Document:

Exhibit

Ex. 10.47

LOAN PURCHASE AGREEMENT 
 
THIS LOAN PURCHASE AGREEMENT (this “Agreement”) is made effective as of September 30, 2015 (the “Effective Date”), by and between Oasis Indian Bend LLC, a Delaware limited liability company (“Seller”), and SREOF II Holdings, LLC, a Delaware limited liability company (“Purchaser”).
 
WHEREAS, Seller is the holder of a loan (the “Loan”) to NAUOASIS, LLC, a Texas limited liability company (“Borrower”), evidenced by, among other things, that certain Promissory Note Secured by Real Property dated effective July 23, 2015, made by Borrower in favor of Seller, in the principal amount of $11,000,000, a copy of which is attached hereto as Exhibit A (the “Note”).

WHEREAS, the Note is secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated July 23, 2015, by and among Seller as Beneficiary, Borrower as Trustor, and Clifton M. Dugas, II as Trustee, recorded as Instrument Number 2015088972 in the Official Records of Fort Bend County, Texas, a copy of which is attached hereto as Exhibit B (the “Deed of Trust”), which Deed of Trust encumbers and creates a security interest in the real property commonly known as Oasis Medical Center located at 11929 West Airport Boulevard, Stafford, Texas 77477, as more particularly described in the Deed of Trust (the “Property”).

WHEREAS, the Loan is further evidenced by that certain Non-Recourse Carve-Out Guaranty dated as of July 23, 2015 (“Non-Recourse Guaranty”), from Fercan E. Kalkan and Fatma Kalkan (collectively, the “Guarantors”), and that certain Unconditional Loan Guaranty from Guarantors dated as of July 23, 2015 (“Unconditional Guaranty”). 

WHEREAS, Seller’s interests in the Note and Deed of Trust have previously been collaterally assigned to CC3 LOAN PORTFOLIO II, LLC, a Delaware limited liability company (“CC3”) (the “Prior Collateral Assignment”), and in connection therewith Seller previously delivered to CC3:  the original Note and Deed of Trust; a Collateral Security Agreement dated as of July 23, 2015, by and between CC3 and Seller (“Prior Collateral Security Agreement”); an allonge “in blank” to the Note (the “REO Loan Allonge”); and an Assignment of Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing recorded August 7, 2015 in the Official Records of Fort Bend County, Texas as Instrument # 2015088973 (the “Prior DOT Assignment”), a UCC financing statement filed with the Texas Secretary of State on August 10, 2015, with filing number 15-0025640215 (“Prior Financing Statement”).

WHEREAS, at or prior to Closing (as that term is defined below) the Prior Collateral Assignment, the Prior Collateral Security Agreement and the Prior DOT Assignment will be terminated and released. 

WHEREAS, Seller desires to sell and Purchaser desires to purchase the Loan upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser hereby agree as follows:

		
	1.
	Purchase and Sale of Loan; Closing.

1.1.    Purchase Price.  The purchase price of the Loan shall be $11,000,000 (the “Purchase Price”).

1.2.    As-Is Sale.  The Loan is being sold AS-IS, WHERE-IS, and WITH ALL FAULTS as of the Effective Date, except as specifically set forth in this Agreement.  Except as specifically set forth in this Agreement or in the Closing Documents (defined below), Seller makes no warranties or representations of any type, kind, character, or nature, whether expressed or implied, statutory or otherwise, in fact or in law, with respect to any term or condition of the Loan Documents (defined below), or with respect to the Property, personal property, and/or other collateral securing the Loan (the “Collateral”).  Without in any way limiting the generality of the foregoing, except as specifically set forth in this Agreement or in the Closing Documents, Seller makes no representation or warranty, whether expressed or implied, and assumes no responsibility with respect to the collectability or value of the Note, the creditworthiness or financial condition of Borrower or the ability of Borrower to perform its obligations under the Note or the Deed of Trust, or the performance of the obligations of Borrower under the Note or the Deed of Trust.  Seller shall have no responsibility for the financial condition of Borrower or for the ability of Borrower to perform its obligations under the Note or the Deed of Trust.  After the Closing, Purchaser shall have no recourse against Seller arising out of this Agreement, the Loan, the Note, or the Deed of Trust, except for a breach by Seller of its representations or warranties set forth herein or in the Closing Documents or Seller’s failure to perform its obligations under this Agreement or the Closing Documents.  Seller shall not under any circumstances have any duty to repurchase the Loan.  For purposes of this Agreement, the term “Loan Documents” means the Note, the Deed of Trust, the Non-Recourse Guaranty, the Unconditional Guaranty, and those certain loan agreements, notes, mortgages, leasehold mortgages, deeds of trust, deeds to secure debt, pledge agreements, security agreements,  guarantees, indemnities, intercreditor agreements, co-lender agreements, participation agreements, letters of credit, swap/hedge agreements, and all other documents, instruments or agreements executed and/or delivered in connection therewith together with all waivers, amendments, supplements or modifications thereto with respect to the Loan.

1.3    Closing.  Subject to the terms and conditions of this Agreement, Seller shall sell, assign and transfer, without recourse, all of its right, title and interest in and to the Loan, the Loan Documents and the Servicing Files and all existing and future claims, if any, against Borrower, to Purchaser at the Closing (as defined below).  The closing of the transaction contemplated by this Agreement is referred to in this Agreement as the “Closing”.

(a)    The Closing shall take on September 30, 2015 (the “Closing Date”), or at such other time as may be mutually agreed upon in writing by the parties.  

        

(b)    At or prior to the Closing, the parties shall deliver the following (collectively, the “Closing Documents”):

(1)    By Seller.  Seller shall deliver to Purchaser (i) an allonge to the Note in the form attached hereto as Exhibit C, (ii) an Assignment of Deed of Trust, in the form attached hereto as Exhibit D, to be recorded with in the Public Records of Fort Bend County, Texas, (iii) an Assignment of Loan Documents and Interests, in the form attached hereto as Exhibit E (the “Assignment of Loan Documents and Interests”); (iv) to the extent not already delivered to Purchaser, all loan documents and loan files relating to the Loan, including, without limitation the original Note, originals (to the extent in Seller’s possession or reasonable control) of the Loan Documents described on Schedule 2.8 attached hereto, and copies of all other Loan Documents and Servicing Files; (v) an executed written notice to Borrower of the transaction contemplated by this Agreement, in accordance with the notice requirements contained in the Note and Deed of Trust (the “Borrower Notice”); and (vi) evidence reasonably satisfactory to Purchaser of the satisfaction of the condition set forth in Section 4.2 hereof.  

(2)    By Purchaser.  Purchaser shall deliver to Seller:  (i) the Purchase Price; (ii) a duly executed counterpart original of the Assignment of Loan Documents and Interests; and (iii) a duly executed counterpart original of the Borrower Notice.

(c)    Distribution of Payment of Purchase Price.  Upon receipt of the Closing Documents, Purchaser shall pay the Purchase Price in cash by wire transfer of immediately available federal funds to Seller at or prior to the Closing.    

(d)    Closing Costs.  Purchaser shall pay all recording or filing charges, as applicable, for and in connection with the recording and filing of any instrument or document provided herein to be recorded or filed.  Seller and Purchaser shall each pay their respective (i) legal fees and expenses, and (ii) cost of all opinions, certificates, instruments, documents and papers required to be delivered, or caused to be delivered, by it hereunder and, without limitation, the cost of all performances by it of its obligations hereunder. Any closing costs not specifically allocated hereunder shall be allocated and paid in accordance with local custom. The provisions of this Section 1(d) shall survive the Closing.

(f)    Further Assurances by Seller.  Seller shall duly execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all conveyances, assignments and other documents and items, and take such other actions, in each case, as may be reasonably requested to allow the completion and consummation (or termination, as appropriate) of all tasks and the transactions contemplated by this Agreement and to vest Purchaser with title to, and all rights under, the Loan and Loan Documents and to carry out the intent and purposes of this Agreement, including, without limitation, executing, acknowledging and delivering any documents reasonably requested to effectuate the transfer of any litigation, foreclosure proceedings, receiverships and other enforcement actions against Borrower or any Guarantor.  This Section shall survive the Closing.

		
	2.
	Representations and Warranties of Seller.  Seller represents and warrants as follows:

2.1.    Seller is a limited liability company duly organized in the State of Delaware, and is in good standing under the laws of the State of Delaware.
2.2.    Seller is the sole holder and sole owner of the Loan. Seller’s right, title and interest, in, to, under and with respect to the Loan and Loan Documents are being transferred free and clear of any and all liens, pledges, participations, charges or security interests of any nature (including, without limitation, any interest of CC3).
2.3.    Seller is duly authorized and empowered to enter into this Agreement and to sell the Note and assign the Deed of Trust and all of its right, title and interest in and to the Loan to Purchaser.
2.4.    Except for the Prior Collateral Assignment to CC3 (which shall be released and terminated at or prior to Closing), Seller has not transferred, assigned, or encumbered, and there is no presently effective agreement to transfer, assign, or encumber, all or any part of its interest in the Loan and, as of the Closing, Seller is the sole owner of the Loan.
2.5.    All information that Seller has provided or caused to be provided to Purchaser in connection with the sale of the Loan is correct and complete in all material respects as of the Effective Date.
2.6.    The execution and delivery of this Agreement and the performance of its obligations hereunder by Seller will not conflict with any provision of any law or regulation to which Seller is subject or conflict with or result in a breach of or constitute a default of any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound or any order or decree applicable to Seller.  Seller is not required to obtain the consent of any other party or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency in connection with Seller’s execution, delivery or performance of this Agreement, except such as have been obtained or will be obtained prior to Closing.
2.7    The outstanding principal balance of the Loan is, as of the Effective Date and as of the Closing Date, $11,000,000, and the accrued unpaid interest payable under the Note is $78,657.53 (the “Accrued Interest Amount”). Schedule 2.7 sets forth the following information with respect to the Loan, which information is complete, true and correct as of the date hereof: (a) the outstanding principal balance, (b) the amount of any unfunded loan commitment, (c) the amount of any deposits, reserve balances or letters of credit held by or on behalf of Seller (and, to the extent that there are multiple reserve accounts or sub-accounts, the balance of each), (d) the last payment amount received by Seller and the date of such payment, (e) the applicable interest rate, (f) the maturity date (exclusive of any renewal or extension options that have not been exercised), (g) a summary of any defaults known to Seller under the Loan by Borrower or any Guarantor, (h) a summary of any defaults by the lender under the Loan (including those alleged by Borrower) by and (i) the amount of any hedge and swap obligations of the Seller.  
2.8    All of the Loan Documents and all documents, other than Loan Documents, relating to the origination and servicing of the Loan, including, without limitation, any closing binder for the Loan and any appraisals, environmental reports, engineering reports, title insurance policies (including without limitation that certain Loan Policy issued by First American Title Guaranty Company, Policy Number 5825648-M205065), operating statements, rent rolls, copies of leases, rating agency reports and correspondence, estoppels certificates, and any notice, demand, or other written or electronic communication from, to or with any counterparty, governmental authority or any other person in respect of the Loan (except to the extent 

same constitutes a legally privileged communication of Seller) (the “Servicing Files”) have been delivered to Purchaser and the Loan Documents are true, correct and complete in all material respects and, to Seller’s knowledge, the Servicing Files are true, correct and complete in all material respects. Schedule 2.8 sets forth all of the Loan Documents with respect to the Loan.  The Loan Documents set forth on Schedule 2.8 and the Servicing Files delivered to Purchaser on or prior to the Effective Date are all the documents that have or could reasonably be expected to have a material impact on the value of the Loan.
2.9    The Note is not subject to any offsets or credits and Borrower has no claims against the holder of the Note or any defense against the payment or performance of its obligations under the Loan. To Sellers knowledge, neither Borrower nor Guarantor nor any agent of Borrower or Guarantor has alleged that the Loan is subject to any right of rescission, set off, counterclaim or defense, including any defense of usury and Seller has not received any notice from any agent or any Borrower or Guarantor asserting that the Loan is subject to any right of rescission, set off, counterclaim or defense, including any defense or usury. 
2.10    Except as set forth on Schedule 2.7, there are no defaults by Seller or, to Seller’s actual knowledge, by Borrower or any Guarantor under the Loan Documents. 
2.11    There is no pending (nor has Seller received any written notice of any threatened) action, litigation, or other proceeding affecting Seller. Seller has not filed for and does not intend to file for a bankruptcy or similar insolvency proceeding or protection.  To Seller’s knowledge, there are no filed or threatened actions, suits or proceedings, arbitrations or governmental investigations involving the Loan, the Collateral or any of the Borrowers or Guarantors, in each case, the adverse outcome of which would reasonably be expected to materially and adversely affect (i) title to the Collateral, (ii) the validity or enforceability of the Loan Documents or (iii) the principal benefit of the security intended to be provided by the Loan Documents.
2.12     (i) Seller is not, nor is it owned (directly or indirectly) or Controlled by, any person, group, entity or nation named on any list issued by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) pursuant to Executive Order 13224 or any similar list or any law, order, rule or regulation or any Executive Order of the President of the United States as a terrorist, “Specially Designated National and Blocked Person” or other banned or blocked person (any such person, group, entity or nation being hereinafter referred to as a “Prohibited Person”); (ii) Seller is not (nor is it owned (directly or indirectly) or Controlled by any person, group, entity or nation which is) acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) Seller has not (nor is it owned (directly or indirectly) or Controlled by any person, group, entity or nation which has) conducted business or engaged in any transaction or dealing with any Prohibited Person in violation of the Patriot Act or any OFAC rule or regulation, including without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of the Patriot Act or any OFAC rule or regulation; provided, however, Seller makes no representations or warranties in this Section 2.12 with respect to any shareholder of Seller which is a governmental authority. Notwithstanding anything contained herein to the contrary, for the purposes of this Section 2.12, the phrase “owned (directly or indirectly) or Controlled by, any person, group, entity or nation” and all similar such phrases shall not include any holder of a direct or indirect interest in a publicly traded company whose shares are listed and traded on a U.S. national stock exchange. For purposes of this Section 2.12, “Control” or “Controlled” means, with respect to a person, the power to direct the actions or policies of such person by ownership of voting securities, as its general partner, manager or managing member, by contract, or by other means. 
2.13.    Seller is not an “employee benefit plan” as defined in Section 3(3) of U.S. Employee Retirement Income Security Act of 1974, the related provisions of the Code, and the respective rules and regulations promulgated thereunder, in each case as amended from time to time, and judicial rulings and 

interpretations thereof (“ERISA”), which is subject to Title I of ERISA, or a “plan” as defined in Section 4975(e)(1) of the Code, which is subject to Section 4975 of the Code; and (ii) the assets of Seller do not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA or Section 4975 of the Code; and (iii) Seller is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and assets of Seller do not constitute plan assets of one or more such plans.
2.14    No Collateral under the Loan serves as the collateral for any other loan to which  Seller is a party, or, to Seller’s knowledge, any other loan or other obligation.  The Loan is not cross-collateralized or cross-defaulted with any other loan to which Seller is a party, or, to Seller’s knowledge, any other loan.
		
	3.
	Representations and Warranties of Purchaser.  Purchaser hereby represents, warrants, and covenants that:

3.1.    Purchaser is a limited liability company duly organized in the State of Delaware, and is in good standing under the laws of the State of Delaware.  
3.2.    Purchaser is duly authorized and empowered to enter into this Agreement and to purchase the Loan from Seller.
3.3.     Purchaser represents, warrants and covenants that:  (i) Purchaser is not, nor is it owned (directly or indirectly) or Controlled by, any person, group, entity or nation named on any OFAC; (ii) Purchaser is not (nor is it owned (directly or indirectly) or Controlled by any person, group, entity or nation which is) acting directly or indirectly for or on behalf of any Prohibited Person; and (iii) Purchaser has not (nor is it owned (directly or indirectly) or Controlled by any person, group, entity or nation which has) conducted business or engaged in any transaction or dealing with any Prohibited Person in violation of the Patriot Act or any OFAC rule or regulation, including without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of a Prohibited Person in violation of the Patriot Act or any OFAC rule or regulation.  Notwithstanding anything contained herein to the contrary, for the purposes of this Section 3.3, the phrase “owned (directly or indirectly) or Controlled by, any person, group, entity or nation” and all similar such phrases shall not include any holder of a direct or indirect interest in a publicly traded company whose shares are listed and traded on a U.S. national stock exchange.  For purposes of this Section 3.3, “Control” or “Controlled” means, with respect to a Person, the power to direct the actions or policies of such Person by ownership of voting securities, as its general partner, manager or managing member, by contract, or by other means.
3.4.    Purchaser is not an “employee benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “plan” as defined in Section 4975(e)(1) of the Code, which is subject to Section 4975 of the Code; and (a) the assets of Purchaser do not constitute “plan assets” of one or more such plans for purposes of Title I of ERISA or Section 4975 of the Code; and (b) Purchaser is not a “governmental plan” within the meaning of Section 3(32) of ERISA, and assets of Purchaser do not constitute plan assets of one or more such plans..
		
	4.
	Conditions of Purchaser’s Obligations at the Closing.  The obligations of Purchaser with respect to the Closing are subject to the fulfillment on or before the Closing of each of the following conditions:

4.1.    Representations and Warranties.  The representations and warranties of Seller contained in Section 2 shall be true on and as of the Closing.
4.2.      CC3 Release Conditions. CC3 shall have released any right, title and interest in the Collateral and the Loan Documents, and Seller shall have received satisfactory evidence of same. Without limiting the 

generality of the foregoing, the Prior Collateral Assignment, the Prior Collateral Security Agreement and the Prior DOT Assignment shall have been terminated and released, the REO Loan Allonge shall have been returned to Seller (or satisfactory evidence of its destruction shall have been given to Purchaser), and Purchaser shall have received satisfactory evidence that the Prior Financing Statement may be assigned to Purchaser.
4.3.    Performance.  Seller shall have performed and complied with all material agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing, including, without limitation, all of Seller’s required deliveries under Section 1.3(b)(1) of this Agreement.
		
	5.
	Conditions of Seller’s Obligations at Closing.  The obligations of Seller to Purchaser under this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions by Purchaser:

5.1.    Representations and Warranties.  The representations and warranties of Purchaser contained in Section 3 shall be true and correct on and as of the Closing.
5.2.    Payment of Purchase Price.  Purchaser shall have delivered the Purchase Price as provided for in Section 1.
5.3.    Performance.  Purchaser shall have performed and complied with all material agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the Closing, including, without limitation, all of Purchaser’s required deliveries under Section 1.3(b)(2) of this Agreement.
		
	6.
	Prorated Interest Payment.  Notwithstanding anything to the contrary in this Agreement or otherwise, after the Closing, Purchaser shall pay to Seller the Accrued Interest Amount within ten (10) days after Borrower’s payment of same to Purchaser under the Note, by wire transfer of immediately available funds pursuant to separate written instructions to be provided by Seller.  Purchaser’s payment of the Accrued Interest Amount shall not affect the Purchase Price.  This Section 6 shall survive the Closing.

		
	7.
	Miscellaneous.

7.1.    Survival.  The warranties and representations of the parties to this Agreement contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing for a period of one (1) year after the Closing.
7.2.    Release of Seller; Mutual Indemnification.  As of the Closing, Seller shall be released from all duties, responsibilities and obligations of the lender under the Note or the Deed of Trust to the extent arising from and after the Closing, and Purchaser shall assume all such duties, responsibilities and obligations arising from and after the Closing.  Purchaser shall, following the Closing, indemnify, defend and hold harmless Seller from and against any loss, injury, damage, causes, of action, liabilities, demands, obligations claim, lien, cost, or expense, including attorneys’ fees and costs (“Claims”) made, sustained, suffered, or incurred against or by Seller attributable to or arising out of the duties, responsibilities, or obligations of Lender under the Loan Documents from and after the Closing, but expressly excluding any Claims to the extent caused by any event occurring prior to the Closing Date and/or the negligence or willful misconduct of Seller and/or any Claims related to Seller’s breach of its representations, warranties and covenants set forth in this Agreement or the Closing Documents. Seller shall, following the Closing, indemnify, defend and hold harmless Purchaser and its present or former officers, directors, shareholders, employees, representatives, agents, successors and assigns (collectively, the “Purchaser Indemnified Parties”), and each 

of them, from and against any Claim made, sustained, suffered, or incurred against or by Purchaser attributable to or arising out of the duties, responsibilities, or obligations of Lender under the Loan Documents prior to the Closing, but expressly excluding any Claims to the extent caused by any event occurring after the Closing Date and/or the negligence or willful misconduct of Purchaser.  Each party’s obligations under this Section 7.2 shall survive the Closing.  
7.3.    Successors and Assigns.  Except as otherwise provided herein, the terms and conditions of this Agreement shall insure to the benefit of and be binding upon the respective successors and assigns of each party (including any subsequent transferee of any interest in the Loan).  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto, or their respective successors and assigns, any rights, remedies, obligations, or liabilities under or by reason of this Agreement except as expressly provided herein.
7.4.    Jurisdiction.  This Agreement shall be governed by and construed under the laws of the State of Texas.  Any lawsuit or litigation arising under, out of, in connection with, or in relation to this Agreement, any amendment hereof, or the breach hereof, shall be brought in the appropriate court in Fort Bend County, Texas, which shall have exclusive jurisdiction over any such lawsuit or litigation.
7.5.    Headings.  The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
7.6.    Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) upon transmission when sent via e-mail, (iii) when sent by confirmed facsimile, (iv) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (v) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications to any party shall be sent to the addresses set forth on the signature page hereto for such party or at such other address as such party may designate by ten (10) days’ advance written notice to the other parties hereto.    
7.7.    Time of the Essence.  Time is of the essence in the execution and performance of this Agreement and each provision hereof.  
7.8.    No Joint Venture.  Nothing in this Agreement shall create or be deemed to create a joint venture or partnership among the parties.  Each party agrees not to hold itself out as having any authority or as being in a relationship contrary to this Section 8.8.
7.9.    Attorneys’ Fees.  If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement or the Loan, the prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and necessary disbursements incurred in connection therewith.
7.10.    Entire Agreement; Amendments and Waivers.  This Agreement and the documents referred to herein constitute the entire agreement among the parties.  Except as otherwise provided in this Agreement, any term of this Agreement may be amended and the observance of any term may be waived only with the written consent of both Seller and Purchaser.
7.11.    Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement to the minimum extent necessary to comply with the laws of the relevant jurisdiction, and the balance of the Agreement shall be interpreted as if such provision were so excluded in such jurisdiction and shall be enforceable in accordance with its terms.

7.12.    Counterparts.  This Agreement may be executed in two (2) or more original or electronic counterparts, all of which together shall constitute one and the same instrument.

[Signatures on following page]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

 
	
		
	SELLER:
	 

	 
	 

	OASIS INDIAN BEND LLC,
a Delaware limited liability company

By:IMH Financial Corporation,
a Delaware corporation
Its:Sole Member and Manager

By:
Name:
Its:
 
	Address for Notice:

Oasis Indian Bend LLC
c/o IMH Financial Corporation
7001 North Scottsdale Road, Suite 2050
Scottsdale, Arizona 85253
Attn: Lawrence D. Bain, CEO
Email:  ldb@imhfc.com

With a copy to:

c/o IMH Financial Corporation
7001 North Scottsdale Road, Suite 2050
Scottsdale, Arizona 85253
Attn: Jonathan Brohard, General Counsel
Email:  jbrohard@imhfc.com 

	 
	  

	 PURCHASER:
	 

	SREOF II Holdings, LLC, a 
Delaware limited liability company

By:
Name:
Its:
	

c/o Singerman Real Estate
980 N. Michigan Avenue, Suite 1660
Chicago, IL 60611
Attention: Seth Singerman
Email: ssingerman@singermanre.com

With a copy to:

Mayer Brown LLP
71 South Wacker Drive
Chicago, Illinois 60606
Attention:  Brian E. Davis
Email:  bdavis@mayerbrown.com 

	 
	 

Signature Page to Loan Purchase Agreement

JOINDER

This joinder (this “Joinder”) is attached to and made a part of the foregoing Agreement and all terms capitalized but not defined herein shall have the respective meanings given to them in the Agreement.  The undersigned, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, hereby joins in the execution of this Agreement, and agrees that it is jointly and severally liable, as a principal and not as a surety, for the Seller’s obligations under the Agreement and the documents executed in connection therewith that survive the Closing.  The Purchaser shall have the right to proceed directly against the undersigned without first making written demand to Seller (and without any obligation to bring suit against the Seller) for the satisfaction of any such obligations.

The undersigned is an owner of Seller, shall derive substantial benefits from the Closing and acknowledges that the execution of this Joinder is a material inducement and condition to Purchaser’s execution of the Agreement.  The undersigned represents and warrants that it has the legal right, power, authority and capacity to execute this Joinder, that such execution does not violate the organizational documents of, or any other agreement or instrument by which the undersigned is bound, and that this Joinder is binding and enforceable against the undersigned. The undersigned unconditionally waives any guarantor or suretyship defenses that might otherwise be available to it with respect to its obligations under this Joinder.  

	
		
	IMH Financial Corporation,
a Delaware corporation

By:
Name:
Its:
	7001 North Scottsdale Road, Suite 2050
Scottsdale, Arizona 85253
Attn: Lawrence D. Bain, CEO
Email:  ldb@imhfc.com

With a copy to:

7001 North Scottsdale Road, Suite 2050
Scottsdale, Arizona 85253
Attn: Jonathan Brohard, General Counsel
Email:  jbrohard@imhfc.com 

EXHIBIT A
PROMISSORY NOTE
(See Attached.)

EXHIBIT B
DEED OF TRUST
(See Attached.)

EXHIBIT C
FORM OF ALLONGE
ALLONGE TO PROMISSORY NOTE SECURED BY REAL PROPERTY

This Allonge to Promissory Note Secured by Real Property is attached to and made a part of that certain Promissory Note Secured by Real Property:
Dated:        July 23, 2015
		
	Made By:
	NAUOASIS, LLC, a Texas limited liability company

To:        OASIS INDIAN BEND LLC, a Delaware limited liability company
Original Principal Amount of:    $11,000,000.00
Pay to the order of SREOF II Holdings, LLC, a Delaware limited liability company, without representation, warranty or recourse.
IN WITNESS WHEREOF, the undersigned Assignor has executed this Allonge to Promissory Note Secured by Real Property on September 30, 2015.

ASSIGNOR:
OASIS INDIAN BEND LLC,
a Delaware limited liability company

By:    IMH Financial Corporation,
a Delaware corporation
Its:    Sole Member and Manager

By:    DO NOT SIGN        
Name:    
Its:            
                    

EXHIBIT D
FORM OF ASSIGNMENT OF DEED OF TRUST
Recording Requested By:
First American Title Insurance Company

When recorded, return to:
Mayer Brown LLP
71 South Wacker Drive
Chicago, Illinois 60606
Attention:  Brian E. Davis, Esq
	
					
	 
	 
	 
	 
	 

(Space above line for recorder’s use only)

ASSIGNMENT OF DEED OF TRUST

THIS ASSIGNMENT OF DEED OF TRUST (this “Assignment”) is made and entered into as of the 30th day of September, 2015, by and between OASIS INDIAN BEND LLC, a Delaware limited liability company (“Assignor”), and SREOF II Holdings, LLC, a Delaware limited liability company (“Assignee”).

WHEREAS, Assignee made a loan to NAUOASIS, LLC, a Texas limited liability company (“Borrower”) in the principal amount of $11,000,000 (the “Loan”), evidenced by that certain Promissory Note Secured by Real Property dated effective July 23, 2015 (the “Note”), secured by, among other collateral, that certain Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated July 23, 2015, made by and among Borrower, as Trustor, Assignor, as Beneficiary, and Clifton M. Dugas, II, as Trustee, recorded as Instrument Number 2015088972 in the Official Records of Fort Bend County, Texas (the “Deed of Trust”), concerning the property described on Exhibit A attached hereto (the “Property”).

NOW, THEREFORE, in consideration of the foregoing and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor does hereby sell, assign, grant, transfer, set over and convey to Assignee, its successors and assigns, all of Assignor’s right, title, and interest in and to the Deed of Trust, without recourse, representation, or warranty except as otherwise set forth in that certain Loan Purchase Agreement dated of even date herewith between Assignor and Assignee.

Together with the Note and other obligations described in said Deed of Trust and secured thereby, and all of Assignor’s right, title, and interest therein; to have and to hold the same unto Assignee, its successors and assigns, forever.

This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

[Signature and acknowledgment on following page]
    

IN WITNESS WHEREOF, and intending to be legally bound, Assignor has executed this Assignment as of the 30th day of September, 2015.

ASSIGNOR:
OASIS INDIAN BEND LLC,
a Delaware limited liability company

By:    IMH Financial Corporation, a Delaware corporation
Its:    Sole Member and Manager

By:    DO NOT SIGN            
Lawrence D. Bain
Its:    Chairman and CEO

STATE OF ARIZONA    )
) ss.
COUNTY OF MARICOPA    )

On September 30, 2015, personally appeared before me, a Notary Public, LAWRENCE D. BAIN, the Chairman and CEO of IMH Financial Corporation, the sole member and manager of OASIS INDIAN BEND LLC, a Delaware limited liability company, to me to be the persons whose names is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the entity, upon behalf of which the person acted, executed the instrument.

WITNESS my hand and official seal.

    
                    
Signature:
                        
Official Seal:

EXHIBIT A TO ASSIGNMENT OF DEED OF TRUST
PROPERTY LEGAL DESCRIPTION

EXHIBIT E
ASSIGNMENT OF LOAN DOCUMENTS AND INTERESTS
This ASSIGNMENT OF LOAN DOCUMENTS AND INTERESTS (this “Assignment”) is made effective as of September 30, 2015, by and between OASIS INDIAN BEND LLC, a Delaware limited liability company (“Assignor”), and SREOF II Holdings, LLC, a Delaware limited liability company (“Assignee”).

WHEREAS, Assignor is the holder of a loan (the “Loan”) to NAUOASIS, LLC, a Texas limited liability company (“Borrower”), evidenced by that certain Promissory Note Secured by Real Property dated effective July 23, 2015, between Assignor as Lender and Borrower, in the principal amount of $11,000,000 (the “Note”).

WHEREAS, pursuant to that certain Loan Purchase Agreement dated of even date herewith between Assignor as Seller and Assignee as Purchaser (the “Loan Purchase Agreement”), Assignor is selling, and Assignee is purchasing, all of Assignor’s right, title, and interest in and to the Loan, the Loan Documents and Servicing Files (all as defined in the Loan Purchase Agreement).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

		
	1.
	Assignment.  Assignor hereby assigns, transfers, and sets over to Assignee, without recourse, all of Assignor’s right, title, and interest in, to and under the Loan, the Loan Documents and Servicing Files (the “Loan Documents and Interests”).

		
	2.
	Representations, Warranties, and Disclaimer.  Assignor hereby assigns the Loan Documents and Interests AS-IS, WHERE-IS, and WITH ALL FAULTS, and without representations, express or implied, of any type, kind, character or nature, except the express representations of Assignor set forth in the Loan Purchase Agreement.

		
	3.
	Jurisdiction.  The laws of the State of Texas shall govern the validity, interpretation, construction, and performance of this Assignment.

		
	4.
	Other Terms and Documents.  All of the terms of Section 7 of the Loan Purchase Agreement are expressly incorporated into this Assignment.  Assignor and Assignee, without further consideration, agree to execute such other documents and perform such other acts as may be reasonably necessary or proper to effectuate this Assignment.  

		
	5.
	Assignee’s Assumption.  Assignee accepts and assumes all of the Loan Documents and Interests, subject to the terms and conditions contained in this Assignment, and all obligations and liabilities arising out of or relating to any of the Loan Documents and Interests accruing on and after the date hereof.

[Signatures on following page]

    

IN WITNESS WHEREOF, the undersigned has executed this Assignment of Loan Documents and Interests, effective as of the date first above mentioned.

	
		
	ASSIGNOR:
	ASSIGNEE:

	 
	 

	OASIS INDIAN BEND LLC,
a Delaware limited liability company

By:IMH Financial Corporation,
a Delaware corporation
Its:Sole Member and Manager

By:DO NOT SIGN
Lawrence D. Bain
Its:Chairman and CEO 
	SREOF II Holdings, LLC,
a Delaware limited liability company

By:DO NOT SIGN
Name:
Its:

SCHEDULE 2.7

		
	1.
	Outstanding Principal Balance:    $11,000,000 

		
	2.
	Amount of any unfunded loan commitment:    None

		
	3.
	Amount of any deposits, reserve balances or letters of credit held by or on behalf of Seller (and, to the extent that there are multiple reserve accounts or sub-accounts, the balance of each): None.

		
	4.
	Last payment amount received by Seller and the date of such payment: $108,493.20 received on 9/3/2015.

		
	5.
	Interest Rate:  9.0%

		
	6.
	Maturity Date:        January 23, 2017

		
	7.
	Defaults under the Loan by Borrower or any Guarantor:    Pursuant to Section 2.24 of the Deed of Trust, Borrower was to provide Lender executed subordination agreements from all tenants no later than September 23, 2015; Borrower has failed to provide those executed subordination agreements.  Pursuant to Section 2.27 of the Deed of Trust, Borrower must obtain Lender’s written consent before entering into any Material Lease, as defined therein.  Borrower entered into a Commercial Lease Agreement dated August 10, 2015, by and between NAUOASIS, LLC and North American University without final approval.

		
	8.
	Defaults by the lender under the Loan  (including those alleged by Borrower):    None 

		
	9.
	Amount of any hedge and swap obligations of the Seller:    None

SCHEDULE 2.8
LOAN DOCUMENTS

		
	1.
	Note

		
	2.
	Deed of Trust

		
	3.
	Non-Recourse Guaranty

		
	4.
	Unconditional Guaranty

		
	5.
	Statutory Durable Power of Attorney from Fatma Kalkan to Fercan E. KalkaEX-10.1

 Exhibit 10.1 

CONTRIBUTION AGREEMENT 

dated as of November 11, 2015 

and 
 effective as of
October 1, 2015 
 by and among 

SHELL PIPELINE COMPANY LP, 

SHELL MIDSTREAM PARTNERS, L.P. 

and 
 SHELL MIDSTREAM
OPERATING LLC 
  
  

 TABLE OF CONTENTS 

 

					
	 ARTICLE I DEFINITIONS
	  	 	1	  
		
	 Section 1.1 Definitions
	  	 	1	  
		
	 Section 1.2 Construction
	  	 	9	  
		
	 ARTICLE II CONVEYANCE AND CLOSING
	  	 	9	  
		
	 Section 2.1 Conveyance
	  	 	9	  
		
	 Section 2.2 Consideration
	  	 	9	  
		
	 Section 2.3 Closing
	  	 	9	  
		
	 Section 2.4 Purchase Price Adjustment
	  	 	11	  
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF SPLC
	  	 	11	  
		
	 Section 3.1 Organization
	  	 	11	  
		
	 Section 3.2 Authority and Approval
	  	 	11	  
		
	 Section 3.3 No Conflict; Consents
	  	 	12	  
		
	 Section 3.4 Capitalization; Title to Subject Interests
	  	 	13	  
		
	 Section 3.5 Financial Information; Undisclosed Liabilities
	  	 	13	  
		
	 Section 3.6 Title to Pecten Properties; Condition of Assets
	  	 	14	  
		
	 Section 3.7 Litigation; Laws and Regulations
	  	 	14	  
		
	 Section 3.8 No Adverse Changes
	  	 	15	  
		
	 Section 3.9 Taxes
	  	 	15	  
		
	 Section 3.10 Licenses; Permits
	  	 	15	  
		
	 Section 3.11 Material Contracts
	  	 	16	  
		
	 Section 3.12 Employees
	  	 	17	  
		
	 Section 3.13 Transactions with Affiliates
	  	 	17	  
		
	 Section 3.14 Insurance
	  	 	17	  
		
	 Section 3.15 Intellectual Property Rights
	  	 	17	  
		
	 Section 3.16 Brokerage Arrangements
	  	 	18	  
		
	 Section 3.17 Books and Records
	  	 	18	  
		
	 Section 3.18 Regulatory Matters
	  	 	18	  
		
	 Section 3.19 Management Projections and Budget
	  	 	18	  
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING
	  	 	19	  
		
	 Section 4.1 Organization and Existence
	  	 	19	  
		
	 Section 4.2 Authority and Approval
	  	 	19	  
		
	 Section 4.3 Validly Issued General Partner Units
	  	 	20	  
		
	 Section 4.4 No Conflict; Consents
	  	 	20	  
		
	 Section 4.5 Brokerage Arrangements
	  	 	20	  
		
	 Section 4.6 Litigation
	  	 	21	  
		
	 Section 4.7 Investment Intent
	  	 	21	  

					
		
	 ARTICLE V ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS
	  	 	21	  
		
	 Section 5.1 Operation of Business
	  	 	21	  
		
	 Section 5.2 Cooperation; Further Assurances
	  	 	23	  
		
	 ARTICLE VI TAX MATTERS
	  	 	23	  
		
	 Section 6.1 Liability for Taxes
	  	 	23	  
		
	 Section 6.2 Pecten Tax Returns
	  	 	24	  
		
	 Section 6.3 Transfer Taxes
	  	 	24	  
		
	 Section 6.4 Allocation of Consideration
	  	 	25	  
		
	 Section 6.5 Conflict
	  	 	25	  
		
	 ARTICLE VII CONDITIONS TO CLOSING
	  	 	25	  
		
	 Section 7.1 Conditions to the Obligations of SHLX
	  	 	25	  
		
	 Section 7.2 Conditions to the Obligations of SPLC
	  	 	26	  
		
	 ARTICLE VIII INDEMNIFICATION
	  	 	27	  
		
	 Section 8.1 Indemnification of SHLX
	  	 	27	  
		
	 Section 8.2 Indemnification of SPLC
	  	 	27	  
		
	 Section 8.3 Environmental Indemnification
	  	 	28	  
		
	 Section 8.4 Survival
	  	 	29	  
		
	 Section 8.5 Indemnification Procedures
	  	 	29	  
		
	 Section 8.6 Direct Claim
	  	 	30	  
		
	 Section 8.7 Limitations on Indemnification
	  	 	31	  
		
	 Section 8.8 Sole Remedy
	  	 	31	  
		
	 ARTICLE IX MISCELLANEOUS
	  	 	32	  
		
	 Section 9.1 Acknowledgements
	  	 	32	  
		
	 Section 9.2 Cooperation; Further Assurances
	  	 	32	  
		
	 Section 9.3 Expenses
	  	 	32	  
		
	 Section 9.4 Notices
	  	 	32	  
		
	 Section 9.5 Arbitration
	  	 	33	  
		
	 Section 9.6 Governing Law
	  	 	34	  
		
	 Section 9.7 Public Statements
	  	 	34	  
		
	 Section 9.8 Entire Agreement; Amendments and Waivers
	  	 	35	  
		
	 Section 9.9 Conflicting Provisions
	  	 	35	  
		
	 Section 9.10 Binding Effect and Assignment
	  	 	35	  
		
	 Section 9.11 Severability
	  	 	35	  

					
		
	 Section 9.12 Interpretation
	  	 	36	  
		
	 Section 9.13 Headings and Disclosure Letter
	  	 	36	  
		
	 Section 9.14 Multiple Counterparts
	  	 	36	  
		
	 Section 9.15 Action by SHLX
	  	 	36	  

 CONTRIBUTION AGREEMENT 

This Contribution Agreement (this “Agreement”) is made as of November 11, 2015 and effective as of October 1, 2015, by and among
Shell Pipeline Company LP, a Delaware limited partnership (“SPLC”), Shell Midstream Partners, L.P., a Delaware limited partnership (“SHLX”) and Shell Midstream Operating LLC, a Delaware limited liability company
that is wholly owned by SHLX (“Operating”). 
 RECITALS 

WHEREAS, SPLC owns 100% of the issued and outstanding membership interests in Pecten Midstream LLC, a Delaware limited liability company
(“Pecten”); and 
 WHEREAS, SPLC desires to contribute to SHLX or its designee, and SHLX desires to accept and acquire or to cause its
designee to accept and acquire 100% of the issued and outstanding membership interests in Pecten (the “Subject Interests”) in accordance with the terms of this Agreement (the “Transaction”); and 

WHEREAS, (a) the Conflicts Committee (the “Conflicts Committee”) of the Board of Directors (the “Board of Directors”)
of Shell Midstream Partners GP LLC, the general partner of SHLX (the “General Partner”), has previously (i) received an opinion of Evercore Group L.L.C., the financial advisor to the Conflicts Committee (the “Financial
Advisor”), that the consideration to be distributed by SHLX pursuant to the Transaction is fair, from a financial point of view, to SHLX and its unitholders, other than the General Partner, Shell Midstream LP Holdings LLC and their
respective affiliates and (ii) based on the belief of the members of the Conflicts Committee that the consummation of the Transaction on the terms and conditions set forth in this Agreement would be not adverse to the best interests of the
Partnership Group (as defined in the First Amended and Restated Agreement of Limited Partnership of SHLX dated as of November 3, 2014 (the “Partnership Agreement”)), unanimously approved the Transaction, such approval
constituted “Special Approval” for purposes of the Partnership Agreement, and unanimously recommended that the Board of Directors approve the Transaction and (b) subsequently, the Board of Directors has approved the Transaction. 

NOW, THEREFORE, in consideration of the premises and the respective representations, warranties, covenants, agreements and conditions contained herein, the
parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS  
 Section 1.1
Definitions. 
 The respective terms defined in this Section 1.1 shall, when used in this Agreement, have the respective meanings
specified herein, with each such definition equally applicable to both singular and plural forms of the terms so defined: 

  
 1 

 “Affiliate,” means, with respect to any Person, any other Person that directly or indirectly
Controls, is Controlled by or is under common Control with such Person; provided that such term when used (a) with respect to SPLC, means any other Person that directly or indirectly Controls, is Controlled by or is under common Control with
SPLC, excluding SHLX, the General Partner, Operating and its subsidiaries and equity interests and (b) with respect to SHLX, the term “Affiliate” shall mean only the General Partner and Operating. No Person shall be deemed an
Affiliate of any Person solely by reason of the exercise or existence of rights, interests or remedies under this Agreement. 
 “Agreement”
has the meaning ascribed to such term in the preamble. 
 “Applicable Law” has the meaning ascribed to such term in
Section 3.3(a). 
 “Assets” means all of the assets owned as of the Closing Date by Pecten, including the Auger Pipeline System
and the Lockport Terminal. 
 “Assignment Agreement” means the Assignment Agreement between SPLC, Shell Pipeline GP LLC, Shell Midstream LP
Holdings LLC, the General Partner, SHLX and Operating dated as of the Closing Date. 
 “Auger Pipeline System” means the 174-mile pipeline
that transports medium sour crude oil and is connected to the Ship Shoal 22-inch sour crude pipeline, which runs to Gibson Terminal and the associated 20-inch pipeline, which runs to St. James Terminal, and all appurtenant facilities and equipment.

 “Board of Directors” has the meaning ascribed to such term in the recitals. 

“Business Day” means any day except a Saturday, a Sunday and any day in which in Houston, Texas, United States shall be a legal holiday or a
day on which banking institutions are authorized or required by law or other government action to close. 
 “Cash Consideration” has the
meaning ascribed to such term in Section 2.2. 
 “Ceiling Amount” has the meaning ascribed to such term in
Section 8.7(a). 
 “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act. 

“Closing” has the meaning ascribed to such term in Section 2.3(a). 

“Closing Date” means the date on which the Closing occurs. 

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

“Common Units” means common units representing limited partner interests in SHLX. 

“Conflicts Committee” has the meaning ascribed to such term in the recitals. 

  
 2 

 “Consideration” means Three Hundred Ninety Million Dollars ($390,000,000). 

“Control” and its derivatives mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 “Damages” means any losses, damages,
liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including court costs and reasonable attorneys’ and expert’s fees) of any and every kind or character, known or unknown, fixed or
contingent. 
 “Deductible Amount” has the meaning ascribed to such term in Section 8.7(a). 

“Delaware LLC Act” means the Delaware Limited Liability Company Act, as amended. 

“Direct Claim” has the meaning ascribed to such term in Section 8.6. 

“Disclosure Letter” has the meaning ascribed to such term in Article III. 

“Dispute” has the meaning ascribed to such term in Section 9.5(a). 

“Effective Time” means 12:01 a.m., Central Standard Time, on October 1, 2015. 

“Environmental Laws” means, without limitation, the following laws, each as amended or enacted from time to time: (a) the Resource
Conservation and Recovery Act; (b) the Clean Air Act; (c) CERCLA; (d) the Federal Water Pollution Control Act; (e) the Safe Drinking Water Act; (f) the Toxic Substances Control Act; (g) the Emergency Planning and
Community Right-to-Know Act; (h) the National Environmental Policy Act; (i) the Pollution Prevention Act of 1990; (j) the Oil Pollution Act of 1990; (k) the Hazardous Materials Transportation Act; (l) the Federal
Insecticide, Fungicide and Rodenticide Act; (m) all laws, statutes, rules, regulations, orders, judgments, decrees promulgated or issued with respect to the foregoing Environmental Laws by Governmental Authorities with jurisdiction in the
premises; and (n) any other federal, state or local statutes, laws, common laws, ordinances, rules, regulations, orders, codes, decisions, injunctions or decrees that regulate or otherwise pertain to the protection of the environment,
including, but not limited to, the management, control, discharge, emission, exposure, treatment, containment, handling, removal, use, generation, permitting, migration, storage, release, transportation, disposal, remediation, manufacture,
processing or distribution of Hazardous Materials that are or may present a threat to human health or the environment. 
 “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended. 
 “FERC” has the meaning ascribed to such term in Section 3.18.

 “Financial Advisor” has the meaning ascribed to such term in the recitals. 

“GAAP” means generally accepted accounting principles in the United States of America. 

“General Partner” has the meaning ascribed to such term in the recitals. 

  
 3 

 “General Partner Subject Interests” has the meaning ascribed to such term in
Section 2.1(a). 
 “General Partner Unit Quantity” means that number of General Partner Units that, when added to the number of
General Partner Units owned by the General Partner immediately prior to Closing of the Transaction, causes the percentage interest of the General Partner to be 2%, after taking into account as outstanding the Common Units issued, or to be issued,
pursuant to the Offering (excluding Common Units that are or may be issued upon exercise of the over-allotment option granted by SHLX to the underwriters in connection with the Offering, except to the extent such Common Units are issued on the
Closing Date). 
 “General Partner Unit Value” means a dollar amount equal to (a) the General Partner Unit Quantity multiplied by
(b) the price at which the Common Units are sold to the public in the Offering. 
 “General Partner Units” means general
partner units representing general partner interests in SHLX. 
 “Governmental Authority” means any federal, state, municipal or
other government, governmental court, department, commission, board, bureau, agency or instrumentality, whether foreign or domestic. 
 “Hazardous
Materials” means (a) any substance, whether solid, liquid or gaseous, that (i) is listed, defined or regulated as a “hazardous material,” “hazardous waste,” “solid waste,” “hazardous
substance,” “toxic substance,” “pollutant” or “contaminant,” or words of similar meaning or import found in any applicable Environmental Law or (ii) is or contains asbestos, polychlorinated biphenyls, radon,
urea formaldehyde foam insulation, explosives, or radioactive materials; (b) any petroleum, petroleum hydrocarbons, petroleum substances, petroleum or petrochemical products, refined petroleum products, natural gas, crude oil and any
components, fractions, or derivatives thereof, any oil or gas exploration or production waste, and any natural gas, synthetic gas and any mixtures thereof; (c) naturally occurring radioactive material, radioactive material, waste and
pollutants, radiation, radionuclides and their progeny, or nuclear waste including used nuclear fuel; or (d) any substance, whether solid, liquid or gaseous, that causes or poses a threat to cause contamination or nuisance on any properties, or
any adjacent property or a hazard to the environment or to the health or safety of persons on or about any properties. 
 “HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “Indebtedness for Borrowed Money” means, with respect to any
Person, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or
services or any other similar obligation upon which interest charges are customarily paid (excluding trade accounts payable incurred in the ordinary course of business), (e) all Indebtedness for Borrowed Money of others secured by (or for which
the holder of such Indebtedness for Borrowed Money has an existing right, contingent 

  
 4 

 
or otherwise, to be secured by) any encumbrance on property owned or acquired by such Person, whether or not the Indebtedness for Borrowed Money secured thereby has been assumed, (f) all
assurances by such Person of Indebtedness for Borrowed Money of others, (g) all capital lease obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and
letters of guaranty and (i) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. 
 “Intellectual
Property” means all intellectual or industrial property and rights therein, however denominated, throughout the world, whether or not registered, including all patent applications, patents, trademarks, service marks, trade styles or dress,
mask works, copyrights (including copyrights in computer programs, software, computer code, documentation, drawings, specifications and data), works of authorship, moral rights of authorship, rights in designs, trade secrets, technology, inventions,
invention disclosures, discoveries, improvements, know-how, proprietary rights, formulae, processes, methods, technical and business information, and confidential and proprietary information, and all other intellectual and industrial property
rights, whether or not subject to statutory registration or protection and, with respect to each of the foregoing, all registrations and applications for registration, renewals, extensions, continuations, reexaminations, reissues, divisionals,
improvements, modifications, derivative works, goodwill, and common law rights, and causes of action relating to any of the foregoing. 

“Interstate Commerce Act” means the version of the Interstate Commerce Act under which FERC regulates oil pipelines, 49 U.S.C. app.
§§ 1, et seq. (1988), and the regulations promulgated by the FERC thereunder. 
 “Knowledge,” as used in this Agreement with
respect to a party hereof, means the actual knowledge of that party’s designated personnel after due inquiry. The designated personnel for SPLC and SHLX are set forth on Appendix A. 

“Lien” means any mortgage, deed of trust, lien, security interest, pledge, conditional sales contract, charge or encumbrance. 

“Lockport Storm Water Project” means the storm water project at the Lockport Terminal, which will improve the existing drainage system at the
Lockport Terminal to eliminate the crossing of storm water between the Lockport Terminal and the Chevron Refinery properties. This project will create a stand-along internal storm water drainage system at the Lockport Terminal, independent from the
Chevron Refinery properties. 
 “Lockport Tank Repair Project” means the API 653 inspection and tank repair project of tank 19624 located
at the Lockport Terminal, which will cover the installation of a new welded steel bottom, a new thick film internal liner, and a new internal floating roof seal. 

“Lockport Terminal” means the approximately 128-acre terminal facility located in Lockport, Illinois that is held by Pecten and which, as of
the Closing Date, has 16 tanks with a nominal capacity of approximately 2.0 million barrels of crude oil. 
 “Material Contract” has
the meaning ascribed to such term in Section 3.11(a). 

  
 5 

 “Minimum Claim Amount” has the meaning ascribed to such term in Section 8.7(a). 

“New General Partner Units” has the meaning ascribed to such term in Section 2.2. 

“Notice” has the meaning ascribed to such term in Section 9.4. 

“Offering” means a firm commitment underwritten public offering of Common Units registered under the Securities Act of 1933, as amended,
effected by SHLX contemporaneously with or immediately prior to Closing. 
 “Omnibus Agreement” means that certain Omnibus Agreement
between SPLC, SHLX, the General Partner, Operating and Shell Oil Company, dated as of November 3, 2014. 
 “Operating” has the meaning
ascribed to such term in the preamble. 
 “Operating Agreement” means the Operating and Administrative Management Agreement between Shell
Pipeline Company LP and Pecten Midstream LLC, dated and made effective on October 1, 2015. 
 “OCSLA” has the meaning ascribed to such
term in Section 3.18. 
 “Partnership Agreement” has the meaning ascribed to such term in the recitals. 

“Pecten” has the meaning ascribed to such term in the recitals. 

“Pecten Financial Statements” has the meaning ascribed to such term in Section 3.5(a). 

“Pecten LLC Agreement” means the Limited Liability Company Agreement of Pecten Midstream LLC, effective as of October 1, 2015. 

“Pecten Permits” has the meaning ascribed to such term in Section 3.10(a). 

“Permitted Liens” means all: (a) mechanics’, materialmen’s, repairmen’s, employees’ contractors’
operators’, carriers’, workmen’s or other like Liens or charges arising by operation of law, in the ordinary course of business or incident to the construction or improvement of any of the Assets, in each case, for amounts not yet
delinquent (including any amounts being withheld as provided by law); (b) Liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business;
(c) immaterial defects and irregularities in title, encumbrances, exceptions and other matters that, singularly or in the aggregate, will not materially interfere with the ownership, use, value, operation or maintenance of the Assets to which
they pertain or SPLC’s ability to perform its obligations hereunder with respect thereto; (d) Liens for Taxes that are not yet due and payable; (e) pipeline, utility and similar easements and other rights in respect of surface
operations; (f) Liens supporting surety bonds, performance bonds and similar obligations issued in connection with the Assets; (g) all rights to consent, by required notices to, filings with, or other actions by Governmental Authorities or
third parties in connection with the sale or conveyance of easements, rights of way, licenses, facilities or interests therein if they are customarily obtained subsequent to the sale or conveyance; and (h) all Liens and interests described on
Section 1.1 of the Disclosure Letter. 

  
 6 

 “Person” means an individual or entity, including any partnership, corporation, association,
trust, limited liability company, joint venture, unincorporated organization or other entity. 
 “Rules” has the meaning ascribed to such
term in Section 9.5(a). 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder. 
 “SHLX” has the meaning ascribed to such term in the preamble. 

“SHLX Closing Certificate” has the meaning ascribed to such term in Section 7.2(a). 

“SHLX Indemnified Parties” has the meaning ascribed to such term in Section 8.1. 

“SHLX Lockport Storm Water Project Costs and Expenses” means the amount of direct, out-of-pocket costs and expenses incurred by Pecten from
and after the Effective Time for the execution of the Lockport Storm Water Project. Notwithstanding the foregoing, the term “SHLX Lockport Storm Water Project Costs and Expenses” shall exclude consequential damages and business
interruption losses; provided that such exclusion shall in no way limit any of SHLX’s rights to pursuant to Section 8.7(c). 

“SHLX Lockport Tank Repair Project Costs and Expenses” means the amount of direct, out-of-pocket costs and expenses incurred by Pecten from
and after the Effective Time for the execution of the Lockport Tank Repair Project. Notwithstanding the foregoing, the term “SHLX Lockport Tank Repair Project Costs and Expenses” shall exclude consequential damages and business
interruption losses; provided that such exclusion shall in no way limit any of SHLX’s rights to pursuant to Section 8.7(c). 

“SHLX Material Adverse Effect” means a material adverse effect on or a material adverse change in the ability of SHLX to perform its
obligations under this Agreement and the other Transaction Documents or to consummate the transactions contemplated hereby or thereby. 

“SPLC” has the meaning ascribed to such term in the preamble. 

“SPLC Closing Certificate” has the meaning ascribed to such term in Section 7.1(a). 

“SPLC Indemnified Parties” has the meaning ascribed to such term in Section 8.2. 

“SPLC Material Adverse Effect” means a material adverse effect on or a material adverse change in (a) the value of the Assets, or the
business, operations or financial condition of Pecten, taken as a whole, other than any effect or change (i) that impacts the offshore crude oil transportation or onshore crude storage industry generally (including any change in the prices of
crude oil or other hydrocarbon products, industry margins or any regulatory changes or changes in Applicable Law or GAAP), (ii) in United States or global political or economic conditions or financial markets in general, or (iii) resulting
from the announcement of the transactions 

  
 7 

 
contemplated by this Agreement and the taking of any actions contemplated by this Agreement, provided, that in the case of clauses (i) and (ii), the impact on the Assets or the business,
operations or financial condition of Pecten is not materially disproportionate to the impact on similarly situated assets or businesses in the offshore crude oil transportation or onshore crude storage industry, or (b) the ability of SPLC to
perform its obligations under this Agreement and the other Transaction Documents to which SPLC is a party or to consummate the transactions contemplated hereby or thereby. 

“Subject Interests” has the meaning ascribed to such term in the recitals. 

“Tax” means any and all U.S. federal, state, local or foreign net income, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, capital stock, profits, margin, license, license fee, environmental, customs duty, unclaimed property or escheat payments, alternative fuels, mercantile, lease, service, withholding, payroll, employment, unemployment, social security,
disability, excise, severance, registration, stamp, occupation, premium, property (real or personal), windfall profits, fuel, value added, alternative or add on minimum, estimated or other similar taxes, duties, levies, customs, tariffs, imposts or
assessments (including public utility commission property tax assessments) imposed by any Governmental Authority, together with any interest, penalties or additions thereto payable to any Governmental Authority in respect thereof or any liability
for the payment of any amounts of any of the foregoing types as a result of being a member of an affiliated, consolidated, combined or unitary group, or being a party to any agreement or arrangement whereby liability for payment of such amounts was
determined or taken into account with reference to the liability of any other Person. 
 “Tax Return” means any return, declaration,
report, statement, election, claim for refund or other written document, together with all attachments, amendments and supplements thereto, filed with or provided to, or required to be filed with or provided to, a Governmental Authority in respect
of Taxes. 
 “Taxing Authority” means, with respect to any Tax, the Governmental Authority that imposes such Tax, and the agency (if any)
charged with the collection of such Tax for such entity or subdivision, including any governmental or quasi-governmental entity or agency that imposes, or is charged with collecting, social security or similar charges or premiums. 

“Transaction” means (a) the contribution and transfer of the Subject Interests and (b) the distribution of the Consideration. 

“Transaction Documents” means this Agreement, the Assignment Agreement and any other documents of conveyance or other related documents
contemplated to be entered into in connection with this Agreement and the transactions contemplated hereby with respect to which SPLC and SHLX or Operating are parties. For the avoidance of doubt, “Transaction Documents” shall not include
any documents entered into in connection with the contribution and transfer of the Assets to Pecten from SPLC and Equilon Enterprises LLC (d/b/a Shell Oil Products US). 

“Transfer Tax” has the meaning ascribed to such term in Section 6.3. 

“Tribunal” has the meaning ascribed to such term in Section 9.5(b). 

  
 8 

 Section 1.2 Construction. 

In constructing this Agreement: (a) the word “includes” and its derivatives means “includes, without limitation” and corresponding
derivative expressions; (b) the currency amounts referred to herein, unless otherwise specified, are in United States dollars; (c) whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business
Days are specified; (d) unless otherwise specified, all references in this Agreement to “Article,” “Section,” “Disclosure Letter,” “Exhibit,” “preamble” or “recitals” shall be
references to an Article, Section, Disclosure Letter, Exhibit, preamble or recitals hereto; and (e) whenever the context requires, the words used in this Agreement shall include the masculine, feminine and neuter and singular and the plural.

 ARTICLE II 

CONVEYANCE AND CLOSING  

Section 2.1 Conveyance. 
 Upon the terms and
subject to the conditions set forth in this Agreement and in the other Transaction Documents at the Closing: 
 (a) SPLC shall contribute,
transfer, assign, and convey (i) a percentage of the Subject Interests equal to the quotient of the General Partner Unit Value divided by the Consideration (the “General Partner Subject Interests”) to the General Partner and
(ii) the remaining Subject Interests to Operating; 
 (b) SPLC shall cause the General Partner to contribute, transfer, assign, and
convey the General Partner Subject Interests to Operating; and 
 (c) Operating, in its capacity as designee of SHLX, shall accept and
acquire all of the Subject Interests from SPLC and the General Partner, 
 in each case free and clear of all Liens (other than restrictions under
applicable federal and state securities laws). 
 Section 2.2 Consideration. 

The aggregate amount of consideration for the Subject Interests to be distributed by SHLX shall be the Consideration, which shall consist of (i) a cash
distribution to SPLC equal to the Consideration minus the General Partner Unit Value (the “Cash Consideration”) and (ii) an issuance of a number of General Partner Units equal to the General Partner Unit Quantity (the
“New General Partner Units”) to the General Partner. 
 Section 2.3 Closing. 

(a) The closing of the Transaction (the “Closing”) shall take place as provided in this Section 2.3, but the
Transaction, including the transfer to SHLX of the risk of loss and reward relating to the Subject Interests and the underlying Assets, shall be effective as of the Effective Time. The Closing will be held at the offices of SPLC at 910 Louisiana
Street, Houston, Texas 77002 on November 17, 2015, commencing at 9:00 a.m., Houston time, or such other place, date and time as may be mutually agreed upon by the parties hereto. 

  
 9 

 (b) At the Closing, SHLX or its designee shall deliver, or cause to be delivered, the following:

  

	 	(i)	to SPLC or its designee(s), the Cash Consideration by wire transfer in immediately available funds; 

  

	 	(ii)	to SPLC, the Assignment Agreement duly executed by SHLX and the General Partner; 

  

	 	(iii)	to the General Partner, the New General Partner Units issued in book-entry form; 

  

	 	(iv)	to SPLC, a certificate of good standing of recent date of SHLX; 

  

	 	(v)	to SPLC, the SHLX Closing Certificate; and 

  

	 	(vi)	such other certificates, instruments of conveyance and documents as may be reasonably requested by SPLC at least two (2) Business Days prior to the Closing Date to carry out the intent and purposes of this
Agreement. 

 (c) At the Closing, Operating or its designee shall deliver, or cause to be delivered, the following: 

 

	 	(i)	to SPLC, the Assignment Agreement duly executed by Operating; and 

  

	 	(ii)	a duly executed counterpart to an amendment to the Pecten LLC Agreement, which shall include an updated Exhibit reflecting the transfer of the Subject Interests pursuant to this Agreement. 

(d) At the Closing, SPLC or its designee shall deliver, or cause to be delivered, to SHLX and Operating, the following: 

 

	 	(i)	the Assignment Agreement duly executed by SPLC and any of its Affiliates party thereto; 

  

	 	(ii)	a certificate of good standing of recent date of each of SPLC and Pecten; 

  

	 	(iii)	foreign qualification certificates of recent date of Pecten; 

  

	 	(iv)	the SPLC Closing Certificate; and 

  

	 	(v)	such other certificates, instruments of conveyance and documents as may be reasonably requested by SHLX at least two (2) Business Days prior to the Closing Date to carry out the intent and purposes of this
Agreement. 

  
 10 

 Section 2.4 Purchase Price Adjustment. 

(a) The parties agree that (i) SHLX intends to cause SPLC, as “Operator” under the Operating Agreement, to undertake the
Lockport Storm Water Project and (ii) SPLC shall pay to SHLX an amount equal to any SHLX Lockport Storm Water Project Costs and Expenses within 30 days after SHLX provides notice in writing to SPLC specifying the nature of and specific basis
for such SHLX Lockport Storm Water Project Costs and Expenses. 
 (b) The parties agree that (i) SHLX intends to cause SPLC, as
“Operator” under the Operating Agreement, to undertake the Lockport Tank Repair Project and (ii) SPLC shall pay to SHLX an amount equal to any SHLX Lockport Tank Repair Project Costs and Expenses within 30 days after SHLX provides
notice in writing to SPLC specifying the nature of and specific basis for such SHLX Lockport Tank Repair Project Costs and Expenses. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF SPLC 

SPLC hereby represents and warrants to SHLX that, except as disclosed in the disclosure letter delivered to SHLX on the date of this Agreement
(“Disclosure Letter”) (it being understood that any information set forth on any section of the Disclosure Letter shall be deemed to apply to and qualify all sections or subsections of this Agreement to the extent that it is
reasonably apparent on its face that such information is relevant to such other sections or subsections): 
 Section 3.1 Organization.

 (a) SPLC is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited partnership power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(b) Pecten is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited liability company power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. Pecten is duly licensed or qualified to do business and is in good standing in the states
in which the character of the properties and assets owned or held by it or the nature of the business conducted by it requires it to be so licensed or qualified, except where the failure to be so qualified or in good standing would not, individually
or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect. SPLC has made available to SHLX true and complete copies of the organizational documents of Pecten as in effect as of the date of this Agreement. 

Section 3.2 Authority and Approval. 

(a) SPLC has full limited partnership power and authority to execute and deliver this Agreement and the other Transaction Documents to which
SPLC is a party, to consummate the transactions contemplated hereby and thereby and to perform all of the obligations hereof and 

  
 11 

 
thereof to be performed by it. The execution and delivery by SPLC of this Agreement and the other Transaction Documents to which SPLC is a party, the consummation of the transactions contemplated
hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SPLC have been duly authorized and approved by all requisite limited partnership action on the part of SPLC. 

(b) This Agreement has been duly executed and delivered by SPLC and constitutes the valid and legally binding obligation of SPLC, enforceable
against it in accordance with its terms and, upon the execution of the other Transaction Documents to which SPLC is a party, such other Transaction Documents will be duly executed and delivered by or on behalf of SPLC and constitute the valid and
legally binding obligation of SPLC, enforceable against SPLC in accordance with their terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws
affecting the enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity). 

Section 3.3 No Conflict; Consents. 
 Except as
set forth on Section 3.3 of the Disclosure Letter: 
 (a) The execution, delivery and performance of this Agreement and the other
Transaction Documents to which SPLC is a party by SPLC does not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the transactions contemplated hereby and thereby will not, (i) violate,
conflict with, result in any breach of, or require the consent of any Person under, any of the terms, conditions or provisions of the certificate of formation or limited partnership agreement or other organizational documents of SPLC or Pecten;
(ii) conflict with or violate any provision of any law or administrative rule or regulation or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to SPLC or Pecten (“Applicable
Law”); (iii) conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or require any consent,
authorization or approval under, or result in the suspension, termination or cancellation of, or in a right of suspension, termination or cancellation of, any indenture, mortgage, agreement, contract, commitment, right of way, license, concession,
permit, lease, joint venture or other instrument to which SPLC or Pecten is a party or by which either of them or any of the Assets are bound; or (iv) result in the creation of any Lien (other than Permitted Liens) on any of the Assets or on
the Subject Interests under any such indenture, mortgage, agreement, contract, commitment, right of way, license, concession, permit, lease, joint venture or other instrument, except in the case of clauses (ii), (iii) and (iv) for those
items which, individually or in the aggregate, would not reasonably be expected to have a SPLC Material Adverse Effect or result in any material liability or obligation of SHLX or Operating (other than any liability or obligation hereunder); and

 (b) No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is required to be obtained
or made by SPLC or Pecten with respect to the Subject Interests or the Assets in connection with the execution, delivery and performance of this Agreement and the other Transaction Documents to which SPLC or Pecten is a party or the consummation of
the transactions contemplated hereby or thereby, except (i) as have been 

  
 12 

 
waived or obtained or with respect to which the time for asserting such right has expired or (ii) for those which individually or in the aggregate would not reasonably be expected to have a
SPLC Material Adverse Effect (including such consents, approvals, licenses, permits, orders or authorizations that are not customarily obtained prior to the Closing and are reasonably expected to be obtained in the ordinary course of business
following the Closing). 
 Section 3.4 Capitalization; Title to Subject Interests. 

(a) SPLC owns, beneficially and of record, the Subject Interests and will convey good title, free and clear of all Liens, to the Subject
Interests to SHLX or its designee. Except (i) as expressly provided for in the Pecten LLC Agreement, (ii) for the contribution of the Subject Interests contemplated by this Agreement; and (iii) for restrictions under applicable
federal and state securities laws, the Subject Interests are not subject to any agreements or understandings with respect to their voting or transfer, stockholders agreement, pledge agreement, buy-sell agreement, right of first refusal, preemptive
right or proxy arrangement. The Subject Interests have been duly authorized and are validly issued and fully paid and nonassessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC Act). 

(b) There are (i) no authorized or outstanding subscriptions, warrants, options, convertible securities or other rights (contingent or
otherwise) to purchase or otherwise acquire from Pecten any equity interests of or in Pecten, (ii) no commitments on the part of Pecten to issue membership interests, shares, subscriptions, warrants, options, convertible securities or other
similar rights, and (iii) no equity securities of Pecten reserved for issuance for any such purpose. Pecten has no obligation (contingent or other) to purchase, redeem or otherwise acquire any of its equity securities or interests. Except as
expressly provided in the Pecten LLC Agreement and in this Agreement, there is no voting trust or agreement, stockholders agreement, pledge agreement, buy-sell agreement, right of first refusal, preemptive right or proxy relating to any equity
securities of Pecten. Pecten owns no equity interests in any other Person. 
 Section 3.5 Financial Information; Undisclosed Liabilities.

 (a) SPLC has provided to SHLX a true and complete copy of the audited financial statements as of December 31, 2014 of Pecten on a
consolidated basis (the “Pecten Financial Statements”). The Pecten Financial Statements present fairly in all material respects the financial position of Pecten as of the date thereof. There are no material off balance sheet
arrangements of Pecten. The Pecten Financial Statements have been prepared in accordance with GAAP consistently applied throughout the periods presented. 

(b) Except as set forth on Section 3.5(b) of the Disclosure Letter, there are no liabilities or obligations of Pecten of any nature
(whether known or unknown and whether accrued, absolute, contingent or otherwise) and there are no facts or circumstances that would reasonably be expected to result in any such liabilities or obligations, whether arising in the context of federal,
state or local judicial, regulatory, administrative or permitting agency proceedings, other than (i) liabilities or obligations reflected or reserved against in the Pecten Financial Statements, (ii) current liabilities incurred in the
ordinary course of business since December 31, 2014, and (iii) liabilities or obligations (whether known or unknown and whether accrued, absolute, contingent or otherwise) that are not material. 

  
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 Section 3.6 Title to Pecten Properties; Condition of Assets. 

(a) Pecten has (i) good and marketable fee simple title to the owned real property used or held for use by Pecten for use, ownership, and
operation of the Assets in the same manner that they were used, owned, and operated by SPLC immediately prior to the Effective Time, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(a) of the Disclosure
Letter), (ii) a valid, binding and enforceable leasehold interest in each of the leased properties used or held for use by Pecten for use, ownership, and operation of the Assets in the same manner that they were used, owned, and operated by
SPLC immediately prior to the Effective Time, free and clear of any Liens (other than Permitted Liens or as set forth on Section 3.6(a) of the Disclosure Letter), and (iii) valid, binding, and enforceable rights of way necessary or
required for the ownership and operation of the Assets in the same manner that they were used, owned, and operated by SPLC immediately prior to the Effective Time, free and clear of any Liens (other than Permitted Liens or as set forth on
Section 3.6(a) of the Disclosure Letter). 
 (b) Except as set forth on Section 3.6(b) of the Disclosure Letter: 

(i) the Assets are (x) in good operating condition and repair (normal wear and tear excepted), (y) free from any
material defects (other than Permitted Liens) and (z) suitable for the purposes for which they are currently used; 

(ii) none of the Assets is in need of maintenance or repairs except for ordinary, routine maintenance and except for regularly
scheduled overhauls from time to time; and 
 (iii) Pecten has good and valid title to the Assets (including the Auger
Pipeline System and the Lockport Terminal but excluding the real property interests that are the subject of Section 3.6(a)), free and clear of Liens (other than Permitted Liens). 

Section 3.7 Litigation; Laws and Regulations. 

Except as set forth on Section 3.7 of the Disclosure Letter: 

(a) there are no (i) civil, criminal or administrative actions, suits, claims, hearings, arbitrations or proceedings pending or, to
SPLC’s Knowledge, threatened against Pecten, (ii) judgments, orders, decrees or injunctions of any Governmental Authority, whether at law or in equity, against Pecten or (iii) pending or, to SPLC’s Knowledge, threatened
investigations by any Governmental Authority against Pecten, except in each case, for those items that would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect. 

(b) Pecten is not in violation of or in default under any Applicable Law, except as would not, individually or in the aggregate, reasonably be
expected to have a SPLC Material Adverse Effect. 

  
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 Section 3.8 No Adverse Changes. 

Except as set forth on Section 3.8 of the Disclosure Letter: 

(a) there has not been a SPLC Material Adverse Effect; and 

(b) there has not been any damage, destruction or loss to any material portion of the Assets, whether or not covered by insurance, in excess of
One Million Dollars ($1,000,000). 
 Section 3.9 Taxes. 

(a) Except as would not reasonably be expected to have a SPLC Material Adverse Effect, (i) all Tax Returns required to be filed by or with
respect to Pecten, the Assets or the operations of Pecten have been filed on a timely basis (taking into account all extensions of due dates); (ii) all Taxes owed by Pecten, or any of its Affiliates with respect to Pecten, the Assets or the
operations of Pecten, as applicable, which are or have become due, have been timely paid, other than Taxes the amount or validity of which is being contested in good faith by appropriate proceedings for which an adequate reserve has been established
therefor; (iii) there are no Liens on any of the Assets that arose in connection with any failure (or alleged failure) to pay any Tax on Pecten or the Assets other than Liens for Taxes not yet due and payable or the amount or validity of which
is being contested in good faith by appropriate proceedings for which an adequate reserve has been established therefor; and (iv) there is no pending action, proceeding or investigation for assessment or collection of Taxes and no Tax
assessment, deficiency or adjustment has been asserted or proposed with respect to Pecten, the Assets or the operations of Pecten. 
 (b)
Effective as of July 15, 2015, Pecten has been treated as disregarded as an entity separate from SPLC for U.S. federal income tax purposes. 

Section 3.10 Licenses; Permits. 
 Except as
set forth on Section 3.10 of the Disclosure Letter: 
 (a) Pecten has all licenses, permits, certificates and authorizations
issued or granted or waived by Governmental Authorities that are necessary for the conduct of its business as now being conducted (collectively, “Pecten Permits”), except, in each case, for such items for which the failure to obtain
or have waived would not result in a SPLC Material Adverse Effect. 
 (b) All Pecten Permits are validly held by Pecten or its operator and
are in full force and effect, except as would not reasonably be expected to have a SPLC Material Adverse Effect. 
 (c) Pecten has complied
with all terms and conditions of the Pecten Permits, except as would not reasonably be expected to have a SPLC Material Adverse Effect. 

(d) There is no outstanding written notice, nor, to the Knowledge of SPLC, any other notice of revocation, cancellation or termination of any
Pecten Permit, except, in each case, as would not, individually or in the aggregate, reasonably be expected to have a SPLC Material Adverse Effect. 

  
 15 

 (e) No proceeding is pending or, to the Knowledge of SPLC, threatened with respect to any alleged
failure by Pecten to have any material Pecten Permit necessary for the operation of any of the Assets or the conduct of Pecten’s business. 

Section 3.11 Material Contracts. 

(a) Section 3.11(a) of the Disclosure Letter contains a true and complete listing of the following contracts and other agreements
to which Pecten as of the date of this Agreement is a party or to which the Assets are subject (each such contract or agreement, along with all amendments and supplements thereto, being referred to herein as a “Material Contract”):

 (i) contracts, agreements and instruments representing Indebtedness for Borrowed Money and all guarantees thereof; 

(ii) contracts containing covenants limiting the freedom of Pecten to engage in any line of business or compete with any Person
or operate at any location; 
 (iii) price swaps, hedges, futures or similar instruments; 

(iv) contracts to which Pecten, on the one hand, and an Affiliate of Pecten, on the other hand, is a party or is otherwise
bound; 
 (v) contracts containing any preferential rights to purchase or similar rights relating to any Assets; 

(vi) joint venture or partnership agreements, including any agreement or commitment to make any loan or capital contribution to
any joint venture or partnership; 
 (vii) contracts relating to the acquisition or disposition by Pecten of any business
(whether by acquisition or disposition of equity interests or assets) pursuant to which Pecten has or will have any remaining material obligation or liability or benefit; 

(viii) contracts or agreements which, individually, require or entitle Pecten to make or receive payments of at least Five
Hundred Thousand Dollars ($500,000) annually, provided that the calculation of the aggregate payments for any such agreement or contract shall not include payments attributable to any renewal periods or extensions for which Pecten may exercise a
renewal or extension option in its sole discretion; 
 (ix) contracts relating to the storage, transportation, treating,
sale, or purchase of hydrocarbons, or the provision of services related thereto; and 
 (x) licenses relating to Intellectual
Property (whether as licensee or licensor) other than licenses with respect to software used or accessed by Pecten under a “shrink wrap,” “click wrap,” or “off the shelf” software license that is generally commercially
available on standard terms. 

  
 16 

 (b) Subject to regulatory requirements of which SHLX has been informed, SPLC has made available
to SHLX a correct and complete copy of each Material Contract listed on Section 3.11(a) of the Disclosure Letter.  
 (c) Except
as would not reasonably be expected to result in a SPLC Material Adverse Effect or as disclosed on Section 3.11(c) of the Disclosure Letter: (i) each Material Contract is legal, valid and binding on and enforceable against Pecten
and, to the Knowledge of SPLC, each other party to such Material Contract, and in full force and effect; (ii) each Material Contract will continue to be legal, valid and binding on and enforceable against Pecten and, to the Knowledge of SPLC,
each other party to such Material Contract, and in full force and effect on identical terms following the consummation of the transactions contemplated by this Agreement; (iii) Pecten is not in breach or default, and no event has occurred which
with notice or lapse of time would constitute a breach or default by Pecten, or permit termination, modification or acceleration, under any Material Contract; and (iv) to SPLC’s Knowledge, no other party to any Material Contract is in
breach or default, and no event has occurred which with notice or lapse of time would constitute a breach or default by such other party, or permit termination, modification or acceleration, under any Material Contract other than in accordance with
its terms, nor has any other party repudiated any provision of any Material Contract. 
 Section 3.12 Employees. 

Pecten does not have, and has not had, any employees nor has it maintained or contributed to, and is not subject to any liability in respect of, any employee
benefit or welfare plan of any nature, including plans subject to ERISA. 
 Section 3.13 Transactions with Affiliates. 

Except as otherwise contemplated in this Agreement, Pecten is not and was not as of the Effective Time, a party to any agreement, contract or arrangement with
any of its Affiliates, other than those disclosed on Section 3.11(a) of the Disclosure Letter. 
 Section 3.14 Insurance.

 Section 3.14 of the Disclosure Letter sets forth a list of the material insurance policies that Pecten holds or SPLC holds with respect to
Pecten, the Subject Interests or the Assets, whether Pecten or SPLC is the beneficiary. Such policies are in full force and effect, and all premiums due and payable under such policies have been paid, Pecten has received no written notice of any
pending or threatened termination of, or indication of an intention not to renew, such policies. 
 Section 3.15 Intellectual Property
Rights. 
 Pecten owns or has the right to use all Intellectual Property necessary for or used in the conduct of its business as currently conducted
by it, and, to SPLC’s Knowledge, its products and services do not infringe upon, misappropriate or otherwise violate any Intellectual Property of any third party. All Intellectual Property owned by Pecten if any, is free and clear of any Liens
(other than Permitted Liens). Neither the execution and delivery of this Agreement or the other Transaction Documents, nor the consummation of the transactions contemplated hereby or thereby will, with

  
 17 

 
or without notice or lapse of time, result in, or give any other Person the right or option to cause or declare, a breach or termination of, or cancellation or reduction in, rights of Pecten
under any contract providing for the license of any Intellectual Property to Pecten, except for any such terminations, cancellations or reductions that, individually or in the aggregate, would not have a SPLC Material Adverse Effect. There is no
Intellectual Property-related action, suit, proceeding, hearing, investigation, notice or complaint pending or, to SPLC’s Knowledge, threatened by any third party before any court or tribunal (including, without limitation, the United States
Patent and Trademark Office or equivalent authority anywhere in the world) relating to Pecten or its operations, nor has any claim or demand been made by any third party that alleges any infringement, misappropriation or violation of any
Intellectual Property of any third party, or unfair competition or trade practices by Pecten. Except as would not result in a SPLC Material Adverse Effect, Pecten has taken reasonable measures to protect the confidentiality of all material trade
secrets. 
 Section 3.16 Brokerage Arrangements. 

SPLC has not entered (directly or indirectly) into any agreement with any Person that would obligate SPLC or any of its Affiliates or Pecten, to pay any
commission, brokerage or “finder’s fee” or other similar fee in connection with this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby. 

Section 3.17 Books and Records. 
 Accurate
copies of all books of account, minute books and stock or other equity record books of Pecten and all books and records maintained by, or made available to, SPLC with respect to the Assets and the Subject Interests have been made available for
inspection to SHLX. 
 Section 3.18 Regulatory Matters. 

Since October 1, 2014, Pecten and the Auger Pipeline System have not been subject to the jurisdiction of, or regulation by, the Federal Energy Regulatory
Commission (“FERC”) under the Interstate Commerce Act. No approval or consent by any federal or state regulatory authority is required in connection with the execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby, except to the extent that any failure to obtain such approval, either individually or in the aggregate, would not reasonably be expected to have a SPLC Material Adverse Effect. Since October 1, 2014 through the
Effective Time, the Auger Pipeline System was operated by SPLC in compliance with the nondiscriminatory open access transportation requirements under the Outer Continental Shelf Lands Act, as amended (“OCSLA”). Since the Effective
Time, Pecten or SPLC, on behalf of Pecten as “Operator” under the Operating Agreement, has operated the Auger Pipeline System in compliance with the nondiscriminatory open access transportation requirements under the OCSLA. 

Section 3.19 Management Projections and Budget. 

The projections and budgets regarding Pecten identified on Section 3.19 of the Disclosure Letter, which were provided to SHLX (including those
provided to the Financial Advisor) by SPLC and its Affiliates as part of SHLX’s review in connection with this Agreement, were prepared based upon assumptions that SPLC’s management believed to be reasonable as of the dates thereof and
were consistent with SPLC’s management’s reasonable expectations at the time they were prepared. 

  
 18 

 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF SHLX AND OPERATING 

SHLX and Operating hereby jointly and severally represent and warrant to SPLC as follows: 

Section 4.1 Organization and Existence. 

(a) SHLX is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and has all
requisite limited partnership power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

(b) Operating is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has
all requisite limited liability company power and authority to own, operate and lease its properties and assets and to carry on its business as now conducted. 

Section 4.2 Authority and Approval. 

(a) Each of SHLX and Operating has full limited partnership power and authority or full limited liability company power and authority, as
applicable, to execute and deliver this Agreement, to consummate the transactions contemplated hereby and to perform all of the obligations hereof to be performed by it. The execution and delivery of this Agreement and the other Transaction
Documents to which SHLX or Operating is a party, the consummation of the transactions contemplated hereby and thereby and the performance of all of the obligations hereof and thereof to be performed by SHLX and Operating have been duly authorized
and approved by all requisite limited partnership or limited liability company action of SHLX and Operating, as applicable. 
 (b) This
Agreement has been duly executed and delivered by or on behalf of SHLX and Operating, and constitutes the valid and legally binding obligation of SHLX and Operating, enforceable against SHLX and Operating in accordance with its terms and, upon the
execution of the other Transaction Documents to which SHLX or Operating is a party, such other Transaction Documents will be duly executed and delivered by or on behalf of SHLX and Operating and constitute the valid and legally binding obligation of
SHLX and Operating, enforceable against SHLX and Operating in accordance with their terms, except in each case as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other
similar laws affecting the enforcement of creditors’ rights and remedies generally and by general principles of equity (whether applied in a proceeding at law or in equity). 

  
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 Section 4.3 Validly Issued General Partner Units. 

Upon issuance in connection with the Closing, the New General Partner Units will be validly issued, fully paid (to the extent required under the Partnership
Agreement) and free of any preemptive or similar rights. 
 Section 4.4 No Conflict; Consents. 

(a) The execution, delivery and performance of this Agreement and the other Transaction Documents to which SHLX or Operating is a party by SHLX
and Operating does not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the transactions contemplated hereby and thereby will not, (i) violate, conflict with, result in any breach of,
or require the consent of any Person under, any of the terms, conditions or provisions of the certificate of limited partnership or limited partnership agreement of SHLX or the certificate of formation or limited liability company agreement of
Operating; (ii) conflict with or violate any provision of any law or administrative rule or regulation or any judicial, administrative or arbitration order, award, judgment, writ, injunction or decree applicable to SHLX, Operating or any
property or asset of SHLX or Operating; (iii) conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both), or accelerate or permit the acceleration of the performance required by, or
require any consent, authorization or approval under, any indenture, mortgage, agreement, contract, commitment, license, concession, permit, right of way, lease, joint venture or other instrument to which SHLX or Operating is a party or by which it
is bound or to which any of its property is subject, except in the case of clauses (ii) and (iii) for those items which, individually or in the aggregate, would not reasonably be expected to affect the ability of either SHLX or Operating
to perform its obligations under this Agreement and the other Transaction Documents to which SHLX or Operating is a party or to consummate the transactions contemplated hereby or thereby. 

(b) No consent, approval, license, permit, order or authorization of any Governmental Authority or other Person is required to be obtained or
made by or with respect to SHLX or Operating in connection with the execution, delivery, and performance of this Agreement or the other Transaction Documents to which SHLX or Operating is a party or the consummation of the transactions contemplated
hereby and thereby, except (i) as have been waived or obtained or with respect to which the time for asserting such right has expired or (ii) for those which individually or in the aggregate would not reasonably be expected to affect the
ability of either SHLX or Operating to perform its obligations under this Agreement and the other Transaction Documents to which SHLX or Operating is a party or to consummate the transactions contemplated hereby or thereby (including such consents,
approvals, licenses, permits, orders or authorizations that are not customarily obtained prior to the Closing and are reasonably expected to be obtained in the ordinary course of business following the Closing). 

Section 4.5 Brokerage Arrangements. 
 Neither
SHLX nor Operating has entered (directly or indirectly) into any agreement with any Person that would obligate SHLX. Operating or any of their respective Affiliates to pay any commission, brokerage or “finder’s fee” or other similar
fee in connection with this Agreement or the other Transaction Documents or the transactions contemplated hereby or thereby. 

  
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 Section 4.6 Litigation. 

There are no civil, criminal or administrative actions, suits, claims, hearings, arbitrations, investigations or proceedings pending or, or to SHLX’s
Knowledge, threatened that (a) question or involve the validity or enforceability of any of SHLX’s or Operating’s obligations under this Agreement or (b) seek (or reasonably might be expected to seek) (i) to prevent or delay
the consummation by SHLX or Operating of the transactions contemplated by this Agreement or (ii) damages in connection with any such consummation. 

Section 4.7 Investment Intent. 
 Operating is
accepting the Subject Interests for its own account with the present intention of holding the Subject Interests for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the
Securities Act or state securities laws. SHLX and Operating acknowledge that the Subject Interests will not be registered under the Securities Act or any applicable state securities law, and that such Subject Interests may not be transferred or sold
except pursuant to the registration provisions of the Securities Act or pursuant to an applicable exemption therefrom and pursuant to state securities laws and regulations as applicable. 

ARTICLE V 
 ADDITIONAL
AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS 
 Section 5.1 Operation of Business. 

(a) Except as provided by this Agreement or as consented to by SHLX, during the period from the date of this Agreement through the Closing
Date, SPLC shall cause Pecten to: 
  

	 	(i)	conduct its business and operations in the usual and ordinary course thereof; and 

  

	 	(ii)	preserve, maintain and protect the assets and operations of Pecten related thereto as are now being conducted. 

(b) Except (A) as provided by this Agreement, (B) as set forth on Section 5.1(b) of the Disclosure Letter or (C) as
consented by SHLX, during the period from the date of this Agreement through the Closing Date, SPLC shall not permit Pecten to: 
  

	 	(i)	amend its organizational documents; 

  

	 	(ii)	liquidate, dissolve, recapitalize or otherwise wind up its business; 

  

	 	(i)	make any material change in any method of accounting or accounting principles, practices or policies other than those required by GAAP or Applicable Law; 

 

	 	(ii)	make, amend or revoke any material election with respect to Taxes; 

  
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	 	(iii)	other than in the ordinary course of business, enter into any contract or agreement that would be a Material Contract if entered into prior to the date of this Agreement, terminate any Material Contract or amend any
Material Contract in any material respect; 

  

	 	(iv)	purchase or otherwise acquire (including by lease) any asset or business of, or any equity interest in, any Person other than in the ordinary course of business; 

 

	 	(v)	sell, lease, abandon or otherwise dispose of any asset other than in the ordinary course of business; 

  

	 	(vi)	take any action, refrain from taking any action, or enter into any agreement or contract that would result in the imposition of any Lien (other than Permitted Liens) on any assets; 

 

	 	(vii)	file any material lawsuit; 

  

	 	(viii)	cancel, compromise, waive, release or settle any right, claim or lawsuit other than immaterial rights and claims in the ordinary course of business consistent with past practice; 

 

	 	(ix)	undertake any capital project, other than as set forth on Section 5.1(b) of the Disclosure Letter; 

  

	 	(x)	merge, consolidate or enter into any other business combination with any Person; 

  

	 	(xi)	make any loan to any Person (other than extensions of credit to customers in the ordinary course of business and intercompany loans under SPLC’s cash management system in accordance with past practice;

  

	 	(xii)	issue or sell any equity interests, notes, bonds or other securities, or any option, warrant or right to acquire the same or incur, assume or guarantee any indebtedness for borrowed money; 

 

	 	(xiii)	make any distribution with respect to its equity interests or redeem, purchase, or otherwise acquire any of its equity interests; 

  

	 	(xiv)	fail to maintain in full force and effect its current insurance policies covering Pecten, the Assets and Pecten’s business; 

  

	 	(xv)	acquire, commence or conduct any activity or business that may generate income for United States federal income tax purposes that may not be “qualifying income” (as such term is defined pursuant to
Section 7704 of the Code), except to the extent such activity or business is being conducted on the date of this Agreement; 

  
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	 	(xvi) 	take any action that would reasonably be expected to result in any representation and warranty of SPLC set forth in this Agreement becoming untrue in any material respect; or 

 

	 	(xvii) 	agree, whether in writing or otherwise, to do any of the foregoing. 

 Section 5.2 Cooperation;
Further Assurances. 
 SPLC and SHLX shall use their respective commercially reasonable efforts (a) to obtain all approvals and consents
required by or necessary for the transactions contemplated by this Agreement, including, if required, any approvals and consents required by the HSR Act, and (b) to ensure that all of the conditions to the respective obligations of such parties
contained in Section 7.1 and Section 7.2, respectively, are satisfied timely; provided, however, that nothing in this Agreement will require any party hereto to hold separate, or make any divestiture not expressly
contemplated herein of, any asset or otherwise agree to any restriction on its operations or other burdensome condition which would in any such case be material to its assets, liabilities or business in order to obtain any consent or approval or
other clearance required by this Agreement. 
 ARTICLE VI 

TAX MATTERS  
 Section 6.1
Liability for Taxes. 
 (a) SPLC shall be liable for, and shall indemnify, defend and hold harmless SHLX and Operating from any
unpaid Taxes (including related penalties and interest) imposed on or incurred by or with respect to the Subject Interests or the assets related to the Subject Interests, attributable to any taxable period ending on or prior to the Closing Date or
portion thereof to the extent occurring on or prior to the Closing Date. 
 (b) SHLX and Operating shall be liable for any Taxes (including
related penalties and interest) imposed on or incurred by or with respect to the Subject Interests or the assets related to the Subject Interests attributable to any taxable period beginning after the Closing Date or portion thereof to the extent
occurring after the Closing Date. 
 (c) Whenever it is necessary for purposes of this Article VI to determine the amount of any Taxes
imposed on or incurred by or with respect to the Subject Interests or the assets related to the Subject Interests for a taxable period beginning before and ending after the Closing Date which is allocable to the period ending on or prior to the
Closing Date, the portion of such Taxes that relate to the pre-closing period (a) in the case of any property, ad valorem, or similar Taxes, shall be deemed to be the amount of such Tax for the entire Tax period multiplied by a fraction, the
numerator of which is the number of days in the Tax period ending on (and including) the Closing Date and the denominator of which is the number of days in the entire Tax period, and (b) in the case of all other Taxes, shall be deemed equal to
the amount which would be payable as computed on a “closing-of-the-books” basis if the relevant Tax period ended at the close of business on the Closing Date. 

  
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 (d) If SHLX receives a refund of any Taxes (including related penalties and interest) that SPLC
is responsible for hereunder, or if SPLC receives a refund of any income taxes (including related penalties and interest) that SHLX is responsible for hereunder, the party receiving such refund shall, within ninety (90) days after receipt of
such refund, remit it to the party which has responsibility for such Taxes hereunder. The parties shall cooperate in order to take all necessary and reasonable steps to claim any such refund. 

(e) For federal income tax purposes, the parties agree to report any payments with respect to Section 2.4, Section 6.1,
Section 8.1 and Section 8.2 as an adjustment to the Consideration. 
 Section 6.2 Pecten Tax Returns. 

(a) With respect to any Tax Return attributable to a taxable period ending on or before the Closing Date that is required to be filed either
before or after the Closing Date with respect to Pecten or the Assets, SPLC shall cause such Tax Return to be prepared, cause to be included in such Tax Return all items of income, gain, loss, deduction and credit required to be included therein,
cause such Tax Return to be filed timely with the appropriate Taxing Authority, and be responsible for the timely payment (and entitled to any refund) of all Taxes due with respect to such Tax Return. 

(b) With respect to any Tax Return attributable to a taxable period beginning on or before the Closing Date and ending after the Closing Date
that is required to be filed after the Closing Date with respect to Pecten or the Assets, SHLX shall cause such Tax Return to be prepared, cause to be included in such Tax Return all items of income, gain, loss, deduction and credit required to be
included therein, furnish a copy of such Tax Return to SPLC, cause such Tax Return to be filed timely with the appropriate Taxing Authority, and be responsible for the timely payment of (and entitled to any refund for) all Taxes due with respect to
such Tax Return (but shall have a right to recover from SPLC the amount of Taxes attributable to the portion of the taxable period covered by such Tax Return ending on or prior to the Closing Date pursuant to Section 6.1(a)). 

(c) With regard to any Tax Return not yet filed for any taxable period that begins before the Closing Date with respect to Pecten or the
Assets, the parties shall cause each such Tax Return to be prepared in accordance with past Tax accounting practices used with respect to the Tax Returns in question (unless such past practices are no longer permissible under the Applicable Law),
and to the extent any items are not covered by past practices, in accordance with reasonable tax accounting practices selected by the filing party with respect to such Tax Return under this Agreement with the consent (not to be unreasonably withheld
or delayed) of the non-filing party. 
 Section 6.3 Transfer Taxes. 

Any transfer, documentary, sales, use, stamp, registration and other similar Taxes and/or fees arising out of or in connection with the transactions effected
pursuant to this Agreement (each such Tax or fee, a “Transfer Tax”) shall be borne by the party to on whom such obligation is primarily imposed by Applicable Law; provided, however, that SHLX shall bear any Transfer Tax for which
SHLX is jointly and severally liable, and for which no other party is primarily liable, under Applicable Law. The party responsible for a Transfer Tax pursuant to this Section 6.3 

  
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shall file all necessary Tax Returns and other documentation with respect to such Transfer Taxes. If required by Applicable Law, SPLC and SHLX shall, and shall cause their respective Affiliates
to, join in the execution of any such Tax Returns and other documentation. The parties shall cooperate to establish eligibility for any applicable exemption from any Transfer Tax. 

Section 6.4 Allocation of Consideration. 
 The
parties will use commercially reasonable efforts to agree upon an allocation of the Consideration to the Subject Interests and further among the Assets for U.S. federal income tax purposes in compliance with the principles of Section 1060 of
the Code, and the Treasury Regulations thereunder. 
 Section 6.5 Conflict. 

In the event of a conflict between the provisions of this Article VI and any other provisions of this Agreement, the provisions of this Article
VI shall control. 
 ARTICLE VII 

CONDITIONS TO CLOSING  

Section 7.1 Conditions to the Obligations of SHLX. 

The obligation of SHLX to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the Closing Date of all of the following
conditions, any one or more of which may be waived, in whole or in part, by SHLX: 
 (a) The representations and warranties of SPLC set forth
in this Agreement shall be true and correct (without giving effect to any materiality standard or SPLC Material Adverse Effect qualification, except with respect to Section 3.8(a)) as of the date of this Agreement and on the Closing Date
as if made on such date, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct (without giving effect to any materiality standard or SPLC Material Adverse
Effect qualification, except with respect to Section 3.8(a)) as of such specified date, except, in each case, to the extent that failure of such representations and warranties to be true and correct would not, individually or in the
aggregate, result in a SPLC Material Adverse Effect. SPLC shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by it by the time of the Closing. SPLC
shall have delivered to SHLX a certificate, dated as of the Closing Date and signed by an authorized officer of SPLC, confirming the foregoing matters set forth in this Section 7.1(a) (the “SPLC Closing Certificate”).

 (b) All necessary filings with and consents, approvals, licenses, permits, orders and authorizations of any Governmental Authority
required for the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act, if applicable) shall have been made and obtained, and all waiting periods with respect to filings made with Governmental
Authorities in contemplation of the consummation of the transactions described herein shall have expired or been terminated. 

  
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 (c) All necessary consents of any Person not a party hereto, other than any Governmental
Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained, including any consents set forth on Section 7.1(c) of the Disclosure Letter. 

(d) No statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction, judgment or other
order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of the transactions contemplated hereby shall be in effect, and no
investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or seeking to restrain or prohibit the consummation of the transactions contemplated hereby or to recover damages in connection
herewith. 
 (e) Since the date of this Agreement, there shall not have occurred a SPLC Material Adverse Effect. 

(f) SPLC or its designee shall have delivered, or caused to be delivered, to SHLX all of the documents, certificates and other instruments
required to be delivered under, and otherwise complied with the provisions of, Section 2.3(d). 
 Section 7.2 Conditions to the
Obligations of SPLC. 
 The obligation of SPLC to proceed with the Closing contemplated hereby is subject to the satisfaction on or prior to the
Closing Date all of the following conditions, any one or more of which may be waived in writing, in whole or in part, by SPLC: 
 (a) The
representations and warranties of SHLX set forth in this Agreement shall be true and correct (without giving effect to any materiality standard or SHLX Material Adverse Effect qualification) as of the date of this Agreement and on the Closing Date
as if made on such date, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct (without giving effect to any materiality standard or SHLX Material Adverse
Effect qualification) as of such specified date, except, in each case, to the extent that failure of such representations and warranties to be true and correct would not, individually or in the aggregate, result in a SHLX Material Adverse Effect.
SHLX shall have performed or complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by it by the time of the Closing. SHLX shall have delivered to SPLC a certificate, dated as
of the Closing Date and signed by an authorized officer of SHLX or its general partner confirming the foregoing matters set forth in this Section 7.2(a) (the “SHLX Closing Certificate”). 

(b) All necessary filings with and consents, approvals, licenses, permits, orders and authorizations of any Governmental Authority required for
the consummation of the transactions contemplated in this Agreement (including any required by the HSR Act) shall have been made and obtained, and all waiting periods with respect to filings made with Governmental Authorities in contemplation of the
consummation of the transactions described herein shall have expired or been terminated. 

  
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 (c) All necessary consents of any Person not a party hereto, other than any Governmental
Authority, required for the consummation of the transactions contemplated in this Agreement shall have been made and obtained. 
 (d) No
statute, rule, regulation, executive order, decree, temporary restraining order, preliminary or permanent injunction, judgment or other order shall have been enacted, entered, promulgated, enforced or issued by any Governmental Authority, or other
legal restraint or prohibition preventing the consummation of the transactions contemplated hereby shall be in effect, and no investigation, action or proceeding before a Governmental Authority shall have been instituted or threatened challenging or
seeking to restrain or prohibit the consummation of the transactions contemplated hereby or to recover damages in connection herewith. 
 (e)
Since the date of this Agreement, there shall not have occurred a SHLX Material Adverse Effect. 
 (f) SHLX and Operating shall have
delivered, or caused to be delivered, to SPLC all of the documents, certificates and other instruments required to be delivered under, and otherwise complied with the provisions of, Section 2.3(b) and Section 2.3(c). 

ARTICLE VIII 

INDEMNIFICATION  

Section 8.1 Indemnification of SHLX. 
 Subject
to the limitations set forth in this Agreement, SPLC shall indemnify, defend and hold SHLX, its subsidiaries and their respective security holders, directors, officers, and employees, and the officers, directors and employees of the General Partner,
but otherwise excluding SPLC and its Affiliates (the “SHLX Indemnified Parties”), harmless from and against any and all Damages suffered or incurred by any SHLX Indemnified Party as a result of or arising out of (a) any breach
or inaccuracy of a representation or warranty of SPLC in this Agreement and (b) any breach of any agreement or covenant on the part of SPLC made under this Agreement or in connection with the transactions contemplated hereby or thereby. Any
indemnification provided pursuant to this Agreement shall not be duplicative of any indemnification provided pursuant to the Omnibus Agreement. 

Section 8.2 Indemnification of SPLC. 
 Subject
to the limitations set forth in this Agreement, SHLX and Operating, jointly and severally, shall indemnify, defend and hold SPLC, its Affiliates (other than any of SHLX Indemnified Parties) and their respective securityholders, directors, officers,
agents, representatives and employees (the “SPLC Indemnified Parties”) harmless from and against any and all Damages suffered or incurred by the SPLC Indemnified Parties as a result of or arising out of (a) any breach or
inaccuracy of a representation or warranty of SHLX or Operating in this Agreement, or (b) any breach of any agreement or covenant on the part of SHLX or Operating made under this Agreement or in connection with the transactions contemplated
hereby or thereby. Any indemnification provided pursuant to this Agreement shall not be duplicative of any indemnification provided pursuant to the Omnibus Agreement. 

  
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 Section 8.3 Environmental Indemnification. 

(a) To the fullest extent permitted by law, SPLC shall indemnify, defend and hold harmless SHLX Indemnified Parties from and against any and
all Damages suffered or incurred by such SHLX Indemnified Party, directly or indirectly, by reason of or arising out of: 
  

	 	(i)	any violation of Environmental Laws, in effect on or prior to the Closing Date, associated with or arising from the ownership or operation of the Assets on or prior to the Closing Date; and 

 

	 	(ii)	any environmental event, condition or matter associated with or arising from the ownership or operation of the Assets occurring on or before the Closing Date (including the presence of Hazardous Substances on, under,
about or migrating to or from the Assets or the disposal or the release of Hazardous Substances generated by operation of the Assets at non-Asset locations), including (A) the cost and expense of any investigation, assessment, evaluation,
monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities or other corrective action required or necessary under Environmental Laws and (B) the cost and expense of the preparation and implementation of
any closure, remedial, corrective action or other plans required or necessary under Environmental Laws as in effect on or prior to the Closing Date. 

(b) To the fullest extent permitted by law, SHLX and Operating shall indemnify, defend and hold harmless SPLC Indemnified Parties from and
against any and all Damages suffered or incurred by such SPLC Indemnified Party, directly or indirectly, by reason of or arising out of: 
  

	 	(i)	any violation of Environmental Laws, in effect after the Closing Date, associated with or arising from the ownership or operation of the Assets after the Closing Date; 

 

	 	(ii)	any environmental event, condition or matter associated with or arising from the ownership or operation of the Assets occurring after the Closing Date (including the presence of Hazardous Substances on, under, about or
migrating to or from the Assets or the disposal or the release of Hazardous Substances generated by operation of the Assets at non-Asset locations), including (A) the cost and expense of any investigation, assessment, evaluation, monitoring,
containment, cleanup, repair, restoration, remediation, risk-based closure activities or other corrective action required or necessary under Environmental Laws and (B) the cost and expense of the preparation and implementation of any closure,
remedial, corrective action or other plans required or necessary under Environmental Laws as in effect after the Closing Date. 

  
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 (c) Any indemnification provided pursuant to this Section 8.3 shall be the exclusive
remedy with respect to environmental matters relating to the Assets and shall not be duplicative of any rights to indemnification or other recovery provided pursuant to any other provisions of this Agreement or the Omnibus Agreement. 

Section 8.4 Survival. 
 All the provisions of
this Agreement shall survive the Closing, notwithstanding any investigation at any time made by or on behalf of any party hereto, provided that (a) the representations and warranties set forth in Article III and Article IV shall
terminate and expire on the date that is eighteen (18) months following the Closing Date, except (i) the representations and warranties of SPLC set forth in Section 3.9 (Taxes) shall survive until the date that is sixty
(60) days after the expiration of the applicable statutes of limitations (including all periods of extension and tolling), (ii) the representations and warranties of SPLC set forth in Section 3.1 (Organization),
Section 3.2 (Authority and Approval), Section 3.4(a) (Capitalization; Title to Subject Interests) and Section 3.16 (Brokerage Arrangements) shall survive until the expiration of the applicable statute of
limitations, and (iii) the representations and warranties of SHLX set forth in Section 4.1 (Organization and Existence), Section 4.2 (Authority and Approval) and Section 4.5 (Brokerage Arrangements) shall
survive until the expiration of the applicable statute of limitations, (b) the indemnification obligations under Section 8.3, to the extent they relate to the Auger Pipeline System, shall terminate and expire on the third (3rd) anniversary of the Closing Date, and (c) the indemnification obligations under Section 8.3, to the extent they relate to the Lockport Terminal, shall terminate and expire on
the fourth (4th) anniversary of the Closing Date. After a representation and warranty has terminated and expired, no indemnification shall or may be sought pursuant to this Article
VIII on the basis of that representation and warranty by any Person who would have been entitled pursuant to this Article VIII to indemnification on the basis of that representation and warranty prior to its termination and expiration,
provided that in the case of each representation and warranty that shall terminate and expire as provided in this Section 8.4, no claim presented in writing for indemnification pursuant to this Article VIII on the basis of that
representation and warranty prior to its termination and expiration shall be affected in any way by that termination and expiration. The indemnification obligations under this Article VIII or elsewhere in this Agreement shall apply regardless
of whether any suit or action results solely or in part from the active, passive or concurrent negligence or strict liability of the indemnified party. The covenants and agreements entered into pursuant to this Agreement to be performed after the
Closing shall survive the Closing. 
 Section 8.5 Indemnification Procedures. 

(a) The indemnified party hereunder agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for
indemnification under this Article VIII, it will provide notice thereof in writing to the indemnifying party, specifying the nature of and specific basis for such claim. 

(b) The indemnifying party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims
brought against the indemnified party that are covered by the indemnification under this Article VIII, including the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim

  
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or any matter or any issues relating thereto; provided, however, that no such settlement for only the payment of money shall be entered into without the consent of the indemnified party, which
consent shall not be unreasonably withheld, conditioned or delayed, unless it includes a full release of the indemnified party from such claim; provided further, that no such settlement containing any form of injunctive or similar relief shall be
entered into without the prior written consent of the indemnified party, which consent shall not be unreasonably delayed or withheld. 
 (c)
The indemnified party agrees to cooperate in good faith and in a commercially reasonably manner with the indemnifying party, with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the
indemnification under this Article VIII, including the prompt furnishing to the indemnifying party of any correspondence or other notice relating thereto that the indemnified party may receive, permitting the name of the indemnified party to
be utilized in connection with such defense and counterclaims, the making available to the indemnifying party of any files, records or other information of the indemnified party that the indemnifying party considers relevant to such defense and
counterclaims, the making available to the indemnifying party of any employees of the indemnified person and the granting to the indemnifying party of reasonable access rights to the properties and facilities of the indemnified party; provided,
however, that in connection therewith the indemnifying party agrees to use reasonable efforts to minimize the impact thereof on the operations of the indemnified party and further agrees to maintain the confidentiality of all files, records, and
other information furnished by the indemnified party pursuant to this Section 8.4. The obligation of the indemnified party to cooperate with the indemnifying party as set forth in the immediately preceding sentence shall not be construed
as imposing upon the indemnified party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article VIII,
provided, however, that the indemnified party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The indemnifying party agrees to keep any such counsel hired by the indemnified
party informed as to the status of any such defense or counterclaim, but the indemnifying party shall have the right to retain sole control over such defense and counterclaims so long as the indemnified party is still seeking indemnification
hereunder. 
 (d) In determining the amount of any Damages for which the indemnified party is entitled to indemnification under this
Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the indemnified person in respect of such Damages from third party insurers, and such correlative insurance benefit shall be net of any
expenses related to the receipt of such proceeds, including any premium adjustments that become due and payable by the indemnified party as a result of such claim, and (ii) all amounts recovered by the indemnified party in respect of such
Damages under contractual indemnities from third persons. 
 Section 8.6 Direct Claim. 

Any claim by an indemnified party with respect to any Damages which do not result from a claim for indemnity involving a third party (a “Direct
Claim”) will be asserted by giving the indemnifying party reasonably prompt written notice thereof, stating the nature of such claim in reasonable detail and indicating the estimated amount, if practicable. The indemnifying party will have
a period of ninety (90) days from receipt of such Direct Claim within which to respond 

  
 30 

 
to such Direct Claim. If the indemnifying party does not respond within such ninety (90) day period, the indemnifying party will be deemed to have accepted such Direct Claim. If the
indemnifying party rejects such Direct Claim, the indemnified party will be free to seek enforcement of its rights to indemnification under this Agreement. 

Section 8.7 Limitations on Indemnification. 

(a) To the extent that SHLX Indemnified Parties would otherwise be entitled to indemnification for Damages pursuant to
Section 8.1(a), SPLC shall be liable only if (i) the Damages with respect to any individual claim exceed One Hundred Thousand Dollars ($100,000) (the “Minimum Claim Amount”) and (ii) the Damages for all claims
that exceed the Minimum Claim Amount exceed, in the aggregate, One Million Dollars ($1,000,000) (the “Deductible Amount”), and then SPLC shall be liable only for Damages to the extent of any excess over the Deductible Amount. In no
event shall SPLC’s aggregate liability to SHLX Indemnified Parties under Section 8.1 and Section 8.3 exceed 20% of the Consideration (the “Ceiling Amount”). Notwithstanding the foregoing, the Deductible
Amount and the Ceiling Amount shall not apply to breaches or inaccuracies of representations and warranties contained in Section 3.1 (Organization), Section 3.2 (Authority and Approval), Section 3.4
(Capitalization; Title to Subject Interests), Section 3.9 (Taxes), Section 3.16 (Brokerage Arrangements) and Section 3.17 (Books and Records) or breaches of the covenants in Section 2.4 (Purchase Price
Adjustment), provided, that SPLC’s aggregate liability for all claims under this Agreement, including for breaches or inaccuracies of representations and warranties contained in such sections and for breaches of covenants, shall not exceed the
Consideration. 
 (b) For purposes of determining the amount of Damages, with respect to any asserted claim for indemnification by a SHLX
Indemnified Party, such determination shall be made without regard to any qualifier as to “material,” “materiality” or SPLC Material Adverse Effect expressly contained in Article III (except in the case of the term
Material Contract); provided that this Section 8.7(b) shall not so modify the representations and warranties for purposes of first determining whether a breach of any representation or warranty has occurred. 

(c) Additionally, neither SPLC, on the one hand, nor SHLX and Operating, on the other hand, will be liable as an indemnitor under this
Agreement for any consequential, incidental, special, indirect or exemplary damages suffered or incurred by the indemnified party or parties except to the extent resulting pursuant to third party indemnity claims. 

Section 8.8 Sole Remedy. 
 No party shall have
liability under this Agreement or the transactions contemplated hereby except as is provided in Article VI or this Article VIII (other than claims or causes of action arising from fraud or willful misconduct). 

  
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 ARTICLE IX 

MISCELLANEOUS  
 Section 9.1
Acknowledgements. 
 Each party acknowledges that it has relied on the representations and warranties of the other party expressly and
specifically set forth in this Agreement, including, in the case of SHLX and Operating, the Disclosure Letter attached hereto. Such representations and warranties constitute the sole and exclusive representations and warranties of the parties hereto
in connection with the transactions contemplated hereby, and the parties hereto understand, acknowledge and agree that all other representations and warranties of any kind or nature, whether expressed, implied or statutory, oral or written, past or
present, are specifically disclaimed. 
 Section 9.2 Cooperation; Further Assurances. 

SPLC, SHLX and Operating shall use their respective commercially reasonable efforts to obtain all approvals and consents required by or necessary for the
transactions contemplated by this Agreement. Each of the parties acknowledges that certain actions may be necessary with respect to the matters and actions contemplated by this Agreement such as making notifications and obtaining consents or
approvals or other clearances that are material to the consummation of the transactions contemplated hereby, and each agrees to take all appropriate action and to do all things necessary, proper or advisable under Applicable Laws and regulations to
make effective the transactions contemplated by this Agreement; provided, however, that nothing in this Agreement will require any party hereto to hold separate or make any divestiture not expressly contemplated herein of any asset or otherwise
agree to any restriction on its operations or other burdensome condition which would in any such case be material to its assets, liabilities or business in order to obtain any consent or approval or other clearance required by this Agreement. 

Section 9.3 Expenses. 
 Except as otherwise
provided herein and regardless of whether the transactions contemplated hereby are consummated, each party shall pay its own expenses incident to this Agreement and all action taken in preparation for carrying this Agreement into effect. 

Section 9.4 Notices. 
 Any notice, request,
instruction, correspondence or other document to be given hereunder by any party hereto to another party hereto (herein collectively called “Notice”) shall be in writing and either (i) delivered in person or by courier service
requiring acknowledgment of receipt of delivery or (ii) by-email, with delivery deemed to have been duly given upon acknowledgment of receipt of e-mail, as follows: 

If to SPLC, addressed to: 
 Shell Pipeline
Company LP 
 One Shell Plaza 

910 Louisiana Street 
 Houston,
Texas 77002 
 Attn: Vice President - Operations 

With copy to: Assistant General Counsel-Downstream Americas 

Email: nora.brooks@shell.com 

  
 32 

 If to SHLX and/or Operating, addressed to: 

Shell Midstream Partners, L.P. 

c/o Shell Midstream Partners GP LLC, its general partner 

One Shell Plaza 
 910 Louisiana
Street 
 Houston, Texas 77002 

Attn: Chief Executive Officer 

With copy to: General Counsel 

Email: lori.muratta@shell.com 
 Notice given by
personal delivery or courier service shall be effective upon actual receipt. Any party may change any address to which Notice is to be given to it by giving Notice as provided above of such change of address. 

Section 9.5 Arbitration. 
 (a)
Any dispute, controversy or claim arising out of or in connection with this Agreement or its subject matter or formation, whether in tort, contract, under statute or otherwise, including any question regarding its existence, validity,
interpretation, breach or termination, and including any non-contractual claim (a “Dispute”), shall be finally and exclusively resolved by arbitration under the arbitration rules of the American Arbitration Association (the
“Rules”), which Rules are deemed to be incorporated by reference into this Agreement. 
 (b) The arbitral tribunal (the
“Tribunal”) shall consist of three arbitrators, to be appointed in accordance with the Rules. 
 (c) The seat of the
arbitration shall be Houston, Texas. 
 (d) The language of the arbitration shall be English. 

(e) Any award rendered by the Tribunal shall be made in writing and shall be final and binding on the parties to this Agreement. The parties to
this Agreement undertake to carry out the award without delay. 
 (f) All aspects of the arbitration shall be confidential. Save to the
extent required by law or pursuant to any proceedings to enforce or challenge an award, no aspect of the proceedings, documentation, or any partial or final award or order or any other matter connected with the arbitration shall be disclosed to any
other person by either party or its counsel, agents, corporate parents, affiliates or subsidiaries without the prior written consent of the other party / parties. 

(g) Nothing in this Section 9.5 shall be construed as preventing any party from seeking conservatory or similar interim relief from
any court with competent jurisdiction. 

  
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 (h) In respect of any Dispute, each party to this Agreement expressly waives any right to claim
or recover from the other party and the Tribunal is not empowered to award punitive, exemplary, moral, multiple or similar non-compensatory damages. 

(i) Articles 3 and 9 of the International Bar Association (IBA) Rules on the Taking of Evidence in International Arbitration shall apply to the
arbitration. 
 (j) Each Party hereby waives, to the fullest extent permitted by law: (i) any right under the laws of any jurisdiction
to apply to any court or other judicial authority to determine any preliminary point of law, except as expressly provided in Section 9.5(g) and/or (ii) any right it may otherwise have under the laws of any jurisdiction to appeal or
otherwise challenge the award, other than on the same grounds on which recognition and enforcement of an award may be refused under Article V of the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958.

 (k) Judgment upon any award and/or order may be entered in any court having jurisdiction thereof. 

Section 9.6 Governing Law. 

(a) This Agreement shall be subject to and governed by the laws of the State of Texas. Each Party hereby submits to the exclusive jurisdiction
of the state and federal courts in the State of Texas and to venue in the state courts in Harris County, Texas and in the federal courts of Harris County, Texas. 

(b) Each of the parties to this Agreement irrevocably waives any and all right to trial by jury in any legal proceeding between the parties
arising out of or relating to this Agreement or the transactions contemplated by this Agreement. 
 (c) Each party to this Agreement waives,
to the fullest extent permitted by Applicable Law, any right it may have to receive damages from any other party based on any theory of liability for any special, indirect, consequential (including lost profits), exemplary or punitive damages
(except to the extent that any such damages are included in indemnifiable losses resulting from a third party claim in accordance with Article VIII). 

Section 9.7 Public Statements. 
 The parties
hereto shall consult with each other and no party shall issue any public announcement or statement with respect to this Agreement or the transactions contemplated hereby without the consent of the other party, unless the party desiring to make such
announcement or statement, after seeking such consent from the other parties, obtains advice from legal counsel that a public announcement or statement is required by Applicable Law or stock exchange regulations. 

  
 34 

 Section 9.8 Entire Agreement; Amendments and Waivers. 

(a) This Agreement and the other Transaction Documents constitute the entire agreement among the parties with respect to the subject matter
hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. Each party to this Agreement agrees that no other party to this Agreement (including its agents and
representatives) has made any representation, warranty, covenant or agreement to or with such party relating to this Agreement or the transactions contemplated hereby, other than those expressly set forth herein and in the other Transaction
Documents. 
 (b) No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by each party to be
bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless otherwise
expressly provided. 
 Section 9.9 Conflicting Provisions. 

This Agreement and the other Transaction Documents, read as a whole, set forth the parties’ rights, responsibilities and liabilities with respect to the
transactions contemplated by this Agreement. In this Agreement and the other Transaction Documents, and as between them, specific provisions prevail over general provisions. In the event of a conflict between this Agreement and any of the other
Transaction Documents, this Agreement shall control. 
 Section 9.10 Binding Effect and Assignment. 

This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns, but neither this
Agreement nor any of the rights, benefits or obligations hereunder shall be assigned or transferred, by operation of law or otherwise, by any party hereto without the prior written consent of each other party; provided that SHLX and Operating may
assign their right to receive the Subject Interests hereunder to a wholly-owned subsidiary without the written consent of SPLC provided that SHLX and Operating shall not be relieved of any obligations or liabilities hereunder as a result of any such
assignment. Nothing in this Agreement, express or implied, is intended to confer upon any person or entity other than the parties hereto and their respective permitted successors and assigns, any rights, benefits or obligations hereunder, except for
express language with respect to SHLX Indemnified Parties and the SPLC Indemnified Parties contained in the indemnification provisions of Article VIII. 

Section 9.11 Severability. 
 If any provision
of this Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, SPLC and SHLX shall promptly meet and negotiate substitute provisions for those
rendered or declared illegal or unenforceable, but all of the remaining provisions of this Agreement shall remain in full force and effect. 

  
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 Section 9.12 Interpretation. 

It is expressly agreed by the parties that this Agreement shall not be construed against any party, and no consideration shall be given or presumption made, on
the basis of who drafted this Agreement or any provision hereof or who supplied the form of this Agreement. Each party agrees that this Agreement has been purposefully drawn and correctly reflects its understanding of the transactions contemplated
by this Agreement and, therefore, waives the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

 Section 9.13 Headings and Disclosure Letter. 

The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the
meaning or interpretation of this Agreement. The Disclosure Letter and the Exhibits referred to herein are attached hereto and incorporated herein by this reference, and unless the context expressly requires otherwise, the Disclosure Letter and such
Exhibits are incorporated in the definition of “Agreement.” 
 Section 9.14 Multiple Counterparts. 

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. 
 Section 9.15 Action by SHLX. 

With respect to any action, notice, consent, approval or waiver that is required to be taken or given or that may be taken or given by SHLX with respect to the
transactions contemplated hereby, such action, notice, consent, approval or waiver shall be taken or given by the Conflicts Committee on behalf of SHLX. 

[Signature page follows.] 

  
 36 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

 

			
	Shell Pipeline Company LP
	By: Shell Pipeline GP LLC, its general partner
		
	By:	 	 /s/ Kevin M. Nichols

	Name:	 	Kevin M. Nichols
	Title:	 	Vice President
	
	Shell Midstream Partners, L.P.
	By: Shell Midstream Partners GP LLC, its general partner
		
	By:	 	 /s/ John H. Hollowell

	Name:	 	John H. Hollowell
	Title:	 	President and Chief Executive Officer
	
	Shell Midstream Operating LLC
		
	By:	 	 /s/ John H. Hollowell

	Name:	 	John H. Hollowell
	Title:	 	President and Chief Executive Officer

 Signature Page to Contribution Agreement 

 Appendix A 

The designated personnel for SPLC and SHLX, for purposes of “Knowledge” in this Agreement, are set forth below. 

 

	 	1.	John Hollowell 

  

	 	2.	Kevin Nichols 

  

	 	3.	Bob Headlee 

  

	 	4.	Tom Gates 

  

	 	5.	Timothy Geiger 

 Appendix A

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