the Base Indenture permit the execution of indentures supplemental thereto to establish the form and terms of Debt Securities of any series;

 

WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Partnership has requested that the Trustee join in the execution of this First Supplemental Indenture to establish the form and terms of the Notes; and

 

WHEREAS, all things necessary have been done to make the Notes, when executed by the Partnership and authenticated and delivered hereunder and under the Base Indenture and duly issued by the Partnership, the valid obligations of the Partnership, and to make this First Supplemental Indenture a valid agreement of the Partnership enforceable in accordance with its terms.

 

NOW, THEREFORE, the Partnership and the Trustee hereby agree that the following provisions shall supplement the Base Indenture:

 

ARTICLE I
 DEFINITIONS

 

SECTION 1.1  Generally.

 

(a)                                 Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed thereto in the Base Indenture.

 

(b)                                 The rules of interpretation set forth in the Base Indenture shall be applied hereto as if set forth in full herein.

 

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SECTION 1.2  Definition of Certain Terms.

 

For all purposes of this First Supplemental Indenture, except as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the following respective meanings:

 

“Attributable Indebtedness,” when used with respect to any Sale-Leaseback Transaction (as defined in Section 5.2 hereof), means, as at the time of determination, the present value (discounted at the rate set forth or implicit in the terms of the lease included in such transaction) of the total obligations of the lessee for rental payments (other than amounts required to be paid on account of property taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs and other items that do not constitute payments for property rights) during the remaining term of the lease included in such Sale-Leaseback Transaction (including any period for which such lease has been extended). In the case of any lease that is terminable by the lessee upon the payment of a penalty or other termination payment, such amount shall be the lesser of the amount determined assuming termination upon the first date such lease may be terminated (in which case the amount shall also include the amount of the penalty or termination payment, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated) or the amount determined assuming no such termination.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the Notes, (1) the average of four Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest of all of the Reference Treasury Dealer Quotations or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

 

“Consolidated Net Tangible Assets” means, at any date of determination, the total amount of assets of the Partnership and its consolidated Subsidiaries after deducting therefrom:

 

(1)                                 all current liabilities (excluding (A) any current liabilities that by their terms are extendable or renewable at the option of the obligor thereon to a time more than twelve months after the time as of which the amount thereof is being computed, and (B) current maturities of long-term debt); and

 

(2)                                 the value (net of any applicable reserves) of all goodwill, trade names, trademarks, patents and other like intangible assets,

 

all as set forth, or on a pro forma basis would be set forth, on the consolidated balance sheet of the Partnership and its consolidated Subsidiaries for the Partnership’s most recently completed fiscal quarter for which financial statements have been filed with the SEC, prepared in accordance with generally accepted accounting principles.

 

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“Credit Agreement” means the Credit Agreement, dated as of February 20, 2014, among the Partnership, Bank of America, N.A., as Administrative Agent, and the other agents and lenders party thereto and as further amended, restated, refinanced, replaced or refunded from time to time.

 

“General Partner” means EnLink Midstream GP, LLC, a Delaware limited liability company, and its successors as general partner of the Partnership.

 

“Indebtedness” of any Person at any date means any obligation created or assumed by such Person for the repayment of borrowed money or any guaranty thereof.

 

“Permitted Liens” means:

 

(1)                                 liens upon rights-of-way for pipeline purposes;

 

(2)                                 easements, rights-of-way, restrictions and other similar encumbrances affecting real property and encumbrances consisting of zoning restrictions, easements, licenses, restrictions on the use of real property or minor imperfections in title thereto and which do not in the aggregate materially adversely affect the value of the properties encumbered thereby or materially impair their use in the operation of the business of the Partnership and its Subsidiaries;

 

(3)                                 rights reserved to or vested by any provision of law in any municipality or public authority to control or regulate any of the properties of the Partnership or any Subsidiary or the use thereof or the rights and interests of the Partnership or any Subsidiary therein, in any manner under any and all laws;

 

(4)                                 rights reserved to the grantors of any properties of the Partnership or any Subsidiary, and the restrictions, conditions, restrictive covenants and limitations, in respect thereto, pursuant to the terms, conditions and provisions of any rights-of-way agreements, contracts or other agreements therewith;

 

(5)                                 any statutory or governmental lien or lien arising by operation of law, or any mechanics’, repairmen’s, materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or similar lien (including liens on property in the possession of storage facilities, pipelines or barges) incurred in the ordinary course of business which is not more than sixty (60) days past due or which is being contested in good faith by appropriate proceedings, if necessary, and any undetermined lien which is incidental to construction, development, improvement or repair;

 

(6)                                 any right reserved to, or vested in, any municipality or public authority by the terms of any right, power, franchise, grant, license, permit or by any provision of law, to purchase or recapture or to designate a purchaser of, any property;

 

(7)                                 liens for taxes and assessments which are (a) for the then current year, (b) not at the time delinquent, or (c) delinquent but the validity or amount of which is being contested at the time by the Partnership or any of its Subsidiaries in good faith by appropriate proceedings;

 

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(8)                                 banker’s liens, rights of set-off or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depository institution and arising in the ordinary course of business;

 

(9)                                 liens on deposits required by any Person with whom the Partnership or any Subsidiary enters into forward contracts, futures contracts, swap agreements or other commodities contracts in the ordinary course of business and in accordance with established risk management policies and liens of, or to secure performance of, leases, other than capital leases;

 

(10)                          any lien in favor of the Partnership or any Subsidiary;

 

(11)                          any lien upon any property or assets of the Partnership or any Subsidiary in existence on the date hereof;

 

(12)                          any lien incurred in the ordinary course of business in connection with workmen’s compensation, unemployment insurance, temporary disability, social security, retiree health or similar laws or regulations or to secure obligations imposed by statute or governmental regulations or to secure letters of credit with respect thereto;

 

(13)                          liens in favor of any Person to secure obligations under provisions of any letters of credit, bank guarantees, bonds or surety obligations required or requested by any governmental authority in connection with any contract or statute, provided that such obligations do not constitute Indebtedness; or any lien upon or deposits of any assets to secure performance of bids, trade contracts, leases or statutory obligations, and other obligations of a like nature incurred in the ordinary course of business or to secure letters of credit with respect thereto;

 

(14)                          any lien upon any property or assets created at the time of acquisition of such property or assets by the Partnership or any of its Subsidiaries or within one year after such time to secure all or a portion of the purchase price for such property or assets or debt incurred to finance such purchase price, whether such debt was incurred prior to, at the time of or within one year after the date of such acquisition;

 

(15)                          any lien upon any property or assets to secure all or part of the cost of construction, development, repair or improvements thereon or to secure Indebtedness incurred prior to, at the time of, or within one year after completion of such construction, development, repair or improvements or the commencement of full operations thereof (whichever is later), to provide funds for any such purpose;

 

(16)                          any lien upon any property or assets existing thereon at the time of the acquisition thereof by the Partnership or any of its Subsidiaries and any lien upon any property or assets of a Person existing thereon at the time such Person becomes a Subsidiary of the Partnership by acquisition, merger or otherwise; provided that, in each case, such lien only encumbers the property or assets so acquired or owned by such Person at the time such Person becomes a Subsidiary and any additions thereto, proceeds thereof and property in replacement or substitution thereof;

 

(17)                          liens imposed by law or order as a result of any proceeding before any court or regulatory body that is being contested in good faith, and liens which secure a judgment or other

 

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court-ordered award or settlement as to which the Partnership or the applicable Subsidiary has not exhausted its appellate rights;

 

(18)                          any extension, renewal, refinancing, refunding or replacement (or successive extensions, renewals, refinancing, refunding or replacements) of liens, in whole or in part, referred to in clauses (1) through (17) above; provided, however, that any such extension, renewal, refinancing, refunding or replacement lien shall be limited to the property or assets covered by the lien extended, renewed, refinanced, refunded or replaced and that the obligations secured by any such extension, renewal, refinancing, refunding or replacement lien shall be in an amount not greater than the amount of the obligations secured by the lien extended, renewed, refinanced, refunded or replaced and any expenses of the Partnership or its Subsidiaries (including any premium) incurred in connection with such extension, renewal, refinancing, refunding or replacement; or

 

(19)                          any lien resulting from the deposit of moneys or evidence of indebtedness in trust for the purpose of defeasing Indebtedness of the Partnership or any of its Subsidiaries.

 

“Primary Treasury Dealer” means a U.S. government securities dealer in the United States.

 

“Principal Property” means, whether owned or leased on the date hereof or thereafter acquired:

 

(1)                                 any pipeline assets of the Partnership or any of its Subsidiaries, including any related facilities employed in the gathering, transportation, distribution, storage or marketing of natural gas, refined petroleum products, natural gas liquids and petrochemicals, that are located in the United States of America or any territory or political subdivision thereof; and

 

(2)                                 any processing, compression, treating, blending or manufacturing plant or terminal owned or leased by the Partnership or any of its Subsidiaries that is located in the United States or any territory or political subdivision thereof, except in the case of either of the preceding clause (1) or this clause (2):

 

(a)                                 any such assets consisting of inventories, furniture, office fixtures and equipment (including data processing equipment), vehicles and equipment used on, or useful with, vehicles; and

 

(b)                                 any such assets which, in the opinion of the board of directors of the General Partner are not material in relation to the activities of the Partnership and its Subsidiaries taken as a whole.

 

“Principal Subsidiary” means any Subsidiary owning or leasing, directly or indirectly through ownership in another Subsidiary, any Principal Property.

 

“Quotation Agent” means the Reference Treasury Dealer appointed by the Partnership.

 

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“Reference Treasury Dealer” means (i) each of Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith and their respective successors and (ii) two other Primary Treasury Dealers selected by the Partnership.

 

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding the Redemption Date.

 

“Subsidiary Guarantor” means, with respect to the Notes and notwithstanding the definition thereof in the Base Indenture, each Subsidiary of the Partnership that guarantees the Notes pursuant to the terms of the Indenture, but only so long as such Subsidiary is a guarantor of the Notes on the terms provided for in the Indenture.

 

“Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate will be calculated on the third Business Day preceding any Redemption Date.

 

ARTICLE II
 GENERAL TERMS OF THE NOTES

 

SECTION 2.1  Form.

 

The 2019 Notes, the 2024 Notes and the 2044 Notes and the Trustee’s certificates of authentication shall be substantially in the form of Exhibit A-1, Exhibit A-2 and Exhibit A-3, respectively, to this First Supplemental Indenture, which are hereby incorporated into this First Supplemental Indenture. The terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this First Supplemental Indenture and to the extent applicable, the Partnership and the Trustee, by their execution and delivery of this First Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

Each series of Notes shall be issued upon original issuance in whole in the form of one or more Global Securities (the “Book-Entry Notes”). Each Book-Entry Note shall represent such of the outstanding Notes as shall be specified therein and shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.

 

The Partnership initially appoints The Depository Trust Company to act as Depositary with respect to the Book-Entry Notes.

 

SECTION 2.2  Title, Amount and Payment of Principal and Interest.

 

(a)                                 The 2019 Notes shall be entitled the “2.700% Senior Notes due 2019”. The Trustee shall authenticate and deliver (i) the 2019 Notes for original issue on the date hereof (the

 

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“Original 2019 Notes”) in the aggregate principal amount of $400,000,000, and (ii) additional 2019 Notes for original issue from time to time after the date hereof in such principal amounts as may be specified in a Partnership Order described in this sentence, in each case upon a Partnership Order for the authentication and delivery thereof and satisfaction of the other provisions of Sections 2.04 and 2.05 of the Base Indenture. Such order shall specify the amount of the 2019 Notes to be authenticated, the date on which the original issue of 2019 Notes is to be authenticated, and the name or names of the initial Holder or Holders. The aggregate principal amount of 2019 Notes that may be outstanding at any time may not exceed $400,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in Sections 2.08 and 2.09 of the Base Indenture). The Original 2019 Notes and any additional 2019 Notes issued and authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt Securities for all purposes under the Indenture.

 

The principal amount of each 2019 Note shall be payable on April 1, 2019. Each 2019 Note shall bear interest from the date of original issuance, or the most recent date to which interest has been paid, at the fixed rate of 2.700% per annum. The dates on which interest on the 2019 Notes shall be payable shall be April 1 and October 1 of each year, commencing October 1, 2014 (the “2019 Interest Payment Dates”). The regular record date for interest payable on the 2019 Notes on any 2019 Interest Payment Date shall be March 15 or September 15, as the case may be, next preceding such 2019 Interest Payment Date.

 

Payments of principal of, premium, if any, and interest due on the 2019 Notes representing Book-Entry Notes on any 2019 Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(b)                                 The 2024 Notes shall be entitled the “4.400% Senior Notes due 2024”. The Trustee shall authenticate and deliver (i) the 2024 Notes for original issue on the date hereof (the “Original 2024 Notes”) in the aggregate principal amount of $450,000,000, and (ii) additional 2024 Notes for original issue from time to time after the date hereof in such principal amounts as may be specified in a Partnership Order described in this sentence, in each case upon a Partnership Order for the authentication and delivery thereof and satisfaction of the other provisions of Sections 2.04 and 2.05 of the Base Indenture. Such order shall specify the amount of the 2024 Notes to be authenticated, the date on which the original issue of 2024 Notes is to be authenticated, and the name or names of the initial Holder or Holders. The aggregate principal amount of 2024 Notes that may be outstanding at any time may not exceed $450,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in Sections 2.08 and 2.09 of the Base Indenture). The Original 2024 Notes and any additional 2024 Notes issued and authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt Securities for all purposes under the Indenture.

 

The principal amount of each 2024 Note shall be payable on April 1, 2024. Each 2024 Note shall bear interest from the date of original issuance, or the most recent date to which interest has been paid, at the fixed rate of 4.400% per annum. The dates on which interest on the 2024 Notes shall be payable shall be April 1 and October 1 of each year, commencing October 1,

 

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2014 (the “2024 Interest Payment Dates”). The regular record date for interest payable on the 2024 Notes on any 2024 Interest Payment Date shall be March 15 or September 15, as the case may be, next preceding such 2024 Interest Payment Date.

 

Payments of principal of, premium, if any, and interest due on the 2024 Notes representing Book-Entry Notes on any 2024 Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(c)                                  The 2044 Notes shall be entitled the “5.600% Senior Notes due 2044”. The Trustee shall authenticate and deliver (i) the 2044 Notes for original issue on the date hereof (the “Original 2044 Notes”) in the aggregate principal amount of $350,000,000, and (ii) additional 2044 Notes for original issue from time to time after the date hereof in such principal amounts as may be specified in a Partnership Order described in this sentence, in each case upon a Partnership Order for the authentication and delivery thereof and satisfaction of the other provisions of Sections 2.04 and 2.05 of the Base Indenture. Such order shall specify the amount of the 2044 Notes to be authenticated, the date on which the original issue of 2044 Notes is to be authenticated, and the name or names of the initial Holder or Holders. The aggregate principal amount of 2044 Notes that may be outstanding at any time may not exceed $350,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in Sections 2.08 and 2.09 of the Base Indenture). The Original 2044 Notes and any additional 2044 Notes issued and authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt Securities for all purposes under the Indenture.

 

The principal amount of each 2044 Note shall be payable on April 1, 2044. Each 2044 Note shall bear interest from the date of original issuance, or the most recent date to which interest has been paid, at the fixed rate of 5.600% per annum. The dates on which interest on the 2044 Notes shall be payable shall be April 1 and October 1 of each year, commencing October 1, 2014 (the “2044 Interest Payment Dates”). The regular record date for interest payable on the 2044 Notes on any 2044 Interest Payment Date shall be March 15 or September 15, as the case may be, next preceding such 2044 Interest Payment Date.

 

Payments of principal of, premium, if any, and interest due on the 2044 Notes representing Book-Entry Notes on any 2044 Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

SECTION 2.3  Transfer and Exchange.

 

The transfer and exchange of Book-Entry Notes or beneficial interests therein shall be effected through the Depositary, in accordance with Section 2.07 of the Base Indenture and Article II of this First Supplemental Indenture (including the restrictions on transfer set forth therein and herein) and the rules and procedures of the Depositary therefor, which shall include

 

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restrictions on transfer comparable to those set forth therein and herein to the extent required by the Securities Act of 1933, as amended.

 

ARTICLE III
 FUTURE SUBSIDIARY GUARANTEES

 

SECTION 3.1  No Initial Guarantee of the Notes by Subsidiary Guarantors.

 

The Notes initially shall not be entitled to the benefits of the Guarantee contemplated by Article XIV of the Base Indenture.

 

SECTION 3.2  Future Subsidiary Guarantors.

 

If any Subsidiary of the Partnership that is not then a Subsidiary Guarantor guarantees, becomes a guarantor or co-obligor of the Credit Agreement, then the Partnership shall cause such Subsidiary to promptly execute and deliver to the Trustee a supplemental indenture to the Indenture, in a form satisfactory to the Trustee, providing for the Guarantee by such Subsidiary of the Partnership’s obligations under the Notes in accordance with Article XIV of the Base Indenture.

 

SECTION 3.3  Release of Guarantees.

 

In addition to the provisions of Section 14.04(a) of the Base Indenture, the Guarantee of the Notes of any Subsidiary Guarantor shall be unconditionally released and discharged, following delivery of written notice by the Partnership to the Trustee, upon the release and discharge of all guarantees or other obligations of such Subsidiary Guarantor with respect to the obligations of the Partnership or its Subsidiaries under the Credit Agreement.

 

SECTION 3.4  Reinstatement of Guarantees.

 

If at any time following any release of the Guarantee of a Subsidiary Guarantor pursuant to Section 3.3 above, such Subsidiary Guarantor again, becomes a guarantor or co-obligor of the Credit Agreement, then such Subsidiary Guarantor shall again guarantee the Partnership’s obligations under the Notes and the Partnership shall cause such Subsidiary Guarantor to promptly execute and deliver a supplemental indenture to the Indenture, in a form satisfactory to the Trustee, providing for the Guarantee by such Subsidiary Guarantor of the Partnership’s obligations under the Notes in accordance with Article XI of the Base Indenture.

 

ARTICLE IV
 REDEMPTION

 

SECTION 4.1  Optional Redemption.

 

(a)                                 Prior to March 1, 2019, the 2019 Notes are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2019 Notes to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2019 Notes to be redeemed that would be due after the related Redemption Date but for such

 

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redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 20 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after March 1, 2019, the 2019 Notes are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2019 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

(b)                                 Prior to January 1, 2024, the 2024 Notes are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2024 Notes to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2024 Notes to be redeemed that would be due after the related Redemption Date but for such redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 25 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after January 1, 2024, the 2024 Notes are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2024 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

(c)                                  Prior to October 1, 2043, the 2044 Notes are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2044 Notes to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2044 Notes to be redeemed that would be due after the related Redemption Date but for such redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 30 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after October 1, 2043, the 2044 Notes are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the 2044 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

(d)                                 The Partnership shall deliver to the Trustee an Officers’ Certificate with respect to the actual redemption price of the Notes in connection with a redemption under Sections 4.1(a), 4.1(b) and 4.1(c).

 

(e)                                  The Partnership shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption, sinking fund or analogous provisions or at the option of a Holder thereof.

 

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ARTICLE V
 ADDITIONAL COVENANTS

 

In addition to the covenants set forth in the Base Indenture, the Notes shall be entitled to the benefit of the following covenants:

 

SECTION 5.1  Limitation on Liens.

 

The Partnership shall not, nor shall it permit any of its Principal Subsidiaries to, create, assume, incur or suffer to exist any mortgage, lien, security interest, pledge, charge or other encumbrance (“liens”) upon any Principal Property or upon any capital stock of any Principal Subsidiary, whether owned on the date hereof or thereafter acquired, to secure any Indebtedness of the Partnership or any other Person (other than the Notes), without in any such case making effective provisions whereby all of the outstanding Notes are secured equally and ratably with, or prior to, such Indebtedness so long as such Indebtedness is so secured.

 

Notwithstanding the foregoing, the Partnership may, and may permit any of its Principal Subsidiaries to, create, assume, incur, or suffer to exist without securing the Notes (a) any Permitted Lien, (b) any lien upon any Principal Property or capital stock of a Principal Subsidiary to secure Indebtedness of the Partnership or any other Person, provided that the aggregate principal amount of all Indebtedness then outstanding secured by such lien and all similar liens under this clause (b), together with all Attributable Indebtedness from Sale-Leaseback Transactions (excluding Sale-Leaseback Transactions permitted by clauses (1) through (4), inclusive, of Section 5.2 hereof), does not exceed 15% of Consolidated Net Tangible Assets or (c) any lien upon (i) any Principal Property that was not owned by the Partnership or any of its Subsidiaries on the date hereof or (ii) the capital stock of any Principal Subsidiary that owns no Principal Property that was owned by the Partnership or any of its Subsidiaries on the date hereof, in each case owned by a Subsidiary of the Partnership (an “Excluded Subsidiary”) that (A) is not, and is not required to be, a Subsidiary Guarantor and (B) has not granted any liens on any of its property securing Indebtedness with recourse to the Partnership or any Subsidiary of the Partnership other than such Excluded Subsidiary or any other Excluded Subsidiary.

 

SECTION 5.2  Restriction on Sale-Leasebacks.

 

The Partnership will not, and will not permit any Principal Subsidiary to, engage in the sale or transfer by the Partnership or any of its Principal Subsidiaries of any Principal Property to a Person (other than the Partnership or a Principal Subsidiary) and the taking back by the Partnership or its Principal Subsidiary, as the case may be, of a lease of such Principal Property (a “Sale-Leaseback Transaction”), unless:

 

(1)                                 such Sale-Leaseback Transaction occurs within one year from the date of completion of the acquisition of the Principal Property subject thereto or the date of the completion of construction, development or substantial repair or improvement, or commencement of full operations on such Principal Property, whichever is later;

 

(2)                                 the Sale-Leaseback Transaction involves a lease for a period, including renewals, of not more than three years;

 

11

 

(3)                                 the Partnership or such Principal Subsidiary would be entitled to incur Indebtedness secured by a lien on the Principal Property subject thereto in a principal amount equal to or exceeding the Attributable Indebtedness from such Sale-Leaseback Transaction without equally and ratably securing the Notes; or

 

(4)                                 the Partnership or such Principal Subsidiary, within a one-year period after such Sale-Leaseback Transaction, applies or causes to be applied an amount not less than the Attributable Indebtedness from such Sale-Leaseback Transaction to (a) the prepayment, repayment, redemption, reduction or retirement of any Indebtedness of the Partnership or any of its Subsidiaries that is not subordinated to the Notes or any Guarantee, or (b) the expenditure or expenditures for Principal Property used or to be used in the ordinary course of business of Partnership or its Subsidiaries.

 

Notwithstanding the foregoing, the Partnership may, and may permit any Principal Subsidiary to, effect any Sale-Leaseback Transaction that is not excepted by clauses (1) through (4), inclusive, of the preceding paragraph provided that the Attributable Indebtedness from such Sale-Leaseback Transaction, together with the aggregate principal amount of outstanding Indebtedness (other than the Notes) secured by liens other than Permitted Liens upon Principal Properties, does not exceed 15% of Consolidated Net Tangible Assets.

 

ARTICLE VI
 MISCELLANEOUS PROVISIONS

 

SECTION 6.1  Ratification of Base Indenture.

 

The Base Indenture, as supplemented by this First Supplemental Indenture, is in all respects ratified and confirmed, and this First Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided.

 

SECTION 6.2  Trustee Not Responsible for Recitals.

 

The recitals contained herein and in the Notes, except with respect to the Trustee’s certificates of authentication, shall be taken as the statements of the Partnership, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture or of the Notes.

 

SECTION 6.3  Table of Contents, Headings, etc.

 

The table of contents and headings of the Articles and Sections of this First Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.

 

SECTION 6.4  Counterpart Originals.

 

The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

 

12

 

SECTION 6.5  Governing Law.

 

THIS FIRST SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(Signature Pages Follow)

 

13

 

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

 

	
 
    	
ISSUER:
    
	
 
    	
 
    
	
 
    	
ENLINK   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Benjamin Lamb
    
	
 
    	
Name:
    	
Benjamin   Lamb
    
	
 
    	
Title:
    	
Vice   President – Finance
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TRUSTEE:
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John C. Stohlmann
    
	
 
    	
Name:
    	
John   C. Stohlmann
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page of First Supplemental Indenture

 

 

Exhibit A-1

 

FORM OF NOTE

 

[FACE OF SECURITY]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]*

 

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

 

	
No.
    	
$                       
    
	
 
    	
CUSIP: 29336U AA5
    
	
 
    	
ISIN: US29336UAA51
    

 

ENLINK MIDSTREAM PARTNERS, LP

 

2.700% SENIOR NOTES DUE 2019

 

ENLINK MIDSTREAM PARTNERS, LP, a Delaware limited partnership (the “Partnership,” which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co.* or its registered assigns, the principal sum of                  U.S. dollars ($                      ), [or such greater or lesser principal sum as is shown on the attached Schedule of Increases and Decreases in Global Security]*, on April 1, 2019 in such coin and currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest thereon at an annual rate of 2.700% payable on April 1 and October 1 of each year, to the person in whose name the Security is registered at the close of business on the record date for such interest, which shall be the preceding March 15 or September 15 (each, a “Regular Record Date”), respectively, payable commencing on October 1, 2014.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

* To be included in a Book-Entry Note.

 

A-1-1

 

The statements in the legends set forth in this Security are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Debt Securities of an initial aggregate principal amount of $400,000,000 designated as the 2.700% Senior Notes due 2019 of the Partnership and is governed by the Indenture dated as of March 19, 2014 (the “Base Indenture”), duly executed and delivered by the Partnership, as issuer, to Wells Fargo Bank, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture dated as of March 19, 2014, duly executed by the Partnership and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Debt Securities under the Indenture.

 

If and to the extent any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended (the “TIA”), such required provision shall control.

 

This Security shall not be valid or become obligatory for any purpose until the Trustee’s Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

A-1-2

 

IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole General Partner.

 

Dated:

 

	
 
    	
ENLINK   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    

 

A-1-3

 

[REVERSE OF SECURITY]

 

ENLINK MIDSTREAM PARTNERS, LP

 

2.700% SENIOR NOTES DUE 2019

 

This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 2.700% Senior Notes due 2019 of the Partnership, in an initial aggregate principal amount of $400,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Partnership promises to pay interest on the principal amount of this Security at the rate of 2.700% per annum.

 

The Partnership will pay interest semi-annually on April 1 and October 1 of each year (each an “Interest Payment Date”), commencing October 1, 2014. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from March 19, 2014. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Partnership shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a special record date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. Payments in respect of a Global Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the Depositary. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Partnership maintained for such purpose in New York, New York, which initially will be at the corporate trust office of the Trustee located

 

A-1-4

 

at 150 East 42nd Street, 40th Floor, New York, New York 10017, Attention: Corporate Trust, or, at the option of the Partnership, payment of interest may be made by check mailed to the Holders on the relevant record date at their addresses set forth in the register of Holders maintained by the Registrar or at the option of the Holder, payment of interest on Securities in definitive form will be made by wire transfer of immediately available funds to any account maintained in the United States, provided such Holder has requested such method of payment and provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this Security to a Paying Agent to collect payment of principal.

 

3.                                      Paying Agent and Registrar.

 

Initially, Wells Fargo Bank, National Association will act as Paying Agent and Registrar. The Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the Holders. The Partnership may act as Paying Agent.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Partnership issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Base Indenture, those made part of the Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms stated in the First Supplemental Indenture. The Securities are subject to all such terms, and Holders of Securities are referred to the Base Indenture, the First Supplemental Indenture and the TIA for a statement of them. The Securities of this series are general unsecured obligations of the Partnership limited to an initial aggregate principal amount of $400,000,000; provided, however, that the authorized aggregate principal amount of such series may be increased from time to time as provided in the First Supplemental Indenture.

 

5.                                      Redemption.

 

Prior to March 1, 2019, the Securities are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed that would be due after the related Redemption Date but for such redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 20 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after March 1, 2019, the Securities are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

Notices of redemption shall be sent at least 30 days but not more than 60 days before the Redemption Date to each Holder whose Securities are to be redeemed.  Unless the Partnership

 

A-1-5

 

defaults in payment of the redemption price, on and after the Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

 

The Partnership shall deliver to the Trustee an Officers’ Certificate with respect to the actual redemption price of the Securities in connection with a redemption thereof.

 

Except as set forth above, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 

6.                                      Denominations; Transfer; Exchange.

 

The Securities are to be issued in registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

7.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

8.                                      Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the outstanding Debt Securities of each series affected. Without consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to, among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to make any other change that does not adversely affect the rights of any Holder of a Security. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

9.                                      Defaults and Remedies.

 

Certain events of bankruptcy or insolvency are Events of Default that will result in the principal amount of the Securities, together with premium, if any, and accrued and unpaid interest thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any other Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities then outstanding may declare the principal amount of all the Securities, together with premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made, the Holders of a majority in aggregate principal amount of the outstanding Securities, by written notice to the Trustee, may rescind such acceleration and its consequences if the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already

 

A-1-6

 

rendered and if all existing Events of Default with respect to the Securities have been cured or waived except nonpayment of principal, premium, if any, or interest that has become due solely by the declaration of acceleration. No such rescission shall affect any subsequent default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require reasonable indemnity or security satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

10.                               Trustee Dealings with Partnership.

 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential claims may otherwise deal with the Partnership with the same rights it would have as if it were not the Trustee.

 

11.                               Authentication.

 

This Security shall not be valid until the Trustee signs the certificate of authentication on the other side of this Security.

 

12.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

13.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

14.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Partnership, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

15.                               No Recourse.

 

None of the General Partner nor any director, officer, employee, incorporator, manager or unitholder or other owner of equity of the General Partner, the Partnership or any Subsidiary Guarantor, as such, will have any liability for any obligations of the Subsidiary Guarantors or the Partnership under the Securities, the Indenture or any Guarantee or for any claim based on, in

 

A-1-7

 

respect of, or by reason of, such obligations or their creation. By accepting the Securities, each Holder will waive and release all such liability. The waiver and release are part of the consideration for issuance of the Securities.

 

16.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM - as tenants in common
    	
 
    	
UNIF   GIFT MIN ACT -
    
	
 
    	
 
    	
 
    	
(Cust.)
    
	
TEN ENT - as tenants by entireties
    	
 
    	
Custodian   for:
    
	
 
    	
 
    	
 
    	
(Minor)
    
	
JT   TEN - as joint tenants with right of survivorship and not as tenants in   common
    	
 
    	
Under   Uniform Gifts to Minors Act of
    
	
 
    	
 
    	
 
    	
(State)
    

 

Additional abbreviations may also be used though not in the above list.

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

 

IDENTIFYING NUMBER OF ASSIGNEE

 

Please print or type name and address including postal zip code of assignee:

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to transfer said Security on the books of the Partnership, with full power of substitution in the premises.

 

A-1-8

 

	
Dated
    	
Registered Holder
    

 

A-1-9

 

SCHEDULE OF INCREASES OR DECREASES 
 IN GLOBAL SECURITY*

 

The following increases or decreases in this Global Security have been made:

 

	
Date of Exchange
    	
 
    	
Amount of Decrease
   in Principal Amount
   of this Global
   Security
    	
 
    	
Amount of Increase
   in Principal Amount
   of this Global
   Security
    	
 
    	
Principal Amount of
   this Global Security
   Following Such
   Decrease (or Increase)
    	
 
    	
Signature of
   Authorized Officer of
   Trustee or Depositary
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

*                                         To be included in a Book-Entry Note.

 

A-1-10

 

Exhibit A-2

 

FORM OF NOTE

 

[FACE OF SECURITY]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]*

 

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

 

	
No.                                
    	
 
    	
 
    	
 
    	
 
    	
$                 
    

CUSIP: 29336U AB3

ISIN: US29336UAB35

 

ENLINK MIDSTREAM PARTNERS, LP

 

4.400% SENIOR NOTES DUE 2024

 

ENLINK MIDSTREAM PARTNERS, LP, a Delaware limited partnership (the “Partnership,” which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co.* or its registered assigns, the principal sum of                  U.S. dollars ($                      ), [or such greater or lesser principal sum as is shown on the attached Schedule of Increases and Decreases in Global Security]**, on April 1, 2024 in such coin and currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest thereon at an annual rate of 4.400% payable on April 1 and October 1 of each year, to the person in whose name the Security is registered at the close of business on the record date for such interest, which shall be the preceding March 15 or September 15 (each, a “Regular Record Date”), respectively, payable commencing on October 1, 2014.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

* To be included in Book Entry Note.

 

A-2-1

 

The statements in the legends set forth in this Security are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Debt Securities of an initial aggregate principal amount of $450,000,000 designated as the 4.400% Senior Notes due 2024 of the Partnership and is governed by the Indenture dated as of March 19, 2014 (the “Base Indenture”), duly executed and delivered by the Partnership, as issuer, to Wells Fargo Bank, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture dated as of March 19, 2014, duly executed by the Partnership and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Debt Securities under the Indenture.

 

If and to the extent any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended (the “TIA”), such required provision shall control.

 

This Security shall not be valid or become obligatory for any purpose until the Trustee’s Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

A-2-2

 

IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole General Partner.

 

Dated:

 

	
 
    	
ENLINK   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink   Midstream GP, LLC,
    
	
 
    	
 
    	
its   general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    

 

A-2-3

 

[REVERSE OF SECURITY]

 

ENLINK MIDSTREAM PARTNERS, LP

 

4.400% SENIOR NOTES DUE 2044

 

This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 4.400% Senior Notes due 2024 of the Partnership, in an initial aggregate principal amount of $450,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Partnership promises to pay interest on the principal amount of this Security at the rate of 4.400% per annum.

 

The Partnership will pay interest semi-annually on April 1 and October 1 of each year (each an “Interest Payment Date”), commencing October 1, 2014. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from March 19, 2014. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Partnership shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a special record date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. Payments in respect of a Global Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the Depositary. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Partnership maintained for such purpose in New York, New York, which initially will be at the corporate trust office of the Trustee located

 

A-2-4

 

at 150 East 42nd Street, 40th Floor, New York, New York 10017, Attention: Corporate Trust, or, at the option of the Partnership, payment of interest may be made by check mailed to the Holders on the relevant record date at their addresses set forth in the register of Holders maintained by the Registrar or at the option of the Holder, payment of interest on Securities in definitive form will be made by wire transfer of immediately available funds to any account maintained in the United States, provided such Holder has requested such method of payment and provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this Security to a Paying Agent to collect payment of principal.

 

3.                                      Paying Agent and Registrar.

 

Initially, Wells Fargo Bank, National Association will act as Paying Agent and Registrar. The Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the Holders. The Partnership may act as Paying Agent.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Partnership issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Base Indenture, those made part of the Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms stated in the First Supplemental Indenture. The Securities are subject to all such terms, and Holders of Securities are referred to the Base Indenture, the First Supplemental Indenture and the TIA for a statement of them. The Securities of this series are general unsecured obligations of the Partnership limited to an initial aggregate principal amount of $450,000,000; provided, however, that the authorized aggregate principal amount of such series may be increased from time to time as provided in the First Supplemental Indenture.

 

5.                                      Redemption.

 

Prior to January 1, 2024, the Securities are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed that would be due after the related Redemption Date but for such redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 25 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after January 1, 2024, the Securities are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

Notices of redemption shall be sent at least 30 days but not more than 60 days before the Redemption Date to each Holder whose Securities are to be redeemed.  Unless the Partnership

 

A-2-5

 

defaults in payment of the redemption price, on and after the Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

 

The Partnership shall deliver to the Trustee an Officers’ Certificate with respect to the actual redemption price of the Securities in connection with a redemption thereof.

 

Except as set forth above, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 

6.                                      Denominations; Transfer; Exchange.

 

The Securities are to be issued in registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

7.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

8.                                      Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the outstanding Debt Securities of each series affected. Without consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to, among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to make any other change that does not adversely affect the rights of any Holder of a Security. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

9.                                      Defaults and Remedies.

 

Certain events of bankruptcy or insolvency are Events of Default that will result in the principal amount of the Securities, together with premium, if any, and accrued and unpaid interest thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any other Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities then outstanding may declare the principal amount of all the Securities, together with premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made, the Holders of a majority in aggregate principal amount of the outstanding Securities, by written notice to the Trustee, may rescind such acceleration and its consequences if the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already

 

A-2-6

 

rendered and if all existing Events of Default with respect to the Securities have been cured or waived except nonpayment of principal, premium, if any, or interest that has become due solely by the declaration of acceleration. No such rescission shall affect any subsequent default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require reasonable indemnity or security satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

10.                               Trustee Dealings with Partnership.

 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential claims may otherwise deal with the Partnership with the same rights it would have as if it were not the Trustee.

 

11.                               Authentication.

 

This Security shall not be valid until the Trustee signs the certificate of authentication on the other side of this Security.

 

12.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

13.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

14.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Partnership, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

15.                               No Recourse.

 

None of the General Partner nor any director, officer, employee, incorporator, manager or unitholder or other owner of equity of the General Partner, the Partnership or any Subsidiary Guarantor, as such, will have any liability for any obligations of the Subsidiary Guarantors or the Partnership under the Securities, the Indenture or any Guarantee or for any claim based on, in

 

A-2-7

 

respect of, or by reason of, such obligations or their creation. By accepting the Securities, each Holder will waive and release all such liability. The waiver and release are part of the consideration for issuance of the Securities.

 

16.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

A-2-8

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN   COM - as tenants in common
    	
 
    	
UNIF   GIFT MIN ACT -
    
	
 
    	
 
    	
(Cust.)
    
	
TEN   ENT - as tenants by entireties
    	
 
    	
Custodian   for:
    
	
 
    	
 
    	
(Minor)
    
	
JT   TEN - as joint tenants with right of survivorship and not as tenants in   common
    	
 
    	
Under   Uniform Gifts to Minors Act of
    
	
 
    	
 
    	
(State)
    

 

Additional abbreviations may also be used though not in the above list.

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

 

IDENTIFYING NUMBER OF ASSIGNEE

 

Please print or type name and address including postal zip code of assignee:

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to transfer said Security on the books of the Partnership, with full power of substitution in the premises.

 

	
Dated
    	
 
    	
Registered   Holder
    

 

A-2-9

 

SCHEDULE OF INCREASES OR DECREASES 
 IN GLOBAL SECURITY*

 

The following increases or decreases in this Global Security have been made:

 

	
Date of Exchange
    	
 
    	
Amount of Decrease
   in Principal Amount
   of this Global
   Security
    	
 
    	
Amount of Increase
   in Principal Amount
   of this Global
   Security
    	
 
    	
Principal Amount of
   this Global Security
   Following Such
   Decrease (or Increase)
    	
 
    	
Signature of
   Authorized Officer of
   Trustee or Depositary
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

*                                         To be included in a Book-Entry Note.

 

A-2-10

 

Exhibit A-3

 

FORM OF NOTE

 

[FACE OF SECURITY]

 

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]*

 

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

 

	
No.
    	
$                  
    
	
CUSIP: 29336U AC1
    
	
ISIN: US29336UAC18
    

 

ENLINK MIDSTREAM PARTNERS, LP

 

5.600% SENIOR NOTES DUE 2044

 

ENLINK MIDSTREAM PARTNERS, LP, a Delaware limited partnership (the “Partnership,” which term includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co.* or its registered assigns, the principal sum of                  U.S. dollars ($                      ), [or such greater or lesser principal sum as is shown on the attached Schedule of Increases and Decreases in Global Security]**, on April 1, 2044 in such coin and currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest thereon at an annual rate of 5.600% payable on April 1 and October 1 of each year, to the person in whose name the Security is registered at the close of business on the record date for such interest, which shall be the preceding March 15 or September 15 (each, a “Regular Record Date”), respectively, payable commencing on October 1, 2014.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

* To be included in Book Entry Note.

 

 

A-3-1

 

The statements in the legends set forth in this Security are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Debt Securities of an initial aggregate principal amount of $350,000,000 designated as the 5.600% Senior Notes due 2044 of the Partnership and is governed by the Indenture dated as of March 19, 2014 (the “Base Indenture”), duly executed and delivered by the Partnership, as issuer, to Wells Fargo Bank, National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture dated as of March 19, 2014, duly executed by the Partnership and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Debt Securities under the Indenture.

 

If and to the extent any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended (the “TIA”), such required provision shall control.

 

This Security shall not be valid or become obligatory for any purpose until the Trustee’s Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

A-3-2

 

IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole General Partner.

 

	
Dated:
    	
 
    
	
 
    	
 
    
	
 
    	
ENLINK MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By: 
    	
EnLink Midstream GP, LLC,
    
	
 
    	
 
    	
its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Debt Securities of the series designated therein referred to in the within-mentioned Indenture.

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    

 

A-3-3

 

[REVERSE OF SECURITY]

 

ENLINK MIDSTREAM PARTNERS, LP

 

5.600% SENIOR NOTES DUE 2044

 

This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 5.600% Senior Notes due 2044 of the Partnership, in an initial aggregate principal amount of $350,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Partnership promises to pay interest on the principal amount of this Security at the rate of 5.600% per annum.

 

The Partnership will pay interest semi-annually on April 1 and October 1 of each year (each an “Interest Payment Date”), commencing October 1, 2014. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from March 19, 2014. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Partnership shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the same rate per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Partnership shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a special record date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts. Payments in respect of a Global Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the Depositary. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Partnership maintained for such purpose in New York, New York, which initially will be at the corporate trust office of the Trustee located

 

A-3-4

 

at 150 East 42nd Street, 40th Floor, New York, New York 10017, Attention: Corporate Trust, or, at the option of the Partnership, payment of interest may be made by check mailed to the Holders on the relevant record date at their addresses set forth in the register of Holders maintained by the Registrar or at the option of the Holder, payment of interest on Securities in definitive form will be made by wire transfer of immediately available funds to any account maintained in the United States, provided such Holder has requested such method of payment and provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this Security to a Paying Agent to collect payment of principal.

 

3.                                      Paying Agent and Registrar.

 

Initially, Wells Fargo Bank, National Association will act as Paying Agent and Registrar. The Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the Holders. The Partnership may act as Paying Agent.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Partnership issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Base Indenture, those made part of the Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms stated in the First Supplemental Indenture. The Securities are subject to all such terms, and Holders of Securities are referred to the Base Indenture, the First Supplemental Indenture and the TIA for a statement of them. The Securities of this series are general unsecured obligations of the Partnership limited to an initial aggregate principal amount of $350,000,000; provided, however, that the authorized aggregate principal amount of such series may be increased from time to time as provided in the First Supplemental Indenture.

 

5.                                      Redemption.

 

Prior to October 1, 2043, the Securities are redeemable, at the option of the Partnership, at any time in whole, or from time to time in part, at a redemption price equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Securities to be redeemed that would be due after the related Redemption Date but for such redemption (exclusive of interest accrued to, but excluding, the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 30 basis points; plus, in either case, accrued and unpaid interest to, but excluding, the Redemption Date.

 

At any time on or after October 1, 2043, the Securities are redeemable, at the option of the Partnership, in whole or in part, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed plus accrued and unpaid interest to, but excluding, the Redemption Date.

 

Notices of redemption shall be sent at least 30 days but not more than 60 days before the Redemption Date to each Holder whose Securities are to be redeemed.  Unless the Partnership

 

A-3-5

 

defaults in payment of the redemption price, on and after the Redemption Date interest ceases to accrue on Notes or portions thereof called for redemption.

 

The Partnership shall deliver to the Trustee an Officers’ Certificate with respect to the actual redemption price of the Securities in connection with a redemption thereof.

 

Except as set forth above, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 

6.                                      Denominations; Transfer; Exchange.

 

The Securities are to be issued in registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

7.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

8.                                      Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the outstanding Debt Securities of each series affected. Without consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to, among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to make any other change that does not adversely affect the rights of any Holder of a Security. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

9.                                      Defaults and Remedies.

 

Certain events of bankruptcy or insolvency are Events of Default that will result in the principal amount of the Securities, together with premium, if any, and accrued and unpaid interest thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any other Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in aggregate principal amount of the Securities then outstanding may declare the principal amount of all the Securities, together with premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made, the Holders of a majority in aggregate principal amount of the outstanding Securities, by written notice to the Trustee, may rescind such acceleration and its consequences if the rescission would not conflict with any judgment or decree of a court of competent jurisdiction already

 

A-3-6

 

rendered and if all existing Events of Default with respect to the Securities have been cured or waived except nonpayment of principal, premium, if any, or interest that has become due solely by the declaration of acceleration. No such rescission shall affect any subsequent default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require reasonable indemnity or security satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

10.                               Trustee Dealings with Partnership.

 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and subject to the provisions of the TIA relating to conflicts of interest and preferential claims may otherwise deal with the Partnership with the same rights it would have as if it were not the Trustee.

 

11.                               Authentication.

 

This Security shall not be valid until the Trustee signs the certificate of authentication on the other side of this Security.

 

12.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

13.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

14.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Partnership, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

15.                               No Recourse.

 

None of the General Partner nor any director, officer, employee, incorporator, manager or unitholder or other owner of equity of the General Partner, the Partnership or any Subsidiary Guarantor, as such, will have any liability for any obligations of the Subsidiary Guarantors or the Partnership under the Securities, the Indenture or any Guarantee or for any claim based on, in

 

A-3-7

 

respect of, or by reason of, such obligations or their creation. By accepting the Securities, each Holder will waive and release all such liability. The waiver and release are part of the consideration for issuance of the Securities.

 

16.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

A-3-8

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN   COM - as tenants in common
    	
UNIF   GIFT MIN ACT -
    
	
 
    	
 
    	
(Cust.)
    
	
TEN   ENT - as tenants by entireties
    	
Custodian   for:
    
	
 
    	
 
    	
(Minor)
    
	
JT   TEN - as joint tenants with right of survivorship and not as tenants in   common
    	
Under   Uniform Gifts to Minors Act of
    
	
 
    	
 
    	
(State)
    

 

Additional abbreviations may also be used though not in the above list.

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

 

IDENTIFYING NUMBER OF ASSIGNEE

 

Please print or type name and address including postal zip code of assignee:

 

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to transfer said Security on the books of the Partnership, with full power of substitution in the premises.

 

	
Dated
    	
Registered   Holder
    

 

A-3-9

 

SCHEDULE OF INCREASES OR DECREASES 
 IN GLOBAL SECURITY*

 

The following increases or decreases in this Global Security have been made:

 

	
Date of Exchange
    	
 
    	
Amount of Decrease
   in Principal Amount
   of this Global
   Security
    	
 
    	
Amount of Increase
   in Principal Amount
   of this Global
   Security
    	
 
    	
Principal Amount of
   this Global Security
   Following Such
   Decrease (or Increase)
    	
 
    	
Signature of
   Authorized Officer of
   Trustee or Depositary
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

*                                         To be included in a Book-Entry Note.

 

A-3-10Exhibit 10.20

 

ASSIGNMENT AND ASSUMPTION OF AGREEMENT OF SALE AND PURCHASE

 

THIS ASSIGNMENT AND ASSUMPTION OF AGREEMENT OF SALE AND PURCHASE (this “Assignment”) is made by and between GRAYMARK HEALTHCARE, INC. (“Assignor”), and DOC-GREYMARK HQ OKC MOB, LLC (“Assignee”) (collectively, the “Parties”), this 30 day of September, 2013.

 

W I T N E S S E T H

 

WHEREAS, Foundation Medical Center of Oklahoma City, LLC (“Foundation”), as the seller, and Assignor, as the buyer, entered into that certain Agreement of Sale and Purchase dated September 30, 2013, and attached hereto as Exhibit A (the “Agreement”) for the Property (as defined in the Agreement).

 

WHEREAS, Assignor offers to assign its rights, title, interests and obligations in, to, and under the Agreement to Assignee.

 

WHEREAS, Assignor wishes to assign to Assignee, and Assignee wishes to assume, all of Assignor’s rights, title, interests, and obligations in, to, and under the Agreement.

 

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.                                      Assignment of Assignor’s Interests in the Agreement.  Assignor hereby assigns, transfers, and conveys to Assignee all of Assignor’s rights, title, interests, and obligations in, to, and under the Agreement.

 

2.                                      Assumption of Assignor’s Interests in the Agreement.  Assignee accepts the assignment made hereby, acknowledges receipt of the Agreement and assumes and agrees to perform, as a direct obligation to Foundation, all duties and obligations required to be performed by the Assignor under the Agreement and related documents to the same extent as if Assignee had been an original party thereto, including, but not limited to, all earnest money obligations, responsibilities, terms and conditions. Notwithstanding the foregoing, nothing in this Assignment shall serve to release Assignor from its obligations to Foundation under the Agreement.

 

3.                                      Successors and Assigns.  This Assignment shall be binding upon and shall inure to the benefit of the Parties and their respective personal representatives, heirs, successors and assigns.  This is an integrated agreement and represents the full, final, and complete expressions of the Parties, subject to that certain Agreement and in connection with Assignment and Assumption of Agreement.

 

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IN WITNESS WHEREOF, the Parties have executed this Assignment on the date first above written.

 

	
ASSIGNOR:
    	
 
    	
ASSIGNEE:
    
	
 
    	
 
    	
 
    
	
GRAYMARK HEALTHCARE, INC.
    	
 
    	
DOC-GREYMARK HQ OKC MOB, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:  Physicians   Realty, L.P., its Manager
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Stanton Nelson
    	
 
    	
By:   Physicians Realty Trust, its general   partner
    
	
 
    	
Stanton Nelson, CEO
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By: 
    	
/s/ John T. Thomas
    
	
 
    	
 
    	
 
    	
 
    	
John T. Thomas
    
	
 
    	
 
    	
 
    	
 
    	
President and Chief Executive Officer
    
							

 

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EXHIBIT A

 

Agreement

 

(see attached)

 

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AGREEMENT OF SALE AND PURCHASE

 

FOUNDATION MEDICAL CENTER OF OKLAHOMA CITY, LLC (SELLER),

 

&

 

GRAYMARK HEALTHCARE, INC. (BUYER)

 

PROPERTY: 14000 NORTH PORTLAND AVE., OKLAHOMA CITY, OK

 

EFFECTIVE DATE:  SEPTEMBER 30, 2013

 

 

TABLE OF CONTENTS

 

	
CONTENTS
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Agreement to Sell and   Purchase
    	
 
    	
1
    
	
2.
    	
Purchase Price
    	
 
    	
2
    
	
3.
    	
Closing
    	
 
    	
3
    
	
4.
    	
Title
    	
 
    	
3
    
	
5.
    	
Due Diligence Period
    	
 
    	
4
    
	
6.
    	
Disclosure Materials
    	
 
    	
4
    
	
7.
    	
Disclaimer
    	
 
    	
4
    
	
8.
    	
Representations and   Warranties of Seller
    	
 
    	
5
    
	
9.
    	
Representations and   Warranties of Buyer
    	
 
    	
6
    
	
10.
    	
Conditions of Buyer’s   Obligations
    	
 
    	
7
    
	
11.
    	
Conditions of Seller’s   Obligations
    	
 
    	
7
    
	
12.
    	
Closing Documents
    	
 
    	
8
    
	
13.
    	
Possession
    	
 
    	
9
    
	
14.
    	
Prorations and Charges
    	
 
    	
9
    
	
15.
    	
Condemnation; Rezoning;   Historic Designation
    	
 
    	
9
    
	
16.
    	
Default by Buyer
    	
 
    	
10
    
	
17.
    	
Default by Seller
    	
 
    	
10
    
	
18.
    	
Risk of Loss
    	
 
    	
11
    
	
19.
    	
Brokerage
    	
 
    	
11
    
	
20.
    	
Operation of the Property   Prior to Closing
    	
 
    	
11
    
	
21.
    	
Notice
    	
 
    	
12
    
	
22.
    	
Indemnities; Waiver and   Release
    	
 
    	
13
    
	
23.
    	
Further Assurances
    	
 
    	
13
    
	
24.
    	
Like Kind Exchanges
    	
 
    	
13
    
	
25.
    	
Miscellaneous
    	
 
    	
14
    
	
26.
    	
Non-Disclosure
    	
 
    	
15
    
	
27.
    	
Attorneys’ Fees
    	
 
    	
15
    
	
28.
    	
Waiver of Jury Trial
    	
 
    	
15
    

 

	
EXHIBIT “A”
    	
-
    	
LEGAL DESCRIPTION
    
	
 
    	
 
    	
 
    
	
EXHIBIT “B”
    	
-
    	
ESCROW AGREEMENT
    
	
 
    	
 
    	
 
    
	
EXHIBIT “C”
    	
-
    	
TEMPORARY ACCESS AGREEMENT
    
	
 
    	
 
    	
 
    
	
EXHIBIT “D”
    	
-
    	
INTENTIONALLY DELETED
    
	
 
    	
 
    	
 
    
	
EXHIBIT “E”
    	
-
    	
FORM OF RELEASE
    
	
 
    	
 
    	
 
    
	
EXHIBIT “F”
    	
-
    	
NON-FOREIGN PERSON   CERTIFICATION
    
	
 
    	
 
    	
 
    
	
Schedule 1(b)
    	
 
    	
List of Equipment
    
	
 
    	
 
    	
 
    
	
Schedule 1(c)
    	
 
    	
List of Contract Rights
    
	
 
    	
 
    	
 
    
	
Schedule 1(f)
    	
 
    	
List of Licenses and   Permits
    
	
 
    	
 
    	
 
    
	
Schedule 6
    	
Disclosure Materials
    

 

 

AGREEMENT OF SALE AND PURCHASE

 

THIS AGREEMENT OF SALE AND PURCHASE (this “Agreement”) is made effective as of the 30th day of September, 2013 (the “Effective Date”) by and between FOUNDATION MEDICAL CENTER OF OKLAHOMA CITY, LLC, an Oklahoma limited liability company (the “Seller”), and GRAYMARK HEALTHCARE, INC., an Oklahoma limited liability company, or its assignee or nominee (“Buyer”).

 

RECITALS:

 

A.                                    Seller owns in fee simple the certain Real Property (defined below), together with the improvements located thereon and certain fixtures and equipment used in connection therewith;

 

B.                                    Buyer desires to purchase the Real Property pursuant to the terms herein.

 

In consideration of the covenants and provisions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.                                      Agreement to Sell and Purchase.  Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller the Property, subject to and in accordance with the terms and conditions of this Agreement.  For the purposes of this Agreement, the term “Property” shall mean and include the following:

 

(a)       All of that certain real property legally described in the attached Exhibit “A”, including, without limitation, the land, buildings, improvements, fixtures (including, without limitation, the sprinkling, plumbing, heating, cooling, ventilating, air conditioning, electrical, lighting and other systems), easements and all other right, title and interest appurtenant and otherwise relating thereto (collectively, the “Real Property”).

 

(b)       To the extent assignable by Seller, all of Seller’s right, title and interest in and to all building tenant leases (the “Leases”), contracts and other agreements incident to the operation of the business conducted on the Real Property, including, without limitation, management contracts, on-site maintenance contracts, janitorial contracts, and leasing commission agreements; all of which are listed on attached Schedule 1(b) (collectively, the “Contract Rights”).

 

(c)        All of Seller’s right, title and interest in and to all preliminary, final and proposed building plans and specifications relating to the Real Property; and all surveys, structural reviews, grading plans, topographical maps, architectural drawings and engineering, soils, seismic, geologic, environmental, and architectural reports, studies, certificates, and similar documents relating to the Real Property (collectively, the “Records and Plans”).

 

(d)       To the extent transferable or assignable by Seller, all of Seller’s right, title and interest in and to all trade names, licenses, permits, certificates of occupancy, approvals, dedications, subdivision maps, and entitlements issued, approved or granted by governmental or quasi-governmental entities or otherwise relating to the Property; and to the extent transferable 

 

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or assignable by Seller, any and all development rights and other intangible rights, titles, interests, privileges, and appurtenances owned by Seller and used in connection with the Seller’s ownership of the Property; all of which are listed on the attached Schedule 1(d) (collectively, the “Licenses and Permits”).

 

2.                                      Purchase Price.  The purchase price for the Property is Ten Million Five Hundred Eighty-Eight Thousand Two Hundred Thirty-Five Dollars ($10,588,235.00) (the “Purchase Price”), payable by Buyer as follows:

 

(a)       Ten Thousand and 00/100 Dollars ($10,000.00) (the “Initial Deposit”) by wire transfer payable to First American Title Insurance Company (“Escrow Agent”), which sum shall be delivered to Escrow Agent within three (3) business days following the Effective Date.  The Initial Deposit shall be held in a segregated interest bearing, federally insured account, by Escrow Agent in accordance with the Escrow Agreement attached hereto as Exhibit “B” (the “Escrow Agreement”) and this Agreement pending consummation of this transaction. Any interest earned on the Deposit (as defined below) shall be paid to Buyer unless Seller shall be entitled to the Deposit by reason of a default by Buyer, in which case such interest shall be paid to Seller.  Seller’s Federal Tax I.D. Number is 20-1331221.

 

(b)       Ten Thousand and 00/100 Dollars ($10,000.00) (the “Additional Deposit” and, collectively with the Initial Deposit, the “Deposit”) by wire transfer to the Escrow Agent within three (3) business days following the satisfactory completion of the Due Diligence Period. The Additional Deposit shall be held in the same manner and in accordance with the same conditions as the Initial Deposit pursuant to Section 2(a) hereinabove.  Upon satisfactory completion of the Due Diligence Period, the Deposit shall become non-refundable, except in the case of a default by Seller, in which case the Deposit, together with interest thereon, shall be returned to Buyer. Except in the case of the payment of the Deposit to Seller at the Closing in accordance with the terms hereof, Escrow Agent shall not disburse any part of the Deposit without providing five (5) business days prior written notice of such disbursement to both Buyer and Seller.

 

(c)        The balance of the Purchase Price (the Purchase Price minus the Deposit), subject to adjustments pursuant to this Agreement, including, but not limited to, those adjustments set forth in Section 14 of this Agreement, shall be paid to Seller at Closing (as defined below) in cash by wire transfer of immediately available federal funds.

 

3.                                      Closing.  Closing (“Closing”) shall be held on September 30, 2013 (the “Closing Date”); provided, however, Buyer shall have the right to extend the Closing Date for up to (30) calendar days upon written notice to Seller.  The Closing shall be an escrow closing with the Escrow Agent acting as the closing escrow agent. It is agreed that the time of Closing and the obligation of Seller to deliver the Deed (as defined below) to Buyer at Closing are of the essence of this Agreement.

 

4.                                      Title.  Buyer has ordered a title insurance commitment (the “Title Commitment”) from Escrow Agent.

 

(a)       The Title Commitment shall be prepared in accordance with the current ALTA Form, or Oklahoma equivalent, with the First American Title Insurance Company (the “Title Company”, agreeing to issue, upon recording of the Deed an ALTA owner’s title insurance policy to Buyer (“Title Policy”), and an ALTA Lender’s title insurance policy, or Oklahoma equivalent, issued to Buyer’s lender(s), if applicable, in the amount of the Purchase Price insuring title to the Real Property to be in the condition called for by this Agreement.   Seller shall cause the Escrow Agent at or prior to Closing to down date the Title Commitment to the date and time of the recording of the Deed and provide a “title mark-up” 

 

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showing the final form of the title insurance policy to be issued, which mark-up shall obligate the Escrow Agent to issue the final title insurance policy in such form.  The title mark-up and Title Policy shall be free from the standard requirements and exceptions, to the extent removable in Oklahoma, and shall be subject only to the liens, encumbrances or exceptions reasonably approved by Buyer.

 

(b)       Title Defects. Within five (5) business days of Buyer’s receipt of the latter of the Title Commitment or the Survey (as defined in Section 5 below), but in no event prior to the expiration of the Due Diligence Period, Buyer shall object in writing to any condition of title not satisfactory to Buyer, in Buyer’s sole discretion (hereinafter referred to as a “Title Defect”). Any items to which Buyer does not object within such five (5) business day period shall be deemed to be acceptable to Buyer.  If any objection is made, Seller shall have until prior to Closing in which to exercise commercially reasonable efforts to correct such Title Defects.  Seller’s commercially reasonable efforts requirement in this paragraph shall, without limitation, obligate Seller to cure any and all monetary liens caused by Seller.  If the Title Defect cannot be corrected prior to Closing despite Seller’s commercially reasonable efforts, or as otherwise extended by agreement of Buyer and Seller, Buyer may, at its option (a) declare this Agreement null and void and the Escrow Agent shall promptly return the Deposit, together with all accrued interest, to Buyer, or (b) elect to accept such title as Seller is able to convey and proceed to Closing.  If Buyer fails to notify Seller that Buyer is terminating this Agreement pursuant to this Section within five (5) business days after the expiration of the five (5) business day period described above, Buyer shall be deemed to have selected option (b) in the previous sentence.

 

5.                                      Due Diligence Period. For the purposes of this Agreement “Due Diligence Period” shall the period commencing on the Effective Date and terminating on September 30, 2013.  During the Due Diligence Period, Seller shall allow Buyer to conduct its inspection and review of the Property at times convenient to the Seller and Operator.  The physical condition and all other aspects of the Property (including appraisal, environmental, leases, economic and entitlements) shall meet the approval of Buyer, in Buyer’s sole judgment and discretion, based upon on-site inspections of the Property, and other investigations and inquiries made by Buyer or Buyer’s representatives during the Due Diligence Period including, but not limited to, a review of the Leases.  If Buyer disapproves the condition or any other aspect of the Property or this transaction as the result of such due diligence, for any reason or for no reason at all, Buyer shall notify Seller and the Escrow Agent in writing of such disapproval prior to the termination of the Due Diligence Period, and this Agreement shall thereupon be terminated. In that event, the Earnest Money shall be returned to Buyer and the Escrow Agent shall be authorized to make such disbursements of the Earnest Money without any further joinder or approval of Seller or Buyer. If Buyer does not notify Seller and the Escrow Agent in writing prior to the expiration of the Due Diligence Period that Buyer has disapproved the Property and elected to terminate this Agreement as herein provided, then Buyer shall be deemed conclusively to have waived the right to terminate this Agreement under the provisions of this Section 5.  Seller shall cooperate with Buyer to make the Property fully accessible to Buyer and Buyer’s consultants for purposes of Buyer’s inspections and tests during the Due Diligence Period.

 

6.                                      Disclosure Materials.  Seller has previously provided Buyer with the items listed on Schedule 6 attached hereto and incorporated by reference herein that are in Seller’s possession or control.  Buyer may request additional information from Seller, and if such additional 

 

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information is in Seller’s possession, Seller will make its best good-faith efforts to provide such information to Buyer.  All materials or information provided by Seller or Operator hereunder are referred to herein as the “Disclosure Materials”. Buyer understands and agrees that the Disclosure Materials and all material incorporating same shall be kept in confidence and shall not be revealed to outside parties other than (i) to the extent such information is otherwise available in the public domain, (ii) to its agents, representatives, lenders, investors, principals, affiliates subject to the confidentiality provisions hereof, or (iii) as otherwise required by law.  Should the proposed transaction not be completed, Buyer will immediately return to Seller and Operator all Disclosure Materials previously provided to Buyer.

 

7.                                      Disclaimer.  Buyer agrees that, except as and to the extent provided in the representations and warranties contained in this Agreement and the Deed, Buyer is purchasing the Property in “AS IS”, “WHERE IS”, “WITH ALL FAULTS” condition, and without any other warranties, representations or guarantees, either express or implied, of any kind, nature, or type whatsoever from, or on behalf of, Seller.  Without in any way limiting the generality of the immediately preceding sentence, Buyer further acknowledges and agrees that, in entering into this Purchase Agreement and closing the transaction contemplated hereunder, except as set forth in Section 8:

 

(a)       Seller and its affiliates, and their officers, directors, employees and agents, expressly disclaim, have not made and will not make, any warranties or representations, express or implied, with respect to the Property or any portion thereof, the physical condition or repair or disrepair thereof (whether patent or latent), the value, profitability or marketability thereof or the title thereto, or of any of the appurtenances, facilities or equipment thereon.

 

(b)       Seller and its affiliates, and their officers, directors, employees and agents, expressly disclaim, have not made and will not make, any warranties, express or implied, of merchantability, habitability or fitness for a particular use.

 

(c)        Buyer has not relied upon any statement or representation by or on behalf of Seller unless such statement or representation is specifically set forth in this Purchase Agreement.

 

8.                                      Representations and Warranties of Seller.  Seller hereby represents and warrants to Buyer as follows:

 

(a)       Seller is a Oklahoma limited liability company, duly organized and validly existing under the laws of the State of Oklahoma. Seller has complete power and authority to enter into this Purchase Agreement and all other agreements to be executed and delivered by Seller pursuant to the terms and provisions hereof, to perform its obligations hereunder and thereunder, and to consummate the transaction contemplated hereby.

 

(b)       Seller has not received written notice from any governmental authority of any action, suit or proceeding pending or, to the knowledge of Seller, threatened in eminent domain or for condemnation against or affecting the Real Property or any portion thereof or relating to or arising out of the ownership of the Property, in any court or before or by any federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality.

 

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(c)        Seller has not granted and/or entered into any of first refusal, right to repurchase or option to purchase the Property with or in favor of any third party, which would or could prevent Seller from consummating the sale of the Property to Buyer pursuant to this Agreement.

 

(d)       No proceeding in bankruptcy has ever been instituted by or against Seller nor has Seller ever made an assignment for the benefit of creditors.

 

(e)        No representation, statement or warranty by Seller contained in this Agreement or in any exhibit or schedule attached hereto contains or will contain any untrue statements or omits or will omit a material fact necessary to make the statement of fact therein recited not misleading.

 

(f)         Neither the execution and delivery of this Agreement, nor compliance with the terms and conditions of this Agreement by Seller, nor the consummation of the sale and conveyance of the Property to Buyer, constitutes or will constitute a violation or breach of the articles of organization of Seller, as the same may have been amended from time to time, or of any agreement or other instrument to which Seller is a party, to which it is subject or by which it is bound.

 

(g)        The execution and delivery of this Agreement have been approved by Seller, and no further action is required on the part of Seller to consummate the transaction contemplated hereby. The person(s) executing this Agreement on behalf of Seller shall have all requisite authority to execute this Agreement, and this Agreement, as executed, is valid, legal and binding upon Seller.  There are no proceedings pending or threatened by or against Seller in bankruptcy, insolvency or reorganization in any state or federal court.

 

(h)       There exists no default by Seller or to the best of Seller’s knowledge, Operator under any of the Leases, nor have any written notices of default been sent to any tenants or received by Seller relating to any default which, as of the date hereof, remains uncured or has not been waived, and, to the best knowledge and belief of Seller, there exists no state of facts which, with the giving of notice or lapse of time or both, would constitute a default under the Leases or which has given rise to a current dispute between Seller and the tenants under their respective Leases.

 

Seller agrees that the truthfulness of each of the foregoing representations and warranties is a condition precedent to the performance by Buyer of its obligations under this Agreement, and that all of the same are for Buyer’s sole benefit and reliance.  Upon the breach of any of the representations and warranties set forth in this Section 8 by Seller, Buyer may terminate this Agreement, and, as its sole remedy receive back the Deposit, and Buyer shall have no further obligations hereunder, or Buyer may, at its option, elect to close the purchase of the Property in accordance with the provisions of this Agreement, and waive any rights or remedies which Buyer may have by virtue of the breach of any such representation or warranty.  This Section 8 shall survive the Closing for a period of six (6) months.

 

9.                                      Representations and Warranties of Buyer.  Buyer hereby represents and warrants to Seller as follows:

 

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(a)       Buyer is a corporation duly organized and in good standing under the laws of the State of Oklahoma.  Buyer has complete power and authority to enter into this Agreement and all other agreements to be executed and delivered by Buyer pursuant to the terms and provisions hereof, to perform its obligations hereunder and thereunder, and to consummate the transaction contemplated hereby.

 

(b)       This Agreement constitutes the legal, valid and binding obligation of Buyer enforceable in accordance with the terms hereof.  Neither the execution of this Agreement nor the Closing and the consummation of the transaction contemplated hereby will constitute a violation or breach by Buyer of its organizational documents or any applicable laws.

 

(c)        The consent of any lender or other person or entity to which Buyer has an obligation is not required in connection with the execution and delivery of this Agreement by Buyer and the consummation of the transactions contemplated hereby.

 

(d)       No proceeding in bankruptcy has ever been instituted by or against Buyer, nor has Buyer ever made an assignment for the benefit of creditors.

 

(e)        That neither Buyer nor any affiliate of Buyer:  (i) is a Blocked Party; (ii) is owned or controlled by, or is acting, directly or indirectly, for or on behalf of any Blocked Party; or (iii) has instigated, negotiated, facilitated, executed or otherwise engaged in this Agreement, directly or indirectly, on behalf of any Blocked Party.  Buyer shall immediately notify Seller if any of the foregoing warranties and representations become untrue during the Term.  For purposes of this Agreement, “Blocked Party” shall mean any party or nation that (a) is listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, Department of the U.S. Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 24, 2001) or other similar requirements contained in the rules and regulations of OFAC (the “Order”) or in any enabling legislation or other Executive Orders in respect thereof (the Order and such other rules, regulations, legislation or orders are collectively called the “Orders”) or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the “Lists”); or (b) has been determined by competent authority to be subject to the prohibitions contained in the Orders.

 

Buyer agrees that the truthfulness of each of the foregoing representations and warranties is a condition precedent to the performance by Seller of its obligations under this Agreement, and that all of the same are for Seller’s sole benefit and reliance.  Upon the breach of any of the representations and warranties set forth in this Section 9 by Buyer, Seller may terminate this Agreement whereupon the Deposit shall be disbursed to Seller and Seller shall be deemed to have waived all other rights and remedies that Seller may have by virtue of the breach of any such representation or warranty.  This Section 9 shall survive the Closing for a period of six (6) months.

 

10.                               Conditions of Buyer’s Obligations.  The obligations of Buyer under this Agreement to purchase the Property from Seller is contingent on the satisfaction of the following conditions on or before the Closing (any one of which may be waived in whole or in part by Buyer within each condition’s time period):

 

(a)                         At Closing, all of the representations and warranties 

 

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by Seller set forth in this Agreement shall be true and correct in all material respects as though such representations and warranties were made at and as of Closing.

 

(b)       Seller shall have materially performed and complied with all covenants and agreements contained herein which are to be performed and complied with by Seller at or prior to the Closing.

 

Unless all of the foregoing conditions contained in this Section 10 are satisfied and completed prior to or at Closing, Buyer, at its election (in its sole discretion), may, either:  (i) extend the date for Closing until such conditions are satisfied, provided that such Closing may not be extended by more than thirty (30) calendar days without the written agreement of the Seller; or (ii) terminate this Agreement and have the Deposit refunded together with accrued interest; or (iii) waive in writing the satisfaction of any such condition or conditions, in which event this Agreement shall be read as if such condition or conditions no longer existed.

 

11.                               Conditions of Seller’s Obligations.  The obligations of Seller under this Agreement contingent on the satisfaction of the following conditions on or before the Closing (any one of which may be waived in whole or in part by Seller within each condition’s time period):

 

(a)       At Closing, all of the representations and warranties by Buyer set forth in this Agreement shall be true and correct in all material respects as though such representations and warranties were made at and as of Closing.

 

(b)       Buyer shall have materially performed and complied with all covenants and agreements contained herein which are to be performed and complied with by Buyer at or prior to the Closing.

 

Unless all of the foregoing conditions contained in this Section 11 are satisfied and completed prior to or at Closing, Seller, at its election (in its sole discretion), may, either:  (i) extend the date for Closing until such conditions are satisfied, provided that such Closing may not be extended by more than thirty (30) calendar days without the written agreement of the Buyer, or (ii) terminate this Agreement and have the Deposit released to Seller together with accrued interest; or (iii) waive in writing the satisfaction of any such condition or conditions, in which event this Agreement shall be read as if such condition or conditions no longer existed.

 

12.                               Closing Documents.  At the Closing, in addition to the documents required under other sections of this Agreement, Seller shall execute and deliver, as appropriate, the following to Buyer, or Buyer’s designee(s):

 

(a)       A special warranty deed to the Real Property, expressly warranting that the Real Property is good, indefeasible, in fee simple, duly executed and acknowledged by Seller and in proper form for recording, (the “Deed”).

 

(b)       An assignment and assumption of the Leases (“Lease Assignment”) in form satisfactory to the Buyer and Seller duly executed and acknowledged, assigning to Buyer all of Seller’s right, title and interest in and to the Leases with a complete release of Seller and an indemnity in favor of Seller for pre-closing and post-closing liabilities.

 

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(c)        A Non-foreign Person Certification in the form attached hereto as Exhibit”F”, as required under Section 1445 of the Internal Revenue Code.

 

(d)       A quitclaim assignment in form and substance mutually satisfactory to Seller and Buyer, duly executed by Seller, assigning to Buyer all of Seller’s right, title and interest in and to the Contract Rights, Licenses and Permits, Records and Plans, Guarantees if any and Warranties and any other permits, licenses, plans, authorizations and approvals relating to ownership of the Property.

 

(e)        A certificate certifying that the representations and warranties of Seller, as set forth in this Agreement, are true and correct in all material respects as of the Closing and shall survive Closing for a period of six (6) months.

 

(f)         An affidavit of title in favor of the Title Company, together with such other affidavits as are reasonably required by Buyer’s title insurer, in the forms used by such title insurance company.

 

(g)        A owner’s policy of title insurance using the most current ALTA Policy Form, or Oklahoma equivalent, or a binding, unconditioned “mark-up” of the Title Commitment, each or either showing title to the Property to be in the condition required by Section 4 hereof.

 

(h)       A Closing Statement accurately setting forth the financial terms of this transaction and a summary of the Purchase Price (the “Closing Statement”).

 

(i)           Such other documents as may be reasonably required to consummate this transaction in accordance with this Agreement.

 

13.                               Possession.  Possession of the Property shall be given to Buyer at Closing.

 

14.                               Prorations and Charges.

 

(a)       The building tenants are currently responsible under the terms of their respective Leases for the payment of all taxes and assessments on the Real Property and such tenants shall remain responsible for all real estate taxes and assessments through the day prior to Closing and after Closing.  Buyer and Seller agree that there shall be no proration at Closing for real estate taxes and assessments.

 

(b)       At Closing, Seller shall pay to Buyer all security deposits under the Leases, together with any interest accrued thereon, as well as any other funds paid to Seller by Operator on account of additional rent items not yet due and payable by Seller, such as tax and insurance escrows.  Seller shall make such payment in the form of a credit against the Purchase Price in favor of Buyer.

 

(c)        Unless otherwise set forth herein, Buyer and Seller shall each be solely liable for its own costs and expenses (including attorney fees) incurred in connection with the preparation of this Agreement and the preparation for and closing of the contemplated transaction.  Buyer will be solely responsible for all costs and expenses relating to its due diligence review of the Property and its financing.  Buyer shall be responsible for the cost of recording the Deed.  Seller shall be responsible for all transfer taxes assessed in connection with 

 

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the transactions contemplated herein. Seller and Buyer will each be responsible for one-half of any escrow fees.  Seller will be responsible all recording fees, except the recording fees associated with the Deed and those recording fees relating to Buyer’s financing, which shall be the sole responsibility of Buyer). Seller will be solely liable for the title insurance premium required for a standard ALTA title policy, or Oklahoma equivalent, and Buyer will be solely responsible for any premium associated with any endorsements thereto or non-standard title coverage.  All costs not specifically allocated herein shall be allocated in accordance with local custom, as advised by the Escrow Agent.

 

(d)       All rights, privileges, income, rents, liabilities, obligations, expenses and costs relating to the assignment and transfer of the Contract Rights, Records and Plans, Guarantees if any and Warranties and Licenses and Permits shall be paid by Seller at Closing.

 

15.                               Condemnation; Rezoning; Historic Designation.

 

(a)       If prior to Closing, Seller receives actual notice that any such eminent domain or condemnation proceeding is commenced or any change is made, or proposed to be made to: (i) any portion or all of the Property; (ii) the current means of ingress and egress to the Property; or (iii) to the roads or driveways adjoining the Property, Seller agrees immediately to notify Buyer in writing thereof.  Buyer then shall have the right, at Buyer’s option, to terminate this Agreement by giving written notice to Seller prior to Closing.  If Buyer elects to terminate this Agreement pursuant to the terms set forth in this Section 15, then the Deposit shall be immediately returned to Buyer together with all accrued interest, Buyer and Seller shall be released from any further liability hereunder and this Agreement shall be null and void.  If Buyer does not so terminate this Agreement, Buyer shall proceed to Closing hereunder as if no such proceeding had commenced and will pay Seller the full Purchase Price in accordance with this Agreement, and Seller shall assign to Buyer all of its right, title and interest in and to any compensation for such condemnation.  Seller shall not negotiate or settle any claims for compensation prior to Closing, and Buyer shall have the sole right (in the name of Buyer or Seller or both) to negotiate for, to agree to, and to contest all offers and awards.

 

(b)       If, prior to closing, Seller receives actual notice that the Real Property (and/or any improvement located thereon) or any portion thereof is or will be designated as a historic structure or other historic designation, or is threatened, commenced or finalized, or there is a threatened, commenced or finalized rezoning of the Real Property, Seller shall promptly notify Buyer, and Buyer may elect to terminate this Agreement prior to Closing, in which event the Deposit and all accrued interest thereon shall be returned forthwith to Buyer, Buyer and Seller shall be released from any further liability hereunder and this Agreement shall be null and void. If Buyer does not elect to terminate this Agreement, this Agreement shall remain in full force and effect and at Closing Seller shall assign to Buyer all Seller’s right, title and interest in and to any dollars paid by the governmental authority (if any) in connection with the rezoning of the Real Property or historic designation.

 

16.                               Default by Buyer.  If Buyer, without the right to do so and in default of its obligations hereunder, fails to complete Closing as to the Property), or if it is discovered prior to Closing that any of the representations and warranties set forth in Section 9 are materially untrue or materially misleading, then Seller shall have the right, as its sole and exclusive remedy for 

 

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such failure, to either, (i) terminate this Agreement by delivering written notice thereof to Buyer on or before the Closing, whereupon Escrow Agent shall promptly pay over the Deposit to Seller, and the parties shall have no further liability or obligations to each other except as specified herein; or (ii) waive such default and proceed to Closing without any increase in the Purchase Price, or (iii) Seller may exercise any remedies available to it at law or in equity.  The parties agree that it would be impracticable and extremely difficult to ascertain the actual damages suffered by Seller as a result of Buyer’s failure to complete the purchase of the Property pursuant to this Agreement, and that under the circumstances existing as of the date of this Agreement, the liquidated damages provided for in this Section represent a reasonable estimate of the damages which Seller will incur as a result of such failure.  The parties acknowledge that the payment of such liquidated damages is not intended as a forfeiture or penalty under any legal or equitable theory, but is intended to constitute liquidated damages to Seller.

 

17.                               Default by Seller.  If Seller defaults in the performance of any obligation contained in this Agreement or, without the right to do so and in default of its obligations hereunder, fails to complete Closing as to the Property, or if it is discovered prior to Closing that any of the representations and warranties set forth in Section 8 are materially untrue or materially misleading, then Buyer shall have the right, as its sole and exclusive remedy for such failure, to either (i) terminate this Purchase Agreement by delivering written notice thereof to Seller, whereupon Escrow Agent shall promptly return the Deposit to Buyer, and Seller shall reimburse Buyer for all reasonable, actual, third party out-of-pocket expenses incurred by Buyer in connection with the transactions contemplated by this Agreement (not to exceed $100,000),  and the parties shall have no further liability or obligations to each other except as specified herein; (ii) waive such default and proceed to Closing without any reduction in or setoff against the Purchase Price; or (iii) Buyer may exercise any remedies available to it at law or in equity.  The parties agree that it would be impracticable and extremely difficult to ascertain the actual damages suffered by Buyer as a result of Seller’s failure to complete the purchase of the Property pursuant to this Agreement, and that under the circumstances existing as of the date of this Agreement, the liquidated damages provided for in this Section represent a reasonable estimate of the damages which Buyer will incur as a result of such failure.  The parties acknowledge that the payment of such liquidated damages is not intended as a forfeiture or penalty under any legal or equitable theory, but is intended to constitute liquidated damages to Buyer.

 

18.                               Risk of Loss.  Seller shall bear the risk of all loss or damage to the Property from all causes until Closing.  If at any time prior to Closing any portion of the Property is destroyed or damaged as a result of fire or any other casualty whatsoever, Seller shall promptly give written notice thereof to Buyer and Buyer shall have the right:  (i) to terminate this Agreement by written notice to Seller, whereupon Escrow Agent shall return the Deposit (with any accrued interest) to Buyer, and thereafter this Agreement shall be void and neither party shall have any further rights or obligations hereunder except as specified herein; or (ii) to proceed with this Agreement and to notify Seller that, at Buyer’s sole option, Seller either shall:  (A) use any available insurance proceeds to restore the Property prior to Closing to its condition as of the Effective Date; or (B) in lieu of restoration, prior to Closing, clear the site of debris and deposit all remaining insurance proceeds in escrow with Escrow Agent and such funds, together with interest thereon, shall be disbursed to Buyer at Closing.  All unpaid claims and rights in connection with any such losses shall be assigned to Buyer at Closing without in any manner affecting the Purchase Price.

 

19.                               Brokerage.  Buyer represents and warrants to Seller and Seller represents and warrants to Buyer that each dealt with no broker, agent, finder or other intermediary in connection with this sale and purchase. Buyer and Seller hereby agree to 

 

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indemnify and hold each other harmless from and against any and all claims, liabilities, costs and expenses, including, without limitation, reasonable attorneys’ fees, incurred as a result of any claims that may be made against either party by any person claiming a commission, brokerage fee or other compensation in consequence of the transaction evidenced by this Agreement.

 

20.                               Operation of the Property Prior to Closing.  Prior to Closing:

 

(a)       Seller shall comply with all of the obligations of landlord under the Leases and all other agreements and contractual arrangements affecting the Property by which Seller is bound.

 

(b)       Seller shall promptly notify Buyer of Seller’s receipt of any notice from the building tenants alleging that Seller is in default of its obligations under any of the Leases or any permit or agreement to which Seller is a party, affecting the Property, or any portion or portions thereof.

 

(c)        From and after the expiration of the Due Diligence Period, no contract for or on behalf of or affecting the Property shall be negotiated or entered into by Seller which cannot be terminated by Seller prior to Closing without charge, cost, penalty or premium.

 

(d)       From and after the expiration of the Due Diligence Period until Closing, Seller shall maintain the Contract Rights, Records and Plans, Guarantees if any and Warranties, and Licenses and Permits in full force and effect as applicable and shall not terminate, modify or waive any provision thereof. Seller shall not enter into any new contracts or agreements relating to the Property without Buyer’s prior written consent.

 

21.                               Notice.  All notices, requests and other communications under this Agreement shall be in writing and shall be delivered: (i) in person; or (ii) by registered or certified mail, return receipt requested; or (iii) by recognized overnight delivery service providing positive tracking of items (for example, Federal Express); or (iv) by facsimile transmission (so long as one of methods (i), (ii) or (iii) are simultaneously utilized) addressed as follows or at such other address of which Seller or Buyer shall have given notice as herein provided:

 

If intended for Seller:

 

Foundation Medical Center of Oklahoma City, LLC

14000 N. Portland Ave., Suite 203

Oklahoma City, OK 73134

Attn:                    Robert M. Byers

Fax:                       405-608-1802

 

If intended for Buyer:

 

Graymark Healthcare, Inc.

204 N. Robinson, Floor 4

Oklahoma City, OK 73102

Attn: Stanton Nelson, CEO

Fax:  405-601-4550

 

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All such notices, requests and other communications shall be deemed to have been sufficiently given for all purposes hereof only upon receipt by the party to whom such notice is sent. Notices by the parties may be given on their behalf by their respective attorneys.

 

22.                               Indemnities; Waiver and Release.

 

(a)               Seller Indemnification. Seller agrees to indemnify and hold harmless Buyer from and against, and to reimburse Buyer with respect to any and all claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and court costs) asserted against or incurred by Buyer by reason of or arising out of a breach of any representation, warranty or covenant of Seller set forth in this Agreement. Subject to the provisions of the Lease Assignment, the foregoing shall survive the Closing for a period of six (6) months.

 

(b)               Buyer Indemnification. Buyer agrees to indemnify and hold harmless Seller from and against, and to reimburse Seller with respect to any and all claims, demands, causes of action, losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and court costs) asserted against or incurred by Seller by reason of or arising out of a breach of any representation, warranty or covenant of Buyer set forth in this Agreement. The foregoing shall survive the Closing for a period of six (6) months.

 

(c)                Mutual Waiver and Release.  Buyer and Seller, on behalf of their respective affiliates, successors, assigns, heirs, representatives, agents, independent contractors, and officers, hereby waive, release, and discharge each other, Operator and each of their respective affiliates, successors, assigns, heirs, representatives, insurers, attorneys, agents, independent contractors, and officers of and from all claims, counterclaims, expenses, attorney’s fees, obligations, and liability of any kind whatsoever, whether such claims were asserted or may have been asserted, whether presently known or unknown, including, but not limited to claims arising out of or relating to their relationship to each other prior to the Closing of this transaction, including, without limitation, their landlord/tenant relationship, and any actions or omissions, or alleged breach of contract arising between them prior to the date of this Agreement, and further including, but not limited to, any claims which were asserted or which may have been asserted by and between the parties prior to Closing.  Notwithstanding this waiver and release, the parties retain their rights to enforce the terms of this Agreement.

 

23.                               Further Assurances.  After Closing, at Buyer’s sole cost and expense, Seller shall execute, acknowledge and deliver, for no further consideration, all assignments, transfers, deeds and other documents as Buyer may reasonably request to vest in Buyer and perfect Buyer’s right, title and interest in and to the Property.

 

24.                               Like Kind Exchanges.  Buyer or Seller may elect to exchange the Property for other real estate of a like kind in accordance with Section 1031 of the Internal Revenue Code of 1986 as amended (the “Code”).  To the extent possible, the provisions of this Section shall be interpreted consistently with this intent.  To exercise any rights under this Section, the party electing to exchange the Property shall provide the other with a written statement stating its intent to enter into an exchange at least five days prior to Closing.  Either party’s election to exchange, rather than sell or buy, the Property for other real estate of a like kind shall be at no cost or liability to the other.

 

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25.                               Miscellaneous.

 

(a)       The “captions” or “headings” in this Agreement are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this Agreement or any of the provisions hereof.

 

(b)       Neither Buyer nor Seller shall assign this Agreement or any interest therein without the prior written consent of the other party which consent may be withheld in the other party’s sole discretion, except however, Buyer shall have the right to assign this  Agreement, in whole or in part, to Physicians Realty, L.P. or an affiliate thereof, by providing written notice to Seller no later than five (5) business days prior to Closing; provided, however, that no such assignment will relieve Buyer from any of its duties or obligations under this Agreement.

 

(c)        This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and permitted assigns.

 

(d)       This Agreement, including the exhibits attached hereto, contains the entire agreement as to the Property between Seller and Buyer; and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever concerning this sale and purchase.  This Agreement shall not be altered, amended, changed or modified except in writing executed by the parties hereto.

 

(e)        This Agreement shall be construed in accordance with the internal laws of the State of Oklahoma, without giving effect to its conflicts of laws provisions.

 

(f)         All parties to this Agreement having participated fully and equally in the negotiation and preparation hereof, this Agreement shall not be more strictly construed, or any ambiguities within this Agreement resolved, against either party hereto.  It is the intent of Buyer and Seller that this Agreement be binding on both parties and not illusory. Thus, wherever this Agreement grants Buyer or Seller discretion, which might otherwise make this Agreement illusory, the party exercising its discretion must act reasonably according to commercial standards.

 

(g)        Time is of the essence of this Agreement and Buyer and Seller hereby agree that the times provided for in this contract are reasonable times for each party to complete its respective obligations.

 

(h)       This Agreement may be executed or amended in counterparts, all of which taken together shall constitute one and the same instrument.

 

(i)           If any of the terms or conditions contained herein shall be declared to be invalid or unenforceable by a court of competent jurisdiction, then the remaining provisions and conditions of this Agreement, or the application of such to persons or circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby and shall remain in full force and effect and shall be valid and enforceable to the full extent permitted by law.

 

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(j)          After the Closing, at the request of Buyer and at Buyer’s expense, Seller shall make available to Buyer the historical financial information in Seller’s possession regarding the operation of the Property to the extent required by Buyer in order to prepare stand-alone audited financial statements for such operations in accordance with generally accepted accounting principles, as of the end of fiscal year 2012, and any required subsequent date or period, and to cooperate (at Buyer’s expense) with Buyer and any auditor engaged by Buyer for such purpose.

 

26.                               Non-Disclosure.  Seller and Buyer each agree that it will not issue any press release, advertisement or other public communication with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other party except to the extent required by law, which consent shall not be unreasonably withheld, conditioned or delayed.  Seller and Buyer hereby agree to indemnify and hold harmless the other party in the event that either party fails to comply with the terms and conditions of this Section 26.  The provisions of this Section 26 shall survive the Closing or any termination of this Agreement

 

27.                               Attorneys’ Fees.  In connection with any disputes or actions arising out of the transactions contemplated by this Agreement, or the breach, enforcement or interpretation of this Agreement, the prevailing party shall be entitled to recover, from the party not prevailing, all reasonable out of pocket costs and attorney, paralegal and expert fees incurred by the prevailing party before trial, at trial, at retrial, on appeal, at all hearings and rehearings, and in all administrative, bankruptcy and reorganization proceedings.

 

28.                               Waiver of Jury Trial.  THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THAT ANY PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS PURCHASE AGREEMENT OR ANY OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH, OR IN RESPECT OF ANY COURSE OF CONDUCT, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF ANY PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT.

 

(Signatures contained on following pages.)

 

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IN WITNESS WHEREOF, intending to be legally bound, the parties have caused this Agreement to be duly executed, under seal.

 

	
SELLER:
    	
 
    
	
 
    	
 
    
	
FOUNDATION MEDICAL CENTER OF OKLAHOMA CITY,   LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Robert M. Byers
    	
 
    
	
 
    	
Robert M. Byers, Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date: 
    	
September 30, 2013
    	
 
    
				

 

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BUYER

 

	
GRAYMARK   HEALTHCARE, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Stanton Nelson
    	
 
    
	
 
    	
Stanton Nelson, CEO
    	
 
    
	
 
    	
 
    	
 
    
	
Date: 
    	
September 30, 2013
    	
 
    

 

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