Document:

exv10w3

 

Exhibit 10.3

Execution Copy

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

BY AND AMONG

EAGLE ROCK ENERGY PARTNERS, L.P.

EAGLE ROCK ENERGY G&P, LLC

EAGLE ROCK ENERGY GP, L.P.

EAGLE ROCK PIPELINE, L.P.

EAGLE ROCK PIPELINE GP, LLC

AND

EAGLE ROCK HOLDINGS, L.P.

EFFECTIVE AS OF

OCTOBER 27, 2006

 

 

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

     This CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of October 27, 2006, is
entered into by and among EAGLE ROCK ENERGY PARTNERS, L.P., a Delaware limited partnership
(“MLP”), EAGLE ROCK ENERGY G&P, LLC, a Delaware limited liability company (“G&P”),
EAGLE ROCK ENERGY GP, L.P., a Delaware limited partnership (“GP LP”), EAGLE ROCK PIPELINE,
L.P., a Delaware limited partnership (“OLP”), EAGLE ROCK PIPELINE GP, LLC, a Delaware
limited liability company (“OLP GP”), and EAGLE ROCK HOLDINGS, L.P., a Texas limited
partnership (“Holdings”). The parties to this agreement are collectively referred to
herein as the “Parties.” Capitalized terms used herein shall have the meanings assigned to
such terms in Section 1.1.

RECITALS

     WHEREAS, GP LP and Holdings have formed MLP, pursuant to the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business
activity that is approved by GP LP and that lawfully may be conducted by a limited partnership
organized pursuant to the Delaware LP Act.

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

          1. G&P and Holdings formed GP LP, under the terms of the Delaware LP Act, to which G&P
contributed $0.01 and Holdings contributed $999.99 in exchange for a 0.001% general partner
interest and 99.999% limited partner interest, respectively.

          2. GP LP and Holdings formed MLP, under the terms of the Delaware LP Act, to which GP LP
contributed $20.00 in exchange for a 2% general partner interest and Holdings contributed $980.00
in exchange for a 98% limited partner interest (the “Holdings Initial MLP Interest”).

          3. Each of G&P, OLP and OLP GP filed the necessary certificates and documents, under the terms
of the applicable laws of the State of Texas and under the Delaware LP Act and the Delaware Limited
Liability Company Act (the “Delaware LLC Act”), pursuant to which each of G&P, OLP and OLP
GP were converted to entities organized under the State of Delaware.

          4. Certain private investors (the “March 2006 Private Investors”) contributed $98.3
million to OLP in exchange for 5,455,050 common units in OLP.

          5. Certain private investors, including Natural Gas Partners VII, L.P., (the “June 2006
Private Investors”) conveyed their ownership interests in Midstream Gas Services, L.P., a
Delaware limited partnership (“MGS”), to OLP and Eagle Rock Energy Services, L.P.
(“Services”) in exchange for an aggregate 1,125,416 common units in OLP and $4.47 million

 

 

from Services, and MGS GP, L.L.C. sold its 1% general partner interest in MGS to Services in
exchange for $0.25 million.

          6. Services distributed its 1% general partner interest in MGS to OLP GP, and OLP GP was
admitted as the general partner of MGS.

          7. Eagle Rock Midstream Resources, L.P., a Texas limited partnership (“Midstream”),
was dissolved and its member interest in G&P was distributed to OLP GP, and its 99% limited partner
interest in each of Eagle Rock Gas Gathering & Processing, Ltd, a Texas limited partnership
(“Gathering”) and Services was distributed to OLP.

          8. G&P distributed its 1% general partner interest in each of Gathering, Services, Eagle Rock
Operating, L.P., a Texas limited partnership (“Operating”), and Eagle Rock Field Services,
L.P., a Texas limited partnership (“Field Services”), to OLP GP, and OLP GP was admitted as
the general partner of each of Gathering, Services, Operating and Field Services.

          9. OLP GP distributed its member interest in G&P to Holdings.

          10. MLP formed Heathrow Energy, LLC (“Heathrow”) under the terms of the Delaware LLC
Act.

          11. Each of OLP, Gathering, Services, Operating and Field Services (through any intermediate
entities) distributed their working capital assets consisting of cash and accounts receivable (the
“Working Capital Assets”), estimated to be approximately $35.0 million, to Holdings, the
March 2006 Private Investors and the June 2006 Private Investors in proportion to their interests
in the OLP.

          12. OLP paid Holdings $7,008,825 to satisfy its obligation to pay distribution arrearages on
the subordinated units and general partner units in OLP owned by Holdings.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby (the
“Closing”), each of the following matters shall occur:

          1. Holdings will contribute to GP LP a limited partner interest (the “Interest”) in
OLP with a value equal to 2% of the equity value of MLP immediately after the Closing as a capital
contribution (of which 0.001% of such conveyance will be made to GP LP on behalf of G&P).

          2. GP LP will convey the Interest to MLP in exchange for (a) a continuation of its 2% general
partner interest, (b) the issuance to GP LP of the IDRs of MLP and (c) the right to receive
$3,556,375 to reimburse it for certain capital expenditures (of which $95,302 is to pay
distribution arrearages on the general partner units in OLP owned by OLP GP).

          3. Holdings will convey all of its member interest in OLP GP to MLP in exchange for (a)
413,830 Subordinated Units in MLP (representing a 1.0% interest), (b) 69,185 Common Units in MLP
(representing a 0.2% interest) and (c) the right to receive $2,914,217 to

2

 

reimburse Holdings for certain capital expenditures (of which $78,094 is to pay distribution
arrearages on the subordinated units in OLP owned by Holdings).

          4. Pursuant to the Merger Agreement, Holdings will convey all of its remaining limited partner
interest in OLP to MLP in exchange for (a) 20,277,665 Subordinated Units in MLP (representing a
48.0% interest), (b) 3,390,051 Common Units in MLP (representing a 8.0% interest) and (c) the right
to receive $142,796,621 to reimburse Holdings for certain capital expenditures (of which $3,826,604
is to pay distribution arrearages on the subordinated units in OLP owned by Holdings).

          5. Pursuant to the Merger Agreement, the March 2006 Private Investors and the June 2006
Private Investors will convey all of their remaining limited partner interest in OLP to MLP in
exchange for (a) 4,732,259 Common Units in MLP (representing a 11.2% interest) and (b) the right
to receive $27,786,462 to reimburse the March 2006 Private Investors and the June 2006 Private
Investors for certain capital expenditures.

          6. Pursuant to the Merger Agreement, Heathrow will merge with and into OLP, and OLP will be
the surviving entity.

          7. The public, through the Underwriters, will contribute $237,500,000 in cash, less the
Underwriters’ discount of $15,437,500, in exchange for 12,500,000 Common Units in MLP (representing
a 29.6% interest).

          8. MLP will (a) pay transaction expenses associated with the transactions contemplated by this
Agreement in the amount of approximately $3,000,000 (exclusive of the Underwriters’ discount), (b)
distribute $3,556,375 to GP LP to reimburse GP LP for certain capital expenditures, (c) distribute
$145,710,838 to Holdings to reimburse Holdings for certain capital expenditures, (d) distribute
$27,786,462 to the March 2006 Private Investors and the June 2006 Private Investors to reimburse
them for certain capital expenditures and (e) contribute $35,000,000 to OLP to replenish working
capital (of which 2% of such contribution will be made to OLP on behalf of OLP GP).

          9. Holdings will pay to Natural Gas Partners $6,000,000 as consideration for the termination
of an advisory services, reimbursement and indemnification agreement between Holdings and Natural
Gas Partners.

          10. MLP will redeem from Holdings and retire the Holdings Initial MLP Interest in exchange for
a payment in cash to Holdings of $980.00.

          11. If the Underwriters exercise their option to purchase up to an additional 1,875,000 Common
Units (the “Option”), MLP shall use proceeds of that exercise, net of the applicable
Underwriters’ discount, to redeem a number of Common Units owned by Holdings, the March 2006
Private Investors and the June 2006 Private Investors equal to the number of Common Units sold
pursuant to the exercise of the Option, and to reimburse Holdings, the March 2006 Private Investors
and the June 2006 Private Investors for certain capital expenditures.

3

 

          12. The agreements of limited partnership and the limited liability company agreements of the
aforementioned entities will be amended and restated to the extent necessary to reflect the
applicable matters set forth above and as contained in this Agreement.

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

ARTICLE 1

DEFINITIONS

          Section 1.1 The following capitalized terms shall have the meanings given below.

          (a) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

          (b) “Assets” has the meaning assigned to such term in Section 4.1 of this Agreement.

          (c) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

          (d) “Effective Time” shall mean 8:00 a.m. New York, New York time on the date of the
consummation of the Offering.

          (e) “IDRs” means “Incentive Distribution Rights” as such term is defined in the
Partnership Agreement.

          (f) “Merger Agreement” means the Agreement and Plan of Merger of even date herewith,
among MLP, OLP and Heathrow.

          (g) “MLP” has the meaning assigned to such term in the opening paragraph of this
Agreement.

          (h) “Natural Gas Partners” means Natural Gas Partners VII, L.P. and Natural Gas
Partners VIII, L.P. collectively.

          (i) “Offering” means the initial public offering by MLP of Common Units.

          (j) “Omnibus Agreement” means that certain Omnibus Agreement of even date herewith,
among MLP, G&P, GP LP and Holdings.

          (k) “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Eagle Rock Energy Partners, L.P. dated as of the Effective Date.

          (l) “Partnership Group” has the meaning assigned to such term in the Omnibus
Agreement.

4

 

          (m) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-134750) filed by MLP relating to the Offering.

          (n) “Subordinated Unit” has the meaning assigned to such term in the Partnership
Agreement.

          (o) “Underwriters” means UBS Securities LLC, Lehman Brothers Inc., Goldman, Sachs &
Co., A.G. Edwards & Sons, Inc., Wachovia Capital Markets, LLC, Credit Suisse Securities (USA) LLC,
Raymond James & Associates, Inc. and RBC Capital Markets Corporation.

          (p) “Underwriting Agreement” means the underwriting agreement dated October 24, 2006
among MLP, GP LP, G&P and Holdings and the Underwriters relating to the Offering.

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

          Section 2.1 Contribution by Holdings of the Interest to GP LP. Holdings hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to GP LP, its successors
and assigns, for its and their own use forever, all right, title and interest in and to the
Interest, as a capital contribution, for good and valuable consideration, the sufficiency of which
is hereby acknowledged, and GP LP hereby accepts the Interest as a contribution to the capital of
GP LP (of which 0.001% of such conveyance is being made on behalf of G&P).

          Section 2.2 Contribution by GP LP of the Interest to MLP. GP LP hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its successors
and assigns, for its and their own use forever, all right, title and interest in and to the
Interest, as a capital contribution, in exchange for (a) a continuation of its 2% general partner
interest in MLP, (b) the issuance by MLP to GP LP of the IDRs, (c) the right to receive $3,556,375
to reimburse it for certain capital expenditures (of which $95,302 is to pay distribution
arrearages on the general partner units in OLP owned by OLP GP), and (d) other good and valuable
consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts the Interest
as a contribution to the capital of MLP.

          Section 2.3 Contribution by Holdings of Member Interest in OLP GP to MLP. Holdings
hereby grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to its member interest in OLP GP in exchange for (a) the issuance by MLP to Holdings of 413,830
Subordinated Units in MLP, representing 1.0% interest in MLP, (b) the issuance by MLP to Holdings
of 69,185 Common Units in MLP, representing a 0.2% interest in MLP, (c) the right to receive
$2,914,217 to reimburse Holdings for certain capital expenditures (of which $78,094 is to pay
distribution arrearages on the subordinated units in OLP owned by Holdings) and (d) other good and
valuable consideration, the sufficiency of which is hereby acknowledged, and MLP hereby accepts
such member interest as a contribution to the capital of MLP and agrees to be bound by the terms of
the Limited Liability Company Agreement of OLP GP as its sole member.

5

 

          Section 2.4 Contribution by Holdings of Limited Partner Interest in OLP to MLP. The
Parties acknowledge that pursuant to the Merger Agreement, Holdings conveys and delivers to MLP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to its limited partner interest in OLP in exchange for (a) the issuance by MLP to Holdings of
20,277,665 Subordinated Units in MLP, representing 48.0% interest in MLP, (b) the issuance by MLP
to Holdings of 3,390,051 Common Units in MLP, representing an 8.0% interest in MLP, (c) the right
to receive $142,796,621 to reimburse Holdings for certain capital expenditures (of which $3,826,604
is to pay distribution arrearages on the subordinated units in OLP owned by Holdings), and (d)
other good and valuable consideration, the sufficiency of which is hereby acknowledged, and MLP
hereby accepts such limited partner interest as a contribution to the capital of MLP, and,
effective as of the completion of the conveyance to MLP of the limited partner interest in OLP
pursuant to the Merger Agreement and Sections 2.4 and 2.5 of this Agreement, agrees to be bound by
the terms of the Limited Partnership Agreement of OLP with respect to the limited partner interest
in OLP so conveyed to MLP.

          Section 2.5 Contribution by the March 2006 Private Investors and the June 2006 Private
Investors of Limited Partner Interest in OLP to MLP. The Parties acknowledge that pursuant to
the Merger Agreement, each of the March 2006 Private Investors and the June 2006 Private Investors
conveys and delivers to MLP, its successors and assigns, for its and their own use forever, all
right, title and interest in and to its limited partner interest in OLP in exchange for (a) the
issuance by MLP to the March 2006 Private Investors and the June 2006 Private Investors of
4,732,259 Common Units in MLP, representing an 11.2% interest in MLP, (b) the right to receive
$27,786,462 to reimburse the March 2006 Private Investors and the June 2006 Private Investors for
certain capital expenditures, and (c) other good and valuable consideration, the sufficiency of
which is hereby acknowledged, and MLP hereby accepts such limited partner interest as a
contribution to the capital of MLP, and, effective as of the completion of the conveyance to MLP of
the limited partner interest in OLP pursuant to the Merger Agreement and Sections 2.4 and 2.5 of
this Agreement, agrees to be bound by the terms of the Limited Partnership Agreement of OLP with
respect to the limited partner interest in OLP so conveyed to MLP.

          Section 2.6 Underwriters’ Cash Contribution. The Parties acknowledge that the
Underwriters have, pursuant to the Underwriting Agreement, made a capital contribution to MLP of
approximately $237,500,000 in cash ($222,062,500 net to MLP after the underwriting discount of
$15,437,500) in exchange for the issuance by MLP to the Underwriters of 12,500,000 Common Units,
representing a 29.6% interest in MLP.

          Section 2.7 Payment of Transaction Costs. The Parties acknowledge (a) the payment by
MLP, in connection with the Closing, of transaction expenses in the amount of approximately
$3,000,000 (exclusive of the Underwriters’ discount), (b) distribute $3,556,375 to GP LP to
reimburse GP LP for certain capital expenditures, (c) distribute $145,710,838 to Holdings to
reimburse Holdings for certain capital expenditures, (d) distribute $27,786,462 to the March 2006
Private Investors and the June 2006 Private Investors to reimburse them for certain capital
expenditures and (e) contribute $35,000,000 to OLP to replenish working capital (of which 2% of
such contribution will be made to OLP on behalf of OLP GP).

6

 

          Section 2.8 Payment of Fee to Natural Gas Partners. Holdings hereby agrees to pay
Natural Gas Partners $6,000,000 as consideration for the termination of an advisory services,
reimbursement and indemnification agreement between Holdings and Natural Gas Partners.

          Section 2.9 Redemption of Holdings Initial MLP Interest. MLP hereby agrees to redeem
from Holdings and agrees to retire the Holdings Initial MLP Interest in exchange for a payment in
cash to Holdings of $980.00.

ARTICLE 3

ADDITIONAL TRANSACTIONS

          Section 3.1 Purchase of Additional Common Units. If the Option is exercised in whole
or in part, the Underwriters, will contribute additional cash to MLP in exchange for up to an
additional 1,875,000 Common Units on the basis of the initial public offering price per Common Unit
set forth in the Registration Statement, net of underwriting discounts and fees.

          Section 3.2 Redemption of Common Units. MLP hereby agrees to redeem a number of Common
Units held by Holdings, the March 2006 Private Investors and the June 2006 Private Investors equal
to the number of Common Units issued to the public, through the underwriters, upon exercise of the
Option, if any, at a redemption price per Common Unit equal to the initial public offering price
per Common Unit set forth in the Registration Statement, net of underwriting discounts and fees.

ARTICLE 4

TITLE MATTERS

          Section 4.1 Encumbrances.

          (a) Except to the extent provided in any other document executed in connection with this
Agreement or the Offering, the contribution and conveyance (by operation of law or otherwise) of
the various physical assets owned as reflected in this Agreement (collectively, the
“Assets”) are made expressly subject to all recorded and unrecorded liens (other than
consensual liens), encumbrances, agreements, defects, restrictions, adverse claims and all laws,
rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals
having or asserting jurisdictions over the Assets and operations conducted thereon or in connection
therewith, in each case to the extent the same are valid and enforceable and affect the Assets,
including all matters that a current survey or visual inspection of the Assets would reflect.

          (b) To the extent that certain jurisdictions in which the Assets are located may require that
documents be recorded in order to evidence the transfers of title reflected in this Agreement, then
the provisions set forth in Section 4.1(a) immediately above shall also be applicable to the
conveyances under such documents.

7

 

          Section 4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION THE OMNIBUS AGREEMENT, THE
PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY
SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS,
AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR
STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR CONDITION
OF THE ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL CONDITION OF
THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON
THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE ASSETS FOR ANY
AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE ASSETS
OR THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF
THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT THE
RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS AND
NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES. EXCEPT TO THE EXTENT
PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR
BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING
TO THE ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT
PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES
THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN
IS MADE IN AN “AS IS”, “WHERE IS” CONDITION WITH ALL FAULTS, AND THE ASSETS ARE CONTRIBUTED AND
CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH
CONTRIBUTION AND CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION
HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE
EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR

8

 

WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS THAT MAY ARISE
PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT
OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING,
INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT.

          (b) The contributions of the Assets made under this Agreement are made with full rights of
substitution and subrogation of the respective parties receiving such contributions, and all
persons claiming by, through and under such parties, to the extent assignable, in and to all
covenants and warranties by the predecessors-in-title of the parties contributing the Assets, and
with full subrogation of all rights accruing under applicable statutes of limitation and all rights
of action of warranty against all former owners of the Assets.

          (c) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any exhibits hereto are hereby expressly disclaimed,
waived or negated.

          (d) Each of the Parties hereby waives compliance with any applicable bulk sales law or any
similar law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

ARTICLE 5

FURTHER ASSURANCES

          Section 5.1 Further Assurances. From time to time after the Effective Time, and
without any further consideration, the Parties agree to execute, acknowledge and deliver all such
additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases,
acquittances and other documents, and will do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate (a) more fully to assure that the
applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers
and privileges granted by this Agreement, or which are intended to be so granted, or (b) more fully
and effectively to vest in the applicable Parties and their respective successors and assigns
beneficial and record title to the interests contributed and assigned by this Agreement or intended
so to be and to more fully and effectively carry out the purposes and intent of this Agreement.

          Section 5.2 Other Assurances. From time to time after the Effective Time, and without
any further consideration, each of the Parties shall execute, acknowledge and deliver all such
additional instruments, notices and other documents, and will do all such other acts and things,
all in accordance with applicable law, as may be necessary or appropriate to more fully and
effectively carry out the purposes and intent of this Agreement. Without limiting the generality
of the foregoing, the Parties acknowledge that the parties have used their good faith efforts to
attempt to identify all of the assets being contributed to MLP or its subsidiaries as required in
connection with the Offering. However, due to the age of some of those assets and the difficulties
in locating appropriate data with respect to some of the assets it is possible that

9

 

assets intended to be contributed to MLP or its subsidiaries were not identified and therefore
are not included in the assets contributed to MLP or its subsidiaries. It is the express intent of
the Parties that MLP or its subsidiaries own all assets necessary to operate the assets that are
identified in this Agreement and in the Registration Statement. To the extent any assets were not
identified but are necessary to the operation of assets that were identified, then the intent of
the Parties is that all such unidentified assets are intended to be conveyed to the appropriate
members of the Partnership Group. To the extent such assets are identified at a later date, the
Parties shall take the appropriate actions required in order to convey all such assets to the
appropriate members of the Partnership Group. Likewise, to the extent that assets are identified
at a later date that were not intended by the parties to be conveyed as reflected in the
Registration Statement, the Parties shall take the appropriate actions required in order to convey
all such assets to the appropriate party.

ARTICLE 6

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall
be effective and operative in accordance with Article 7, without further action by any party
hereto.

ARTICLE 7

MISCELLANEOUS

          Section 7.1 Order of Completion of Transactions. The transactions provided for in
Article 2 and Article 3 of this Agreement shall be completed immediately following the Effective
Time in the following order: first, the transactions provided for in Article 2 shall be completed
in the order set forth therein; and second, following the completion of the transactions as
provided in Article 2, the transactions, if they occur, provided for in Article 3 shall be
completed.

          Section 7.2 Costs. Except for the transaction costs set forth in Section 2.7, the OLP
shall pay all expenses, fees and costs, including but not limited to, all sales, use and similar
taxes arising out of the contributions, conveyances and deliveries to be made hereunder and shall
pay all documentary, filing, recording, transfer, deed, and conveyance taxes and fees required in
connection therewith. In addition, the OLP shall be responsible for all costs, liabilities and
expenses (including court costs and reasonable attorneys’ fees) incurred in connection with the
implementation of any conveyance or delivery pursuant to Section 5.1 or Section 5.2.

          Section 7.3 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and
not to any particular provision of this Agreement. All references herein to Articles and Sections
shall, unless the context requires a different construction, be deemed to be references to the
Articles and Sections of this Agreement. All personal pronouns
used in this Agreement, whether used in the masculine, feminine or neuter gender, shall
include

10

 

all other genders, and the singular shall include the plural and vice versa. The use
herein of the word “including” following any general statement, term or matter shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not non-limiting
language (such as “without limitation”, “but not limited to”, or words of similar import) is used
with reference thereto, but rather shall be deemed to refer to all other items or matters that
could reasonably fall within the broadest possible scope of such general statement, term or matter.

          Section 7.4 Successors and Assigns. The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

          Section 7.5 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

          Section 7.6 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on the parties hereto.

          Section 7.7 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and to be performed
wholly within such state without giving effect to conflict of law principles thereof.

          Section 7.8 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid and an equitable adjustment shall
be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

          Section 7.9 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an Amendment to this Agreement.

          Section 7.10 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to their subject matter. This document and such instruments contain the entire
understanding of the Parties with respect to the subject matter hereof and thereof. No
understanding, representation, promise or agreement, whether oral or written, is intended to be or
shall be included in or form part of this Agreement unless it is contained in a written amendment
hereto executed by the parties hereto after the date of this Agreement.

          Section 7.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

11

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

12

 

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	EAGLE ROCK ENERGY PARTNERS, L.P.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Eagle Rock Energy GP, L.P., its general partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Eagle Rock Energy G&P, LLC, its general partner
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ ALEX A. BUCHER
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	 	 	 	 	Title:
	 	President and Chief Executive Officer

	 	 	 	 	 	 	 	 	 
	 	 	EAGLE ROCK ENERGY GP, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Eagle Rock Energy G&P, LLC, its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ ALEX A. BUCHER	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	 	 	Title:
	 	President and Chief Executive Officer

	 	 	 	 	 	 	 
	 	 	EAGLE ROCK ENERGY G&P, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ ALEX A. BUCHER
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	Title:
	 	President and Chief Executive Officer

	 	 	 	 	 	 	 	 	 
	 	 	EAGLE ROCK PIPELINE, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Eagle Rock Pipeline GP, LLC, its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ ALEX A. BUCHER
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	 	 	Title:
	 	President and Chief Executive Officer

Signature Page To

Contribution, Conveyance And Assumption Agreement

 

 

	 	 	 	 	 	 	 
	 	 	EAGLE ROCK PIPELINE GP, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ ALEX A. BUCHER
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	Title:
	 	President and Chief Executive Officer

	 	 	 	 	 	 	 	 	 
	 	 	EAGLE ROCK HOLDINGS, L.P.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Eagle Rock GP, L.L.C., its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ ALEX A. BUCHER
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Alex A. Bucher
	 

	 	 	 	 	 	Title:
	 	President and Chief Executive Officer

Signature Page To

Contribution, Conveyance And Assumption Agreementexv10w38

 

Exhibit 10.38

AMENDMENT NO. 3

          AMENDMENT NO. 3 dated as of June 20, 2006 among The Shaw Group Inc. (the “Borrower”),
the subsidiaries of the Borrower listed on the signature pages hereto as “Guarantors” and BNP
Paribas, as administrative agent (in such capacity, the “Agent”) pursuant to authority
granted by the Required Lenders.

          The Borrower, the “Guarantors” party thereto, the “Lenders” party thereto and the Agent are
parties to a Credit Agreement dated as of April 25, 2005 (as modified and supplemented and in
effect from time to time, the “Credit Agreement”), providing, subject to the terms and
conditions thereof, for extensions of credit (by means of loans and letters of credit) to be made
by said lenders to the Borrower in an aggregate principal or face amount not exceeding
$750,000,000.

          The parties hereto wish to amend the Credit Agreement as hereinafter set forth and accordingly
hereby agree as follows:

          Section 1. Definitions. Terms defined in the Credit Agreement are used herein as
defined therein.

          Section 2. Amendments. Subject to the satisfaction of the conditions precedent
specified in Section 5 below, but effective as of the date hereof, the last sentence of Section
2.19.1 of the Credit Agreement shall be amended to read as follows:

“No Facility LC issued on or after the Effective Date shall have an expiry date later than
the fifth Business Day prior to the Facility Termination Date.”

          Section 3. Representations and Warranties. The Borrower represents and warrants to
the Lenders that the representations and warranties set forth in Article V of the Credit Agreement
are true and correct on the date hereof as if made on and as of the date hereof (except to the
extent any such representation or warranty is stated to relate solely to an earlier date, in which
case such representation or warranty shall have been true and correct on and as of such earlier
date) and as if each reference in said Article V to “this Agreement” included reference to this
Amendment No. 3.

          Section 4. Previously Issued Facility LCs. The letters of credit listed on Schedule
1 hereto shall be deemed to be Facility LCs duly issued under the Credit Agreement provided that
the terms and conditions thereof comply with the requirements of the Credit Agreement as hereby
amended.

          Section 5. Conditions Precedent. The amendment set forth in Section 2 hereof and
the consent set forth in Section 4 hereof shall become effective, as of the date hereof, upon the
execution and delivery of counterparts of this Amendment No. 3 by the Borrower, the Guarantors and
the Agent pursuant to authority granted by the Required Lenders.

 

 

          Section 6. Miscellaneous. Except as herein provided, the Credit Agreement and the
Security Agreement shall remain unchanged and in full force and effect. This Amendment No. 3 may
be executed in any number of counterparts, all of which taken together shall constitute one and the
same amendatory instrument and any of the parties hereto may execute this Amendment No. 3 by
signing any such counterpart. This Amendment No. 3 shall be governed by, and construed in
accordance with, the law of the State of New York.

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 3 to be duly executed
and delivered as of the day and year first above written.

 

 

	 	 	 	 	 
	 	THE SHAW GROUP INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and

Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS:

WHIPPANY VENTURE I, L.L.C

HYDRO POWER SOLUTIONS LLC

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President 	 
	 
	 	SHAW CONSTRUCTORS, INC.

 	 
	 	By:  	 	 
	 	 	Ronnie Volentine 	 
	 	 	President 	 
	 
	 	STONE & WEBSTER MICHIGAN, INC.

 	 
	 	By:  	 	 
	 	 	Gary P. Graphia 	 
	 	 	Vice President and Secretary 	 
	 
	 	SO-GLEN GAS CO., LLC

       by its sole member,

       EMCON/OWT, Inc.

 	 
	 	By:  	

 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President, Assistant
Treasurer and
Assistant Chief 
Financial Officer 	 
	 
	 	EMCON/OWT, INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President, Assistant 
Treasurer and
Assistant Chief Financial 
Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued)

AMERICAN PLASTIC PIPE AND

          SUPPLY, L.L.C.

B.F. SHAW, INC.

C.B.P. ENGINEERING CORP.

EDS EQUIPMENT COMPANY, LLC

EDS PUERTO RICO, INC.

ENVIROGEN, INC.

FIELD SERVICES, INC.

LFG SPECIALTIES, L.L.C.

MWR, INC.

PROSPECT INDUSTRIES (HOLDINGS), INC.

SHAW ALLOY PIPING PRODUCTS, INC.

SHAW BENECO, INC.

SHAW COASTAL, INC.

SHAW CONNEX, INC.

SHAW E & I INVESTMENT HOLDINGS, INC.

SHAW E & I RUSSIA, INC.

SHAW ENERGY DELIVERY SERVICES, INC.

SHAW ENVIRONMENTAL, INC.

SHAW ENVIRONMENTAL &

          INFRASTRUCTURE, INC.

SHAW ENVIRONMENTAL

          INTERNATIONAL, INC.

SHAW FABRICATORS, INC.

SHAW FACILITIES, INC.

SHAW FIELD SERVICES, INC.

SHAW FT. LEONARD WOOD HOUSING, 

          L.L.C.

SHAW GLOBAL ENERGY SERVICES, INC.

SHAW GRP OF CALIFORNIA

SHAW INDUSTRIAL SUPPLY CO., INC.

SHAW INFRASTRUCTURE, INC.

SHAW INTELLECTUAL PROPERTY

          HOLDINGS, INC.

SHAW INTERNATIONAL, INC.

SHAW JV HOLDINGS, L.L.C.

SHAW LITTLE ROCK HOUSING, L.L.C.

SHAW LIQUID SOLUTIONS LLC

SHAW MAINTENANCE, INC.

SHAW POWER SERVICES GROUP, L.L.C.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued)

SHAW WASTE SOLUTIONS, LLC

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Chief 
Financial Officer 	 
	 
	 	STONE & WEBSTER — JSC MANAGEMENT 

       CONSULTANTS, INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President, Senior Vice

President and Treasurer 	 
	 
	 	BADGER® TECHNOLOGIES, L.L.C.

BADGER® TECHNOLOGY HOLDINGS, L.LC.

PIKE PROPERTIES I, INC.

PIKE PROPERTIES II, INC.

SHAW GLOBAL, L.L.C.

SHAW TRANSMISSION & DISTRIBUTION

       SERVICES, INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Vice President and Treasurer 	 
	 
	 	S C WOODS, L.L.C.

       by its sole member,

       Stone & Webster, Inc.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued)

INTERNATIONAL CONSULTANTS, L.L.C.

SHAW BEALE HOUSING, L.L.C.

SHAW CAPITAL INC.

SHAW CAPITAL (NEVADA), INC.

SHAW CENTCOM SERVICES, L.L.C.

SHAW HANSCOM HOUSING, L.L.C.

SHAW HOME LOUISIANA, INC.

SHAW MANAGED SERVICES, INC.

SHAW MANAGEMENT SERVICES

          ONE, INC.

SHAW MORGAN CITY TERMINAL, INC.

SHAW NAPTECH, INC.

SHAW POWER SERVICES, INC.

SHAW PROCESS AND INDUSTRIAL

          GROUP, INC.

SHAW PROCESS FABRICATORS, INC.

SHAW PROPERTY HOLDINGS, INC.

SHAW SERVICES, L.L.C.

SHAW SSS FABRICATORS, INC.

SHAW SUNLAND FABRICATORS, INC.

SHAW WORD INDUSTRIES

          FABRICATORS, INC.

STONE & WEBSTER ASIA, INC.

STONE & WEBSTER HOLDING ONE, INC.

STONE & WEBSTER HOLDING TWO, INC.

STONE & WEBSTER, INC.

STONE & WEBSTER INTERNATIONAL, 

          INC.

STONE & WEBSTER INTERNATIONAL 

          HOLDINGS, INC.

STONE & WEBSTER MASSACHUSETTS, 

          INC.

STONE & WEBSTER PROCESS

          TECHNOLOGY, INC.

STONE & WEBSTER MANAGEMENT 

          CONSULTANTS, INC.

STONE & WEBSTER SERVICES, L.L.C.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued)

STONE & WEBSTER CONSTRUCTION, INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	President and Executive Vice President 	 
	 
	 	ARLINGTON AVENUE E VENTURE, LLC

CAMDEN ROAD VENTURE, LLC

GREAT SOUTHWEST PARKWAY

          VENTURE, LLC

 	 
	 	By:  	 	 
	 	 	T.A. Barfield, Jr. 	 
	 	 	President 	 
	 
	 	STONE & WEBSTER CONSTRUCTION SERVICES, L.L.C.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	President and Executive Vice President 	 
	 
	 	SHAW INTERNATIONAL MANAGEMENT 

          SERVICES ONE, INC.

SHAW INTERNATIONAL MANAGEMENT 

          SERVICES TWO, INC.

SHAW NORTHEAST HOUSING, L.L.C.

SHAW NORTHWEST HOUSING, L.L.C.

SHAW STONE & WEBSTER PUERTO RICO, 

          INC.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued):

LANDBANK PROPERTIES, L.L.C.

 	 
	 	By:  	 	 
	 	 	T.A. Barfield, Jr. 	 
	 	 	Chief Executive Officer and Chairman 	 
	 
	 	SHAW ENVIRONMENTAL LIABILITY 

          SOLUTIONS, L.L.C.

 	 
	 	By:  	 	 
	 	 	T.A. Barfield, Jr. 	 
	 	 	Chairman and Chief Executive Officer 	 
	 
	 	THE LANDBANK GROUP, INC.

 	 
	 	By:  	 	 
	 	 	T.A. Barfield, Jr. 	 
	 	 	Chief Executive Officer and
Chairman of the Board 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued):

BENICIA NORTH GATEWAY II, L.L.C.

CHIMENTO WETLANDS, L.L.C.

HL NEWHALL II, L.L.C.

JERNEE MILL ROAD, L.L.C.

KATO ROAD II, L.L.C.

KIP I, L.L.C.

LANDBANK BAKER, L.L.C.

MILLSTONE RIVER WETLAND

       SERVICES, L.L.C.

NORWOOD VENTURE I, L.L.C.

OTAY MESA VENTURES II, L.L.C.

PLATTSBURG VENTURE, L.L.C.

RARITAN VENTURE I, L.L.C.

SHAW ALASKA, INC.

SHAW AMERICAS, L.L.C.

SHAW CALIFORNIA, L.L.C.

SHAW CMS, INC.

SHAW MEXICO, L.L.C.

SHAW REMEDIATION SERVICES, L.L.C.

 	 
	 	By:  	 	 
	 	 	T.A. Barfield, Jr. 	 
	 	 	President 	 
	 
	 	INTEGRATED SITE SOLUTIONS, L.L.C.

       by its sole member,

       Shaw Environmental & Infrastructure, 

       Inc.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS (continued):

NUCLEAR TECHNOLOGY SOLUTIONS,

       L.L.C.

       by its sole member,

S C WOODS, L.L.C.

       by its sole member,

       Stone & Webster, Inc.

 	 
	 	By:  	 	 
	 	 	Robert L. Belk 	 
	 	 	Executive Vice President and Treasurer 	 
	 
	 	SELS ADMINISTRATIVE SERVICES, L.L.C.

       by its sole member,

       Shaw Environmental Liability Solutions, 

       L.L.C.

 	 
	 	By:  	 	 
	 	 	T.A. Barfield 	 
	 	 	Chairman and Chief Executive Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS, as Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]