Document:

exv10w14

EXHIBIT 10.14

Amended and Restated

John B. Sanfilippo & Son, Inc.

Sanfilippo Value Added Plan (“SVA Plan”)

	I.	 	Purposes of the Plan
	 
	 	 	The purpose of the Plan is to more closely link incentive cash compensation to the
creation of stockholder value. The Plan is intended to foster a culture of performance and
ownership, promote employee accountability, and establish a framework of manageable risks
imposed by variable pay. The Plan is also intended to reward long-term, continuing
improvements in stockholder value with an opportunity to participate in a portion of the
wealth created.
	 
	II.	 	Definitions
	 
	 	 	“Actual Improvement” means the annual change in SVA, as determined under Section
V(B)(1) of the Plan, which can be positive or negative.
	 
	 	 	“Annual Salary” means, with respect to a Participant, his or her annual base salary rate in
a particular fiscal year of the Company.
	 
	 	 	“Board” means the Board of Directors of the Company.
	 
	 	 	“Bonus Bank” means the amount of a Plan Participant’s Bonus potential that is not yet earned
and which is accounted for by the Company in a non-interest bearing book entry account until
such time as it may be earned and paid in the form of Bonus Paids under the Plan.
	 
	 	 	“Bonus Declared” means the annual bonus amount for a Plan Year, as determined under Section
V of the Plan.
	 
	 	 	“Bonus Interval” means the amount of SVA growth or diminution as a variance from Target SVA
Improvement that would either (i) result in the doubling of the Target Bonus for SVA
performance above Target SVA Improvement; or, (ii) result in the realization of no Target
Bonus for SVA performance below Target SVA Improvement.
	 
	 	 	“Bonus Paid” has the meaning set forth in Section VI(B).
	 
	 	 	“Capital Charge” means the Cost of Capital multiplied by the Company’s aggregate
capital, as determined by the Committee.
	 
	 	 	“Cause” means, in the judgment of the Committee, (i) the breach by the Participant of any
employment agreement, employment arrangement or any other agreement with the Company

 

 

John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	 	or a Subsidiary, (ii) the Participant engaging in a business that competes with the Company
or a Subsidiary, (iii) the Participant disclosing business secrets, trade secrets or
confidential information of the Company or a Subsidiary to any party, (iv) dishonesty,
misconduct, fraud or disloyalty by the Participant, (v) misappropriation of corporate funds,
or (vi) such other conduct by the Participant of an incompetent, insubordinate, immoral or
criminal nature as to have rendered the continued employment of the Participant incompatible
with the best interests of the Company and its Subsidiaries.
	 
	 	 	“Change in Control” means the later of: (i) date on which no shares of the Company’s Class A
common stock, $.01 par value per share, remain outstanding, and (ii)(A) a change in the
ownership of the Company, (B) a change in effective control of the Company or (C) a change
in the ownership of a substantial portion of the assets of the Company (each of A, B and C
as defined in Section 409A).
	 
	 	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	 	“Committee” has the meaning set forth in Section IV(A).
	 
	 	 	“Company” means John B. Sanfilippo & Son, Inc., a Delaware corporation, and its successors
and assigns.
	 
	 	 	“Cost of Capital” means the Company’s cost of equity plus its cost of debt, expressed as a
percentage, as determined by the Committee using a weighted average of the expected return
on the Company’s debt and equity capital. Cost of Capital is intended to reflect the rate of
return that an investor could earn by choosing another investment with equivalent risk.
	 
	 	 	“Declared Bonus Multiple” means the multiple determined in accordance with Section V(B)(4)
of the Plan for purposes of determining a Participant’s Bonus Declared.
	 
	 	 	“Disability” means a Participant is (i) unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can be expected
to result in death or can be expected to last for a continuous period of not less than 12
months, or (ii) by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months, receiving income replacement benefits for a period of not less than 3
months under an accident and health plan covering employees of the Company or Subsidiary;
or, if different, as may be defined for purposes of Section 409A.
	 
	 	 	“Key Employee” means a Participant who is a “specified employee” for purposes of Section
409A.
	 
	 	 	“NOPAT” means the Company’s net operating profit after tax, as determined by the Committee
from the Company’s audited financial statements.
	 
	 	 	“Participant” shall be as defined in Section III.

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	 	“Performance Target Bonus” means the annual Bonus Declared a Participant would earn, if any,
for a Plan Year if Actual Improvement equaled Target SVA Improvement, determined by
multiplying a Participant’s Annual Salary for that Plan Year by the Participant’s
Performance Target Bonus Percentage for that Plan Year.
	 
	 	 	“Performance Target Bonus Percentage” means the percentage of a Participant’s Annual Salary,
as established or approved by the Committee for purposes of determining a Participant’s
Performance Target Bonus.
	 
	 	 	“Plan” means the John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan.
	 
	 	 	“Plan Year” means the fiscal year of the Company.
	 
	 	 	“Retirement” means a Participant’s termination of employment, other than for Cause, either:
(i) on or after age 65, or (ii) on or after age 55 if the Participant has been credited
with, at least, 10 full years of employment at the time of his termination of employment.
	 
	 	 	“Section 409A” means Code Section 409A and all applicable rules and regulations related
thereto.
	 
	 	 	“Subsidiary” means any corporation at least eighty percent (80%) of the outstanding
voting stock of which is owned by the Company.
	 
	 	 	“SVA” means the “stockholder value added” of the Company determined each Plan Year by
deducting the Company’s Capital Charge from NOPAT, as determined by the Committee.
	 
	 	 	“Target Bonus” means the annual bonus a Participant may earn which shall be based on one or
more of the following with weightings as determined by the Committee: Actual Improvement
(with a minimum weighting of eighty percent (80%))and individual Participant performance.
	 
	 	 	“Target SVA Improvement” means the targeted improvement in annual SVA growth for the Bonus
Declared Percentage to be earned in full.
	 
	 	 	“Termination for Cause” means a determination by the Committee following a Participant’s
termination of employment for any reason that, prior to such termination of employment,
circumstances constituting Cause existed with respect to such Participant.
	 
	III.	 	Eligibility
	 
	 	 	An employee of the Company or a Subsidiary who, individually or as part of a group, is
selected by the Committee to be eligible to participate in the Plan for the Plan Year shall
become a Participant as of the first day of such Plan Year, unless otherwise determined by
the Committee.
	 
	IV.	 	Administration

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	 	A.	 	The Committee
	 
	 	 	 	The Compensation Committee of the Board shall be the Committee hereunder unless
a new, independent committee is selected by the Board. For this purpose, a new
Committee will be deemed independent if it is comprised solely of two or more
directors who are “independent directors” within the meaning of the The Nasdaq Stock
Market, Inc.’s rules and regulations.
	 
	 	B.	 	Powers
	 
	 	 	 	The Committee shall have full and exclusive discretionary power to:

1. Interpret the Plan,

2. To determine those employees of the Company and its Subsidiaries who are eligible
to participate in the Plan, and

3. Adopt such rules, regulations, and guidelines (including the establishment of
performance criteria), for administering the Plan as the Committee may deem
necessary or proper, including the full discretion not to make payment of any or all
of the Bonus Paid determined in Section V.

	 	C.	 	Adjustment to Payments

1. Subject to final approval of the Committee, individual Participant payments
may be subject to change by recommendation of the Participant’s manager and senior
management team, with consideration given to the individual’s job performance.

2. If a Participant violates any Company policy, the Company retains the right to
declare forfeited any award granted to a Participant hereunder, to the extent it
remains unpaid; provided, however, that in the event that a Participant’s prior Plan
Year Bonus Paid has not yet been paid at the time the Company declares such
Participant’s award forfeited, such forfeited amounts shall be distributed to other
Participant(s) on a pro rata basis, or distributed to other Participant(s) as
otherwise determined by the Committee.

3. In the event that (x) a Participant commits misconduct, fraud or gross negligence
(whether or not such misconduct, fraud or gross negligence is deemed or could be
deemed to be an event constituting Cause) and as a result of, or in connection with,
such misconduct, fraud or gross negligence the Company restates any of its financial
statements or (y) the Committee determines a Termination for Cause occurred with
respect to a Participant, the Committee may require any or all of the following: (i)
any award granted to the

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

Participant hereunder, to the extent it remains unpaid at the time of the
restatement, be forfeited; provided, however, that in the event that a Participant’s
prior Plan Year Bonus Paid has not yet been paid at the time the Committee declares
such Participant’s award forfeited, such forfeited amounts shall be distributed to
other Participant(s) on a pro rata basis, or distributed to other Participant(s) as
otherwise determined by the Committee; and (ii) the Participant pay to the Company
in cash all or a portion of the amounts paid hereunder during the twelve-month
period (or such other period as determined by the Committee) prior to the financial
restatement or the Participant’s termination of employment, as the case may be.

	 	D.	 	Third-Party Advisors
	 
	 	 	 	The Committee may employ attorneys, consultants, accountants, and other
persons. The Board, Committee, the Company and its officers shall be entitled to
rely upon the advice or opinion of such persons.
	 
	 	E.	 	Binding Effect of Committee Actions
	 
	 	 	 	All actions taken and all interpretations and determinations made by the
Committee shall be final and binding upon the Participants, the Company, and all
other interested persons. No member of the Committee shall be personally liable for
any action, determination, or interpretations made in good faith with respect to the
Plan. All members of the Committee shall be fully protected and indemnified by the
Company, to the fullest extent permitted by applicable law, in respect of any such
action, determination, or interpretation of the Plan.
	 
	 	F.	 	Foreign Jurisdiction
	 
	 	 	 	The Committee shall have the discretion to modify or amend the Plan, or adopt
additional terms and/or conditions, as may be deemed necessary or advisable in order
to comply with the local laws and regulations of any jurisdiction.

	V.	 	Determination of Bonus Declared

	 	A.	 	Determination of SVA and Actual Improvement

1. Beginning of Plan Year Determinations. At the beginning of each applicable
Plan Year, the following determinations shall be made:

	 	a)	 	The Committee shall determine the Company’s annual SVA as of the end
of the preceding Plan Year.

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	b)	 	The Committee shall determine or approve
Performance Target Bonus Percentages for each Participant and the
Company’s Cost of Capital for the applicable Plan Year.
	 
	 	c)	 	The Committee shall establish the Target SVA
Improvement and the Bonus Interval for the applicable Plan Year, which
standards may be set by the Committee for one or more Plan Years.

2. End of Plan Year Determinations. As of the end of each applicable Plan Year,
the following determinations shall be made:

	 	a)	 	The Committee shall determine the Company’s annual SVA as of the end
of the Plan Year and the resulting Actual Improvement.
	 
	 	b)	 	The Committee shall determine, or approve the
determination of, the Declared Bonus Multiple for such Plan Year,
consistent with the terms of the Plan.

	 	B.	 	Determination of Bonus Declared
	 
	 	 	 	Each Participant shall be credited with a Bonus Declared, if any, for a Plan
Year according to the following:

1. The Actual Improvement in SVA for a Plan Year shall be determined by
subtracting the SVA for the immediately preceding Plan Year from the SVA for the
Plan Year.

2. If the Actual Improvement exceeds the Target SVA Improvement, the amount of that
excess shall be the “Excess Improvement”;

3. If the Target SVA Improvement exceeds the Actual Improvement, the amount of that
excess shall be the “Shortfall”;

4. The Declared Bonus Multiple shall be determined by comparing the Excess
Improvement or Shortfall to the Target SVA Improvement and Bonus Interval, according
to the following:

	 	a)	 	If the Actual Improvement equals the Target SVA Improvement, the
Declared Bonus Multiple shall equal one (1).
	 
	 	b)	 	If the Actual Improvement exceeds the Target
SVA Improvement, the Declared Bonus Multiple shall equal the Excess
Improvement divided by the Bonus Interval, plus one (1).

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	c)	 	If the Actual Improvement is less than the
Target SVA Improvement, the Declared Bonus Multiple shall equal the
Shortfall (expressed as a negative number) divided by the Bonus
Interval, plus one (1).

5. The Bonus Declared for each Participant shall equal the Participant’s
Performance Target Bonus, multiplied by the Declared Bonus Multiple, with such
amount being credited to the Participant’s Bonus Bank in accordance with Section VI
of this Plan;

6. A Participant’s Bonus Declared may be based upon the Declared Bonus Multiple for
the Company only, or at the discretion of the Committee, a Participant’s Bonus
Declared may be based upon the Declared Bonus Multiple for a particular division,
operation, or Subsidiary of the Company, or combination thereof as determined by the
Committee.

	VI.	 	Payment of Bonus Paid

	 	A.	 	Bonus Bank Determination

Each Participant shall have a Bonus Bank to which the Bonus Declared shall be credited.
For each applicable Plan Year the Bonus Bank shall be increased by the amount of any
positive Bonus Declared or decreased by the amount of any negative Bonus Declared. The bonus
payable to a Participant with respect to the applicable Plan Year, if any (“Bonus Paid”),
shall be determined as set forth in Section VI(B).

	 	B.	 	Determination of Bonus Paid

After the end of each applicable Plan Year, after first crediting the Participant’s
Bonus Bank with the Participant’s Bonus Declared (which may be positive or negative), the
Company shall pay each Participant a Bonus Paid equal to the sum of (i) the Participant’s
Bonus Declared, if positive (but not exceeding 120% of the Performance Target Bonus), plus
(ii) one-third
(1/3) of the Participant’s remaining Bonus Bank balance as of the payment date
(after reducing for (i)); provided that the Bonus Paid may not exceed the Participant’s
Bonus Bank. If the amount in a Participant’s Bonus Bank prior to determining the Bonus Paid
is less than the Participant’s Bonus Declared, the entire amount of the Participant’s Bonus
Bank shall be paid. No Bonus Paid shall be payable to a Participant unless and until the
Participant has a positive balance in his or her Bonus Bank as of an applicable payment
date. The Bonus Paid shall be paid by the Company within thirty (30) days following the
Committee’s determination of the Declared Bonus Multiple, but in no event earlier than the
first day of the Plan Year following the applicable Plan Year and no later than the
fifteenth (15th) day of the third month following the end of the applicable Plan
Year. The Bonus Paid determined under this subsection shall not be earned and vested by the
Participant until such time as the date on which it is paid; provided, however, that in the
event that a Participant’s prior Plan Year Bonus Paid has not yet been paid at the time such

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

Participant’s award is forfeited pursuant to the terms of this Plan, such forfeited amounts
shall be distributed to other Participant(s) on a pro rata basis, or distributed to other
Participant(s) as otherwise determined by the Committee.

	 	C.	 	Payment Upon Termination of Employment

1. In General. Except as specified below, and unless otherwise determined by
the Committee, in the event a Participant’s employment is terminated for any
reason, including by the Company for Cause or by the Participant for any reason, or
the Participant becomes ineligible to participate in the Plan, (i) the Participant
shall not earn, and Participant’s Bonus Bank shall not be credited with, any Bonus
Declared for the Plan Year in which the termination occurs, and (ii) in the event
that the prior Plan Year Bonus Paid has not yet been paid, the Participant shall not
earn, and Participant’s Bonus Bank shall not be credited with, any Bonus Declared
for such prior Plan Year; provided, however, that any amounts forfeited pursuant to
this VI(C)(1)(ii) shall be distributed to other Participant(s) on a pro rata basis,
or distributed to other Participant(s) as otherwise determined by the Committee.
Unless otherwise determined by the Committee, the full amount of the Participant’s
Bonus Bank shall be forfeited in its entirety as of the termination date and the
Participant shall have no rights or interests in the Plan thereafter. Any payments
made under this Section VI(C)(1) at the discretion of the Committee shall be within
the time set forth in Section VI(B) and the Participant shall have no rights or
interests in the Plan thereafter.

2. Upon Death, Disability, Retirement, or Termination by the Company Other than
for Cause. In the event of a Participant’s Death, Disability, Retirement or
termination by the Company other than for Cause:

(i) To the extent not previously paid, any Bonus Paid with respect to
the Plan Year preceding the Plan Year in which termination occurs shall be
considered vested and earned in accordance with the terms of Section VI(B)
and shall be paid by the Company to the former Participant, or in the event
of his or her death, to his or her estate or designated beneficiary, within
the time set forth in Section VI(B) and the Participant shall have no rights
or interests in the Plan thereafter.

(ii) The Participant’s Bonus Bank shall be credited as of the end of the
Plan Year in which the termination occurs (the “Termination Year”), with a
Bonus Declared determined in accordance with Section VI(B) of the Plan,
multiplied by a fraction, the numerator of which shall equal the

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

total number of days during the Termination Year in which the Participant
was employed by the Company, and the denominator of which shall be 365.
Thereafter, following the payment, if any, of the Bonus Paid for the
Termination Year, the full amount of the Participant’s Bonus Bank (if a
positive balance then exists) shall be considered vested and earned as of
the termination date and shall be paid by the Company to the former
Participant, or in the event of his or her death, to his or her estate or
designated beneficiary, in one lump sum within the time set forth in Section
VI(B) above and the Participant shall have no rights or interests in the
Plan thereafter.

3. Condition of Payments. At the discretion of the Committee, any payment hereunder
that is due to termination of employment by the Company other than for Cause or by
the Participant may be subject to a requirement that the Participant execute a
release of claims (including claims relating to age discrimination) against the
Company and its Subsidiaries and related persons at the time and in the form
determined by the Company from time to time.

	VII.	 	General Provisions

	 	A.	 	No Right to Employment or Participation
	 
	 	 	 	No Participant or other person shall have any claim or right to be retained in
the employment of the Company or a Subsidiary by reason of the Plan or any Bonus
Declared or Bonus Bank. Selection for eligibility to participate in the Plan for any
given Plan Year shall not entitle the Participant to participate in any subsequent
Plan Year. In the event a Participant is not selected to participate in a subsequent
Plan Year, such Participant’s Bonus Bank shall remain unchanged for such year and
Participant shall not be entitled to any payment of such Bonus Bank unless and until
such Participant again becomes eligible or is again selected to participate in the
Plan.
	 
	 	B.	 	Plan Expenses
	 
	 	 	 	The expenses of the Plan and its administration shall be borne by the Company.
	 
	 	C.	 	Plan Not Funded
	 
	 	 	 	The Plan shall be unfunded. The Company shall not be required to establish any
special or separate fund or to make any other segregation of assets to assure the
payment of any Bonus Declared or Bonus Bank under the Plan.
	 

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	D.	 	Reports
	 
	 	 	 	The appropriate officers of the Company shall cause to be filed any reports,
returns, or other information regarding the Plan, as may be required by applicable
statute, rule, or regulation.
	 
	 	E.	 	Governing Law
	 
	 	 	 	The validity, construction, and effect of the Plan, and any actions relating to
the Plan, shall be determined in accordance with the laws of the state of Illinois
and applicable federal law, without regard to the conflicts of laws provisions of
any state.

	VIII.	 	Amendment and Termination of the Plan
	 
	 	 	The Board may, from time to time, amend the Plan in any respect, or may discontinue or
terminate the Plan at any time, provided, however, that:

	 	A.	 	Impact on Existing Rights
	 
	 	 	 	No amendment, discontinuance or termination of the Plan shall alter or
otherwise affect the amount credited to a Participant’s Bonus Bank or affect the
amount of a Bonus Declared which may be earned prior to the date of termination;
	 
	 	B.	 	Impact on SVA Performance Measurement System
	 
	 	 	 	No amendment shall be made which would replace the SVA performance measurement
system for purposes of determining the Bonus Declared under the Plan during a Plan
Year for such Plan Year, provided that the Board or Committee shall have the
authority to adjust and establish Target SVA Improvement, Performance Target Bonus
Percentages, and other criteria utilized in the SVA performance measurement system;
	 
	 	C.	 	Consequence of Full Termination of Plan
	 
	 	 	 	In the event of the termination of this Plan, the full amount, if any, then
credited to a Participant’s Bonus Bank shall be paid in full within sixty (60) days
following the effective date of termination, but in no event later than the
fifteenth (15th) day of the third month following the Plan Year in which
the Plan is terminated. If the Plan is terminated prior to the end of a Plan Year,
the Bonus Declared for that Plan Year shall be determined and credited to a
Participant’s Bonus Bank as set forth in Section VI of the Plan, assuming that
Target SVA Improvement for that Plan Year had been achieved, then pro-rated for the
actual number of days in the Plan Year before the Plan was terminated; and
	 
	 	D.	 	Consequence of Change in Control
	 
	 	 	 	In the event of a Change in Control, the Bonus Declared for that Plan Year
shall be determined and credited to a Participant’s Bonus Bank as set forth in
Section VI of the Plan, assuming that Target SVA Improvement for that Plan Year had
been achieved, then pro-rated for the actual number of days in the Plan Year before
the Change in Control, except that the Bonus Paid shall equal one hundred percent
(100%) of the Participant’s

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John B. Sanfilippo & Son, Inc. Sanfilippo Value Added Plan

	 	 	 	Bonus Bank after such pro-rated Bonus Declared is credited, and shall be paid at the
effective time of the Change in Control.
	 
	 	E.	 	Section 409A
	 
	 	 	 	Notwithstanding anything to the contrary in this Plan:

1. To the extent required in order to avoid accelerated taxation and/or tax
penalties under Section 409A, amounts that would otherwise be payable pursuant to
this Plan during the six-month period immediately following the Participant’s
termination of employment shall instead be paid on the first business day after the
date that is six months following the Participant’s “separation from service” within
the meaning of Section 409A; and

2. A Participant shall not be entitled to any payments resulting from or arising due
to a “termination of employment”, “termination” or “retirement” (or other similar
term having a similar import) unless (and until) such Participant has “separated
from service” within the meaning of Section 409A.

3. To the extent any provision of the Plan or action by the Committee would subject
any Participant to liability for interest or additional taxes under Section 409A, it
will be deemed null and void, to the extent permitted by law and deemed advisable by
the Committee. It is intended that the Plan will be exempt from Section 409A (or if
subject to Section 409A, compliant with Section 409A), and the Plan shall be
interpreted and construed on a basis consistent with such intent. The Plan may be
amended in any respect deemed necessary (including retroactively) by the Board in
order to preserve exemption from (or compliance with) Section 409A. The preceding
shall not be construed as a guarantee of any particular tax effect for Plan
payments. A Participant is solely responsible and liable for the satisfaction of
all taxes and penalties that may be imposed on such person in connection with any
payments to such person under the Plan (including any taxes and penalties under
Section 409A), and the Company (or any affiliate or subsidiary) shall have no
obligation to indemnify or otherwise hold a Participant harmless from any or all of
such taxes or penalties.

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Exhibit 10.1

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of
August 25, 2010, is entered into by and among TARGA VERSADO HOLDINGS LP, a Delaware limited
partnership (“Versado Holdings LP”), TARGA RESOURCES PARTNERS LP, a Delaware limited
partnership (the “Partnership”), and TARGA NORTH TEXAS GP LLC, a Delaware limited liability
company (“TNT GP”). The parties to this Agreement are collectively referred to herein as
the “Parties.” Capitalized terms used but not defined herein shall have the meanings
assigned to such terms in the Purchase Agreement (as defined below).

RECITALS

     WHEREAS, Versado Holdings LP and the Partnership have heretofore entered into that certain
Purchase and Sale Agreement dated as of August 6, 2010 (the “Purchase Agreement”),
providing for the sale by Versado Holdings LP to the Partnership of: (i) 100% of the limited
partner interests in Targa Versado LP (“Versado LP Interests”) and (ii) 100% of the limited
liability company interests in Targa Versado GP LLC (“Versado GP Interests”); and

     WHEREAS, pursuant to the terms of the Purchase Agreement, Versado Holdings LP shall sell,
convey, transfer and assign the Versado LP Interests and the Versado GP Interests (collectively,
the “Purchased Interests”) to TNT GP, a subsidiary of the Partnership;

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

ARTICLE 1

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

RELATING TO THE PURCHASED INTERESTS

     Section 1.1 Contribution by Versado Holdings LP of the Versado LP Interests and the Versado GP
Interests to TNT GP. Versado Holdings LP hereby grants, contributes, bargains, conveys, assigns,
transfers, sets over and delivers to TNT GP, its successors and assigns, for its and their own use
forever, all right, title and interest in and to the Versado LP Interests and the Versado GP
Interests, and TNT GP hereby accepts the Versado LP Interests and the Versado GP Interests and
agrees to be the sole member of Versado GP and the limited partner of Versado LP.

ARTICLE 2

FURTHER ASSURANCES

     Section 2.1 From time to time after the date first above written, and without any further
consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds,
assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other
documents, and will do all such other acts and things, all in accordance with applicable law, as
may be necessary or appropriate (a) more fully to assure that the applicable Parties own all of the
properties, rights, titles, interests, estates, remedies, powers and privileges granted by this
Agreement, or which are intended to be so granted, or (b) more fully and effectively to vest in the
applicable Parties and their respective successors and assigns beneficial and record title to

 

 

the interests contributed and assigned by this Agreement or intended so to be and to more
fully and effectively carry out the purposes and intent of this Agreement.

ARTICLE 3

MISCELLANEOUS

     Section 3.1 Headings. All Article and Section headings in this Agreement are for convenience
only and shall not be deemed to control or affect the meaning or construction of any of the
provisions hereof.

     Section 3.2 Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns.

     Section 3.3 No Third Party Rights. The provisions of this Agreement are intended to bind the
Parties as to each other and are not intended to and do not create rights in any other person or
confer upon any other person any benefits, rights or remedies and no person is or is intended to be
a third-party beneficiary of any of the provisions of this Agreement.

     Section 3.4 Counterparts. This Agreement may be executed in any number of counterparts, all of
which together shall constitute one agreement binding on the Parties.

     Section 3.5 Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware applicable to contracts made and to be performed wholly
within such state without giving effect to conflict of law principles thereof.

     Section 3.6 Severability. If any of the provisions of this Agreement are held by any court of
competent jurisdiction to contravene, or to be invalid under, the laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid and an equitable adjustment shall be made and
necessary provision added so as to give effect to the intention of the Parties as expressed in this
Agreement at the time of execution of this Agreement.

     Section 3.7 Amendment or Modification. This Agreement may be amended or modified from time to
time only by the written agreement of all the Parties. Each such instrument shall be reduced to
writing.

     Section 3.8 Conflicts. Nothing in this Agreement shall be construed as an agreement to assign
any asset, or any interest therein, that is subject to any agreement that, by its terms or pursuant
to applicable law, is not capable of being sold, assigned, transferred, conveyed or delivered
without the consent or waiver of a third party or a governmental authority unless and until such
consent or waiver shall be given.

     Section 3.9 Integration. This Agreement and the instruments referenced herein supersede all
previous understandings or agreements among the Parties, whether oral or written, with respect to
their subject matter. This document and such instruments contain the entire understanding of the
Parties with respect to the subject matter hereof and thereof. No understanding, representation,
promise or agreement, whether oral or written, is intended to be or

 

 

shall be included in or form part of this Agreement unless it is contained in a written
amendment hereto executed by the Parties after the date of this Agreement.

     Section 3.10 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[Signature page follows]

 

 

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

	 	 	 	 	 
	 	TARGA VERSADO HOLDINGS LP

By: Targa Versado Holdings GP LLC,

        its general partner

 	 
	 	By:  	                    /s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	TARGA RESOURCES PARTNERS LP

By: Targa Resources GP LLC,

        its general partner

 	 
	 	By:  	                        /s/ Joe Bob Perkins
 	 
	 	 	Joe Bob Perkins 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	TARGA NORTH TEXAS GP LLC

 	 
	 	By:  	                        /s/ Joe Bob Perkins
 	 
	 	 	Joe Bob Perkins 	 
	 	 	President

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