Document:

Exhibit 10.1

 

COMMON UNIT

 

PURCHASE AGREEMENT

 

DATED NOVEMBER 5, 2013

 

BY AND AMONG

 

NGL ENERGY PARTNERS LP

 

AND

 

THE PURCHASERS NAMED ON SCHEDULE A HERETO

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I DEFINITIONS
    	
3
    
	
 
    	
 
    
	
SECTION 1.01
    	
Definitions
    	
3
    
	
SECTION 1.02
    	
Accounting Procedures and Interpretation
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE II SALE AND PURCHASE
    	
7
    
	
 
    	
 
    
	
SECTION 2.01
    	
Sale and Purchase
    	
7
    
	
SECTION 2.02
    	
Funding Notice
    	
7
    
	
SECTION 2.03
    	
Closing
    	
7
    
	
SECTION 2.04
    	
Independent Nature of Purchasers’ Obligations and Rights
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE III REPRESENTATIONS AND   WARRANTIES OF THE PARTNERSHIP
    	
8
    
	
 
    	
 
    
	
SECTION 3.01
    	
Existence
    	
8
    
	
SECTION 3.02
    	
Capitalization
    	
9
    
	
SECTION 3.03
    	
Subsidiaries
    	
9
    
	
SECTION 3.04
    	
SEC Documents
    	
10
    
	
SECTION 3.05
    	
Independent Accountants
    	
10
    
	
SECTION 3.06
    	
Internal Accounting Controls
    	
11
    
	
SECTION 3.07
    	
Litigation
    	
11
    
	
SECTION 3.08
    	
No Material Adverse Change
    	
11
    
	
SECTION 3.09
    	
No Conflicts
    	
11
    
	
SECTION 3.10
    	
Authority
    	
12
    
	
SECTION 3.11
    	
Approvals
    	
12
    
	
SECTION 3.12
    	
Compliance with Law
    	
12
    
	
SECTION 3.13
    	
Valid Issuance
    	
12
    
	
SECTION 3.14
    	
No Preemptive Rights
    	
13
    
	
SECTION 3.15
    	
MLP Status
    	
13
    
	
SECTION 3.16
    	
Investment Company Status
    	
13
    
	
SECTION 3.17
    	
No Registration Required
    	
13
    
	
SECTION 3.18
    	
No Integration
    	
13
    
	
SECTION 3.19
    	
Certain Fees
    	
13
    
	
SECTION 3.20
    	
No Side Agreements
    	
13
    
	
SECTION 3.21
    	
Form S-3 Eligibility
    	
13
    
	
SECTION 3.22
    	
Absence of Price Manipulation
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE IV REPRESENTATIONS AND   WARRANTIES OF EACH PURCHASER
    	
14
    
	
 
    	
 
    
	
SECTION 4.01
    	
Valid Existence
    	
14
    
	
SECTION 4.02
    	
No Consents; Violations, Etc.
    	
14
    
	
SECTION 4.03
    	
Investment
    	
14
    
	
SECTION 4.04
    	
Nature of Purchaser
    	
14
    
	
SECTION 4.05
    	
Receipt of Information
    	
15
    
	
SECTION 4.06
    	
Restricted Securities
    	
15
    
	
SECTION 4.07
    	
Certain Fees
    	
15
    
	
SECTION 4.08
    	
Domestic Jurisdiction
    	
15
    

 

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SECTION 4.09
    	
Legend
    	
15
    
	
SECTION 4.10
    	
Reliance on Exemptions
    	
15
    
	
SECTION 4.11
    	
Authority
    	
16
    
	
SECTION 4.12
    	
No Side Agreements
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE V COVENANTS
    	
16
    
	
 
    	
 
    
	
SECTION 5.01
    	
Taking of Necessary Action
    	
16
    
	
SECTION 5.02
    	
Return of Proceeds
    	
16
    
	
SECTION 5.03
    	
Disclosure; Public Filings
    	
16
    
	
SECTION 5.04
    	
NYSE Listing Application
    	
17
    
	
SECTION 5.05
    	
Purchaser Lock-Up
    	
17
    
	
SECTION 5.06
    	
Subsequent Offerings
    	
17
    
	
SECTION 5.07
    	
Certain Special Allocations of Book and Taxable Income
    	
17
    
	
SECTION 5.08
    	
Partnership Fees
    	
18
    
	
SECTION 5.09
    	
Purchaser Fees
    	
18
    
	
SECTION 5.10
    	
Use of Proceeds
    	
18
    
	
 
    	
 
    	
 
    
	
ARTICLE VI CLOSING CONDITIONS
    	
18
    
	
 
    	
 
    
	
SECTION 6.01
    	
Conditions to the Closing
    	
18
    
	
SECTION 6.02
    	
Partnership Deliveries
    	
20
    
	
SECTION 6.03
    	
Purchaser Deliveries
    	
20
    
	
 
    	
 
    	
 
    
	
ARTICLE VII INDEMNIFICATION,   COSTS AND EXPENSES
    	
21
    
	
 
    	
 
    
	
SECTION 7.01
    	
Indemnification by the Partnership
    	
21
    
	
SECTION 7.02
    	
Indemnification by Purchasers
    	
21
    
	
SECTION 7.03
    	
Indemnification Procedure
    	
22
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII MISCELLANEOUS
    	
22
    
	
 
    	
 
    	
 
    
	
SECTION 8.01
    	
Interpretation
    	
22
    
	
SECTION 8.02
    	
Survival of Provisions
    	
23
    
	
SECTION 8.03
    	
No Waiver; Modifications in Writing
    	
23
    
	
SECTION 8.04
    	
Binding Effect; Assignment
    	
24
    
	
SECTION 8.05
    	
Communications
    	
24
    
	
SECTION 8.06
    	
Removal of Legend
    	
25
    
	
SECTION 8.07
    	
Entire Agreement
    	
25
    
	
SECTION 8.08
    	
Governing Law
    	
25
    
	
SECTION 8.09
    	
Execution in Counterparts
    	
25
    
	
SECTION 8.10
    	
Termination
    	
26
    
	
SECTION 8.11
    	
Recapitalization, Exchanges, Etc.
    	
26
    

 

Schedules and Exhibits:

 

	
Schedule A
    	
—
    	
List   of Purchasers and Commitment Amounts
    
	
Schedule 8.05
    	
—
    	
Notice   and Contact Information
    
	
Exhibit A
    	
—
    	
Form   of Registration Rights Agreement
    
	
Exhibit B
    	
—
    	
Form   of General Partner Officer’s Certificate
    
	
Exhibit C
    	
—
    	
Form   of Purchaser’s Officer’s Certificate
    
	
Exhibit D
    	
—
    	
Form   of Andrews Kurth LLP Legal Opinion
    
	
Exhibit E
    	
—
    	
Form   of Instruction and Representation Letter
    

 

ii

 

COMMON UNIT PURCHASE AGREEMENT

 

COMMON UNIT PURCHASE AGREEMENT dated November 5, 2013 (this “Agreement”), by and among NGL Energy Partners LP, a Delaware limited partnership (the “Partnership”), and each of the Purchasers listed in Schedule A attached hereto (each referred to herein as a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, the Partnership desires to issue and sell to the Purchasers, and each Purchaser desires to purchase from the Partnership, certain common units representing limited partnership interests in the Partnership (“Common Units”) in accordance with the provisions of this Agreement; and

 

WHEREAS, the Partnership and the Purchasers will enter into a registration rights agreement (the “Registration Rights Agreement”), substantially in the form attached hereto as Exhibit A, pursuant to which the Partnership will provide the Purchasers with certain registration rights with respect to the Common Units to be issued and sold to the Purchasers pursuant to this Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Partnership and each of the Purchasers, severally and not jointly, hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

SECTION 1.01                                      Definitions.  As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:

 

“8-K Filing” has the meaning given to such term in Section 5.03.

 

“Acquisition” means the acquisition by the Partnership from Gavilon Energy Intermediate, LLC, a Delaware limited liability company, of all of the equity interests of Gavilon, LLC, a Delaware limited liability company, pursuant to the Acquisition Agreement.

 

“Acquisition Agreement” means the Equity Interest Purchase Agreement dated as of November 5, 2013 by and among the Partnership, High Sierra Energy, LP, a Delaware limited partnership, Gavilon, LLC, a Delaware limited liability company, and Gavilon Energy Intermediate, LLC, a Delaware limited liability company.

 

“Action” against a Person means any lawsuit, action, proceeding, investigation or complaint before any Governmental Authority, mediator or arbitrator.

 

“Affiliate” means, with respect to a specified Person, any other Person, whether now in existence or hereafter created, directly or indirectly controlling, controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings, “controlling,” “controlled by,” and “under common control with”) means the power to direct or cause the direction of the management and policies

 

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of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

 

“Aggregate Purchase Price” means, with respect to each Purchaser, the dollar amount set forth opposite such Purchaser’s name under the heading “Purchase Price” on Schedule A hereto, as adjusted in accordance with Section 8.11, if applicable; provided, that in no event will the Aggregate Purchase Price applicable to such Purchaser be increased without the prior written consent of such Purchaser.

 

“Agreement” has the meaning given to such term in the introductory paragraph hereof.

 

“Anticipated Closing Date” has the meaning given to such term in Section 2.02.

 

“Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banks located in New York, New York are authorized or obligated to close.

 

“Closing” means the consummation of the purchase and sale of the Purchased Units hereunder.

 

“Closing Date” has the meaning given to such term in Section 2.02.

 

“Common Units” has the meaning given to such term in the recitals to this Agreement.

 

“Credit Agreement” shall mean the Credit Agreement, dated as of June 19, 2012, by and among the Operating Company, the other subsidiary borrowers party thereto, the Partnership, as guarantor, Deutsche Bank Securities, as administrative agent, and the other financial institutions party thereto, as amended to date.

 

“Delaware LLC Act” means the Delaware Limited Liability Company Act.

 

“Delaware LP Act” means the Delaware Revised Uniform Limited Partnership Act.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the SEC promulgated thereunder.

 

“Funding Notice” has the meaning given to such term in Section 2.02.

 

“GAAP” means generally accepted accounting principles in the United States of America in effect from time to time.

 

“General Partner” means NGL Energy Holdings LLC, a Delaware limited liability company and the general partner of the Partnership.

 

“Governmental Authority” shall include the country, state, county, city and political subdivisions in which any Person or such Person’s Property is located or which exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them and any monetary authorities that exercise valid jurisdiction over any such Person or such Person’s Property. Unless otherwise

 

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specified, all references to Governmental Authority herein shall mean a Governmental Authority having jurisdiction over, where applicable, any of the Partnership Entities or their Properties.

 

“Incentive Distribution Rights” has the meaning given to such term in the Partnership Agreement.

 

“Indemnified Party” has the meaning given to such term in Section 7.03.

 

“Indemnifying Party” has the meaning given to such term in Section 7.03.

 

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

 

“Law” means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.

 

“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes.

 

“LTIP” means the NGL Energy Partners LP 2011 Long-Term Incentive Plan.

 

“NYSE” means The New York Stock Exchange.

 

“Operating Company” means NGL Energy Operating LLC.

 

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

 

“Partnership” has the meaning given to such term in the introductory paragraph.

 

“Partnership Agreement” means the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of May 10, 2011, as amended to date and as it may be further amended from time to time.

 

“Partnership Bank Account” means the bank account designated as such by Partnership pursuant to the Funding Notice.

 

“Partnership Entities” means the Partnership and its Subsidiaries.

 

“Partnership Material Adverse Effect” means any material and adverse effect on (i) on the legality, validity or enforceability of any Transaction Document, (ii) the financial condition, business, assets or results of operations of the Partnership Entities, considered as a single enterprise or (iii) the ability of the Partnership perform its obligations under the Transaction Agreements in full on a timely basis. Notwithstanding the foregoing, a “Partnership Material Adverse Effect” shall not include any effect resulting or arising from: (a) any change in general economic conditions in the industries or markets in which any of the Partnership Entities operate that do not have a disproportionate effect on the Partnership Entities, considered as a single

 

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enterprise; (b) any engagement in hostilities pursuant to a declaration of war, or the occurrence of any military or terrorist attack; (c) changes in GAAP or other accounting principles, except to the extent such change has a disproportionate effect on the Partnership Entities, considered as a single enterprise; or (d) the consummation of the transactions contemplated hereby.

 

“Partnership Related Parties” has the meaning given to such term in Section 7.02.

 

“Party” or “Parties” means the Partnership and the Purchasers party to this Agreement, individually or collectively, as the case may be.

 

“Per Unit Capital Amount” has the meaning given to such term in the Partnership Agreement.

 

“Per Unit Price” means $29.59, as adjusted in accordance with Section 8.11, if applicable.

 

“Person” means any individual, corporation, company, voluntary association, partnership, joint venture, trust, limited liability company, unincorporated organization or government or any agency, instrumentality or political subdivision thereof, or any other form of entity.

 

“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.

 

“Purchased Units” means, with respect to each Purchaser, the number of Common Units equal to the quotient determined by dividing (i) the Aggregate Purchase Price set forth opposite such Purchaser’s name under the heading “Purchase Price” on Schedule A hereto by (ii) the Per Unit Price.

 

“Purchaser” and “Purchasers” have the meaning given to such term in the introductory paragraph of this Agreement.

 

“Purchaser Material Adverse Effect” means any material and adverse effect on the ability of a Purchaser to perform its obligations under the Transaction Agreements on a timely basis.

 

“Purchaser Related Parties” has the meaning given to such term in Section 7.01.

 

“Purchasers” has the meaning given to such term in the introductory paragraph of this Agreement.

 

“Registration Rights Agreement” has the meaning given to such term in the recitals to this Agreement.

 

“Representatives” of any Person means the Affiliates, control persons, officers, directors, employees, agents, counsel, investment bankers and other representatives of such Person.

 

“SEC” means the United States Securities and Exchange Commission.

 

“SEC Documents” has the meaning given to such term in Section 3.04.

 

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

 

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

 

“Subsidiary” means, as to any Person, any corporation or other entity of which at least a majority of the outstanding equity interest having by the terms thereof ordinary voting power to elect a majority of the board of directors of such corporation or other entity is at the time directly or indirectly owned or controlled by such Person or one or more of its Subsidiaries.

 

“Transaction Agreements” means, collectively, this Agreement, the Registration Rights Agreement and any amendments, supplements, continuations or modifications thereto.

 

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

 

“Unrealized Gain” has the meaning given to such term in the Partnership Agreement.

 

SECTION 1.02                                      Accounting Procedures and Interpretation.  Unless otherwise specified in this Agreement, all accounting terms used herein shall be interpreted, all determinations with respect to accounting matters under this Agreement shall be made, and all financial statements and certificates and reports as to financial matters required to be furnished to the Purchasers under this Agreement shall be prepared, in accordance with GAAP applied on a consistent basis during the periods involved (except, in the case of unaudited statements, as permitted by Form 10-Q promulgated by the SEC) and in compliance as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto.

 

ARTICLE II
 SALE AND PURCHASE

 

SECTION 2.01                                      Sale and Purchase.  Subject to the terms and conditions hereof, the Partnership will issue and sell to each Purchaser on the Closing Date, and each Purchaser hereby agrees, severally and not jointly, to purchase from the Partnership on the Closing Date, such Purchaser’s respective Purchased Units as set forth on Schedule A hereto.

 

SECTION 2.02                                      Funding Notice.  On or prior to the fifth Business Day prior to the date on which the Partnership reasonably anticipates the Closing to occur (the “Anticipated Closing Date”), the Partnership shall deliver a written notice (the “Funding Notice”) to each of the Purchasers (a) specifying the Anticipated Closing Date, (b) directing such Purchaser to pay the Aggregate Purchase Price for its Purchased Units by wire transfer(s) of immediately available funds to the Partnership Bank Account, prior to 10:00 a.m. Central Time on the Anticipated Closing Date and (c) specifying wiring instructions for wiring funds into the Partnership Bank Account.

 

SECTION 2.03                                      Closing.  Subject to the terms and conditions hereof, the Closing shall take place at the offices of Andrews Kurth LLP, 600 Travis, Suite 4200, Houston, Texas 77002 or such other location as mutually agreed to by the parties, and upon the later to occur of (i) the first Business Day on which the satisfaction or waiver of the conditions set forth in Sections

 

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6.01(a), 6.01(b) and 6.01(c) has occurred (other than those conditions that are by their terms to be satisfied at the Closing) or (ii) the closing of the Acquisition; provided, that if such later event is the closing of the Acquisition, then the Closing shall occur concurrently therewith (the date of such Closing, the “Closing Date”).

 

SECTION 2.04                                      Independent Nature of Purchasers’ Obligations and Rights.  The respective representation, warranties and obligations of each Purchaser under the Transaction Agreements are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the representation and warranties or the performance of the obligations of any other Purchaser under any Transaction Agreement. The failure or waiver of performance under any Transaction Agreement by any Purchaser, or on its behalf, does not excuse performance by any other Purchaser. Nothing contained in any Transaction Agreement, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Agreements. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the Registration Rights Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. The failure or waiver of performance by any Purchaser does not excuse performance by any other Purchaser.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP

 

The Partnership represents and warrants to the Purchasers that the representations and warranties set forth in this Article III are true and correct as of the date of this Agreement.  Subject to delivery by the Partnership of the Officer’s Certificate contemplated by Section 6.02(c), the Partnership represents and warrants to the Purchasers as of the Closing Date that (a) the following representations and warranties that are qualified by materiality or Partnership Material Adverse Effect are true and correct as of such date and (b) all other representations and warranties are true and correct in all material respects as of such date.

 

SECTION 3.01                                      Existence.  The General Partner and each of the Partnership Entities has been duly formed and is validly existing and in good standing under the laws of the State or other jurisdiction of its organization and has the requisite power and authority, and has all governmental licenses, authorizations, consents and approvals necessary, to own, lease, use or operate its Properties and carry on its business as now being conducted, except where the failure to obtain such licenses, authorizations, consents and approvals would not be reasonably likely to have a Partnership Material Adverse Effect.  The General Partner and each of the Partnership Entities is duly qualified or licensed and in good standing as a foreign corporation, limited partnership, limited liability company or unlimited liability company, as applicable, and is authorized to do business in each jurisdiction in which the ownership or leasing of its Properties or the character of its operations makes such qualification necessary, except where the failure to obtain such qualification, license, authorization or good standing would not be reasonably likely to have a Partnership Material Adverse Effect.

 

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SECTION 3.02                                      Capitalization.

 

(a)                                 The Purchased Units shall have those rights, preferences, privileges and restrictions governing the Common Units as reflected in the Partnership Agreement.

 

(b)                                 The General Partner is the sole general partner of the Partnership and owns a 0.1% general partner interest in the Partnership; such general partner interest has been duly authorized and validly issued in accordance with the Partnership Agreement; and the General Partner owns such general partner interest free and clear of any Liens, except for such Liens as may be imposed pursuant to the Credit Agreement.

 

(c)                                  As of November 4, 2013, the issued and outstanding limited partner interests of the Partnership consist of 66,650,735 Common Units, 5,919,346 Subordinated Units, and the Incentive Distribution Rights.  All of the outstanding limited partner interests have been duly authorized and validly issued in accordance with applicable Law and the Partnership Agreement and are fully paid (to the extent required under applicable Law and the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act).

 

(d)                                 Except as have been granted under the LTIP or the Partnership Agreement, no options, warrants, preemptive rights or other rights to purchase, agreements or other obligations to issue, or rights to convert any obligations into or exchange any securities for, securities or ownership interests in the Partnership are outstanding on the date of this Agreement and there are no outstanding obligations of the Partnership to repurchase, redeem or otherwise acquire ownership interests in the Partnership.

 

(e)                                  The Partnership’s currently outstanding Common Units are registered pursuant to Section 12(b) of the Exchange Act are quoted on the NYSE, and the Partnership has taken no action designed to terminate the registration of the Common Units under the Exchange Act nor has the Partnership received any notification that the SEC is contemplating terminating such registration. The Partnership has not, in the 12 months preceding the date hereof, received written notice from the NYSE to the effect that the Partnership is not in compliance with the listing or maintenance requirements of the NYSE.  The Partnership is, and has no reason to believe that it will not continue to be, in compliance in all material respects with the listing and maintenance requirements for continued trading of the Common Units on the NYSE.

 

SECTION 3.03                                      Subsidiaries.  All of the issued and outstanding equity interests of each of the Partnership’s Subsidiaries are owned, directly or indirectly, by the Partnership free and clear of any Liens (except for such restrictions as may exist under applicable Law and except for such Liens as may be imposed pursuant to the Credit Agreement), and all such ownership interests have been duly authorized, validly issued and are fully paid (to the extent required by applicable Law and the organizational documents of such Subsidiaries) and non-assessable (except as nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act and Sections 18-607 and 18-804 of the Delaware LLC Act, as applicable, or the organizational documents of such Subsidiaries).

 

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SECTION 3.04                                      SEC Documents.  The Partnership has filed with the SEC all reports, schedules and statements required to be filed by it under the Exchange Act on a timely basis since October 1, 2012 (all such documents, collectively, the “SEC Documents”). The SEC Documents, including any audited or unaudited financial statements and any notes thereto or schedules included therein, at the time filed, (i) complied as to form in all material respects with applicable requirements of the Exchange Act and the applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto, (ii) were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the SEC) and (iii) fairly present (subject in the case of unaudited statements to normal, recurring and year-end audit adjustments) in all material respects the consolidated financial position of the Partnership as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended.  A true and correct copy of the Partnership Agreement has been filed with the SEC as an exhibit to an SEC Document.

 

SECTION 3.05                                      Independent Accountants.

 

(a)                                 Grant Thornton LLP, who certified (i) the audited consolidated financial statements of the Partnership and subsidiaries as of March 31, 2013 and 2012 and for the years ended March 31, 2013 and March 31, 2012 and the six-month period ended March 31, 2011 and (ii) the audited consolidated financial statements of NGL Supply, Inc. for the six-month period ended September 30, 2010, are independent public accountants as required by the Securities Act, the rules and regulations of the SEC thereunder (the “Securities Act Regulations”) and the standards of the Public Company Accounting Oversight Board.

 

(b)                                 Grant Thornton LLP, who issued an unqualified audit report on the consolidated financial statements of High Sierra Energy GP, LLC and subsidiaries as of December 31, 2011 and for the three years in the period then ended, are independent public accountants as required by the Securities Act, the Securities Act Regulations and the standards of the American Institute of Certified Public Accountants (the “AICPA”).

 

(c)                                  Graham Shepherd, PC, who issued an unqualified audit report on the combined financial statements of Osterman Associated Companies contributed to the Partnership as of September 30, 2011 and 2010 and for each of the three years in the period ended September 30, 2011, are independent public accountants as required by the Securities Act, the Securities Act Regulations and the standards of the AICPA.

 

(d)                                 BDO USA, LLP, who issued an unqualified audit report on the combined financial statements of SemStream, L.P. Non-Residential Division as of December 31, 2010 and for each of the three years in the period ended December 31, 2010, are independent public accountants as required by the Securities Act, the Securities Act Regulations and the standards of the AICPA.  (v) EKS&H, LLP, who issued an unqualified audit report on the combined financial statements of Pecos Gathering and Marketing, L.L.C., Transwest Leasing, LLC, Black Hawk Gathering, L.L.C., Midstream Operations, LLC, Toro Operating Company, Inc. and Striker Oilfield Services, LLC as of September 30, 2012 and for the nine months ended September 30, 2012 and 2011, are independent public accountants as required by the Securities Act, the Securities Act Regulations and the standards of the AICPA.

 

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(e)                                  Roloff, Hnatek & Co., L.L.P., who issued an unqualified audit report on the financial statements of Third Coast Towing, LLC as of December 31, 2011 and for the two years then ended, are independent public accountants as required by the Securities Act, the Securities Act Regulations and the standards of the AICPA.

 

SECTION 3.06                                      Internal Accounting Controls.  The Partnership Entities maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Partnership is not aware of any failures of such internal accounting controls.

 

SECTION 3.07                                      Litigation.  There are no legal or governmental proceedings pending to which any Partnership Entity is a party or to which any of their Properties is subject that would reasonably be expected to have, individually or in the aggregate, a Partnership Material Adverse Effect or which challenges the validity of any of the Transaction Agreements or the right of the Partnership to enter into the Transaction Agreements or to consummate the transactions contemplated thereby and, to the knowledge of the Partnership, no such proceedings are threatened by Governmental Authorities or others.

 

SECTION 3.08                                      No Material Adverse Change.  Since March 31, 2013, except as disclosed in the SEC Documents, the Partnership Entities, considered as a single enterprise, have conducted their business in the ordinary course, consistent with past practice, and there has been no (i) Partnership Material Adverse Effect or any change, effect, event or development that individually or in the aggregate has had or could reasonably be expected to have a Partnership Material Adverse Effect, (ii) acquisition or disposition of any material asset by any of the Partnership Entities or any contract or arrangement therefor, otherwise than for fair value in the ordinary course of business, (iii) material change in the Partnership’s accounting principles, practices or methods or (iv) incurrence of material indebtedness.

 

SECTION 3.09                                      No Conflicts.  None of (i) the offering, issuance and sale by the Partnership of the Purchased Units and the application of the proceeds therefrom, (ii) the execution, delivery and performance of the Transaction Agreements by the Partnership and (iii) the consummation of the transactions contemplated hereby, (a) requires any consent, approval or notice under, or constitutes or will constitute a violation or breach of, the Partnership Agreement or the limited liability company agreement of the General Partner currently in effect, (b) constitutes or will constitute a violation or breach of, or a default (or an event that, with notice or lapse of time or both, would constitute such a default or give rise to any right of termination, cancellation or acceleration) under, any note, bond, mortgage, lease, loan or credit agreement or other instrument, obligation or agreement to which any of the Partnership Entities is a party or by which any of them or any of their respective Properties may be bound, (c) violates or will violate any provision of any Law or any order, judgment or decree of any court or Governmental Authority having jurisdiction over any of the Partnership Entities or their Properties or (d) results or will result in the creation or imposition of any Lien upon any Properties of any of the

 

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Partnership Entities, except in the cases of clauses (b), (c) and (d) where such violation, breach, default or Lien, would not, individually or in the aggregate, reasonably be expected to have a Partnership Material Adverse Effect.

 

SECTION 3.10                                      Authority.  The Partnership has all necessary limited partnership power and authority to execute, deliver and perform its obligations under the Transaction Agreements and to consummate the transactions contemplated thereby; the execution, delivery and performance by the Partnership of the Transaction Agreements and the consummation of the transactions contemplated thereby have been duly authorized by all necessary action on its part; and, assuming the due authorization, execution and delivery by the other parties thereto, the Transaction Agreements will constitute the legal, valid and binding obligations of such Partnership, enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar Laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith.

 

SECTION 3.11                                      Approvals.  Except as required by the SEC in connection with the Partnership’s obligations under the Registration Rights Agreement, no authorization, consent, approval, waiver, license, qualification or written exemption from, nor any filing, declaration, qualification or registration with, any Governmental Authority or any other Person is required in connection with the execution, delivery or performance by Partnership of the Transaction Agreements or the issuance and sale of the Purchased Units, except (i) as may be required under the state securities or “Blue Sky” Laws, or (ii) where the failure to receive such authorization, consent, approval, waiver, license, qualification or written exemption or to make such filing, declaration, qualification or registration would not, individually or in the aggregate, reasonably be expected to have a Partnership Material Adverse Effect.

 

SECTION 3.12                                      Compliance with Law.  None of the Partnership Entities is in violation of any Law applicable to such Partnership Entity, except as would not, individually or in the aggregate, have a Partnership Material Adverse Effect.  The Partnership Entities each possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not, individually or in the aggregate, have a Partnership Material Adverse Effect, and none of the Partnership Entities has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit, except where such potential revocation or modification would not, individually or in the aggregate, have a Partnership Material Adverse Effect.

 

SECTION 3.13                                      Valid Issuance.  The offer and sale of the Purchased Units and the limited partner interests represented thereby have been duly authorized by the Partnership pursuant to the Partnership Agreement and, when issued and delivered to the Purchasers against payment therefor in accordance with the terms of this Agreement, will be validly issued, fully paid (to the extent required by applicable Law and the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act) and will be free of any and all Liens and restrictions on transfer, other than restrictions on transfer under the Partnership Agreement and under applicable state and federal securities Laws.

 

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SECTION 3.14                                      No Preemptive Rights.  The holders of outstanding Common Units are not entitled to preemptive rights to subscribe for any of the Common Units to be issued and sold to the Purchasers pursuant to this Agreement.

 

SECTION 3.15                                      MLP Status.  The Partnership is properly treated as a partnership for United States federal income tax purposes and has, for each taxable year beginning after December 31, 2010 during which the Partnership was in existence, met the gross income requirements of Section 7704(c)(2) of the Internal Revenue Code.

 

SECTION 3.16                                      Investment Company Status.  The Partnership is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

SECTION 3.17                                      No Registration Required. Assuming the accuracy of the representations and warranties of the Purchasers contained in this Agreement, the sale and issuance of the Purchased Units pursuant to this Agreement is exempt from the registration requirements of the Securities Act, and neither the Partnership nor, to the Partnership’s knowledge, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.  The issuance and sale of the Purchased Units does not contravene the rules and regulations of the NYSE.

 

SECTION 3.18                                      No Integration.  Neither the Partnership nor any of its Affiliates has, directly or indirectly through any agent, made any offers or sales of any security of the Partnership or solicited any offers to buy any security that is or will be integrated with the sale of the Purchased Units in a manner that would require such registration under the Securities Act.

 

SECTION 3.19                                      Certain Fees.  Other than fees payable to UBS Securities LLC for its service as placement agent, no fees or commissions are or will be payable by the Partnership to brokers, finders or investment bankers with respect to the sale of any of the Purchased Units or the consummation of the transactions contemplated by this Agreement.

 

SECTION 3.20                                      No Side Agreements.  Other than the Transaction Agreements, there are no other agreements by, among or between the Partnership or its Affiliates, on the one hand, and any of the Purchasers or their Affiliates, on the other hand, with respect to the transactions contemplated hereby nor promises or inducements for future transactions between or among any of such parties.

 

SECTION 3.21                                      Form S-3 Eligibility.  The Partnership is eligible to register the resale of the Purchased Units by the Purchasers on a registration statement on Form S-3 under the Securities Act..

 

SECTION 3.22                                      Absence of Price Manipulation.  The Partnership has not taken and will not take any action that violates applicable law and is designed to, or would reasonably be expected to, cause or result in the stabilization or manipulation of the price of the Common Units to facilitate the sale or resale of the Purchased Units.

 

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ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF EACH PURCHASER

 

Each Purchaser, severally and not jointly, represents and warrants to the Partnership with respect to itself (and not with respect to any other Purchaser) as follows:

 

SECTION 4.01                                      Valid Existence.  Such Purchaser (i) is duly organized, validly existing and in good standing under the Laws of its respective jurisdiction of organization and (ii) has the requisite power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its Properties and carry on its business as its business is now being conducted, except where the failure to obtain such licenses, authorizations, consents and approvals would not reasonably be expected to have a Purchaser Material Adverse Effect.

 

SECTION 4.02                                      No Consents; Violations, Etc.  The execution, delivery and performance of the Transaction Agreements by such Purchaser and the consummation of the transactions contemplated thereby will not (a) require any consent, approval or notice under, or constitute a violation or breach of, the organizational documents of such Purchaser, (b) constitute a violation or breach of, or a default (or an event that, with notice or lapse of time or both, would constitute such a default or give rise to any right of termination, cancellation or acceleration) under, any note, bond, mortgage, lease, loan or credit agreement or other material instrument, obligation or agreement to which such Purchaser is a party or by which such Purchaser or any of its Properties may be bound, (c) violate any provision of any Law or any order, judgment or decree of any court or Governmental Authority having jurisdiction over such Purchaser or its Properties, except in the cases of clauses (b) and (c) where such violation, breach or default, would not, individually or in the aggregate, reasonably be expected to have a Purchaser Material Adverse Effect.

 

SECTION 4.03                                      Investment.  The Purchased Units are being acquired for such Purchaser’s own account, or the accounts of clients for whom such Purchaser exercises discretionary investment authority, not as a nominee or agent, and with no present intention of distributing the Purchased Units or any part thereof, and such Purchaser has no present intention of selling or granting any participation in or otherwise distributing the same, in any transaction in violation of the securities Laws of the United States of America or any state, without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of the Purchased Units under a registration statement under the Securities Act and applicable state securities laws or under an exemption from such registration available thereunder (including, without limitation, if available, Rule 144 promulgated thereunder). If such Purchaser should in the future decide to dispose of any of the Purchased Units, such Purchaser understands and agrees that it may do so only (i) in compliance with the Securities Act and applicable state securities law, as then in effect, or (ii) in the manner contemplated by any registration statement pursuant to which such securities are being offered.

 

SECTION 4.04                                      Nature of Purchaser.  Such Purchaser represents and warrants to, and covenants and agrees with, the Partnership that, (a) it is an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act and a “qualified institutional buyer” as defined in Rule 144A under the Securities Act, (b) by reason of its business and financial experience it has such knowledge, sophistication and experience in

 

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business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Units, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment and (c) it is acquiring the Purchased Units purchased by it only for its own account and not for the account of others, for investment purposes and not on behalf of any other account or Person or with a view to, or for offer or sale in connection with, any distribution thereof.  Such Purchaser is not an entity formed for the specific purpose of acquiring the Purchased Units.

 

SECTION 4.05                                      Receipt of Information.  Such Purchaser acknowledges that it (a) has access to the SEC Documents, (b) has been provided a reasonable opportunity to ask questions of and receive answers from Representatives of the Partnership regarding such matters and (c) has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to the acquisition of the Purchased Units.

 

SECTION 4.06                                      Restricted Securities.  Such Purchaser understands that the Purchased Units it is purchasing are characterized as “restricted securities” under the federal securities Laws inasmuch as they are being acquired from the Partnership in a transaction not involving a public offering and that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, such Purchaser represents that it is knowledgeable with respect to Rule 144 of the SEC promulgated under the Securities Act.

 

SECTION 4.07                                      Certain Fees.  No fees or commissions will be payable by such Purchaser to brokers, finders, or investment bankers with respect to the sale of any of the Purchased Units or the consummation of the transactions contemplated by this Agreement.

 

SECTION 4.08                                      Domestic Jurisdiction.  Each Purchaser is a resident of the jurisdiction specified in its address for notices set forth on Schedule A hereto.

 

SECTION 4.09                                      Legend.  It is understood that the certificates evidencing the Purchased Units will bear the following legend:

 

“These securities have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction. These securities may not be sold or offered for sale, pledged or hypothecated except pursuant to an effective registration statement under the Securities Act or pursuant to an exemption from registration thereunder, in each case in accordance with all applicable securities laws of the states or other jurisdictions, and in the case of a transaction exempt from registration, such securities may only be transferred if the transfer agent for such securities has received documentation satisfactory to it that such transaction does not require registration under the Securities Act.”

 

SECTION 4.10                                      Reliance on Exemptions.  Each Purchaser understands that the Purchased Units are being offered and sold to such Purchaser in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Partnership is relying upon the truth and accuracy of, and Purchaser’s compliance

 

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with, the representations, warranties, agreements, acknowledgments and understandings of Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of Purchaser to acquire the Purchased Units.

 

SECTION 4.11                                      Authority.  Such Purchaser has all necessary power and authority to execute, deliver and perform its obligations under the Transaction Agreements to which such Purchaser is a Party and to consummate the transactions contemplated thereby; the execution, delivery and performance by such Purchaser of the Transaction Agreements and the consummation of the transactions contemplated thereby, have been duly authorized by all necessary action on its part; and, assuming the due authorization, execution and delivery by the other parties thereto, the Transaction Agreements to which it is a party constitute the legal, valid and binding obligation of such Purchaser, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar Laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith.

 

SECTION 4.12                                      No Side Agreements.  Other than the Transaction Agreements, there are no other agreements by, among or between such Purchaser or any of its Affiliates, on the one hand, and the Partnership or any of its Affiliates, on the other hand, with respect to the transactions contemplated hereby.

 

ARTICLE V
 COVENANTS

 

SECTION 5.01                                      Taking of Necessary Action.  Each of the Parties hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions contemplated by this Agreement. Without limiting the foregoing, the Partnership and each Purchaser shall use its commercially reasonable efforts to make all filings and obtain all consents of Governmental Authorities that may be necessary or, in the reasonable opinion of the Purchasers or the Partnership, as the case may be, advisable for the consummation of the transactions contemplated by the Transaction Agreements.

 

SECTION 5.02                                      Return of Proceeds.  If the Acquisition is not consummated within two Business Days after the Anticipated Closing Date, or if any of the conditions set forth in Section 6.01 have not been satisfied or waived, and any Purchaser has paid its Aggregate Purchase Price into the Partnership Bank Account in advance of the Closing, then on or prior to the third Business Day after the Anticipated Closing Date (or if the Partnership receives a written request by any such Purchaser on or before 1:00 pm Central time on the Anticipated Closing Date and the Acquisition is not consummated by 3:00 pm Central time on the Anticipated Closing Date, then not later than the close of business on the Anticipated Closing Date), the Partnership shall return such Aggregate Purchase Price, without interest, to such Purchaser.

 

SECTION 5.03                                      Disclosure; Public Filings.  The Partnership may, without prior written consent or notice, (i) file the Transaction Agreements as exhibits to Exchange Act reports and (ii) disclose such information with respect to any Purchaser as required by applicable Law or the

 

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rules or regulations of the NYSE or other exchange on which securities of the Partnership are listed or traded. The Partnership shall, on or before the fourth Business Day following the date hereof, file one or more Current Reports on Form 8-K with the SEC (the “8-K Filing”) describing the terms of the transactions contemplated by the Transaction Agreements and including as exhibits to such 8-K Filing, the Transaction Agreements in the form required by the Exchange Act.

 

SECTION 5.04                                      NYSE Listing Application.  The Partnership shall, not later than immediately prior to the Closing, file a supplemental listing application with the NYSE to list the Purchased Units and will otherwise use its reasonable commercial efforts to list the Purchased Units on the NYSE and maintain such listing.

 

SECTION 5.05                                      Purchaser Lock-Up.  Without the prior written consent of the Partnership, each Purchaser agrees that from and after the Closing until the earlier to occur of (a) the end of the 90th day after the Closing Date or (b) the time when the shelf registration statement (registering resales of the Purchased Units) contemplated by the Registration Rights Agreement becomes effective, neither such Purchaser nor any of its Affiliates will offer, sell, pledge or otherwise transfer or dispose of any of its Purchased Units or enter into any transaction or device designed to do the same; provided, however, that each Purchaser may transfer its Purchased Units to an Affiliate of such Purchaser or to any other Purchaser or an Affiliate of such other Purchaser, provided that such Affiliate agrees to the restrictions in this Section 5.05.

 

SECTION 5.06                                      Subsequent Offerings.  Without the prior written consent of the holders of a majority of all the Common Units issued and sold to the Purchasers pursuant to this Agreement, during the period from and after the date of this Agreement until the end of the 45th day after the Closing Date, the Partnership shall not grant, issue or sell any Common Units or any securities convertible into or exchangeable or exercisable for Common Units, or take any other action that may result in the issuance of any of the foregoing; provided, however, that the Partnership may issue Common Units or any securities convertible or exchangeable into Common Units as payment of any part of the purchase price for businesses that are acquired by the Partnership or its Subsidiaries (provided that any recipient of such Common Units must agree in writing to be bound by the terms of this Section 5.06 for the remaining term of such 45-day period); provided, further that no such consent shall be required in respect of the issuance of Common Units pursuant to the LTIP or upon the exercise of options to purchase Common Units granted pursuant to the LTIP or with respect to the issuance of Common Units upon the vesting of phantom or restricted units granted pursuant to the LTIP.

 

SECTION 5.07                                      Certain Special Allocations of Book and Taxable Income.  To the extent that the Per Unit Price differs from the Per Unit Capital Amount as of the Closing Date for a then Outstanding Common Unit after taking into account the issuance of the Purchased Units, the General Partner intends to specially allocate Partnership items of book and taxable income, gain, loss or deduction to the Purchasers so that the Per Unit Capital Amount with respect to their Purchased Units are equal to the Per Unit Capital Amounts with respect to other Common Units (and thus to assure fungibility of all Common Units). Such special allocations will occur upon the earlier to occur of any taxable period of the Partnership ending upon, or after, (a) an event described in Section 5.5(d) of the Partnership Agreement or a sale of all or substantially all of the assets of the Partnership occurring after the date of the issuance of the Purchased Units, or (b) the

 

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transfer of the Purchased Units to a Person that is not an Affiliate of the Purchaser, in which case, such allocation shall be made only with respect to the Purchased Units so transferred. To the maximum extent permissible under the Partnership Agreement or under applicable law, including under the Treasury Regulations issued under Section 704(b) of the Internal Revenue Code, the special allocations resulting from clause (a) will be made through allocations of Unrealized Gain.

 

SECTION 5.08                                      Partnership Fees.  The Partnership agrees that it will indemnify and hold harmless each Purchaser from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Partnership in connection with the sale of the Purchased Units or the consummation of the transactions contemplated by this Agreement.

 

SECTION 5.09                                      Purchaser Fees.  Each Purchaser agrees, severally and not jointly, that it will indemnify and hold harmless the General Partner and the Partnership Entities from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by such Purchaser in connection with the purchase of the Purchased Units or the consummation of the transactions contemplated by this Agreement. Agreement.

 

SECTION 5.10                                      Use of Proceeds.  The Partnership will use the net proceeds from the sale of Common Units under this Agreement to pay for a portion of the purchase price for the Acquisition, to repay indebtedness incurred in connection therewith, or for other general partnership purposes.

 

ARTICLE VI
 CLOSING CONDITIONS

 

SECTION 6.01                                      Conditions to the Closing.

 

(a)                                 Mutual Conditions.  The respective obligation of each Party to consummate the purchase and issuance and sale of the Purchased Units shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by a particular Party on behalf of itself in writing, in whole or in part, to the extent permitted by applicable Law):

 

(i)                                     no Law shall have been enacted or promulgated, and no action shall have been taken, by any Governmental Authority of competent jurisdiction which temporarily, preliminarily or permanently restrains, precludes, enjoins or otherwise prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal;

 

(ii)                                  there shall not be pending any Action by any Governmental Authority seeking to restrain, preclude, enjoin or prohibit the transactions contemplated by this Agreement; and

 

(iii)                               the Purchased Units shall have been approved for listing on the NYSE, subject to notice of issuance.

 

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(b)                                 Each Purchaser’s Conditions.  The respective obligation of each Purchaser to consummate the purchase of its Purchased Units shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by a particular Purchaser only on behalf of itself in writing, in whole or in part):

 

(i)                                     the Partnership shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by the Partnership on or prior to the Closing Date;

 

(ii)                                  the representations and warranties of the Partnership contained in this Agreement that are qualified by materiality or Partnership Material Adverse Effect shall be true and correct when made and as of the Closing Date and all other representations and warranties of the Partnership shall be true and correct in all material respects when made and as of the Closing Date, in each case as though made at and as of the Closing Date (except that representations made as of a specific date shall be required to be true and correct as of such date only);

 

(iii)                               the NYSE shall have authorized, upon official notice of issuance, the listing of the Purchased Units and no notice of delisting from the NYSE shall have been received by the Partnership with respect to the Common Units;

 

(iv)                              the Partnership shall have (or shall have concurrently with the Closing) consummated the Acquisition on substantially the terms set forth in the Acquisition Agreement, with only such modifications or waivers as the General Partner reasonably determines do not materially adversely affect the Purchasers in their capacity as unitholders following the Closing; and

 

(v)                                 the Partnership shall have delivered, or caused to be delivered, to the Purchasers at the Closing, the Partnership’s closing deliveries described in Section 6.02.

 

(c)                                  The Partnership’s Conditions.  The obligation of the Partnership to consummate the sale of the Purchased Units to each of the Purchasers shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions with respect to each Purchaser individually and not the Purchasers jointly (any or all of which may be waived by the Partnership in writing, in whole or in part, to the extent permitted by applicable Law):

 

(i)                                     each Purchaser shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by that Purchaser on or prior to the Closing Date;

 

(ii)                                  the representations and warranties of each Purchaser contained in this Agreement that are qualified by materiality or Purchaser Material Adverse Effect shall be true and correct when made and as of the Closing Date and all other representations and warranties of such Purchaser shall be true and correct in all material respects when made and as of the Closing Date, in each case as though made at and as of the Closing Date (except that representations made as of a specific date shall be required to be true and correct as of such date only); and

 

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(iii)                               each Purchaser shall have delivered, or caused to be delivered, to the Partnership at the Closing, such Purchaser’s closing deliveries described in Section 6.03.

 

SECTION 6.02                                      Partnership Deliveries.  At the Closing, subject to the terms and conditions of this Agreement, the Partnership will deliver, or cause to be delivered, to each Purchaser:

 

(a)                                 evidence of issuance of a certificate evidencing the Purchased Units or the Purchased Units credited to book-entry accounts maintained by the transfer agent, as the case may be, bearing the legend or restrictive notation set forth in Section 4.09, and meeting the requirements of the Partnership Agreement, free and clear of any Liens, other than transfer restrictions under the Partnership Agreement and applicable federal and state securities laws;

 

(b)                                 a certificate of the Secretary of State of Delaware, dated a recent date, to the effect that each of the General Partner and the Partnership is in good standing;

 

(c)                                  an Officer’s Certificate substantially in the form attached to this Agreement as Exhibit B;

 

(d)                                 an opinion addressed to the Purchasers from Andrews Kurth LLP, special counsel to the Partnership dated the Closing Date, substantially similar in substance to the form of opinion attached to this Agreement as Exhibit D;

 

(e)                                  the Registration Rights Agreement in substantially the form attached to this Agreement as Exhibit A, which shall have been duly executed by the Partnership; and

 

(f)                                   a certificate of the Secretary or Assistant Secretary of the General Partner, on behalf of the Partnership, certifying as to (i) the certificate of formation of the General Partner, the limited liability company agreement of the General Partner, the certificate of limited partnership of the Partnership, and the Partnership Agreement, (ii) board resolutions authorizing the execution and delivery of the Transaction Agreements and the consummation of the transactions contemplated thereby and (iii) the incumbent officers authorized to execute the Transaction Agreements, setting forth the name and title and bearing the signatures of such officers.

 

(g)                                  a cross receipt, dated the Closing Date, executed by the Partnership confirming that the Partnership has received such Purchaser’s Aggregate Purchase Price.

 

SECTION 6.03                                      Purchaser Deliveries.  At or prior to the Closing, subject to the terms and conditions of this Agreement, each Purchaser will deliver, or cause to be delivered to the Partnership:

 

(a)                                 payment to the Partnership, by wire transfer(s) of immediately available funds to the Partnership Bank Account, of such Purchaser’s Aggregate Purchase Price (provided, however that such payment shall be made on the morning of the Closing Date and must be received in the Partnership Bank Account prior 10:00 a.m. Central Time on the Closing Date);

 

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(b)                                 the Registration Rights Agreement in substantially the form attached to this Agreement as Exhibit A, which shall have been duly executed by such Purchaser;

 

(c)                                  an officer’s certificate substantially in the form attached to this Agreement as Exhibit C;

 

(d)                                 a completed Internal Revenue Service Form W-9; and

 

(e)                                  a cross receipt, dated the Closing Date, executed by such Purchaser confirming that such Purchaser has received the Common Units being purchased by such Purchaser pursuant hereto.

 

ARTICLE VII
 INDEMNIFICATION, COSTS AND EXPENSES

 

SECTION 7.01                                      Indemnification by the Partnership.  The Partnership agrees to indemnify each Purchaser and its Representatives (collectively, “Purchaser Related Parties”) (a) from costs, losses, liabilities, damages, or expenses, and (b) hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Partnership contained herein, and in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them, provided that such claim for indemnification relating to a breach of the representations or warranties is made prior to the expiration of such representations or warranties to the extent applicable; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential (including lost profits) or punitive damages under this Section 7.01.

 

SECTION 7.02                                      Indemnification by Purchasers.  Each Purchaser agrees, severally and not jointly, to indemnify the Partnership, the General Partner and their respective Representatives (collectively, “Partnership Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation, or inquiries), demands and causes of action and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of such Purchaser contained herein; provided that such claim for indemnification relating to a breach of a representation or warranty is made prior to the expiration of such representation or warranty; and provided further, that no Partnership Related Party shall be entitled to recover special, consequential (including lost profits) or punitive damages; provided further, that absent fraud, bad faith, gross negligence or willful misconduct

 

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on the part of a Purchaser, in no event will such Purchaser be liable under this Section 7.02 for any amount in excess of its Aggregate Purchase Price.

 

SECTION 7.03                                      Indemnification Procedure.  Promptly after any Partnership Related Party or Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third party, which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such claim or the commencement of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party or (B) if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from those available to the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, involves no admission of wrongdoing or malfeasance by, and includes a complete release from liability of, the Indemnified Party.

 

ARTICLE VIII
 MISCELLANEOUS

 

SECTION 8.01                                      Interpretation.  Article, Section, Schedule, and Exhibit references are to this Agreement, unless otherwise specified. All references to instruments, documents,

 

22

 

contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever a party has an obligation under the Transaction Agreements, the expense of complying with such obligation shall be an expense of such party unless otherwise specified therein. Whenever any determination, consent or approval is to be made or given by a Purchaser under the Transaction Agreements, such action shall be in such Purchaser’s sole discretion, unless otherwise specified therein. If any provision in the Transaction Agreements is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable and the Transaction Agreements shall be construed and enforced as if such illegal, invalid, not binding or unenforceable provision had never comprised a part of the Transaction Agreements, and the remaining provisions shall remain in full force and effect. The Transaction Agreements have been reviewed and negotiated by sophisticated parties with access to legal counsel and shall not be construed against the drafter.

 

SECTION 8.02                                      Survival of Provisions.  The representations and warranties set forth in Sections 3.01, 3.02, 3.10, 3.13, 3.17, 3.19, 4.01, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10 and 4.11 of this Agreement shall survive the execution and delivery of this Agreement indefinitely, and the other representations and warranties set forth in this Agreement shall survive for a period of 12 months following the Closing Date regardless of any investigation made by or on behalf of the Partnership or any Purchaser. The covenants made in this Agreement or any other Transaction Agreement shall survive the Closing and remain operative and in full force and effect regardless of acceptance of any of the Purchased Units and payment therefor and repayment, conversion or repurchase thereof. All indemnification obligations of the Partnership and the Purchasers pursuant to this Agreement shall remain operative and in full force and effect unless such obligations are expressly terminated in a writing by the Parties, regardless of any purported general termination of this Agreement.

 

SECTION 8.03                                      No Waiver; Modifications in Writing.

 

(a)                                 Delay.  No failure or delay on the part of any Party in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any right, power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a Party at Law or in equity or otherwise.

 

(b)                                 Specific Waiver; Amendment.  Except as otherwise provided herein, no amendment, waiver, consent, modification or termination of any provision of this Agreement shall be effective, unless signed by each of Parties or each of the original signatories thereto affected by such amendment, waiver, consent, modification or termination. Any amendment, supplement or modification of or to any provision hereof, any waiver of any provision hereof and any consent to any departure by the Partnership from the terms of any provision hereof shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Partnership in any case shall entitle the Partnership to any other or further notice or demand in similar or other circumstances.

 

23

 

SECTION 8.04                                      Binding Effect; Assignment.

 

(a)                                 Binding Effect.  This Agreement shall be binding upon the Partnership, each Purchaser and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the Parties to this Agreement and as provided in Article VII, and their respective successors and permitted assigns.

 

(b)                                 Assignment of Rights.  All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such Purchaser without the consent of the Partnership by delivery of an agreement to be bound and a revised Schedule A. No portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the written consent of the Partnership (which consent shall not be unreasonably withheld by the Partnership).

 

SECTION 8.05                                      Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery, electronic mail or personal delivery to the following addresses:

 

(a)                                 If to any Purchaser:

 

To such Purchaser’s address listed on Schedule 8.05 hereof or such other address as such Purchaser shall have specified by written notice to the Partnership.

 

(b)                                 If to the Partnership:

 

6120 S. Yale Avenue, Suite 805

Tulsa, OK 74136

Attention: H. Michael Krimbill

Facsimile: 918-492-0990

Email: michael.krimbill@nglep.com

 

With a copy to (which shall not constitute notice):

 

Andrews Kurth LLP

600 Travis, Suite 4200

Houston, TX 77002

Attention: G. Michael O’Leary

Facsimile: 713-220-4285

Email: moleary@andrewskurth.com

 

or to such other address as the Partnership or such Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; at the time of transmittal, if sent via electronic mail; upon actual receipt if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt

 

24

 

acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery.

 

SECTION 8.06                                      Removal of Legend.  The Partnership, at its sole cost, shall remove the legend described in in Section 4.09 (or instruct its transfer agent to so remove such legend) from the certificates evidencing Common Units issued and sold to each Purchaser pursuant to this Agreement if (i) a registration statement under the Securities Act permitting the public resale of such Common Units has become effective under the Securities Act, (ii) such Common Units are sold or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Partnership), or (iii) such Common Units are eligible for sale under Rule 144, without the requirement for the Partnership to be in compliance with the current public information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and without volume or manner-of-sale restrictions.  Each Purchaser agrees to provide the Partnership, its counsel and/or the transfer agent with evidence reasonably requested by it in order to cause the removal of the legend described in in Section 4.09, including without limitation an Instruction and Representation Letter in substantially the form attached to this Agreement as Exhibit E (an “Instruction and Representation Letter”).  Any fees (with respect to the transfer agent, Partnership counsel or otherwise) associated with the issuance of any legal opinion required by the Partnership’s transfer agent or the removal of such legend shall be borne by the Partnership.  If a legend is no longer required pursuant to the foregoing, the Partnership will no later than three (3) Business Days following the delivery by a Purchaser to the Partnership or the transfer agent (with notice to the Partnership) of a legended certificate or instrument representing Common Units (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer) and an Instruction and Representation Letter, deliver or cause to be delivered to such Purchaser a certificate or instrument (as the case may be) representing such Common Units that is free from all restrictive legends.  Certificates for Common Units free from all restrictive legends may be transmitted by the transfer agent to the Purchasers by crediting the account of the Purchaser’s prime broker with DTC as directed by such Purchaser.

 

SECTION 8.07                                      Entire Agreement.  This Agreement and the other Transaction Agreements are intended by the Parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the Parties hereto and thereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein, with respect to the rights granted by the Partnership or a Purchaser set forth herein and therein. This Agreement and the other Transaction Agreements supersede all prior agreements and understandings between the Parties with respect to such subject matter. The Schedules and Exhibits referred to herein and attached hereto are incorporated herein by this reference, and unless the context expressly requires otherwise, are incorporated in the definition of “Agreement.”

 

SECTION 8.08                                      Governing Law.  This Agreement will be construed in accordance with and governed by the Laws of the State of New York.

 

SECTION 8.09                                      Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different Parties hereto in separate counterparts, including

 

25

 

facsimile or .pdf format counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

 

SECTION 8.10                                      Termination.

 

(a)                                 Notwithstanding anything herein to the contrary, this Agreement may be terminated at any time at or prior to the Closing by the mutual written consent of the Purchasers entitled to purchase a majority of the Purchased Units and the Partnership.

 

(b)                                 Notwithstanding anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing:

 

(i)                                     if a statute, rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental Authority of competent jurisdiction which permanently restrains, precludes, enjoins or otherwise prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal; or

 

(ii)                                  if the Closing shall not have occurred on or before March 31, 2014.

 

(c)                                  In the event of the termination of this Agreement as provided in Section 8.10(a) or Section 8.10(b), this Agreement shall forthwith become null and void.  In the event of such termination, there shall be no liability on the part of any party hereto, except with respect to the requirement to comply with any confidentiality agreement in favor of the Partnership; provided that nothing herein shall relieve any party from any liability or obligation with respect to any willful breach of this Agreement.

 

SECTION 8.11                                      Recapitalization, Exchanges, Etc.  The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of the Partnership or any successor or assign of the Partnership (whether by merger, consolidation, sale of assets or otherwise) that may be issued in respect of, in exchange for or in substitution of, the Purchased Units, and shall be appropriately adjusted for combinations, unit splits, recapitalizations and the like occurring after the date of this Agreement.

 

(Signature Page Follows)

 

26

 

IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date first above written.

 

	
 
    	
 
    	
NGL   ENERGY PARTNERS LP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
NGL   Energy Holdings LLC,
    
	
 
    	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   H. Michael Krimbill
    
	
 
    	
 
    	
Name:
    	
H.   Michael Krimbill
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    

 

Signature Page to

Common Unit Purchase Agreement

 

 

	
 
    	
 
    	
CLEARBRIDGE ENERGY MLP TOTAL RETURN FUND INC.
    
	
 
    	
 
    	
CLEARBRIDGE ENERGY MLP OPPORTUNITY FUND INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ClearBridge   Investments, LLC,
    
	
 
    	
 
    	
 
    	
as   the Discretionary Investment Adviser
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Terrence Murphy
    
	
 
    	
 
    	
Name:
    	
Terrence   Murphy
    
	
 
    	
 
    	
Title:
    	
CEO
    

 

Signature Page to

Common Unit Purchase Agreement

 

 

	
 
    	
 
    	
OPPENHEIMER   STEELPATH MLP ALPHA FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Watson
    
	
 
    	
 
    	
Name:
    	
Brian   Watson
    
	
 
    	
 
    	
Title:
    	
Portfolio   Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
OPPENHEIMER   STEELPATH MLP ALPHA PLUS FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Watson
    
	
 
    	
 
    	
Name:
    	
Brian   Watson
    
	
 
    	
 
    	
Title:
    	
Portfolio   Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
OPPENHEIMER   STEELPATH MLP INCOME FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Watson
    
	
 
    	
 
    	
Name:
    	
Brian   Watson
    
	
 
    	
 
    	
Title:
    	
Portfolio   Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
AIC/CORNERSTONE ADVISORS INCOME OPPORTUNITIES   FUND-STEELPATH-209780
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Brian Watson
    
	
 
    	
 
    	
Name:
    	
Brian   Watson
    
	
 
    	
 
    	
Title:
    	
Portfolio   Manager
    

 

Signature Page to

Common Unit Purchase Agreement

 

 

	
 
    	
OPPENHEIMER   STEELPATH MLP SELECT 40 FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brian Watson
    
	
 
    	
Name:   
    	
Brian   Watson
    
	
 
    	
Title:   
    	
Portfolio   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
OPPENHEIMER   STEELPATH MLP MASTER FUND
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brian Watson
    
	
 
    	
Name:   
    	
Brian   Watson
    
	
 
    	
Title:   
    	
Portfolio   Manager
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
AT   MLP FUND, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Paul McPheeters
    
	
 
    	
Name:   
    	
Paul   McPheeters
    
	
 
    	
Title:   
    	
Managing   Director
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
EAGLE   INCOME APPRECIATION PARTNERS, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Eagle   Income Appreciation GP, LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Eagle   Global Advisors, LLC,
    
	
 
    	
 
    	
its   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   P. David Chiaro
    
	
 
    	
Name:   
    	
P.   David Chiaro
    
	
 
    	
Title:   
    	
Partner
    
	
 
    	
 
    	
 
    
	
 
    	
EAGLE   INCOME APPRECIATION II, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Eagle   Income Appreciation GP, LLC,
    
	
 
    	
 
    	
its   General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Eagle   Global Advisors, LLC,
    
	
 
    	
 
    	
its   Managing Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   P. David Chiaro
    
	
 
    	
Name:   
    	
P.   David Chiaro
    
	
 
    	
Title:   
    	
Partner
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
SALIENT   MLP FUND, L.P.
    
	
 
    	
OHIO   POLICE AND FIRE PENSION FUND
    
	
 
    	
COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL   EMPLOYEES’ RETIREMENT SYSTEM
    
	
 
    	
SALIENT MLP & ENERGY INFRASTRUCTURE FUND
    
	
 
    	
SALIENT MIDSTREAM & MLP FUND
    
	
 
    	
SALIENT MLP & ENERGY INFRASTRUCTURE FUND   II
    
	
 
    	
SALIENT MLP TOTAL RETURN FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Salient Capital Advisors LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Gregory A. Reid
    
	
 
    	
Name:   
    	
Gregory   A. Reid
    
	
 
    	
Title:   
    	
Managing   Director
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
HARVEST   MLP INCOME FUND LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Anthony Merhige
    
	
 
    	
Name:   
    	
Anthony   Merhige
    
	
 
    	
Title:   
    	
Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HARVEST   MLP INCOME FUND III LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Anthony Merhige
    
	
 
    	
Name:   
    	
Anthony   Merhige
    
	
 
    	
Title:   
    	
Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HARVEST   ENERGY FUND LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Anthony Merhige
    
	
 
    	
Name:   
    	
Anthony   Merhige
    
	
 
    	
Title:   
    	
Officer
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
THE   CUSHING MLP TOTAL RETURN FUND
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Cushing   MLP Asset Management, LP, its investment adviser
    
	
 
    	
By:
    	
Swank   Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jerry V. Swank
    
	
 
    	
Name:   
    	
Jerry   V. Swank
    
	
 
    	
Title:   
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
THE   CUSHING MLP PREMIER FUND
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Cushing   MLP Asset Management, LP, its investment adviser
    
	
 
    	
By:
    	
Swank   Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jerry V. Swank
    
	
 
    	
Name:   
    	
Jerry   V. Swank
    
	
 
    	
Title:   
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
CUSHING   SCS MLP FUND, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Cushing   MLP Asset Management, LP, its general partner
    
	
 
    	
By:
    	
Swank   Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jerry V. Swank
    
	
 
    	
Name:   
    	
Jerry   V. Swank
    
	
 
    	
Title:   
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
TEACHER’S   RETIREMENT SYSTEM OF OKLAHOMA
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Cushing   MLP Asset Management, LP, its investment adviser
    
	
 
    	
By:
    	
Swank   Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jerry V. Swank
    
	
 
    	
Name:   
    	
Jerry   V. Swank
    
	
 
    	
Title:   
    	
Managing   Member
    
	
 
    	
 
    	
 
    
	
 
    	
CITY OF NEW HAVEN CITY EMPLOYEES RETIREMENT FUND
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Cushing   MLP Asset Management, LP, its investment adviser
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
By:
    	
Swank   Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Jerry V. Swank
    
	
 
    	
Name:   
    	
Jerry   V. Swank
    
	
 
    	
Title:   
    	
Managing   Member
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
COHEN &   STEERS INFRASTRUCTURE FUND, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Benjamin Morton
    
	
 
    	
Name:   
    	
Benjamin   Morton
    
	
 
    	
Title:   
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COHEN & STEERS MLP INCOME AND ENERGY   OPPORTUNITY FUND, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Benjamin Morton
    
	
 
    	
Name:   
    	
Benjamin   Morton
    
	
 
    	
Title:   
    	
Vice   President
    

 

Signature Page to
 Common Unit Purchase Agreement

 

 

	
 
    	
THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mary R. Linehan
    
	
 
    	
Name:   
    	
Mary   R. Linehan
    
	
 
    	
Title:   
    	
Managing   Director
    

 

Signature Page to
 Common Unit Purchase AgreementExhibit 4(c)

 

CBS EXCESS 401(K) PLAN
 PART B — AMENDMENT AND RESTATEMENT AS OF JANUARY 1, 2009

 

Section 1.  Establishment and Purpose of the Plan.

 

1.1                               Establishment.  The Viacom Excess 401(k) Plan was adopted as of April 1, 1984 as an unfunded plan of voluntarily deferred compensation for the benefit of Participants.  As of December 31, 2005, it was amended and restated and renamed the CBS Excess 401(k) Plan.

 

1.2                               2009 Amendment and Restatement.  The Plan is hereby again amended and restated effective as of January 1, 2009 by the adoption of Part B of the Plan, as set forth herein.  Part A of the Plan, consisting of the original Plan adopted April 1, 1984 and the amendments made prior to October 3, 2004, applies to compensation that was Deferred prior to January 1, 2005 in accordance with the terms of those documents in effect from time to time prior to October 3, 2004.  The provisions of this Part B shall apply to compensation that is Deferred on or after January 1, 2005.  This Part B of the Plan is intended to meet all of the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), so that Participants will be eligible to defer the receipt of, and the liability for the federal income tax with respect to, certain items of compensation from one year to a later year in accordance with the provisions of applicable law and the provisions of the Plan.  With respect to compensation that was Deferred during the 2005, 2006, 2007 or 2008 calendar year, the Plan shall be administered in accordance with a reasonable, good faith interpretation of Code Section 409A, and such interpretation shall govern the rights of a Participant with respect to that period of time.

 

1.3                               Reporting Employees.  Any Eligible Employee who is identified by the Company on or after August 28, 2002 as a reporting person for purposes of Section 16 of the Securities Exchange Act of 1934 (“Reporting Employee”) or any employee of an Employer who is eligible to participate in the Plan and whose securities may be attributable to a Reporting Employee for purposes of Section 16 of the Securities Exchange Act of 1934 shall no longer be eligible to participate in this Plan, and shall instead be eligible to participate in the CBS Excess 401(k) Plan for Designated Senior Executives (the “Executive Excess Plan”), effective as of the date on which he becomes a Reporting Employee (or the date his securities are attributable to a Reporting Employee).  Any deferrals made under the Plan by any Reporting Employee who was a participant in the Plan on August 28, 2002 and by any Reporting Employee (or any other Eligible Employee whose securities may be attributable to a Reporting Employee) prior to the date he becomes a Reporting Employee (or the date his securities are attributable to a Reporting Employee) shall be transferred to the Executive Excess Plan as of December 1, 2005 or, if later, as of the date on which he becomes a Reporting Employee (or the date his securities are attributable to a Reporting Employee).  Except for amounts credited to a Post-2004 Subaccount, any elections and deferrals made by a Reporting Employee (or an employee whose securities may be attributable to a Reporting Employee) prior to the date his account is transferred to the Executive Excess Plan shall remain in full force and effect in this Plan.

 

1.4                               Purpose.  The purpose of this Plan is to provide means by which a select group of Eligible Employees may, in certain circumstances, elect to defer receipt of a portion of their Compensation.  The Plan also provides that the Company will, in certain instances, credit the Account of a Participant with an Employer Match.

 

 

Section 2.  Definitions.

 

The following words and phrases as used in this Plan have the following meanings:

 

2.1                               The term “Account” shall mean a Participant’s individual account, as described in Section 6.1 of the Plan.

 

2.2                               The term “Annual Payments” is defined in Section 7.1(b)(i).

 

2.3                               The term “Board of Directors” means the Board of Directors of the Company.

 

2.4                               The term “Bonus” means any cash bonus paid under the STIP and any other annual cash bonus plan sponsored by an Employer which, in the discretion of the Committee, is comparable to the STIP.

 

2.5                               The term “CBS 401(k) Plan” means the CBS 401(k) Plan (formerly known as the Viacom 401(k) Plan), originally effective as of September 1, 2001, and as amended from time to time thereafter (or any successor plan).

 

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

 

2.7                               The term “Committee” means the CBS Retirement Committee appointed by the Board of Directors.  The Committee may act on its own behalf or through the actions of its duly authorized delegate.

 

2.8                               The term “Company” means CBS Corporation.

 

2.9                               The term “Compensation” means an Eligible Employee’s base pay for services rendered to an Employer paid during such Employer’s payroll period, including all pre-tax elective contributions made on behalf of an Eligible Employee either to a “qualified cash or deferred arrangement” (as defined under Code Section 401(k) and applicable regulations), a “cafeteria plan” (as defined under Code Section 125 and applicable regulations), or a “qualified transportation fringe” (as defined under Code Section 132(f) and the applicable regulations) maintained by an Employer, plus all overtime pay, commissions, hazard pay and shift differential pay, but excluding (i) deferred compensation (ii) additional compensation of every other kind, including cash bonuses under the Company’s Long Term Performance Plan, and (iii) any Bonus.  Compensation shall include salary or wages that are characterized by Paramount Pictures Corporation as “Idle Day earnings” and are paid to an Eligible Employee who is an Employee of Paramount Pictures Corporation who is characterized as a “Production Auditor.”  “Compensation” shall be determined without taking into account the limitations imposed by Code Section 401(a)(17).

 

2.10                        The term “Deferral Election” is defined in Section 3.2(a).

 

2.11                        The term “Deferred” means that an amount is considered to be deferred within the meaning of Treasury Regulations sections 1.409A-6(a)(2) and 1.409A-6(a)(3).

 

2.12                        The term “Disability” or “Disabled” means that a Participant (i) has been determined to be disabled by the Social Security Administration, or (ii) is receiving benefits

 

2

 

under the provisions of the long-term disability plan covering such Participant that is sponsored by or participated in by the Participant’s Employer.

 

2.13                        The term “Election Agreement” is defined in Section 3.2(c).

 

2.14                        The term “Election Filing Date” means the date not later than the December 31 immediately preceding the first day of the applicable calendar year for which a particular Deferral Election is made.

 

2.15                        The term “Eligible Employee” means an employee of an Employer (i) for whom the sum of (a) the rate of annual base salary for a particular year and (b) actual commissions received for the prior year, equals or is greater than the annual compensation limit in effect under Code Section 401(a)(17) (as adjusted from time to time by the Committee); and (ii) is designated by the Committee as an employee who is eligible to participate in the Plan; and (iii) is notified in writing (including by email or other electronic means) by the Committee that he is eligible to participate in the Plan.  If an employee becomes an Eligible Employee with respect to any calendar year, such employee shall remain an Eligible Employee for all future calendar years; provided, however, that the Committee may terminate such employee’s eligibility for the Plan with respect to a calendar year if his annual base salary as of January l of such calendar year is anticipated to be less than the amount in clause (i) in effect for the calendar year in which such employee initially became an Eligible Employee.  In no event shall any Reporting Employee be considered an Eligible Employee under the Plan on or after August 28, 2002.

 

2.16                        The term “Employer” means the Company and any affiliate or subsidiary that adopts the Plan on behalf of its Eligible Employees, except as provided in Section 2.30.

 

2.17                        The term “Employer Match” means the amounts credited to a Participant’s Account with respect to the Participant’s Excess Salary Reduction Contributions, calculated using the rate of matching contributions under the CBS 401(k) Plan in effect for the period to which such Plan contributions relate.

 

2.18                        The term “Executive Excess Plan” is defined in Section 1.3.

 

2.19                        The term “Excess Salary Reduction Contributions” means the portion of a Participant’s Compensation that is earned during a calendar year after such Participant has reached any Limitation and that he elects to defer under the terms of this Plan.

 

2.20                        The term “Investment Options” means the investment funds available to participants in the CBS 401(k) Plan, excluding the Self-Directed Brokerage Account.

 

2.21                        The term “Joint Payment Option” means the time and form of payment options available for the payment of an Account as described in Section 7.1(b).

 

2.22                        The term “Joint Payment Option Election” is defined in Section 7.1(b)(ii).

 

2.23                        The term “Limitation” means the limitation on (i) contributions to defined contribution plans under Code Section 415(c), (ii) compensation taken into account under Code Section 401(a)(17), or (iii) elective deferrals under Code Section 401(k)(3) and Code Section 402(g).

 

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2.24                        The term “Participant” means an Eligible Employee who elects to have Excess Salary Reduction Contributions made to the Plan.

 

2.25                        The term “Payment Election” is defined in Section 7.1(a).

 

2.26                        The term “Plan” means the CBS Excess 401(k) Plan, as set forth herein, and as amended from time to time.  Part A of the Plan is attached hereto and shall apply to Compensation which was Deferred prior to January 1, 2005.  Part B of the Plan is set forth herein and shall apply to Compensation which is Deferred on or after January 1, 2005.  Certain provisions of this Part B apply as of certain earlier effective dates as specified herein.

 

2.27                        The term “Post-2004 Subaccount” is defined in Section 6.1.

 

2.28                        The term “Pre-2005 Subaccount” is defined in Section 6.1.

 

2.29                        The term “Reporting Employee” is defined in Section 1.3.

 

2.30                        The term “Separation from Service” means the condition that exists when an Employee who is a Participant in the Plan and the Employer reasonably anticipate that no further services will be performed after a certain date or that the level of bona fide services that the Employee will perform after such date (whether as an Employee or an independent contractor) would permanently decrease to no more than 20% of the average level of bona fide services performed (whether as an Employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the Employer if the Employee has been providing services to the Employer for less than 36 months).  For purposes of this Section 2.30, for periods during which an Employee is on a paid bona fide leave of absence and has not otherwise experienced a Separation from Service, the Employee is treated as providing bona fide services at the level equal to the level of services that the Employee would have been required to perform to receive the compensation paid with respect to such leave of absence.  Periods during which an Employee is on an unpaid bona fide leave of absence and has not otherwise experienced a Separation from Service are disregarded for purposes of this Section 2.30 (including for purposes of determining the applicable 36-month (or shorter) period).  For purposes of this Section 2.30, and notwithstanding Section 2.16, the “Employer” shall be considered to include all members of the controlled group of corporations, trades or businesses which includes the Company; provided, however, that in applying Code Section 414(b), the phrase “at least 50 percent” shall be substituted for “at least 80 percent”; and in applying Code Section 414(c), the phrase “at least 50 percent” shall be used instead of the phrase “at least 80 percent.”  Separation from Service shall be determined on the basis of the modifications described in Treasury Regulation Section 1.409A-1(h)(3) (or any successor regulation)) as defined in Code Section 409A and the regulations or other guidance issued thereunder.

 

2.31                        The term “STIP” means the CBS Corporation Short-Term Incentive Plan, as may be amended from time to time.

 

2.32                        The term “Unforeseeable Emergency” means an event that results in severe financial hardship to a Participant resulting from (a) an illness or accident of the Participant or his or her spouse, dependent (as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)), or beneficiary, (b) loss of the Participant’s property due to casualty, or (c) other similar extraordinary circumstances arising due to results beyond the

 

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control of the Participant.  This Section 2.32 shall be interpreted in a manner consistent with Code Section 409A and applicable provisions of the Treasury Regulations.

 

Section 3.  Participation.

 

3.1                               Designation of Eligible Employees.  All employees who were Eligible Employees immediately prior to January 1, 2009 will remain Eligible Employees, subject to Section 2.15.  Beginning January 1, 2009, each month the Committee will designate in its sole discretion those additional employees who satisfy the terms of Section 2.15 as eligible to participate in the Plan.

 

3.2                               Election to Participate.  (a)  To participate in the Plan for a calendar year, an Eligible Employee must make an annual election (a “Deferral Election”) to defer receipt of a specified portion of his or her Compensation for services rendered during such calendar year (“Excess Salary Reduction Contributions”) in accordance with this Section 3.  Subject to Section 3.2(b), such Deferral Election must be made not later than the Election Filing Date and shall be effective as of the Election Filing Date.  An Eligible Employee’s entitlement to make Excess Salary Reduction Contributions shall cease with respect to the calendar year following the calendar year in which he or she ceases to be an Eligible Employee.

 

(b)                                 Notwithstanding the foregoing, an employee who first becomes an Eligible Employee during the course of a calendar year beginning on or after January 1, 2005 shall make a Deferral Election within 30 days following the date the employee first becomes an Eligible Employee, provided that such employee has not already become eligible to participate in any other account balance plan of the Employer (as modified by Section 2.30) that is required to be aggregated with this Plan under Code Section 409A.  Such Deferral Election shall be effective on the date made and shall be effective with regard to Compensation earned during the calendar year following the filing of the Deferral Election with the Committee, as determined pursuant to the pro-ration method permitted under Code Section 409A.

 

(c)                                  All Deferral Elections shall be made on a written or electronic form acceptable to the Committee (an “Election Agreement”) filed with the Committee and shall specify the percentage of a Participant’s Compensation that is to be deferred under the Plan during the applicable calendar year.

 

(d)                                 All Deferral Elections relating to calendar years beginning on or after January 1, 2005, once effective, shall be irrevocable for that calendar year.  All Participants are required to make a Deferral Election for each calendar year.  If an Eligible Employee fails to make a Deferral Election for a given calendar year, the Eligible Employee shall not be entitled to participate in the Plan during that calendar year.  Such Eligible Employee may resume participation in the Plan by completing and filing with the Committee a new Deferral Election by the Election Filing Date for the succeeding calendar year(s).

 

3.3                               Amount of Elections.  Each Deferral Election filed by an Eligible Employee must specify the amount of Excess Salary Reduction Contributions in a whole percentage between 1% and 15% of the Participant’s Compensation.

 

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Section 4.  Employer Match.

 

An Employer Match calculated using the same performance based formula that is used to credit matching contributions under the CBS 401(k) Plan will be credited each payroll period to a Participant’s Account with respect to the eligible portion of Excess Salary Reduction Contributions to which an Employer Match has not previously been credited.  For this purpose, the eligible portion of a Participant’s Excess Salary Reduction Contributions shall be limited to 5% of such Excess Salary Reduction Contribution.  For Participants who were Eligible Employees as of December 31, 1995, the eligible portion of such Participant’s Excess Salary Reduction Contributions for each calendar year shall be based on Compensation up to an annual maximum equal to the greater of (i) $750,000, or (ii) such Eligible Employee’s compensation, as determined by the Committee, for the 1995 calendar year.  For Participants who first became Eligible Employees in 1996 and subsequent calendar years, the eligible portion of such Participant’s Excess Salary Reduction Contributions shall be based on Compensation up to an annual maximum amount of $750,000.  Notwithstanding the foregoing, for any Participant who is also a participant in the new Viacom 401(k) Plan and either the new Viacom Excess 401(k) Plan or the new Viacom Excess 401(k) Plan for Designated Senior Executives after December 31, 2005, the maximum amount of Compensation with respect to which an Employer Match will be made is limited to $375,000.

 

Section 5.  Vesting.

 

A Participant shall always be 100% vested in amounts credited to his Account hereunder, other than amounts attributable to an Employer Match.  A Participant’s Employer Match (and earnings and losses thereon) will become vested according to the following schedule:

 

	
Years of Vesting Service
    	
 
    	
Vesting %
    	
 
    
	
Less than 1
    	
 
    	
0
    	
%
    
	
1 but less than 2
    	
 
    	
20
    	
%
    
	
2 but less than 3
    	
 
    	
40
    	
%
    
	
3 but less than 4
    	
 
    	
60
    	
%
    
	
4 but less than 5
    	
 
    	
80
    	
%
    
	
5 or more
    	
 
    	
100
    	
%
    

 

For purposes of this Section 5, Years of Vesting Service will be determined in accordance with the provisions of the CBS 401(k) Plan.

 

Regardless of a Participant’s Years of Vesting Service, such Participant will become 100% vested in the Employer Match (and earnings or losses) upon reaching age 65 while an active employee with the Company or a subsidiary or affiliate, upon retirement at or after an early retirement age (determined under the terms of any tax-qualified defined benefit plan maintained by the Employer, as in effect on January 1, 2009, in which he participates), upon death or upon Disability.

 

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Section 6.  Individual Account.

 

6.1                               Creation of Accounts.  The Company will establish and maintain on its books a reserve Account in the name of each Participant.  Each Participant’s Account will be credited with the amount of the Participant’s Excess Salary Reduction Contributions (and earnings and losses thereon) and Employer Match (and earnings and losses thereon), made in all calendar years.  A Participant’s Account will be divided into the following subaccounts:  (i) a “Pre-2005 Subaccount” for amounts deferred by a Participant and vested for purposes of Code Section 409A as of December 31, 2004 (and earnings and losses thereon), and (ii) a “Post-2004 Subaccount” for amounts deferred by a Participant and/or vested for purposes of Code Section 409A after December 31, 2004 (and earnings and losses thereon).  Amounts in the Pre-2005 Subaccounts, which are intended to qualify for “grandfathered” status, shall be subject to the terms and conditions specified in Part A of the Plan as in effect on or before October 3, 2004.

 

6.2                               Investments.  (a)  Amounts, if any, in a Participant’s Post-2004 Subaccount will be credited through December 31st of the calendar year in which the Participant experiences a Separation from Service with an amount equal to the amount which would have been earned had such amounts been invested in the same Investment Options and in the same proportion as the Participant may elect, from time to time, to have his Salary Reduction Contributions and Matching Employer Contributions invested under the CBS 401(k) Plan (other than the Self-Directed Account), or if no such election has been made, in the Fixed Income Fund (or any successor fund); provided, however, that a Participant’s Employer Match is deemed to be notionally invested in the CBS Class B Common Stock Fund.

 

(b)                                 If a Participant elects (or is deemed to elect) to have his Post-2004 Subaccount distributed in a single lump sum payable on the later of (A) January 31st of the first calendar year following the calendar year in which the Participant experiences a Separation from Service or (B) the first business day of the seventh calendar month following the calendar month in which the Participant experiences a Separation from Service, no additional adjustments will be made to the Participant’s Post-2004 Subaccount after December 31st of the calendar year in which the Participant experiences a Separation from Service that results in the Participant’s Post-2004 Subaccount becoming payable in the following calendar year.  If a Participant elects a single lump sum payable in the second, third, fourth or fifth calendar year following the calendar year in which the Participant experiences a Separation from Service, the Participant’s Post-2004 Subaccount shall be credited with earnings based on the rate of return in the Fixed Income Fund (or any successor fund) beginning January 1st of the calendar year following the calendar year in which the Participant experiences a Separation from Service that results in the Participant’s Account becoming payable and continuing through December 31st of the calendar year immediately preceding the calendar year in which the single lump sum is paid.

 

(c)                                  If a Participant elects to have his Post-2004 Subaccount distributed in Annual Payments, no additional adjustments will be made to any amount payable on January 31st of the first calendar year following the calendar year in which the Participant experiences a Separation from Service that results in his Post-2004 Subaccount becoming payable.  For any Annual Payments made in the second, third, fourth or fifth calendar year following the calendar year in which the Participant experiences a Separation from Service, the Participant’s Post-2004 Subaccount shall be credited with earnings based on the rate of return in the Fixed Income Fund (or any successor fund) beginning January 1st of the calendar year following the calendar year in

 

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which the Participant experiences a Separation from Service that results in his Post-2004 Subaccount becoming payable and continuing through December 31st of the calendar year immediately preceding the calendar year in which each payment is made.

 

(d)                                 No provision of this Plan shall require the Company or the Employer to actually invest any amounts in any fund or in any other investment vehicle.

 

6.3                               Account Statements.  Each Participant will be given, at least annually, a statement showing (i) the amount of all Excess Salary Reduction Contributions, (ii) the amount of Employer Match, if any, made with respect to his Account for such calendar year, and (iii) the balance of the Participant’s Account after crediting Investments.

 

Section 7.  Payment.

 

7.1                               Joint Payment Option Election.  (a)  An Eligible Employee who has not elected or been deemed to have elected a Joint Payment Option under any other account balance plan that is required to be aggregated with this Plan under Code Section 409A shall, when he first becomes eligible to participate in the Plan, elect a Joint Payment Option on a written or electronic form acceptable to the Committee (a “Payment Election”) at the same time that the Eligible Employee files his initial Deferral Election to commence participation in the Plan pursuant to Section 3.2, and in any event not later than his initial Election Filing Date.  Such Payment Election shall be effective as of such initial Election Filing Date and shall be irrevocable.  A Joint Payment Option elected pursuant to a Payment Election shall apply to all amounts credited to the Participant’s Post-2004 Subaccount in this Plan and his Post-2004 Subaccount under any other account balance plan that is required to be aggregated with this Plan under Code Section 409A.

 

(b)                                 (i)                                     A Participant may elect to receive his entire Post-2004 Subaccount under either of the following Joint Payment Options: (A) a single lump sum; or, (B) annual payments over a period of two, three, four or five years (“Annual Payments”).  The Annual Payments shall be treated as a single payment for purposes of this Section 7.  If a Participant elects to receive Annual Payments over a period of two or more years, such Annual Payments shall be made in substantially equal annual payments, unless the Participant designates, at the time of making his Joint Payment Option election, a specific percentage of his Post-2004 Subaccount to be distributed in each year.  All specified percentages must be a whole multiple of 10% and the total of all designated percentages must be equal to 100%.

 

(ii)                                  If a Participant makes a Joint Payment Option Election to receive Annual Payments, the first payment shall be made on the later of (A) January 31st of the calendar year immediately following the calendar year in which the Participant experiences a Separation from Service or (B) the first business day of the seventh calendar month following the calendar month following the calendar month in which the Participant experiences a Separation from Service, and any subsequent Annual Payments shall be made on each applicable January 31st thereafter.

 

(iii)                               If a Participant makes a Joint Payment Option to receive payments in a single lump sum, such lump sum payment shall be made on the later of (A) January 31st of the calendar year immediately following the calendar year in which the Participant experiences a Separation from Service or (B) the first business day of the seventh calendar month following the

 

8

 

calendar month in which the Participant experiences a Separation from Service.  Alternatively, a Participant may elect for the single lump sum to be paid on January 31st of the second, third, fourth, or fifth calendar year following the end of the calendar year in which the Participant experiences a Separation from Service.

 

(iv)                              If a Participant does not make a Joint Payment Option Election in accordance with the terms of the Plan or under any other account balance plan that is required to be aggregated with this Plan under Code Section 409A, such Participant shall be deemed to have elected to receive a single lump sum payable in accordance with the first sentence of Section 7.1(b)(iii).

 

(v)                                 The following examples illustrate the provisions of this Section 7.1(b):

 

Example 1: Assume that a Participant elects (or is deemed to elect) a Joint Payment Option that provides for a single lump sum payment on the later of (A) January 31st of the calendar year following the calendar year in which he incurs a Separation from Service or (B) the first business day of the seventh calendar month following the calendar month in which the Participant experiences a Separation from Service, and the Participant experiences a Separation from Service on March 15, 2009.  The lump sum shall be paid on January 31, 2010.  The Participant alternatively could have elected to receive his lump sum payment on January 31, 2011, 2012, 2013 or 2014.

 

Example 2:  Same facts as Example 1, except the Participant experiences a Separation from Service on September 15, 2009.  In this example, the lump sum will be paid on the first business day in April 2010.

 

Example 3: If a Participant elects a Joint Payment Option that provides for Annual Payments over a period of four years in the event of a Separation from Service and experiences a Separation from Service on March 15, 2009, each payment on January 31, 2010 through 2013 will be comprised of approximately 25% of the Participant’s Post-2004 Subaccount as of the Participant’s date of Separation from Service, though the actual amount of each payment may not be the same due to crediting of investment gains and losses through December 31st of the calendar year prior to the calendar year of each such payment.  A Participant alternatively could designate that 10% of his Post-2004 Subaccount be distributed on January 31, 2010, 20% on January 31, 2011, 30% on January 31, 2012 and 40% on January 31, 2013, or, any other combination of percentages that totals 100%.

 

Example 4:  Same facts as Example 3, except the Participant experiences a Separation from Service on September 15, 2009.  In this example, the first payment shall be made on the first business day in April 2010, and the remaining three payments will be made on January 31, 2011, 2012, and 2013.  The alternative schedule described in Example 3 would result in payment of 10% of his Post-2004 Subaccount on the first business day in April 2010, 20% on January 31, 2011, 30% on January 31, 2012 and 40% on January 31, 2013.

 

7.2                               Payment on Account of Separation from Service.  If a Participant experiences a Separation from Service prior to his death, the Participant shall commence receiving payments

 

9

 

from his Post-2004 Subaccount in accordance with the Joint Payment Option Election in effect with respect to the Participant.

 

7.3                               Payment on Account of Participant’s Death. If a Participant dies prior to his Separation from Service, the Participant’s entire Post-2004 Subaccount shall be paid to the Participant’s beneficiary in a single lump sum payment within 90 days of the Participant’s death.

 

Section 8.  Unforeseeable Emergency Distributions and Deferral Revocations.

 

A Participant may request the Committee to accelerate distribution of all or any part of the value of his Post-2004 Subaccount solely for the purpose of alleviating an Unforeseeable Emergency.  Payments of amounts as a result of an Unforeseeable Emergency may not exceed the amount necessary to satisfy such Unforeseeable  Emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, and after taking into account any additional compensation that is available to the Participant upon cancellation of the Participant’s Excess Salary Reduction Contributions.  The Committee may request that the Participant provide certifications and other evidence of qualification for such Unforeseeable Emergency distribution as it determines appropriate.  The decision of the Committee with respect to the grant or denial of all or any part of such request shall be in the sole discretion of the Committee, whether or not the Participant demonstrates that an Unforeseeable Emergency exists, and shall be final and binding and not subject to review.  If a Participant receives a distribution upon an Unforeseeable Emergency pursuant to this Section 8 or a hardship withdrawal under the CBS 401(k) Plan, the Participant’s Deferral Election will be canceled in its entirety for the remainder of the calendar year in which such Unforeseeable Emergency distribution is made under this Plan and under any account balance plan that is required to be aggregated with this Plan under Code Section 409A.

 

Section 9.  Beneficiary Designation.

 

A Participant’s beneficiary designation for this Plan will automatically be the same as the Participant’s beneficiary designation recognized under the CBS 401(k) Plan, unless a separate written designation of beneficiary form for this Plan has been properly filed with the Committee in a form acceptable to the Committee.  In the absence of such a designation and at any other time when there is no existing beneficiary designated hereunder, the beneficiary of the Participant for payment of his Account hereunder shall be the estate of the Participant.  If two or more persons designated as a Participant’s beneficiary are in existence with respect to his Account, the amount of any lump sum payment payable hereunder shall be divided equally among such persons unless the Participant’s beneficiary designation specifically provides for a different allocation.

 

Section 10.  Nature of Interest of Participant.

 

Participation in this Plan will not create, in favor of any Participant, any right or lien in or against any of the assets of the Company or any Employer, and all amounts of compensation deferred hereunder shall at all times remain an unrestricted asset of the Company or the Employer.  A Participant’s rights to benefits payable under the Plan are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, or encumbrance.  All payments hereunder shall be paid in cash from the general funds of the Company or applicable

 

10

 

Employer and no special or separate fund shall be established and no other segregation of assets shall be made to assure the payment of benefits hereunder.  Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship, between any Employer and a Participant or any other person, and the Company’s and each Employer’s promise to pay benefits hereunder shall at all times remain unfunded as to the Participant.

 

Section 11.  Administration.

 

11.1                        Committee. The Plan shall be administered by the Committee.  The Committee shall have sole and absolute discretion to interpret, where necessary, the provisions of the Plan (including, without limitation, by supplying omissions from, correcting deficiencies in, or resolving inconsistencies or ambiguities in, the language of the Plan), to determine the rights and status under the Plan of any Participant and other persons, to resolve questions or disputes arising under the Plan and to make any determinations with respect to the benefits hereunder and the persons entitled thereto as may be necessary for the purposes of the Plan.

 

11.2                        Powers of the Committee.      In furtherance of, but without limiting Section 11.1, the Committee shall have the following specific authorities, which it shall discharge in its sole and absolute discretion in accordance with the terms of the Plan (as interpreted, to the extent necessary, by the Committee):

 

(i)                                     to determine who are Eligible Employees for purposes of participation in the Plan;

 

(ii)                                  to interpret the terms and provisions of the Plan and to determine any and all questions arising under the Plan, including without limitation, the right to remedy possible ambiguities, inconsistencies, or omissions by a general rule or particular decision;

 

(iii)                               to adopt rules consistent with the Plan;

 

(iv)                              to approve certain amendments to the Plan;

 

(v)                                 to determine the amounts payable to any person under the Plan; and

 

(vi)                              to conduct the claims procedure specified in Section 11.3.

 

11.3                        Claims Procedure.

 

(a)                                 Initial Claim.  The Committee will make all determinations as to the right of any persons to benefits under the Plan in accordance with the governing Plan documents.  Any denial by the Committee of a claim for benefits under the Plan by a Participant will be stated in writing by the Committee and delivered or mailed to the Participant within a reasonable period of time, but not later than 90 days after receipt of the claim by the Plan, unless the Committee determines that special circumstances require an extension of time for processing the claim.  Written notice of the extension shall be furnished to the Participant prior to the termination of the initial 90-day period.  The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render the benefit determination, which cannot exceed a period of 90 days from the end of the initial period.

 

11

 

(b)                                 Manner and Content of Notification of Benefit Determination.  The Committee shall provide a Participant with written notification (which may be delivered electronically) of any adverse benefit determination.  The notification shall set forth in a manner calculated to be understood by the Participant:

 

(i)                                     The specific reason or reasons for the adverse determination;

 

(ii)                                  Reference to the specific Plan provisions on which the determination is based;

 

(iii)                               A description of any additional material or information necessary for the Participant to perfect the claim and an explanation of why such material or information is necessary; and

 

(iv)                              A description of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the Participant’s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

 

(c)                                  Review of Benefit Determination.  The Committee will provide to any Participant whose claim for benefits has been denied an opportunity for a full and fair review of the denial.  As part of the review, the Committee will:

 

(i)                                     Provide a Participant at least 60 days (180 days for a claim regarding Disability) following the receipt of a notification of an adverse benefit determination within which to appeal the determination;

 

(ii)                                  Provide a Participant the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits;

 

(iii)                               Provide that a Participant shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Participant’s claim for benefits; and

 

(iv)                              Provide for a review that takes into account all comments, documents, records, and other information submitted by the Participant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

 

(d)                                 Notification of Determination on Review.  The Committee shall provide a Participant with written notification (which may be delivered electronically) of the Plan’s benefits determination on review within a reasonable period of time, but not later than 60 days after receipt of the claim by the Plan, unless the Committee determines that special circumstances require an extension of time for processing the claim.  Written notice of the extension will be furnished to a Participant prior to the termination of the initial 60-day period.  The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the benefit determination on review, which cannot exceed a period of 60 days from the end of the initial period.  In the case of an adverse benefit determination, the notification shall set forth, in a manner calculated to be understood by the Participant:

 

12

 

(i)                                     The specific reason or reasons for the adverse determination;

 

(ii)                                  Reference to the specific Plan provisions on which the benefit determination is based;

 

(iii)                               A statement that the Participant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Participant’s claim for benefits; and

 

(iv)                              A statement describing any voluntary appeal procedures offered by the Plan and the Participant’s right to obtain the information about such procedures and a statement of the Participant’s right to bring an action under Section 502(a) of ERISA.

 

11.4                        Finality of Committee Determinations and Delegation.  Determinations by the Committee and any interpretation, rule, or decision adopted by the Committee under the Plan or in carrying out or administering the Plan shall be final and binding for all purposes and upon all interested persons, their heirs, and personal representatives.  The Committee shall be the named fiduciary of the Plan.  The Committee may delegate to any person any one or more if its powers, functions, duties or responsibilities with respect to the Plan, including, without limitation, duties with respect to the processing, review, investigation, approval and payment of Accounts.

 

11.5                        Rules and Regulations Established by Committee.  The Committee may promulgate any rules and regulations it deems necessary in order to carry out the purposes of the Plan or to interpret the terms and conditions of the Plan; provided however, that no rule, regulation or interpretation shall be contrary to the provisions of the Plan.  The rules, regulations and interpretations made by the Committee shall, subject only to the claims procedure outlined in Section 11.3, be final and binding on any employee, former employee, or other individual making a claim for Plan benefits.

 

Section 12.  No Employment Rights.

 

No provisions of the Plan or any action taken by the Company, any Employer, the Board of Directors, or the Committee shall give any person any right to be retained in the employ of the Company or any Employer, and the right and power of the Company or any Employer to dismiss or discharge any Participant is specifically reserved.

 

Section 13.  Amendment, Suspension, and Termination.

 

The Committee shall have the right to amend the Plan at any time, unless provided otherwise in the Company’s governing documents.  The Board of Directors shall have the right to suspend or terminate the Plan at any time.  No amendment, suspension or termination shall, without the consent of a Participant, adversely affect such Participant’s rights in his Account; provided, however, that the consent requirement of Participants to certain actions shall not apply to any amendment or termination that is deemed necessary by the Company to avoid the imposition on any person of additional taxes, penalties or interest under Code Section 409A.  In the event the Plan is terminated, the Committee may continue to administer the Plan in accordance with the relevant provisions thereof or shall have the right to change the time and form of distribution of Participants’ Accounts, including requiring that the Accounts be

 

13

 

immediately distributed in the form of a lump sum payment; provided, however, that no such change in the time or form of payment shall cause the Plan to fail to comply with the requirements of Code Section 409A.

 

Section 14.  Miscellaneous.

 

14.1                        Severability.  If a provision of the Plan shall be held invalid, the invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the invalid provision had not been included in the Plan.

 

14.2                        Governing Law.  The provisions of the Plan shall be governed by and construed in accordance with the laws of the State of New York, to the extent not preempted by the laws of the United States.

 

14.3                        Gender.  Wherein used herein, words in the masculine form shall be deemed to refer to females as well as males.

 

14.4                        Code Section 409A.  To the extent applicable, it is intended that this Plan comply with the provisions of Code Section 409A.  References to Code Section 409A shall include any proposed, temporary or final regulation, or any other guidance, promulgated with respect to such section by the U.S. Department of the Treasury or the Internal Revenue Service.  This Plan shall be administered and interpreted in a manner consistent with this intent.  If any provision of this Plan is susceptible of two interpretations, one of which results in the compliance of the Plan with Code Section 409A and the applicable Treasury Regulations, and one of which does not, then the provision shall be given the interpretation that results in compliance with Code Section 409A and the applicable Treasury Regulations.  Notwithstanding the foregoing or any other provision of this Plan to the contrary, neither CBS nor any of its subsidiaries or affiliates shall be deemed to guarantee any particular tax result for any Participant, spouse, or beneficiary with respect to any payments provided hereunder.

 

14

 

AMENDMENT NO. 1 TO THE CBS EXCESS 401(K) PLAN

PART B — AMENDMENT AND RESTATEMENT AS OF JANUARY 1, 2009 (THE “PLAN”)

 

Except as otherwise noted herein, the following amendments shall be effective as of January 1, 2009.

 

1.                                                The Plan is hereby amended by deleting each occurrence of the term “this Plan” and inserting in place thereof the term “the Plan”.

 

2.                                                Section 2.9 of the Plan is hereby amended to delete the term “Long Term Performance Plan” and to insert in place thereof the words “long-term incentive plans”.

 

3.                                                Section 2.14 of the Plan is hereby amended to insert the phrase “, except as provided in Section 3.2(b),” immediately following the word “means”.

 

4.                                                Section 2.15 of the Plan is hereby amended to delete the word “and” immediately prior to subsection (ii) thereof and to insert the word “who” as the first word in each of subsections (ii) and (iii) thereof.

 

5.                                                Section 2.21 of the Plan is hereby amended to delete the cross-reference to Section 7.1(b) and to insert in place thereof a cross-reference to Section 7.1.

 

6.                                                Section 2.22 of the Plan is hereby amended to delete the cross-reference to Section 7.1(b)(ii) and to insert in place thereof a cross-reference to Section 7.1.

 

7.                                                Section 2.26 of the Plan is hereby amended to delete the phrase “as set forth herein, and” and to add at the end thereof a new sentence as follows:

 

“References to “the Plan” shall be considered references to Part A and/or Part B of the Plan as context requires.”

 

8.                                                Section 2.30 of the Plan is hereby amended to (1) delete the phrases “ an Employee who is” and “in the Plan” in the first sentence thereof, (2) delete the third and fourth occurrences of the word “Employee” and to insert in place thereof the word “employee”, (3) delete the second, fifth, seventh and eighth occurrences of the word “Employee” and insert in place thereof the word “Participant” and (4) delete the sixth and ninth occurrences of the word “Employee” as well as the word “an” immediately preceding each such occurrence and to insert in place thereof the words “a Participant”.

 

9.                                                Section 3.1 is hereby amended to insert the words “or its delegee” immediately following the word “Committee.”

 

10.                                         Section 3.2(b) of the Plan is hereby amended to insert the words “portion of the” immediately prior to the word “calendar” in the second sentence thereof and to add at the end thereof a new sentence as follows:

 

“If an Eligible Employee is a participant in another account balance plan that is required to be aggregated with the Plan under Code Section 409A when he first become eligible to participate in the Plan, such Eligible Employee shall be

 

 

eligible to make a Deferral Election for the calendar year immediately following the calendar year of his initial eligibility by making an election in accordance with Section 3.2(a) above.”

 

11.                                         Section 3.3 of the Plan is hereby amended to delete the term “Participant’s” and to insert in place thereof the term “Eligible Employee’s”.

 

12.                                         Section 6.1 of the Plan is hereby amended to insert the words “, if any” immediately following the second parenthetical therein.

 

13.                                         Section 6.2(a) of the Plan is hereby amended to insert the word “Excess” immediately prior to the words “Salary Reduction Contributions”.

 

14.                                         Sections 6.2(b) and 6.2(c) of the Plan are hereby amended to delete such sections in their entirety and to insert in place thereof the following:

 

“(b)                                   If a Participant elects (or is deemed to elect) to have his Post-2004 Subaccount distributed in a single lump sum, the Participant’s Post-2004 Subaccount shall be credited with earnings based on the rate of return in the Fixed Income Fund (or any successor fund) beginning January 1st of the calendar year following the calendar year in which the Participant experiences a Separation from Service that results in the Participant’s Post-2004 Subaccount becoming payable, and continuing through the date upon which such single lump sum payment is determined, if such determination date is after December 31st of the calendar year in which the Participant experiences a Separation from Service.  Payments due on January 31st of a calendar year are determined on the previous December 31st, while payments due on the first business day of a calendar month are determined on the last day of the second preceding calendar month (e.g., a payment scheduled for the first business day of March will be determined on the preceding January 31st).

 

(c)                                          If a Participant elects to have his Post-2004 Subaccount distributed in Annual Payments, the Participant’s Post-2004 Subaccount shall be credited with earnings based on the rate of return in the Fixed Income Fund (or any successor fund) beginning January 1st of the calendar year following the calendar year in which the Participant experiences a Separation from Service that results in the Participant’s Post-2004 Subaccount becoming payable, and continuing through the date upon which such Annual Payment is determined, if such determination date is after December 31st of the calendar year in which the Participant experiences a Separation from Service.  Payments due on January 31st of a calendar year are determined on the previous December 31st, while payments due on the first business day of a calendar month are determined on the last day of the second preceding calendar month (e.g., a payment scheduled for the first business day of March will be determined on the preceding January 31st).”

 

15.                                         Section 7.1 of the Plan is hereby amended to delete the phrase “following the calendar month” in subsection (ii) thereof.

 

 

16.                                         Section 7.1(b) of the Plan is hereby amended to (1)  insert the word “Election” immediately following the term “Joint Payment Option” in the first sentence of subsection (iii) thereof, (2) delete the word “elected” in subsection (iv) thereof and to insert in place thereof the phrase “made a Joint Payment Option Election” and (3) insert the phrase “his Post-2004 Subaccount in” immediately following the words “to receive” in subsection (iv) thereof.

 

17.                                         Section 7.3 of the Plan is hereby amended to (1) insert the phrase “or after his Separation from Service but prior to the distribution of his entire Post-2004 Subaccount,” immediately following the first occurrence of the term “Separation from Service,” and (2) insert at the end thereof a new sentence as follows:

 

“The Participant’s Post-2004 Subaccount shall continue to be credited with earnings in accordance with Section 6.2 until his entire Post-2004 Subaccount is distributed.”

 

18.                               Section 8 of the Plan is hereby amended to insert the word “other” immediately prior to the words “account balance plan” in the final sentence thereof.

 

19.                               Section 9 of the Plan is hereby amended to delete each occurrence of the term “Account” and to insert in place thereof the term “Post-2004 Subaccount.”

 

20.                               Section 11.4 of the Plan is hereby amended to delete the word “if” immediately prior to the words “its powers” in the final sentence thereof and to insert in place thereof the word “of”.

 

21.                               Section 14.4 of the Plan is hereby amended to delete the word “CBS” in the last sentence thereof and to insert in place thereof the term “the Company”.

 

 

AMENDMENT NO. 2 TO THE CBS EXCESS 401(K) PLAN

PART B — AMENDMENT AND RESTATEMENT AS OF JANUARY 1, 2009 (THE “PLAN”)

 

Except as otherwise noted herein, the following amendments shall be effective as of January 1, 2009.

 

1.                Section 1.3 of the Plan is hereby amended to delete the last sentence and to insert in place thereof the following:

 

“Elections as to the time and form of payment made by a Reporting Employee (or an employee whose securities may be attributable to a Reporting Employee) under this Plan prior to the date his account is transferred to the Executive Excess Plan shall remain in full force and effect following the transfer.”

 

2.                Section 2.4 of the Plan is hereby amended to insert the phrase “(or annual component of a cash bonus plan)” immediately following the phrase “annual cash bonus plan”.

 

3.                Section 2.9 of the Plan is hereby amended to delete such section in its entirety and to insert in place thereof the following:

 

“2.9                         The term ‘Compensation’ means an Eligible Employee’s base pay for services rendered to an Employer paid during such Employer’s payroll period, including all elective contributions made on behalf of an Eligible Employee either to a ‘qualified cash or deferred arrangement’ (as defined under Code Section 401(k) and applicable regulations), a ‘cafeteria plan’ (as defined under Code Section 125 and applicable regulations), or a ‘qualified transportation fringe’ (as defined under Code Section 132(f) and applicable regulations) maintained by an Employer, plus all overtime pay, commissions, hazard pay and shift differential pay, but excluding (x) deferred compensation, (y) additional compensation of every other kind, including cash bonuses under the Company’s long-term incentive plans, and (z) any Bonus.  Compensation shall be determined without taking into account the limitations imposed by Code Section 401(a)(17).  Notwithstanding the foregoing,

 

(i)             With respect to any Eligible Employee who is an employee of Paramount Pictures Corporation and who is characterized as a ‘Production Auditor,” Compensation shall include salary or wages paid to such Eligible Employee that are characterized by Paramount Pictures Corporation as ‘Idle Day earnings’; and

 

(ii)          With respect to any Eligible Employee who is characterized as ‘Talent’ by his Employer, Compensation shall instead mean such Eligible Employee’s talent benefit base, as determined under applicable policies of the Employer.”

 

4.                Section 2.15 of the Plan is hereby amended to insert at the end thereof the following sentence:

 

 

“With respect to any employee of an Employer who is characterized as ‘Talent’ by his Employer, the requirement in clause (i) above shall be met if the employee’s talent benefit base, as determined under applicable policies of the Employer, equals or is greater than the annual compensation limit in effect under Code Section 401(a)(17) (as adjusted from time to time by the Committee).”

 

5.                Section 6.1 of the Plan is hereby amended to delete the phrase “deferred by a Participant and vested for purposes of Code Section 409A” and to insert in place thereof the word “Deferred”.

 

6.                Section 6.2(a) of the Plan is hereby amended to delete such section in its entirety and to insert in place thereof the following:

 

“(a)                           Amounts, if any, in a Participant’s Post-2004 Subaccount will be credited through December 31st of the calendar year in which the Participant experiences a Separation from Service with an amount equal to the amount which would have been earned had such amounts been invested in the same Investment Options and in the same proportion as the Participant may elect, from time to time, to have his contributions invested under the CBS 401(k) Plan (other than the Self-Directed Account).”

 

7.                Section 8 of the Plan is hereby amended to delete the phrase “, whether or not the Participant demonstrates that an Unforeseeable Emergency exists,” in the penultimate sentence thereof and to replace it with the phrase “, even if the Participant demonstrates that an Unforeseeable Emergency exists,”.

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