Document:

exv10w4

 

EXHIBIT 10.4

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT (“Agreement”), dated as of
October 24, 2007, is entered into by and among TARGA RESOURCES PARTNERS LP, a Delaware limited
partnership (“MLP”), TARGA RESOURCES HOLDINGS LP, a Delaware limited partnership (“Holdings”),
TARGA TX LLC, a Delaware limited liability company (“Targa TX LLC”), TARGA TX PS LP, a Delaware
limited partnership (“Targa TX PS”), TARGA LA LLC, a Delaware limited liability company (“Targa LA
LLC”), TARGA LA PS LP, a Delaware limited partnership (“Targa LA PS”), 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 herein shall have the
meanings assigned to such terms in the Purchase Agreement (as defined below).

RECITALS

     WHEREAS, Holdings and MLP have heretofore entered into that certain Purchase and Sale
Agreement dated September 18, 2007, as amended, providing for the sale by Holdings (or its
affiliates) to MLP (or its affiliates) of the (i) limited partner interests in Targa Texas Field
Services LP, a Delaware limited partnership (“TTFS LP Interest”), (ii) the limited liability
company interests in Targa Resources Texas GP LLC, a Delaware limited liability company (“TRTGP
Interest”) and (iii) the limited liability company interests in Targa Louisiana Field Services LLC,
a Delaware limited liability company (“TLFS Interest”).

     WHEREAS, Holdings desires to effect an internal reorganization pursuant to which (i) Targa TX
PS would become the record and beneficial owner of the TTFS LP Interest and the TRTGP Interest and
(ii) Targa LA PS would become the record and beneficial owner of the TLFS Interest;

     WHEREAS, following such internal reorganization, (i) Targa TX PS will convey, transfer and
assign the TTFS LP Interest and the TRTGP Interest to TNT GP and (ii) Targa LA PS will convey,
transfer and assign the TLFS Interest to TNT GP, as more particularly provided herein;

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

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

2. Holdings and Targa TX LLC formed Targa TX PS under the terms of the Delaware Revised
Uniform Limited Partnership Act (“Delaware LP Act”), to which Holdings contributed $990 for
a 99% limited partnership interest in Targa TX PS and Targa TX LLC contributed $10 in
exchange for a 1% general partner interest in Targa TX PS.

3. Holdings formed Targa LA LLC under the terms of the Delaware LLC Act and contributed
$1,000 in exchange for all of the member interests in Targa LA LLC;

4. Holdings and Targa LA LLC formed Targa LA PS under the terms of the Delaware LP Act, to
which Holdings contributed $990 for a 99% limited partner interest in Targa LA PS and Targa
LA LLC contributed $10 in exchange for a 1% general partner interest in Targa LA PS.

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

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ARTICLE 1

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

RELATING TO TEXAS SYSTEMS

     Section 1.1 Contribution by Holdings of the TTFS LP Interest to Targa TX PS. Holdings hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa TX PS,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to the TTFS LP Interest and Targa TX PS hereby accepts the TTFS LP Interest, and agrees to be the
limited partner in Targa Texas Field Services LP.

     Section 1.2 Contribution by Holdings of the TRTGP Interest to Targa TX LLC. Holdings hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa TX LLC,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to the TRTGP Interest and Targa TX LLC hereby accepts the TRTGP Interest and agrees to be the
member of Targa Resources Texas GP LLC.

     Section 1.3 Contribution by Targa TX LLC of the TRTGP Interest to Targa TX PS. Targa TX LLC
hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to Targa
TX PS, its successors and assigns, for its and their own use forever, all right, title and interest
in and to the TRTGP Interest and Targa TX PS hereby accepts the TRTGP Interest and agrees to be the
member of Targa Resources Texas GP LLC.

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

RELATING TO LOUISIANA SYSTEMS

     Section 2.1 Contribution by Holdings of the TLFS Interest to Targa LA LLC and Targa LA PS.
Holdings hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers
to (i) Targa LA LLC, its successors and assigns, for its and their own use forever, all right,
title and interest in and to a 1% undivided interest in the TLFS Interest, and (ii) Targa LA PS,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to an undivided 99% interest in the TLFS Interest. Each of Targa LA LLC and Targa LA PS accept
such conveyance of interest in the TLFS Interest and agree to be a member of Targa Louisiana Field
Services LLC.

     Section 2.2 Contribution by Targa LA LLC of its undivided 1% interest in the TLFS Interest to
Targa LA PS. Targa LA LLC hereby grants, contributes, bargains, conveys, assigns, transfers, sets
over and delivers to Targa LA PS, its successors and assigns, for its and their own use forever,
all right, title and interest in and to its 1% undivided interest in the TLFS Interest. Targa LA
PS accepts such conveyance of interest and agrees to be the member of Targa Louisiana Field
Services LLC.

ARTICLE 3

ASSIGNMENT AND ASSUMPTION

OF PURCHASE AGREEMENT

     Section 3.1 Assignment of Purchase Agreement. MLP hereby assigns to TNT GP all of its rights
under the Purchase Agreement to purchase the TTFS LP Interest, the TRTGP Interest and the TLFS
Interest from Holdings or its designated affiliates, and TNT GP hereby assumes (without any release
or novation of MLP) all of such obligations of MLP under the Purchase Agreement.

     Section 3.2 Assignment of Obligations under the Purchase Agreement with regard to the sale of
the TTFS Interest and the TRTGP Interest. Holdings hereby assigns to Targa TX PS all of its
obligations under the Purchase Agreement to sell the TTFS LP Interest and TRTGP Interest to MLP or
its designated affiliates, and Targa TX PS hereby assumes (without any release or novation of
Holdings) all of such obligations of Holdings under the Purchase Agreement.

     Section 3.3 Assignment of Obligations under the Purchase Agreement with regard to the sale of
the TLFS Interest. Holdings hereby assigns to Targa LA PS all of its obligations under the
Purchase Agreement to sell the TLFS Interest to MLP or its designated affiliates, and Targa LA PS
hereby assumes (without any release or novation of Holdings) all such obligations of Holdings under
the Purchase Agreement.

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ARTICLE 4

FURTHER ASSURANCES

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

ARTICLE 5

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 1, Article 2 or Article 3 of this Agreement shall be operative or have any effect until
the Effective Time, at which time all the provisions of Article 1, Article 2 and Article 3 of this
Agreement shall be effective and operative without further action by any party hereto.

ARTICLE 6

MISCELLANEOUS

     Section 6.1 Headings; References; Interpretation. All Article and Section headings in this
Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, and
not to any particular provision of this Agreement. All references herein to Articles and Sections
shall, unless the context requires a different construction, be deemed to be references to the
Articles and Sections of this Agreement. All personal pronouns used in this Agreement, whether used
in the masculine, feminine or neuter gender, shall include all other genders, and the singular
shall include the plural and vice versa. The use herein of the word “including” following any
general statement, term or matter shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such word or to similar items or
matters, whether or not non-limiting language (such as “without limitation”, “but not limited to”,
or words of similar import) is used with reference thereto, but rather shall be deemed to refer to
all other items or matters that could reasonably fall within the broadest possible scope of such
general statement, term or matter.

     Section 6.2 Successors and Assigns. The Agreement shall be binding upon and inure to the
benefit of the Parties and their respective successors and assigns.

     Section 6.3 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 6.4 Counterparts. This Agreement may be executed in any number of counterparts, all of
which together shall constitute one agreement binding on the parties hereto.

     Section 6.5 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 6.6 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

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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 6.7 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 and shall be designated on its face as an Amendment to this Agreement.

     Section 6.8 Integration. This Agreement and the instruments referenced herein supersede all
previous understandings or agreements among the Parties, whether oral or written, with respect to
their subject matter. This document and such instruments contain the entire understanding of the
Parties with respect to the subject matter hereof and thereof. No understanding, representation,
promise or agreement, whether oral or written, is intended to be or shall be included in or form
part of this Agreement unless it is contained in a written amendment hereto executed by the parties
hereto after the date of this Agreement.

     Section 6.9 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 Pages Follow]

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

	 	 	 	 	 
	 	Targa Resources Partners LP

By: Targa Resources GP LLC,

        its general partner

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

	 	 	 	 	 
	 	Targa Resources Holdings LP

By: Targa Resources Holdings GP LLC,

        its general partner

 	 
	 	By:  	/s/ Rene R. Joyce
 	 
	 	 	Rene R. Joyce 	 
	 	 	Chief Executive Officer 	 
	 
	 	Targa TX LLC

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

	 	 	 	 	 
	 	Targa TX PS LP

By: Targa TX LLC,

        its general partner

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

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	 	Targa LA LLC

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

	 	 	 	 	 
	 	Targa LA PS LP

By: Targa LA LLC,

        its general partner

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

	 	 	 	 	 
	 	Targa North Texas GP LLC

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

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EXHIBIT 10.5

 

AMENDED AND RESTATED

OMNIBUS AGREEMENT

among

TARGA RESOURCES, INC.

TARGA RESOURCES GP LLC

and

TARGA RESOURCES PARTNERS LP

 

 

 

AMENDED AND RESTATED

OMNIBUS AGREEMENT

     THIS AMENDED AND RESTATED OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as
of, October 24, 2007, and is by and among Targa Resources, Inc., a Delaware corporation (“Targa”),
Targa Resources LLC, Targa Resources GP LLC, a Delaware limited liability company (the “General
Partner”) and Targa Resources Partners LP, a Delaware limited partnership (the “Partnership”). The
above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively
as the “Parties.”

R E C I T A L S:

     1.      The Parties entered into that certain Omnibus Agreement, dated and effective as of the
Closing Date (as defined herein) (the “Current Agreement”), to (i) evidence their agreement with
respect to the amount to be paid by the Partnership for certain general and administrative services
to be performed by Targa and its Affiliates as well as direct expenses, including operating
expenses, incurred by Targa and its Affiliates for and on behalf of the Partnership Group (as
defined herein) and (ii) evidence their agreement with respect to certain indemnification
obligations of the Parties.

     2.      The Parties desire to amend and restate the Current Agreement to, among other things,
reflect the purchase of the SAOU/LOU Business (as defined herein) by the Partnership from certain
Affiliates of Targa.

     In consideration of the agreements contained herein, and for other good and valuable
consideration, the Parties hereby amend and restate the Current Agreement as follows:

ARTICLE I

Definitions

          1.1      Definitions.

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

          “Affiliate” is defined in the Partnership Agreement.

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

          “Common Units” is defined in the Partnership Agreement.

          “Conflicts Committee” is defined in the Partnership Agreement.

          “Covered Environmental Losses” means all environmental losses, damages, liabilities,
claims, demands, causes of action, judgments, settlements, fines, penalties, costs and
expenses (including, without limitation, costs and expenses of any

 

 

Environmental
Activity, court costs and reasonable attorney’s and experts’ fees) of any and every kind or character,
by reason of or arising out of:

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

          (ii)      any event, omission or condition associated with ownership or operation of the
North Texas Assets relating to Environmental Activities (including, without limitation, the
exposure to or presence of Hazardous Substances on, under, about or migrating to or from the
North Texas Assets or the exposure to or release of Hazardous Substances arising out of
operation of the North Texas Assets) including, without limitation, (A) the cost and expense
of any Environmental Activities, (B) the cost or expense of the preparation and
implementation of any closure, remedial or corrective action or other plans required or
necessary under Environmental Laws and (C) the cost and expense for any environmental or
toxic tort pre-trial, trial or appellate legal or litigation support work; provided, in the
case of clauses (A) and (B), such cost and expense shall not include the costs associated
with project management and soil and ground water monitoring.

          “CPI Index” is defined in Section 2.1(c) of this Agreement.

          “Environmental Activities” shall mean any investigation, study, assessment, evaluation,
sampling, testing, monitoring, containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural attenuation, restoration,
bioremediation, response, repair, corrective measure, cleanup or abatement that is required
or necessary under any applicable Environmental Law, including, but not limited to,
institutional or engineering controls or participation in a governmental voluntary cleanup
program to conduct voluntary investigatory and remedial actions for the clean-up, removal or
remediation of Hazardous Substances that exceed actionable levels established pursuant to
Environmental Laws, or participation in a supplemental environmental project in partial or
whole mitigation of a fine or penalty.

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

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

          “G&A Expenses Limit” is defined in Section 2.1(c) of this Agreement.

          “General
Partner” is defined in the introduction to this Agreement.

          “Hazardous Substance” means (a) any substance that is designated, defined or classified
as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or
hazardous substance, or terms of similar meaning, or that is otherwise regulated under any
Environmental Law, including, without limitation, any hazardous substance as defined under
the Comprehensive Environmental Response, Compensation and Liability Act, as amended, (b)
oil as defined in the Oil Pollution Act of 1990, as amended, including oil, gasoline,
natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other refined
petroleum hydrocarbons and petroleum products and (c) radioactive materials, asbestos
containing materials or polychlorinated biphenyls.

          “Indemnified Party” means each Partnership Group Member and Targa in their capacities
as parties entitled to indemnification in accordance with Article III.

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

          “Limited Partner” is defined in the Partnership Agreement.

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

          “North Texas Assets” means the gathering and processing assets to be contributed to the
Partnership in connection with its initial public offering and as more completely described
in the Registration Statement and includes the pipelines, processing plants or related
equipment or assets, or portions thereof, conveyed, contributed or otherwise transferred or
intended to be conveyed, contributed or otherwise transferred to any member of the
Partnership Group, or owned by or necessary for the operation of the business, properties or
assets of any member of the Partnership Group, prior to or as of the Closing Date.

          “Partnership” is defined in the introduction to this Agreement.

          “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Targa Resources Partners LP, dated as of the Closing Date, as such agreement
is in effect on the Closing Date, to which reference is hereby made for all purposes of this
Agreement. No amendment or modification to the Partnership Agreement subsequent to the
Closing Date shall be given effect for the purposes of this

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Agreement unless such amendment
receives the approval required pursuant to Section 4.5 hereof.

          “Partnership Entities” means the General Partner and each member of the Partnership
Group.

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

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

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

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

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

          “Registration Statement” means the Registration Statement on Form S-1 (Registration No.
333-138747) filed with the Securities and Exchange Commission with respect to the proposed
initial public offering of Common Units by the Partnership.

          “Subsidiary” means, with respect to any Person, (a) a corporation of which more than
50% of the voting power of shares entitled (without regard to the occurrence of any
contingency) to vote in the election of directors or other governing body of such
corporation is owned, directly or indirectly, at the date of determination, by such Person,
by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership
(whether general or limited) in which such Person or a Subsidiary of such Person is, at the
date of determination, a general or limited partner of such partnership, but only if more
than 50% of the partnership interests of such partnership (considering all of the
partnership interests of the partnership as a single class) is owned, directly or
indirectly, at the date of determination, by such Person, by one or more Subsidiaries of
such Person, or a combination thereof, or (c) any other Person (other than a corporation or
a partnership) in which such Person, one or more Subsidiaries of such Person, or a
combination thereof, directly or indirectly, at the date of determination, has (i) at least
a majority ownership interest or (ii) the power to elect or direct the election of a
majority of the directors or other governing body of such Person.

          “Targa” is defined in the introduction to this Agreement.

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ARTICLE II

Reimbursement Obligations

     2.1      Reimbursement for Allocated General and Administrative Expenses; Limitations on
Reimbursement. (a) Targa hereby agrees to continue to provide the Partnership Group with certain
general and administrative services, such as legal, accounting, treasury, insurance, risk
management, health, safety and environmental, information technology, human resources, credit,
payroll, internal audit, taxes, engineering and marketing. These general and administrative
services shall be substantially identical in nature and quality to the services of such type
previously provided by Targa in connection with their management and operation of the North Texas
Assets prior to their acquisition by the Partnership. In the event that the Partnership Group
makes any acquisitions of assets or businesses from Targa or its Affiliates during the first three
years following the Closing Date, Targa will similarly provide general and administrative services
that are substantially identical in nature and quality to the services of such type previously
provided by Targa in connection with their management and operation of such assets or businesses
prior to their acquisition by the Partnership.

          (b)      Subject to the provisions of Section 2.1(c) below, the Partnership Group hereby agrees to
reimburse Targa for all expenses and expenditures Targa or its Affiliates incur or payments they
make on behalf of the Partnership Group for these general and administrative services.

          (c)      The amount for which Targa shall be entitled to reimbursement from the Partnership Group
pursuant to Section 2.1(b) for general and administrative expenses shall not exceed $5.0 million
annually for a period of three (3) years following the Closing Date (the “G&A Expenses Limit”).
Following the first anniversary of this Agreement, the G&A Expenses Limit shall be increased
annually over the next two years by the percentage increase in the Consumer Price Index — All Urban
Consumers, U.S. City Average, Not Seasonally Adjusted for the applicable year (the “CPI Index").
In making such adjustment, the G&A Expenses Limit shall be increased on the first anniversary of
this Agreement by the CPI Index for the prior year period based on the most recent information
available from the U.S. Department of Labor and similarly increased on the second anniversary of
this Agreement by the CPI Index for the prior year period. In the event that the Partnership Group
makes any acquisitions of assets or businesses or the business of the Partnership Group otherwise
expands during the first three years following the Closing Date, then the G&A Expenses Limit shall
be appropriately increased in order to account for adjustments in the nature and extent of the
general and administrative services by Targa to the Partnership Group, with any such increase in
the G&A Expenses Limit subject to the approval of the Conflicts Committee. From and after the date
first set forth above, the G&A Expenses Limit is increased by the actual amount of general and
administrative expenses allocated by Targa for the services provided to Targa Texas Field Services
LP and Targa Louisiana Field Services LLC (the “SAOU/LOU Business”), according to the allocation
methodology utilized by Targa. After the third anniversary of the Closing Date, the G&A Expenses
Limit will no longer apply and the General Partner will determine the amount of general and
administrative expenses that will be properly allocated to the Partnership in accordance with the
terms of the Partnership Agreement. The G&A Expenses Limit shall not apply to reimbursement for
direct expenses of the Partnership as provided in Section 2.2.

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     2.2      Reimbursement for Direct Expenses. (a) The Partnership Group hereby agrees to reimburse
Targa and its Affiliates for all direct expenses and expenditures they incur or payments they make
on behalf of the Partnership Group, including, but not limited to, (i) salaries of operational
personnel performing services on the Partnership Group’s behalf, the cost of employee benefits for
such personnel and general and administrative expense associated with such personnel, (ii) capital
expenditures, (iii) maintenance and repair costs, (iv) taxes and (v) direct expenses, including
operating expenses and certain allocated operating expenses, associated with the ownership and
operation of the North Texas Assets and the SAOU/LOU Business.

          (b)      The Partnership Group hereby agrees to reimburse Targa and its Affiliates for all expenses
and expenditures they incur or payments they make as a result of the Partnership becoming a
publicly traded entity, including costs associated with annual and quarterly reports, tax return
and Schedule K-1 preparation and distribution, independent auditor fees, registrar and transfer
agent fees, legal fees and independent director compensation.

          (c)      The obligation of the Partnership Group to reimburse Targa and its Subsidiaries pursuant
to this Section 2.2 shall not be subject to any monetary limitation, including the G&A Expenses
Limit contained in Section 2.1.

ARTICLE III

Indemnification

     3.1      Environmental Indemnification.

          (a)      Subject to the provisions of Section 3.3, Targa shall indemnify, defend and hold harmless
the Partnership Group and the Partnership Indemnitees from and against any Covered Environmental
Losses suffered or incurred by the Partnership Group or any Partnership Indemnitee relating to the
North Texas Assets for a period of three (3) years from the Closing Date but only to the extent
such violations, corrections, events or conditions occurred on or before the Closing Date;
provided, however, that such indemnity shall not apply to any Covered Environmental Losses reserved
on the books of the Partnership Group as of the Closing Date.

          (b)      The Partnership Group shall indemnify, defend and hold harmless Targa and its Affiliates,
other than any Partnership Group Member, from and against any Covered Environmental Losses suffered
or incurred by Targa and its Affiliates, other than any Partnership Group Member, relating to the
North Texas Assets occurring after the Closing Date except to the extent that the Partnership Group
is indemnified with respect to any of such Covered Environmental Losses under Section 3.1(a).

          (c)      The aggregate liability of Targa under Section 3.1(a) shall not exceed $10.0 million.

          (d)      No claims may be made against Targa for indemnification pursuant to Section 3.1(a) unless
the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group or
Partnership Indemnitees exceed $250,000, after such time Targa shall be liable for the full amount
of such claims, subject to the limitations of Section 3.1(c).

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

     3.2      Additional Indemnification

          (a)      Subject to the provisions of Section 3.3, Targa shall indemnify, defend and hold harmless
the Partnership Group and the Partnership Indemnitees from and against any Losses suffered or
incurred by the Partnership Group or any Partnership Indemnitee by reason of or arising out of:

               (i)      the failure of the Partnership Group to be the owner of valid and
indefeasible easement rights, leasehold and/or fee ownership interests in and to the
lands on which are located any North Texas Assets, and such failure renders the
Partnership Group liable or unable to use or operate the North Texas Assets in
substantially the same manner that the North Texas Assets were used and operated by
Targa and its Affiliates immediately prior to the Closing Date as described in the
Registration Statement;

               (ii) the failure of the Partnership Group to have on the Closing Date any
consent or governmental permit necessary to allow (i) the transfer of any of the
North Texas Assets to the Partnership Group on the Closing Date or (ii) any such
North Texas Assets to cross the roads, waterways, railroads and other areas upon
which any such North Texas Assets are located as of the Closing Date, and any such
failure specified in such clause (ii) renders the Partnership Group unable to use or
operate the North Texas Assets in substantially the same manner that the North Texas
Assets were owned and operated by Targa and its Affiliates immediately prior to the
Closing Date as described in the Registration Statement;

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

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

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

provided, further, that in the case of clauses (i), (ii), (iii) and (iv) above, such
indemnification shall not include indemnity for Losses reserved on the books of the Partnership
Group as of the Closing Date;

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provided, further, no claims may be made against Targa for indemnification pursuant to Section 3.2
unless the aggregate dollar amount of the Losses suffered or incurred by the Partnership Group or
Partnership Indemnitees exceed $250,000, after such time Targa shall be liable for the full amount
of such claims.

          (b)      In addition to and not in limitation of the indemnification provided under this Article
III, the Partnership Group shall indemnify, defend, and hold harmless Targa and its Affiliates,
other than any Partnership Group Member, from and against any Losses suffered or incurred by Targa
and its Affiliates, other than any Partnership Group Member, by reason of or arising out of events
and conditions associated with the operation of the North Texas Assets that occurs on or after the
Closing Date except to the extent that the Partnership Group is indemnified with respect to any
such Losses under Section 3.2(a).

     3.3 Indemnification Procedures.

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

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

          (c)      The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect
to all aspects of the defense of any claims covered by the indemnification set forth in this
Article III, including, without limitation, the prompt furnishing to the Indemnifying Party of any
correspondence or other notice relating thereto that the Indemnified Party may receive, permitting
the names of the Indemnified Party to be utilized in connection with such defense, the making
available to the Indemnifying Party of any files, records or other information of the Indemnified
Party that the Indemnifying Party considers relevant to such defense and the making available to
the Indemnifying Party of any employees of the Indemnified Party; provided, however, that in
connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact
thereof on the operations of the Indemnified Party and further agrees to maintain the
confidentiality of all files, records and other information furnished by the Indemnified Party
pursuant to this Section 3.3. In no event shall the obligation of the Indemnified Party to
cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be
construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in
connection with the defense of any claims covered by the indemnification set forth in this Article
III; provided, however, that the Indemnified Party may, at its own option,

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

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

ARTICLE IV

Miscellaneous

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

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

if to Targa:

Targa Resources, Inc.

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: General Counsel

if to the Partnership Entities:

Targa Resources Partners LP

1000 Louisiana, Suite 4300

Houston, Texas 77002

Attention: General Counsel

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

          4.4 Effect of Waiver or Consent. No waiver or consent, express or implied, by any Party to or
of any breach or default by any Person in the performance by such Person of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or
default in the performance by such Person of the same or any other obligations of such Person
hereunder.

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

          4.6 Assignment. No Party shall have the right to assign any of its rights or obligations under
this Agreement without the consent of the other Parties hereto.

          4.7 Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all signatory parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument.

          4.8 Severability. If any provision of this Agreement shall be held invalid or unenforceable by
a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain
in full force and effect.

          4.9 Further Assurances. In connection with this Agreement and all transactions contemplated by
this Agreement, each signatory party hereto agrees to execute and deliver such additional documents
and instruments and to perform such additional acts as may be necessary or appropriate to
effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.

          4.10 Rights of Limited Partners. The provisions of this Agreement are enforceable solely by the
Parties to this Agreement, and no Limited Partner of the Partnership shall have the right, separate
and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party
to this Agreement to comply with the terms of this Agreement.

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

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of,
the date first set forth above.

	 	 	 	 	 
	 

	 	TARGA RESOURCES, INC.	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:   /s/ Rene R. Joyce
	 	 
	 

	 	 	 	 
	 

	 	Rene R. Joyce

Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	TARGA RESOURCES LLC	 	 
	 
	 	 	 	 
	 

	 	By:   /s/ Rene R. Joyce	 	 
	 

	 	 	 	 
	 

	 	Rene R. Joyce

Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	TARGA RESOURCES GP LLC	 	 
	 
	 	 	 	 
	 

	 	By:   /s/ Rene R. Joyce	 	 
	 

	 	 	 	 
	 

	 	Rene R. Joyce

Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	TARGA RESOURCES PARTNERS LP	 	 
	 
	 	 	 	 
	 

	 	By: Targa Resources GP LLC	 	 
	 
	 	 	 	 
	 

	 	By:   /s/ Rene R. Joyce	 	 
	 

	 	 	 	 
	 

	 	Rene R. Joyce

Chief Executive Officer	 	 

[Signature Page to the Amended and Restated Omnibus
Agreement]

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