Document:

Agreement and Plan of Merger

 Exhibit 10.1 
  

  
 AGREEMENT AND PLAN OF MERGER 
  
 Dated as of February 28,
2005 
  
 among 
  
 MULTI-CHANNEL HOLDINGS,
INC., 
  
 BMS MERGER
CORPORATION 
  
 and 
  
 BLUE MARTINI SOFTWARE,
INC. 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	    	 	  	Page

			
	ARTICLE 1	 	THE MERGER	  	1
			
	 SECTION 1.1
	    	The Merger	  	1
			
	 SECTION 1.2
	    	Closing	  	1
			
	 SECTION 1.3
	    	Effective Time	  	2
			
	 SECTION 1.4
	    	Effects of the Merger	  	2
			
	 SECTION 1.5
	    	Certificate of Incorporation and Bylaws of the Surviving Corporation	  	2
			
	 SECTION 1.6
	    	Directors of the Surviving Corporation	  	2
			
	 SECTION 1.7
	    	Officers of the Surviving Corporation	  	2
			
	 SECTION 1.8
	    	Additional Actions	  	2
			
	ARTICLE 2	 	EFFECT OF THE MERGER ON THE CAPITAL STOCK OF THE CONSTITUENT CORPORATIONS; EXCHANGE OF CERTIFICATES; COMPANY STOCK OPTIONS	  	3
			
	 SECTION 2.1
	    	Effect on Capital Stock	  	3
			
	 SECTION 2.2
	    	Appraisal Rights	  	3
			
	 SECTION 2.3
	    	Surrender of Certificates	  	4
			
	 SECTION 2.4
	    	Company Stock Options; ESPP; Warrants	  	6
			
	 SECTION 2.5
	    	Withholding Taxes	  	7
			
	 SECTION 2.6
	    	Adjustments	  	8
			
	ARTICLE 3	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	8
			
	 SECTION 3.1
	    	Organization, Standing and Corporate Power	  	8
			
	 SECTION 3.2
	    	Capitalization	  	10
			
	 SECTION 3.3
	    	Authority; Noncontravention; Voting Requirements	  	11
			
	 SECTION 3.4
	    	Governmental Approvals	  	12
			
	 SECTION 3.5
	    	Company SEC Documents; Undisclosed Liabilities	  	12
			
	 SECTION 3.6
	    	Absence of Certain Changes or Events	  	14
			
	 SECTION 3.7
	    	Legal Proceedings	  	15
			
	 SECTION 3.8
	    	Compliance With Laws; Permits	  	16
			
	 SECTION 3.9
	    	Information in Proxy Statement	  	16

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	    	 	  	Page

	 SECTION 3.10
	    	Tax Matters	  	16
			
	 SECTION 3.11
	    	Employee Benefits and Labor Matters	  	18
			
	 SECTION 3.12
	    	Environmental Matters	  	21
			
	 SECTION 3.13
	    	Contracts	  	22
			
	 SECTION 3.14
	    	Real Property	  	23
			
	 SECTION 3.15
	    	Title to Properties	  	24
			
	 SECTION 3.16
	    	Intellectual Property	  	24
			
	 SECTION 3.17
	    	Insurance	  	27
			
	 SECTION 3.18
	    	Opinion of Financial Advisor	  	27
			
	 SECTION 3.19
	    	Brokers and Other Advisors	  	28
			
	 SECTION 3.20
	    	State Takeover Statutes	  	28
			
	 SECTION 3.21
	    	Related Party Transactions	  	28
			
	 SECTION 3.22
	    	Change of Control	  	28
			
	ARTICLE 4	 	REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB	  	29
			
	 SECTION 4.1
	    	Organization, Standing and Corporate Power	  	29
			
	 SECTION 4.2
	    	Authority; Noncontravention	  	29
			
	 SECTION 4.3
	    	Governmental Approvals	  	30
			
	 SECTION 4.4
	    	Information Supplied	  	30
			
	 SECTION 4.5
	    	Ownership and Operations of Merger Sub	  	30
			
	 SECTION 4.6
	    	Financing	  	30
			
	 SECTION 4.7
	    	Brokers and Other Advisors	  	30
			
	 SECTION 4.8
	    	Ownership of Company Capital Stock	  	30
			
	ARTICLE 5	 	COVENANTS AND AGREEMENTS	  	31
			
	 SECTION 5.1
	    	Preparation of the Proxy Statement; Stockholder Meeting	  	31
			
	 SECTION 5.2
	    	Conduct of Business of the Company	  	31
			
	 SECTION 5.3
	    	No Solicitation by the Company; Etc	  	34
			
	 SECTION 5.4
	    	Further Action; Efforts	  	36
			
	 SECTION 5.5
	    	Public Announcements	  	37

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	    	 	  	Page

	 SECTION 5.6
	    	Access to Information; Confidentiality	  	38
			
	 SECTION 5.7
	    	Notification of Certain Matters	  	38
			
	 SECTION 5.8
	    	Indemnification and Insurance	  	39
			
	 SECTION 5.9
	    	Securityholder Litigation	  	40
			
	 SECTION 5.10
	    	Fees and Expenses	  	40
			
	 SECTION 5.11
	    	Employee Benefits	  	40
			
	ARTICLE 6	 	CONDITIONS PRECEDENT	  	41
			
	 SECTION 6.1
	    	Conditions to Each Party’s Obligation to Effect the Merger	  	41
			
	 SECTION 6.2
	    	Conditions to Obligations of Parent and Merger Sub	  	42
			
	 SECTION 6.3
	    	Conditions to Obligation of the Company	  	43
			
	 SECTION 6.4
	    	Frustration of Closing Conditions	  	44
			
	ARTICLE 7	 	TERMINATION	  	44
			
	 SECTION 7.1
	    	Termination	  	44
			
	 SECTION 7.2
	    	Effect of Termination	  	45
			
	 SECTION 7.3
	    	Termination Fee	  	46
			
	ARTICLE 8	 	MISCELLANEOUS	  	47
			
	 SECTION 8.1
	    	Nonsurvival of Representations and Warranties	  	47
			
	 SECTION 8.2
	    	Amendment or Supplement	  	47
			
	 SECTION 8.3
	    	Extension of Time, Waiver, Etc	  	47
			
	 SECTION 8.4
	    	Assignment	  	47
			
	 SECTION 8.5
	    	Counterparts; Facsimile; Electronic Transmission	  	48
			
	 SECTION 8.6
	    	Entire Agreement; No Third-Party Beneficiaries	  	48
			
	 SECTION 8.7
	    	Governing Law; Waiver of Jury Trial	  	48
			
	 SECTION 8.8
	    	Specific Enforcement	  	48
			
	 SECTION 8.9
	    	Consent to Jurisdiction	  	48
			
	 SECTION 8.10
	    	Notices	  	49
			
	 SECTION 8.11
	    	Severability	  	50
			
	 SECTION 8.12
	    	Definitions	  	50
			
	 SECTION 8.13
	    	Interpretation	  	54

  

 iii 

 AGREEMENT AND PLAN OF MERGER 
  
 This AGREEMENT AND PLAN OF MERGER, dated as of February 28, 2005 (this “Agreement”), is among
MULTI-CHANNEL HOLDINGS, INC., a Delaware corporation (“Parent”), BMS MERGER CORPORATION, a Delaware corporation and a direct, wholly owned
Subsidiary of Parent (“Merger Sub”), and BLUE MARTINI SOFTWARE, INC., a Delaware corporation (the “Company”). Certain terms used in this Agreement are used
as defined in Section 8.12. 
  
 WHEREAS, the respective Boards of
Directors of the Company and Merger Sub have approved and declared advisable, and the Board of Directors of Parent has approved, this Agreement and the merger of Merger Sub with and into the Company (the “Merger”), on the terms and
subject to the conditions provided for in this Agreement; 
  
 WHEREAS, concurrently with the execution of this Agreement, and as a condition and inducement to Parent’s willingness to enter into this Agreement, certain stockholders of the Company are entering into voting agreements with Parent;
and 
  
 WHEREAS, Parent, Merger Sub and the Company desire to make
certain representations, warranties, covenants and agreements in connection with the Merger and also to prescribe various conditions to the Merger. 
  
 NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, and intending to be legally
bound hereby, Parent, Merger Sub and the Company hereby agree as follows: 
  
 ARTICLE 1 
  
 The
Merger 
  
 SECTION 1.1 The Merger. Upon the terms and
subject to the conditions set forth in this Agreement, and in accordance with the General Corporation Law of the State of Delaware (the “DGCL”), at the Effective Time, Merger Sub shall be merged with and into the Company, and the
separate corporate existence of Merger Sub shall thereupon cease, and the Company shall be the surviving corporation in the Merger (the “Surviving Corporation”). 
  
 SECTION 1.2 Closing. The closing of the Merger (the “Closing”) shall take place at 10:00 a.m.
(California time) on a date to be specified by the parties, which date shall be no later than the second business day after satisfaction or waiver of the conditions set forth in Article 6 (other than those conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), unless another time or date, or both, are agreed to in writing by the parties hereto. The date on which the Closing is held is herein referred to as the
“Closing Date.” The Closing will be held at the offices of Cooley Godward LLP, 3175 Hanover Street, Palo Alto, California 94304, unless another place is agreed to in writing by the parties hereto. 
  

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 SECTION 1.3 Effective Time. Subject to the provisions of this Agreement, on the Closing Date the
parties shall file with the Secretary of State of the State of Delaware a certificate of merger (the “Certificate of Merger”), executed in accordance with the relevant provisions of the DGCL. The Merger shall become effective upon
the filing of the Certificate of Merger with the Secretary of State of the State of Delaware or at such later time as is agreed to by the parties hereto and specified in the Certificate of Merger (the time at which the Merger becomes effective is
herein referred to as the “Effective Time”). 
  
 SECTION 1.4 Effects of the Merger. From and after the Effective Time, the Merger shall have the effects set forth in the DGCL. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, all the
properties, rights, privileges, powers and franchises of the Company and Merger Sub shall vest in the Surviving Corporation, and all debts, liabilities and duties of the Company and Merger Sub shall become the debts, liabilities and duties of the
Surviving Corporation. 
  
 SECTION 1.5 Certificate of
Incorporation and Bylaws of the Surviving Corporation. 
  
 (a) The certificate of incorporation of the Company, as in effect immediately prior to the Effective Time, shall be amended in the Merger to be in the form of Exhibit A hereto and, as so amended, such certificate of incorporation
shall be the certificate of incorporation of the Surviving Corporation until thereafter amended as provided therein or by applicable Law. 
  
 (b) Parent shall take all necessary actions to cause the bylaws of Merger Sub, in the form attached as Exhibit B hereto, to be the bylaws of the
Surviving Corporation until thereafter amended as provided therein or by applicable Law. 
  
 SECTION 1.6 Directors of the Surviving Corporation. The directors of Merger Sub immediately prior to the Effective Time shall be the directors of the Surviving Corporation immediately following the Effective
Time, until the earlier of their resignation or removal or until their respective successors are duly elected and qualified, as the case may be. 
  
 SECTION 1.7 Officers of the Surviving Corporation. The officers of the Company immediately prior to the Effective Time shall be the officers of the
Surviving Corporation until their respective successors are duly appointed and qualified or their earlier death, resignation or removal in accordance with the certificate of incorporation and bylaws of the Surviving Corporation. 
  
 SECTION 1.8 Additional Actions. If, at any time after the Effective
Time, the Surviving Corporation shall determine that any deeds, bills of sale, assignments or assurances in law or any other acts are reasonably necessary to vest, perfect or confirm, of record or otherwise, in the Surviving Corporation its right,
title or interest in, to or under any of the rights, properties or assets of the Company or Merger Sub, the officers and directors of the Surviving Corporation and Parent shall be fully authorized in the name of the Company to take any and all such
action. 
  

 2 

 ARTICLE 2 
  

Effect of the Merger on the Capital Stock of the 
 Constituent Corporations; Exchange of Certificates; Company Stock Options 
  
 SECTION 2.1 Effect on Capital Stock. At the Effective Time, by virtue of the Merger and without any action on the part of the holder of any shares
of Company Capital Stock or any shares of capital stock of Merger Sub: 
  
 (a) Capital Stock of Merger Sub. Each issued and outstanding share of capital stock of Merger Sub shall be converted into and become one validly issued, fully paid and nonassessable share of common stock, par value $0.001 per share,
of the Surviving Corporation; 
  
 (b) Cancellation of Treasury
Stock and Parent-Owned Stock. Any shares of Company Capital Stock that are owned by the Company as treasury stock, and any shares of Company Capital Stock owned by Parent or Merger Sub or any other wholly owned Subsidiary of Parent, shall be
automatically canceled and shall cease to exist and no consideration shall be delivered in exchange therefor; and 
  
 (c) Conversion of Company Common Stock. Each issued and outstanding share of Company Common Stock (other than shares to be canceled in accordance
with Section 2.1(b) and Appraisal Shares) shall be converted into the right to receive $4.00 in cash, without interest (the “Per Share Amount“). As used herein, the term “Merger Consideration” means the cash payable
to former stockholders of the Company pursuant to this Section 2.1(c). 
  
 SECTION 2.2 Appraisal Rights. Notwithstanding anything in this Agreement to the contrary, shares of Company Common Stock issued and outstanding immediately prior to the Effective Time that are held by any holder who is entitled to
demand and properly demands appraisal of such shares pursuant to, and who complies in all respects with, the provisions of Section 262 of the DGCL (“Section 262”) shall not be converted into the right to receive the Merger
Consideration as provided in Section 2.1(c), but instead such holder shall be entitled to payment of the fair value of such shares (the “Appraisal Shares”) in accordance with the provisions of Section 262. At the Effective Time, all
Appraisal Shares shall no longer be outstanding and shall automatically be canceled and shall cease to exist, and each holder of Appraisal Shares shall cease to have any rights with respect thereto, except the right to receive the fair value of such
Appraisal Shares in accordance with the provisions of Section 262. Notwithstanding the foregoing, if any such holder shall fail to perfect or otherwise shall waive, withdraw or lose the right to appraisal under Section 262 or a court of competent
jurisdiction shall determine that such holder is not entitled to the relief provided by Section 262, then the right of such holder to be paid the fair value of such holder’s Appraisal Shares under Section 262 shall cease and each of such
Appraisal Shares shall 

  

 3 

 
be deemed to have been converted at the Effective Time into, and shall have become, the right to receive the Per Share Amount as provided in Section 2.1(c).
The Company shall (i) deliver prompt notice to Parent of any demands for appraisal of any shares of Company Common Stock, and (ii) give Parent the opportunity to participate in all negotiations and proceedings with respect to any such demand. Prior
to the Effective Time, the Company shall not, without the prior written consent of Parent, such consent not to be unreasonably withheld or delayed, make any payment with respect to, or settle or offer to settle, any such demands, or agree to do any
of the foregoing. 
  
 SECTION 2.3 Surrender of
Certificates. 
  
 (a) Paying Agent. Prior to the
Effective Time, Parent shall designate a bank or trust company reasonably acceptable to the Company to act as agent (the “Paying Agent”) for payment of the Merger Consideration upon surrender of the certificates that immediately
prior to the Effective Time represented shares of Company Capital Stock (each such certificate, a “Certificate”). Immediately following the Effective Time, Parent shall deposit, or cause to be deposited, with the Paying Agent cash
sufficient to pay the aggregate Merger Consideration payable pursuant to Section 2.1(c) upon surrender of Certificates representing outstanding shares of Company Capital Stock (it being understood that Parent may cause the Surviving Corporation to
deposit a portion of such cash amount with the Paying Agent, provided, however, that Parent shall not cause the Surviving Corporation to deposit with the Paying Agent any amount of cash which, after such deposit, would cause the Surviving
Corporation: (i) to be unable to pay its debts (including trade debts) as they mature; (ii) to have the fair value of the Surviving Corporation’s liabilities exceed the fair value of its assets as a going concern; or (iii) to be left with
unreasonably small capital). Such funds provided to the Paying Agent are referred to herein as the “Payment Fund.” 
  
 (b) Payment Procedures. Promptly after the Effective Time, the Paying Agent shall mail to each holder of record of a Certificate: (i) a letter of
transmittal (which shall specify that delivery of the Certificates shall be effected, and risk of loss and title to the Certificates shall pass, only upon delivery of the Certificates to the Paying Agent); and (ii) instructions for use in effecting
the surrender of the Certificates in exchange for the right to receive the Per Share Amount with respect to each share of Company Common Stock evidenced by such Certificate. Upon surrender of a Certificate for cancellation to the Paying Agent,
together with such letter of transmittal, duly completed and validly executed in accordance with the instructions (and such other customary documents as may reasonably be required by the Paying Agent), the holder of such Certificate shall be
entitled to receive in exchange therefor the Per Share Amount with respect to each share of Company Common Stock evidenced by such Certificate, and the Certificate so surrendered shall forthwith be canceled. In the event of a transfer of ownership
of shares of Company Capital Stock that is not registered in the transfer records of the Company, the proper amount of cash may be paid in exchange therefor to a Person other than the Person in whose name the Certificate so surrendered is registered
if such Certificate shall be properly endorsed or shall otherwise be in proper form for transfer and the Person requesting such payment shall pay any transfer and other Taxes required by reason of the payment to a Person other than the registered
holder of such 

  

 4 

 
Certificate or establish to the reasonable satisfaction of the Surviving Corporation that such Tax either has been paid or is not applicable. Until
surrendered as contemplated by this Section 2.3(b), each Certificate shall be deemed at any time after the Effective Time to represent only the right to receive upon such surrender the Per Share Amount with respect to each share of Company Common
Stock evidenced by such Certificate. No interest will be paid or will accrue on the Merger Consideration payable upon surrender of any Certificate. 
  
 (c) Transfer Books; No Further Ownership Rights in Company Stock. At the Effective Time: (i) all shares of Company Capital Stock outstanding
immediately prior to the Effective Time shall automatically be canceled and retired and shall cease to exist, and all holders of Certificates representing shares of Company Capital Stock that were outstanding immediately prior to the Effective Time
shall cease to have any rights as stockholders of the Company, except the right to receive the Per Share Amount with respect to each share of Company Common Stock evidenced by such Certificate upon surrender thereof in accordance with Section
2.3(b); and (ii) the stock transfer books of the Company shall be closed and there shall be no further registration of transfers on the stock transfer books of the Surviving Corporation of the shares of Company Capital Stock that were outstanding
immediately prior to the Effective Time. All cash paid upon the surrender of Certificates in accordance with the terms of this Article 2 shall be deemed to have been paid in full satisfaction of all rights pertaining to the shares of Company Capital
Stock previously represented by such Certificates. Subject to Section 2.3(e), if, at any time after the Effective Time, Certificates are presented to the Surviving Corporation or the Paying Agent for any reason, they shall be canceled and exchanged
as provided in this Article 2. 
  
 (d) Lost, Stolen or
Destroyed Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by Parent, the posting by
such Person of a bond, in such reasonable amount as Parent may direct, as indemnity against any claim that may be made against it with respect to such Certificate, the Paying Agent will pay the Per Share Amount to such Person in exchange for each
share of Company Common Stock evidenced by such lost, stolen or destroyed Certificate. 
  
 (e) Termination of Fund. Any portion of the Payment Fund (including the proceeds of any investments thereof) that remains undistributed to the former holders of the Certificates one year after the Effective
Time shall be delivered by the Paying Agent to the Surviving Corporation upon demand. Any former holders of Certificates who have not theretofore complied with this Article 2 shall thereafter look only to the Surviving Corporation for payment of the
Merger Consideration payable with respect thereto. 
  
 (f) No
Liability. Notwithstanding any provision of this Agreement to the contrary, none of Parent, the Surviving Corporation or the Paying Agent shall be liable to any Person for any amount properly paid from the Payment Fund or delivered to a public
official pursuant to any applicable abandoned property, escheat or similar Law. 
  

 5 

 (g) Investment of Payment Fund. Parent shall cause the Paying Agent to invest the Payment Fund in
a money market fund registered under the Investment Company Act of 1940, the principal of which is invested solely in obligations issued or guaranteed by the United States Government and repurchase agreements in respect of such obligations. Any
interest and other income resulting from such investment shall be the property of, and shall be paid promptly to, Parent. 
  
 SECTION 2.4 Company Stock Options; ESPP; Warrants. 
  
 (a) Prior to the Effective Time, the Company shall use commercially reasonable efforts to cause each option granted pursuant to a Company Stock Plan that
is outstanding immediately prior to the Effective Time (whether or not then vested or exercisable) and that represents the right to acquire shares of Company Common Stock (each, an “Option”) to be canceled and terminated and
converted at the Effective Time into the right to receive a cash amount equal to the Option Consideration (as hereinafter defined) for each share of Company Common Stock then subject to the Option (it being understood that (i) with respect to an
Option held by a Person whose employment by the Company or its Subsidiaries was terminated prior to the Effective Time, Option Consideration shall only be paid with respect to the portion of such Option that was vested as of the time such
Person’s employment relationship with the Company or its Subsidiaries terminated and (ii) with respect to Options which by the terms of the grant documents relating thereto, specifically provide for less acceleration than is provided for under
the terms of the Company Stock Plan pursuant to which such Option was granted, the Option Consideration shall be paid only with respect to the portion of such Option which vests pursuant to the terms of such grant documents). Prior to the Effective
Time, the Company shall take all actions necessary to terminate the Company Stock Plans, such termination to be effective at or before the Effective Time. Prior to the Effective Time, the Company shall deposit in a bank account an amount of cash
equal to the sum of the aggregate Option Consideration for each Option then outstanding (subject to any applicable withholding tax), together with instructions that such cash be promptly distributed following the Effective Time to the holders of
such Options in accordance with this Section 2.4(a). For purposes of this Agreement, “Option Consideration” means, with respect to any share of Company Common Stock issuable under a particular Option, an amount equal to the excess,
if any, of: (1) the Per Share Amount; over (2) the exercise price payable in respect of such share of Company Common Stock issuable under such Option (it being understood that if the exercise price payable in respect of such share of Company Common
Stock issuable under such Option exceeds the Per Share Amount, the Option Consideration shall be zero). 
  
 (b) The rights of participants in the ESPP with respect to any offering period underway immediately prior to the Effective Time under the ESPP shall be
determined by treating the last business day prior to the Effective Time as the last day of such offering period and by making such other pro-rata adjustments as may be necessary to reflect the shortened offering period but otherwise treating such
shortened offering period as a fully effective and completed offering period for all purposes under the ESPP. Prior to the Effective Time, the Company shall take all actions (including the termination of the ESPP effective as of the Effective Time
and, if appropriate, amending the terms of the ESPP) that are necessary to give effect to the transactions contemplated by this Section 2.4(b). 
  

 6 

 (c) Each warrant to purchase shares of Company Common Stock that is outstanding as of the Effective Time
(a “Warrant”) shall be converted at the Effective Time into the right to receive a cash amount equal to the Warrant Consideration (as hereinafter defined) for each share of Company Common Stock then subject to the Warrant. Prior to
the Effective Time, the Company shall deposit in a bank account an amount of cash equal to the sum of the aggregate Warrant Consideration for each Warrant then outstanding (subject to any applicable withholding tax), together with instructions that
such cash be promptly distributed following the Effective Time to the holders of such Warrants in accordance with this Section 2.4(a). For purposes of this Agreement, “Warrant Consideration” means, with respect to any share of
Company Common Stock issuable under a particular Warrant, an amount equal to the excess, if any, of: (1) the Per Share Amount; over (2) the exercise price payable in respect of such share of Company Common Stock issuable under such Warrant.

  
 (d) The Company and Parent shall take such steps as may be
reasonably requested by any party hereto to cause dispositions of Company equity securities, Options, Rights and Stock Awards pursuant to the transactions contemplated by this Agreement by each individual who is a director or officer of the Company
to be exempt under Rule 16b-3 promulgated under the Exchange Act in accordance with that certain No-Action Letter dated January 12, 1999 issued by the Securities and Exchange Commission (the “SEC”) regarding such matters.

  
 (e) As a result of the Merger and without any further action
by the Company, all shares of Company Common Stock outstanding immediately prior to the Effective Time that are unvested or are subject to a repurchase option, risk of forfeiture or other condition under any Company Stock Plan, applicable restricted
stock purchase agreement or other similar agreement with the Company will fully vest (unless the restricted stock purchase agreement or similar agreement relating thereto specifically provides for less acceleration than is provided for under the
terms of the Company Stock Plan pursuant to which such shares were issued, in which case such shares of Company Common Stock shall vest in accordance with the terms of such restricted stock purchase agreement or similar agreement) and will no longer
be subject to repurchase or forfeiture if the holder of such shares is, immediately prior to the Effective Time, a (i) current Employee or (ii) current consultant to the Company or any of its Subsidiaries holding shares of Company Common Stock which
continue to vest during the period such holder is a consultant. 
  
 (f) Each of Parent, Merger Sub and the Company agree that for purposes of the Company Stock Plans, Parent, Merger Sub and the Surviving Corporation have refused to assume the rights outstanding under such plans or substitute similar rights
therefor. 
  
 SECTION 2.5 Withholding Taxes. Parent, the
Surviving Corporation and the Paying Agent shall be entitled to deduct and withhold from the Merger 

  

 7 

 
Consideration otherwise payable to a former holder of shares of Company Capital Stock, Options or Warrants pursuant to this Agreement such amounts as may be
required to be deducted or withheld with respect to the making of such payment under the Code, or under any applicable provision of state, local or foreign Law. To the extent that amounts are so deducted and withheld, such amounts shall be treated
for all purposes under this Agreement as having been paid to the Person in respect of which such deduction and withholding was made. 
  
 SECTION 2.6 Adjustments. If during the period from the date of this Agreement through the Effective Time, any change in the outstanding shares of
Company Capital Stock or securities convertible or exchangeable into or exercisable for shares of Company Capital Stock, shall occur by reason of any reclassification, recapitalization, stock split or combination, exchange or readjustment of shares
of Company Capital Stock, or any similar transaction, or any stock dividend thereon with a record date during such period, the Per Share Amount shall be appropriately adjusted to reflect such change. 
  
 ARTICLE 3 
  
 Representations and Warranties of the Company 
  
 Except as set forth in the disclosure schedule (each section of which
qualifies the correspondingly numbered section of this Agreement to the extent specified therein and such other representations and warranties to the extent the relevance of a matter in such section of the disclosure schedule to the information
called for by such other representation and warranty is reasonably apparent) delivered by the Company to Parent simultaneously with the execution of this Agreement (the “Company Disclosure Schedule”), the Company represents and
warrants to Parent and Merger Sub as follows: 
  
 SECTION 3.1
Organization, Standing and Corporate Power. 
  
 (a) The
Company and each of its Subsidiaries is a corporation duly organized, validly existing and, in the case of the Company and its U.S. Subsidiaries, in good standing under the Laws of the jurisdiction in which it is incorporated and has all requisite
corporate power and authority necessary to own or lease all of its properties and assets and to carry on its business as it is now being conducted. The Company and each of its U.S. Subsidiaries is duly licensed or qualified to do business and is in
good standing in each jurisdiction in which the nature of the business conducted by it or the character or location of the properties and assets owned or leased by it makes such licensing or qualification necessary, except where the failure to be so
licensed, qualified or in good standing, individually or in the aggregate, has not had and would not reasonably be expected to have a Company Material Adverse Effect. For purposes of this Agreement, the term “Company Material Adverse
Effect” shall mean any change, event, occurrence or circumstance which (i) has a material adverse effect on the business, results of operations or financial condition of the Company and its Subsidiaries taken as a whole or (ii) prohibits
the Company’s consummation of the Transactions; provided, however, that none of the following shall be deemed either alone or in combination to constitute, and none of the following shall be taken into account in determining whether
there has been 

  

 8 

 
or will be, a Company Material Adverse Effect: (A) any effect, change, event, occurrence or circumstance relating to the U.S. or any foreign economy in
general to the extent that such effect, change, event, occurrence or circumstance does not have a materially disproportionate effect on the Company and its Subsidiaries taken as a whole; (B) any effect, change, event, occurrence or circumstance
relating to the industries in which the Company operates to the extent that such effect, change, event, occurrence or circumstance does not have a materially disproportionate effect on the Company and its Subsidiaries taken as a whole; (C) any
effect, change, event, occurrence or circumstance relating to fluctuations in the value of currencies; (D) any effect, change, event, occurrence or circumstance relating to acts of terrorism, war, national or international calamity or any other
similar event to the extent that such effect, change, event, occurrence or circumstance does not have a materially disproportionate effect on the Company and its Subsidiaries taken as a whole; (E) any effect, change, event, occurrence or
circumstance to the extent arising out of or resulting from the announcement of this Agreement, the existence of this Agreement or the fact that any of the Transactions may be consummated (including any effect, change, event, occurrence or
circumstance resulting from or relating to any litigation, any loss of or delay in placing customer orders, any disruption in supplier, distributor, reseller or similar relationships or any departure or loss of employees, in each case to the extent
arising out of or resulting from the announcement of this Agreement, the existence of this Agreement or the fact that any of the Transactions may be consummated); (F) the failure of the Company to meet internal or analysts’ expectations or
projections (it being understood, however, that the underlying circumstances giving rise to such failure may be taken into account unless otherwise excluded pursuant to this paragraph); (G) any effect, change, event, occurrence or circumstance
resulting from any action taken by the Company or its Subsidiaries with Parent’s consent or from compliance by the Company with the terms of this Agreement; and (H) any effect, change, event, occurrence or circumstance resulting from the
failure of the Company or its Subsidiaries to take any action referred to in Section 5.2 due to Parent’s unreasonable withholding of consent or delaying its consent. 
  
 (b) Section 3.1(b) of the Company Disclosure Schedule lists all Subsidiaries of the Company, together with the jurisdiction
of organization of each such Subsidiary and the holder or holders of the capital stock of each such Subsidiary. All the outstanding shares of capital stock of, or other equity interests in, each such Subsidiary have been duly authorized and validly
issued and are fully paid and nonassessable and are owned directly or indirectly by the Company free and clear of all liens, pledges, charges, mortgages, encumbrances, adverse rights or claims and security interests of any kind or nature whatsoever
(except for such transfer restrictions of general applicability as may be provided under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), and the “blue
sky” laws of the various States of the United States) (collectively, “Liens”). Except as set forth in Section 3.1(b) of the Company Disclosure Schedule, the Company does not own, directly or indirectly, any capital stock,
voting securities or equity interests in any Person. 
  
 (c) The
Company has delivered or made available to Parent copies of its certificate of incorporation and bylaws (the “Company Charter Documents”) and copies of the certificates of incorporation and bylaws (or comparable organizational

  

 9 

 
documents) of each of its Subsidiaries (the “Subsidiary Documents”), in each case as amended to the date of this Agreement. All such Company
Charter Documents and Subsidiary Documents are in full force and effect and neither the Company nor any of its Subsidiaries is in violation of any of their respective provisions. 
  
 SECTION 3.2 Capitalization. 
  

(a) The authorized capital stock of the Company consists of 500,000,000 shares of Company Common Stock and 5,000,000 shares of Company Preferred Stock.
At the open of business on February 28, 2005: (i) 13,026,672 shares of Company Common Stock were issued and outstanding (none of which were held by the Company in its treasury); (ii) 8,867,492 shares of Company Common Stock were reserved for
issuance under the Blue Martini Software, Inc. 2000 Equity Incentive Plan (of which 2,615,720 shares of Company Common Stock were subject to outstanding options granted thereunder); (iii) 422,622 shares of Company Common Stock were reserved for
issuance under the Blue Martini Software, Inc. 2000 Non-Employee Directors’ Stock Option Plan (of which 320,174 shares of Company Common Stock were subject to outstanding options granted thereunder); (iv) 981,067 shares of Company Common Stock
were reserved for issuance under the ESPP; (v) warrants to purchase 476,559 shares of Company Common Stock were outstanding; and (vi) no shares of Company Preferred Stock were issued and outstanding. All outstanding shares of Company Capital Stock
have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights. Section 3.2(a) of the Company Disclosure Schedule sets forth a list, as of the open of business on February 28, 2005, of all outstanding
options to purchase shares of Company Common Stock granted under the Blue Martini Software, Inc. 2000 Equity Incentive Plan and the Blue Martini Software, Inc. 2000 Non-Employee Directors’ Stock Option Plan, and, for each such option: (A) the
number of shares of Company Common Stock subject thereto; (B) the date of grant; (C) the expiration date; (D) the exercise price thereof; (E) the name of the holder thereof; and (F) the number of options that are vested. Except as set forth above in
this Section 3.2(a), as of the date of this Agreement, there are not any shares of Company Capital Stock issued and outstanding or any subscriptions, options, warrants, calls, convertible or exchangeable securities, rights, commitments or agreements
of any character providing for the issuance of any shares of Company Capital Stock. 
  
 (b) None of the Subsidiaries of the Company is bound by any outstanding subscriptions, options, warrants, calls, convertible or exchangeable securities, rights, commitments or agreements of any character providing for
the issuance or disposition of any shares of capital stock, voting securities or equity interests of any Subsidiary. As of the date of this Agreement, there are no outstanding obligations of the Company or any of its Subsidiaries to repurchase,
redeem or otherwise acquire any shares of capital stock, voting securities or equity interests (or any options, warrants or other rights to acquire any shares of capital stock, voting securities or equity interests) of the Company or any of its
Subsidiaries. 
  
 (c) There are no stockholders agreements, voting
trusts or other agreements or understandings to which the Company or any of its Subsidiaries is a party 

  

 10 

 
relating to voting or disposition of any shares of Company Capital Stock or granting to any person or group of persons the right to elect, or to designate or
nominate for election, a director to the board of directors of the Company or any of its Subsidiaries. 
  
 SECTION 3.3 Authority; Noncontravention; Voting Requirements. 
  
 (a) The Company has all necessary corporate power and authority to execute and deliver this Agreement and, subject to
obtaining the Company Stockholder Approval, to perform its obligations hereunder and to consummate the Transactions. The execution, delivery and performance by the Company of this Agreement, and the consummation by it of the Transactions, have been
duly authorized and approved by its Board of Directors, and except for obtaining the Company Stockholder Approval for the adoption of this Agreement, no other corporate action on the part of the Company is necessary to authorize the execution,
delivery and performance by the Company of this Agreement and the consummation by it of the Transactions. This Agreement has been duly executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by the other
parties hereto, constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforceability: (i) may be limited by bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other similar laws of general application affecting or relating to the enforcement of creditors’ rights generally; and (ii) is subject to general principles of equity, whether considered in a proceeding at law or
in equity (collectively, the “Bankruptcy and Equity Exception”). 
  
 (b) The Company’s Board of Directors, at a meeting duly called and held, has: (i) approved and declared advisable this Agreement; and (ii) resolved to recommend that the stockholders of the Company adopt this
Agreement (such recommendation being referred as the “Company Board Recommendation”). 
  
 (c) Neither the execution and delivery of this Agreement by the Company nor the consummation by the Company of the Transactions, nor compliance by the
Company with any of the terms or provisions hereof, will in any material respect: (i) conflict with or violate any provision of the Company Charter Documents or any of the Subsidiary Documents; or (ii) assuming that the authorizations, consents and
approvals referred to in Section 3.4 and the Company Stockholder Approval are obtained and the filings referred to in Section 3.4 are made: (A) violate any Law, judgment, writ or injunction of any Governmental Authority applicable to the Company or
any of its Subsidiaries or any of their respective properties or assets; or (B) violate or constitute a material default (or an event which, with notice or lapse of time, or both, would constitute a material default) under, result in the termination
of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Lien (other than Permitted Liens) upon any of the respective properties, Intellectual Property or other assets of, the
Company or any of its Subsidiaries under, any of the terms, conditions or provisions of any loan or credit agreement, debenture, note, bond, mortgage, indenture, deed of trust, license, lease, contract or other agreement, instrument or obligation,
whether written or oral, so long as it is enforceable against the Company or its Subsidiaries (each, a “Contract”) or Permit applicable to the business of the Company and its Subsidiaries or their respective properties or assets.

  

 11 

 (d) Assuming the accuracy of the representations made in Section 4.8, the affirmative vote (in person or
by proxy) of the holders of a majority of the outstanding shares of Company Common Stock at the Company Stockholders Meeting or any adjournment or postponement thereof in favor of the adoption of this Agreement (the “Company Stockholder
Approval”) is the only vote or approval of the holders of any class or series of capital stock of the Company or any of its Subsidiaries which is necessary to adopt this Agreement and approve the Transactions. 
  
 SECTION 3.4 Governmental Approvals. Except for: (a) the filing with
the SEC of a proxy statement relating to the Company Stockholders Meeting (as amended or supplemented from time to time, the “Proxy Statement”), and other filings required under, and compliance with other applicable requirements of,
the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”), and the rules of The Nasdaq Stock Market; (b) the filing of the Certificate of Merger with the Secretary of
State of the State of Delaware pursuant to the DGCL; (c) filings required under, and compliance with other applicable requirements of, the HSR Act; and (d) filings required under, and compliance with other applicable requirements of, non-U.S. Laws
intended to prohibit, restrict or regulate actions or transactions having the purpose or effect of monopolization, restraint of trade, harm to competition or effectuating foreign investment (collectively, “Foreign Antitrust Laws”),
no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority are necessary for the execution and delivery of this Agreement by the Company and the consummation by the Company of the Transactions, other than
such other consents, approvals, filings, declarations or registrations that, if not obtained, made or given, would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect or to have a material adverse
effect on the Company’s ability to consummate the Transactions. 
  
 SECTION 3.5 Company SEC Documents; Undisclosed Liabilities. 
  
 (a) The Company has filed and furnished all required reports, schedules, forms, prospectuses and registration, proxy and other statements required to be filed or furnished by it with or to the SEC (collectively, and
in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “Company SEC Documents”). None of the Company’s Subsidiaries is required to file periodic reports with the SEC
pursuant to the Exchange Act. As of their respective effective dates (in the case of Company SEC Documents that are registration statements filed pursuant to the requirements of the Securities Act) and as of the respective dates of the last
amendment filed with the SEC (in the case of all other Company SEC Documents), the Company SEC Documents complied in all material respects with the requirements of the Exchange Act and the Securities Act, as the case may be, and the rules and
regulations of the SEC promulgated thereunder, each as in effect on the applicable date referred to above, applicable to such Company SEC Documents, and none of the Company SEC Documents as of such respective dates contained any untrue 

  

 12 

 
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading. As of the date of this Agreement, there are no material unresolved comments issued by the staff of the SEC with respect to any of the Company SEC Documents. 
  
 (b) Each of the consolidated financial statements of the Company included in
the Company SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto, was prepared in accordance with GAAP (except, in the case of unaudited
quarterly statements, as indicated in the notes thereto) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly presented in all material respects the consolidated financial position of
the Company and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited quarterly statements, to normal year-end audit
adjustments, none of which has been or will be, individually or in the aggregate, material to the Company and its Subsidiaries, taken as a whole). 
  
 (c) The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 and Rule 15d-15 under the
Exchange Act); such disclosure controls and procedures are designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the Company’s principal executive officer and its principal financial officer to allow timely decisions regarding required disclosure; and, except as may be disclosed in reports filed by
the Company with the SEC after the date of this Agreement in accordance with applicable SEC requirements, such disclosure controls and procedures are, to the Knowledge of the Company, effective to ensure that information required to be disclosed by
the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. With respect to each Annual Report on
Form 10-K, each Quarterly Report on Form 10-Q and each amendment of any such report included in the Company SEC Documents, the principal executive officer and the principal financial officer of Company have made all certifications required by the
Sarbanes-Oxley Act of 2002 and any related rules and regulations promulgated by the SEC. 
  
 (d) Neither the Company nor any of its Subsidiaries nor, to the Knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries, has: (i)
used any corporate or other funds for unlawful contributions, payments or gifts, or made any unlawful expenditures relating to political activity to government officials or others or established or maintained any unlawful or unrecorded funds, in any
case in violation of Section 30A of the Exchange Act; or (ii) accepted or received any unlawful contributions, payments, gifts or expenditures. Except as set forth in the Company SEC Documents filed by the Company and publicly available prior to the
date of this Agreement (the “Filed Company SEC  

  

 13 

 
Documents”), between April 29, 2004, the date on which the Company’s most recent proxy statement was filed with the SEC, and the date of
this Agreement, no event has occurred that would be required to be reported as a “Certain Relationship or Related Transaction” pursuant to Item 404 of Regulation S-K promulgated by the SEC. 
  
 (e) Neither the Company nor any of its Subsidiaries has any liabilities or
obligations of any nature (whether accrued, absolute, contingent or otherwise), except liabilities or obligations: (i) as and to the extent set forth on the unaudited consolidated balance sheet of the Company and its Subsidiaries as of September 30,
2004 (the “Balance Sheet Date”) (including the notes thereto) included in the Filed Company SEC Documents); (ii) incurred after the Balance Sheet Date in the ordinary course of business consistent with past practice that,
individually or in the aggregate, have not had and would not reasonably be expected to have a Company Material Adverse Effect; (iii) for performance under Contracts in accordance with their respective terms and conditions; and (iv) under this
Agreement. 
  
 SECTION 3.6 Absence of Certain Changes or
Events. Between the Balance Sheet Date and the date of this Agreement, there were no changes, events, occurrences or circumstances that, individually or in the aggregate, had or would reasonably be expected to have a Company Material Adverse
Effect. Except as disclosed in the Filed Company SEC Documents, between the Balance Sheet Date and the date of this Agreement, the Company and its Subsidiaries carried on and operated their respective businesses in all material respects in the
ordinary course of business consistent with past practice and there was not: 
  
 (a) any material change in any method of accounting or accounting practice by the Company or any of its Subsidiaries, other than as required by the rules and regulations of the SEC or by GAAP; 
  
 (b) any declaration, setting aside or payment of any dividend (whether in
cash, stock or other property) or other distribution in respect of the Company’s securities or any redemption, purchase or other acquisition of any of the Company’s securities (other than upon exercise of rights to repurchase shares of
Company Common Stock); 
  
 (c) any issuance or the authorization
of any issuance of any securities in respect of, in lieu of or in substitution for shares of the Company Capital Stock; 
  
 (d) any amendment of any material term of any outstanding security of the Company or any of its Subsidiaries; 
  
 (e) any issuance by the Company or any of its Subsidiaries of any notes,
bonds or other debt securities or any capital stock or other equity securities or any securities convertible, exchangeable or exercisable into any capital stock or other equity securities, except for (i) the granting of Options, Rights and other
Stock Awards under the Company Stock Plans and (ii) the issuance of any Company Common Stock pursuant to the exercise of Options, Rights and other Stock Awards; 
  

 14 

 (f) any incurrence, assumption or guarantee by the Company or any of its Subsidiaries of any indebtedness
for borrowed money; 
  
 (g) any creation or assumption by the
Company or any of its Subsidiaries of any Lien on any material assets other than Permitted Liens; 
  
 (h) any making of any loan, advance or capital contributions to or investment in any entity or person by the Company or any of its Subsidiaries, other
than loans, advances or capital contributions to or investments in wholly owned subsidiaries and advances to employees for reimbursable travel and other business expenses incurred in the ordinary course of business consistent with past practice;

  
 (i) any entry by the Company or any of its Subsidiaries into
any Contract related to the acquisition or disposition of any business or any material assets (other than assets acquired in the ordinary course of business); 
  

(j) any material increase in the benefits under, or the establishment, material amendment or termination of, any Company Plan, or any material increase
in the compensation payable or to become payable to or any other material change in the employment terms for any directors or officers of the Company or any of its Subsidiaries or any other employee of the Company or any of its Subsidiaries earning
noncontingent cash compensation in excess of $100,000 per year; 
  
 (k) any entry by the Company or any of its Subsidiaries into any employment, consulting, severance, termination, change-of-control or indemnification agreement with any director or officer of the Company or any of its Subsidiaries or entry
into any such agreement with any person for a noncontingent cash amount in excess of $100,000 per year; or 
  
 (l) any authorization of, or agreement by the Company or any of its Subsidiaries to take, any of the actions described in this Section 3.6, except as
expressly contemplated by this Agreement. 
  
 SECTION 3.7 Legal
Proceedings. Other than any legal, administrative, arbitral or other proceedings related to patent prosecutions by the Company and its Subsidiaries in the ordinary course of business, there is no pending or, to the Knowledge of the Company,
threatened in writing, legal, administrative, arbitral or other proceeding against, or, to the Knowledge of the Company, governmental or regulatory investigation of, the Company or any of its Subsidiaries, nor is there any injunction, order,
judgment, ruling or decree imposed (or, to the Knowledge of the Company, threatened in writing to be imposed) upon the Company, any of its Subsidiaries or the assets of the Company or any of its Subsidiaries (including their respective rights in any
Intellectual Property) by or before any Governmental Authority, which would reasonably be expected to result in damages to the Company or its Subsidiaries in excess of $200,000 in any individual case or $800,000 in the aggregate. 
  

 15 

 SECTION 3.8 Compliance With Laws; Permits. 
  
 (a) The Company and its Subsidiaries are and have been in compliance in all
material respects with all laws (including common law), statutes, ordinances, codes, rules, regulations, decrees and orders of Governmental Authorities (collectively, “Laws”) applicable to the Company or any of its Subsidiaries, any
of their properties or other assets or any of their businesses or operations. Neither the Company nor any of its Subsidiaries has received written notice (which, in the case of any such notice received prior to January 1, 2003, remains unresolved)
to the effect that a Governmental Authority claimed or alleged that the Company or any of its Subsidiaries was not in compliance in a material respect with any Law applicable to the Company or any of its Subsidiaries, any of their material
properties or other assets or any of their businesses or operations. 
  
 (b) The Company and each of its Subsidiaries holds all material licenses, franchises, permits, certificates, approvals and authorizations from Governmental Authorities, or required by Governmental Authorities to be obtained, in each case
necessary for the conduct of their respective businesses (collectively, “Permits”). The Company and each of its Subsidiaries is in compliance in all material respects with the terms of all Permits, each Permit is in full force and
effect and no violation, suspension or cancellation of such Permit is pending or, to the Knowledge of the Company, threatened. Neither the Company nor any of its Subsidiaries has received written notice (which, in the case of any such notice
received prior to January 1, 2003, remains unresolved) to the effect that a Governmental Authority was considering the amendment, termination, revocation or cancellation of any Permit. None of the Permits will be terminated or impaired or become
terminable, in whole or in part, as a result of the consummation of the Merger, other than as may result from the fact that Parent and Merger Sub are the other parties to the Merger. 
  
 SECTION 3.9 Information in Proxy Statement. The Proxy Statement and any other document filed with the SEC by the
Company in connection with the Merger (taking into account any amendment thereof or supplement thereto), at the date first mailed to the stockholders of the Company, at the time of the Company Stockholders Meeting and at the time filed with the SEC,
as the case may be, will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are
made, not misleading, and the Proxy Statement and such other documents filed with the SEC by the Company will comply in all material respects with the provisions of the Exchange Act; provided, however, that no representation is made by
the Company with respect to statements made therein based on information supplied by Parent or Merger Sub for inclusion in such documents. 
  
 SECTION 3.10 Tax Matters. 
  
 (a) The Company and each of its Subsidiaries has timely filed, or has caused to be timely filed on its behalf (taking into account any extension of time
within which to file), all Tax Returns required to be filed by it for which the last day for timely 

  

 16 

 
filing has past, and all such Tax Returns and elections are accurate and complete in all material respects. All Taxes required to be paid by the Company and
each of its Subsidiaries have been timely paid. The Company has never received a written claim from any Governmental Authority in a jurisdiction where the Company or any of its Subsidiaries does not file Tax Returns that the Company or any of its
Subsidiaries is or may be subject to taxation by that jurisdiction. 
  
 (b) The Company and each of its Subsidiaries have withheld and paid all Taxes required to have been withheld and paid in connection with any amounts paid to any employee, independent contractor, creditor, stockholder, or other third party.

  
 (c) The most recent financial statements contained in the
Filed Company SEC Documents reflect an adequate reserve for all Taxes payable by the Company and its Subsidiaries for all taxable periods and portion thereof through the date of such financial statements. No deficiency with respect to Taxes has been
asserted or assessed against the Company or any of its Subsidiaries. 
  
 (d) Neither the Company nor any of its Subsidiaries has constituted, or has intended or purported to constitute, either a “distributing corporation” or a “controlled corporation” (within the meaning of Section
355(a)(1)(A) of the Code) in a distribution of stock qualifying, or intended or purported to qualify, for tax-free treatment under Section 355 of the Code since January 1, 2002. 
  
 (e) To the Knowledge of the Company, no audit or other administrative or court proceedings is pending with or is being
conducted by any Governmental Authority with respect to Taxes of the Company or any of its Subsidiaries and no written notice thereof has been received and is outstanding. 
  
 (f) Neither the Company nor any of its Subsidiaries is a party to any contract, agreement, plan or other arrangement that,
individually or collectively, would give rise to the payment of any amount which would not be deductible by reason of Section 280G of the Code or would give rise to an excise Tax pursuant to Section 4999 of the Code. 
  
 (g) The Company has made available to Parent copies of: (i) all income and
franchise Tax Returns filed by the Company and its Subsidiaries since January 1, 2002; and (ii) any audit report issued since January 1, 2002 (or otherwise with respect to any audit or proceeding in progress) relating to income and franchise Taxes
of the Company or any of its Subsidiaries. 
  
 (h) Neither the
Company nor any of its Subsidiaries is a party to or is bound by any Tax allocation or sharing agreement. Neither the Company nor any of its subsidiaries has been a member of an Affiliated Group filing a consolidated federal income Tax return (other
than a group the common parent of which is the Company) or (B) has an liability for the Taxes of any other Person (other than the Company or any of its Subsidiaries) under Treasury Regulation §1.1502-6 (or any similar provision of state, local
or foreign law), as a transferee or successor, by contract, or otherwise. 
  

 17 

 (i) Neither the Company nor any Subsidiary will be required to include any item of income in, or exclude
any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of (A) a change in method of accounting for a taxable period ending on or prior to the Closing Date, (B) any
“closing agreement,” as described in Section 7121 of the Code (or any corresponding provision of state, local or foreign income Tax law), (C) any installment sale or open transaction disposition made on or prior to the Closing Date, or (D)
any prepaid amount received on or prior to the Closing Date. 
  
 (j) The Company is not and has not been at any time during the 5-year period ending on the Closing Date a “United States real property holding corporation” within the meaning of Section 897 of the Code. 
  
 (k) For purposes of this Agreement: (i) “Affiliated Group”
shall mean an affiliated group as defined in Code §1504 (or any similar combined, consolidated or unitary group defined under state, local or foreign Income Tax law), (ii) “Taxes” shall mean: (A) all federal, state, local or
foreign taxes, charges, fees, imposts, levies or other assessments; and (B) all interest, penalties, fines, additions to tax or additional amounts imposed by any Taxing Authority in connection with any item described in clause “(A)” of
this sentence; and (iii) “Tax Returns” shall mean any return, report, claim for refund, estimate, information return or statement, tax election or other similar document relating to, filed, or required to be filed with any
Governmental Authority with respect to Taxes. 
  
 SECTION 3.11
Employee Benefits and Labor Matters. 
  
 (a) Section
3.11(a) of the Company Disclosure Schedule sets forth a list, separately with respect to each country in which the Company or any of its Subsidiaries has employees, of all Company Plans (as defined below). “Company Plans” shall mean
the following as of the date of this Agreement: (i) all “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)); and (ii) all other employee
benefit plans, programs, policies, agreements or arrangements, that in the case of either clause “(i)” or clause “(ii)” of this sentence: (A) providing for bonus or other incentive compensation, equity or equity-based
compensation, retirement benefit, deferred compensation, change in control rights or benefits, termination or severance benefits, stock purchase, sick leave, vacation pay, salary continuation, hospitalization, medical insurance, life insurance,
fringe benefits or other compensation; and (B) to which the Company or any of its Subsidiaries or any of its ERISA Affiliates maintains, contributes to or has any obligation or liability (contingent or otherwise) thereunder for current or former
directors, officers or employees of the Company or any of its Subsidiaries (the “Employees”) or to which the Company or any of its Subsidiaries has any obligation or liability (contingent or otherwise); provided, however,
that neither a Governmental Program nor any plan, agreement or arrangement providing for “at will” employment which can be terminated without liability in excess of $50,000 shall constitute a Company Plan. “Governmental
Program” shall mean a plan, program or other arrangement to which the Company or its Subsidiaries is required to contribute by applicable Law; for clarity and not by way of limitation, payments by the Company pursuant to The Federal
Insurance Contributions 

  

 18 

 
Act are payments to a Governmental Program. As of the date of this Agreement no Company Plan which is subject to ERISA is a “multiemployer plan,”
as defined in Section 3(37) or 4001(a)(3) of ERISA (a “Multiemployer Plan”), or is or has been subject to Sections 4063 or 4064 of ERISA. 
  
 (b) True, current and complete copies of the following documents, with respect to each of the Company Plans, have been delivered or made available to
Parent by the Company, to the extent applicable: (i) any plans (including all amendments thereto) and any related trust documents, insurance contracts or other funding arrangements (including amendments thereto); (ii) the most recent Forms 5500 and
all schedules thereto and the most recent actuarial report, if any; (iii) the most recent IRS determination letter; and (iv) summary plan descriptions. 
  
 (c) The Company Plans are being and have been maintained, funded and administered in all material respects, in accordance with their terms and with all
applicable provisions of ERISA, the Code and other applicable Laws. 
  
 (d) Each Company Plan that is intended to meet the requirements for country specific tax-favored treatment under Subchapter B of Chapter 1 of Subtitle A of the Code (in the case of tax-favored treatment for US federal income tax purposes)
or other applicable Laws (other than the Laws of the United States or jurisdictions located within the United States and its territories) meets such requirements, including: (i) any Company Plans intended to qualify under Section 401 of the Code are
so qualified; and (ii) any trusts intended to be exempt from federal income taxation under Section 501 of the Code are so exempt. Nothing has occurred or is reasonably expected to occur with respect to the operation of the Company Plans that,
notwithstanding the taking of corrective action by the Company, would reasonably be expected to cause the loss of such tax favored treatment, qualification or exemption, or the imposition of any liability, penalty or tax under ERISA, the Code or
other applicable Law. 
  
 (e) Neither the Company, nor any of its
Subsidiaries nor any other Person who is treated as a single employer together with the Company or any of its Subsidiaries pursuant to Section 414(b), (c), (m) (o) of ERISA (all of the foregoing, “ERISA Affiliates”) maintains,
sponsors, contributes to, has any obligation to contribute to, or has any liability or potential liability under or with respect to (i) any “defined benefit plan” as defined in Section 3(35) of ERISA or any other plan subject to the
funding requirements of Section 412 of the Code or Section 302 of Title IV of ERISA, or (ii) any Multiemployer Plan. Neither the Company nor any Subsidiaries nor any of their ERISA Affiliates have any liability or potential liability to the Pension
Benefit Guaranty Corporation or otherwise under Title IV of ERISA. 
  
 (f) With respect to each Company Plan, all contributions (including all employer contributions and employee salary reduction contributions) that are due have been made within the time periods prescribed by ERISA and the Code, and all
contributions for any period ending on or before the Closing Date that are not yet due have been made or properly accrued. All premiums or other payments for all periods ending on or prior to the Closing Date have been paid or properly accrued with
respect to 

  

 19 

 
each Company Plan that is an employee welfare benefit plan (as defined in Section 3(1) of ERISA). As of the date of this Agreement, none of the Company Plans
has any material unfunded liabilities that are not accurately reflected on the latest balance sheet included in the Filed Company SEC Documents. 
  
 (g) Neither the Company nor any of its Subsidiaries or ERISA Affiliates, or any organization to which the Company is a successor or parent corporation
within the meaning of Section 4069(b) of ERISA, has engaged in any transaction within the meaning of Section 4069 or 4212(c) of ERISA as to which the Company or any of its Subsidiaries has any obligation or liability, contingent or otherwise.

  
 (h) None of the Company Plans provide for post-employment life
or health insurance, or other welfare benefits coverage for any participant or any beneficiary of a participant, except as may be required under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) or
other applicable Laws. Each of the Company and any ERISA Affiliate which maintains a “group health plan” within the meaning Section 5000(b)(1) of the Code has complied with the requirements of Section 4980B of the Code, COBRA, Part 6 of
Subtitle B of Title I of ERISA and any similar statute. 
  
 (i)
Except as provided in any Company Stock Plan or in any employment agreement disclosed in the Company Disclosure Schedule, neither the execution and delivery of this Agreement nor the consummation of the Transactions will: (i) result in any payment
becoming due to any Employee; (ii) increase any benefits otherwise payable under any Company Plan; or (iii) result in the acceleration of the time of payment or vesting of any such benefits under any such plan. 
  
 (j) No stock or other security issued by the Company or any of its
Subsidiaries forms a material part of the assets of any Company Plan. For purposes of this Section 3.11(j), a Company Stock Plan shall not be deemed to be a Company Plan. 
  
 (k) None of the current Employees is represented in his or her capacity as an employee of the Company or any of its
Subsidiaries by any labor organization or works council or similar representative. Neither the Company nor any of its Subsidiaries has recognized any labor organization, nor has any labor organization been elected as the collective bargaining agent
of any Employees, nor is the Company or any of its Subsidiaries a party to any collective bargaining agreement or union contract recognizing any labor organization as the bargaining agent of any Employees. There is no union organization activity
involving any of the Employees, pending or, to the Knowledge of the Company, threatened in writing. There is no picketing, pending or, to the Knowledge of the Company, threatened in writing, and there are no strikes, slowdowns, work stoppages,
lockouts, arbitrations or other similar labor disputes involving any of the Employees pending or, to the Knowledge of the Company, threatened in writing. There has been no “mass layoff” or “plant closing” (as defined by the
Worker Adjustment and Retraining Notification Act and any similar state or local “mass layoff” or “plant closing” law) with respect to the Company or any of its Subsidiaries since January 1, 2003. To the Knowledge of the Company,
there is no unfair labor practice charge or other complaint 

  

 20 

 
pending or threatened in writing against the Company or any of its Subsidiaries before the National Labor Relations Board or the Equal Employment Opportunity
Commission or any other agency responsible for the prevention of unlawful employment practices. To the Knowledge of the Company, as of the date hereof, no executive officer or other key employee of the Company or any of its Subsidiaries is a party
to or bound by any noncompetition, employment or consulting agreement that would reasonably be expected to have an adverse effect on the performance by such executive officer or key employee of any of his duties or responsibilities as an executive
officer or key employee of the Company or such Subsidiary, as applicable. 
  
 SECTION 3.12 Environmental Matters. 
  
 (a) The Company and each of its Subsidiaries has complied and is in compliance in all material respects with all applicable Environmental Laws. Neither the Company nor any of its Subsidiaries has received any notice
of any obligation, liability, order, settlement, judgment, injunction or decree relating to or arising under Environmental Laws. To the Knowledge of the Company, no facts, circumstances or conditions exist with respect to the Company or any of its
Subsidiaries that would, individually or in the aggregate, reasonably be expected to give rise to Environmental Liabilities to the Company or its Subsidiaries in excess of $500,000. 
  
 (b) The Company has made available to Parent copies of all environmentally related audits, studies, reports, analyses and
results of investigations that are in the Company’s or any of its Subsidiaries’ possession or under its or their reasonable control with respect to currently or previously owned, leased or operated properties of the Company or any of its
Subsidiaries. 
  
 (c) Except to the extent the following would
not, individually or in the aggregate, reasonably be expected to give rise to Environmental Liabilities in excess of $500,000, to the Knowledge of the Company, there is not now, nor has there been in the past, on, in or under any real property
currently or previously owned, leased or operated by the Company or any of its Subsidiaries or its or their predecessors: (i) any underground storage tanks, above-ground storage tanks, dikes or impoundments; (ii) any asbestos-containing materials;
(iii) any polychlorinated biphenyls; (iv) any radioactive substances; or (v) any other substance that would give rise to any liabilities or investigative, corrective or remedial obligations pursuant to any Environmental Laws. 
  
 (d) For purposes of this Agreement: 
  
 (i) “Environmental Laws” means all Laws
relating in any way to the environment, preservation or reclamation of natural resources, the presence, management or Release of, or exposure to, Hazardous Materials, or to human health and safety, including the Comprehensive Environmental Response,
Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. App. § 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et
seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic 

  

 21 

 
Substances Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. § 136 et
seq.), and the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.), as each has been amended and the regulations promulgated pursuant thereto and all analogous state, local or foreign laws and regulations.

  
 (ii) “Environmental
Liabilities” means, with respect to any Person, all liabilities, obligations, responsibilities, remedial actions, losses, damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and
consultants and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any other Person or arising under any Environmental Law, in any case to the extent based upon or
arising under any Environmental Law, environmental Permit or order or agreement with any Governmental Authority or other Person under Environmental Laws. 
  
 (iii) “Hazardous Materials” means any material, substance of waste that is regulated, classified, or otherwise
characterized under or pursuant to any Environmental Law as “hazardous,” “toxic,” “pollutant,” “contaminant,” “radioactive” or words of similar meaning or effect, including petroleum and its
by-products, asbestos, polychlorinated biphenyls, radon, urea formaldehyde insulation, chlorofluorocarbons and all other ozone-depleting substances. 
  
 (iv) “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, disposing or migrating into or through the environment or any natural or man-made structure. 
  
 SECTION 3.13 Contracts. 
  
 (a) Set forth in Section 3.13(a) of the Company Disclosure Schedule is a list of each of the following Contracts to which the Company or any of its
Subsidiaries is a party and under which the Company or any of its Subsidiaries has any rights or obligations as of the date of this Agreement: (i) each Contract that would be required to be filed as an exhibit to a Registration Statement on Form S-1
under the Securities Act or an Annual Report on Form 10-K under the Exchange Act if such registration statement or report was filed by the Company with the SEC on the date of this Agreement; (ii) each Contract that limits, curtails or restricts in
any material respect the ability of the Company or any of its Subsidiaries to compete in any geographic area or line of business or that contains any “most favored nation” provisions granted by the Company or any of its Subsidiaries; (iii)
each joint venture or other similar agreement or other Contract involving the purchase or disposition of any business or any material assets; (iv) each indemnification, employment or other Contract with any director, officer or other Affiliate of
the Company or its Subsidiaries; (v) each loan or credit agreement, mortgage, indenture, note or other Contract or instrument evidencing indebtedness for borrowed money by the Company or any of its Subsidiaries or any Contract or instrument pursuant
to which indebtedness for borrowed money is guaranteed by the Company or any of its 

  

 22 

 
Subsidiaries or any Contract relating to the mortgaging, pledging or otherwise placing a Lien on any material asset or material group of assets of the
Company or any of its Subsidiaries; (vi) each Contract under which the Company or any of its Subsidiaries has advanced or loaned any amount to any third party (excluding, for avoidance of doubt, trade accounts receivable incurred in the ordinary
course of business), (vii) each customer or supply Contract (including customer maintenance and hosting Contracts) of the Company or any Subsidiary of the Company that involved payments to or from the Company or any Subsidiary of the Company in
fiscal year 2004 in excess of $100,000 or for which payments to or from the Company or any Subsidiary in fiscal year 2005 are reasonably expected to be in excess of $100,000; (viii) each “single source” supply Contract of the Company or
any Subsidiary of the Company; (ix) each exclusive sales representative or distribution Contract; (x) each collective bargaining agreement; (xi) each lease or rental Contract involving real property; (xii) each lease or rental Contract involving
personal property and payments in excess of $100,000 per year; (xiii) each Contract pursuant to which the Company or any of its Subsidiaries receives consulting services that is not terminable by the Company or such Subsidiary on notice of 60 days
or less; (xiv) each warranty agreement with respect to the Company’s or its Subsidiaries’ services or products, other than warranties granted in the ordinary course of business; and (xv) each commitment or agreement to enter into any of
the foregoing (each Contract required to be listed on Section 3.13(a) of the Company Disclosure Schedule and each Contract required to be listed on Section 3.16(a) of the Company Disclosure Schedule which, in the case of Section 3.16(a), is material
to the business of the Company and its Subsidiaries, taken as a whole, being referred to as a “Material Contract”). The Company has made available to Parent copies of each Material Contract in existence as of the date of this
Agreement, together with all amendments and supplements thereto. 
  
 (b) Each of the Material Contracts is valid, binding and in full force and effect and is enforceable in accordance with its terms by the Company and its Subsidiaries party thereto, subject to the Bankruptcy and Equity Exception. Neither the
Company nor any of its Subsidiaries is in default in any material respect under any Material Contract, nor, to the Knowledge of the Company, does any condition exist that, with notice or lapse of time or both, would constitute a default in any
material respect thereunder by the Company or its Subsidiaries party thereto. To the Knowledge of the Company, no other party to any Material Contract is in default in any material respect thereunder, nor does any condition exist that with notice or
lapse of time or both would constitute a default in any material respect by any such other party thereunder. 
  
 SECTION 3.14 Real Property. 
  
 (a) None of the Company or its Subsidiaries own any real property. 
  
 (b) Section 3.14(b) of the Company Disclosure Schedule identifies each Contract pursuant to which the Company or any of its
Subsidiaries leases real property to or from any other Person as of the date of this Agreement. All real property leased to the Company or any of its Subsidiaries, including all buildings, structures, fixtures and other improvements leased to the
Company or any of its Subsidiaries, are referred to as the “Company Real Property.” The present use and operation of the Company Real Property is authorized by, and is in compliance in all material respects with, all applicable
zoning, land use, building, fire, health, labor, safety and other Laws. 
  

 23 

 SECTION 3.15 Title to Properties. The Company and each of its Subsidiaries: (a) has good title to
all properties and other assets which are reflected on the unaudited consolidated balance sheet of the Company and its Subsidiaries as of September 30, 2004 as being owned by the Company or one of its Subsidiaries (or acquired after the Balance
Sheet Date) and which are, individually or in the aggregate, material to the business of the Company and its Subsidiaries taken as a whole (except properties sold or otherwise disposed of since the Balance Sheet Date in the ordinary course of
business consistent with past practice and not in violation of this Agreement), free and clear of all Liens except Permitted Liens; and (b) is the lessee or sublessee of all leasehold estates and leasehold interests reflected in the Filed Company
SEC Documents (or acquired after the Balance Sheet Date) which are, individually or in the aggregate, material to the business of the Company and its Subsidiaries taken as a whole (other than any such leaseholds whose scheduled terms have expired
subsequent to the date of such Filed Company SEC Documents). The Company and each of its Subsidiaries enjoys peaceful and undisturbed possession under all such leases in all material respects. 
  
 SECTION 3.16 Intellectual Property. 
  
 (a) Section 3.16(a) of the Company Disclosure Schedule sets forth a
complete and correct list (as of the date of this Agreement) of all the following Intellectual Property: (i) all Software currently owned, and licensed or sold, by the Company or any of its Subsidiaries (the “Software Products”),
listed by product line and the most recently released version level, (ii) all patented and registered Intellectual Property and all applications therefor, (iii) all material unregistered trademarks and service marks, (iv) other than customer
contracts and marketing, alliance or partner program agreements entered into in the ordinary course of business, all license agreements to which the Customer or any of its Subsidiaries is a licensor of Intellectual Property, (v) all software license
agreements in which the Company or any of its Subsidiaries is a licensee of Software (other than “open-source” software): (a) which the Company or any of its Subsidiaries embeds, integrates, redistributes, resells or otherwise sublicenses
with Software Products (“Bundled Software”), or (b) used by the Company to support the development of its Software Products (other than commercially available off-the-shelf Software purchased or licensed for less than a total cost
of $25,000) (“Development Software”), (vi) all patent license agreements in which the Company or any of it Subsidiaries is a licensee of any patents or patent applications, (vii) all trademark license agreements in which the Company
or any of its Subsidiaries is a licensee of any trademarks or service marks (it being understood that marketing agreements and alliance program agreements, which may contain limited trademark licenses, are not considered trademark license agreements
for purposes hereof), (viii) all settlement agreements relating to Intellectual Property entered into by the Company or any of its Subsidiaries, (ix) all standstill and consent agreements entered into by the Company or any of its Subsidiaries
relating to trademarks, (x) all standalone intellectual property indemnification agreements entered into by the Company or any of its Subsidiaries, and (xi) all standalone source code escrow agreements entered into by the 

  

 24 

 
Company or any of its Subsidiaries pursuant to which the source code for any of the Software Products has been deposited with a third-party escrow agent by
the Company or any of its Subsidiaries. For avoidance of doubt, the Company is not required to list in Section 3.16(a) of the Disclosure Schedule any customer contracts or marketing, alliance or partner program agreements entered into in the
ordinary course of business, any confidentiality or nondisclosure agreements, any software license agreements for third-party software that is not Bundled Software or Development Software, or any employee confidentiality and proprietary rights
agreements. 
  
 (b) The Company and its Subsidiaries are the sole
and exclusive owners of (including with respect to Schedules 3.16(a)(i) to 3.16(a)(iv) of the Company Disclosure Schedule), or have a valid right to use, sell or license (including with respect to Schedule 3.16(a)(v-vii)), as
the case may be, all Intellectual Property necessary to enable the Company and its Subsidiaries to conduct their business in the manner in which such businesses are currently being conducted (collectively, the “Company Intellectual
Property”). The Company Intellectual Property owned by the Company and its Subsidiaries is not subject to any Lien (other than Permitted Liens). 
  
 (c) To the Knowledge of the Company, the products and operation of the business of the Company and its Subsidiaries and the use of the Company
Intellectual Property in connection therewith do not infringe, misappropriate, constitute an unauthorized use of or otherwise violate any Intellectual Property right of any third party. Since January 1, 2002 the Company and its Subsidiaries have not
received any written notices alleging or claiming that the Company and its Subsidiaries are infringing, misappropriating, making unlawful use of or otherwise violating any Intellectual Property from any third party, or any written demands or offers
to license patents with regard to which the Company consulted with outside patent counsel. 
  
 (d) As of the date of this Agreement, neither the Company nor any of its Subsidiaries has licensed any of the Company Intellectual Property to any Person on an exclusive basis, nor has the Company or any of its
Subsidiaries entered into any Contract limiting its ability to exploit fully any of the Company Intellectual Property owned by the Company and its Subsidiaries (excluding Intellectual Property licensed on a nonexclusive basis to customers in the
ordinary course of business). 
  
 (e) No non-public, proprietary
Company Intellectual Property owned by the Company and its Subsidiaries that is material to the business of the Company and its Subsidiaries taken as a whole as currently conducted, has been authorized to be disclosed or, to the Knowledge of the
Company, actually disclosed by the Company or any of its Subsidiaries to any employee or third party other than pursuant to a non-disclosure agreement or other confidentiality obligations that protect the proprietary interests of the Company and its
Subsidiaries in and to such Company Intellectual Property. The Company and its Subsidiaries have entered into written confidentiality and proprietary rights agreements with all of its past and present employees who made material contributions to the
development of the Software Products or other Company Intellectual Property acknowledging the Company or Subsidiary ownership of all Software Products, inventions and other Intellectual Property created or developed by its 

  

 25 

 
employees within the scope of their employment. The Company and its Subsidiaries have taken reasonable security measures to protect the confidentiality of
confidential Company Intellectual Property owned by the Company and its Subsidiaries. The Company and its Subsidiaries have also taken reasonable security measures to protect the confidentiality of, and have not disclosed or authorized the
disclosure of, any confidential, proprietary Company Intellectual Property that is not owned by the Company and its Subsidiaries, except for instances in which the failure to take such security measures, or the disclosure of or authorization to
disclose such Company Intellectual Property, did not breach any legal duty owed by the Company or any of its Subsidiaries to a third party with respect to such Company Intellectual Property. 
  
 (f) To the Knowledge of the Company, all material Intellectual Property owned
by the Company or any of its Subsidiaries is valid and enforceable (except with respect to items for which applications are pending). The Company and its Subsidiaries have not engaged in any patent or copyright misuse that would prevent the Company
and its Subsidiaries from enforcing their patents or copyrights. No claim by any third party contesting the ownership of any registered Company Intellectual Property owned by the Company and its Subsidiaries or Company Intellectual Property owned by
the Company and its Subsidiaries that relates to the Software Products, or the validity or enforceability of any issued patent, registered trademark, or copyright owned by the Company and its Subsidiaries, is currently outstanding or, to the
Knowledge of the Company, is threatened in writing. As of the date of this Agreement, no claim by any third party contesting the ownership of any Company Intellectual Property owned by the Company and its Subsidiaries that does not relate to the
Software Products, or the validity or enforceability of any pending patent or trademark application of the Company and its Subsidiaries, is currently outstanding or, to the Knowledge of the Company, is threatened in writing. 
  
 (g) To the Knowledge of the Company as of the date of this Agreement, no
third party is infringing, violating, misusing or misappropriating any material Intellectual Property of the Company or any of its Subsidiaries, and no such claims have been made against a third party by the Company or any of its Subsidiaries since
January 1, 2002 (other than claims which have been resolved to the satisfaction of the Company). 
  
 (h) The sale or licensing of the Software Products, including without limitation, any Bundled Software, is not governed, in whole or in part, by the terms
of the GNU General Public License or any other license requiring the Company to disclose source code which it normally holds in confidence. There are no viruses, worms, or Trojan horses in any of the Software Products (other than any viruses, worms
or Trojan horses that may have been introduced to the Software Products after the Software Products were shipped or delivered by the Company or a Subsidiary of the Company). The Company is in possession of the source code (if permitted under an
applicable license) and object code for all Bundled Software and Development Software, and all related documentation, necessary for the effective use, maintenance and other exploitation of such Software. 
  

 26 

 (i) The Software Products and all Development Software owned by the Company or its Subsidiaries were: (i)
developed by employees of the Company or any of its Subsidiaries working within the scope of their employment; (ii) developed by officers, directors, agents, consultants, contractors, subcontractors or others who have executed written agreements
containing assignment provisions in favor of the Company or a Subsidiary of the Company as assignee that have conveyed to the Company or a Subsidiary of the Company ownership of all of such person’s Intellectual Property rights in the Software
Products (other than rights, such as moral rights, that cannot be assigned as a matter of law); or (iii) acquired in connection with acquisitions made by the Company and its Subsidiaries. All material Software Product customizations developed by the
Company or its Subsidiaries for its customers are owned by the Company or its Subsidiaries or licensed back to the Company or a Subsidiary of the Company by the customer. 
  
 (j) Except for source code escrow provisions and agreements which the Company or its Subsidiaries may have undertaken in the
ordinary course of business, the Company and its Subsidiaries have not disclosed any material portion of the source code for any of the Software Products to any third party and to the Knowledge of the Company, no third party has asserted any right
to access any source code for any of the Software Products, including pursuant to any release provision of any source code escrow provisions or agreements. 
  
 (k) The Company and its Subsidiaries have collected, used, imported, exported and protected all personally identifiable information relating to
individuals or customers in accordance with their own privacy policies and in compliance in all material respects with applicable law, including those governing the flow of such information across national borders. 
  
 SECTION 3.17 Insurance. Section 3.17 of the Company Disclosure
Schedule sets forth a list of all material insurance policies of the Company and its Subsidiaries as of the date of this Agreement (the “Policies”) and a description of the type of insurance covered by the Policies, the dollar limit
of the Policies and the annual premiums for the Policies. The Policies are in full force and effect. Neither the Company nor any of its Subsidiaries is in material breach or default, and neither the Company nor any of its Subsidiaries have taken any
action or failed to take any action which, with notice or the lapse of time, would constitute such a breach or default, or permit termination or modification of any of the Policies. No notice of cancellation or termination has been received by the
Company with respect to any such Policy (except with respect to Policies that have been replaced with similar policies). Neither the Company nor any of its Subsidiaries maintains any material self-insurance or co-insurance programs. Neither the
Company nor any of its Subsidiaries has any disputed claim or claims with any insurance provider relating to any claims for insurance coverage under any of the Policies. 
  
 SECTION 3.18 Opinion of Financial Advisor. Credit Suisse First Boston LLC (“CSFB”) has delivered its
opinion to the effect that subject to the various assumptions and qualifications set forth therein, the Per Share Amount is fair from a financial point of view to the stockholders of the Company (the “Fairness Opinion”), other than
affiliates of the Company. 
  

 27 

 SECTION 3.19 Brokers and Other Advisors. Except for CSFB, the fees and expenses of which will be
paid by the Company, no broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission, or the reimbursement of expenses, in connection with
the Transactions based upon arrangements made by or on behalf of the Company or any of its Subsidiaries. The Company has delivered or made available to Parent a copy of the Company’s engagement letter with CSFB, which letter describe all fees
payable to CSFB in connection with the Transactions, all agreements under which any such fees or any expenses are payable and all indemnification and other agreements related to the engagement of CSFB by the Company. 
  
 SECTION 3.20 State Takeover Statutes. No “fair price,”
“moratorium,” “control share acquisition,” “business combination” or other similar antitakeover statute or regulation enacted under state or federal laws in the United States (with the exception of Section 203 of the
DGCL (“Section 203“)) applicable to the Company is applicable to the Merger or the other Transactions. Assuming the accuracy of the representations made in Section 4.8, the action of the Board of Directors of the Company in
approving this Agreement (and the Transactions) and the voting agreements referred to above (and the transactions contemplated thereby) is sufficient to render inapplicable to this Agreement (and the Transactions) and the voting agreements referred
to above (and the transactions contemplated thereby) the restrictions on “business combinations” (as defined in Section 203) as set forth in Section 203. 
  
 SECTION 3.21 Related Party Transactions. To the Company’s Knowledge as of the date of this Agreement, between
the date of the Company’s last proxy statement filed with the SEC and the date of this Agreement, no event occurred that would be required to be reported by the Company pursuant to Item 404 of Regulation S-K promulgated by the SEC. 

 
 SECTION 3.22 Change of Control. Section 3.22 of the Company
Disclosure Schedule sets forth the amount of any compensation or remuneration which is or may become payable to any employee of the Company or any of its Subsidiaries by the Company or any of its Subsidiaries pursuant to any agreement or plan by
reason, in whole or in part, of the execution and delivery of this Agreement or the consummation of the Transactions, other than solely as a stockholder of the Company or as a holder of Options, Rights or Stock Awards. 
  

 28 

 ARTICLE 4 
  

Representations and Warranties of Parent and Merger Sub 
  

Parent and Merger Sub jointly and severally represent and warrant to the Company as follows: 
  
 SECTION 4.1 Organization, Standing and Corporate Power. Each of
Parent and Merger Sub is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction in which it is incorporated. 
  
 SECTION 4.2 Authority; Noncontravention. 
  
 (a) Each of Parent and Merger Sub has all necessary corporate power and authority to execute and deliver this Agreement and to perform their respective
obligations hereunder and to consummate the Transactions. The execution, delivery and performance by Parent and Merger Sub of this Agreement, and the consummation by Parent and Merger Sub of the Transactions, have been duly authorized and approved
by their respective Boards of Directors (and promptly following the execution hereof will be adopted by Parent as the sole stockholder of Merger Sub) and no other corporate action on the part of Parent and Merger Sub is necessary to authorize the
execution, delivery and performance by Parent and Merger Sub of this Agreement and the consummation by them of the Transactions. This Agreement has been duly executed and delivered by Parent and Merger Sub and, assuming due authorization, execution
and delivery hereof by the Company, constitutes a legal, valid and binding obligation of each of Parent and Merger Sub, enforceable against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception. 
  
 (b) Neither the execution and delivery of this Agreement by Parent and Merger
Sub, nor the consummation by Parent or Merger Sub of the Transactions, nor compliance by Parent or Merger Sub with any of the terms or provisions hereof, will: (i) conflict with or violate any provision of the certificate of incorporation or bylaws
of Parent or Merger Sub; or (ii) assuming that the authorizations, consents and approvals referred to in Section 4.3 are obtained and the filings referred to in Section 4.3 are made: (A) violate any Law, judgment, writ or injunction of any
Governmental Authority applicable to Parent or any of its Subsidiaries or any of their respective properties or assets; or (B) violate, conflict with, result in the loss of any benefit under, constitute a default (or an event which, with notice or
lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective
properties or assets of, Parent or Merger Sub or any of their respective Subsidiaries under, any of the terms, conditions or provisions of any Contract to which Parent, Merger Sub or any of their respective Subsidiaries is a party, or by which they
or any of their respective properties or assets may be bound or affected except, in the case of clause “(ii)” of this sentence, for such violations, conflicts, losses, defaults, terminations, cancellations, accelerations or Liens as,
individually or in the aggregate, would not reasonably be expected to prevent or materially delay or materially impair the ability of Parent or Merger Sub to consummate the Transactions (a “Parent Material Adverse Effect”).

  

 29 

 SECTION 4.3 Governmental Approvals. Except for: (a) filings required under, and compliance with
applicable requirements of, the Securities Act and the Exchange Act; (b) the filing of the Certificate of Merger with the Secretary of State of the State of Delaware pursuant to the DGCL; and (c) filings required under, and compliance with other
applicable requirements of, the HSR Act and Foreign Antitrust Laws, no consents or approvals of, or filings, declarations or registrations with, any Governmental Authority are necessary for the execution and delivery of this Agreement by Parent and
Merger Sub or the consummation by Parent and Merger Sub of the Transactions, other than such other consents, approvals, filings, declarations or registrations that, if not obtained, made or given, would not, individually or in the aggregate,
reasonably be expected to have a Parent Material Adverse Effect. 
  
 SECTION 4.4 Information Supplied. The information furnished to the Company by or on behalf of Parent and Merger Sub for inclusion in the Proxy Statement will not, at the time the Proxy Statement is first mailed to the stockholders of
the Company and at the time of such Company Stockholders Meeting, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. 
  
 SECTION 4.5 Ownership and Operations of Merger Sub. Parent owns beneficially and of record all of the outstanding capital stock of Merger Sub. Merger Sub was formed solely for the purpose of engaging in the Transactions, has engaged
in no other business activities and has conducted its operations only as contemplated hereby. 
  
 SECTION 4.6 Financing. Parent will obtain and have at the Effective Time, sufficient cash resources that, together with the cash that Parent may be permitted to cause the Surviving Corporation to deposit with
the Paying Agent immediately following the Effective Time in accordance with the provisions of Section 2.3(a), will enable it to pay the aggregate Merger Consideration pursuant to this Agreement. Parent has provided the Company a copy of the
commitment letter from Golden Gate Private Equity, Inc. and the parties named therein addressed to Parent and the Company relating to the financing to be provided in connection with the Transactions (the “Commitment Letter”). The
Commitment Letter is in full force and effect. 
  
 SECTION 4.7
Brokers and Other Advisors. No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the Transactions based
upon arrangements made by or on behalf of Parent or any of its Subsidiaries. 
  
 SECTION 4.8 Ownership of Company Capital Stock. Neither Parent nor Merger Sub “own” (within the meaning of Section 203) or have, within the last three years, “owned” any shares of Company
Capital Stock. 
  

 30 

 ARTICLE 5 
  

Covenants and Agreements 
  
 SECTION 5.1 Preparation of the Proxy Statement; Stockholder Meeting. 
  
 (a) As promptly as reasonably practicable following the date of this Agreement, the Company shall prepare and file the Proxy
Statement with the SEC. The Company shall use commercially reasonable efforts to: (i) respond to any comments on the Proxy Statement or requests for additional information from the SEC with respect thereto as soon as practicable after receipt of any
such comments or requests and to have the Proxy Statement cleared by the SEC; and (ii) cause the Proxy Statement to be mailed to the stockholders of the Company as promptly as practicable following clearance by the SEC. The Company shall promptly:
(A) notify Parent upon the receipt of any such comments or requests; and (B) provide Parent with copies of correspondence between the Company and its Representatives, on the one hand, and the SEC and its staff, on the other hand, with respect to the
Proxy Statement. Prior to responding to such comments or requests or the filing or mailing of the Proxy Statement: (1) the Company shall provide Parent with a reasonable opportunity to review and comment on any drafts of the Proxy Statement and
related correspondence and filings; and (2) to the extent practicable, the Company and its outside counsel shall permit Parent and its outside counsel to participate in communications with the SEC and its staff (including all meetings and telephone
conferences) relating to the Proxy Statement, this Agreement or any of the Transactions. Subject to Section 5.3(c), the Proxy Statement shall include the Company Board Recommendation and a copy of the written opinion of CSFB referred to in Section
3.18. If at any time prior to the Company Stockholders Meeting any event shall occur, or fact or information shall be discovered by the Company, that is required to be set forth in an amendment of or a supplement to the Proxy Statement, the Company
shall, in accordance with the procedures set forth in this Section 5.1(a), prepare and file with the SEC such amendment or supplement as soon thereafter as is reasonably practicable and cause such amendment or supplement to be distributed to the
stockholders of the Company if and to the extent required by applicable Law. Parent agrees to furnish to the Company all information concerning Parent and its Subsidiaries, officers, directors and stockholders as may be reasonably requested in
connection with the foregoing. 
  
 (b) The Company shall, as soon
as practicable following the clearance of the Proxy Statement by the SEC, establish a record date for, duly call, give notice of, convene and hold a meeting of its stockholders (the “Company Stockholders Meeting”) to obtain the
Company Stockholder Approval. Subject to Section 5.3(c), the Company shall, through its Board of Directors, make the Company Board Recommendation and, unless the board of directors of the Company (or any committee thereof) shall have taken any of
the actions referred to in the second sentence of Section 5.3(c), shall use its commercially reasonable efforts to obtain the Company Stockholder Approval. 
  
 SECTION 5.2 Conduct of Business of the Company. Except as permitted or contemplated by this Agreement, as set forth on Schedule 5.2 or as required

  

 31 

 
by applicable Law, during the period from the date of this Agreement until the Effective Time, unless Parent otherwise consents in writing (which consent
will not be unreasonably withheld or delayed), the Company shall, and shall cause each of its Subsidiaries to: (x) conduct its business in the ordinary course consistent with past practice; (y) use commercially reasonable efforts to comply in all
material respects with all applicable Laws and the requirements of all Material Contracts; and (z) use commercially reasonable efforts to: (i) maintain and preserve intact its business organization and the goodwill of those having business
relationships with it; and (ii) retain the services of its present officers and key employees. Without limiting the generality of the foregoing, except as expressly permitted or contemplated by this Agreement, as set forth on Schedule 5.2 or as
required by applicable Law, during the period from the date of this Agreement until the Effective Time, the Company shall not, and shall not permit any of its Subsidiaries to, unless Parent otherwise consents in writing (which consent will not,
solely with respect to clauses “(b),” “(d),” “(e),” “(g),” “(i),” “(j),” “(k)” and “(m)” below and, to the extent relating to the foregoing, clause “(p)”
below, be unreasonably withheld or delayed): 
  
 (a) (i) authorize
for issuance, issue, sell, grant, dispose of, pledge or otherwise encumber any notes, bonds or other debt securities, shares of its capital stock, voting securities, equity interests or any securities or rights convertible into, exchangeable or
exercisable for or evidencing the right to subscribe for any shares of its capital stock, voting securities or equity interests, or any rights, warrants, options, calls, commitments or any other agreements of any character to purchase or acquire any
shares of its capital stock, voting securities, equity interests or any securities or rights convertible into, exchangeable or exercisable for or evidencing the right to subscribe for, any shares of its capital stock, voting securities or equity
interests; provided, however, that the Company may issue shares of Company Common Stock to participants in the ESPP in accordance with the terms thereof, or upon the exercise of options to purchase shares of Company Common Stock, in each case
that are outstanding on the date of this Agreement and in accordance with the terms thereof; (ii) redeem, purchase or otherwise acquire any outstanding shares of Company Capital Stock, or any rights, warrants or options to acquire any shares of
Company Capital Stock, other than pursuant to any restricted stock purchase agreement or any similar Contract in existence as of the date of this Agreement and disclosed to Parent; (iii) declare, set aside for payment or pay any dividend on, or make
any other distribution in respect of, any shares of Company Capital Stock or otherwise make any payments to its stockholders in their capacity as such (other than dividends by a direct or indirect wholly owned Subsidiary of the Company to its
parent); or (iv) split, combine, subdivide or reclassify any shares of Company Capital Stock; 
  
 (b) establish or acquire any Subsidiary; 
  
 (c) incur any indebtedness for borrowed money or guarantee any indebtedness, other than borrowings from the Company by a direct or indirect wholly owned Subsidiary of the Company or under the Company’s and its
Subsidiaries’ existing credit facilities, in any case in the ordinary course of business consistent with past practice; 
  

 32 

 (d) sell, transfer, lease, license, mortgage, encumber or subject to any Lien (other than Permitted
Liens) or otherwise dispose of (including pursuant to a sale-leaseback transaction or an asset securitization transaction) any of its properties or assets (including securities of Subsidiaries) to any Person, except: (i) licenses granted by the
Company in the ordinary course of business to distributors, resellers and customers for customers’ use of the Company’s products and services; (ii) pursuant to Contracts in force at the date of this Agreement and disclosed to Parent; or
(iii) dispositions of obsolete assets; 
  
 (e) make any capital
expenditures, except in the ordinary course of business consistent with past practice and in an amount not in excess of $300,000 in the aggregate for the Company and its Subsidiaries taken as a whole during any three-consecutive month period;

  
 (f) make any acquisition (by purchase of securities or assets,
merger, consolidation or otherwise) of any other Person, business or division or make any investment (by contribution to capital, property transfers, purchase of securities or otherwise) in, or loan (other than to its employees for reimbursable
travel and other business expenses incurred in the ordinary course of business consistent with past practice) to, or any guarantee for the benefit of, any Person; 
  
 (g) make any advance to its employees (other than for reimbursable travel and other business expenses incurred in the
ordinary course of business consistent with past practice); 
  
 (h) increase in any manner the compensation of any of its directors, officers or employees, enter into any indemnification agreement (other than agreements with persons who become directors and officers of the Company after the date of this
Agreement in a form substantially similar to indemnification agreements between the Company and its officers and directors as of the date of the agreement), enter into, establish or amend any employment, consulting, retention, change in control,
collective bargaining, bonus or other incentive compensation, profit sharing, health or other welfare, pension, retirement, severance, deferred compensation or other compensation or benefit plan or agreement with, for or in respect of any
stockholder, director, officer, other employee or consultant, other than as required pursuant to applicable Law or the terms of agreements in effect as of the date of this Agreement and disclosed in the Company Disclosure Schedule; 
  
 (i) hire any employee except for (i) the replacement of any current Employee
whose employment with the Company or any of its Subsidiaries is terminated for any reason (with such replacement employee receiving substantially similar or lesser compensation and benefits as such terminated Employee) and (ii) the hiring of a new
employee who does not replace any current Employee pursuant to clause “(i)” (A) the sum of whose annual noncontingent cash compensation and annual target commission payments does not exceed $150,000 and (B) whose annual noncontingent cash
compensation and annual target commission payments, when aggregated with the annual noncontingent cash compensation and annual target commission payments of all other such new employees, does not exceed $500,000; 
  

 33 

 (j) enter into, or materially amend, modify or supplement any Material Contract outside the ordinary
course of business consistent with past practice (except as may be necessary for the Company to comply with its obligations hereunder) or waive, release, grant, assign or transfer any of its material rights or claims (whether such rights or claims
arise under a Material Contract or otherwise) or settle any material litigation or claim made against the Company; 
  
 (k) except for customer and reseller contracts entered into in the ordinary course of business, renegotiate or enter into any new license, agreement or
arrangement relating to any Intellectual Property sold or licensed by the Company or any of its Subsidiaries; 
  
 (l) make or change any material election concerning Taxes or Tax Returns (other than elections made in the ordinary course of business); 
  
 (m) make any material changes in financial or tax accounting methods,
principles or practices or change an annual accounting period, except insofar as may be required by a change in GAAP or applicable Law; 
  
 (n) amend the Company Charter Documents or the Subsidiary Documents; 
  
 (o) adopt a plan or agreement of complete or partial liquidation, dissolution, restructuring, recapitalization, merger,
consolidation or other reorganization; or 
  
 (p) agree, in
writing or otherwise, to take any of the actions described in clauses “(a)” through “(o)” of this sentence. 
  
 SECTION 5.3 No Solicitation by the Company; Etc. 
  
 (a) The Company shall cause its and its Subsidiaries’ respective directors, officers, financial advisors, attorneys, accountants and agents to (and
the Company shall use commercially reasonable efforts to cause its and its Subsidiaries’ employees (other than officers and directors) to) immediately cease any discussions or negotiations with any Person with respect to a Takeover Proposal
pending on the date of this Agreement (it being understood that commercially reasonable efforts with respect to the employees (other than officers and directors) of the Company and its Subsidiaries shall mean causing such employees to comply with
this sentence promptly after the Company discovers any noncompliance by such employees). The Company shall cause its and its Subsidiaries’ respective directors, officers, financial advisors, attorneys, accountants and agents not to (and the
Company shall use commercially reasonable efforts to cause its and its Subsidiaries’ employees (other than officers and directors) not to): (i) solicit, initiate or knowingly encourage the initiation of any proposals that constitute, or that
would reasonably be expected to lead to, any Takeover Proposal; (ii) 

  

 34 

 
participate in any discussions with any third party regarding, or furnish to any third party any non-public information with respect to, any Takeover
Proposal (it being understood that commercially reasonable efforts with respect to the employees of the Company and its Subsidiaries (other than officers and directors) shall mean causing such employees to comply with this sentence promptly after
the Company discovers any noncompliance by such employees); (iii) enter into any agreement, arrangement or understanding with respect to, or otherwise endorse, any Takeover Proposal; or (iv) terminate, amend, modify or waive any material provision
of any confidentiality or standstill agreement to which the Company is a party (other than involving Parent or its affiliates); provided, however, that notwithstanding anything to the contrary contained in this Section 5.3 or elsewhere
in this Agreement, if the Company receives a bona fide written Takeover Proposal not solicited by the Company in violation of this Section 5.3 that the Board of Directors of the Company (or any committee thereof) determines in good faith is
reasonably likely to result in a Superior Proposal and with respect to which the Board of Directors of the Company (or any committee thereof) determines in good faith, after consulting with outside legal counsel, that the failure to take the
following action would be inconsistent with its fiduciary duties to the Company’s stockholders, then the Company and its Subsidiaries and their respective directors, officers and Representatives may (but only prior to obtaining the Company
Stockholder Approval), in response to such Takeover Proposal: (A) enter into a confidentiality agreement with the Person making such Takeover Proposal; (B) furnish non-public information with respect to the Company and its Subsidiaries to the Person
making such Takeover Proposal (and to such Person’s Representatives), but only if: (1) such Person first enters into a confidentiality agreement with the Company; and (2) concurrently with the delivery to such Person, the Company delivers to
Parent all such information not previously provided to Parent; and (C) participate in discussions and negotiations with such Person (and with such Person’s Representatives) regarding such Takeover Proposal (and take the actions referred to in
clause “(iv)” of this sentence with respect to such Person and such Takeover Proposal in connection with such discussions and negotiations). Solely for purposes of this Section 5.3(a), any action taken by a Person who is not an officer or
director of the Company or one of its Subsidiaries shall not be deemed to be an action taken by the Company or any of its Subsidiaries. 
  
 (b) In addition to the other obligations of the Company set forth in this Section 5.3, promptly (but in any event within one business day) after any
executive officer or director of the Company becomes aware that any proposal has been received by, any information has been requested from or any discussions or negotiations have been sought to be initiated or continued with, the Company in respect
of any Takeover Proposal, the Company shall advise Parent of such proposal, request or other contact (including any terms and conditions thereof and the identity of the person making such proposal, request or other contact and shall advise Parent of
any amendments to such proposal or amendments proposed by the Person making such Takeover Proposal). Prior to taking any of the actions referred to in the proviso of Section 5.3(a), the Board of Directors of the Company shall notify Parent of any
such action it proposes to take with respect to such Takeover Proposal. Without limiting the foregoing, at least two business days prior to withdrawing or modifying the Company Board Recommendation or recommending a Takeover Proposal pursuant to
Section 5.3(c), the Board of Directors of 
  

 35 

 
the Company shall notify Parent of any such action it proposes to take and, during such two business day period, the Board of Directors of the Company (or
any committee thereof) shall negotiate in good faith with Parent with respect to any revised proposal to acquire the Company Common Stock that Parent may make prior to or during such two business day period; provided, however, that if the
Board of Directors of the Company (or any committee thereof) determines in good faith after consulting with outside legal counsel, that the failure to make such withdrawal, modification or recommendation within such two business day period would be
inconsistent with its fiduciary duties to the Company’s stockholders, then such two business day period shall be such shorter period as the Board of Directors of the Company (or any committee thereof) determines is not inconsistent with its
fiduciary duties to the Company’s stockholders (it being agreed and understood that the foregoing proviso shall not apply to or in any way be deemed to shorten the two business day period described in Section 7.1(e)(ii)). 
  
 (c) Except as permitted by this Section 5.3(c): (i) the Board of Directors of
the Company shall not withdraw or modify, or propose publicly to withdraw or modify, in a manner adverse to Parent, the Company Board Recommendation; (ii) neither the Board of Directors of the Company nor any committee thereof shall approve or
recommend, or propose publicly to approve or recommend, any Takeover Proposal; and (iii) neither the Board of Directors of the Company nor any committee thereof shall authorize or cause the Company or any of its Subsidiaries to enter into any letter
of intent, agreement in principle, memorandum of understanding, merger, acquisition, purchase or joint venture agreement related to any Takeover Proposal (other than a confidentiality agreement pursuant to Section 5.3(a)). Notwithstanding the
foregoing or any other provision of this Agreement: (A) the Board of Directors of the Company may withdraw or modify the Company Board Recommendation, any committee of the Board of Directors of the Company may withdraw or modify its recommendation
with respect to the Merger and the Board of Directors of the Company (or any committee thereof) may recommend a Takeover Proposal, if the Board of Directors of the Company (or such committee) determines in good faith after consulting with outside
legal counsel, that the failure to make such withdrawal, modification or recommendation would be inconsistent with its fiduciary duties to the Company’s stockholders; and (B) the Board of Directors of the Company (or any committee thereof) may,
contemporaneously with the termination of this Agreement pursuant to Section 7.1(e)(ii), cause the Company to enter into a letter of intent, agreement in principle, memorandum of understanding, merger, acquisition, purchase or joint venture
agreement or other agreement related to any Takeover Proposal. 
  
 (d) Nothing in this Section 5.3 shall prohibit the Board of Directors of the Company (or any committee thereof) from taking and disclosing to the Company’s stockholders a position contemplated by Rules 14d-9 and 14e-2(a) or Item
1012(a) of Regulation M-A promulgated under the Exchange Act. 
  
 SECTION 5.4 Further Action; Efforts. 
  
 (a) Upon
the terms and subject to the conditions set forth in this Agreement, each of the parties hereto shall, and shall cause their respective Subsidiaries to, use commercially reasonable efforts to take, or cause to be taken, all actions 

  

 36 

 
necessary, proper and advisable under applicable Laws to consummate the Transactions as promptly as practicable. In furtherance and not in limitation of the
foregoing, each party hereto shall: (i) make an appropriate filing of a Notification and Report Form pursuant to the HSR Act with respect to the Transactions as promptly as practicable and supply as promptly as practicable any additional information
and documentary material that may be requested pursuant to the HSR Act; (ii) make any additional filings required by any applicable Competition Law and take all other actions reasonably necessary, proper or advisable to cause the expiration or
termination of the applicable waiting periods under the HSR Act or other Competition Laws, and comply with applicable Foreign Antitrust Laws, as promptly as practicable; and (iii) subject to applicable Laws relating to access to and the exchange of
information, use commercially reasonable efforts to: (A) cooperate with each other in connection with any filing or submission and in connection with any investigation or other inquiry under or relating to any Competition Law; (B) keep the other
parties informed of any communication received by such party from, or given by such party to, the Federal Trade Commission (the “FTC”), the Antitrust Division of the Department of Justice (the “DOJ”) or any other
Governmental Authority and of any communication received or given in connection with any legal, administrative, arbitral or other proceeding by a private party, in each case regarding any of the Transactions; and (C) permit the other parties hereto
to review in advance any communication intended to be given by it to, and consult with the other parties in advance of any meeting or conference with, the FTC, the DOJ or any such other Governmental Authority, and to the extent permitted by the FTC,
the DOJ or such other applicable Governmental Authority, give the other parties the opportunity to attend and participate in such meetings and conferences. 
  
 (b) In furtherance and not in limitation of the covenants of the parties contained in Section 5.4(a), in the event that any legal, administrative,
arbitral or other proceeding is instituted (or threatened to be instituted) by a Governmental Authority or private party challenging any of the Transactions or in the event that any Governmental Authority shall otherwise object to any of the
Transactions, each of Parent, Merger Sub and the Company shall cooperate with each other and use its respective reasonable efforts: (i) to vigorously defend, contest and resist any such proceeding; (ii) to have vacated, lifted, reversed or
overturned any injunction, order, judgment, ruling or decree, whether temporary, preliminary or permanent, that is in effect and that prohibits, prevents or restricts consummation of the Transactions; and (iii) to resolve objections. 
  
 SECTION 5.5 Public Announcements. The initial press release with
respect to the execution of this Agreement shall be a joint press release to be reasonably agreed upon by Parent and the Company. Thereafter, neither the Company nor Parent shall issue or cause the publication of any press release or other public
announcement (to the extent not previously issued or made in accordance with this Agreement) with respect to the Merger, this Agreement or the other Transactions without the prior consent of the other party (which consent shall not be unreasonably
withheld or delayed), except: (a) as may be required by Law or by any applicable listing agreement with a national securities exchange or Nasdaq as determined in the good faith judgment of the party proposing to make such release, in which case
neither the Company nor Parent shall issue or cause the publication of such press release or other public announcement without prior consultation 

  

 37 

 
with the other party, to the extent practicable; and (b) as may be consistent with actions taken by the Company or its Board of Directors (or any committee
thereof) pursuant to Section 5.3(c). 
  
 SECTION 5.6 Access to
Information; Confidentiality. Subject to applicable Laws relating to access to and the exchange of information (and solely to the extent reasonably necessary to consummate the Transactions or plan the post-Closing integration of Parent and the
Company): (a) the Company shall, and shall cause each of its Subsidiaries to, afford to Parent and Parent’s Representatives reasonable access during normal business hours and on reasonable advance notice to the Company’s and its
Subsidiaries’ properties, books, records and Representatives; and (b) the Company shall furnish (or otherwise make available, including through the SEC EDGAR system) promptly to Parent: (i) a copy of each report, schedule and other document
filed, furnished or received by it or any of its Subsidiaries pursuant to the requirements of Federal or state securities Laws; and (ii) all other information concerning its and its Subsidiaries’ business, properties and personnel as Parent may
reasonably request for the purposes referred to above. Except for disclosures permitted by the terms of the letter agreement, dated as of February 9, 2005, between Parent and the Company (as it may be amended from time to time, the
“Non-Disclosure Agreement”), Parent shall hold information received from the Company pursuant to this Section 5.6 in confidence in accordance with the terms of the Non-Disclosure Agreement. No investigation, or information received,
pursuant to this Section 5.6 will affect or modify any of the representations and warranties of the Company. 
  
 SECTION 5.7 Notification of Certain Matters. The Company shall use reasonable efforts to give prompt notice to Parent, and Parent shall use
reasonable efforts to give prompt notice to the Company, of: (a) any notice or other communication received by such party from any Governmental Authority in connection with the Transactions, if the subject matter of such communication would
reasonably be expected to be material to the Company, the Surviving Corporation or Parent; (b) any investigation or legal, administrative, arbitral or other proceeding relating to the Transactions, to such party’s Knowledge, commenced or
threatened against such party or any of its Subsidiaries; (c) the discovery of any fact or circumstance that, or the occurrence or non-occurrence of any event the occurrence or non-occurrence of which, would cause or would reasonably be expected to
cause any representation or warranty made by such party contained in this Agreement: (i) that is qualified as to materiality or Material Adverse Effect to be untrue; and (ii) that is not so qualified to be untrue in any material respect; and (d) any
material failure of such party to comply with or satisfy any covenant or agreement to be complied with or satisfied by it hereunder; provided, however, that the delivery of any notice pursuant to this Section 5.7 shall not (nor shall
any information provided pursuant to Section 5.6)): (A) be considered in determining whether any representation or warranty is true for purposes of Article 6 or Article 7; (B) cure any breach or non-compliance with any other provision of this
Agreement; or (C) limit the remedies available to the party receiving such notice; provided, further, that the failure to deliver any notice pursuant to this Section 5.7 shall not be considered in determining whether the condition set forth
in Section 6.2(b) or Section 6.3(b) has been satisfied or the related termination right in Article 7 is available. 
  

 38 

 SECTION 5.8 Indemnification and Insurance. 
  
 (a) From and after the Effective Time, the Surviving Corporation shall (and
Parent shall cause the Surviving Corporation to) indemnify, defend and hold harmless, and advance expenses to, the individuals who at or prior to the Effective Time were directors or officers of the Company or any of its Subsidiaries (collectively,
the “Indemnitees”) with respect to all acts or omissions by them in their capacities as such at any time prior to the Effective Time, to the fullest extent required by: (i) the Company Charter Documents as in effect on the date of
this Agreement; and (ii) any applicable contract as in effect on the date of this Agreement which is disclosed to Parent. 
  
 (b) Without limiting the provisions of Section 5.8(a), during the period commencing with the Closing and ending on the sixth anniversary of the Effective
Time, Parent shall: (i) indemnify and hold harmless each Indemnitee against and from any costs or expenses (including reasonable attorneys’ fees), judgments, fines, losses, claims, damages, liabilities and amounts paid in settlement in
connection with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, to the extent such claim, action, suit, proceeding or investigation arises out of or pertains to: (A) any action or
omission or alleged action or omission in such Indemnitee’s capacity as a director, officer or employee of the Company or any of its Subsidiaries; or (B) any of the Transactions; and (ii) pay in advance of the final disposition of any such
claim, action, suit, proceeding or investigation the expenses (including attorneys’ fees) of any Indemnitee upon receipt of an undertaking by or on behalf of such Indemnitee to repay such amount if it shall ultimately be determined that such
Indemnitee is not entitled to be indemnified. Notwithstanding anything to the contrary contained in this Section 5.8(b) or elsewhere in this Agreement, neither Parent nor the Surviving Corporation shall settle or compromise or consent to the entry
of any judgment or otherwise seek termination with respect to any claim, action, suit, proceeding or investigation for which indemnification may be sought under this Section 5.8(b) unless such settlement, compromise, consent or termination includes
an unconditional release of all Indemnitees from all liability arising out of such claim, action, suit, proceeding or investigation. 
  
 (c) Parent will provide, or cause the Surviving Corporation to provide, for a period of not less than six years after the Effective Time, the Indemnitees
who are insured under the Company’s directors’ and officers’ insurance and indemnification policy with an insurance and indemnification policy that provides coverage for events occurring at or prior to the Effective Time (the
“D&O Insurance”) that is no less favorable than the existing policy of the Company or, if substantially equivalent insurance coverage is unavailable, the best available coverage; provided, however, that Parent and the
Surviving Corporation shall not be required to pay an annual premium for the D&O Insurance in excess of 200% of the annual premium currently paid by the Company for such insurance; provided, further, that if the annual premiums of such
insurance coverage exceed such amount, Parent or the Surviving Corporation shall be obligated to obtain a policy with the greatest coverage available for a cost not exceeding such amount. 
  

 39 

 (d) The Indemnitees to whom this Section 5.8 applies shall be third party beneficiaries of this Section
5.8. The provisions of this Section 5.8 are intended to be for the benefit of each Indemnitee, his or her heirs and his or her representatives. 
  
 (e) In the event that the Surviving Corporation or any of its successors or assigns consolidates with or merges into any other Person and shall not be the
continuing or surviving corporation or entity of such consolidation or merger or transfers or conveys all or a majority of its properties and assets to any Person, then, and in each such case, proper provision shall be made so that the successors
and assigns of the Surviving Corporation shall succeed to the obligations set forth in this Section 5.8. 
  
 SECTION 5.9 Securityholder Litigation. The Company shall give Parent the opportunity to participate in the defense or settlement of any
securityholder litigation against the Company and/or its directors relating to the Transactions, and no settlement or any such litigation shall be agreed to without Parent’s prior consent (which consent shall not be unreasonably withheld or
delayed). 
  
 SECTION 5.10 Fees and Expenses. Whether or
not the Merger is consummated, all fees and expenses incurred in connection with this Agreement, the Merger and the Transactions shall be paid by the party incurring such fees or expenses. 
  
 SECTION 5.11 Employee Benefits. 
  
 (a) Unless Parent delivers written notice to the Company no later than five
business days prior to the Effective Time providing otherwise, the Company shall take all action necessary to terminate, or cause to be terminated, before the Effective Time, any Company Plan that is a 401(k) plan or other defined contribution
retirement plan or employee stock purchase plan. In the event Parent does not deliver such written notice, then within ninety (90) days of the Closing Date, Parent shall, to the extent permitted by law, arrange for the employees of the Company who
were eligible to participate in the Blue Martini Software, Inc. 401(k) Plan the opportunity to participate in a plan described in Section 401(k) of the Code. 
  
 (b) From and after the Effective Time, the Surviving Corporation shall honor in accordance with their respective terms the employment and other similar
agreements between the Company and its Subsidiaries and their respective current employees that are set forth on Section 3.11(a) of the Company Disclosure Schedule. Should Parent, at any time within the one year period following the Effective Time
(such period of time, the “Protected Period”), terminate one or more of the Company Plans (other than any equity-based Company Plan, to which the provisions of this Section 5.12(b) shall not apply), then Parent shall at that time
(the “Company Plan Termination Date”) include the employees of the Company and its Subsidiaries in the corresponding welfare benefit plans and other employee benefit plans of Parent on the same basis and terms as Parent’s
similarly situated employees participate. All such welfare benefit plans of Parent in which the employees of the Company or its Subsidiaries participate after the Company Plan Termination Date pursuant to the preceding sentence shall provide credit
for all service with the Company and its Subsidiaries, to the same extent as such service 

  

 40 

 
was credited for such purpose by the Company and its Subsidiaries for such employees under a similar Company Plan, including: (i) all employee benefit plans,
programs, policies and fringe benefits to be provided to such employees for purposes of eligibility and vesting; (ii) severance plans, programs and policies to be provided to such employees for purposes of calculating the amount of each such
employee’s severance benefits; and (iii) vacation and sick leave plans, programs and policies for purposes of calculating the amount of each such employee’s vacation and sick leave. With respect to each employee benefit plan, program or
policy of Parent or its Subsidiaries that is a “welfare benefit plan” (as defined in Section 3(1) of ERISA) in which employees of the Company or its Subsidiaries participate following the Effective Time pursuant to this Section 5.11(b),
Parent or its Subsidiaries shall: (A) cause there to be waived any pre-existing condition or eligibility limitations; and (B) give effect, in determining any deductible and maximum out-of-pocket limitations payable during the plan year in which the
Effective Time occurs, to claims incurred and amounts paid by, and amounts reimbursed to, employees of the Company and its Subsidiaries during such plan year under similar plans maintained by the Company and its Subsidiaries immediately prior to the
Effective Time. 
  
 (c) Notwithstanding anything in this Agreement
to the contrary, nothing in this Section 5.11 shall impede or limit Parent, Merger Sub, the Company or any of their Affiliates from terminating any of their employees at any time for any reason or no reason, subject to the provisions of applicable
Law and applicable Contracts, and nothing in this Section 5.11 is intended or shall confer on any person other than the parties to this Agreement any rights or remedies or the status of a third party beneficiary hereunder. 
  
 ARTICLE 6 
  
 Conditions Precedent 
  
 SECTION 6.1 Conditions to Each Party’s Obligation to Effect the
Merger. The respective obligations of each party hereto to effect the Merger shall be subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions: 
  
 (a) Stockholder Approval. The Company Stockholder Approval shall have
been obtained in accordance with applicable Law and the Company Charter Documents; 
  
 (b) Antitrust. 
  
 (i) Any waiting period (and any extension of such period) under the HSR Act applicable to the Transactions shall have expired or shall have been terminated; 
  
 (ii) The applicable filings, approvals or expiration or termination of any applicable waiting periods under
Foreign Antitrust Laws in jurisdictions in which such filings, approvals, expiration or termination are 

  

 41 

 
required by Law to be made, obtained, expired or terminated prior to the Closing, shall have been made or obtained or shall have expired or been terminated,
except where the failure to make such filing, obtain such approval or allow such waiting period to expire or terminate would not have a Company Material Adverse Effect or a Parent Material Adverse Effect; and 
  
 (c) No Injunctions or Restraints. No Law, injunction, judgment or
ruling enacted, promulgated, issued, entered, amended or enforced by any Governmental Authority, whether temporary, preliminary or permanent (collectively, “Restraints”) shall be in effect enjoining, restraining, preventing or
prohibiting consummation of the Merger or making the consummation of the Merger illegal or otherwise imposing material limitations on the ability of Parent and Merger Sub effectively to acquire or hold the business of the Company and its
Subsidiaries. 
  
 SECTION 6.2 Conditions to Obligations of
Parent and Merger Sub. The obligations of Parent and Merger Sub to effect the Merger are further subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions:

  
 (a) Representations and Warranties. The
representations and warranties of the Company contained in this Agreement shall be true and correct as of the Closing Date as though made on the Closing Date (except for representations and warranties expressly made as of an earlier date, in which
case as of such earlier date); provided, however, that (i) all materiality and “Company Material Adverse Effect” qualifiers shall be disregarded in determining the accuracy of such representations and warranties for purposes of this
Section 6.2(a) and (ii) the condition set forth in this Section 6.2(a) shall be deemed satisfied unless the effect of all such failures of such representations and warranties to be true and correct, taken together, has had, or would reasonably be
expected to have, a Company Material Adverse Effect; 
  
 (b)
Performance of Obligations of the Company. The Company shall have performed in all material respects all obligations required to be performed by it under this Agreement on or prior to the Closing Date; 
  
 (c) Officer’s Certificate. Parent shall have received a
certificate, signed on behalf of the Company by the chief executive officer or chief financial officer of the Company, certifying as to the matters set forth in Sections 6.2(a) and 6.2(b); 
  
 (d) Company Material Adverse Effect. Since the date of this Agreement
through the Closing Date, there shall have been no change, event, occurrence or circumstance that, individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect; 
  
 (e) No Governmental Litigation. There shall not be any legal,
administrative, arbitral or other proceeding pending before any Governmental Authority in which a Governmental Authority is a party that would or would reasonably be expected to: (i) restrain, enjoin, prevent, prohibit or make illegal the
consummation of the 

  

 42 

 
Merger or the other Transactions; or (ii) impose material limitations on the ability of Parent effectively to exercise full rights of ownership of all shares
of the Surviving Corporation; 
  
 (f) Certified Copies. At
or prior to the Closing, the Company shall deliver certified copies of (i) the resolutions duly adopted by the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the Transactions, (ii) the
resolutions duly adopted by the Company’s stockholders adopting this Agreement and (iii) the certificate of incorporation and the bylaws of the Company that will be in effect immediately prior to the Effective Time; and 
  
 (g) Capitalization. The sum of the cash amounts to be paid to (i) the
Company’s stockholders in respect of outstanding shares of Company Common Stock pursuant to Section 2.1(c) other than outstanding shares of Company Common Stock issued after the date of this Agreement pursuant to the ESPP in accordance with its
terms and conditions as in effect on the date of this Agreement, (ii) the holders of Options in respect of Options pursuant to Section 2.4(a) and (iii) the holders of Warrants in respect of Warrants pursuant to Section 2.4(c), shall not exceed the
sum of (A) $54,834,185 and (B) the aggregate amount of cash paid or payable to the Company upon the exercise of Options and Warrants that are identified on the Company Disclosure Schedule and the notice of exercise of which was received by the
Company on or after the date of this Agreement. 
  
 SECTION 6.3
Conditions to Obligation of the Company. The obligation of the Company to effect the Merger is further subject to the satisfaction (or waiver, if permissible under applicable Law) on or prior to the Closing Date of the following conditions:

  
 (a) Representations and Warranties. The
representations and warranties of Parent and Merger Sub contained in this Agreement shall be true and correct as of the Closing Date as though made on the Closing Date (except for representations and warranties expressly made as of an earlier date,
in which case as of such earlier date); provided, however, that (i) all materiality and “Parent Material Adverse Effect” qualifiers shall be disregarded in determining the accuracy of such representations and warranties for purposes
of this Section 6.3(a) and (ii) the condition set forth in this Section 6.3(a) shall be deemed satisfied unless the effect of all such failures of such representations and warranties to be true and correct, taken together, has had, or would
reasonably be expected to have, a Parent Material Adverse Effect; 
  
 (b) Performance of Obligations of Parent and Merger Sub. Parent and Merger Sub shall have performed in all material respects all obligations required to be performed by them under this Agreement at or prior to the Closing Date; and

  
 (c) Cash Deposit. Parent shall have deposited with the
Payment Agent cash in an amount that, together with the cash that Parent may be causing the Surviving Corporation to deposit with the Paying Agent immediately following the Effective Time in accordance with the provisions of Section 2.3(a), is
sufficient to pay the aggregate Merger Consideration payable pursuant to Section 2.1(c) upon surrender of Certificates representing outstanding shares of Company Capital Stock. 
  

 43 

 (d) Officer’s Certificate. The Company shall have received a certificate, signed on behalf of
Parent by the chief executive officer or chief financial officer of Parent, certifying as to the matters set forth in Sections 6.3(a), 6.3(b) and 6.3(c). 
  
 SECTION 6.4 Frustration of Closing Conditions. None of the Company, Parent or Merger Sub may rely on the failure of any condition set forth in
Section 6.1, 6.2 or 6.3, as the case may be, to be satisfied if such failure was caused by such party’s failure to perform any of its obligations under this Agreement. 
  
 ARTICLE 7 
  
 Termination 
  
 SECTION 7.1 Termination. This Agreement may be terminated and the Transactions abandoned at any time prior to the Effective Time: 
  
 (a) by the mutual written consent of the Company and Parent duly authorized
by each of their respective Boards of Directors; or 
  
 (b) by
either of the Company or Parent: 
  
 (i) if the
Merger shall not have been consummated on or before July 31, 2005 (the “Outside Date”); provided, however, that the right to terminate this Agreement under this Section 7.1(b)(i) shall not be available to a party if the
failure of the Merger to have been consummated on or before the Outside Date was primarily due to the failure of such party or any Affiliate of such party to perform any of its obligations under this Agreement; or 
  
 (ii) if any Restraint having the effect set forth in Section
6.1(c) shall be in effect and shall have become final and nonappealable; provided, however, that the right to terminate this Agreement under this Section 7.1(b)(ii) shall not be available to a party if the imposition of such Restraint
was primarily due to the failure of such party to perform any of its obligations under this Agreement; or 
  
 (iii) if the Company Stockholder Approval shall not have been obtained at the Company Stockholders Meeting duly convened therefor or at
any adjournment or postponement thereof; or 
  
 (c) by Parent if:
(i) there is an inaccuracy in any of the representations or warranties of the Company in this Agreement such that the condition set forth in Section 6.2(a) would not be satisfied; or (ii) there has been a breach by the Company of any of its
covenants in this Agreement such that the condition set forth in Section 6.2(b) would not be satisfied (the events described in clauses “(i)” and “(ii)” of this sentence 

  

 44 

 
being referred to as a “Terminating Company Breach”); provided, however, that if such Terminating Company Breach is curable
through the exercise of reasonable efforts, Parent may not terminate this Agreement under this Section 7.1(c) unless such Terminating Company Breach has not been cured within twenty business days after notice thereof is received by the Company; or

  
 (d) by Parent within ten days following the Board of Directors
of the Company (or any committee thereof) taking any of the actions described in clause “(A)” of the second sentence of Section 5.3(c); or 
  
 (e) by the Company: 
  
 (i) if: (A) there is an inaccuracy in any of the representations or warranties of Parent or Merger Sub in this Agreement such that the
condition set forth in Section 6.3(a) would not be satisfied; or (B) there has been a breach by Parent or Merger Sub of any of their respective covenants in this Agreement such that the condition set forth in Section 6.3(b) would not be satisfied
(the events described in clauses “(A)” and “(B)” of this sentence being referred to as a “Terminating Parent Breach”); provided, however, that if such Terminating Parent Breach is curable through
the exercise of reasonable efforts, the Company may not terminate this Agreement under this Section 7.1(e)(i) unless such Terminating Parent Breach has not been cured within twenty business days after notice thereof is received by Parent; or

  
 (ii) at any time prior to the Company
Stockholder Approval, following receipt of a Superior Proposal, provided, however, that: (A) prior to such termination, the Company has provided Parent a written notice of the Company’s intent to exercise its right to terminate pursuant
to this Section 7.1(e)(ii), which notice describes the Superior Proposal and the parties thereto; and (B) within two business days following the delivery of the notice described in clause “(A)” of this sentence, Parent does not propose
adjustments in the terms and conditions of this Agreement which the Company’s Board of Directors (or any committee thereof) determines in its good faith judgment (after consultation with an independent financial advisor of nationally recognized
reputation) to be more favorable to the Company’s stockholders than such Superior Proposal. 
  
 SECTION 7.2 Effect of Termination. In the event of the termination of this Agreement as provided in Section 7.1, written notice thereof shall be
given to the other party or parties, specifying the provision hereof pursuant to which such termination is made, and this Agreement shall forthwith become null and void (other than the provisions of the penultimate sentence of Section 5.6, Sections
5.10, 7.2 and 7.3 and Article 8, all of which shall survive termination of this Agreement), and there shall be no liability on the part of Parent, Merger Sub or the Company or their respective directors, officers and Affiliates, except: (a) the
Company may have liability as provided in Section 7.3; and (b) nothing shall relieve any party hereto from liability for any willful, material breach of this Agreement. 
  

 45 

 SECTION 7.3 Termination Fee. 
  
 (a) In the event that this Agreement is terminated by: 
  
 (i) the Company pursuant to Section 7.1(e)(ii); 
  
 (ii) Parent pursuant to Section 7.1(d); or 
  
 (iii) by the Company or Parent pursuant to Section
7.1(b)(iii) if, prior to the Company Stockholders Meeting: (A) a Takeover Proposal shall have been publicly disclosed, announced, commenced, submitted or made; (B) such Takeover Proposal shall not have been withdrawn at least five days prior to the
Company Stockholders Meeting; and (C) within 180 days after the date of the termination of this Agreement, the Company and the Person who had commenced, submitted or made such Takeover Proposal consummate an Acquisition Transaction, 
  
 then, in the case of clause “(i)” and clause “(ii)” of this sentence, at
the time of termination or, in the case of clause “(iii)” of this sentence, at the time of consummation of the Acquisition Transaction referred to in clause “(iii)” of this sentence, the Company shall pay to Parent, a fee of
$1,622,000 minus any amounts previously paid by the Company pursuant to Section 7.3(b), in cash. Such payment shall be made by wire transfer of immediately available funds to an account to be designated by Parent. 
  
 (b) In the event that this Agreement is terminated by the Company or Parent
pursuant to Section 7.1(b)(iii), the Company shall reimburse Parent for reasonable, documented, out-of-pocket Expenses incurred by Parent and Merger Sub in an amount not to exceed $500,000. Such payment shall be made by wire transfer of immediately
available funds to an account to be designated by Parent within 10 business days of the Company’s receipt of adequate documentation of the amount of such Expenses. 
  
 (c) For purposes of this Agreement, an “Acquisition Transaction” means any transaction or series of
transactions involving: (A) an acquisition (whether in a single transaction or a series of related transactions) of assets of the Company and its Subsidiaries having a fair market value equal to 50% or more of the consolidated assets of the Company
and its Subsidiaries, taken as a whole; (B) a direct or indirect acquisition (whether in a single transaction or a series of related transactions) of 50% or more of the voting power of the Company; (C) a tender offer or exchange offer that if
consummated would result in any Person beneficially owning 50% or more of the voting power of the Company; or (D) a merger, consolidation, share exchange, business combination, recapitalization or similar transaction involving the Company or
involving any Subsidiary (or Subsidiaries) (other than: (1) mergers, consolidations, business combinations or similar transactions involving solely the Company and/or one or more Subsidiaries of the Company; and (2) mergers, consolidations, business
combinations or similar transactions that if consummated would result in a Person beneficially owning not more than 50% of any class of equity securities of the Company or any of its Subsidiaries. 
  

 46 

 (d) The Company and Parent acknowledge that the fee and the other provisions of this Section 7.3 are an
integral part of the Transactions and that, without these agreements, Parent and the Company would not enter into this Agreement. 
  
 ARTICLE 8 
  
 Miscellaneous 
  
 SECTION 8.1 Nonsurvival of Representations and Warranties. The representations, warranties and agreements in this Agreement shall terminate at the Effective Time or, except as otherwise provided in Section 7.2
and Section 7.3, upon the termination of this Agreement pursuant to Section 7.1, as the case may be, except that the agreements set forth in Article 2 and Sections 5.8, 5.9, 5.10 and 5.11 and any other agreement in this Agreement which contemplates
performance after the Effective Time shall survive the Effective Time indefinitely. The Non-Disclosure Agreement shall: (a) survive termination of this Agreement in accordance with its terms; and (b) terminate as of the Effective Time. 

 
 SECTION 8.2 Amendment or Supplement. At any time prior to the
Effective Time, this Agreement may be amended or supplemented in any and all respects, whether before or after receipt of the Company Stockholder Approval, by written agreement of the parties hereto, by action taken by their respective Boards of
Directors; provided, however, that following approval of the Transactions by the stockholders of the Company and Merger Sub, there shall be no amendment or change to the provisions hereof which by Law would require further approval by
the stockholders of the Company or Merger Sub without such approval. 
  
 SECTION 8.3 Extension of Time, Waiver, Etc. At any time prior to the Effective Time, any party hereto may, subject to applicable Law: (a) waive any inaccuracies in the representations and warranties of any other party hereto; (b)
extend the time for the performance of any of the obligations or acts of any other party hereto; or (c) waive compliance by the other party with any of the agreements contained herein or, except as otherwise provided herein, waive any of such
party’s conditions. Notwithstanding the foregoing, no failure or delay by the Company, Parent or Merger Sub in exercising any right hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other
or further exercise thereof or the exercise of any other right hereunder. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party.

  
 SECTION 8.4 Assignment. Neither this Agreement nor any
of the rights, interests or obligations hereunder shall be assigned or delegated, in whole or in part, by operation of Law or otherwise, by any of the parties without the prior written consent of the other parties; provided that each of Parent and
Merger Sub may, without the prior written consent of the Company, assign (a) its rights, interests and obligations to any of their respective affiliates or direct or indirect subsidiaries without the consent of the Company, so long as they remain
primarily obligated with respect to any such 

  

 47 

 
delegated obligations or (b) for collateral security purposes, its rights and interests to any lender providing financing to Parent, Merger Sub or any of
their affiliates. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and their respective successors and permitted assigns. Any purported assignment or
delegation not permitted under this Section shall be null and void. 
  
 SECTION 8.5 Counterparts; Facsimile; Electronic Transmission. This Agreement may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement) and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. The exchange of copies of this Agreement and of signature pages by facsimile or electronic transmission
shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or electronic transmission shall be deemed
to be their original signatures for all purposes. 
  
 SECTION 8.6
Entire Agreement; No Third-Party Beneficiaries. This Agreement, the Company Disclosure Schedule and the Non-Disclosure Agreement: (a) constitute the entire agreement, and supersede all other prior agreements and understandings, both written
and oral, among the parties, or any of them, with respect to the subject matter hereof and thereof; and (b) except for the provisions of Section 5.8, are not intended to and shall not confer upon any Person other than the parties hereto any rights
or remedies hereunder. 
  
 SECTION 8.7 Governing Law; Waiver of
Jury Trial. 
  
 (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of laws thereof. 
  
 (b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS
AGREEMENT OR THE TRANSACTIONS. 
  
 SECTION 8.8 Specific
Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, without bond or other security being required, this being in addition to any
other remedy to which they are entitled at law or in equity. 
  
 SECTION 8.9 Consent to Jurisdiction. Each of the parties hereto: (a) consents to submit itself to the personal jurisdiction of the Court of Chancery of the State of Delaware, in the event any dispute arises out of this Agreement or
any of the 

  

 48 

 
Transactions; (b) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court; and
(c) agrees that it will not bring any action relating to this Agreement or any of the Transactions in any court other than the Court of Chancery of the State of Delaware. 
  
 SECTION 8.10 Notices. All notices, requests and other communications to any party hereunder shall be in writing and
shall be deemed properly delivered, given and received: (a) when delivered by hand; (b) on the day sent by facsimile provided that the sender has received confirmation of transmission as of or prior to 5:00 p.m. local time of the recipient on such
day; (c) the first business day after sent by facsimile (to the extent that the sender has received confirmation of transmission after 5:00 p.m. local time of the recipient on the day sent by facsimile); or (d) the third business day after sent by
registered mail or by courier or express delivery service, in any case to the address or facsimile telephone number set forth beneath the name of such party below (or to such other address or facsimile telephone number as such party shall have
specified in a written notice given to the other parties hereto): 
  
 If to Parent or Merger Sub, to: 
  
 Multi-Channel Holdings, Inc. 
 c/o Golden Gate Private Equity, Inc. 
 One Embarcadero Center, 33rd Floor 
 San Francisco, CA 94111 
 Attention: Prescott Ashe and Rajeev Amara 
 Facsimile: 415-627-4501 
  
 with a
copy (which shall not constitute notice) to: 
  
 Kirkland & Ellis LLP 
 555 California Street, 27th Floor 
 San Francisco, CA 94104

 Attention: Stephen D. Oetgen 
 Facsimile: (415) 439-1500 
  
 If
to the Company, to: 
  
 Blue Martini Software,
Inc. 
 2600 Campus Drive 
 San Mateo, CA 94403 
 Attention: Chief Executive Officer and 
 General Counsel 
 Facsimile: (650) 356-7700 
  

 49 

 with a copy (which shall not constitute notice) to: 
  
 Cooley Godward LLP 
 Five Palo Alto Square 
 3000 El Camino Real 
 Palo Alto, CA 94306 
 Attention: Eric C. Jensen, Esq. and Jennifer F. DiNucci, Esq. 
 Facsimile: (650) 849-7400 
  
 SECTION 8.11 Severability. If any term or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
illegal or incapable of being enforced by any rule of law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable Law in
an acceptable manner to the end that the Transactions are fulfilled to the extent possible. 
  
 SECTION 8.12 Definitions. 
  
 (a) As used in this Agreement, the following terms have the meanings ascribed thereto below: 
  
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common
control with, such Person. For this purpose, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of management or policies of a Person, whether through the ownership of securities or partnership or other ownership interests, by contract or otherwise. 
  
 “business day” shall mean a day except a Saturday, a Sunday
or other day on which the SEC or banks in the City of New York are authorized or required by Law to be closed. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder. 
  
 “Company Capital Stock” shall mean the Company Common Stock
and the Company Preferred Stock. 
  
 “Company Common
Stock” shall mean the common stock, par value $0.001 per share, of the Company. 
  
 “Company Preferred Stock” shall mean the Preferred Stock, $0.001 par value per share, of the Company. 
  

 50 

 “Company Stock Plans” shall mean the Blue Martini Software, Inc. 2000 Equity Incentive
Plan, the Blue Martini Software, Inc. 2000 Non-Employee Directors’ Stock Option Plan and the ESPP. 
  
 “Competition Laws” shall mean the Sherman Act, as amended, the Clayton Act, as amended, the HSR Act, the Federal Trade Commission Act, as
amended, and all other applicable Laws issued by a Governmental Authority that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening of competition
through merger or acquisition 
  
 “ESPP” shall
mean the Blue Martini Software, Inc. 2000 Employee Stock Purchase Plan. 
  
 “Expenses” shall mean all out-of-pocket expenses (including, without limitation, all fees and expenses of outside counsel, investment bankers, banks, other financial institutions, accountants, financial printers, experts
and consultants to a party hereto) incurred by a party or on its behalf in connection with or related to the investigation, due diligence examination, authorization, preparation, negotiation, execution and performance of this Agreement and the
transactions contemplated hereby and the financing thereof and all other matters contemplated by this Agreement and the closing thereof, together with any out-of-pocket costs and expenses incurred by any party in enforcing any of its rights set
forth in this Agreement, whether pursuant to litigation or otherwise. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States. 
  
 “Governmental Authority” shall mean any government, court, arbitrator, regulatory or administrative agency, commission or authority or
other governmental instrumentality, federal, state or local, domestic, foreign or multinational. 
  
 “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
  
 “Intellectual Property” of any Person shall mean all
intellectual property rights arising from or in respect of the following: (i) patents and applications therefor, including continuations, divisionals, continuations-in-part, or reissues of patent applications and patents issuing thereon; (ii)
trademarks, service marks, trade names, service names, brand names, trade dress rights, logos, Internet domain names and corporate names, together with the goodwill associated with any of the foregoing, and all applications, registrations and
renewals thereof; (iii) copyrights and registrations and applications therefor, works of authorship and mask work rights; (iv) proprietary discoveries, concepts, ideas, research and development, know-how, formulae, algorithms, subroutines,
inventions, compositions, manufacturing and production processes and techniques, technical data, procedures, designs, drawings, specifications, databases and other proprietary and confidential information, including customer lists, supplier lists,
pricing and cost information, and business and marketing plans and proposals; and (v) Software. 
  

 51 

 “Knowledge” of any Person that is not an individual shall mean, with respect to any
matter in question, the actual knowledge of such Person’s executive officers and directors. 
  
 “Permitted Liens” shall mean (i) statutory liens securing payments not yet due; (ii) security interests, mortgages and pledges that are
disclosed in the Filed Company SEC Documents that secure indebtedness that is reflected in the unaudited consolidated financial statements of the Company and its Subsidiaries as of September 30, 2004; and (iii) such other imperfections or
irregularities of title or other Liens that, individually or in the aggregate, do not and would not reasonably be expected to materially affect the use of the properties or assets subject thereto or otherwise materially impair the business
operations of the Company or its Subsidiaries as currently conducted. 
  
 “Person” shall mean an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity, including a Governmental Authority. 
  
 “Representatives” of any Person shall mean its directors,
officers, employees, financial advisors, attorneys, accountants, agents and other representatives. 
  
 “Rights” shall have the meaning assigned to such term in the ESPP. 
  
 “Software” means all: (i) computer programs, including all software implementations of algorithms, models
and methodologies, whether in source code or object code; (ii) databases and compilations, including all data and collections of data, whether machine readable or otherwise; (iii) descriptions, flow-charts and other work product used to design,
plan, organize and develop any of the foregoing, screens, user interfaces, report formats, firmware, development tools, templates, menus, buttons and icons; and (iv) documentation including user manuals and other training documentation related to
any of the foregoing. 
  
 “Stock Awards” shall
have the meaning assigned to such term in the Blue Martini Software, Inc. 2000 Equity Incentive Plan. 
  
 “Subsidiary” when used with respect to any party hereto, shall mean any corporation, limited liability company, partnership, association,
trust or other entity the accounts of which would be consolidated with those of such party in such party’s consolidated financial statements if such financial statements were prepared in accordance with GAAP, as well as any other corporation,
limited liability company, partnership, association, trust or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power (or, in the case of a partnership,
more than 50% of the general partnership interests) are, as of such date, owned by such party or one or more Subsidiaries of such party or by such party and one or more Subsidiaries of such party. 
  

 52 

 “Superior Proposal” shall mean a bona fide written offer to acquire, for consideration
consisting of cash and/or securities, equity securities or assets of the Company, made by a third party, which (A) is on terms and conditions which the Board of Directors of the Company (or any committee thereof) determines in its good faith
judgment (after consultation with an independent financial advisor of nationally recognized reputation) to be more favorable to the Company’s stockholders than the Merger (including any adjustment to the terms and conditions of the Merger
proposed in writing by Parent in response to such proposal) and (B) is, in the good faith judgment of the Board of Directors of the Company (or any committee thereof), reasonably capable of being consummated in a timely manner (taking into account,
without limitation, the ready availability of cash on hand and/or commitments for the same, in each case as applicable, required to consummate any such proposal and any Competition Law approvals or non-objections). 
  
 “Takeover Proposal” shall mean any proposal or offer from
any Person (other than Parent and its Affiliates) providing for any: (A) acquisition (whether in a single transaction or a series of related transactions) of assets of the Company and its Subsidiaries having a fair market value equal to 15% or more
of the Company’s consolidated assets; (B) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of 15% or more of the voting power of the Company; (C) tender offer or exchange offer that if
consummated would result in any Person beneficially owning 15% or more of the voting power of the Company; (D) merger, consolidation, share exchange, business combination, recapitalization or similar transaction involving the Company or involving
any Subsidiary (or Subsidiaries) (other than: (1) mergers, consolidations, business combinations or similar transactions involving solely the Company and/or one or more Subsidiaries of the Company; and (2) mergers, consolidations, business
combinations or similar transactions that if consummated would result in a Person beneficially owning not more than 15% of any class of equity securities of the Company or any of its Subsidiaries); or (E) any public announcement of an agreement,
proposal or plan to do any of the foregoing; in each case, other than the Transactions; provided, however, that for purposes of Section 7.3(a), the references to “15%” in this definition of Takeover Proposal shall be deemed instead
to refer to “50%”. 
  
 “Transactions”
refers to the transactions contemplated hereby, including the Merger. 
  
 The
following terms are defined in the section of this Agreement set forth after such term below: 
  

			
	 Agreement
	 	First paragraph
	 Appraisal Shares
	 	2.2
	 Acquisition Transaction
	 	7.3(c)
	 Balance Sheet Date
	 	3.5(e)
	 Bankruptcy and Equity Exception
	 	3.3(a)
	 Certificate
	 	2.3(a)
	 Certificate of Merger
	 	1.3
	 Closing
	 	1.2
	 Closing Date
	 	1.2
	 COBRA
	 	3.11(h)
	 Company Board Recommendation
	 	3.3(b)
	 Company Charter Documents
	 	3.1(c)
	 Company Disclosure Schedule
	 	Article 3
	 Company Material Adverse Effect
	 	3.1(a)
	 Company Plans
	 	3.11(a)
	 Company Real Property
	 	3.14(b)

  

 53 

			
	 Company SEC Documents
	 	3.5(a)
	 Company Stockholder Approval
	 	3.3(d)
	 Company Stockholders Meeting
	 	5.1(b)
	 Contract
	 	3.3(c)
	 CSFB
	 	3.18
	 D&O Insurance
	 	5.8(c)
	 DGCL
	 	1.1
	 DOJ
	 	5.4(a)
	 Effective Time
	 	1.3
	 Employees
	 	3.11(a)
	 Environmental Laws
	 	3.12(d)(i)
	 Environmental Liabilities
	 	3.12(d)(ii)
	 ERISA
	 	3.11(a)
	 ERISA Affiliates
	 	3.11(e)
	 Exchange Act
	 	3.4
	 Fairness Opinion
	 	3.18
	 Filed Company SEC Documents
	 	3.5(d)
	 Foreign Antitrust Laws
	 	3.4
	 FTC
	 	5.4(a)
	 Hazardous Materials
	 	3.12(d)(iii)
	 Indemnitees
	 	5.8(a)
	 Laws
	 	3.8(a)
	 Liens
	 	3.1(b)
	 Material Contract
	 	3.13(a)
	 Merger
	 	Recitals
	 Merger Consideration
	 	2.1
	 Multiemployer Plan
	 	3.11(a)
	 Non-Disclosure Agreement
	 	5.6
	 Option
	 	2.4(a)
	 Option Consideration
	 	2.4(a)
	 Outside Date
	 	7.1(b)(i)
	 Parent Material Adverse Effect
	 	4.2
	 Paying Agent
	 	2.3(a)
	 Payment Fund
	 	2.3(a)
	 Permits
	 	3.8(b)
	 Per Share Amount
	 	2.1(c)
	 Policies
	 	3.17
	 Protected Period
	 	5.11(b)
	 Proxy Statement
	 	3.4
	 Release
	 	3.12(d)(iv)
	 Restraints
	 	6.1(c)
	 SEC
	 	2.4(d)
	 Section 203
	 	3.20
	 Section 262
	 	2.2
	 Securities Act
	 	3.1(b)
	 Subsidiary Documents
	 	3.1(c)
	 Surviving Corporation
	 	1.1
	 Tax Returns
	 	3.10(k)
	 Taxes
	 	3.10(k)
	 Terminating Company Breach
	 	7.1(c)
	 Terminating Parent Breach
	 	7.1(e)(i)

  
 SECTION 8.13
Interpretation. 
  
 (a) When a reference is made in this
Agreement to an Article, a Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.” 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 terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless
otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such term. 
  
 (b) The parties hereto have participated jointly in the negotiation and
drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provision of this Agreement. 
  
 [signature page follows] 
  

 54 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of
the date first above written. 
  

			
	MULTI-CHANNEL HOLDINGS, INC.
		
	By:	 	 /s/ Prescott Ashe

	Name:	 	Prescott Ashe
	Title:	 	President
	
	BMS MERGER CORPORATION
		
	By:	 	 /s/ Prescott Ashe

	Name:	 	Prescott Ashe
	Title:	 	President
	
	BLUE MARTINI SOFTWARE, INC.
		
	By:	 	 /s/ Monte Zweben

	Name:	 	Monte Zweben
	Title:	 	Chairman and Chief Executive Officer

  
 SIGNATURE PAGE TO AGREEMENT AND PLAN OF MERGERCredit Agreement

 Exhibit 10.1 
  
 EXECUTION COPY         
  
 CREDIT AGREEMENT 
  
 among 
  
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. 
 as the Borrower, 
  
 SUNOCO LOGISTICS PARTNERS L.P. 
 as a Guarantor 
  
 CITIBANK, N.A., 
 as Administrative Agent, and 
 as a Lender and L/C Issuer, 
  
 BARCLAYS BANK PLC, 
 as a Lender and L/C
Issuer, 
  
 and 
  
 The Other Lenders Party Hereto 
  
 $250,000,000 
  
 SENIOR CREDIT FACILITY 
  
 BARCLAYS BANK PLC, 
 Syndication Agent, 
  
 KEYBANK NATIONAL ASSOCIATION, 
 SUNTRUST BANK, 
 and 
 WACHOVIA BANK, NATIONAL ASSOCIATION,

 Co-Documentation Agents, 
  
 CITIGROUP GLOBAL MARKETS INC., 
 and

 BARCLAYS CAPITAL, 
 Joint
Lead Arrangers and Bookrunners 
  
 Dated as of November 22, 2004

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	  	1
	         1.01
	  	 Defined Terms.
	  	1
	         1.02
	  	 Other Interpretive Provisions.
	  	20
	         1.03
	  	 Accounting Terms.
	  	20
	         1.04
	  	 Rounding.
	  	21
	         1.05
	  	 References to Agreements and Laws.
	  	21
		
	 ARTICLE II. THE COMMITMENTS AND BORROWINGS
	  	21
	         2.01
	  	 Loans.
	  	21
	         2.02
	  	 Letters of Credit.
	  	21
	         2.03
	  	 Borrowings, Conversions and Continuations of Loans.
	  	27
	         2.04
	  	 Prepayments.
	  	28
	         2.05
	  	 Reduction or Termination of Commitments.
	  	30
	         2.06
	  	 Repayment of Loans.
	  	30
	         2.07
	  	 Interest.
	  	30
	         2.08
	  	 Fees.
	  	31
	         2.09
	  	 Computation of Interest and Fees.
	  	32
	         2.10
	  	 Evidence of Debt.
	  	32
	         2.11
	  	 Payments Generally.
	  	32
	         2.12
	  	 Sharing of Payments.
	  	34
	         2.13
	  	 Increase in Aggregate Committed Sum.
	  	35
		
	 ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	  	35
	         3.01
	  	 Taxes.
	  	35
	         3.02
	  	 Illegality.
	  	36
	         3.03
	  	 Inability to Determine Rates.
	  	36
	         3.04
	  	 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.
	  	37
	         3.05
	  	 Funding Losses.
	  	37
	         3.06
	  	 Matters Applicable to all Requests for Compensation.
	  	38
	         3.07
	  	 Survival.
	  	38
		
	 ARTICLE IV. CONDITIONS PRECEDENT TO BORROWINGS
	  	38
	         4.01
	  	 Conditions to Credit Extension.
	  	38
	         4.02
	  	 Conditions to all Loans and L/C Credit Extensions.
	  	40
		
	 ARTICLE V. REPRESENTATIONS AND WARRANTIES
	  	40
	         5.01
	  	 Existence; Qualification and Power; Compliance with Laws.
	  	40
	         5.02
	  	 Authorization; No Contravention.
	  	41
	         5.03
	  	 Governmental Authorization.
	  	41
	         5.04
	  	 Binding Effect.
	  	41
	         5.05
	  	 Financial Statements; No Material Adverse Effect
	  	41
	         5.06
	  	 Litigation.
	  	41
	         5.07
	  	 Ownership of Property; Liens.
	  	42
	         5.08
	  	 Environmental Compliance.
	  	42
	         5.09
	  	 Insurance.
	  	42
	         5.10
	  	 Taxes.
	  	42

  

 i 

					
	         5.11
	  	 ERISA Compliance.
	  	42
	         5.12
	  	 Subsidiaries and other Investments.
	  	43
	         5.13
	  	 Margin Regulations; Investment Company Act; Public Utility Holding Company Act; Use of Proceeds.
	  	43
	         5.14
	  	 Disclosure.
	  	43
	         5.15
	  	 Labor Matters.
	  	43
	         5.16
	  	 Compliance with Laws.
	  	44
	         5.17
	  	 Third Party Approvals.
	  	44
	         5.18
	  	 Solvency.
	  	44
		
	 ARTICLE VI. AFFIRMATIVE COVENANTS
	  	44
	         6.01
	  	 Financial Statements.
	  	44
	         6.02
	  	 Certificates; Other Information.
	  	45
	         6.03
	  	 Notices.
	  	45
	         6.04
	  	 Payment of Obligations.
	  	46
	         6.05
	  	 Preservation of Existence, Etc.
	  	46
	         6.06
	  	 Maintenance of Assets and Business.
	  	46
	         6.07
	  	 Maintenance of Insurance.
	  	46
	         6.08
	  	 Compliance with Laws
	  	46
	         6.09
	  	 Books and Records
	  	46
	         6.10
	  	 Inspection Rights
	  	46
	         6.11
	  	 Compliance with ERISA
	  	47
	         6.12
	  	 Use of Proceeds
	  	47
	         6.13
	  	 Guaranties; JV Holding Subsidiaries.
	  	47
	         6.14
	  	 Material Agreements
	  	47
	         6.15
	  	 Clean Down Period.
	  	47
	         6.16
	  	 Maintenance of Separateness.
	  	48
		
	 ARTICLE VII. NEGATIVE COVENANTS
	  	48
	         7.01
	  	 Liens
	  	48
	         7.02
	  	 Investments.
	  	49
	         7.03
	  	 Hedging Agreements
	  	51
	         7.04
	  	 Indebtedness of Subsidiaries.
	  	51
	         7.05
	  	 Fundamental Changes.
	  	51
	         7.06
	  	 Dispositions
	  	51
	         7.07
	  	 Restricted Payments; Distributions and Redemptions; Payments on Excluded Affiliate Debt.
	  	52
	         7.08
	  	 ERISA.
	  	52
	         7.09
	  	 Nature of Business; Capital Expenditures
	  	53
	         7.10
	  	 Transactions with Affiliates.
	  	53
	         7.11
	  	 Burdensome Agreements.
	  	53
	         7.12
	  	 Use of Proceeds
	  	53
	         7.13
	  	 Material Agreements
	  	53
	         7.14
	  	 Financial Covenants
	  	53
	         7.15
	  	 JV Holding Subsidiaries
	  	54
		
	 ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	  	54
	         8.01
	  	 Events of Default.
	  	54
	         8.02
	  	 Remedies Upon Event of Default.
	  	56

  

 ii 

					
	 ARTICLE IX. ADMINISTRATIVE AGENT
	  	57
	         9.01
	  	 Appointment and Authorization of Administrative Agent
	  	57
	         9.02
	  	 Delegation of Duties.
	  	58
	         9.03
	  	 Liability of Administrative Agent
	  	58
	         9.04
	  	 Reliance by Administrative Agent.
	  	58
	         9.05
	  	 Notice of Default
	  	59
	         9.06
	  	 Credit Decision; Disclosure of Information by Administrative Agent.
	  	59
	         9.07
	  	 Indemnification of Administrative Agent.
	  	59
	         9.08
	  	 Administrative Agent in its Individual Capacity
	  	60
	         9.09
	  	 Successor Administrative Agent.
	  	60
	         9.10
	  	 Other Agents; Lead Managers.
	  	60
		
	 ARTICLE X. MISCELLANEOUS
	  	61
	         10.01
	  	 Amendments, Etc.
	  	61
	         10.02
	  	 Notices and Other Communications; Facsimile Copies
	  	62
	         10.03
	  	 No Waiver; Cumulative Remedies
	  	63
	         10.04
	  	 Attorney Costs; Expenses and Taxes.
	  	64
	         10.05
	  	 Indemnification.
	  	64
	         10.06
	  	 Payments Set Aside
	  	65
	         10.07
	  	 Successors and Assigns
	  	65
	         10.08
	  	 Confidentiality.
	  	68
	         10.09
	  	 Set-off
	  	68
	         10.10
	  	 Interest Rate Limitation
	  	69
	         10.11
	  	 Counterparts.
	  	69
	         10.12
	  	 Integration; Electronic Execution of Assignments
	  	69
	         10.13
	  	 Survival of Representations and Warranties.
	  	70
	         10.14
	  	 Severability.
	  	70
	         10.15
	  	 Foreign Lenders.
	  	70
	         10.16
	  	 Governing Law.
	  	70
	         10.17
	  	 Waiver of Right to Trial by Jury, Etc
	  	71
	         10.18
	  	 USA PATRIOT Act Notice.
	  	71
	         10.19
	  	 Termination of Existing Credit Agreement
	  	72
	         10.20
	  	 ENTIRE AGREEMENT
	  	72
		
	 SIGNATURES
	  	S-1

  

 iii 

			
	 SCHEDULES
	 	 
		
	         1.01
	 	 Existing Letters of Credit

	         2.01
	 	 Commitments

	         5.12
	 	 Subsidiaries and other Equity Investments

	         7.01
	 	 Existing Liens

	         10.02
	 	 Addresses for Notices to Borrower, Guarantors and Administrative Agent

  

			
	 EXHIBITS
	 	 
	 	 	 Form of:

		
	         A-1
	 	         Borrowing Notice

	         A-2
	 	         Conversion/Continuation Notice

	         B
	 	         Note

	         C
	 	         Compliance Certificate pursuant to Section 6.02(a)

	         D
	 	         Assignment and Assumption

	         E-1
	 	         Subsidiary Guaranty

	         E-2
	 	         Guaranty (MLP)

	         F-1, F-2 and F-3
	 	         Opinions of Counsel

  

 iv 

 CREDIT AGREEMENT 
  

This CREDIT AGREEMENT (“Agreement”) is entered into as of November 22, 2004, among SUNOCO LOGISTICS PARTNERS OPERATIONS L.P., a
Delaware limited partnership (the “Borrower”), SUNOCO LOGISTICS PARTNERS L.P., a Delaware limited partnership (the “MLP”), each lender from time to time party hereto (collectively, the
“Lenders” and individually, a “Lender”), and CITIBANK, N.A., as Administrative Agent and L/C Issuer. 
  
 The Borrower has requested that the Lenders provide a revolving credit facility with a letter of credit sub-facility, and the Lenders are willing to do so
on the terms and conditions set forth herein. 
  
 In consideration
of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 
  
 ARTICLE I. 
 DEFINITIONS AND ACCOUNTING TERMS 
  
 1.01 Defined Terms. As used in this Agreement, the following terms
shall have the meanings set forth below: 
  
 Acquisition means any transaction or series of related transactions for the purpose of, or resulting in, directly or indirectly, (a) the acquisition by a Company of all or substantially all of the assets of a Person or of any
business or division of a Person; (b) the acquisition by a Company of more than 50% of any class of Voting Stock (or similar ownership interests) of any Person; or (c) a merger, consolidation, amalgamation, or other combination by a Company with
another Person if a Company is the surviving entity, provided that, (i) in any merger involving the Borrower, the Borrower must be the surviving entity; and (ii) in any merger involving a Wholly-Owned Subsidiary and another Subsidiary, a
Wholly-Owned Subsidiary shall be the survivor. 
  
 Acquisition Period means the period beginning with the payment of the purchase price for a Specified Acquisition (the “Acquisition Closing Date”) and ending on the earlier of (a) 270 days after the
commencement of such period or (b) the date on which the Borrower is in compliance with Section 7.14(b)(ii); provided that during any Acquisition Period, no additional Acquisition Period shall commence, nor shall such
Acquisition Period be extended, by any subsequent Specified Acquisition until the current Acquisition Period shall have terminated and Borrower shall be in compliance with Section 7.14(b)(ii). As used above, “Specified
Acquisition” means a Permitted Acquisition or an Investment in a Permitted Joint Venture (a) for which the aggregate purchase price, when added to the aggregate purchase price for other Permitted Acquisitions and Investments in
Permitted Joint Ventures closed during the twelve (12) calendar month period ending on the Acquisition Closing Date of such Permitted Acquisition or Investment, exceeds $50,000,000, and (b) which is designated by the Borrower (by written notice to
the Administrative Agent) as a “Specified Acquisition”, such designation to be made at any time within 270 days after the Acquisition Closing Date of such Permitted Acquisition or Investment. 
  
 Administrative Agent means Citibank in its capacity as
administrative agent under any of the Loan Documents, or any successor administrative agent. 
  
 Administrative Agent’s Office means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the
Administrative Agent may from time to time notify to the Borrower and the Lenders. 
  

 1 

 Administrative Details Form means the Administrative Details Form furnished by a Lender to
the Administrative Agent in connection with this Agreement. 
  
 Affiliate means, as to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. A Person shall be deemed to be controlled by any other Person
if such other Person possesses, directly or indirectly, power (a) to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managing general partners; or (b) to direct or cause the
direction of the management and policies of such Person whether by contract or otherwise. 
  
 Agent/Arranger Fee Letter has the meaning specified in Section 2.08(d). 
  
 Agent-Related Persons means the Administrative Agent (including any successor administrative agent), together with its Affiliates
(including, in the case of Citibank in its capacity as the Administrative Agent, Citigroup Global Markets Inc.), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 
  
 Aggregate Commitments has the meaning set forth in the
definition of “Commitment.” 
  
 Aggregate Committed Sum means, on any date of determination, the sum of all Committed Sums then in effect for all Lenders (as the same may have been reduced, increased or canceled as provided in the Loan Documents).

  
 Agreement means this Credit Agreement.

  
 Applicable Rate means the following percentages
per annum (stated in terms of basis points) set forth in the table below, on any date of determination, with respect to the Type of Borrowing or facility fee that corresponds to the Pricing Level, as determined based upon the Borrower’s Debt
Rating. 
  

											
	 Pricing
Level

	  	 Debt Rating

	  	Facility
Fee

	  	Applicable Rate for
Eurodollar Rate Loans
and Letters of Credit

	  	Applicable
Rate for
Base Rate
Loans

	  	Utilization
Fee

	 1
	  	 3BBB+/Baa1
	  	12.5	  	37.5	  	0	  	12.5
	 2
	  	 BBB/Baa2
	  	15.0	  	47.5	  	0	  	12.5
	 3
	  	 BBB-/Baa3
	  	17.5	  	70.0	  	0	  	12.5
	 4
	  	 £BB+/Ba1 or unrated
	  	25.0	  	100.0	  	0	  	12.5

  
 Each change in the Applicable Rate
resulting from a publicly announced change in the Debt Rating shall be effective, in the case of an upgrade, during the period commencing on the date of delivery by the Borrower to the Administrative Agent of notice thereof pursuant to Section
6.03(d) and ending on the date immediately preceding the effective date of the next such change and, in the case of a downgrade, during the period commencing on the date of the public announcement thereof and ending on the date immediately
preceding the effective date of the next such change. 
  
 Asset Acquisition has the meaning set forth in Section 7.14(c)(i). 
  
 Assignment and Assumption means an Assignment and Assumption substantially in the form of Exhibit D or any other form approved
by the Administrative Agent. 
  

 2 

 Attorney Costs means and includes all reasonable fees and reasonable disbursements of any
law firm or other external counsel and the reasonable allocated cost of internal legal services and all disbursements of internal counsel. 
  
 Attributable Indebtedness means, on any date, in respect of any Capital Lease of any Person, the capitalized amount thereof that would
appear on a balance sheet of such Person prepared as of such date in accordance with GAAP. 
  
 Attributable Principal means, on any date, in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease. 
  
 Audited Financial Statement means the audited consolidated balance sheet of the MLP and its Subsidiaries for the fiscal year ended December
31, 2003 and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the MLP and its Subsidiaries, including the notes thereto. 
  
 Authorizations means all filings, recordings, and registrations
with, and all validations or exemptions, approvals, orders, authorizations, consents, franchises, licenses, certificates, and permits from, any Governmental Authority. 
  
 Bank Guaranties means guaranties or other agreements or instruments serving a similar function issued by a
bank or other financial institution. 
  
 Barclays
means Barclays Bank PLC. 
  
 Base Rate means for any
day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Citibank as its “prime rate.” Such rate
is a rate set by Citibank based upon various factors including Citibank’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below
such announced rate. Any change in such rate announced by Citibank shall take effect at the opening of business on the day specified in the public announcement of such change. 
  
 Base Rate Loan means a Loan that bears interest based on the Base Rate. 
  
 Board means the Board of Governors of the Federal Reserve
System of the United States of America. 
  
 Borrower
has the meaning set forth in the introductory paragraph hereto. 
  
 Borrower Affiliate means each Subsidiary of the Borrower, the General Partner, the MLP, the general partner of the MLP, each Guarantor, and their respective Subsidiaries. 
  
 Borrower Operating Agreements means the following: (a)
Borrower’s and its Subsidiaries’ Organization Documents, (b) the Omnibus Agreement, (c) the Contribution Agreement, (d) the Throughput Agreement, (e) the Interrefinery Lease Agreement, (f) the Treasury Services Agreement, and (g) the
Intellectual Property Agreement. 
  

 3 

 Borrowing means a borrowing consisting of simultaneous Loans of the same Type and having
the same Interest Period made by each of the Lenders pursuant to Section 2.01. 
  
 Borrowing Notice means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a continuation of Loans as the same Type, pursuant to Section 2.03(a),
which, if in writing, shall be substantially in the form of Exhibit A-1 or A-2, as applicable. 
  
 Business Day means any day other than a Saturday, Sunday, or other day on which commercial banks are authorized to close under the Laws of,
or are in fact closed in, New York or the state where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which dealings in Dollar deposits are conducted by and between banks
in the applicable offshore Dollar interbank market. 
  
 Canadian Subsidiary means a Subsidiary of the Borrower organized under the laws of Canada or a Canadian province. 
  
 Capital Expenditure by a Person means an expenditure (determined in accordance with GAAP) for any fixed asset owned by such Person for use
in the operations of such Person having a useful life of more than one year, or any improvements or additions thereto. 
  
 Capital Lease means any capital lease or sublease which should be capitalized on a balance sheet in accordance with GAAP. 
  
 Cash Collateralize means to pledge and deposit with or deliver
to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash and deposit account balances held pursuant to documentation satisfactory to the Administrative Agent and the L/C Issuer
(which documents are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. 
  
 Change of Control means (a) the failure of Sunoco to own, directly or indirectly, 51% of the general partner interests in the MLP, (b) the
failure of the MLP to own, free of all Liens, directly or indirectly, 100% of the general partner interests in the Borrower, (c) the failure of Sunoco to control the management of both the MLP and the Borrower, or (d) the failure of the MLP to own,
free of all Liens, all of the limited partner interests in the Borrower. 
  
 Change in Law means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any
Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the L/C Issuer (or, for purposes of Section 3.04(b), by any lending office of such Lender or by such Lender’s or the L/C Issuer’s
holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. 
  
 Citibank means Citibank, N.A. 
  
 Clean Down Period has the meaning set forth in Section 6.15. 
  
 Closing Date means the date upon which all the conditions
precedent in Section 4.01 are satisfied or waived in accordance with Section 10.01 (or, in the case of Sections 4.01(b) and (c), waived by the Person entitled to receive the applicable
payment). 
  
 Code means the Internal Revenue Code
of 1986. 
  

 4 

 Commitment means, as to each Lender, its obligation to make Loans to the Borrower pursuant
to Section 2.01, and to purchase participations in L/C Obligations pursuant to Section 2.02, in an aggregate principal amount at any one time outstanding not to exceed its Committed Sum, in each case as such amount may be
reduced or adjusted from time to time in accordance with this Agreement (collectively, the “Aggregate Commitments”). 
  
 Committed Sum means for any Lender, at any date of determination occurring prior to the Maturity Date, the amount stated beside such
Lender’s name on the most-recently amended Schedule 2.01 to this Agreement (which amount is subject to increase, reduction, or cancellation in accordance with the Loan Documents). 
  
 Company and Companies means, on any date of
determination thereof, the MLP, the Borrower and each of their respective Subsidiaries. 
  
 Compensation Period has the meaning set forth in Section 2.11(e)(ii). 
  
 Compliance Certificate means a certificate substantially in the form of Exhibit C. 
  
 Consolidated EBITDA means, for any period, for the MLP and its
Subsidiaries on a consolidated basis, an amount equal to the sum of (a) Consolidated Net Income, (b) Consolidated Interest Charges, (c) the amount of taxes, based on or measured by income, used or included in the determination of such Consolidated
Net Income, and (d) the amount of depreciation and amortization expense deducted in determining such Consolidated Net Income. 
  
 Consolidated Interest Charges means, for any period, for the MLP and its Subsidiaries on a consolidated basis, the sum of (a) all interest,
premium payments, fees, charges and related expenses of the MLP and its Subsidiaries in connection with Indebtedness (including capitalized interest) other than Excluded Affiliate Debt, in each case to the extent treated as interest in accordance
with GAAP, and (b) the portion of rent expense of the MLP and its Subsidiaries with respect to such period under Capital Leases that is treated as interest in accordance with GAAP. 
  
 Consolidated Net Income means, for any period, for the MLP and its Subsidiaries on a consolidated basis, the
net income or net loss of the MLP and its Subsidiaries from continuing operations, provided that there shall be excluded from such net income (to the extent otherwise included therein): (a) the income (or loss) of any entity other than
a Subsidiary in which the MLP or any Subsidiary has an ownership interest, except to the extent that any such income has been actually received by the MLP or such Subsidiary in the form of cash dividends or similar cash distributions; (b) net
extraordinary gains and losses (other than, in the case of losses, losses resulting from charges against net income to establish or increase reserves for potential environmental liabilities and reserves for exposure under rate cases), and (c) any
gains or losses attributable to non-cash write-ups or write-downs of assets. 
  
 Consolidated Total Debt means, as of any date of determination, for the MLP and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal amount of all obligations and
liabilities, whether current or long-term, for borrowed money (including Obligations hereunder), (b) Capital Leases, and (c) without duplication, all Guaranty Obligations with respect to Indebtedness of the type specified in subsections
(a) and (b) above. 
  
 Contractual
Obligation means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
  

 5 

 Contribution Agreement means the Contribution, Conveyance and Assumption Agreement dated as
of February 8, 2002 among Sunoco Partners LLC, the MLP, the Borrower, and certain Affiliates of Sunoco. 
  
 Credit Extension means each of the following: (a) a Borrowing and (b) an L/C Credit Extension. 
  
 Crude Oil Purchase Agreements means Crude Oil Purchase
Agreements between Sunoco Partners Marketing & Terminals and Sunoco R&M, entered into from time to time. 
  
 Customary Coverage means insurance coverage in such amounts, with such deductibles and covering such risks as are customarily carried by
companies engaged in similar businesses and owning similar properties in localities where the Borrower or its Subsidiaries operate. 
  
 Debt Rating of the Borrower means, as of any date of determination, the rating as determined by either S&P or Moody’s
(collectively, the “Debt Ratings”) of the Borrower’s non-credit-enhanced, senior unsecured long-term debt; provided that if a Debt Rating is issued by each of the foregoing rating agencies, then the higher
of such Debt Ratings shall apply, unless there is a split in Debt Ratings of more than one level, in which case the level that is one level lower than the higher Debt Rating shall apply. 
  
 Debtor Relief Laws means the Bankruptcy Code of the United States of America, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States of America or other applicable jurisdictions from time to
time in effect and affecting the rights of creditors generally. 
  
 Default means any event that, with the giving of any notice, the passage of time, or both, would be an Event of Default. 
  
 Default Rate means an interest rate equal to (a) the Base Rate plus (b) the Applicable Rate, if any, applicable to Base Rate Loans
plus (c) 2% per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus
2% per annum, in each case to the fullest extent permitted by applicable Laws. 
  
 Disposition or Dispose means the sale, transfer, license or other disposition (including any sale and leaseback transaction) of any property (including stock, partnership and other equity
interests) by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith. 
  
 Distribution Loan means a Loan which is made for the purpose of
paying a Quarterly Distribution. 
  
 Documentation
Agent-Related Person means each of KeyBank National Association, Suntrust Bank, and Wachovia Bank, National Association, together with their respective Affiliates, and their respective officers, directors, employees, agents and
attorneys-in-fact. 
  
 Dollar and $
means lawful money of the United States of America. 
  
 EDGAR means the Electronic Data Gathering and Retrieval System of the United States Securities and Exchange Commission. 
  

 6 

 Eligible Assignee means (a) a Lender; (b) an Affiliate of a Lender; and (c) any other
Person (other than a natural Person) approved by the Administrative Agent, the L/C Issuers and, unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
  
 Environmental Law means any applicable Law that relates to (a)
the condition or protection of air, groundwater, surface water, soil, or other environmental media, (b) the environment, including natural resources or any activity which affects the environment, (c) the regulation of any pollutants, contaminants,
wastes, substances, and Hazardous Substances, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.) (“CERCLA”), the Clean Air Act (42 U.S.C.
§ 7401 et seq.), the Federal Water Pollution Control Act, as amended by the Clean Water Act (33 U.S.C. § 1251 et seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. § 136 et seq.), the Emergency Planning and
Community Right to Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), the National Environmental Policy Act of 1969 (42 U.S.C. § 4321 et seq.), the Oil Pollution Act
(33 U.S.C. § 2701 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Rivers and Harbors Act (33 U.S.C. § 401 et seq.), the Safe Drinking Water Act (42 U.S.C. § 201 and § 300f et seq.), the
Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. § 6901 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), and
analogous state and local Laws, as any of the foregoing may have been and may be amended or supplemented from time to time, and any analogous enacted or adopted Law, or (d) the Release or threatened Release of Hazardous Substances. 
  
 ERISA means the Employee Retirement Income Security Act of 1974
and any regulations issued pursuant thereto. 
  
 ERISA
Affiliate means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions of this Agreement relating to obligations imposed under Section 412 of the Code). 
  
 ERISA Event means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section
4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
  
 Eurodollar Rate means for any Interest Period with respect to any Eurodollar Rate Loan: 
  
 (a) the rate per annum equal to the rate determined by the
Administrative Agent to be the offered rate that appears on the page (such page currently being page 3750) of the Telerate screen (or any successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits
in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or

  

 7 

 (b) if the rate referenced in the preceding subsection (a) does not appear
on such page or service or such page or service shall cease to be available, the rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British
Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period, or 
  
 (c) if the rates referenced in the preceding subsections (a) and (b) are not available, the rate per annum determined by the Administrative Agent as the rate of interest (rounded upward to the next 1/100th of 1%)
at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted by Citibank and with a term equivalent to such Interest
Period would be offered by Citibank’s London Branch to major banks in the offshore Dollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period. 
  
 Eurodollar Rate Loan means a Loan that bears interest at a rate
based on the Eurodollar Rate. 
  
 Event of Default
means any of the events or circumstances specified in Article VIII. 
  
 Evergreen Letter of Credit has the meaning specified in Section 2.02(b)(iii). 
  
 Excluded Affiliate Debt means Indebtedness that is included in the definition of Consolidated Total Debt, owed by the Borrower or a
Subsidiary of the Borrower to a Sunoco, Inc. Affiliate in an amount not to exceed $75,000,000 that (a) requires no payment of principal at any time prior to the date that is six (6) months after the Maturity Date, (b) requires no payment of interest
during the existence of a Default or Event of Default under this Agreement, (c) contains terms no less favorable to the Borrower and its Subsidiaries than could be obtained on an arm’s length basis from third parties, and (d) is subordinated to
the full payment of the Obligations pursuant to a subordination agreement satisfactory to the Required Lenders. 
  
 Existing Credit Agreement means the Credit Agreement dated as of February 1, 2002 among the Borrower, the Guarantor, Bank of America, N.A.
as Administrative Agent and L/C Issuer, and the lenders therein named, as amended by the First Amendment and Second Amendment thereto. 
  
 Existing Letters of Credit means the letters of credit, if any, issued pursuant to the Existing Credit Agreement and described on
Schedule 1.01. 
  
 Federal Funds Rate
means, for any day, the rate per annum (rounded upwards to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on
such day, as published by the Federal Reserve Bank on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to Citibank on such
day on such transactions as determined by the Administrative Agent. 
  

 8 

 Foreign Lender has the meaning specified in Section 10.15. 
  
 Foreign Subsidiary of any Person means a Subsidiary of such
Person that is organized or incorporated under the Laws of a jurisdiction other than a jurisdiction of the United States. 
  
 GAAP means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession, that are applicable
to the circumstances as of the date of determination, consistently applied. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required
Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders); provided that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) the Borrower shall provide to the Administrative Agent and the
Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change
in GAAP. 
  
 General Partner means Sunoco Logistics
Partners GP LLC, a Delaware limited liability company, the general partner of the Borrower. 
  
 Governmental Authority means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central
bank or other legal entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  

Granting Lender has the meaning specified in Section 10.07(i). 
  
 Guarantors means any Person, including the MLP and every
Subsidiary of Borrower (other than (a) a JV Holding Subsidiary to the extent provided in Section 6.13(b), and (b) a Canadian Subsidiary), which undertakes to be liable for all or any part of the Obligations by execution of a Guaranty,
or otherwise. 
  
 Guaranty means a Guaranty now or
hereafter made by any Guarantor in favor of the Administrative Agent on behalf of the Lenders, substantially in the form of Exhibit E-1 or Exhibit E-2, as may be amended from time to time. 
  
 Guaranty Obligation means, as to any Person, (a) any
obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other payment obligation of another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other payment obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other payment obligation of the payment of such Indebtedness or other payment obligation, (iii) to maintain working capital, equity capital or any
other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other payment obligation, or (iv) entered into for the purpose of assuring in any other manner the obligees in
respect of such Indebtedness or other payment obligation of the payment thereof or to protect such obligees against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person 

  

 9 

 
securing any Indebtedness or other payment obligation of any other Person, whether or not such Indebtedness or other payment obligation is assumed by such
Person; provided, however, that the term “Guaranty Obligation” shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guaranty Obligation
shall be deemed to be the lesser of (a) an amount equal to the stated or determinable outstanding amount of the related primary obligation and (b) the maximum amount for which such guarantying Person may be liable pursuant to the terms of the
instrument embodying such Guaranty Obligation, unless the outstanding amount of such primary obligation and the maximum amount for which such guarantying Person may be liable are not stated or determinable, in which case the amount of such Guaranty
Obligation shall be the maximum reasonably anticipated liability in respect thereof as determined by the guarantying Person in good faith. 
  
 Hazardous Substance means (a) any substance that is designated, defined, or classified as a hazardous waste, hazardous material, pollutant,
contaminant, or toxic or hazardous substance, or that is otherwise regulated, under any Environmental Law, including without limitation any hazardous substance within the meaning of Section 101(14) of CERCLA, and (b) petroleum, oil, gasoline,
natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons. 
  
 Honor Date has the meaning set forth in Section 2.02(c)(i). 
  
 Incremental EBITDA of an entity means the EBITDA of such entity for the most recent four fiscal quarters. For
this purpose: 
  
 EBITDA means an amount equal to
the sum of (a) Net Income, (b) Interest Charges, (c) the amount of taxes, based on or measured by income, used or included in the determination of such Net Income, and (d) the amount of depreciation and amortization expense deducted in determining
such Net Income. 
  
 Interest Charges means the sum
of (a) all interest, premium payments, fees, charges and related expenses in connection with Indebtedness (including capitalized interest), in each case to the extent treated as interest in accordance with GAAP, and (b) the portion of rent expense
with respect to such period under Capital Leases that is treated as interest in accordance with GAAP. 
  
 Net Income for a Person means the net income or net loss from continuing operations, provided that there shall be excluded from such
net income (to the extent otherwise included therein): (a) the income (or loss) of any entity other than a Subsidiary in which such Person has an ownership interest, except to the extent that any such income has been actually received by such Person
in the form of cash dividends or similar cash distributions; (b) net extraordinary gains and losses (other than, in the case of losses, losses resulting from charges against net income to establish or increase reserves for potential environmental
liabilities and reserves for exposure under rate cases), and (c) any gains or losses attributable to non-cash write-ups or write-downs of assets. 
  
 Increase Effective Date has the meaning set forth in Section 2.13(b). 
  
 Indebtedness means, as to any Person at a particular time, all
of the following: 
  
 (a) all obligations of such
Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; 
  

 10 

 (b) the face amount of all letters of credit (including standby and commercial),
banker’s acceptances, Bank Guaranties, surety bonds, and similar instruments issued for the account of such Person, and, without duplication, all drafts drawn and unpaid thereunder; 
  
 (c) whether or not so included as liabilities in accordance with GAAP, all obligations of such Person to pay
the deferred purchase price of property or services, other than trade accounts payable in the ordinary course of business not overdue by more than 60 days, and indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 
  
 (d) Capital Leases; and 
  
 (e) all Guaranty Obligations of such Person in respect of
any of the foregoing. 
  
 For all purposes hereof, the
Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which such Person is a general partner, unless such Indebtedness is expressly made non-recourse to such Person except for customary exceptions
acceptable to the Required Lenders. The amount of any Capital Lease as of any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date. 
  
 Indemnified Liabilities has the meaning set forth in Section 10.05. 
  
 Independent Insurers means sound and reputable insurance
companies not Affiliates of the Borrower. 
  
 Indemnitees has the meaning set forth in Section 10.05. 
  
 Intellectual Property Agreement means the Intellectual Property and Trademark License Agreement dated as of February 8, 2002, among the Borrower, Sunoco, Sunoco R&M, the MLP and certain other
Affiliates of Sunoco. 
  
 Interest Coverage Ratio
means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period of the four prior fiscal quarters ending on such date to Consolidated Interest Charges during such period. 
  
 Interest Payment Date means, (a) as to any Loan other than a
Base Rate Loan, the last day of each Interest Period applicable to such Loan; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the
beginning of such Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each March, June, September and December and the Maturity Date. 
  
 Interest Period means, as to each Eurodollar Rate Loan, the
period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its Borrowing Notice;
provided that: 
  
 (i) any Interest
Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar Rate Loan, such Business Day falls in another calendar month, in which case such Interest
Period shall end on the next preceding Business Day; 
  

 11 

 (ii) any Interest Period pertaining to a Eurodollar Rate Loan that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;
and 
  
 (iii) no Interest Period shall extend
beyond the scheduled Maturity Date. 
  
 Interrefinery Lease
Agreement means the Interrefinery Lease Agreement between Sunoco Pipeline L.P. and Sunoco R&M dated as of February 8, 2002. 
  
 Investment means, as to any Person, any acquisition or investment by such Person, whether directly or through a Subsidiary of such Person,
by means of (a) the purchase or other acquisition of capital stock or other securities of another Person, (b) a loan, advance or capital contribution to, guaranty of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a
business unit. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment. 
  
 Investment Grade Rating means ratings of BBB- and Baa3 or
better by S&P and Moody’s, respectively, of long-term non-enhanced senior unsecured debt. 
  
 IRS means the United States Internal Revenue Service. 
  
 JV Holding Subsidiary means PUT, LLC, a Delaware limited liability company and Sunoco West Texas Gulf Pipe
Line LLC, a Delaware limited liability company. 
  
 Laws means, collectively, all applicable international, foreign, federal, state and local statutes, treaties, rules, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, licenses, authorizations and permits of, any Governmental
Authority. 
  
 L/C Advance means, with respect to
each Lender, such Lender’s participation in any L/C Borrowing in accordance with its Pro Rata Share. 
  
 L/C Borrowing means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date
when made or refinanced as a Borrowing. 
  
 L/C Credit
Extension means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the renewal or increase of the amount thereof. 
  
 L/C Issuer means each of Citibank and Barclays in its capacity as issuer of Letters of Credit hereunder, or
any successor issuer of Letters of Credit hereunder. 
  
 L/C
Issuer Commitment means (a) with respect to each of Citibank and Barclays, $37,500,000, and (b) with respect to any Lender which agrees to be an L/C Issuer after the Closing Date, the aggregate face amount of Letters of Credit that such L/C
Issuer has agreed in writing to issue as of the date such Lender became a L/C Issuer. 
  

 12 

 L/C Obligations means, as at any date of determination, the aggregate undrawn face amount
of all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings. 
  
 Lender has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the L/C Issuer. 
  
 Lending Office means, as to any Lender, the office or offices
of such Lender set forth on its Administrative Details Form, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent. 
  
 Letter of Credit means any standby or commercial letter of credit issued hereunder and shall include the
Existing Letters of Credit. 
  
 Letter of Credit
Application means an application and agreement for the issuance or amendment of a letter of credit in the form from time to time in use by the L/C Issuer. 
  
 Letter of Credit Expiration Date means the day that is seven days prior to the Maturity Date (or, if such day
is not a Business Day, the next preceding Business Day). 
  
 Leverage Ratio means, for the MLP and its Subsidiaries on a consolidated basis, the ratio of (a) (i) Consolidated Total Debt as of the determination date minus (ii) Excluded Affiliate Debt as of such date to (b) (i)
Consolidated EBITDA for the period of the four fiscal quarters ending on such date, or if such date is not the last day of a fiscal quarter, ending on the last day of the fiscal quarter most recently ended. 
  
 Lien means any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever to secure or provide for payment of any obligation of any Person,
(including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the Uniform Commercial Code or comparable
Laws of any jurisdiction), including the interest of a purchaser of accounts receivable. 
  
 Loan means an extension of credit by a Lender to the Borrower pursuant to Section 2.01. 
  
 Loan Documents means this Agreement, each Note, the Agent/Arranger Fee Letter, each Borrowing Notice, each Compliance Certificate, and the
Guaranties. 
  
 Loan Parties means, collectively,
the Borrower and each Guarantor. 
  
 Material Adverse
Effect means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties or financial condition of the Borrower and its Subsidiaries taken as a whole or of the MLP and its Subsidiaries taken as a
whole; (b) a material impairment of the ability of the Borrower, the MLP, or any other Loan Party, collectively to perform their obligations under the Loan Documents; or (c) a material adverse effect upon the legality, validity, binding effect or
enforceability against the Borrower, against the MLP, or against the Loan Parties, collectively, of any Loan Documents. 
  

 13 

 Material Agreement means (a) each Borrower Operating Agreement, and (b) any other contract
material to the business of the Borrower and its Subsidiaries, taken as a whole. 
  
 Maturity Date means (a) the Stated Maturity Date, or (b) such earlier effective date of any other termination, cancellation, or acceleration of all Commitments under this Agreement. 
  
 Maximum Amount and Maximum Rate respectively
mean, for each Lender, the maximum non-usurious amount and the maximum non-usurious rate of interest which, under applicable Law, such Lender is permitted to contract for, charge, take, reserve, or receive on the Obligations. 
  
 MLP has the meaning set forth in the introductory paragraph
hereto. 
  
 Moody’s means Moody’s
Investors Service, Inc. 
  
 Multiemployer Plan means
any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding three calendar years, has made or been obligated
to make contributions. 
  
 Net Cash Proceeds means
with respect to any Disposition, cash (including any cash received by way of deferred payment pursuant to a promissory note or otherwise, as and when received) received by the Borrower or any of its Subsidiaries in connection with and as
consideration therefor, on or after the date of consummation of such transaction, after (a) deduction of Taxes payable in connection with or as a result of such transaction, (b) payment of all usual and customary brokerage commissions and all
other reasonable fees and expenses related to such transaction (including, without limitation, reasonable attorneys’ fees and closing costs incurred in connection with such transaction), (c) deduction of appropriate amounts required to be
reserved (in accordance with GAAP) for post-closing adjustments by the Borrower or any of its Subsidiaries in connection with such transaction, against any liabilities retained by the Borrower or any of its Subsidiaries after such transaction, which
liabilities are associated with the asset or assets being sold, including, without limitation, pension and other post-employment benefit liabilities and liabilities related to environmental matters or against any indemnification obligations
associated with such transaction, and (d) deduction for the amount of any Indebtedness (other than the Obligations or Indebtedness owed to the Borrower or any of its Subsidiaries) secured by the respective asset or assets being sold, which
Indebtedness is repaid as a result of such transaction; provided, however, in the case of Taxes that are deductible under clause (a) preceding or post-closing adjustments under clause (c) preceding, but which Taxes
or post-closing adjustments have not actually been paid or are not yet payable, the Borrower or any of its Subsidiaries selling such assets may deduct from the cash proceeds an amount (the “Reserved Amount”) equal to the
amount reserved in accordance with GAAP as a reasonable estimate for such Taxes or post-closing adjustments, so long as, at the time such Taxes or post-closing adjustments are actually paid, the amount, if any, by which the Reserved Amount
exceeds the Taxes or post-closing adjustments actually paid shall constitute additional “Net Cash Proceeds” of such Disposition. 
  
 Nonrenewal Notice Date has the meaning specified in Section 2.02(b)(iii). 
  
 Notes means promissory notes of the Borrower, substantially in
the form of Exhibit B hereto, evidencing the obligation of Borrower to repay the Loans, and “Note” means any one of such promissory notes issued hereunder. 
  
 Obligations means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan Document, whether direct or indirect (including those acquired by 

  

 14 

 
assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest that accrues after the commencement by or
against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding; provided that, all references to the “Obligations” in each Guaranty and in
Sections 2.11(c) and 10.09 of this Agreement shall, in addition to the foregoing, also include all present and future indebtedness, liabilities, and obligations (and all renewals and extensions thereof or any part
thereof) now or hereafter owed to any Lender or any Affiliate of a Lender arising from or pursuant to any Swap Contract entered into by the Borrower or any of its Subsidiaries. 
  
 Omnibus Agreement means the Omnibus Agreement dated as of February 8, 2002, among the MLP, General Partner,
the Borrower, Sunoco, Sunoco (R&M) and certain other Affiliates of Sunoco. 
  
 Organization Documents means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws; (b) with respect to any limited liability company, the certificate of
formation and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation and any agreement, instrument, filing or
notice with respect thereto filed in connection with its formation with the secretary of state or other department in the state of its formation, in each case as amended from time to time. 
  
 Other Taxes has the meaning specified in Section
3.01(b). 
  
 Outstanding Amount means on any
date, (i) with respect to Loans, the aggregate principal amount thereof after giving effect to any Borrowings and prepayments or repayments occurring on such date; and (ii) with respect to any L/C Obligations, the amount of such L/C Obligations on
such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements of outstanding unpaid drawings under
any Letters of Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date. 
  
 Participant has the meaning specified in Section 10.07(d). 
  
 Partnership Agreement (Borrower) means the Amended and Restated Agreement of Limited Partnership of Sunoco
Logistics Partners Operations L.P., dated as of February 8, 2002. 
  
 Partnership Agreement (MLP) means the Second Amended and Restated Agreement of Limited Partnership of the MLP, dated as of July 20, 2004. 
  

PBGC means the Pension Benefit Guaranty Corporation. 
  
 Pension Plan means any “employee pension benefit plan” (as such term is defined in Section
3(2)(A) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during the immediately preceding five plan years. 
  
 Permitted Acquisition means an Acquisition by the Borrower or a
Subsidiary of the Borrower, so long as the following requirements have been satisfied: 
  
 (i) Such Acquisition shall not result in the Borrower’s ownership of a Foreign Subsidiary other than a Canadian Subsidiary;

  

 15 

 (ii) At the time of the closing of the Acquisition, the Borrower shall deliver to the
Administrative Agent (A) a certificate of a Responsible Officer of Borrower certifying that as of the closing of the Acquisition, no Default or Event of Default (including a Default pursuant to Section 7.09) shall exist or occur as a
result thereof and after giving effect thereto, and (B) a copy of the purchase agreement governing such Acquisition; 
  
 (iii) At the time of closing of the Acquisition, the Borrower shall deliver to the Administrative Agent a certificate, demonstrating pro
forma compliance with Sections 7.01(i), 7.04(e) and (f), and 7.14, as of the closing of the Acquisition after giving effect thereto and after giving effect to any Indebtedness (including
Obligations) incurred in connection therewith; 
  
 (iv) If such Acquisition results in the Borrower’s ownership of a Subsidiary (other than a Canadian Subsidiary) who is not yet a Guarantor, the Borrower shall have complied with the requirements of Section 6.13 as of the
date of such Acquisition; and 
  
 (v) If such
Acquisition results in the Borrower’s ownership of a Canadian Subsidiary, the Borrower shall deliver to the Administrative Agent a certificate, demonstrating pro forma compliance with Section 7.02(i) as of the closing of such
Acquisition after giving effect thereto. 
  
 Permitted
Investments means: 
  
 (a) United States
Dollars; 
  
 (b) direct general obligations, or
obligations of, or obligations fully and unconditionally guaranteed as to the timely payment of principal and interest by, the United States or any agency or instrumentality thereof having remaining maturities of not more than thirteen (13) months,
but excluding any such securities whose terms do not provide for payment of a fixed dollar amount upon maturity or call for redemptions; 
  
 (c) certificates of deposit and eurodollar time deposits with maturities of thirteen (13) months or less, bankers acceptances with
maturities not exceeding one hundred eighty (180) days, overnight bank deposits and other similar short term instruments, in each case with any domestic commercial bank having capital and surplus in excess of $500,000,000 and having a rating of at
least “A2” by Moody’s and at least “A” by S&P; 
  
 (d) repurchase obligations with a term of not more than thirteen (13) months for underlying securities of the types described in (b) and (c) above entered into with any financial institution meeting the qualifications
in (c) above; 
  
 (e) commercial paper (having
original maturities of not more than two hundred seventy (270) days) of any person rated “P-1” or better by Moody’s or “A-1” or the equivalent by S&P; and 
  
 (f) money market mutual or similar funds having assets in excess of $100,000,000, at least 95% of the assets
of which are comprised of assets specified in clause (a) through (e) above. 
  

 16 

 Permitted Joint Venture means any Person (other than a Subsidiary) in which the Borrower
owns (including ownership through its Subsidiaries) equity interests representing less than 100% of the total outstanding equity interests of such Person, provided that such Person is engaged only in the businesses that are permitted for the
Borrower and its Subsidiaries pursuant to Section 7.09. 
  
 Permitted Liens means Liens permitted under Section 7.01 as described in such Section. 
  
 Person means any individual, trustee, corporation, general partnership, limited partnership, limited liability company, joint stock company,
trust, unincorporated organization, bank, business association, firm, joint venture or Governmental Authority. 
  
 Plan means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the
Borrower or any ERISA Affiliate. 
  
 Present and Related
Businesses means the storage, transportation and distribution of hydrocarbons, and businesses closely related thereto. 
  
 Principal Payment means a payment of principal (or, in the case of a Synthetic Lease, Attributable Principal), whether pursuant to an
amortization schedule, at maturity, or otherwise. 
  
 Pro
Rata Share means, at any date of determination, for any Lender, the percentage (carried out to the ninth decimal place) that its Committed Sum bears to the Aggregate Committed Sum. 
  
 Proceeds Account has the meaning set forth in Section
2.04(b)(iii). 
  
 Quarterly Distributions
means with respect to the Borrower, the distributions by the Borrower of Available Cash (as defined in the Partnership Agreement (Borrower)) or with respect to MLP, the distributions by the MLP of Available Cash (as defined in the Partnership
Agreement (MLP)). 
  
 Reduction Amount has the
meaning set forth in the definition of Triggering Sale. 
  
 Reference Period has the meaning set forth in Section 7.14(c)(i). 
  
 Refinery Assets means refineries and related assets that accept crude oil or feedstock or ship product pursuant to a Borrower Operating
Agreement. 
  
 Register has the meaning set forth in
Section 10.07(c).  
  
 Reinvested
means used for capital expenditures in connection with the Present and Related Business of a Company. 
  
 Release means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposal,
deposit, dispersal, migrating, or other movement into the air, ground, or surface water, or soil in violation of any Environmental Law. 
  
 Reportable Event means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period
has been waived. 
  
 Request for Credit Extension
means (a) with respect to a Borrowing, conversion or continuation of Loans, a Borrowing Notice, and (b) with respect to a L/C Credit Extension, a Letter of Credit Application. 
  

 17 

 Required Lenders means (a) on and after the Closing Date and at all times thereafter prior
to termination of the Commitments, Lenders whose Pro Rata Shares aggregate more than 50%, and (b) at any time after termination of the Commitments, those Lenders holding more than 50% of the sum of (i) the Loans plus (ii) the L/C
Obligations. 
  
 Responsible Officer means the
president, chief executive officer, chief financial officer, treasurer or assistant treasurer of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 
  
 Restricted Payment by a Person means any dividend or other
distribution (whether in cash, securities or other property) with respect to any equity interest in such Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of any such equity interest or of any option, warrant or other right to acquire any such equity interest. 
  
 Rights means rights, remedies, powers, privileges, and benefits. 
  
 S&P means Standard & Poor’s Ratings Services, a
division of the McGraw-Hill Companies, Inc. 
  
 Servicing
Employees has the meaning set forth in Section 5.15. 
  
 SPC has the meaning specified in Section 10.07(i). 
  
 Stated Maturity Date means November 20, 2009. 
  
 Subsidiary of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a
majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at
the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a
“Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower. 
  
 Subsidiary Guarantor means a Subsidiary of the Borrower that has executed a Guaranty. 
  
 Sunoco means Sunoco, Inc., a Pennsylvania corporation.

  
 Sunoco Contract Party means any Sunoco, Inc.
Affiliate that is a party to a Material Agreement with the MLP, the Borrower or a Subsidiary of Borrower, and any permitted assignee. 
  
 Sunoco, Inc. Affiliate means Sunoco and each Affiliate of Sunoco other than the Companies. 
  
 Sunoco Partners Marketing & Terminals means Sunoco Partners
Marketing & Terminals L.P., a Texas limited partnership, any successor entity or any entity to which all or substantially all of its assets are transferred. 
  

Sunoco Pipeline L.P. means Sunoco Pipeline L.P., a Texas limited partnership, any successor entity or any entity to which all or
substantially all of its assets are transferred. 
  

 18 

 Sunoco (R&M) means Sunoco, Inc. (R&M), a Pennsylvania corporation. 
  
 Swap Contract means (a) any and all rate swap transactions,
basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master
agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association,
Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities
under any Master Agreement. 
  
 Swap Termination
Value means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been
closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such Swap
Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include any Lender). 
  
 Syndication Agent-Related Person means Barclays Bank PLC, together with its Affiliates, and their respective
officers, directors, employees, agents and attorneys-in-fact. 
  
 Synthetic Lease Obligation means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations
that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). The amount of any Synthetic Lease
Obligation as of any date shall be deemed to be the amount of Attributable Principal in respect thereof as of such date. 
  
 Taxes has the meaning set forth in Section 3.01. 
  
 Throughput Agreement means the Pipelines and Terminals Storage and Throughput Agreement between the Borrower,
Sunoco R&M, and certain other Affiliates of Sunoco dated as of February 8, 2002. 
  
 Treasury Services Agreement means the Amended and Restated Treasury Services Agreement between the Borrower, the MLP, and Sunoco, dated as of November 26, 2003, pursuant to which the Borrower and the MLP
participate in Sunoco’s centralized cash management program. 
  
 Triggering Sale means any Disposition (other than a Disposition permitted by Section 7.06(a)(i), (ii) or (iii) by a Company to any other Person (other than to the Borrower or to a Wholly-Owned
Subsidiary of the Borrower) with respect to which the Net Cash Proceeds realized by any Company for such Disposition, when aggregated with the Net Cash Proceeds from all such other Dispositions by all Companies occurring since the Closing Date,
equals or exceeds an amount (the “Threshold Amount”) which is equal to 15% of the MLP’s consolidated assets (measured as of the close of the then most recent fiscal quarter end). The portion of the Net Cash Proceeds in
excess of the Threshold Amount is herein called the “Reduction Amount.” 
  

 19 

 Type means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate
Loan. 
  
 Unauthorized Assignment means an
assignment by a Sunoco Contract Party of any of its obligations under a Borrower Operating Agreement other than an assignment to a purchaser with an Investment Grade Rating who fully assumes the obligations of such Sunoco Contract Party under such
Borrower Operating Agreement. 
  
 Unfunded Pension
Liability means the excess of a Pension Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan year. 
  
 Unreimbursed Amount has the meaning set forth in Section 2.02(c)(i). 
  
 Voting Stock means the capital stock (or equivalent thereof) of any class or kind, of a Person, the holders of which are entitled to vote
for the election of directors, managers, or other voting members of the governing body of such Person. 
  
 Wholly-Owned when used in connection with a Person means any Subsidiary of such Person of which all of the issued and outstanding shares of
stock (except shares required as directors’ qualifying shares) shall be owned by such Person or one or more of its Wholly-Owned Subsidiaries. 
  

	 	1.02	Other Interpretive Provisions. 

  
 (a) The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. 
  
 (b) (i) The words “herein” and “hereunder”
and words of similar import when used in any Loan Document shall refer to such Loan Document as a whole and not to any particular provision thereof. 
  
 (ii) Unless otherwise specified herein, Article, Section, Exhibit and Schedule references are to this Agreement. 
  
 (iii) The term “including” is by way of
example and not limitation. 
  
 (iv) The term
“documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced. 
  
 (c) In the computation of periods of time from a specified date to a later specified date, the word “from”
means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.” 

 
 (d) Section headings herein and the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document. 
  
 1.03 Accounting Terms. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial
data required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein. 
  

 20 

 1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to this
Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number). 
  
 1.05 References to Agreements and Laws. Unless otherwise expressly provided herein, (a) references to agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Law
shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law. 
  
 ARTICLE II. 
 THE COMMITMENTS AND
BORROWINGS 
  
 2.01 Loans. 
  
 (a) Subject to the terms and conditions set forth herein, each Lender
severally, but not jointly, agrees to make loans (each such loan, a “Loan”) to the Borrower from time to time on any Business Day during the period from the Closing Date to the Maturity Date, in an aggregate amount not to
exceed at any time outstanding the amount of such Lender’s Commitment. Such Borrowings may be prepaid and reborrowed from time to time in accordance with the terms and provisions of the Loan Documents; provided that, each such Borrowing
must occur on a Business Day and no later than the Business Day immediately preceding the Maturity Date, and provided, further, that after giving effect to any Borrowing, (i) the aggregate Outstanding Amount of all Loans and L/C
Obligations shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such
Lender’s Commitment. 
  
 (b) Loans shall be available to the
Borrower for the purposes set forth in Section 6.12; provided, however, the total outstanding principal amount of Distribution Loans may not at any time exceed $20,000,000. 
  
 2.02 Letters of Credit. (a) The Letter of Credit Commitment.

  
 (i) Subject to the terms and conditions set
forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.02, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue Letters of Credit for the account of the Borrower or its Subsidiaries, and to amend or renew Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor drafts under
the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of the Borrower and its Subsidiaries; provided that the L/C Issuer shall not be obligated to make any L/C Credit Extension
with respect to any Letter of Credit, and no Lender shall be obligated to participate in, any Letter of Credit if as of the date of such L/C Credit Extension, (x) the Outstanding Amount of all L/C Obligations and all Loans would exceed the Aggregate
Commitments, (y) the aggregate Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations would exceed such Lender’s Commitment, or (z) the Outstanding Amount of
the L/C Obligations under Letters of Credit issued by such L/C Issuer would exceed the L/C Issuer 

  

 21 

 
Commitment of such L/C Issuer. Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed. All Existing Letters of Credit, if
any, shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof. 
  
 (ii) The L/C Issuer shall be under no obligation to issue any Letter of Credit if: 
  
 (A) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer with
respect to such Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it; 
  
 (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer; or 
  
 (C) such Letter of Credit is in a face amount less than
$100,000, or is to be used for a purpose other than as described in Section 6.12 or is denominated in a currency other than Dollars. 
  
 (iii) The L/C Issuer shall not issue a Letter of Credit if: 
  
 (A) subject to Section 2.02(b)(iii), the expiry date of such requested Letter of Credit would
occur more than twelve months after the date of issuance or last renewal, unless the Required Lenders have approved such expiry date; or 
  
 (B) the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date. 
  
 (iv) The L/C
Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit
does not accept the proposed amendment to such Letter of Credit. 
  
 (b) Procedures for Issuance and Amendment of Letters of Credit; Evergreen Letters of Credit. 
  
 (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer
(with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower. Such L/C Application must be received by the L/C Issuer and the Administrative
Agent not later than 11:00 a.m., New York time, at least two Business Days (or such later date and time as the L/C Issuer may agree in a particular instance in its sole discretion) 

  

 22 

 
prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such
Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D)
the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; and
(G) such other matters as the L/C Issuer may require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter of
Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may require. 
  
 (ii) Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer will provide the
Administrative Agent with a copy thereof. Upon receipt by the L/C Issuer of confirmation from the Administrative Agent that the requested issuance or amendment is permitted in accordance with the terms hereof, then, subject to the terms and
conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and
customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a participation in such Letter of Credit in an
amount equal to the product of such Lender’s Pro Rata Share times the amount of such Letter of Credit. 
  
 (iii) If the Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in it sole and absolute discretion,
agree to issue a Letter of Credit that has automatic renewal provisions (each, an “Evergreen Letter of Credit”); provided that any such Evergreen Letter of Credit must permit the L/C Issuer to prevent any such renewal
at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Nonrenewal Notice Date”) in each such
twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific request to the L/C Issuer for any such renewal. Once an Evergreen
Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the renewal of such Letter of Credit at any time to a date not later than the Letter of Credit Expiration Date;
provided, however, that the L/C Issuer shall not permit any such renewal if it has received notice on or before the Business Day immediately preceding the Nonrenewal Notice Date (1) from the Administrative Agent that the Required
Lenders have elected not to permit such renewal or (2) from any Lender stating that one or more of the applicable conditions specified in Section 4.02 is not then satisfied and directing the L/C Issuer not to permit such renewal.
Notwithstanding anything to the contrary contained herein, the L/C Issuer shall have no obligation to permit the renewal of any Evergreen Letter of Credit at any time. 
  
 (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an
advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment. 
  

 23 

 (c) Drawings and Reimbursements; Funding of Participations. 
  
 (i) Upon any drawing under any Letter of Credit, the L/C
Issuer shall notify the Borrower and the Administrative Agent thereof. Not later than 11:00 a.m., New York time, on the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the
Borrower shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender
of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and such Lender’s Pro Rata Share thereof. In such event, the Borrower shall be deemed to have requested a Borrowing of Base Rate
Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.03 for the principal amount of Base Rate Loans, but subject to the amount of the
unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02 (other than the delivery of a Borrowing Notice). Any notice given by the L/C Issuer or the Administrative Agent pursuant to this Section
2.02(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. 
  
 (ii) Each Lender (including the Lender acting as L/C Issuer)
shall upon any notice pursuant to Section 2.02(c)(i) make funds available to the Administrative Agent for the account of the L/C Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata Share of the
Unreimbursed Amount not later than 1:00 p.m., New York time, on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.02(c)(iii), each Lender that so makes funds
available shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The Administrative Agent shall remit the funds so received to the L/C Issuer. 
  
 (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing of Base Rate Loans
because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant
to Section 2.02(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section
2.02. 
  
 (iv) Until each Lender funds
its Loan or L/C Advance pursuant to this Section 2.02(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be solely for the
account of the L/C Issuer. 
  
 (v) Each
Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.02(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the L/C Issuer, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default
or Event of Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing. Any such reimbursement shall not relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the
amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein. 
  

 24 

 (vi) If any Lender fails to make available to the Administrative Agent for the account of
the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.02(c) by the time specified in Section 2.02(c)(ii), the L/C Issuer shall be entitled to recover from such
Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum
equal to the Federal Funds Rate from time to time in effect. A certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent
manifest error. 
  
 (d) Repayment of Participations.

  
 (i) At any time after the L/C Issuer has made
a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.02(c), if the Administrative Agent receives for the account of the L/C Issuer
any payment related to such Letter of Credit (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), or any payment of interest thereon, the Administrative Agent will
distribute to such Lender its Pro Rata Share thereof in the same funds as those received by the Administrative Agent. 
  
 (ii) If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.02(c)(i) is
required to be returned, each Lender shall pay to the Administrative Agent for the account of the L/C Issuer its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount
is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. 
  
 (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C Issuer for each drawing under each Letter of Credit, and to
repay each L/C Borrowing and each drawing under a Letter of Credit that is refinanced by a Borrowing of Loans, shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all
circumstances, including the following: 
  
 (i)
any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other agreement or instrument relating thereto; 
  
 (ii) the existence of any claim, counterclaim, set-off, defense or other right that the Borrower may have at any time against any
beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 
  
 (iii) any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit; 
  

 25 

 (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for
the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or 

 
 (v) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, that might otherwise constitute a defense available to, or a discharge of, the Borrower. 
  
 The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the L/C Issuer. The Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents
unless such notice is given as aforesaid. 
  
 (f) Role of L/C
Issuer. Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. Neither the L/C Issuer, nor any of the respective Affiliates,
correspondents, participants or assignees of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any
action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application.
The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the
Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. Neither the L/C Issuer, nor any of the respective Affiliates, correspondents, participants or assignees of
the L/C Issuer, shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.02(e); provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason. 
  
 (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any Letter of Credit may for any reason remain outstanding and partially or wholly undrawn, the Borrower shall immediately
Cash Collateralize the then Outstanding Amount of all L/C Obligations (in an amount equal to such 

  

 26 

 
Outstanding Amount). In addition, Sections 2.04(c) and 8.02 set forth certain requirements to Cash Collateralize under the
circumstances therein described. The Borrower hereby grants to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in all such cash, deposit accounts and all balances therein and all proceeds of the
foregoing. Cash collateral shall be maintained in blocked interest bearing deposit accounts at the Administrative Agent. 
  
 (h) Applicability of ISP98 and UCP. Unless otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued
(including any such agreement applicable to an Existing Letter of Credit), the rules of the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance) shall apply to each standby Letter of Credit, and the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of
issuance, shall apply to each commercial Letter of Credit. 
  
 (i)
Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Pro Rata Share a Letter of Credit fee for each Letter of Credit issued equal to the Applicable Rate times
the actual daily undrawn amount under each Letter of Credit. Such fee for each Letter of Credit shall be due and payable on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the
issuance of such Letter of Credit, and on the Letter of Credit Expiration Date. If there is any change in the Applicable Rate during any quarter, the actual daily undrawn amount of each Letter of Credit shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect. 
  
 (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The Borrower shall pay directly to the L/C Issuer for its own
account a fronting fee in an amount with respect to each Letter of Credit issued equal to 1/8 of 1% per annum on the daily undrawn amount thereunder, due and payable quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the issuance of such Letter of Credit, and on the Letter of Credit Expiration Date. In addition, the Borrower shall pay directly to the L/C Issuer for its own account the customary
issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect. Such fees and charges are due and payable on demand and are
nonrefundable. 
  
 (k) Conflict with Letter of Credit
Application. In the event of any conflict between the terms hereof and the terms of any Letter of Credit Application, the terms hereof shall control. 
  
 2.03 Borrowings, Conversions and Continuations of Loans. 
  

(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Loans as the same Type shall be made upon the
Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 11:00 a.m., New York time, (i) three Business Days prior to the requested
date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans, (ii) one Business Day prior to the conversion of Eurodollar Rate Loans to Base Rate Loans, and (iii) on the requested date of any Borrowing of Base Rate Loans. Each
such telephonic notice must be confirmed promptly by delivery to the Administrative Agent of a written Borrowing Notice, appropriately completed and signed by an authorized officer of the Borrower. Each Borrowing of, conversion to or continuation of
Eurodollar Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $500,000 in excess thereof. Each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof. Each Borrowing Notice (whether telephonic 

  

 27 

 
or written) shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Loans as
the same Type, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be
borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Borrowing Notice or if the Borrower fails to give a timely
notice requesting a conversion or continuation, then the applicable Loans shall be made or continued as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Borrowing Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of one month. 
  
 (b)
Following receipt of a Borrowing Notice, the Administrative Agent shall promptly notify each Lender of its Pro Rata Share of the applicable Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the
Administrative Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans described in the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of its Loan available to the
Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m., New York time, on the Business Day specified in the applicable Borrowing Notice. Upon satisfaction of the applicable conditions
set forth in Section 4.02 (and, if such Borrowing is the initial Borrowing, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the books of Citibank with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to the Administrative Agent by
the Borrower; provided, however, that if, on the date of the Borrowing there are L/C Borrowings outstanding, then the proceeds of such Borrowing shall be applied, first, to the payment in full of any such L/C Borrowings, and
second, to the Borrower as provided above. 
  
 (c) Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of the Interest Period for such Eurodollar Rate Loan. During the existence of a Default or Event of Default, no Loans may be requested as,
converted to or continued as Eurodollar Rate Loans without the consent of the Required Lenders, and the Required Lenders may demand that any or all of the then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans.

  
 (d) The Administrative Agent shall promptly notify the
Borrower and the Lenders of the interest rate applicable to any Eurodollar Rate Loan upon determination of such interest rate. The determination of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence of manifest error.

  
 (e) After giving effect to all Borrowings, all conversions of
Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be more than ten (10) Interest Periods in effect at any given time with respect to Loans. 
  
 2.04 Prepayments. 
  
 (a) Optional Prepayments. The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay in whole or in part the Loans without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m., New York
time, (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans, and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans 

  

 28 

 
shall be in a principal amount of $500,000 or a whole multiple of $500,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly notify each Lender
of its receipt of each such notice, and of such Lender’s Pro Rata Share of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be
applied to the Loans of the Lenders in accordance with their respective Pro Rata Shares. 
  
 Unless a Default or Event of Default has occurred and is continuing or would arise as a result thereof any payment or prepayment of the Loans may be reborrowed by Borrower, subject to the terms and conditions hereof.

  
 (b) Mandatory Prepayments from Net Cash Proceeds of
Triggering Sales. 
  
 (i) If any portion of
the Net Cash Proceeds realized by a Company from any Triggering Sale (including any deferred purchase price therefor) has not been Reinvested within two hundred seventy (270) days from the receipt by such Company of such Net Cash Proceeds (including
receipt of any deferred payments for any such Triggering Sale or portion thereof, if and when received), then on the Business Day following such two hundred and seventieth (270th) day the Commitments shall be permanently reduced, and the Loans shall be prepaid, in an amount equal to the Reduction Amount that is not so Reinvested.

  
 (ii) The prepayments provided for in this
Section 2.04(b) shall be applied as follows, unless a Default or Event of Default has occurred and is continuing or would arise as a result thereof (whereupon the provisions of Section 2.11(d)shall apply): (A)
first, as a payment of all Unreimbursed Amounts then outstanding, until paid in full, and (B) second, as a prepayment of the Outstanding Loans. All mandatory prepayments shall be allocated Pro Rata to each Lender. All mandatory prepayments made
pursuant to this Section 2.04(b) shall permanently reduce the Commitments. 
  
 (iii) Within two (2) Business Days of a Company’s receipt of Net Cash Proceeds from a Triggering Sale, the Borrower shall (or shall
cause the applicable Company to) deposit an amount equal to the Reduction Amount into an account with the Administrative Agent (the “Proceeds Account”); provided, however, that the Borrower shall not be required to
deposit an amount that is more than the amount of the Commitments. Such proceeds shall remain in the Proceeds Account until the earlier of (x) the date such proceeds are Reinvested, or (y) the two hundred and seventieth (270th) day following the receipt of such proceeds. If such proceeds are not Reinvested as herein provided, such proceeds shall, on
the Business Day following such ninetieth day, be used for prepayment of Loans and any excess shall be refunded to the Borrower, or, if there are no outstanding Loans, or unpaid outstanding Obligations then due, such proceeds shall be refunded to
the Borrower, and the Commitments shall be permanently reduced as provided in Section 2.04(b)(i); provided, however, that if the outstanding Loans are Eurodollar Rate Loans, the Administrative Agent shall hold such
proceeds in the Proceeds Account until the Eurodollar Rate Loans can be prepaid without incurring funding losses under Section 3.05; provided, further, that if the Loans have become due and payable pursuant to
Section 8.02 or otherwise, the Administrative Agent may, without notice, apply all funds in the Proceeds Account to repayment of the Obligations. 
  

 29 

 (iv) All funds held in the Proceeds Account shall be invested in time deposits or
certificates of deposit issued by the Administrative Agent or in investments that constitute Permitted Investments (provided that the maturities thereof shall not exceed 90 days). All interest and income earned on the amounts held in the
Proceeds Account shall be paid to the Borrower at the time the funds therein are applied as provided in this Section 2.04(b). 
  
 (v) The Borrower hereby grants to the Administrative Agent, for the benefit of the Lenders, a lien on and security interest in and to the
Proceeds Account and all monies, cash, checks, drafts, certificates of deposit, instruments, investment property, and other items ever received by Administrative Agent for deposit therein and held therein, as security for the Obligations. The rights
granted by this Section 2.04(b)(v) shall be in addition to the rights of the Administrative Agent under any statutory banker’s Lien or the common law right of setoff. 
  
 (c) Mandatory Payments/Reductions. If for any reason the Outstanding Amount of all Loans and L/C Obligations at any
time exceeds the Aggregate Commitments then in effect, the Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess. 
  
 (d) Mandatory Prepayments: Interest/Consequential Loss. All
prepayments under this Section 2.04 shall be made together with accrued interest to the date of such prepayment on the principal amount prepaid and any amounts due under Section 3.05. 
  
 (e) Mandatory Prepayments: Clean-Down Period. The Borrower shall make
such prepayments of Borrowings used to fund Quarterly Distributions as are required in order to comply with Section 6.15. For purposes of calculating compliance with Section 6.15, when a prepayment of Loans is made
pursuant to this Section 2.04, unless otherwise specified by the Borrower, such prepayment shall first be considered to prepay Loans made for Quarterly Distributions, and second be considered to prepay Loans made for
other purposes permitted by Section 6.12. 
  
 2.05 Reduction or Termination of Commitments. The Borrower may, upon notice to the Administrative Agent, terminate the Aggregate Commitments, or permanently reduce the Aggregate Commitments to an amount not less than the then
Outstanding Amount of all Loans and L/C Obligations; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m., five Business Days prior to the date of termination or reduction, and (ii) any
such partial reduction shall be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof. The Administrative Agent shall promptly notify the Lenders of any such notice of reduction or termination. Once reduced in
accordance with this Section, the Commitments may not be increased. Any reduction of the Aggregate Commitments shall be applied to the Aggregate Commitments of each Lender according to its Pro Rata Share. All facility fees on the portion of the
Commitment so terminated which have accrued to the effective date of any termination of Commitments shall be paid on the effective date of such termination. 
  
 2.06 Repayment of Loans. The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Loans outstanding on such
date. 
  
 2.07 Interest. (a) Subject to the provisions of
subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the
Applicable Rate and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate. 
  

 30 

 (b) While any Event of Default exists or after acceleration, (i) the Borrower shall pay interest on the
principal amount of all outstanding Obligations at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Law, and (ii) accrued and unpaid interest on past due amounts (including
interest on past due interest) shall be due and payable upon demand. 
  
 (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 
  
 (d) If the designated rate applicable to any Borrowing exceeds the Maximum Rate, the rate of interest on such Borrowing shall be limited to the Maximum
Rate, but any subsequent reductions in such designated rate shall not reduce the rate of interest thereon below the Maximum Rate until the total amount of interest accrued thereon equals the amount of interest which would have accrued thereon if
such designated rate had at all times been in effect. In the event that at maturity (stated or by acceleration), or at final payment of the Outstanding Amount of any Loans or L/C Obligations, the total amount of interest paid or accrued is less than
the amount of interest which would have accrued if such designated rates had at all times been in effect, then, at such time and to the extent permitted by Law, the Borrower shall pay an amount equal to the difference between (a) the lesser of the
amount of interest which would have accrued if such designated rates had at all times been in effect and the amount of interest which would have accrued if the Maximum Rate had at all times been in effect, and (b) the amount of interest actually
paid or accrued on such Outstanding Amount. 
  
 2.08 Fees.
(a) Facility Fee. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Pro Rata Share, a facility fee equal to the Applicable Rate times the actual daily amount of the Aggregate
Commitments, regardless of usage. The facility fee shall accrue at all times from the Closing Date until the Maturity Date and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The facility fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount
shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect. The facility fee shall accrue at all times from and after the Closing Date, including at any time during
which one or more of the conditions in Article IV is not met. 
  
 (b) Utilization Fee. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its Pro Rata Share, a utilization fee equal to the Applicable Rate times the
actual daily aggregate Outstanding Amount of Loans and L/C Obligations on each day that such aggregate Outstanding Amount exceeds 50% of the Aggregate Commitments. The utilization fee shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The utilization fee shall be calculated quarterly in arrears. The utilization fee shall accrue
at all times, including at any time during which one or more of the conditions in Article IV is not met. 
  
 (c) Arranger’s and Agency Fees. The Borrower shall pay certain fees to the Arranger for the Arranger’s own account, and shall pay an
agency fee to the Administrative Agent for the Administrative Agent’s own account, in the amounts and at the times specified in the letter agreement, dated November 3, 2004 (the “Agent/Arranger Fee Letter”), between the
Borrower, the Arrangers and the Administrative Agent. Such fees shall be fully earned when paid and shall be nonrefundable for any reason whatsoever. 
  

 31 

 (d) Lenders’ Upfront Fee. On the Closing Date, the Borrower shall pay to the Administrative
Agent, for the account of the Lenders in accordance with their respective Pro Rata Shares, an upfront fee in the agreed amount in accordance with the Agent/Arranger Fee Letter. Such upfront fees are for the credit facilities by the Lenders under
this Agreement and are fully earned on the date paid. The upfront fee paid to each Lender is solely for its own account and is nonrefundable for any reason whatsoever. 
  
 2.09 Computation of Interest and Fees. Computation of interest on Base Rate Loans shall be calculated on the basis of
a year of 365 or 366 days, as the case may be, and the actual number of days elapsed. Computation of all other types of interest and all fees shall be calculated on the basis of a year of 360 days and the actual number of days elapsed, which results
in a higher yield to the payee thereof than a method based on a year of 365 or 366 days. Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan
or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall bear interest for one day. 
  
 2.10 Evidence of Debt. (a) The Loans made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the
Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lenders to the Borrower and the
interest and payments thereon. Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Loans or the L/C Obligations. In the
event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of such Lender shall control. Upon the request of any
Lender made through the Administrative Agent, such Lender’s Loans may be evidenced by one or more Notes. Each Lender may attach schedules to its Note(s) and endorse thereon the date, Type (if applicable), amount and maturity of the applicable
Loans and payments with respect thereto. 
  
 (b) In addition to
the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of
participations in Letters of Credit. In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the
Administrative Agent shall control. 
  
 2.11 Payments
Generally. (a) All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall
be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 12:00 noon, New York time, on the
date specified herein. The Administrative Agent will promptly distribute to each Lender its Pro Rata Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending
Office. All payments received by the Administrative Agent after 12:00 noon, New York time, shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. 
  
 (b) Subject to the definition of “Interest Period,”
if any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.

  

 32 

 (c) If no Default or Event of Default exists and if no order of application is otherwise specified in the
Loan Documents, payments and prepayments of the Obligations shall be applied first to fees, second to accrued interest then due and payable on the Outstanding Amount of Loans and L/C Obligations, and then to the remaining Obligations in the order
and manner as Borrower may direct. 
  
 (d) If at any time
insufficient funds are received by and available to the Administrative Agent to pay fully the Obligations, or if a Default or Event of Default exists, any payment or prepayment shall be applied in the following order: (i) to the payment of
enforcement expenses incurred by the Administrative Agent, including Attorney Costs; (ii) to the ratable payment of all other fees, expenses, and indemnities for which the Administrative Agent or Lenders have not been paid or reimbursed in
accordance with the Loan Documents (as used in this Section 2.11(d)(ii), a “ratable payment” for any Lender or the Administrative Agent shall be, on any date of determination, that proportion which the portion of the
total fees, expenses, and indemnities owed to such Lender or the Administrative Agent bears to the total aggregate fees and indemnities owed to all Lenders and the Administrative Agent on such date of determination); (iii) to the ratable payment of
accrued and unpaid interest on the Outstanding Amount of Loans and L/C Borrowings (as used in this Section 2.11(d)(iv), “ratable payment” means, for any Lender, on any date of determination, that proportion which the
accrued and unpaid interest on the Outstanding Amount of Loans and L/C Borrowings owed to such Lender bears to the total accrued and unpaid interest on the Outstanding Amount of Loans and L/C Borrowings owed to all Lenders); (iv) to the ratable
payment of the Outstanding Amount of Loans and L/C Borrowings (as used in this Section 2.11(d)(v), “ratable payment” means for any Lender, on any date of determination, that proportion which the Outstanding Amount of
Loans and L/C Borrowings owed to such Lender bears to the Outstanding Amount of Loans and L/C Borrowings owed to all Lenders); (v) to Cash Collateralize Letters of Credit; and (vi) to the payment of the remaining Obligations, if any, in the order
and manner Required Lenders deem appropriate. 
  
 (e) Unless the
Borrower or any Lender has notified the Administrative Agent prior to the date any payment is required to be made by it to the Administrative Agent hereunder (or, in the case of a Lender’s notice associated with a Base Rate Loan, prior to 1:00
p.m., New York time, on the date of the funding of such Loan) that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume that the Borrower or such Lender, as the case may be, has timely made
such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person entitled thereto. If and to the extent that such payment was not in fact made to the Administrative Agent in immediately
available funds, then: 
  
 (i) if the Borrower
failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made available to such Lender in immediately available funds, together with interest thereon in respect
of each day from and including the date such amount was made available by the Administrative Agent to such Lender to the date such amount is repaid to the Administrative Agent in immediately available funds, at the Federal Funds Rate from time to
time in effect; and 
  
 (ii) if any Lender failed
to make such payment, such Lender shall forthwith on demand pay to the Administrative Agent the amount thereof in immediately available funds, together with interest thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by the Administrative Agent (the “Compensation Period”) at a rate per annum equal to the Federal Funds Rate from time to time in effect. If such Lender
pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan, included in the applicable Borrowing. If such Lender does not pay such amount forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent may make a demand therefor upon the Borrower, and the Borrower 

  

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shall pay such amount to the Administrative Agent, together with interest thereon for the Compensation Period at a rate per annum equal to the rate of
interest applicable to the applicable Borrowing. Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Administrative Agent or the Borrower may have against any Lender
as a result of any default by such Lender hereunder. 
  
 A notice
of the Administrative Agent to any Lender with respect to any amount owing under this subsection (e) shall be conclusive, absent manifest error. 
  

(f) If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of
this Article II, and the conditions to the applicable Borrowing set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest. 
  
 (g) The obligations of the Lenders hereunder to make Loans and to fund participations in Letters of Credit are several and not joint. The failure of any Lender to make any Loan on any date required hereunder shall not relieve any other
Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan or purchase its participation. 
  
 (h) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner. 
  
 2.12 Sharing of Payments. If, other than as expressly provided elsewhere herein, any Lender shall obtain on account of the Loans made by it, or the
participations in L/C Obligations, any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately
(a) notify the Administrative Agent of such fact, and (b) purchase from the other Lenders such participations in the Loans made by them, and/or such subparticipations in the participations in L/C Obligations held by them, as shall be necessary to
cause such purchasing Lender to share the excess payment in respect of such Loan or such participations, as the case may be, pro rata with each of them; provided, however, that if all or any portion of such excess payment is thereafter
recovered from the purchasing Lender, such purchase shall to that extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender’s ratable
share (according to the proportion of (i) the amount of such paying Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from another Lender may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off, but
subject to Section 10.09) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under this Section and will in each case notify the Lenders following any such purchases or repayments. Each Lender that purchases a participation pursuant to this Section
shall from and after such purchase have the right to give all notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing
Lender were the original owner of the Obligations purchased. 
  

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 2.13 Increase in Aggregate Committed Sum. 
  
 (a) Provided there exists no Default or Event of Default, the Borrower may
from time to time provide notice to the Administrative Agent (who shall promptly notify the Lenders) that (i) one or more Lenders has or have agreed to increase its (or their) Committed Sum under the Credit Agreement, or (ii) one or more Eligible
Assignees (other than a Lender) has or have agreed to become Lender(s) pursuant a joinder agreement in form and substance satisfactory to the Administrative Agent; provided, that (i) the Borrower shall be required to obtain the prior
written consent of each L/C Issuer to the addition of any new Lender and to the increase in the Committed Sum of any existing Lender, (ii) the minimum Committed Sum of any new Lender shall be $5,000,000, and (iii) the Aggregate Committed Sum may at
no time exceed $400,000,000. No Lender is obligated to increase its Committed Sum at any time pursuant to this Section 2.13. 
  
 (b) If the Aggregate Committed Sum is increased in accordance with this Section 2.13, the Administrative Agent and the Borrower shall
determine the effective date (the “Increase Effective Date”) of such increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of such increase and the Increase Effective Date. As a condition
precedent to such increase, the Borrower shall deliver to the Administrative Agent a certificate of the Borrower and of each Guarantor dated as of the Increase Effective Date signed by a Responsible Officer of each such Loan Party (i) certifying and
attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained
in Article V of the Credit Agreement and the other Loan Documents are true and correct on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that for purposes of this Section 2.13, the representations and warranties contained in Sections 5.05(a) and (b) shall be deemed to
refer to the most recent financial statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, and (B) no Default or Event of Default exists. The Borrower shall prepay any Loans
outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Loans ratable with any revised Pro Rata Shares arising from any nonratable
increase in the Aggregate Committed Sum under this Section 2.13. 
  
 (c) This Section 2.13 shall supersede any provisions in Sections 2.12 or 10.01 to the contrary. 
  
 ARTICLE III. 
 TAXES, YIELD PROTECTION AND ILLEGALITY 
  
 3.01
Taxes. 
  
 (a) Any and all payments by the Borrower to or for
the account of the Administrative Agent or any Lender under any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or
similar charges, and all liabilities with respect thereto, excluding, in the case of the Administrative Agent and each Lender, taxes imposed on or measured by its net income, and franchise taxes imposed on it (in lieu of net income taxes), by
the jurisdiction (or any political subdivision thereof) under the Laws of which the Administrative Agent or such Lender, as the case may be, is organized or maintains its Lending Office (all such non-excluded taxes, duties, levies, imposts,
deductions, assessments, fees, withholdings or similar charges, and liabilities being hereinafter referred to as “Taxes”). If the Borrower shall be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Administrative Agent or any Lender, (i) the sum payable shall be increased as necessary 

  

 35 

 
so that after making all required deductions (including deductions applicable to additional sums payable under this Section), each of the Administrative
Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions, (iii) the Borrower shall pay the full amount deducted to the relevant taxation authority
or other authority in accordance with applicable Laws, and (iv) within 30 days after the date of such payment, the Borrower shall furnish to the Administrative Agent (which shall forward the same to such Lender) the original or a certified copy of a
receipt evidencing payment thereof. 
  
 (b) In addition, the
Borrower agrees to pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as “Other Taxes”). 
  

(c) If the Borrower shall be required to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the Administrative Agent (for the account of such Lender) or to such Lender, at the time interest is paid, such additional amount that such Lender specifies as necessary to preserve
the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net income) such Lender would have received if such Taxes or Other Taxes had not been imposed. 
  
 (d) The Borrower agrees to indemnify the Administrative Agent and each Lender for (i) the full amount of Taxes and Other
Taxes (including any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such Lender, (ii) amounts payable under Section 3.01(c) and (iii) any
liability (including penalties, interest and expenses) arising therefrom or with respect thereto. Payment under this subsection (d) shall be made within 30 days after the date the Lender or the Administrative Agent makes a demand therefor.

  
 3.02 Illegality. If any Lender determines that any Law
has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or materially restricts the authority of such Lender to
purchase or sell, or to take deposits of, Dollars in the applicable offshore Dollar market, or to determine or charge interest rates based upon the Eurodollar Rate, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to
Base Rate Loans, either on the last day of the Interest Period thereof, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar
Rate Loans. Upon any such prepayment or conversion, the Borrower shall also pay interest on the amount so prepaid or converted. Each Lender agrees to designate a different Lending Office if such designation will avoid the need for such notice and
will not, in the reasonable judgment of such Lender, otherwise be materially disadvantageous to such Lender. 
  
 3.03 Inability to Determine Rates. If the Administrative Agent determines in connection with any request for a Eurodollar Rate Loan or a conversion
to or continuation thereof that (a) Dollar deposits are not being offered to banks in the applicable offshore Dollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, or adequate and reasonable means do not exist for
determining the Eurodollar Rate for such Eurodollar Rate Loan, or (b) if the Required Lenders determine 

  

 36 

 
and notify the Administrative Agent that the Eurodollar Rate for such Eurodollar Rate Loan does not adequately and fairly reflect the cost to the Lenders of
funding such Eurodollar Rate Loan, then the Administrative Agent will promptly notify the Borrower and all Lenders. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent
revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing, conversion or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a request for a
Borrowing of Base Rate Loans in the amount specified therein. 
  
 3.04 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans. 
  
 (a) If any Lender determines that as a result of a Change in Law, or such Lender’s compliance therewith, there shall be any increase in the cost to
such Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or participating in Letters of Credit, or a reduction in the amount received or receivable by such Lender in connection with any
of the foregoing (excluding for purposes of this subsection (a) any such increased costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01 shall govern), (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or any foreign jurisdiction or any political subdivision of either thereof under the Laws of which such Lender is organized or has its Lending Office, and (iii) reserve
requirements contemplated by Section 3.04(c) utilized, as to Eurodollar Rate Loans, in the determination of the Eurodollar Rate), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or reduction. No Lender shall have the right to recover such additional amounts for any period more than 90 days prior to
the date such Lender notified the Borrower thereof. 
  
 (b) If any
Lender determines a Change In Law has the effect of reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender’s obligations hereunder (taking into consideration its
policies with respect to capital adequacy and such Lender’s desired return on capital), then from time to time upon demand of such Lender (with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such
additional amounts as will compensate such Lender for such reduction. No Lender shall have the right to recover such additional amounts for any period more than 90 days prior to the date such Lender notified the Borrower thereof. 
  
 (c) The Borrower shall pay to each Lender, as long as such Lender shall be
required under regulations of the Board to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional costs on
the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive), which shall be due and
payable on each date on which interest is payable on such Loan, provided the Borrower shall have received at least 15 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender. If a Lender
fails to give notice 15 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 15 days from receipt of such notice. 
  

3.05 Funding Losses. Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the Borrower shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of: 
  
 (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period
for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or 
  

 37 

 (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to
prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower. 
  
 For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have
funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the applicable offshore Dollar interbank market for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded. 
  
 3.06 Matters
Applicable to all Requests for Compensation. A certificate of the Administrative Agent or any Lender claiming compensation under this Article III and setting forth the additional amount or amounts to be paid to it hereunder shall
be conclusive in the absence of manifest error. In determining such amount, the Administrative Agent or such Lender may use any reasonable averaging and attribution methods. 
  
 3.07 Survival. All of the Borrower’s obligations under this Article III shall survive termination
of the Commitments and payment in full of all the other Obligations. 
  
 ARTICLE IV. 
 CONDITIONS PRECEDENT TO BORROWINGS 
  
 4.01 Conditions to Credit Extension. The obligation of each Lender to make its initial Credit Extension hereunder is
subject to satisfaction of the following conditions precedent: 
  
 (a) The Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) and unless otherwise specified, each properly executed by an authorized officer of the signing
Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance reasonably satisfactory to the Administrative Agent: 
  
 (i) executed counterparts of this Agreement, the Guaranty
executed by the Subsidiaries of Borrower, and the Guaranty executed by the MLP, each dated as of the Closing Date; 
  
 (ii) Notes executed by the Borrower in favor of each Lender requesting such Notes, each in a principal amount equal to such Lender’s
Committed Sum, each dated as of the Closing Date; 
  
 (iii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of officers of each Loan Party as the Administrative Agent may require to establish the identities of and verify the authority and
capacity of each officer thereof authorized to act in connection with this Agreement and the other Loan Documents to which such Loan Party is a party; 
  

 38 

 (iv) such evidence as the Administrative Agent may reasonably require to verify that each
Loan Party and the General Partner is duly organized or formed, validly existing, in good standing in the jurisdiction of its organization; 
  
 (v) a certificate signed by an a Responsible Officer of the Borrower certifying (A) that the representations and warranties contained in
Article V are true and correct in all respects on and as of such date, (B) no Default or Event of Default has occurred and is continuing as of such date, (C) since December 31, 2003 there has occurred no material adverse change in the
business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries taken as a whole, or of any Borrower Affiliate, (D) there is no litigation, investigation or
proceeding known to and affecting the Borrower or any Borrower Affiliate for which the Borrower is required to give notice pursuant to Section 6.03(c) (or, if there is any such litigation, investigation or proceeding, then a notice
containing the information required by Section 6.03(c) shall be given concurrently with the delivery of the certificate given pursuant to this clause (v)), and (E) no action, suit, investigation or proceeding is pending
or threatened in any court or before any arbitrator or governmental authority by or against the Borrower or any Borrower Affiliate, or any of their respective properties, that (x) could reasonably be expected to materially and adversely affect the
Borrower, any Borrower Affiliate, or any Guarantor, or (y) seeks to affect any transaction contemplated hereby or the ability of the Borrower or any Guarantor to perform its obligations under the Loan Documents, and (F) the current Debt Ratings;

  
 (vi) a certificate of a Responsible Officer
listing the Material Agreements then in effect; 
  
 (vii) receipt of audited financial statements of the MLP as of December 31, 2003, unaudited financial statements of the MLP as of September 30, 2004, and such other financial information as the Administrative Agent may reasonably request;

  
 (viii) opinions from (i) Ballard Spahr
Andrews & Ingersoll, LLP, counsel to each Loan Party and the General Partner, substantially in the form of Exhibit F-1 hereto, and (ii) Bruce Davis, Esq., counsel to each Loan Party and the General Partner, substantially in the
form of Exhibit F-2 hereto, and (iii) Vinson & Elkins LLP, special Texas counsel to the Borrower, substantially in the form of Exhibit F-3 hereto; 
  
 (ix) a letter from CT Corporation System, Inc., to accept service of process in the State of New York on
behalf of the Borrower and each Guarantor; 
  
 (x) evidence of termination of the Existing Credit Facility and repayment of all loans thereunder; and 
  
 (xi) such other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer, or the Required
Lenders reasonably may require. 
  
 (b) Any fees due and payable
at the Closing Date shall have been paid. 
  
 (c) The Borrower
shall have paid Attorney Costs of the Administrative Agent to the extent invoiced prior to, or on, the Closing Date. 
  
 (d) The Debt Rating of the Borrower shall be an Investment Grade Rating or better. 
  

 39 

 The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and such notice
shall be conclusive and binding. 
  
 4.02 Conditions to all
Loans and L/C Credit Extensions. The obligation of each Lender to honor any Borrowing Notice (other than a Borrowing Notice requesting only a conversion of Loans to the other Type, or a continuation of Loans as the same Type) and the obligation
of the L/C Issuer to issue any Letter of Credit is subject to the following conditions precedent: 
  
 (a) The representations and warranties of the Loan Parties contained in Article V (other than Section 5.05(c)), or which are
contained in any document furnished at any time under or in connection herewith, shall be true and correct on and as of the date of such Request for Credit Extension, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and
(b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01. 
  
 (b) No Default or Event of Default shall exist or would result from such
proposed Request for Credit Extension. 
  
 (c) The Administrative
Agent, and, if applicable, the L/C Issuer, shall have received a Request for Credit Extension and, if applicable, a Letter of Credit Application in accordance with the requirements hereof. 
  
 (d) The Administrative Agent shall have received, in form and substance
reasonably satisfactory to it, such other assurances, certificates, documents or consents related to the foregoing as the Administrative Agent or the Required Lenders reasonably may require. 
  
 Each Request for Credit Extension (other than a Borrowing Notice requesting
only a conversion of Loans to the other Type or a continuation of Loans as the same Type) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and
(b) have been satisfied on and as of the date of the applicable Credit Extension. 
  
 ARTICLE V. 
 REPRESENTATIONS AND WARRANTIES 
  
 Each of the Borrower and the MLP, and each Guarantor by its execution of a
Guaranty, represents and warrants to the Administrative Agent and the Lenders that: 
  
 5.01 Existence; Qualification and Power; Compliance with Laws. As of the Closing Date, the General Partner shall be the sole general partner of the Borrower. All of the limited partner interests in the
Borrower, which shall constitute 99.99% of the partner interests of the Borrower, are owned by the MLP. The General Partner and each Loan Party (a) is a corporation, partnership or limited liability company duly organized or formed, validly existing
and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all governmental licenses, authorizations, consents and approvals to own its assets, carry on its business
and to execute, deliver, and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws, except in each case referred to in clause (c) or this clause (d), to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect. 
  

 40 

 5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan Party
of each Loan Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of any Lien under, any Contractual Obligation to which such Person is a party or any order, injunction, writ or decree of any Governmental Authority to which such Person or
its property is subject; or (c) violate any Law. 
  
 5.03
Governmental Authorization. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by any
Loan Party of this Agreement or any other Loan Document. 
  
 5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms except to the extent that such enforceability may be
limited by any applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally from time to time in effect and may be subject to the discretion of courts with respect to the granting of
equitable remedies. 
  
 5.05 Financial Statements; No Material
Adverse Effect. 
  
 (a) The Audited Financial Statements were
prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. The Audited Financial Statements (i) fairly present the financial condition of the MLP and its Subsidiaries as
of the date thereof and their results of operations for the period covered thereby in accordance in all material respects with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (ii)
show all material indebtedness and other liabilities, direct or contingent, of the MLP and its Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and Indebtedness in accordance with GAAP consistently applied
throughout the period covered thereby. 
  
 (b) The unaudited
consolidated financial statements of the MLP and its Subsidiaries dated September 30, 2004 (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, (ii) fairly
present the financial condition of the MLP and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance in all material respects with GAAP consistently applied throughout the period covered
thereby, and (iii) show all material indebtedness and other liabilities, direct or contingent, of the MLP and its Subsidiaries as of the date thereof, including liabilities for taxes, material commitments and Indebtedness in accordance with GAAP
consistently applied throughout the period covered thereby. 
  
 (c) Since December 31, 2003, there has been no event or circumstance that has or could reasonably be expected to have a Material Adverse Effect. 
  
 5.06 Litigation. There are no actions, suits, proceedings, investigations, claims or disputes pending or, to the knowledge of the MLP or the
Borrower threatened or contemplated in writing, at law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any of their respective Subsidiaries or against any of their properties or revenues which (a)
seek to affect or pertain to this Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) if determined adversely, could reasonably be expected to have a Material Adverse Effect. 
  

 41 

 5.07 Ownership of Property; Liens. Each Loan Party and its Subsidiaries have good title to, or
valid leasehold interests in, all its real and personal property necessary or used in the ordinary conduct of its business, except for such defects in title as would not, individually or in the aggregate, have a Material Adverse Effect, and the
property of the Borrower and its Subsidiaries is subject to no Liens, other than Permitted Liens. 
  
 5.08 Environmental Compliance. The MLP and the Borrower have reasonably concluded that (a) there are no claims alleging potential liability under
or responsibility for violation of any Environmental Law except any such claims that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (b) there is no environmental condition or circumstance, such
as the presence or Release of any Hazardous Substance, on any property owned, operated or used by any Loan Party or any of their Subsidiaries that could reasonably be expected to have a Material Adverse Effect, and (c) there is no violation of or by
any Loan Party or any Subsidiary of a Loan Party of any Environmental Law, except for such violations as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
  
 5.09 Insurance. The Companies maintain insurance providing Customary
Coverage provided by Independent Insurers, or the Companies and their properties are covered by coverage provided by Independent Insurers to Sunoco and its Affiliates, and Sunoco provides such contractual coverage to the Companies with respect to
paying or otherwise satisfying deductible requirements such that the Required Lenders are satisfied that the effect of such arrangement is to provide the Companies with the equivalent of Customary Coverage. 
  
 5.10 Taxes. The MLP, the Borrower and their respective Subsidiaries
have filed all federal, state and other material tax returns and reports required to be filed, and have paid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP. There is no proposed tax assessment
against any Loan Party or any of their respective Subsidiaries that would, if made, have a Material Adverse Effect. 
  
 5.11 ERISA Compliance. The representations and warranties set forth in this Section 5.11 shall apply only if the Borrower or an ERISA
Affiliate establishes a Plan. 
  
 (a) Each Plan is in compliance
in all material respects with the applicable provisions of ERISA, the Code and other federal or state Laws except to the extent that noncompliance could not reasonably be expected to have a Material Adverse Effect. Each Plan that is intended to
qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the MLP and the
Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification, except to the extent that nonqualification could not reasonably be expected to have a Material Adverse Effect. The Borrower and each ERISA Affiliate have
made all required contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any
Plan, except to the extent that nonpayment could not reasonably be expected to have a Material Adverse Effect. 
  
 (b) There are no pending or, to the best knowledge of the MLP or the Borrower, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could 

  

 42 

 
reasonably be expected to have a Material Adverse Effect. Neither the MLP nor the Borrower nor any ERISA Affiliate has engaged in or knowingly permitted to
occur and, to the Borrower’s and the MLP’s knowledge, no other party has engaged in or permitted to occur any prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect. 
  
 (c) (i) No ERISA Event has occurred or is reasonably expected to occur that could reasonably be expected to have a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability that (when aggregated with any other
Unfunded Pension Liability) has resulted or could reasonably be expected to result in a Material Adverse Effect; and (iii) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or
4212(c) of ERISA that could reasonably be expected to have a Material Adverse Effect. 
  
 5.12 Subsidiaries and other Investments. As of the Closing Date the Borrower has no Subsidiaries other than those specifically disclosed in part (a) of Schedule 5.12, has no equity investment in
any other corporation or other entity other than those specifically disclosed in part (b) of Schedule 5.12, and such investments described in part (b) of Schedule 5.12 are in compliance with Section 7.02(c).
From and after the Closing Date the MLP will have no Subsidiaries other than the General Partner, the Borrower, and the Borrower’s Subsidiaries. 
  
 5.13 Margin Regulations; Investment Company Act; Public Utility Holding Company Act; Use of Proceeds. 
  
 (a) No Loan Party is engaged and no Loan Party will engage, principally or
as one of their important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board), or extending credit for the purpose of purchasing or carrying margin stock. Margin Stock
constitutes less than 25% of those assets of each Loan Party which are subject to any limitation on a sale, pledge, or other restrictions hereunder. 
  
 (b) No Loan Party, no Person controlling any Loan Party, or any Subsidiary of any Loan Party (i) is a “holding company,” or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,” within
the meaning of the Public Utility Holding Company Act of 1935, or (ii) is or is required to be registered as an “investment company” under the Investment Company Act of 1940. 
  
 (c) The Borrower will use all proceeds of Credit Extensions in the manner
set forth in Section 6.12. 
  
 5.14 Disclosure.
No statement, information, report, representation, or warranty made by any Loan Party in any Loan Document or furnished to the Administrative Agent or any Lender by or on behalf of any Loan Party in connection with any Loan Document contains any
untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 5.15 Labor Matters. To the Borrower’s and the MLP’s
knowledge, there are no actual or threatened strikes, labor disputes, slowdowns, walkouts, or other concerted interruptions of operations by the Servicing Employees that could reasonably be expected to have a Material Adverse Effect. As used in this
Section, “Servicing Employees” means employees of the General Partner or other Affiliate of Sunoco who perform services in connection with Borrower’s and its Subsidiaries’ business. 
  

 43 

 5.16 Compliance with Laws. No Loan Party or any of its Subsidiaries are in violation of any Laws,
other than such violations which could not, individually or collectively, reasonably be expected to have a Material Adverse Effect. No Loan Party or any of its Subsidiaries has received notice alleging any noncompliance with any Laws,
except for such noncompliance which no longer exists, or which non-compliance could not reasonably be expected to have a Material Adverse Effect. 
  
 5.17 Third Party Approvals. No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any party that is not
a party to this Agreement is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document except where obtained or where the failure to
receive such approval, consent, exemption, authorization, or the failure to do such other action by, or provide such notice could not reasonably be expected to have a Material Adverse Effect. 
  
 5.18 Solvency. Neither the Borrower and its Subsidiaries on a
consolidated basis nor the MLP and its Subsidiaries on a consolidated basis are “insolvent” as such term is used and defined in (i) the United States Bankruptcy Code or (ii) the New York Fraudulent Conveyance Act, N.Y. Debt. &
Cred. Law §§ 270-281. 
  
 ARTICLE VI. 

AFFIRMATIVE COVENANTS 
  
 So long as any Lender shall have any Commitment hereunder, or any Loan or other Obligation shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, each of the Borrower and the MLP shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.12) cause each of their
Subsidiaries to: 
  
 6.01 Financial Statements. Deliver to
the Administrative Agent and each Lender, in form and detail reasonably satisfactory to the Administrative Agent and the Required Lenders: 
  
 (a) as soon as available, but in any event within 90 days after the end of each fiscal year of the MLP, consolidated balance sheets of the MLP and its
Subsidiaries as at the end of such fiscal year, and the related statements of income and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, audited and
accompanied by a report and opinion of Ernst & Young LLP or other independent certified public accountant of nationally recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall be prepared in accordance
with GAAP and shall not be subject to any qualifications or exceptions as to the scope of the audit nor to any qualifications and exceptions not reasonably acceptable to the Required Lenders; and 
  
 (b) as soon as available, but in any event within 45 days after the end of
each of the first three fiscal quarters of each fiscal year of the MLP, a consolidated balance sheet of the MLP and its Subsidiaries as at the end of such fiscal quarter, and the related statements of income and cash flows for such fiscal quarter
and for the portion of the MLP’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all
in reasonable detail and certified by a Responsible Officer of the MLP as fairly presenting the financial condition, results of operations and cash flows of the MLP and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit
adjustments and the absence of footnotes; 
  
 provided that, if any
financial statement referred to in Section 6.01(a) or (b) is readily available on-line through EDGAR, in lieu of furnishing copies of such financial statement, the Borrower may notify the Administrative Agent of the
availability of such financial statements on EDGAR, and the Administrative Agent shall make such notice available to the Lenders. 
  

 44 

 6.02 Certificates; Other Information. Deliver to the Administrative Agent and each Lender, in form
and detail satisfactory to the Administrative Agent and the Required Lenders: 
  
 (a) concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b) (or, if the Borrower’s obligation to deliver such financial statements is
fulfilled by making them available on-line through EDGAR, then at the time or promptly after the time that such financial statements are made available on-line through EDGAR, but in any event not later than the 90-day and 45-day time periods set
forth in Sections 6.01(a) and (b)), a duly completed Compliance Certificate in form of Exhibit C signed by a Responsible Officer of the Borrower and a Responsible Officer of the MLP; 
  
 (b) promptly after the same are available, copies of each annual report,
proxy or financial statement or other report or written communication sent to the equity owners of the MLP, and copies of all annual, regular, periodic and special reports and registration statements which the MLP may file or be required to file
with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 
  
 (c) promptly after execution thereof, copies of Material Agreements and any
material amendment thereto; provided that if any such agreement or amendment is available on-line through EDGAR, the Borrower shall not be obligated to furnish copies thereof; and 
  
 (d) promptly, such additional information regarding the business, financial or corporate affairs of any Loan Party as the
Administrative Agent, at the request of any Lender, may from time to time reasonably request. 
  
 6.03 Notices. Promptly notify the Administrative Agent and each Lender: 
  
 (a) of the occurrence of any Default or Event of Default, as soon as possible but in any event within ten days after the occurrence thereof; 

 
 (b) of any matter that has resulted or could reasonably be expected to
result in a Material Adverse Effect, including any of the following events if such has resulted or could reasonably be expected to result in a Material Adverse Effect: (i) breach or non-performance of, or any default under, a Contractual Obligation
of any Loan Party; (ii) any litigation, investigation by or required by a Governmental Authority or proceeding between any Loan Party and any Governmental Authority; or (iii) any litigation, investigation or proceeding involving any Loan Party
related to any Environmental Law; 
  
 (c) of any litigation,
investigation or proceeding known to and affecting the Borrower or any Borrower Affiliate in which (i) the amount involved exceeds (individually or collectively) $15,000,000, or (ii) injunctive relief or similar relief is sought, which could be
reasonably expected to have a Material Adverse Effect; and 
  
 (d)
of any announcement by Moody’s or S&P of any change or possible change in a Debt Rating of the Borrower. 
  

 45 

 In addition, the Borrower and the MLP shall exercise reasonable efforts to promptly notify the
Administrative Agent of any material change in accounting policies or financial reporting practices by the Borrower or the MLP. 
  
 Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement or other
Loan Document that have been breached. 
  
 6.04 Payment of
Obligations. Pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets and (b) all
lawful claims which, if unpaid, would by law become a Lien upon its property, except, in the case of clause (a) or (b), where (x) the validity thereof is being contested in good faith by appropriate proceedings, (y)
adequate reserves in accordance with GAAP are being maintained by the appropriate Loan Party, and (z) the failure to make such payment pending such contest could not reasonably be expected to result in a Material Adverse Effect. 
  
 6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain
in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization, except in a transaction permitted by Sections 7.05 and 7.06, and (b) take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises material to the conduct of its business, except in a transaction permitted by Sections 7.05 and 7.06. 
  
 6.06 Maintenance of Assets and Business. (a) Maintain all material
licenses, permits, and franchises necessary for the normal business; (b) keep all of its assets which are useful in and necessary to its business in good working order and condition (ordinary wear and tear excepted) and make all necessary repairs
thereto and replacements thereof; and (c) do all things necessary to obtain, renew, extend, and continue in effect all Authorizations which may at any time and from time to time be necessary for the Borrower and its Subsidiaries to operate their
businesses in compliance with applicable Law; except where the failure to so maintain, renew, extend, or continue in effect could not reasonably be expected to have a Material Adverse Effect. 
  
 6.07 Maintenance of Insurance. Maintain insurance with respect to its
properties and business as described in Section 5.09. 
  
 6.08 Compliance with Laws. Comply in all material respects with the requirements of all Laws (including Environmental Laws) applicable to it or to its business or property, except in such instances in which (i) such requirement of
Law is being contested in good faith or a bona fide dispute exists with respect thereto; or (ii) the failure to comply therewith could not be reasonably expected to have a Material Adverse Effect. 
  
 6.09 Books and Records. Maintain proper books of record and account,
in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving its assets and business; and (b) maintain such books of record and account in material conformity
with all applicable requirements of any Governmental Authority having regulatory jurisdiction over it. 
  
 6.10 Inspection Rights. Permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of
its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, 

  

 46 

 
finances and accounts with its directors, officers, and independent public accountants, at such reasonable times during normal business hours and as often as
may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent
contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice. 
  
 6.11 Compliance with ERISA. With respect to each Plan maintained by a Company, do each of the following: (a) maintain each Plan in compliance in
all material respects with the applicable provisions of ERISA, the Code and other federal or state Laws, (b) cause each Plan which is qualified under Section 401(a) of the Code to maintain such qualification, and (c) make all required
contributions to any Plan subject to Section 412 of the Code, except to the extent that noncompliance, with respect to each event listed above, could not be reasonably expected to have a Material Adverse Effect. 
  
 6.12 Use of Proceeds. Use the proceeds of the Credit Extensions only
(a) to refinance loans under the Existing Credit Agreement, (b) for working capital requirements of the Borrower and its Subsidiaries, (c) to finance Permitted Acquisitions by the Borrower and its Subsidiaries of Persons or assets and to finance
Investments in Permitted Joint Ventures subject in each case to compliance with this Agreement, including Sections 7.02 and 7.09, (d) to fund Quarterly Distributions to the extent permitted by Section 7.07,
Section 6.15, and Section 2.01(b), and (e) for other general company purposes. 
  
 6.13 Guaranties; JV Holding Subsidiaries. (a) As an inducement to the Administrative Agent and Lenders to enter into this Agreement, cause each
Subsidiary (other than a Canadian Subsidiary) and the MLP to execute and deliver to Administrative Agent a Guaranty executed by the Borrower’s Subsidiaries (other than Canadian Subsidiaries) and a Guaranty executed by the MLP, each
substantially in the form and upon the terms of Exhibit E-1 and Exhibit E-2, respectively, providing for the guaranty of payment and performance of the Obligations. In addition, promptly after the formation or acquisition
of any new entity that is (or becomes) a Subsidiary (other than a Canadian Subsidiary), cause such new entity to execute and deliver to Administrative Agent a Guaranty substantially in the form and upon the terms of Exhibit E-1,
providing for the guaranty of payment and performance of the Obligations, together with certified copies of such Subsidiary’s Organization Documents and opinions of counsel with respect to such Subsidiary and such Guaranty, in substantially the
forms of Exhibit F-1, F-2 and F-3 hereto. 
  
 (b) Notwithstanding the terms of Section 6.13(a), the JV Holding Subsidiaries shall not be required to execute a Guaranty until the day that is 180 days after the Closing Date, provided however
that if an Event of Default occurs prior to such date then each JV Holding Subsidiary shall be required to execute and deliver to the Administrative Agent a Guaranty within five Business Days after the occurrence of such Event of Default.

  
 6.14 Material Agreements. Perform its obligations under
the Material Agreements except where failure to do so could not reasonably be expected to have a Material Adverse Effect; enforce the obligations of Sunoco contained in the indemnification provisions of the Omnibus Agreement, and enforce the other
obligations of the Sunoco Contract Parties under the Borrower Operating Agreements to the same extent as they would enforce similar obligations of unrelated third parties. 
  
 6.15 Clean Down Period. During each fiscal year in which Distribution Loans are made, there shall be a period of
fifteen (15) consecutive days (the “Clean Down Period”) during which (a) there are no Distribution Loans outstanding, and (b) no Distribution Loans will be made. The Clean Down Period for a fiscal year may begin on any date
that is after the first Distribution Loan is made in such fiscal year. 
  

 47 

 6.16 Maintenance of Separateness. 
  
 (a) (i) Maintain books and records separate from those of any other Person, including any Sunoco, Inc. Affiliate;

  
 (ii) maintain its assets in such a manner
that it is not more costly or difficult to segregate, identify or ascertain such assets; 
  
 (iii) observe all organizational formalities; 
  
 (b) (i) hold itself out to creditors and the public as separate and distinct from any other Person, including Sunoco, Inc. Affiliates; 
  
 (ii) conduct its business in its name or in business names
or trade names of the Companies, and use stationary, invoices and checks separate from those of Sunoco, Inc. Affiliates; 
  
 (iii) not hold itself out as being available to satisfy the obligations of any other Person, including any Sunoco, Inc. Affiliate;

  
 (c) To the extent that any Company shares the same officers or
other employees as any of its Affiliates (other than another Company), the salaries of and expenses relating to providing benefits to such officers and employees shall be fairly allocated among such entities, and each such entity shall bear its fair
share of the salary and benefit costs associated with all such common officers and employees; 
  
 (d) To the extent that any Company jointly contracts with any of its Affiliates (other than another Company) to do business with vendors or service providers or to share overhead expenses, the costs incurred in doing
so shall be allocated fairly among such entities and each such entity shall bear its fair share of such costs. To the extent that any Company contracts or does business with vendors or service providers where the goods and services are partially for
the benefit of an Affiliate (other than another Company), the costs incurred in doing so shall be fairly allocated to or among such entities for whose benefit the goods and services are provided, and each such entity shall bear its fair share of
such costs; and 
  
 (e) To the extent that any Company has
officers in the same location as any of its Affiliates (other than another Company), there shall be a fair and appropriate allocation of overhead costs among them, and each such entity shall bear its fair share of such expenses. 
  
 ARTICLE VII. 
 NEGATIVE COVENANTS 
  
 So long as any Lender shall have any Commitment hereunder, or any Loan or other Obligations shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, each of the MLP and the Borrower agree
that they shall not, nor shall they permit any of their respective Subsidiaries to, directly or indirectly: 
  
 7.01 Liens. Create, incur, assume or suffer to exist, any Lien upon any of its property, assets or revenues, whether now owned or hereafter
acquired, other than the following: 
  
 (a) Liens
pursuant to any Loan Document; 
  

 48 

 (b) Liens existing on the Closing Date and listed on Schedule 7.01 and any renewals or
extensions thereof, provided that the property covered thereby is not increased, the amount of the Indebtedness secured thereby is not increased, and any renewal or extension of the obligations secured or benefited thereby is permitted under
this Agreement; 
  
 (c) Liens for taxes not yet due or which are
being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP; 
  
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising
in the ordinary course of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the
applicable Person; 
  
 (e) pledges or deposits in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA; 
  
 (f) deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case incurred in the ordinary course of business; 
  
 (g) easements, rights-of-way, restrictions and other similar encumbrances affecting real property which do not in any case materially detract from the
value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; 
  
 (h) judgment Liens not giving rise to an Event of Default; 
  
 (i) any Lien existing on any property or asset of any Person that becomes a Subsidiary of the Borrower after the Closing Date prior to the time such
Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such Person becoming a Subsidiary, (ii) such Lien shall not apply to any other property or assets of the Borrower or any
Subsidiary, (iii) such Lien shall secure only those obligations which it secures on the date such Person becomes a Subsidiary and any renewals, extensions and modifications (but not increases) thereof, (iv) the aggregate amount of indebtedness
secured by Liens permitted by this subsection shall not at any time exceed the Incremental EBITDA of the acquired entity, and (v) the Borrower shall demonstrate pro forma compliance with this Section 7.01(i) at the closing of such
acquisition; and 
  
 (j) other Liens on assets of the Borrower or
its Subsidiaries, not to exceed at any time $20,000,000 in the aggregate. 
  
 7.02 Investments. Make or own any Investments, except: 
  
 (a) Permitted Investments; 
  
 (b)
Permitted Acquisitions by the Borrower and its Subsidiaries; and 
  
 (c) Investments in the dollar amount outstanding on the Closing Date in the JV Holding Subsidiaries and in the entities listed in Section (c) of Schedule 5.12 provided that such entities satisfy the requirements
set forth in the definition of Permitted Joint Ventures; 
  

 49 

 (d) (i) Investments in Permitted Joint Ventures by the Borrower or a Subsidiary of the Borrower made
during the 90-day period prior the issuance of equity by the MLP, in an amount equal to the net proceeds of such equity issuance, to the extent that the stated purpose of such equity issuance in the relevant prospectus is the making of such
specifically identified Investments in such amounts, provided that until such equity is issued and such net proceeds are received, such Investments shall not be permitted Investments under this clause (d(i)) (but may be
permitted under clause (f) below, subject to the terms of such clause (f)), and 
  
 (ii) Investments in Permitted Joint Ventures by the Borrower or a Subsidiary of the Borrower made during the 120-day period after the issuance of equity
by the MLP, in an amount equal to the net proceeds of such equity issuance, to the extent that the stated purpose of such equity issuance in the relevant prospectus is the making of such specifically identified Investments in such amounts,

  
 provided that in the case of clauses (d)(i) and
(ii), such issuance of equity is done after the Closing Date; 
  
 (e) Purchase by the Borrower or a Subsidiary of the Borrower of equity interests in Mid-Valley Pipeline Company, provided that such entity satisfies the requirements set forth in the definition of Permitted
Joint Venture; 
  
 (f) Investments by the Borrower or a Subsidiary
of the Borrower in Permitted Joint Ventures, provided that the aggregate outstanding amount of Investments permitted by this clause (f) shall not exceed $150,000,000 at any time, and provided further that in the event
that the purchase permitted by the preceding clause (e) is consummated and the amount of the purchase price exceeds $75,000,000 (any such excess amount being herein referred to as the “Mid-Valley Excess
Amount”), then the dollar amount of Investments permitted by this clause (f) shall be reduced by an amount equal to the Mid-Valley Excess Amount; 
  
 (g) Investments by the MLP in the Borrower and the General Partner; 
  
 (h) Investments by the Borrower and Subsidiary Guarantors in the Borrower and
in any Subsidiary Guarantor; 
  
 (i) Investments by the Borrower
and its Subsidiaries in Canadian Subsidiaries, provided that the aggregate outstanding amount of the Investments permitted by this clause (i) shall not at any time exceed $50,000,000; 
  
 (j) Trade accounts receivable which are for goods furnished or services
rendered in the ordinary course of business; and 
  
 (k) Deposits
of net cash receipts and cash disbursements pursuant to the Treasury Services Agreement; 
  
 provided that at the time of any Investment permitted by clauses (d), (e) or (f) of this Section 7.02, prior to and after giving effect to the making of such Investment
(A) no Default or Event of Default shall have occurred and be continuing, (B) all representations and warranties set forth in Article V of this Agreement (excluding Section 5.05(c)) shall be true and correct, and (C) the
Borrower shall be in pro forma compliance with this Section 7.02 and Sections 7.01, 7.04 and 7.14; and at the time of acquisition of any equity interests in any Permitted Joint Venture, Borrower shall
deliver to the Administrative Agent a certificate as to the matters in the foregoing clauses (A), (B) and (C). 
  

 50 

 7.03 Hedging Agreements. Enter into any Swap Contracts other than in the ordinary course of
business for the purpose of directly mitigating risks to which the Borrower or its Subsidiaries are exposed in the conduct of their business and not for purposes of speculation. 
  
 7.04 Indebtedness of Subsidiaries. 
  
 Permit any Subsidiary of the Borrower to create, incur or assume any Indebtedness except: 
  
 (a) Guaranty Obligations under a Guaranty executed pursuant to this
Agreement; 
  
 (b) Guaranty Obligations of Subsidiary Guarantors
in respect of Indebtedness of the Borrower to the extent such Indebtedness of the Borrower is permitted by this Agreement; 
  
 (c) Indebtedness owed to the Borrower or the MLP; 
  
 (d) Indebtedness owed to a Subsidiary Guarantor; 
  
 (e) Excluded Affiliate Debt; and 
  
 (f) additional Indebtedness of Subsidiary Guarantors provided that, (i) both before and after such Indebtedness is created, incurred or assumed, no
Default or Event of Default shall exist, and (ii) the principal amount of such Indebtedness shall not exceed at any time an amount equal to 0.5 times Consolidated EBITDA for the most recent four fiscal quarters. 
  
 7.05 Fundamental Changes. Merge, consolidate with or into, or convey,
transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default or
Event of Default exists or would result therefrom: 
  
 (a)
mergers and consolidations constituting Permitted Acquisitions are permitted, provided that in any merger or consolidation involving the Borrower, the Borrower is the surviving entity; 
  
 (b) any Subsidiary may merge with (i) the Borrower, provided that the
Borrower shall be the continuing or surviving Person, or (ii) any one or more Subsidiaries, provided that when any Wholly-Owned Subsidiary is merging with another Subsidiary, a Wholly-Owned Subsidiary shall be the continuing or surviving
Person; and 
  
 (c) any Subsidiary may sell or otherwise transfer
all or substantially all of its assets (upon voluntary liquidation, dissolution or otherwise), to the Borrower or to a Subsidiary Guarantor; provided that if the seller in such a transaction is a Wholly-Owned Subsidiary, then the purchaser
must also be a Wholly-Owned Subsidiary. 
  
 7.06 Dispositions.

  
 (a) Make any Disposition or enter into any agreement to
make any Disposition, except: 
  
 (i)
Dispositions by the Borrower or its Subsidiaries of inventory in the ordinary course of business; 
  
 (ii) Dispositions of property by any Subsidiary to the Borrower or to a Wholly-Owned Subsidiary Guarantor; 
  

 51 

 (iii) Dispositions by the General Partner to the MLP; and 
  
 (iv) if no Default or Event of Default then exists or arises
as a result thereof, other Dispositions for fair market value for cash, provided that if a prepayment is required by Section 2.04(b)(i), the Borrower shall make such prepayment in accordance with such Section. 
  
 (b) Make any Dispositions or take any other action if after such Disposition
or other action Borrower fails to own, directly or indirectly, all of the ownership interests in, and to control the management of, Sunoco Partners Marketing & Terminals and Sunoco Pipeline. 
  
 7.07 Restricted Payments; Distributions and Redemptions; Payments on
Excluded Affiliate Debt. (a) Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that: 
  
 (i) each Subsidiary may make Restricted Payments to the Borrower and to Wholly-Owned Subsidiaries of the
Borrower; 
  
 (ii) the Borrower may declare and
make Quarterly Distributions of Available Cash as defined in the Partnership Agreement (Borrower) and the Borrower may redeem or repurchase its partner interests to the extent such Quarterly Distributions, redemptions and repurchases in any fiscal
quarter do not exceed in the aggregate Available Cash as defined in the Partnership Agreement (Borrower) for the immediately preceding fiscal quarter and are made in accordance with the Partnership Agreement (Borrower); provided, that
at the time each such Quarterly Distribution, redemption or repurchase is made no Default or Event of Default exists or would result therefrom; and 
  
 (iii) the MLP may (A) declare and make Quarterly Distributions of Available Cash as defined in the Partnership Agreement (MLP) and the MLP
may redeem or repurchase its limited partnership units to the extent such Quarterly Distributions, redemptions and repurchases in any fiscal quarter do not exceed, in the aggregate Available Cash as defined in the Partnership Agreement (MLP) for the
immediately preceding fiscal quarter and are made in accordance with the Partnership Agreement (MLP), provided, that at the time each such Quarterly Distribution, redemption or repurchase is made no Default or Event of Default exists
or would result therefrom; and (B) redeem Common Units with the proceeds received from a substantially concurrent issuance of new Common Units or other Parity Units, so long as each such redemption complies with the terms of the Partnership
Agreement (MLP). As used in this paragraph, “Common Units” and “Parity Units” have the meaning given to them in the Partnership Agreement (MLP). 
  
 (b) Make or permit to be made by the Borrower or any Subsidiary of the Borrower any payments of principal or interest in
respect of Excluded Affiliate Debt (i) if a Default or Event of Default exists at the time of such payment or would occur as a result of such payment, or (ii) if such payment would otherwise be prohibited by the terms of the subordination agreement
applicable to such Excluded Affiliate Debt. 
  
 7.08 ERISA.
At any time engage in a transaction which could be subject to Section 4069 or 4212(c) of ERISA, or permit any Plan maintained by a Company to (a) engage in any non-exempt “prohibited transaction” (as defined in
Section 4975 of the Code); (b) fail to comply with ERISA or any other applicable Laws; or (c) incur any material “accumulated funding deficiency” (as defined in Section 302 of ERISA), which, with respect to each event
listed above, could be reasonably expected to have a Material Adverse Effect. 
  

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 7.09 Nature of Business; Capital Expenditures. Engage in any line of business other than Present
and Related Businesses, or make any Capital Expenditures except in connection with Present and Related Businesses. 
  
 7.10 Transactions with Affiliates. Sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any
property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the MLP, the Borrower or such Subsidiary,
as applicable, than could be obtained on an arm’s length basis from unrelated third parties, (b) transactions between or among the Borrower and its wholly owned Subsidiaries not involving any other Affiliate, and (c) any Restricted Payment
permitted by Section 7.07. 
  
 7.11 Burdensome
Agreements. Enter into any Contractual Obligation that limits the ability of any Subsidiary to make Restricted Payments to the Borrower or to otherwise transfer property to the Borrower. 
  
 7.12 Use of Proceeds. Use the proceeds of any Loan for purposes other
than those permitted by Section 6.12, or use the proceeds of any Loan, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the
Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose. 
  
 7.13 Material Agreements. Permit any amendment to any Material Agreement or the Partnership Agreement (MLP) if such amendment could reasonably be
expected to materially adversely affect the Lenders; permit any assignment of any Material Agreement if such assignment could reasonably be expected to materially adversely affect the Lenders; or permit any Unauthorized Assignment of any Borrower
Operating Agreement. 
  
 7.14 Financial Covenants.

  
 (a) Interest Coverage Ratio. Permit the Interest
Coverage Ratio as of the end of any fiscal quarter to be less than the ratio of 3.0 to 1.0. 
  
 (b) Leverage Ratio. Permit the Leverage Ratio to be greater than the ratio set forth below at any time during the applicable period set forth below: 
  
 (i) During an Acquisition Period: 5.0 to 1.0 
  
 (ii) Other than during an Acquisition Period: 4.5 to 1.0

  
 (c) Pro Forma Adjustments for Asset Acquisitions. For
purposes of determining compliance with this Section 7.14: 
  
 (i) Consolidated EBITDA shall be calculated after giving effect, on a pro forma basis for the four consecutive fiscal quarters most recently completed, to any asset acquisitions (an “Asset
Acquisition”) occurring during the period commencing on the first day of such period to and including the date of determination (herein called the “Reference Period”), as if such Asset Acquisition occurred on the
first day of the Reference Period (an Asset Acquisition includes an asset acquisition that gives rise to the need to calculate compliance hereunder as a result of a Company incurring or assuming Indebtedness in connection with such asset
acquisition); and 
  

 53 

 (ii) If, in connection with an Asset Acquisition during any Reference Period, any Indebtedness is
incurred or assumed by the MLP or any Subsidiary, then Consolidated Interest Charges shall be calculated, on a pro forma basis for the four quarters most recently completed, as if such Indebtedness had been incurred on the first day of the Reference
Period. 
  
 7.15 JV Holding Subsidiaries. 
  
 (a) Permit any JV Holding Subsidiary that is not a Subsidiary Guarantor (i)
to engage in any business other than ownership of the Permitted Joint Ventures named on Schedule 5.12, or (ii) to acquire or own any Investment in any Person other than a Permitted Joint Venture named on Schedule 5.12;

  
 (b) Incur or suffer to exist any Indebtedness owed by the
Borrower or a Subsidiary of the Borrower to a JV Holding Subsidiary that is not a Subsidiary Guarantor; or 
  
 (c) Permit any JV Holding Subsidiary that is not a Subsidiary Guarantor to incur, assume or be obligated in respect of any Indebtedness. 
  
 ARTICLE VIII. 
 EVENTS OF DEFAULT AND REMEDIES 
  
 8.01 Events of Default. Any of the following shall constitute an Event of Default: 
  
 (a) Non-Payment. The Borrower fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan or any L/C Obligation or
(ii) within three Business Days after the same becomes due, any interest on any Loan, any L/C Obligation, any commitment or other fee due hereunder, or any other amount payable hereunder or under any other Loan Document; or 
  
 (b) Specific Covenants. The Borrower fails to perform or observe any
term, covenant or agreement contained in any of Section 6.03(a), 6.05 (with respect to the Borrower’s existence), 6.12,6.13 or Article VII;  
  
 (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or agreement (not specified in
subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 calendar days after the earlier of the date notice thereof shall have been given to the
Borrower by the Administrative Agent or any Lender or the date the Borrower has knowledge of such failure; or 
  
 (d) Representations and Warranties. Any representation or warranty made or deemed made by the Borrower or any other Loan Party herein, in any other
Loan Document, or in any document delivered in connection herewith or therewith proves to have been incorrect in any material respect when made or deemed made; or 
  
 (e) Cross-Default. (i) The Borrower or any Borrower Affiliate (A) fails to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness, Guaranty Obligation or Synthetic Lease Obligation having an aggregate principal amount (or, in the case of a Synthetic Lease Obligation,
Attributable Principal) (including undrawn or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than (individually or collectively) $10,000,000, or (B) fails to observe or
perform any other agreement or condition relating to any such Indebtedness, Guaranty Obligation or Synthetic Lease Obligation or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect
of which default or other 

  

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event is to cause, or to permit the holder or holders of such Indebtedness, the lessor under such Synthetic Lease Obligation or the beneficiary or
beneficiaries of such Guaranty Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness or Synthetic Lease Obligation to be demanded or
to become due or to be repurchased or redeemed (automatically or otherwise) prior to its stated maturity, or such Guaranty Obligation to become payable or cash collateral in respect thereof to be demanded; or (ii) (A) there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap Contract) resulting from any event of default under such Swap Contract as to which the Borrower or any Borrower Affiliate is the Defaulting Party (as defined in such Swap Contract) and the
Swap Termination Value owed by the Borrower or any Borrower Affiliate as a result thereof is greater than (individually or collectively) $10,000,000, or (B) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap
Contract) resulting from any Termination Event (as so defined) under such Swap Contract as to which the Borrower or any Borrower Affiliate is an Affected Party (as so defined) and the Swap Termination Value owed by the Borrower and Borrower
Affiliate as a result thereof is greater than (individually or collectively) $10,000,000 and such amount is not paid when due under such Swap Contract; or 
  
 (f) Insolvency Proceedings, Etc. (i) The Borrower or any Borrower Affiliate institutes or consents to the institution of any proceeding under any
Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material
part of its property or takes any action to effect any of the foregoing; or (ii) any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the
appointment continues undischarged or unstayed for 60 calendar days; or (iii) any proceeding under any Debtor Relief Law relating to any such Person or to all or any part of its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or 
  
 (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Borrower Affiliate becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against property which is a material part of the property of the Borrower and its Subsidiaries taken as a
whole, and is not released, vacated or fully bonded within 45 days after its issue or levy; or 
  
 (h) Judgments. There is entered against the Borrower, any other Loan Party, any Subsidiary of a Loan Party or the General Partner (i) a final judgment or order for the payment of money in an aggregate amount
exceeding (individually or collectively) $20,000,000 (to the extent not covered by third-party insurance as to which the insurer does not dispute coverage), or (ii) any non-monetary final judgment that has a Material Adverse Effect and, in either
case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in
effect; or 
  
 (i) ERISA. (i) If the Borrower or any ERISA
Affiliate maintains any Pension Plan or any Multiemployer Plan, an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Borrower or any Subsidiary
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of $15,000,000, or (ii) if there is any Multiemployer Plan, the Borrower or any ERISA Affiliate fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $15,000,000; or 
  

 55 

 (j) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and delivery
and for any reason other than the agreement of all the Lenders or termination of all Commitments and all Letters of Credit and satisfaction in full of all the Obligations, ceases to be in full force and effect, or is declared by a court of competent
jurisdiction to be null and void, invalid or unenforceable in any material respect; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document;
or 
  
 (k) Change of Control. There occurs any Change of
Control; 
  
 (l) Dissolution. Any Loan Party shall
dissolve, liquidate, or otherwise terminate its existence, except as permitted in Section 7.05; 
  
 (m) Material Agreements. (i) Termination or Unauthorized Assignment of any Borrower Operating Agreement; (ii) termination of any other Material
Agreement if such termination could reasonably be expected to have a Material Adverse Effect; (iii) termination by Sunoco of Article II of the Omnibus Agreement pursuant to Section 8.4 (or any other Section) of the Omnibus Agreement;
(iv) default by the Borrower or any of its Subsidiaries or by any Sunoco Contract Party under any Material Agreement if such default could reasonably be expected to have a Material Adverse Effect; or 
  
 (n) Sale of Certain Assets by Sunoco. The sale by a Sunoco Contract
Party of a material portion of its Refinery Assets or other assets related to any of the Material Agreements between such Sunoco Contract Party and the Borrower or the Borrower’s Subsidiaries, unless the purchaser thereof has an Investment
Grade Rating and has fully assumed the rights and obligations of such Sunoco Contract Party under such agreements in respect of the assets sold. 
  
 8.02 Remedies Upon Event of Default. If any Event of Default occurs, the Administrative Agent shall, at the request of, or may, with the consent
of, the Required Lenders: 
  
 (a) declare the commitment of each
Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and obligations shall be terminated; 
  
 (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are hereby
expressly waived by the Borrower; 
  
 (c) declare that an amount
equal to the then Outstanding Amount of all L/C Obligations be immediately due and payable by the Borrower, without presentment, demand, protest, notice of intent to accelerate, notice of acceleration or other notice of any kind, all of which are
hereby expressly waived by the Borrower, and require that the Borrower deliver such payments to the Administrative Agent to Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and 
  
 (d) exercise on behalf of itself and the Lenders all rights and remedies
available to it and the Lenders under the Loan Documents or applicable law; 
  
 provided, however, that upon the occurrence of any event specified in subsection (f) of Section 8.01, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C
Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and an amount equal 

  

 56 

 
to the then Outstanding Amount of all L/C Obligations shall be deemed to be forthwith due and owing by the Borrower to the L/C Issuer and the Lenders as of
the date of such occurrence and the Borrower’s obligation to pay such amounts shall be absolute and unconditional, without regard to whether any beneficiary of any such Letter of Credit has attempted to draw down all or a portion of such amount
under the terms of a Letter of Credit and, to the fullest extent permitted by applicable law, shall not be subject to any defense or be affected by a right of set-off, counterclaim or recoupment which the Borrower may now or hereafter have against
any such beneficiary, the Issuing Bank, the Administrative Agent, the Lenders or any other Person for any reason whatsoever. Such payments shall be delivered to and held by the Administrative Agent as Cash Collateral securing the L/C Obligations.

  
 ARTICLE IX. 
 ADMINISTRATIVE AGENT 
  
 9.01 Appointment and Authorization of Administrative Agent. (a) Each Lender hereby irrevocably (subject to Section 9.09) appoints,
designates and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the
terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent
shall not have any duties or responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term
“agent” herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.
Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. Without limiting the generality of the foregoing, the Administrative
Agent: (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or Event of Default has occurred and is continuing; (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of
the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
  
 The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent. 
  

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 (b) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it
and the documents associated therewith until such time (and except for so long) as the Administrative Agent may agree at the request of the Required Lenders to act for the L/C Issuer with respect thereto; provided, however, that the
L/C Issuer shall have all of the benefits and immunities (i) provided to the Administrative Agent in this Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by
it or proposed to be issued by it and the application and agreements for letters of credit pertaining to the Letters of Credit as fully as if the term “Administrative Agent” as used in this Article IX included
the L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with respect to the L/C Issuer. 
  
 9.02 Delegation of Duties. The Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct. 
  
 9.03 Liability of Administrative Agent. No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible
in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other
document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document, or for any failure of any Loan Party or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender or participant to ascertain
or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party or any Affiliate thereof.

  
 9.04 Reliance by Administrative Agent. (a) The
Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Loan
Party), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or
concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required
Lenders or all the Lenders, if required hereunder, and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and participants. Where this Agreement expressly permits or prohibits an action unless
the Required Lenders otherwise determine, the Administrative Agent shall, and in all other instances, the Administrative Agent may, but shall not be required to, initiate any solicitation for the consent or a vote of the Lenders. 
  
 (b) For purposes of determining compliance with the conditions specified in
Section 4.01, each Lender that has funded its Pro Rata Share of the Borrowing(s) on the Closing Date (or, if there is no 

  

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Borrowing made on such date, each Lender other than Lenders who gave written objection to the Administrative Agent prior to such date) shall be deemed to
have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Administrative Agent to such Lender for consent, approval, acceptance or satisfaction, or required hereunder to be consented to or
approved by or acceptable or satisfactory to a Lender. 
  
 9.05
Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest and fees required to be paid
to the Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that
such notice is a “notice of default.” The Administrative Agent will notify the Lenders of its receipt of any such notice. The Administrative Agent shall take such action with respect to such Default or Event of Default as may be
directed by the Required Lenders in accordance with Article VIII; provided, however, that unless and until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated
to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable or in the best interest of the Lenders. 
  
 9.06 Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges that no
Agent-Related Person has made any representation or warranty to it, and that no act by the Administrative Agent hereinafter taken, including any consent to and acceptance of any assignment or review of the affairs of any Loan Party or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether Agent-Related Persons have disclosed material information in their possession. Each Lender represents
to the Administrative Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made
its own decision to enter into this Agreement and to extend credit to the Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to
inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the other Loan Parties. Except for notices, reports and other documents expressly required to be furnished to
the Lenders by the Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and
other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of any Agent-Related Person. 
  
 9.07 Indemnification of Administrative Agent. Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party to do so), pro rata, and hold harmless each Agent-Related Person
from and against any and all Indemnified Liabilities incurred by it; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting from such
Person’s gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes
of this Section. Without limitation of the foregoing, each Lender shall reimburse 

  

 59 

 
the Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under,
this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the Borrower. The undertaking in this Section shall
survive termination of the Commitments, the payment of all Obligations hereunder and the resignation or replacement of the Administrative Agent. 
  
 9.08 Administrative Agent in its Individual Capacity. Citibank and its Affiliates may make loans to, accept deposits from, acquire equity interests
in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with each of the Loan Parties and their respective Affiliates as though Citibank were not the Administrative Agent or the L/C Issuer hereunder
and without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Citibank or its Affiliates may receive information regarding any Loan Party or its Affiliates (including information that may be subject to
confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them. With respect to its Loans, Citibank shall have the same rights
and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not the Administrative Agent or the L/C Issuer, and the terms “Lender” and “Lenders”
include Citibank in its individual capacity. 
  
 9.09 Successor
Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders and the Borrower. If the Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among
the Lenders a successor administrative agent for the Lenders which successor administrative agent shall be consented to by the Borrower at all times other than during the existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed). If no successor administrative agent is appointed prior to the effective date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and the
Borrower, a successor administrative agent from among the Lenders. Upon the acceptance of its appointment as successor administrative agent hereunder, such successor administrative agent shall succeed to all the rights, powers and duties of the
retiring Administrative Agent and the term “Administrative Agent” shall mean such successor administrative agent and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be
terminated. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Article IX and Sections 10.03 and 10.13 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no successor administrative agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative
Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as
the Required Lenders appoint a successor agent as provided for above. 
  
 9.10 Other Agents; Lead Managers. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a “syndication agent,” as a “co-documentation agent,” any
other type of agent (other than the Administrative Agent), “lead arranger,” or “bookrunner” shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than those applicable
to all Lenders as such. Without limiting the foregoing, none of the Lenders so identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the
Lenders so identified in deciding to enter into this Agreement or in taking or not taking action hereunder. 
  

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 ARTICLE X. 
 MISCELLANEOUS 
  
 10.01
Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that no such amendment, waiver or consent shall, unless in writing and signed by each of the Lenders directly affected thereby and by the Borrower, and acknowledged by the Administrative Agent, do any of the
following: 
  
 (a) extend or increase the Commitment of any
Lender (or reinstate any Commitment terminated pursuant to Section 8.02); 
  
 (b) postpone any date fixed by this Agreement or any other Loan Document for any payment or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any
other Loan Document; 
  
 (c) reduce the principal of, or the rate
of interest specified herein on, any Loan or L/C Borrowing or (subject to clause (iii) of the proviso below) any fees or other amounts payable hereunder or under any other Loan Document, provided, however, that only the
consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest at the Default Rate; 
  
 (d) change the percentage of the Aggregate Commitments or of the aggregate
unpaid principal amount of the Loans and L/C Obligations which is required for the Lenders or any of them to take any action hereunder; 
  
 (e) change the Pro Rata Share of any Lender; 
  
 (f) Release any Guarantor from a Guaranty except in connection with a sale of all of the equity of such Guarantor permitted pursuant to Section
7.06; or 
  
 (g) amend this Section, or Section
2.12, or any provision herein providing for unanimous consent or other action by all the Lenders; 
  
 and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Required Lenders or all the Lenders, as the case may be, affect the
rights or duties of the L/C Issuer under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Required Lenders or all the Lenders, as the case may be, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iii) the Agent/Arranger Fee Letter may be amended, or
rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, any Lender that has failed to fund any portion of the Loans or participations in L/C Obligations required to
be funded by it hereunder shall not have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitments of such Lender may not be increased or extended without the consent of such Lender. 
  

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 10.02 Notices and Other Communications; Facsimile Copies. 
  
 (a) General. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in Subsections (b) and (e) below), all notices and other communications provided for hereunder and under the other Loan Documents shall be in writing
(including by facsimile transmission) and mailed, faxed or delivered by hand or overnight courier service, to the address or facsimile number, or delivered by electronic mail to the electronic mail address, specified for notices on Schedule
10.02 (for the Borrower, any Guarantor, the L/C Issuer and the Administrative Agent) or on the Administrative Details Form (for the Lenders); or, in the case of the Borrower, the Guarantors the Administrative Agent, or the L/C Issuer, to
such other address as shall be designated by such party in a notice to the other parties, and in the case of any other party, to such other address as shall be designated by such party in a notice to the Borrower, the Administrative Agent, and the
L/C Issuer. All such notices and other communications shall be deemed to be given or made upon actual receipt by the intended recipient if delivered by hand or by courier or by mail. If delivered by facsimile, such notices and other communications
shall be deemed to be given or made when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient). Notices delivered
through electronic communications to the extent provided in Subsections (b) and (e) below, shall be effective as provided in said Subsections (b) and (e). 
  
 (b) Electronic Communications. Notices and other communications to the
Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to Subsection (e) below and pursuant to any other procedures approved by the
Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II if such Lender or the Issuing Bank, as applicable, has notified the Administrative Agent that it
is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant
to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 
  
 Except as otherwise provided in Subsection (e) below, unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or
other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available and identifying the website address therefor. 
  
 (c) Change of Address, Etc. Any party hereto may change its address or telecopier number for notices and other communications hereunder by notice
to the other parties hereto. 
  
 (d) Effectiveness of Facsimile
Documents and Signatures. Loan Documents may be transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative Agent may also require that any such documents and signatures be confirmed by a manually-signed original thereof; provided, however,
that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 
  

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 (e) Electronic Platform. So long as Citibank is the Administrative Agent, all information,
documents and other materials that the Borrower is obligated to furnish to the Administrative Agent pursuant to the Loan Documents, including all notices, requests, financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (i) relates to a request for a new, or a conversion of an existing, Borrowing or other extension of credit (including any election of an interest rate or interest period relating
thereto), (ii) relates to the payment of any principal or other amount due under the Credit Agreement prior to the scheduled date therefor, (iii) provides notice of any Default or Event of Default under the Credit Agreement or (iv) is required to be
delivered to satisfy any condition precedent to the effectiveness of the Credit Agreement and/or any Borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as
“Communications”), may be delivered to the Administrative Agent in an electronic medium in a format acceptable to the Administrative Agent and the Lenders by e-mail at oploanswebadmin@citigroup.com. The Borrower agrees that
the Administrative Agent may make the Communications, as well as any other written information, documents, instruments and other material relating to the Borrower, any of its Subsidiaries or any other materials or matters relating to the Loan
Documents or any transactions contemplated thereby available to the Lenders by posting such notices on Intralinks or a substantially similar electronic transmission system (the “Platform”). The Borrower acknowledges that (i)
the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available”
and (iii) neither the Administrative Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each expressly disclaims liability for errors or omissions in the Communications or the
Platform. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects,
is made by the Administrative Agent or any of its Affiliates in connection with the Platform. 
  
 Each Lender agrees that notice to it (as provided in the next sentence) under any of the Loan Documents (a “Notice”) specifying that any Communications hereunder and thereunder have been posted
to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for the purposes of this Agreement and the other Loan Documents; provided that, if requested by any Lender, the
Administrative Agent shall deliver a copy of the Communications hereunder and thereunder to such Lender by e-mail or telecopier. Each Lender agrees (i) to notify the Administrative Agent in writing of such Lender’s e-mail address to which a
Notice may be sent by electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Administrative Agent has on record an
effective e-mail address for such Lender) and (ii) that any Notice may be sent to such e-mail address. 
  
 (f) Reliance by Administrative Agent and Lenders. The Administrative Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Borrowing Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified
herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify each Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording. 
  
 10.03 No Waiver;
Cumulative Remedies. No failure by any Lender or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, 

  

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power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein or therein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. 
  
 10.04 Attorney Costs; Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the Administrative Agent for all reasonable costs and
expenses incurred in connection with the preparation, negotiation, syndication, administration and execution of this Agreement and the other Loan Documents and any amendment, waiver, consent or other modification of the provisions hereof and thereof
(whether or not the transactions contemplated hereby or thereby are consummated), and the consummation and administration of the transactions contemplated hereby and thereby, including all Attorney Costs, and (b) to pay or reimburse the
Administrative Agent and each Lender for all costs and expenses incurred in connection with the enforcement, attempted enforcement, or preservation of any rights or remedies under this Agreement or the other Loan Documents (including all such costs
and expenses incurred during any workout or restructuring in respect of the Obligations and during any legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney Costs. The foregoing costs and expenses shall
include all other out-of-pocket expenses incurred by the Administrative Agent and the cost of independent public accountants and other outside experts retained by the Administrative Agent or any Lender. The agreements in this Section shall survive
the termination of the Commitments and repayment of all the other Obligations. 
  
 10.05 Indemnification. Whether or not the transactions contemplated hereby are consummated, each of the Borrower, the MLP and each other Guarantor (by execution of a Guaranty), jointly and severally, agrees to
indemnify, save and hold harmless each Agent-Related Person, each Syndication Agent-Related Person, each Documentation Agent-Related Person, each Arranger, each Lender, the L/C Issuer and their respective Affiliates, directors, officers, employees,
counsel, agents and attorneys-in-fact (collectively the “Indemnitees”) from and against: (a) any and all claims, demands, actions or causes of action that are asserted against any Indemnitee by any Person (other than the
Administrative Agent or any Lender) relating directly or indirectly to a claim, demand, action or cause of action that such Person asserts or may assert against any Loan Party, any Affiliate of any Loan Party or any of their respective officers or
directors, arising out of or relating to, the Loan Documents, the Commitments, the use or contemplated use of the proceeds of any Loans, or the relationship of any Loan Party, the Administrative Agent, the Lenders and the L/C Issuer under this
Agreement or any other Loan Document; (b) any and all claims, demands, actions or causes of action that may at any time (including at any time following repayment of the Obligations and the resignation of the Administrative Agent or the replacement
of any Lender) be asserted or imposed against any Indemnitee, arising out of or relating to, the Loan Documents, the Commitments, the use or contemplated use of the proceeds of any Loans, or the relationship of any Loan Party, the Administrative
Agent, the Lenders and the L/C Issuer under this Agreement or any other Loan Document; (c) without limiting the foregoing, any and all claims, demands, actions or causes of action that are asserted or imposed against any Indemnitee, (i) under the
application of any Environmental Law applicable to the Borrower or any of its Subsidiaries or any of their properties or assets, including the treatment or disposal of Hazardous Substances on any of their properties or assets, (ii) as a result of
the breach or non-compliance by the Borrower or any Subsidiary with any Environmental Law applicable to the Borrower or any Subsidiary, (iii) due to past ownership by the Borrower or any Subsidiary of any of their properties or assets or past
activity on any of their properties or assets which, though lawful and fully permissible at the time, could result in present liability, (iv) due to the presence, use, storage, treatment or disposal of Hazardous Substances on or under, or the
escape, seepage, leakage, spillage, discharge, emission or release from, any of the properties owned or operated by the Borrower or any Subsidiary (including any liability asserted or arising under any Environmental Law), regardless of whether
caused by, or within the control of, the Borrower or such Subsidiary, or (v) due to any other environmental, health or safety condition in connection with the Loan Documents; (d) any administrative or investigative proceeding by any Governmental
Authority arising out of or 

  

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related to a claim, demand, action or cause of action described in subsection (a), (b) or (c) above; and (e) any and all
liabilities (including liabilities under indemnities), losses, costs or expenses (including Attorney Costs) that any Indemnitee suffers or incurs as a result of the assertion of any foregoing claim, demand, action, cause of action or proceeding, or
as a result of the preparation of any defense in connection with any foregoing claim, demand, action, cause of action or proceeding, in all cases, WHETHER OR NOT ARISING OUT OF THE STRICT LIABILITY OR NEGLIGENCE OF AN INDEMNITEE, and
whether or not an Indemnitee is a party to such claim, demand, action, cause of action or proceeding (all the foregoing, collectively, the “Indemnified Liabilities”); provided that no Indemnitee shall be entitled to
indemnification for any claim to the extent caused by its own gross negligence or willful misconduct. The agreements in this Section shall survive the termination of the Commitments and repayment of all the other Obligations. 
  
 10.06 Payments Set Aside. To the extent that the Borrower makes a
payment to the Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
set-off had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. 
  
 10.07 Successors and Assigns. 
  
 (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such
consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly
contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b) Any Lender may assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations) at the time owing to it); provided that (i) except in the case of an assignment of the entire remaining
amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $1,000,000, unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed), (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, (iii) any assignment of a Commitment must be approved by the Administrative 

  

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 Agent and each L/C Issuer unless the Person that is the proposed assignee is itself a Lender (whether or not the proposed
assignee would otherwise qualify as an Eligible Assignee), and (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 (such fee
to be paid by the assignor or the assignee, as may be agreed between them), and the Eligible Assignee, if not a Lender, shall deliver to the Administrative Agent an Administrative Details Form. Subject to acceptance and recording thereof by the
Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Acceptance, the Eligible Assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 3.07, 10.04 and 10.05). Upon request, the Borrower (at its expense) shall execute and deliver new or replacement Notes to the assigning Lender and the assignee Lender.
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations
in accordance with subsection (d) of this Section. 
  
 (c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and Acceptance delivered to it and a register for the recordation
of the names and addresses of the Lenders, and the Commitments of, and principal amount of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in
the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (d) Any Lender may, without the consent of, or notice to, the Borrower or the
Administrative Agent, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans (including such Lender’s participations in L/C Obligations) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification that
would (i) postpone any date upon which any payment of money is scheduled to be paid to such Participant, (ii) reduce the principal, interest, fees or other amounts payable to such Participant, or (iii) release any Guarantor from the Guaranty.
Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.09 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.12 as though it were a Lender. 
  

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 (e) A Participant shall not be entitled to receive any greater payment under Section 3.01
or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees,
for the benefit of the Borrower, to comply with Section 10.15 as though it were a Lender. 
  
 (f) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Notes,
if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto. 
  
 (g) If the consent of the Borrower to an assignment or to an Eligible Assignee is required hereunder (including a consent to an assignment which does not meet the minimum assignment threshold specified in clause
(i) of the proviso to the first sentence of Section 10.07(b)), the Borrower shall be deemed to have given its consent five Business Days after the date notice thereof has been delivered by the assigning Lender
(through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such fifth Business Day. 
  
 (h) Notwithstanding anything to the contrary contained herein, if at any time a Lender that is also an L/C Issuer assigns all of its Commitment and Loans
pursuant to subsection (b) above, such L/C Issuer may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer. In the event of any such resignation as L/C Issuer, the Borrower shall be entitled to appoint
from among the Lenders a successor L/C Issuer hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of the resigning L/C Issuer. Such resigning L/C Issuer shall retain
all the rights and obligations of an L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the
Lenders to make Base Rate Loans or fund participations in Unreimbursed Amounts pursuant to Section 2.02(c)). 
  
 (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose
funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Loan or L/C Advance
that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan or L/C Advance, (ii) if an SPC elects not to
exercise such option or otherwise fails to provide all or any part of such Loan or L/C Advance in accordance with and at the times required by this Agreement, the Granting Lender shall be obligated to make such Loan or L/C Advance pursuant to the
terms hereof, and (iii) each SPC that is a “foreign corporation, partnership or trust” within the meaning of the Code must comply with the provisions of Section 10.15. The making of a Loan or L/C Advance by an SPC
hereunder shall utilize the Commitment of the Granting Lender to the same extent, and as if, such Loan or L/C Advance were made by such Granting Lender. An SPC shall not be entitled to receive any greater payment under Article III than
its Granting Lender would have been entitled to receive with respect to any Loan or L/C Advance made by such SPC. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). All voting rights under this Agreement shall be exercised solely by the Granting Lender and each Granting Lender shall remain solely responsible to the other parties hereto for its
obligations under this Agreement, including all obligations of a Lender in respect of Loans and L/C Advances made by its SPC. 

  

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Each Granting Lender shall act as administrative agent for its SPC and give and receive notices and other communications hereunder. Any payments for the
account of any SPC shall be paid to its Granting Lender as administrative agent for such SPC and neither the Borrower nor the Administrative Agent shall be responsible for any Granting Lender’s application of any such payments. In furtherance
of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any state
thereof. In addition, notwithstanding anything to the contrary contained in this Section, any SPC may (i) with notice to, but without the prior written consent of, the Borrower and the Administrative Agent, assign all or a portion of its interests
in any Loan or L/C Advances to the Granting Lender or to any financial institutions (consented to by the Borrower and Administrative Agent) providing liquidity and/or credit support to or for the account of such SPC to support the funding or
maintenance of Loans and L/C Advances and (ii) disclose on a confidential basis any non-public information relating to its Loans and L/C Advances to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC. This section may not be amended without the written consent of each SPC. 
  
 10.08 Confidentiality. Each Lender agrees that it will not disclose without the prior consent of the Borrower (other than to directors, officers,
employees, auditors, accountants, counsel or other professional advisors of the Administrative Agent or any Lender) any information with respect to the Borrower or its Subsidiaries, which is furnished pursuant to this Agreement and which (i) the
Borrower in good faith considers to be confidential and (ii) is either clearly marked confidential or is designated by the Borrower to the Administrative Agent or the Lenders in writing as confidential, provided that any Lender may disclose
any such information (a) as has become generally available to the public, (b) as may be required or appropriate in any report, statement or testimony submitted to or required by any municipal, state or federal regulatory body having or claiming to
have jurisdiction over such Lender or submitted to or required by the Board or the Federal Deposit Insurance Corporation or similar organizations (whether in the United States of America or elsewhere) or their successors, (c) as may be required or
appropriate in response to any summons or subpoena in connection with any litigation, (d) in order to comply with any law, order, regulation or ruling applicable to such Lender, (e) to any Eligible Assignee of or Participant in, or any prospective
Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement, provided that such Eligible Assignee or Participant or prospective Eligible Assignee or Participant executes an agreement containing provisions
substantially similar to those contained in this Section 10.08, (f) in connection with the exercise of any remedy by such Lender following an Event of Default pertaining to the Loan Documents, (g) in connection with any litigation
involving such Lender pertaining to the Loan Documents, (h) to any Lender or the Administrative Agent, or (i) to any Affiliate of any Lender (it being understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such information and instructed to keep such information confidential). 
  
 10.09 Set-off. In addition to any rights and remedies of the Lenders provided by law, upon the occurrence and during the continuance of any Event of Default, each Lender is authorized at any time and from time
to time, without prior notice to the Borrower or any other Loan Party, any such notice being waived by the Borrower (on its own behalf and on behalf of each Loan Party) to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held by, and other indebtedness at any time owing by, such Lender to or for the credit or the account of the respective Loan Parties against any and all Obligations
owing to the Administrative Agent and the Lenders, now or hereafter existing, irrespective of whether or not the Administrative Agent or such Lender shall have made demand under this Agreement or any other Loan Document and although such Obligations
may be contingent or unmatured. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off and application made by such Lender; provided, however, that the failure to give such notice shall not
affect the validity of such set-off and application. 
  

 68 

 10.10 Interest Rate Limitation. Regardless of any provision contained in any Loan Document,
neither the Administrative Agent nor any Lender shall ever be entitled to contract for, charge, take, reserve, receive, or apply, as interest on all or any part of the Obligations, any amount in excess of the Maximum Rate, and, if any Lender ever
does so, then such excess shall be deemed a partial prepayment of principal and treated hereunder as such and any remaining excess shall be refunded to the Borrower. In determining if the interest paid or payable exceeds the Maximum Rate, the
Borrower and the Lenders shall, to the maximum extent permitted under applicable Law, (a) treat all Borrowings as but a single extension of credit (and the Lenders and the Borrower agree that such is the case and that provision herein for multiple
Borrowings is for convenience only), (b) characterize any nonprincipal payment as an expense, fee, or premium rather than as interest, (c) exclude voluntary prepayments and the effects thereof, and (d) amortize, prorate, allocate, and spread the
total amount of interest throughout the entire contemplated term of the Obligations. However, if the Obligations are paid and performed in full prior to the end of the full contemplated term thereof, and if the interest received for the actual
period of existence thereof exceeds the Maximum Amount, the Lenders shall refund such excess, and, in such event, the Lenders shall not, to the extent permitted by Law, be subject to any penalties provided by any Laws for contracting for, charging,
taking, reserving, or receiving interest in excess of the Maximum Amount. If, contrary to the parties’ intent expressed in Section 10.16(a), the Laws of the State of Texas are applicable for purposes of determining the
“Maximum Rate” or the “Maximum Amount,” then those terms mean the “weekly ceiling” from time to time in effect under Texas Finance Code § 303.305, as amended. The Borrower agrees
that Chapter 346 of the Texas Finance Code, as amended (which regulates certain revolving credit loan accounts and revolving tri-party accounts), does not apply to the Obligations. 
  
 10.11 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. 
  
 10.12 Integration; Electronic Execution of Assignments. (a) This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of the parties on the subject matter hereof
and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the provisions of this Agreement and those of any other Loan Document, the provisions of this Agreement shall control;
provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof. 
  
 (b) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. 
  

 69 

 10.13 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will
be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or
knowledge of any Default or Event of Default at the time of any Borrowing, and shall continue in full force and effect as long as any Loan or any other Obligation shall remain unpaid or unsatisfied. 
  
 10.14 Severability. Any provision of this Agreement and the other Loan
Documents to which the Borrower is a party that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

10.15 Foreign Lenders. Each Lender that is a “foreign corporation, partnership or trust” within the meaning of the Code (a
“Foreign Lender”) shall deliver to the Administrative Agent, prior to receipt of any payment subject to withholding under the Code (or after accepting an assignment of an interest herein), two duly signed completed copies of
either IRS Form W-8BEN or any successor thereto (relating to such Person and entitling it to an exemption from withholding tax on all payments to be made to such Person by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor
thereto (relating to all payments to be made to such Person by the Borrower pursuant to this Agreement) or such other evidence satisfactory to the Borrower and the Administrative Agent that such Person is entitled to an exemption from U.S.
withholding tax. Thereafter and from time to time, each such Person shall (a) promptly submit to the Administrative Agent such additional duly completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to
time by the relevant United States taxing authorities) as may then be available under then current United States laws and regulations to avoid, or such evidence as is satisfactory to the Borrower and the Administrative Agent of any available
exemption from United States withholding taxes in respect of all payments to be made to such Person by the Borrower pursuant to this Agreement, (b) promptly notify the Agent of any change in circumstances which would modify or render invalid any
claimed exemption, and (c) take such steps as shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement
of applicable Laws that the Borrower make any deduction or withholding for taxes from amounts payable to such Person. If such Person fails to deliver the above forms or other documentation, then the Administrative Agent may withhold from any
interest payment to such Person an amount equivalent to the applicable withholding tax imposed by Sections 1441 and 1442 of the Code, without reduction. If any Governmental Authority asserts that the Administrative Agent did not properly
withhold any tax or other amount from payments made in respect of such Person, such Person shall indemnify the Administrative Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the amounts payable to the
Agent under this Section, and costs and expenses (including Attorney Costs) of the Administrative Agent. The obligation of the Lenders under this Section shall survive the payment of all Obligations and the resignation or replacement of the
Administrative Agent. 
  
 10.16 Governing Law. 

 
 (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER UNITED STATES FEDERAL LAW.

  

 70 

 (b) EACH COMPANY AND OTHER PARTY HERETO, AND EACH GUARANTOR, BY EXECUTION OF A GUARANTY, AGREES AS TO
THIS SECTION 10.16(b). ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, AND BY EXECUTION OF A GUARANTY, EACH GUARANTOR CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER (1) IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO, AND (2) IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF
THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTAGE PREPAID, AT ITS ADDRESS FOR NOTICES DESIGNATED HEREIN. THE BORROWER, EACH GUARANTOR, THE ADMINISTRATIVE
AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE. THE BORROWER AND EACH GUARANTOR, BY ITS EXECUTION OF A GUARANTY, AGREES TO DESIGNATE
AND MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN NEW YORK IN CONNECTION WITH ACTIONS AND PROCEEDINGS UNDER THE LOAN DOCUMENTS AND TO DELIVER TO THE ADMINISTRATIVE AGENT EVIDENCE THEREOF. 
  
 10.17 Waiver of Right to Trial by Jury, Etc. EACH PARTY TO THIS AGREEMENT AND EACH GUARANTOR, BY EXECUTION OF A
GUARANTY, HEREBY (a) EXPRESSLY AND IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES TO
THE LOAN DOCUMENTS OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE COMPANIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY; AND (b) EXPRESSLY AND IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH ACTION ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES, PROVIDED THAT THE WAIVER CONTAINED IN THIS SECTION 10.17(b) SHALL NOT APPLY TO THE EXTENT THAT THE PARTY AGAINST WHOM DAMAGES ARE
SOUGHT HAS ENGAGED IN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 
  
 10.18 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Act”)), it is required to obtain, verify and record information that 

  

 71 

 
identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrower in accordance with the Act. 
  
 10.19 Termination of Existing Credit Agreement. The Borrower has given, or contemporaneously with the execution and delivery of this Agreement is giving, to the administrative agent under the Existing Credit
Agreement, notice of the termination of the lenders under the Existing Credit Agreement, so that such commitments terminate on the Closing Date. Execution of this Agreement by Lenders who are lenders under the Existing Credit Agreement shall
constitute a waiver of the notice provisions in Section 2.05 of the Existing Credit Agreement that would otherwise be applicable to such termination, and the administrative agent under the Existing Credit Agreement may rely on this
Section 10.19. 
  
 10.20 ENTIRE AGREEMENT.
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES. 
  
 [REMAINDER OF PAGE INTENTIONALLY BLANK;
SIGNATURES 
 BEGIN ON NEXT PAGE] 
  

 72 

 IN WITNESS WHEREOF, the parties hereto caused this Agreement to be duly executed as of the data first
above written. 
  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS
L.P., as Borrower
		
	 By:
	 	SUNOCO LOGISTICS PARTNERS GP LLC, its
	 	 	General Partner
	 By:
	 	  
 /s/ PAUL MULHOLLAND

	 Name:
	 	PAUL MULHOLLAND
	 Title:
	 	TREASURER

  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS
L.P., a Dalaware limited partnership, as Guarantor
		
	 By:
	 	SUNOCO PARTNERS LLC, its General Partner
		
	 By:
	 	  
 /s/ PAUL MULHOLLAND

	 Name:
	 	PAUL MULHOLLAND
	 Title:
	 	TREASURER

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	CITIBANK, N.A., as Administrative Agent, a Lender
and L/C Issuer
		
	 By:
	 	 /s/ K. CLINTON GERST

	 Name:
	 	 K. CLINTON GERST

	 Title:
	 	 Attorney-in-Fact

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	 BARCLAYS BANK PLC, as a Lender and L/C Issuer

		
	 By:
	 	 /s/ Nicholas A. Bell

	 Name:
	 	 Nicholas A. Bell

	 Title:
	 	 Director

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	KEYBANK NATIONAL ASSOCIATION, as a Lender
		
	 By:
	 	 /s/ Keven D. Smith

	 Name:
	 	 Keven D. Smith

	 Title:
	 	 Vice President

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	SUNTRUST BANK, as a Lender
		
	 By:
	 	 /s/ David Edge

	 Name:
	 	 David Edge

	 Title:
	 	 Managing Director

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	WACHOVIA BANK, NATIONAL ASSOCIATION, as
a Lender
		
	 By:
	 	 /s/ Russell Clingman

	 Name:
	 	 Russell Clingman

	 Title:
	 	 Director

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	 BANK OF TOKYO-MITSUBISHI TRUST
 COMPANY, as a Lender

		
	 By:
	 	 /s/ Karen Ossolinski

	 Name:
	 	 Karen Ossolinski

	 Title:
	 	 Vice President

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	CREDIT SUISSE FIRST BOSTON, acting through
its Cayman Islands Branch, as a Lender
		
	 By:
	 	 /s/ Jay Chall

	 Name:
	 	 Jay Chall

	 Title:
	 	 Director

		
	 By:
	 	 /s/ Mikhail Faybusovich

	 Name:
	 	 Mikhail Faybusovich

	 Title:
	 	 Associate

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	LEHMAN BROTHERS BANK, FSB, as a Lender
		
	 By:
	 	 /s/ Gary T. Taylor

	 Name:
	 	Gary T. Taylor
	 Title:
	 	Vice President

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	ROYAL BANK OF CANADA, as a Lender
		
	 By:
	 	 /s/ Linda M. Stephens

	 Name:
	 	Linda M. Stephens
	 Title:
	 	Authorized Signatory

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

			
	UBS LOAN FINANCE LLC, as a Lender
		
	 By:
	 	 /s/ Doris Mesa

	 	 	 Doris Mesa

	 	 	 Associate Director

	 	 	 Banking Products

	 	 	 Services, US

		
	 By:
	 	 /s/ Winslowe Ogbourne

	 	 	 Winslowe Ogbourne

	 	 	 Associate Director

	 	 	 Banking Products

	 	 	 Services, US

  

 [THIS IS A SIGNATURE PAGE TO THE 
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. CREDIT AGREEMENT] 

 SCHEDULE 1.01 
  
 EXISTING LETTERS OF CREDIT 
  
 None 
  

 Schedule 1.01 - Page 1 

 SCHEDULE 2.01 
  
 COMMITMENTS 
  

				
	 Lender

	  	Commitment

	 Citibank, N.A.
	  	$	28,500,000
		
	 Barclays Bank PLC
	  	$	28,500,000
		
	 KeyBank National Association
	  	$	26,000,000
		
	 SunTrust Bank
	  	$	26,000,000
		
	 Wachovia Bank, National Association
	  	$	26,000,000
		
	 Bank of Tokyo-Mitsubishi Trust Company
	  	$	23,000,000
		
	 Credit Suisse First Boston
	  	$	23,000,000
		
	 Lehman Brothers Bank, FSB
	  	$	23,000,000
		
	 Royal Bank of Canada
	  	$	23,000,000
		
	 UBS Loan Finance LLC
	  	$	23,000,000
		
	 Total:
	  	$	250,000,000

  

 Schedule 2.01 - Page 1 

 SCHEDULE 5.12 
  
 SUBSIDIARIES 
 AND OTHER EQUITY INVESTMENTS

  

	(a)	Subsidiaries as of the Closing Date: 

  

					
	 Name

	  	Jurisdiction of Organization

	  	 Ownership

	1. Sunoco Logistics Partners Operations GP LLC	  	Delaware	  	100% owned by the Borrower
			
	2. Sunoco Partners Marketing & Terminals L.P.	  	Texas	  	99.99% limited partner interest owned by the Borrower
			
	 	  	 	  	0.01% general partner interest owned by Sunoco Logistics Partners Operations GP LLC
			
	3. Sunoco Pipeline L.P.	  	Texas	  	99.99% limited partner interest owned by the Borrower
			
	 	  	 	  	0.01% general partner interest owned by Sunoco Logistics Partners Operations GP LLC
			
	4. PUT, LLC	  	Delaware	  	100% owned by Sunoco Pipeline, L.P.
			
	5. Sunoco West Texas Gulf Pipe Line LLC	  	Delaware	  	100% owned by Sunoco Pipeline, L.P.

  

	(b)	Investments in Permitted Joint Ventures as of the Closing Date 

  
 1. Sunoco Pipeline L.P. has a 9.4% interest in Explorer Pipeline Company, a Delaware corporation. 
  

	2.	Sunoco West Texas Gulf Pipe Line LLC has a 43.81% in West Texas Gulf Pipe Line Company, a Delaware limited liability company 

  
 3. PUT, LLC has (A) a 31.50% interest in Wolverine Pipeline Company, a Delaware limited
liability company, (B) a 14.00% interest in Yellowstone Pipeline Company, a Delaware limited liability company, and (C) a 12.3% interest in West Shore Pipeline Company, a Delaware limited liability company. 
  

 Schedule 5.12 - Page 1 

 SCHEDULE 7.01 
  
 EXISTING LIENS 
  
 None 
  

 Schedule 7.01 - Page 1 

 SCHEDULE 10.02 
  
 ADDRESSES FOR NOTICES TO BORROWER, 
 GUARANTORS
AND ADMINISTRATIVE AGENT 
  
 ADDRESS FOR NOTICES TO BORROWER 
  
 SUNOCO LOGISTICS PARTNERS OPERATIONS L.P. 
  
 Ten Penn Center 
 1801 Market Street 
 Philadelphia, PA 19103 
 Attn: Paul A. Mulholland 
 Telephone: (215) 246-8810 
 Facsimile: (215) 977-3559 
 Electronic Mail: pamulholland@sunocoinc.com 
  
 ADDRESS FOR NOTICES TO GUARANTORS 
  
 Ten Penn Center 
 1801 Market Street 
 Philadelphia, PA 19103 
 Attn: Paul A. Mulholland 
 Telephone: (215) 246-8810 
 Facsimile: (215) 977-3559 
 Electronic Mail: pamulholland@sunocoinc.com 
  
 ADDRESSES FOR ADMINISTRATIVE AGENT 
  
 Administrative Agent’s Office: 
  
 Citibank, N.A. 
 Two Penns Way, 1st Floor 
 Newcastle, DE 19720 
 Attention: Dawayne Sims 
 Telephone: (302) 894-6011 
 Facsimile: (212) 994-0961 
 Electronic Mail: dawayne.sims@citigroup.com 
 Account No.: 36852248

 Ref: Sunoco Logistics Partners 
 ABA# 021000089 
  

 Schedule 10.02 – Page 1 

 L/C Issuer - Citibank: 
  

Citibank, N.A. 
 Two Penns Way, 1st Floor 
 Newcastle, DE 19720 
 Attention: Dawayne Sims 
 Telephone: (302) 894-6011 
 Facsimile: (212) 994-0961 
 Electronic Mail: dawayne.sims@citigroup.com

 Account No.: 36852248 
 Ref: Sunoco Logistics Partners

 ABA# 021000089 
  
 L/C Issuer -– Barclays: 
  
 Barclays
Bank PLC 
 200 Park Avenue 
 New York, NY 10166 
 Attention: Dawn Townsend 
 Telephone: (212) 412-5142 
 Facsimile: (212) 412-5111  
 Electronic Mail: dawn.townsend@barcap.com

  

 Schedule 10.02 - Page 2 

 EXHIBIT A-1 
  
 FORM OF BORROWING NOTICE 
  
 Date:                     ,
         
  

	To:	Citibank, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of November 22, 2004 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Sunoco Logistics Partners Operations L.P., a Delaware limited partnership, Sunoco Logistics Partners L.P., a
Delaware limited partnership, the Lenders from time to time party thereto, and Citibank, N.A., as Administrative Agent. 
  

	 	1.	The undersigned hereby requests the following Type of Loan and applicable Dollar amount: 

  

	 	(a)	Base Rate Loan for $                        .

  

	 	(b)	Eurodollar Rate Loan with Interest Period of: 

  

	 	(i)	one month for
            $                            
     

  

	 	(ii)	two months for
          $                              
   

  

	 	(iii)	three months for
        $                                

  

	 	(iv)	six months for
            $                           
      

  

	 	2.	Requested date of Borrowing:                     , 200_.

  

	 	3.	Purpose of Loan: 

  
          To fund Quarterly Distributions (Section 6.12(d) of the Agreement)
 
          Other 
  

	 	4.	If the Loan is for the purpose of funding Quarterly Distributions: 

  

	 	(a)	Total outstanding amount of Distribution Loans:
$                                 

  

	 	(b)	Amount of Distribution Loan requested:
$                                 

  

	 	(c)	Total of lines 4.(a)plus4.(b):
$                                 

	 	(must	be not be greater than $20,000,000) 

  
 The undersigned hereby certifies that the following statements will be true on the date of the proposed Borrowing(s) after giving effect thereto and to
the application of the proceeds therefrom: 
  
 (a) the
representations and warranties of the Borrower contained in Article V (excluding Section 5.05(c)) of the Agreement are true and correct as though made on and as of such date (except such representations and warranties
which expressly refer to an earlier date, which are true and correct as of such earlier date); and 
  

 Exhibit A-1 
 Page 1 
 Form of Borrwoing Notice 

 (b) no Default or Event of Default has occurred and is continuing, or would result from such proposed
Borrowing(s). 
  
 The Borrowing requested herein complies with
Sections 2.01, and 2.03 of the Agreement, as applicable. 
  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
		
	By	 	Sunoco Logistics Partners GP LLC, its
	 	 	General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit A-1 
 Page 2 
 Form of Borrowing Notice 

 EXHIBIT A-2 
  
 FORM OF CONVERSION/CONTINUATION NOTICE 
  
 Date:                     ,
         
  

	TO:	Citibank, N.A., as Administrative Agent 

  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of November 22, 2004 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement”; the terms defined therein being used herein as herein defined), among Sunoco Logistics Partners Operations L.P., a Delaware limited partnership, Sunoco Logistics Partners L.P., a
Delaware limited partnership, the Lenders from time to time party thereto, and Citibank, N.A., as Administrative Agent. 
  
 The undersigned hereby requests a [conversion] [continuation] of Loans as follows: 
  

									
	1.	 	Amount of [conversion] [continuation]:	  	$                     
			
	2.	 	Existing rate:	  	Check applicable blank
				
	 	 	(a)	  	Base Rate	  	 
				
	 	 	(b)	  	 Eurodollar Rate Loan with
 Interest Period
of:
	  	 
					
	 	 	 	  	(i)	  	one month	  	 
					
	 	 	 	  	(ii)	  	two months	  	 
					
	 	 	 	  	(iii)	  	three months	  	 
					
	 	 	 	  	(iv)	  	six months	  	 
		
	3.	 	If a Eurodollar Rate Loan, date of the last day of the Interest Period for such Loan:
                    , 200    .
	
	The Loan described above is to be [converted] [continued] as follows:
			
	4.	 	Requested date of [conversion] [continuation]:             , 200    .	  	 
			
	5.	 	Requested Type of Loan and applicable Dollar amount:	  	 
				
	 	 	(a)	  	Base Rate Loan for	  	$
                                
				
	 	 	(b)	  	Eurodollar Rate Loan with Interest Period of:	  	 
					
	 	 	 	  	(i)	  	one month for	  	$
                                
					
	 	 	 	  	(ii)	  	two months for	  	$
                                
					
	 	 	 	  	(iii)	  	three months for	  	$
                                
					
	 	 	 	  	(iv)	  	six months for	  	$
                                

  

 Exhibit A-2 
 Page 1 
 Form of Conversion Continuation Notice 

 The [conversion] [continuation] requested herein complies with Sections 2.01 and
2.03 of the Agreement, as applicable. 
  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
		
	By	 	Sunoco Logistics Partners GP LLC, its
	 	 	General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit A-2 
 Page 2 
 Form of Conversion Continuation Notice 

 EXHIBIT B 
  
 FORM OF NOTE 
  

			
	$                                	 	November 22, 2004

  
 FOR VALUE RECEIVED,
the undersigned (the “Borrower”), hereby promises to pay to the order of              (the “Lender”), on the Maturity Date (as defined
in the Credit Agreement referred to below) the principal amount of             Dollars            
($            ), or such lesser principal amount of Loans (as defined in such Credit Agreement) due and payable by the Borrower to the Lender on the Maturity Date under that certain
Credit Agreement, dated as of even date herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein
defined), among the Borrower, Sunoco Logistics Partners L.P., a Delaware limited partnership, the Lenders from time to time party thereto, and Citibank, N.A., as Administrative Agent. 
  
 The Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of such Loan until such
principal amount is paid in full, at such interest rates, and at such times as are specified in the Agreement. All payments of principal and interest shall be made to the Administrative Agent for the account of the Lender in Dollars in immediately
available funds at the Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the date of actual payment (and before
as well as after judgment) computed at the per annum rate set forth in the Agreement. 
  
 This Note is one of the Notes referred to in the Agreement, is entitled to the benefits thereof and is subject to optional and mandatory prepayment in whole or in part as provided therein. This Note is also entitled
to the benefits of each Guaranty. Upon the occurrence of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable all as
provided in the Agreement. Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this Note and endorse thereon the
date, amount and maturity of its Loans and payments with respect thereto. 
  
 This Note is a Loan Document and is subject to Section 10.10 of the Credit Agreement, which is incorporated herein by reference the same as if set forth herein verbatim. 
  
 The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, notice of intent to accelerate, notice of acceleration, demand, dishonor and non-payment of this Note. 
  

 Exhibit B 
 Page 1 
 Form of Notice 

 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
		
	By:	 	 Sunoco Logistics Partners GP LLC, its
 General
Partner

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 Exhibit B 
 Page 2 
 Form of Notice 

 LOANS AND PAYMENTS WITH RESPECT THERETO 
  

													
	 Date

	 	 Type of Loan
Made

	 	 Amount of
 Loan Made

	  	 End of
 Interest
 Period

	  	Amount of
Principal or
Interest Paid
This Date

	  	Revolver
Principal Debt
This Date

	  	 Notation
 Made By

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

	
	 	
	 	
	  	
	  	
	  	
	  	

  

 Exhibit B 
 Page 3 
 Form of Note 

 EXHIBIT C 
  
 FORM OF COMPLIANCE CERTIFICATE 
 (Pursuant to
Section 6.02 of the Agreement) 
  
 Financial
Statement Date:                     ,              
  
 To: Citibank, N.A., as Administrative Agent 
  
 Ladies and Gentlemen: 
  
 Reference is made to that certain Credit Agreement, dated as of November 22, 2004 (as
amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as therein defined), among Sunoco Logistics Partners Operations L.P.,
a Delaware limited partnership (the “Borrower”), Sunoco Logistics Partners L.P., a Delaware limited partnership (the “MLP”), the Lenders from time to time party thereto, and Citibank, N.A., as
Administrative Agent. Capitalized terms used herein but not defined herein shall have the meaning set forth in the Agreement. 
  
 The undersigned Responsible Officers hereby certify as of the date hereof that they are the
                         of the MLP and the
                         of the Borrower, and that, as such, they are authorized to execute and deliver this Certificate
to the Administrative Agent on the behalf of the MLP and the Borrower, and that: 
  
 [Use one of the following for fiscal year-end financial statements] 
  
 Attached hereto are the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the MLP ended as of the above date, together with the report and opinion of an independent
certified public accountant required by such section. [or] 
  
 The year-end
audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the MLP ended as of the above date, together with the report and opinion of an independent certified public accountant required by such
section were filed on-line through EDGAR on                     . 
  
 [Use one of the following for fiscal quarter-end financial statements] 
  
 Attached hereto are the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of
the MLP ended as of the above date, together with a certificate of a Responsible Officer of the MLP stating that such financial statements fairly present the financial condition, results of operations and cash flows of the MLP and its Subsidiaries
in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. [or] 
  
 Attached is a certificate of a Responsible Officer of the MLP stating that the unaudited financial statements required by Section 6.01(b) of the Agreement
for the fiscal quarter of the MLP ended as of the above date, which were filed on-line through EDGAR on                     , fairly present
the financial condition, results of operations and cash flows of the MLP and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
  
 [Use the following for both fiscal year-end and quarter-end financial statements] 

 

 Exhibit C 
 Page 1 
 Form of Compliance Certificate 

 1. The undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made
under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the attached financial statements. 
  
 2. A review of the activities of the MLP and the Borrower during such fiscal period has been
made under the supervision of the undersigned with a view to determining whether during such fiscal period the MLP and the Borrower performed and observed all their respective Obligations under the Loan Documents, and no Default or Event of Default
has occurred and is continuing except as follows (list of each such Default or Event of Default and include the information required by Section 6.03 of the Credit Agreement): 
  
 3. The covenant analyses and information set forth on Schedule 1 attached
hereto are true and accurate on and as of the date of this Certificate. 
  
 IN
WITNESS WHEREOF, the undersigned has executed this Certificate as of                         ,
                        . 
  

			
	SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.
		
	By:	 	Sunoco Logistics Partners GP LLC,
	 	 	its General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	SUNOCO LOGISTICS PARTNERS L.P., a Delaware limited partnership
		
	By:	 	Sunoco Partners LLC, its General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 Exhibit C 
 Page 2 
 Form of Compliance Certificate 

 For the Quarter/Year ended
                    (“Statement Date”) 
  
 SCHEDULE 1 
 to the Compliance Certificate 
 ($ in 000’s) 
  

									
	I.	  	Section 7.04(e) – Indebtedness of Subsidiaries	  	 
				
	 	  	A.	  	Consolidated EBITDA for the most recent four fiscal quarters: (Line II.A.8 below)	  	$            
				
	 	  	B.	  	Consolidated EBITDA shown in Line I.A, times 0.5:	  	$            
				
	 	  	C.	  	Actual Principal Amount of Indebtedness of Subsidiaries: (may not exceed the amount set forth in Line I.B above)	  	$            
		
	II.	  	Section 7.14(a) – Interest Coverage Ratio.
				
	 	  	A.	  	Consolidated EBITDA for four consecutive fiscal quarters ending on the Statement Date (“ Subject Period “) (see Credit Agreement definition of
“Consolidated EBITDA”):	  	 
					
	 	  	 	  	1.	  	Consolidated Net Income for Subject Period:	  	$            
					
	 	  	 	  	2.	  	Consolidated Interest Charges for Subject Period:	  	$            
					
	 	  	 	  	3.	  	Provision for income taxes for Subject Period:	  	$            
					
	 	  	 	  	4.	  	Depreciation expenses for Subject Period:	  	$            
					
	 	  	 	  	5.	  	Amortization expenses for Subject Period:	  	$            
					
	 	  	 	  	6.	  	Consolidated EBITDA (prior to pro forma adjustments for Asset Acquisitions pursuant to Section 7.14(c)(i)) (Lines II.A.1 + II.A.2 + II.A.3 + II.A.4 + II.A.5):	  	$            
					
	 	  	 	  	7.	  	Pro forma adjustments to EBITDA for Asset Acquisitions during the Subject Period (Section 7.14(c)(i)), giving effect to such Asset Acquisitions on a pro forma basis for the
Subject Period as if such Asset Acquisitions occurred on the first day of the Subject Period:	  	$            

  

 Exhibit C 
 Page 3 
 Form of Assignment and Assumption 

									
					
	 	  	 	  	8.	  	Consolidated EBITDA, including pro forma adjustments for Asset Acquisitions (Lines II.A.6 + II.A.7):	  	$            
				
	 	  	B.	  	Consolidated Interest Charges for Subject Period:	  	 
					
	 	  	 	  	1.	  	Consolidated Interest Charges for the four consecutive fiscal quarters ending on the Statement Date:	  	$            
					
	 	  	 	  	2.	  	Pro forma adjustment for Interest Charges during the four consecutive fiscal quarters ending on the Statement Date (Section 7.14(c)(ii)):	  	$            
					
	 	  	 	  	3.	  	Consolidated Interest Charges, including pro forma adjustments (Lines II.B.1 + II.B.2):	  	$            
				
	 	  	C.	  	Interest Coverage Ratio:	  	 
					
	 	  	 	  	1.	  	Consolidated EBITDA adjusted for Asset Acquisitions (Line II.A.8):	  	$            
					
	 	  	 	  	2.	  	Consolidated Interest Charges adjusted for Asset Acquisitions (Line II.B.3):	  	$            
					
	 	  	 	  	3.	  	Interest Coverage Ratio (Line II.C.1 ÷ Line II.C.2):	  	 
				
	 	  	 	  	Minimum required: 3.0:1.0	  	         to 1.0
			
	III.	  	Section 7.14(b) – Leverage Ratio	  	 
				
	 	  	A.	  	Consolidated Total Debt:	  	$            
				
	 	  	B.	  	Minus Excluded Affiliate Debt	  	$            
				
	 	  	C.	  	Consolidated EBITDA (including pro forma adjustments for Asset Acquisitions) (Line II.A.8 above):	  	$            
				
	 	  	D.	  	Leverage Ratio ((Line III.A minus Line III.B÷ III.C):	  	         to 1.0
				
	 	  	 	  	 Maximum permitted: 4.5:1.0*
 *If
Section 7.14(b)(i) is applicable (Acquisition Period), please attach separate sheet showing relevant calculations and compliance.
	  	 

  

 Exhibit C 
 Page 4 
 Form of Compliance Certificate 

									
			
	IV.	  	Compliance with Sections 7.02(c), (d), (e) and (f) (Permitted Joint Ventures)	  	 
			
	 	  	Amount of Investment permitted by Section 7.02(c) (note: fixed amount as of the Closing Date):	  	$            
			
	 	  	Aggregate Investment in Permitted Joint Ventures as of the Statement Date permitted pursuant to Section 7.02(d)
(equity issuances):	  	$            
			
	 	  	Purchase price for equity interests in Mid-Valley joint venture ( Section 7.02(e)):	  	$            
			
	 	  	Aggregate Investment in Permitted Joint Ventures as of the Statement Date permitted pursuant to Section 7.02(f) :
(maximum: $ 150,000,000)	  	$            
			
	V.	  	Compliance with Section 7.02(g) (Canadian Subsidiaries)	  	 
			
	 	  	Aggregate Investment in Canadian Subsidiaries as of the Statement Date: (maximum: $ 50,000,000)	  	$            
			
	VI.	  	Calculation of Compliance with Section 7.06(a)(iv) and Section 2.04(b) (Dispositions and Mandatory Prepayments)	  	 
				
	 	  	A.	  	Section 2.04(b)(i) and Section 7.06(a)(iv):	  	 
					
	 	  	 	  	1.	  	The aggregate Net Cash Proceeds realized from Triggering Sales during the fiscal quarter ending on the Statement Date (required to be deposited with the Administrative Agent pursuant to
Section 2.04(b)(iii)):	  	$            
					
	 	  	 	  	2.	  	Amount of Loans to be prepaid and amount of Commitment reduction (Unreinvested proceeds of Dispositions – see Section 2.04(b)(iii)):	  	$            
			
	VII.	  	Distribution Loans – Section 2.01(b) –Date of prepayment and Commitment reduction	  	 
				
	 	  	A.	  	Total amount of Distribution Loans outstanding as of the Statement Date (may not exceed $20,000,000):	  	$            
				
	 	  	B.	  	Attach schedule showing each date on which a Distribution Loan was made and each repayment during the fiscal quarter ending on the Statement Date	  	 

  

 Exhibit C 
 Page 5 
 Form of Compliance Certificate 

									
			
	VIII.	  	Section 7.07 – Calculation of Available Cash and Quarterly Distributions	  	 
				
	 	  	A.	  	Available Cash of the MLP for the fiscal quarter ending on the Statement Date:	  	$             
				
	 	  	B.	  	Available Cash of the Borrower for the fiscal quarter ending on the Statement Date:	  	$             
				
	 	  	C.	  	Borrower Distributions of Available Cash made during the fiscal quarter ending on the Statement Date (attach a schedule showing date(s) and amount(s))	  	 
				
	 	  	D.	  	MLP Distributions of Available Cash made during the fiscal quarter ending on the Statement Date (attach a schedule showing date(s) and amount(s))	  	 

									
			
	IX.	  	Section 6.15 – Clean Down Period	  	 
			
	 	  	[This section is required to be completed only at fiscal year end, and only if during any such fiscal year
the Borrower requested Distribution Loans.] One Clean Down period of
fifteen (15) consecutive days
during the fiscal year is required in compliance with Section 6.15. For the current fiscal year, describe
the Clean Down period (period of consecutive days (and dates)):	  	# of Days         Dates

  

 Exhibit C 
 Page 6 
 Form of Compliance Certificate 

 EXHIBIT D 
  
 FORM OF ASSIGNMENT AND ASSUMPTION 
  
 This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered
into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given
to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 
  
 For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes
from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and
obligations of the Assignor under the respective facilities identified below (including any letters of credit and guarantees included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the
rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned Interest”).
Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 
  
 1.
Assignor:                                       
                                        
                                  
  
 2.
Assignee:                                       
                                       
                                   
                                        
                                     [and is an Affiliate of
[identify Lender] 
  
 3. Borrower(s): Sunoco Logistics
Partners Operations L.P. 
  
 4. Administrative Agent: Citibank,
N.A., as the administrative agent under the Credit Agreement 
  
 5. Credit Agreement: The Credit Agreement dated as of November 22, 2004 among Sunoco Logistics Partners Operations L.P.    , the Lenders parties thereto, and Citibank, N.A., as Administrative Agent 
  

 Exhibit D 
 Page 1 
 Form of Assignment and Assumption 

	6.	Assigned Interest: 

  

							
	 Aggregate Amount
 of
 Commitment/Loans
 for all Lenders

	 	 Amount of
 Commitment/Loans
 Assigned1

	 	 Percentage Assigned
 of
 Commitment/Loans2

	 	 CUSIP Number

	 $
	 	$	 	%	 	 
	 $
	 	$	 	%	 	 
	 $
	 	$	 	%	 	 

  

	 	[7.	Trade Date:                    ]3 

	1	Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 

	2	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 

	3	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

  

 Exhibit D 
 Page 2 
 Form of Assignment and Assumption 

 Effective Date:
                             , 20         [TO BE
INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  
 The terms set forth in this Assignment and Assumption are hereby agreed to: 
  

			
	ASSIGNOR
	[NAME OF ASSIGNOR]
		
	By:	 	  

	Title:	 	 
	
	ASSIGNEE
	[NAME OF ASSIGNEE]
	By:	 	  

	Title:	 	 

  

			
	[Consented to and]1 Accepted:
	
	CITIBANK, N.A., as
	Administrative Agent
		
	By	 	  

	Title:	 	 
	
	[Consented to:]2
	
	[NAME OF RELEVANT PARTY]
		
	By	 	  

	Title:	 	 

	1	To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 

	2	To be added only if the consent of the Borrower and/or L/C Issuer is required by the terms of the Credit Agreement. 

  

 Exhibit D 
 Page 3 
 Form of Assignment and Assumption 

 ANNEX 1 to Assignment and Assumption 
  
 STANDARD TERMS AND CONDITIONS FOR 
 ASSIGNMENT AND ASSUMPTION 
  
 1.
Representations and Warranties. 
  
 1.1 Assignor. The
Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and
has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in
or in connection with the Credit Agreement or any other Loans Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their
respective obligations under any Loan Document. 
  
 1.2.
Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and
to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter
into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the
Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations that by the terms of the Loan Documents are required to be performed by it as a Lender. 
  
 2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the
Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts that have accrued to but excluding the Effective Date and to the Assignee for amounts that have accrued from and after the Effective
Date. 
  
 3. General Provisions. This Assignment and
Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption
shall be governed by, and construed in accordance with, the law of the State of New York. 
  

 Exhibit D 
 Page 4 
 Form of Assignment and Assumption 

 EXHIBIT E-1 
  
 FORM OF SUBSIDIARY GUARANTY 
  
 THIS GUARANTY is executed as of November 22, 2004, jointly and severally by the undersigned (each a “Guarantor” and collectively
the “Guarantors”), for the benefit of CITIBANK, N.A., a national banking association (in its capacity as Administrative Agent for the benefit of Lenders). 
  
 RECITALS 
  
 A. Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (“Borrower”), Sunoco Logistics Partners L.P., a
Delaware limited partnership (the “MLP”), Citibank, N.A., as Administrative Agent (including its permitted successors and assigns in such capacity, “Administrative Agent”), and the Lenders now or
hereafter party to the Credit Agreement (including their respective permitted successors and assigns, “Lenders”) have entered into a Credit Agreement, dated as of November 22, 2004 (as amended, modified, supplemented, or
restated from time to time, the “Credit Agreement”); 
  
 B. Provisions of the Credit Agreement permit Guarantors to directly or indirectly receive proceeds of Borrowings made pursuant thereto; and 
  
 C. This Guaranty is integral to the transactions contemplated by the Loan Documents and the execution and delivery hereof,
is a condition precedent to Lenders’ obligations to extend credit under the Loan Documents. 
  
 ACCORDINGLY, for adequate and sufficient consideration, the receipt and adequacy of which are hereby acknowledged, each Guarantor, jointly and severally,
guarantees to Administrative Agent and Lenders the prompt payment when due, whether at stated maturity, by required payment, upon acceleration, demand or otherwise, of the Guaranteed Debt (defined below) as follows: 
  
 1. DEFINITIONS. Terms defined in the Credit Agreement have the same
meanings when used, unless otherwise defined, in this Guaranty. As used in this Guaranty: 
  
 Borrower means Borrower, Borrower as a debtor-in-possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for Borrower or for all or substantially all of Borrower’s assets under any Debtor Relief Law. 
  
 Credit Agreement is defined in the recitals to this Guaranty. 
  
 Guaranteed Debt means, collectively, (a) the Obligations and (b) all present and future costs, attorneys’
fees, and expenses reasonably incurred by Administrative Agent or any Lender to enforce Borrower’s, any Guarantor’s, or any other obligor’s payment of any of the Guaranteed Debt, including, without limitation (to the extent lawful),
all present and future amounts that would become due but for the operation of §§ 502 or 506 or any other provision of Title 11 of the United States Code and all present and future accrued and unpaid interest
(including, without limitation, all post-maturity interest and any post-petition interest in any proceeding under Debtor Relief Laws to which Borrower or any Guarantor becomes subject). 
  
 Guarantor and Guarantors is defined in the preamble to this Guaranty. 
  

 Exhibit E-1 
 Page 1 
 Form of Subsidiary Guaranty 

 Lender means, individually, or Lenders means, collectively, on any date of
determination, the Lenders and their permitted successors and assigns. 
  
 Subordinated Debt means, for each Guarantor, all present and future obligations of any Company to such Guarantor, whether those obligations are (a) direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several,
or joint and several, (b) due or to become due to such Guarantor, (c) held by or are to be held by such Guarantor, (d) created directly or acquired by assignment or otherwise, or (e) evidenced in writing. 
  
 2. GUARANTY. (a) This is an absolute, irrevocable, and continuing
guaranty of payment, not collection, and the circumstance that at any time or from time to time the Guaranteed Debt may be paid in full does not affect the obligation of any Guarantor with respect to the Guaranteed Debt incurred after that. This
Guaranty remains in effect until the Guaranteed Debt is fully paid and performed, all commitments to extend any credit under the Loan Documents have terminated and all Letters of Credit have terminated. No Guarantor may rescind or revoke its
obligations with respect to the Guaranteed Debt. Notwithstanding any contrary provision, it is the intention of Guarantors, Lenders, and Administrative Agent that the amount of the Guaranteed Debt guaranteed by each Guarantor by this Guaranty shall
be in, but not in excess of, the maximum amount permitted by fraudulent conveyance, fraudulent transfer, or similar Laws applicable to each such Guarantor. Accordingly, notwithstanding anything to the contrary contained in this Guaranty or any other
agreement or instrument executed in connection with the payment of any of the Guaranteed Debt, the amount of the Guaranteed Debt guaranteed by any Guarantor under this Guaranty shall be limited to an aggregate amount equal to the largest amount that
would not render such Guarantor’s obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provision of any applicable state Law. 
  
 (b) No Setoff or Deductions; Taxes; Payments. Each Guarantor represents and
warrants that it is organized and resident in the United States of America. Each Guarantor shall make all payments hereunder (i) without setoff or counterclaim, and (ii) free and clear of and without deduction for any taxes, levies, imposts, duties,
charges, fees, deductions, withholdings, restrictions or conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless such Guarantor is compelled by
law to make such deduction or withholding. If any such obligation (other than one arising with respect to taxes based on or measured by the income or profits of the Lender) is imposed upon a Guarantor with respect to any amount payable by it
hereunder, such Guarantor will pay to the Lender, on the date on which such amount is due and payable hereunder, such additional amount in Dollars as shall be necessary to enable the Lender to receive the same net amount which the Lender would have
received on such due date had no such obligation been imposed upon such Guarantor. Each Guarantor will deliver promptly to the Lender certificates or other valid vouchers for all taxes or other charges deducted from or paid with respect to payments
made by such Guarantor hereunder. The obligations of each Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty. 
  
 (c) All payments made by a Guarantor under this Guaranty shall be made to the Administrative Agent at the Administrative
Agent’s Office in Dollars. 

	

	3.	CONSIDERATION. Each Guarantor represents and warrants that its liability under this 

  
 Guaranty may reasonably be expected to directly or indirectly benefit it. 
  
 4. CUMULATIVE RIGHTS. If any Guarantor becomes liable for any
indebtedness owing by Borrower to Administrative Agent or any Lender, other than under this Guaranty, that liability may 

  

 Exhibit E-1 
 Page 2 
 Form of Subsidiary Guaranty 

 
not be in any manner impaired or affected by this Guaranty. The Rights of Administrative Agent or Lenders under this Guaranty are cumulative of any and all
other Rights that Administrative Agent or Lenders may ever have against any Guarantor. The exercise by Administrative Agent or Lenders of any Right under this Guaranty or otherwise does not preclude the concurrent or subsequent exercise of any other
Right. 
  
 5. PAYMENT UPON DEMAND; OBLIGATIONS
INDEPENDENT. (a) If an Event of Default exists, each Guarantor shall, on demand and without further notice of dishonor and without any notice having been given to any Guarantor previous to that demand of either the acceptance by Administrative
Agent or Lenders of this Guaranty or the creation or incurrence of any Guaranteed Debt, pay the amount of the Guaranteed Debt then due and payable to Administrative Agent and Lenders; provided that, if an Event of Default exists and
Administrative Agent or Lenders cannot, for any reason, accelerate the Obligations, then the Guaranteed Debt shall be, as among Guarantors, Administrative Agent, and Lenders, a fully matured, due, and payable obligation of Guarantors to
Administrative Agent and Lenders. 
  
 (b) The obligations of each
Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the obligations of any other guarantor, and it is not necessary for Administrative Agent or Lenders, in order to
enforce this Guaranty against any Guarantor, first or contemporaneously to institute suit or exhaust remedies against Borrower or others liable on any Guaranteed Debt. 
  
 6. SUBORDINATION. The Subordinated Debt is expressly subordinated to the full and final payment of the Obligations.
Upon the occurrence and during the continuation of a Default or an Event of Default, each Guarantor agrees not to accept any payment of any Subordinated Debt from any Company. In the event of (i) any insolvency, bankruptcy, receivership,
liquidation, reorganization, readjustment, composition or other similar proceeding relating to any Company, its creditors as such or its property, (ii) any proceeding for the liquidation, dissolution or other winding-up of any Company, voluntary or
involuntary, whether or not involving insolvency or bankruptcy proceedings, (iii) any assignment by any Company for the benefit of creditors, or (iv) any other marshalling of the assets of a Company, the Obligations (including any interest thereon
accruing at the legal rate after the commencement of any such proceedings and any additional interest that would have accrued thereon but for the commencement of such proceedings) shall first be paid in full before any payment or distribution,
whether in cash, securities or other property, shall be made to any holder of any Subordinated Debt. If any Guarantor receives any payment of any Subordinated Debt in violation of the terms of this Section, such Guarantor shall hold that payment in
trust for Administrative Agent and Lenders and promptly turn it over to Administrative Agent, in the form received (with any necessary endorsements), to be applied to the Obligations. 
  
 7. SUBROGATION AND CONTRIBUTION. Until payment in full of the Guaranteed Debt, the termination of the
Obligations of Lenders to extend credit under the Loan Documents, and the termination of all Letters of Credit, (a) no Guarantor may assert, enforce, or otherwise exercise any Right of subrogation to any of the Rights or Liens of Administrative
Agent or Lenders or any other beneficiary against Borrower or any other obligor on the Guaranteed Debt or any collateral or other security or any Right of recourse, reimbursement, subrogation, contribution, indemnification, or similar Right against
Borrower or any other obligor on any Guaranteed Debt or any Guarantor of it, and (b) each Guarantor defers all of the foregoing Rights (whether they arise in equity, under contract, by statute, under common Law, or otherwise). Upon payment in full
of the Guaranteed Debt and the termination of the obligations of Lenders to extend credit under the Loan Documents, each Guarantor shall be subrogated to the rights of the Administrative Agent and Lenders against Borrower and the other obligors.

  

 Exhibit E-1 
 Page 3 
 Form of Subsidiary Guaranty 

 8. NO RELEASE. Each Guarantor agrees that its obligations under this Guaranty may not be released,
diminished, or affected by the occurrence of any one or more of the following events: (a) any taking or accepting of any additional guaranty or any other security or assurance for any Guaranteed Debt; (b) any release, surrender, exchange,
subordination, impairment, or loss of any collateral securing any Guaranteed Debt; (c) any full or partial release of the liability of any other obligor on the Obligations, except for any final release resulting from payment in full of such
Obligations; (d) the modification of, or waiver of compliance with, any terms of any other Loan Document; (e) the insolvency, bankruptcy, or lack of corporate or partnership power of any other obligor at any time liable for any Guaranteed Debt,
whether now existing or occurring in the future; (f) any renewal, extension, or rearrangement of any Guaranteed Debt or any adjustment, indulgence, forbearance, or compromise that may be granted or given by Administrative Agent or any Lender to any
other obligor on the Obligations; (g) any neglect, delay, omission, failure, or refusal of Administrative Agent or any Lender to take or prosecute any action in connection with the Guaranteed Debt or to foreclose, take, or prosecute any action in
connection with any Loan Document; (h) any failure of Administrative Agent or any Lender to notify any Guarantor of any renewal, extension, or assignment of any Guaranteed Debt, or the release of any security or of any other action taken or
refrained from being taken by Administrative Agent or any Lender against Borrower or any new agreement between Administrative Agent, any Lender, and Borrower; it being understood that neither Administrative Agent nor any Lender is required to
give any Guarantor any notice of any kind under any circumstances whatsoever with respect to or in connection with any Guaranteed Debt, other than any notice required to be given in this Guaranty; (i) the unenforceability of any Guaranteed
Debt against any other obligor or any security securing same because it exceeds the amount permitted by Law, the act of creating it is ultra vires, the officers creating it exceeded their authority or violated their fiduciary duties in
connection with it, or otherwise; (j) any payment of the Obligations to Administrative Agent or any Lender is held to constitute a preference under any Debtor Relief Law or for any other reason Administrative Agent or any Lender is required to
refund that payment or make payment to someone else (and in each such instance this Guaranty will be reinstated in an amount equal to that payment); or (k) any other circumstance which might otherwise constitute a defense available to, or a legal or
equitable discharge of, Borrower or any Guarantor. 
  
 9.
WAIVERS. By execution hereof, each Guarantor waives presentment and demand for payment, protest, notice of intention to accelerate, notice of acceleration, and notice of protest and nonpayment, and agrees that its liability with respect to the
Guaranteed Debt (or any part thereof) shall not be affected by any renewal or extension in the time of payment of the Obligations (or any part thereof). To the maximum extent lawful, each Guarantor waives all Rights by which it might be entitled to
require suit on an accrued Right of action in respect of any Guaranteed Debt or require suit against Borrower or others. 
  
 10. LOAN DOCUMENTS. By execution hereof, each Guarantor covenants and agrees that certain representations, warranties, terms, covenants, and
conditions set forth in the Loan Documents are applicable to Guarantors by their terms and shall be imposed upon Guarantors, and each Guarantor reaffirms that each such representation and warranty is true and correct and covenants and agrees to
promptly and properly perform, observe, and comply with each such term, covenant, or condition. Moreover, each Guarantor acknowledges and agrees that this Guaranty is subject to the offset provisions of the Loan Documents in favor of Administrative
Agent and Lenders. In the event the Credit Agreement or any other Loan Document shall cease to remain in effect for any reason whatsoever during any period when any part of the Guaranteed Debt remains unpaid, the terms, covenants, and agreements of
the Credit Agreement or such other Loan Document incorporated herein by reference shall nevertheless continue in full force and effect as obligations of Guarantors under this Guaranty. 
  

 Exhibit E-1 
 Page 4 
 Form of Subsidiary Guaranty 

 11. RELIANCE AND DUTY TO REMAIN INFORMED. Each Guarantor confirms that it has executed and
delivered this Guaranty after reviewing the terms and conditions of the Loan Documents and such other information as it has deemed appropriate in order to make its own credit analysis and decision to execute and deliver this Guaranty. Each Guarantor
confirms that it has made its own independent investigation with respect to Borrower’s creditworthiness and is not executing and delivering this Guaranty in reliance on any representation or warranty by Administrative Agent or any Lender as to
that creditworthiness. Each Guarantor expressly assumes all responsibilities to remain informed of the financial condition of Borrower and any circumstances affecting Borrower’s ability to perform under the Loan Documents to which it is a
party. 
  
 12. LOAN DOCUMENT. This Guaranty is a Loan
Document and is subject to the applicable provisions of Articles 1 and 10 of the Credit Agreement, including, without limitation, the provisions relating to GOVERNING LAW, AND WAIVER OF RIGHT TO JURY TRIAL, both of
which are incorporated into this Guaranty by reference the same as if set forth in this Guaranty verbatim. 
  
 13. NOTICES. All notices required or permitted under this Guaranty, if any, shall be given in the manner set forth in Section 10.02
of the Credit Agreement. 
  
 14. AMENDMENTS, ETC.
No amendment, waiver, or discharge to or under this Guaranty is valid unless it is in writing and is signed by the party against whom it is sought to be enforced and is otherwise in conformity with the requirements of Section
10.01 of the Credit Agreement. The unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other provision herein. 
  
 15. ADMINISTRATIVE AGENT AND LENDERS. Administrative Agent is Administrative Agent for each Lender under the Credit
Agreement. All Rights granted to Administrative Agent under or in connection with this Guaranty are for each Lender’s ratable benefit. Administrative Agent may, without the joinder of any Lender, exercise any Rights in Administrative
Agent’s or Lenders’ favor under or in connection with this Guaranty. Administrative Agent’s and each Lender’s Rights and obligations vis-a-vis each other may be subject to one or more separate agreements between those
parties. However, no Guarantor is required to inquire about any such agreement or is subject to any of its terms unless such Guarantor specifically joins such agreement. Therefore, neither Guarantor nor its successors or assigns is entitled
to any benefits or provisions of any such separate agreement or is entitled to rely upon or raise as a defense any party’s failure or refusal to comply with the provisions of such agreement. 
  
 16. ADDITIONAL GUARANTORS. Each Guarantor is aware that the MLP has
executed and delivered a Guaranty to the Administrative Agent on the date hereof. Also, from time to time subsequent to the time hereof, additional Persons may execute and deliver guaranties to the Administrative Agent. Each Guarantor hereunder
expressly agrees that its obligations arising hereunder shall not be affected or diminished by any such additional guaranties. Each Guarantor agrees that it shall not be necessary or required that the Administrative Agent or any Lender exercise any
right, assert any claim or demand or enforce any remedy whatsoever against any Borrower, the other Guarantors, or any other Person who has guaranteed the Guaranteed Debt before or as a condition to the obligations of any Guarantor hereunder.

  

 Exhibit E-1 
 Page 5 
 Form of Subsidiary Guaranty 

 17. PARTIES. This Guaranty benefits Administrative Agent, Lenders, and their respective successors
and assigns and binds Guarantors and their respective successors and assigns. Upon appointment of any successor Administrative Agent under the Credit Agreement, all of the Rights of Administrative Agent under this Guaranty automatically vest in that
new Administrative Agent as successor Administrative Agent on behalf of Lenders without any further act, deed, conveyance, or other formality other than that appointment. The Rights of Administrative Agent and Lenders under this Guaranty may
be transferred with any assignment of the Guaranteed Debt pursuant to and in accordance with the terms of the Credit Agreement. The Credit Agreement contains provisions governing assignments of the Guaranteed Debt and of Rights and obligations under
this Guaranty. 
  
 Remainder of Page Intentionally Blank.

 Signature Page(s) to Follow. 
  

 112 

 EXECUTED as of the date first stated in this Guaranty. 
  

			
	GUARANTORS:
	
	SUNOCO LOGISTICS PARTNERS OPERATIONS GP LLC, a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	SUNOCO PARTNERS MARKETING & TERMINALS L.P., a Texas limited partnership
		
	By:	 	SUNOCO LOGISTICS PARTNERS OPERATIONS GP LLC, a Delaware limited liability company, its General Partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	SUNOCO PIPELINE L.P., a Texas limited partnership
		
	 By:
	 	SUNOCO LOGISTICS PARTNERS OPERATIONS GP LLC, a Delaware limited liability company, its General Partner
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 Exhibit E-1 
 Page 6 
 Form of Subsidiary Guaranty 

 EXHIBIT E-2 
  
 FORM OF GUARANTY 
 (MLP) 
  
 THIS GUARANTY is executed as of November 22, 2004, by the undersigned
(“Guarantor”), for the benefit of CITIBANK, N.A., a national banking association (in its capacity as Administrative Agent for the benefit of Lenders). 
  
 RECITALS 
  
 A. Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (“Borrower”), Sunoco Logistics Partners L.P., a
Delaware limited partnership (the “MLP”), Citibank, N.A., as Administrative Agent (including its permitted successors and assigns in such capacity, “Administrative Agent”), and the Lenders now or
hereafter party to the Credit Agreement (including their respective permitted successors and assigns, “Lenders”) have entered into a Credit Agreement, dated as of November 22, 2004 (as amended, modified, supplemented, or
restated from time to time, the “Credit Agreement”); 
  
 B. Borrower is a Subsidiary of Guarantor, and therefore, Guarantor will derive direct and substantial benefits from the extensions of credit under the Credit Agreement; and 
  
 C. This Guaranty is integral to the transactions contemplated by the Loan
Documents and the execution and delivery hereof, is a condition precedent to Lenders’ obligations to extend credit under the Loan Documents. 
  
 ACCORDINGLY, for adequate and sufficient consideration, the receipt and adequacy of which are hereby acknowledged, the Guarantor guarantees to
Administrative Agent and Lenders the prompt payment when due, whether at stated maturity, by required payment, upon acceleration, demand or otherwise, of the Guaranteed Debt (defined below) as follows: 
  
 1. DEFINITIONS. Terms defined in the Credit Agreement have the same
meanings when used, unless otherwise defined, in this Guaranty. As used in this Guaranty: 
  
 Borrower means Borrower, Borrower as a debtor-in-possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for Borrower or for all or substantially all of Borrower’s assets under any Debtor Relief Law. 
  
 Credit Agreement is defined in the recitals to this Guaranty. 
  
 Guaranteed Debt means, collectively, (a) the Obligations and (b) all present and future costs, attorneys’
fees, and expenses reasonably incurred by Administrative Agent or any Lender to enforce Borrower’s, the Guarantor’s, or any other obligor’s payment of any of the Guaranteed Debt, including, without limitation (to the extent lawful),
all present and future amounts that would become due but for the operation of §§ 502 or 506 or any other provision of Title 11 of the United States Code and all present and future accrued and unpaid interest
(including, without limitation, all post-maturity interest and any post-petition interest in any proceeding under Debtor Relief Laws to which Borrower or the Guarantor becomes subject). 
  
 Guarantor is defined in the preamble to this Guaranty. 
  

 Exhibit E-1 
 Page 7 
 Form of Subsidiary Guaranty 

 Lender means, individually, or Lenders means, collectively, on any date of
determination, the Lenders and their permitted successors and assigns. 
  
 Subordinated Debt means, all present and future obligations of any Company to the Guarantor, whether those obligations are (a) direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several, or joint and
several, (b) due or to become due to the Guarantor, (c) held by or are to be held by the Guarantor, (d) created directly or acquired by assignment or otherwise, or (e) evidenced in writing. 
  
 2. GUARANTY. (a) This is an absolute, irrevocable, and continuing
guaranty of payment, not collection, and the circumstance that at any time or from time to time the Guaranteed Debt may be paid in full does not affect the obligation of the Guarantor with respect to the Guaranteed Debt incurred after that. This
Guaranty remains in effect until the Guaranteed Debt is fully paid and performed, all commitments to extend any credit under the Loan Documents have terminated and all Letters of Credit have terminated. The Guarantor may not rescind or revoke its
obligations with respect to the Guaranteed Debt. 
  
 (b) No Setoff
or Deductions; Taxes; Payments. Guarantor represents and warrants that it is organized and resident in the United States of America. Guarantor shall make all payments hereunder (i) without setoff or counterclaim, and (ii) free and clear of and
without deduction for any taxes, levies, imposts, duties, charges, fees, deductions, withholdings, restrictions or conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political subdivision thereof or taxing or
other authority therein unless Guarantor is compelled by law to make such deduction or withholding. If any such obligation (other than one arising with respect to taxes based on or measured by the income or profits of the Lender) is imposed upon
Guarantor with respect to any amount payable by it hereunder, Guarantor will pay to the Lender, on the date on which such amount is due and payable hereunder, such additional amount in Dollars as shall be necessary to enable the Lender to receive
the same net amount which the Lender would have received on such due date had no such obligation been imposed upon Guarantor. Guarantor will deliver promptly to the Lender certificates or other valid vouchers for all taxes or other charges deducted
from or paid with respect to payments made by Guarantor hereunder. The obligations of Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty. 
  
 (c) All payments made by Guarantor under this Guaranty shall be made to the
Administrative Agent at the Administrative Agent’s Office in Dollars. 
  
 3. CONSIDERATION. The Guarantor represents and warrants that its liability under this Guaranty will directly benefit it. 
  
 4. CUMULATIVE RIGHTS. If the Guarantor becomes liable for any indebtedness owing by Borrower to Administrative Agent
or any Lender, other than under this Guaranty, that liability may not be in any manner impaired or affected by this Guaranty. The Rights of Administrative Agent or Lenders under this Guaranty are cumulative of any and all other Rights that
Administrative Agent or Lenders may ever have against the Guarantor. The exercise by Administrative Agent or Lenders of any Right under this Guaranty or otherwise does not preclude the concurrent or subsequent exercise of any other Right.

  
 5. PAYMENT UPON DEMAND. (a) If an Event of Default
exists, the Guarantor shall, on demand and without further notice of dishonor and without any notice having been given to the Guarantor previous to that demand of either the acceptance by Administrative Agent or Lenders of this 

  

 Exhibit E-2 
 Page 2 
 Form of Guaranty (MLP) 

 
Guaranty or the creation or incurrence of any Guaranteed Debt, pay the amount of the Guaranteed Debt then due and payable to Administrative Agent and
Lenders; provided that, if an Event of Default exists and Administrative Agent or Lenders cannot, for any reason, accelerate the Obligations, then the Guaranteed Debt shall be, as among the Guarantor, Administrative Agent, and Lenders, a
fully matured, due, and payable obligation of the Guarantor to Administrative Agent and Lenders. 
  
 (b) The obligations of the Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations
and the obligations of any other guarantor, and it is not necessary for Administrative Agent or Lenders, in order to enforce this Guaranty against the Guarantor, first or contemporaneously to institute suit or exhaust remedies against Borrower or
others liable on any Guaranteed Debt. 
  
 6. SUBORDINATION.
The Subordinated Debt is expressly subordinated to the full and final payment of the Obligations. Upon the occurrence and during the continuation of a Default or an Event of Default, the Guarantor agrees not to accept any payment of any Subordinated
Debt from any Company. In the event of (i) any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment, composition or other similar proceeding relating to any Company, its creditors as such or its property, (ii) any
proceeding for the liquidation, dissolution or other winding-up of any Company, voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings, (iii) any assignment by any Company for the benefit of creditors, or (iv) any
other marshalling of the assets of a Company, the Obligations (including any interest thereon accruing at the legal rate after the commencement of any such proceedings and any additional interest that would have accrued thereon but for the
commencement of such proceedings) shall first be paid in full before any payment or distribution, whether in cash, securities or other property, shall be made to any holder of any Subordinated Debt. If the Guarantor receives any payment of any
Subordinated Debt in violation of the terms of this Section, such Guarantor shall hold that payment in trust for Administrative Agent and Lenders and promptly turn it over to Administrative Agent, in the form received (with any necessary
endorsements), to be applied to the Obligations. 
  
 7.
SUBROGATION AND CONTRIBUTION. Until payment in full of the Guaranteed Debt and the termination of the Obligations of Lenders to extend credit under the Loan Documents and the termination of all Letters of Credit, (a) the Guarantor may not
assert, enforce, or otherwise exercise any Right of subrogation to any of the Rights or Liens of Administrative Agent or Lenders or any other beneficiary against Borrower or any other obligor on the Guaranteed Debt or any collateral or other
security or any Right of recourse, reimbursement, subrogation, contribution, indemnification, or similar Right against Borrower or any other obligor on any Guaranteed Debt or any other guarantor of it, and (b) the Guarantor defers all of the
foregoing Rights (whether they arise in equity, under contract, by statute, under common Law, or otherwise). Upon payment in full of the Guaranteed Debt and the termination of the obligations of Lenders to extend credit under the Loan Documents, the
Guarantor shall be subrogated to the rights of the Administrative Agent and Lenders against Borrower and the other obligors. 
  
 8. NO RELEASE. The Guarantor agrees that its obligations under this Guaranty may not be released, diminished, or affected by the occurrence of any
one or more of the following events: (a) any taking or accepting of any additional guaranty or any other security or assurance for any Guaranteed Debt; (b) any release, surrender, exchange, subordination, impairment, or loss of any collateral
securing any Guaranteed Debt; (c) any full or partial release of the liability of any other obligor on the Obligations, except for any final release resulting from payment in full of such Obligations; (d) the modification of, or waiver of
compliance with, any terms of any other Loan Document; (e) the insolvency, bankruptcy, or lack of corporate or partnership power of any other obligor at any time liable for any Guaranteed Debt, 

  

 Exhibit E-2 
 Page 3 
 Form of Guaranty (MLP) 

 
whether now existing or occurring in the future; (f) any renewal, extension, or rearrangement of any Guaranteed Debt or any adjustment, indulgence,
forbearance, or compromise that may be granted or given by Administrative Agent or any Lender to any other obligor on the Obligations; (g) any neglect, delay, omission, failure, or refusal of Administrative Agent or any Lender to take or prosecute
any action in connection with the Guaranteed Debt or to foreclose, take, or prosecute any action in connection with any Loan Document; (h) any failure of Administrative Agent or any Lender to notify the Guarantor of any renewal, extension, or
assignment of any Guaranteed Debt, or the release of any security or of any other action taken or refrained from being taken by Administrative Agent or any Lender against Borrower or any new agreement between Administrative Agent, any Lender, and
Borrower; it being understood that neither Administrative Agent nor any Lender is required to give the Guarantor any notice of any kind under any circumstances whatsoever with respect to or in connection with any Guaranteed Debt, other
than any notice required to be given in this Guaranty; (i) the unenforceability of any Guaranteed Debt against any other obligor or any security securing same because it exceeds the amount permitted by Law, the act of creating it is ultra
vires, the officers creating it exceeded their authority or violated their fiduciary duties in connection with it, or otherwise; (j) any payment of the Obligations to Administrative Agent or any Lender is held to constitute a preference under
any Debtor Relief Law or for any other reason Administrative Agent or any Lender is required to refund that payment or make payment to someone else (and in each such instance this Guaranty will be reinstated in an amount equal to that payment); or
(k) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, Borrower or the Guarantor. 
  
 9. WAIVERS. By execution hereof, the Guarantor waives presentment and demand for payment, protest, notice of intention to accelerate, notice of
acceleration, and notice of protest and nonpayment, and agrees that its liability with respect to the Guaranteed Debt (or any part thereof) shall not be affected by any renewal or extension in the time of payment of the Obligations (or any part
thereof). To the maximum extent lawful, the Guarantor waives all Rights by which it might be entitled to require suit on an accrued Right of action in respect of any Guaranteed Debt or require suit against Borrower or others. 
  
 10. LOAN DOCUMENTS. By execution hereof, the Guarantor covenants and
agrees that certain representations, warranties, terms, covenants, and conditions set forth in the Loan Documents are applicable to the Guarantor by their terms and shall be imposed upon the Guarantor, and the Guarantor reaffirms that each such
representation and warranty is true and correct and covenants and agrees to promptly and properly perform, observe, and comply with each such term, covenant, or condition. Moreover, the Guarantor acknowledges and agrees that this Guaranty is subject
to the offset provisions of the Loan Documents in favor of Administrative Agent and Lenders. In the event the Credit Agreement or any other Loan Document shall cease to remain in effect for any reason whatsoever during any period when any part of
the Guaranteed Debt remains unpaid, the terms, covenants, and agreements of the Credit Agreement or such other Loan Document incorporated herein by reference shall nevertheless continue in full force and effect as obligations of the Guarantor under
this Guaranty. 
  
 11. RELIANCE AND DUTY TO REMAIN
INFORMED. The Guarantor confirms that it has executed and delivered this Guaranty after reviewing the terms and conditions of the Loan Documents and such other information as it has deemed appropriate in order to make its own credit analysis and
decision to execute and deliver this Guaranty. The Guarantor confirms that it has made its own independent investigation with respect to Borrower’s creditworthiness and is not executing and delivering this Guaranty in reliance on any
representation or warranty by Administrative Agent or any Lender as to that creditworthiness. The Guarantor expressly assumes all responsibilities to remain informed of the financial condition of Borrower and any circumstances affecting
Borrower’s ability to perform under the Loan Documents to which it is a party. 
  

 Exhibit E-2 
 Page 4 
 Form of Guaranty (MLP) 

 12. LOAN DOCUMENT. This Guaranty is a Loan Document and is subject to the applicable provisions of
Articles 1 and 10 of the Credit Agreement, including, without limitation, the provisions relating to GOVERNING LAW, AND WAIVER OF RIGHT TO JURY TRIAL, both of which are incorporated into this Guaranty by reference
the same as if set forth in this Guaranty verbatim. 
  
 13.
NOTICES. All notices required or permitted under this Guaranty, if any, shall be given in the manner set forth in Section 10.02 of the Credit Agreement. 
  
 14. AMENDMENTS, ETC. No amendment, waiver, or discharge to or under this Guaranty is valid unless it is in
writing and is signed by the party against whom it is sought to be enforced and is otherwise in conformity with the requirements of Section 10.01 of the Credit Agreement. The unenforceability or invalidity of any provision of this
Guaranty shall not affect the enforceability or validity of any other provision herein. 
  
 15. ADMINISTRATIVE AGENT AND LENDERS. Administrative Agent is Administrative Agent for each Lender under the Credit Agreement. All Rights granted to Administrative Agent under or in connection with this
Guaranty are for each Lender’s ratable benefit. Administrative Agent may, without the joinder of any Lender, exercise any Rights in Administrative Agent’s or Lenders’ favor under or in connection with this Guaranty. Administrative
Agent’s and each Lender’s Rights and obligations vis-a-vis each other may be subject to one or more separate agreements between those parties. However, the Guarantor is not required to inquire about any such agreement nor is it
subject to any of its terms unless the Guarantor specifically joins such agreement. Therefore, neither Guarantor nor its successors or assigns is entitled to any benefits or provisions of any such separate agreement or is entitled to rely
upon or raise as a defense any party’s failure or refusal to comply with the provisions of such agreement. 
  
 16. ADDITIONAL GUARANTORS. The Guarantor is aware that certain Subsidiaries of the Borrower have executed and delivered guaranties to the
Administrative Agent on the date hereof. Furthermore, from time to time subsequent to the time hereof, additional Persons may execute and deliver guaranties to the Administrative Agent. The Guarantor hereunder expressly agrees that its obligations
arising hereunder shall not be affected or diminished by any such additional guaranties. The Guarantor agrees that it shall not be necessary or required that the Administrative Agent or any Lender exercise any right, assert any claim or demand or
enforce any remedy whatsoever against the Borrower or any other Person who has guaranteed the Guaranteed Debt before or as a condition to the obligations of the Guarantor hereunder. 
  
 17. PARTIES. This Guaranty benefits Administrative Agent, Lenders, and their respective successors and assigns and
binds the Guarantor and their respective successors and assigns. Upon appointment of any successor Administrative Agent under the Credit Agreement, all of the Rights of Administrative Agent under this Guaranty automatically vest in that new
Administrative Agent as successor Administrative Agent on behalf of Lenders without any further act, deed, conveyance, or other formality other than that appointment. The Rights of Administrative Agent and Lenders under this Guaranty may be
transferred with any assignment of the Guaranteed Debt pursuant to and in accordance with the terms of the Credit Agreement. The Credit Agreement contains provisions governing assignments of the Guaranteed Debt and of Rights and obligations under
this Guaranty. 
  
 Remainder of Page Intentionally Blank.

 Signature Page(s) to Follow. 
  

 Exhibit E-2 
 Page 5 
 Form of Guaranty (MLP) 

 EXECUTED as of the date first stated in this Guaranty. 
  

			
	GUARANTOR:
	
	SUNOCO LOGISTICS PARTNERS L.P., a Delaware limited partnership
		
	 By:
	 	Sunoco Partners LLC, a Pennsylvania limited liability company, its General Partner
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 Exhibit E-2 
 Page 6 
 Form of Guaranty (MLP) 

 EXHIBIT F-1 
  
 FORM OF OPINION OF COUNSEL 
  
 November 22, 2004 
  
 To each of the Lenders parties to the Credit 
 Agreement referred to below,
and 
 Citibank, N.A., as 
 Administrative Agent for the Lenders

  
 Re: $250,000,000 Credit Agreement 
  
 Ladies and Gentlemen: 
  
 We have acted as counsel to (i) Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (the
“Borrower”), (ii) Sunoco Logistics Partners GP LLC, a Delaware limited liability company (the “Borrower’s GP”), (iii) Sunoco Logistics Partners L.P., a Delaware limited partnership (the
“MLP”), Sunoco Partners Marketing & Terminals L.P., a Texas limited partnership (“Sunoco Partners M&T”), Sunoco Pipeline L.P., a Texas limited partnership (“Sunoco Partners
Pipeline”, and together with Sunoco Partners M&T, the “Borrower’s Subsidiaries”), and Sunoco Logistics Partners Operations GP LLC, a Delaware limited liability company (the “Borrower’s
Subsidiaries’ GP,” and together with the MLP and the Borrower’s Subsidiaries, the “Guarantors”) and (iv) Sunoco Partners LLC, a Pennsylvania limited liability company (the “MLP’s
GP,” and together with the Borrower, the Borrower’s GP, the MLP, the Borrower’s Subsidiaries and the Borrower’s Subsidiaries’ GP, the “Transaction Parties”) in connection with the Credit
Agreement dated as of November 22, 2004, by and among the Borrower, the MLP, the Lenders party thereto, Citibank, N.A., as Administrative Agent for the Lenders, and the other agents and lenders therein named (the “Credit
Agreement”). Unless defined in this opinion, capitalized terms are used herein as defined in the Credit Agreement. This opinion is furnished to you at the request of the Borrower pursuant to Section 4.01(a)(viii) of the
Credit Agreement. 
  
 In so acting, we have examined executed
originals or counterparts of the following documents, each dated the date hereof (the “Loan Documents”): 
  
 (a) the Credit Agreement; 
  
 (b) any Notes executed on the date hereof; and 
  

(c) the Guaranties. 
  
 We have also examined, and relied upon the accuracy of factual matters contained in, originals or copies, certified or otherwise identified to our
satisfaction, of such partnership and limited liability company records and certificates or comparable documents of public officials and of officers, partners and representatives of the Transaction Parties, and have made such examinations of law, as
we have deemed necessary in connection with the opinions set forth below. We have made no independent factual investigation other than as described above, and as to other factual matters, we have relied exclusively on the facts stated in the
representations and warranties contained in the Loan Documents and the Exhibits and Schedules to the Loan Documents (other than representations and warranties constituting conclusions of law on matters on which we opine). We have not examined any
records of any court, administrative tribunal or other similar entity in connection with our opinion. 
  

 Exhibit F-1 
 Page 1 
 Form of Subsidiary Guaranty 

 When an opinion or confirmation is given to our knowledge or to the best of our knowledge or with
reference to matters of which we are aware or which are known to us, or with another similar qualification, the relevant knowledge or awareness is limited to the actual contemporaneous knowledge or awareness of facts, without investigation, by the
lawyer who is the current primary contact for the Borrower and the individual lawyers in this firm who have participated in the specific transaction to which this opinion relates. 
  
 We have assumed the legal capacity and competence of natural persons, the genuineness of all signatures, the authenticity of
all documents submitted to us as originals and the conformity to original documents of documents submitted to us as certified, conformed, photostatic, electronic or facsimile copies. We have also assumed, without verification, (i) the
Borrower’s Subsidiaries are duly formed and validly existing under the laws of the State of Texas, (ii) that the parties to the Loan Documents and the other agreements, instruments and documents executed in connection therewith, other than the
Borrower, the Borrower’s GP, the MLP, the Borrower’s Subsidiaries’ GP and the MLP’s GP, have the power (including, without limitation, corporate and partnership power where applicable) and authority to enter into and perform the
Loan Documents and such other agreements, instruments and documents, (iii) the due authorization, execution and delivery by such parties other than the Borrower, the Borrower’s GP, the MLP, the Borrower’s Subsidiaries’ GP and the
MLP’s GP, of each Loan Document and such other agreements, instruments and documents, and (iv) that the Loan Documents and such other agreements, instruments and documents constitute legal, valid and binding obligations of each such party other
than the Transaction Parties, enforceable against each such other party in accordance with their respective terms. 
  
 Based upon the foregoing and subject to the assumptions, exceptions, limitations and qualifications set forth herein, we are of the opinion that:

  
 1. The Borrower is a limited partnership duly formed, validly
existing and in good standing under the laws of the State of Delaware; the Borrower’s GP is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware; the MLP’s GP is a limited
liability company duly formed and validly subsisting under the laws of the Commonwealth of Pennsylvania; the MLP is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware; and the
Borrower’s Subsidiaries’ GP is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware. 
  

2. Each of the Borrower, the Borrower’s GP, the MLP’s GP, the MLP and the Borrower’s Subsidiaries’ GP has the partnership or
limited liability company power to own and lease its property and to conduct the business in which it is currently engaged as described in the 2003 Annual Report of the MLP. 
  
 3. Each of the Borrower, the MLP and the Borrower’s Subsidiaries’ GP has the partnership or limited liability
company power to enter into and perform its obligations under the Loan Documents to which it is a party and to incur the obligations provided therein, and has taken all partnership or limited liability company action necessary to authorize the
execution, delivery and performance of such Loan Documents. 
  
 4.
The execution and delivery by each of the Borrower, the Borrower’s GP, the MLP’s GP, the MLP and the Borrower’s Subsidiaries’ GP of the Loan Documents to which it is a party, on its own behalf or in the case of the
Borrower’s GP and the MLP’s GP as a partner, do not and the performance of the obligations thereunder will not violate such party’s Organization Documents. The execution and 

  

 Exhibit F-1 
 Page 2 
 Form of Opinion of Counsel 

 
delivery by each of the Transaction Parties will not violate any present statute, rule or regulation promulgated by the United States or the State of New
York which in our experience is normally applicable both to entities that are not engaged in regulated business activities and to transactions of the type contemplated by the Loan Documents or the Limited Partnership Law of the State of Delaware in
the case of the Borrower or the MLP or the Limited Liability Company Act of the State of Delaware in the case of the Borrower’s GP or the Borrower’s Subsidiaries’ GP or the Limited Liability Company Act of the Commonwealth of
Pennsylvania in the case of the MLP’s GP (the “Applicable Law”). 
  
 5. Each Loan Document to which the Borrower, the MLP or the Borrower’s Subsidiaries’ GP is a party has been duly executed and delivered on behalf of the Borrower, the MLP or the Borrower’s
Subsidiaries’ GP. Each Loan Document to which the Borrower or the Guarantors are a party constitutes the legal, valid and binding obligation of the Borrower or the Guarantors, as the case may be, enforceable in accordance with its respective
terms. 
  
 6. No authorization, approval or other action by, and
no notice to or filing with, any governmental authority or regulatory body is required under Applicable Law for the due execution, delivery and performance by any Transaction Party of the Credit Documents to which it is a party or the consummation
of the transactions contemplated by the Credit Documents, except, in the case of such performance, for such authorizations, approvals, actions, notices and filings which have been made or obtained. 
  
 7. No Transaction Party is required to register as an “investment
company” under the Investment Company Act of 1940, as amended. 
  
 8. No Transaction Party is a “holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary company” of a
“holding company,” or a “public utility” within the meaning of the Public Utility Holding Company Act of 1935, as amended. 
  
 The foregoing opinions are subject to the following exceptions, limitations and qualifications: 
  
 a. Our opinion is subject to the effect of applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, fraudulent transfer, marshalling or similar laws affecting creditors’ rights and remedies generally; general principles of equity, including without limitation, concepts of
materiality, reasonableness, good faith and fair dealing (regardless of whether such enforceability is considered in a proceeding in equity or at law); and limitations on enforceability of rights to indemnification or contribution by federal or
state securities laws or regulations or by public policy. 
  
 b.
We express no opinion as to the application or requirements of federal or state securities (except with respect to the opinion in paragraph 7), patent, trademark, copyright, antitrust and unfair competition, pension or employee benefit, labor,
environmental, health and safety or tax laws or state or federal laws and regulations regarding the regulation of utilities in respect of the transactions contemplated by or referred to in the Loan Documents. 
  
 c. We express no opinion with respect to the legality, validity, binding
nature or enforceability of any of the following provisions found in the Credit Documents: (i) provisions relating to waivers, precluding a party from asserting certain claims or defenses or from obtaining or exercising certain rights, releases and
remedies, or excusing a party from damages, liability or obligations to the extent such provisions may violate public policy or otherwise violate applicable law; (ii) provisions relating to subrogation rights, delay or omission of enforcement of
rights or remedies, severability or set 

  

 Exhibit F-1 
 Page 3 
 Form of Opinion of Counsel 

 
offs that violate applicable law; (iii) provisions obligating a party to submit to the jurisdiction or venue of any court; (iv) provisions purporting to
establish evidentiary standards for suits or proceedings to enforce the Credit Documents; (v) provisions that decisions by a party are conclusive; (vi) provisions purporting to effect the automatic service of process on any person; and (vii)
provisions purporting to indemnify or exculpate the Administrative Agent or the Lenders from the consequences of their own negligence, willful misconduct or strict liability. 
  
 d. With respect to our opinion set forth in paragraph 1 above as to the valid existence and good standing of the Borrower,
the Borrower’s GP, the MLP, the MLP’s GP and the Borrowers’ Subsidiaries’ GP, we have relied solely on certificates dated November     , 2004, of the Secretary of State of the State of Delaware, and the
certificate dated November     , 2004, of the Commonwealth of Pennsylvania and, with respect to the period from that date to the date of this opinion letter, a certificate of an officer of the Borrower. 
  
 We express no opinion as to the law of any jurisdiction other than the
federal law of the United States and the law of the State of New York and the Limited Partnership Law of the State of Delaware in the case of the Borrower and the MLP, the Limited Liability Company Act of the State of Delaware in the case of the
Borrower’s GP and the Borrower’s Subsidiaries’ GP and the Limited Liability Company Act of the Commonwealth of Pennsylvania in the case of the MLP’s GP. 
  
 A copy of this opinion may be delivered by you to each Eligible Assignee and such persons may rely on this opinion to the
same extent as – but to no greater extent than – the addressee. This opinion may be relied upon by you and such persons to whom you may deliver copies as provided in the preceding sentence only in connection with the consummation of the
transactions described herein and may not be used or relied upon by you or any other person for any other purpose, without in each instance our prior written consent. 
  
 This opinion is limited to the matters expressly stated herein. No implied opinion may be inferred to extend this opinion
beyond the matters expressly stated herein. We do not undertake to advise you or anyone else of any changes in the opinions expressed herein resulting from changes in law, changes in facts or any other matters that hereafter might occur or be
brought to our attention. 
  
 Very truly yours, 
  
  

 Exhibit F-1 
 Page 4 
 Form of Opinion of Counsel 

 EXHIBIT F-2 
  
 FORM OF OPINION OF INTERNAL COUNSEL 
  
 November 22, 2004 
  
 To each of the Lenders parties to the Credit 
 Agreement referred to below,
and 
 Citibank, N.A., as 
 Administrative Agent for the Lenders

  
 Ladies and Gentlemen: 
  
 I have acted as counsel to (i) Sunoco Logistics Partners Operations L.P., a
Delaware limited partnership (the “Borrower”), (ii) Sunoco Logistics Partners GP LLC, a Delaware limited liability company (the “Borrower’s GP”), (iii) Sunoco Logistics Partners L.P., a Delaware
limited partnership (the “MLP”), Sunoco Partners Marketing & Terminals L.P., a Texas limited partnership (“Sunoco Partners M&T”), Sunoco Pipeline L.P., a Texas limited partnership
(“Sunoco Partners Pipeline”, and together with Sunoco Partners M&T, the “Borrower’s Subsidiaries”), and Sunoco Logistics Partners Operations GP LLC, a Delaware limited liability company (the
“Borrower’s Subsidiaries’ GP”, and together with the MLP the Borrower’s Subsidiaries, the “Guarantors”) and (iv) Sunoco Partners LLC, a Pennsylvania limited liability company (the
“MLP’s GP”) in connection with the Credit Agreement dated as of November 22, 2004, by and among the Borrower, the MLP, the Lenders party thereto, Citibank, N.A., as Administrative Agent for the Lenders, and the
other agents and lenders therein named (the “Credit Agreement”). 
  
 In connection with the opinions expressed herein, I, or attorneys reporting to me, have examined copies of the following documents: 
  

	 	(a)	the Credit Agreement, including all exhibits, schedules, and attachments thereto, and any Notes issued pursuant thereto (the “Notes”);

  

	 	(b)	the Guaranties dated as of even date with the Credit Agreement executed by each of the Guarantors (the “Guaranties”); 

  

	 	(c)	the Organization Documents of the Borrower, the MLP, the Borrower’s GP, the Borrower’s Subsidiaries, the Borrower’s Subsidiaries’ GP, and the MLP’s GP
(collectively, the “Transaction Parties”)and all amendments thereto; and 

  

	 	(d)	the Material Agreements. 

  
 Those documents identified in items (a) and (b) above are collectively referred to herein as the “Credit Documents.” 

 
 In connection with this opinion, I or other attorneys acting under my
supervision have (i) investigated such questions of law, (ii) examined such partnership and company documents and records of the Transaction Parties and certificates of public officials, and (iii) received such information from partners, officers
and representatives of the Transaction Parties and made such investigations as I or other attorneys under my supervision have deemed necessary or appropriate for the purposes of this opinion. I have not, nor have other attorneys under my
supervision, conducted independent investigations 

  

 Exhibit F-2 
 Page 1 
 Form of Opinion of Internal Counsel 

 
or inquiries to determine the existence of matters, actions, proceedings, items, documents, facts, judgments, decrees, franchises, certificates, permits, or
the like and have made no independent search of the records of any court, arbitrator, or governmental authority affecting any Person, and no inference as to my knowledge thereof shall be drawn from the fact of my representation of any party or
otherwise. 
  
 In rendering the opinions herein, I have assumed
without independent verification (i) the genuineness of all signatures, (ii) the capacity of all natural persons, and (iii) the authenticity of all documents submitted to me as originals and the conformity with the authentic originals of all
documents submitted to me as copies. 
  
 Based upon and subject to
the foregoing and the other qualifications, limitations, and assumptions set forth below and upon such other matters as I have deemed appropriate, I am of the opinion that: 
  

	 	1.	The execution, delivery, and performance by the Transaction Parties of the Credit Documents to which each is a party and the consummation of the transactions contemplated by the
Credit Documents will not breach or result in a default under any Material Agreement or result in or require the creation or imposition of any Lien prohibited by the Credit Documents. 

  

	 	2.	To my knowledge there are no pending or overtly threatened actions or proceedings against the Transaction Parties before any court, governmental agency, or arbitrator that purport
to affect the legality, validity, binding effect, or enforceability of the Credit Documents, or which seeks in excess of one million dollars, except to the extent the Transaction Parties are indemnified by Sunoco, Inc. 

  
 The opinions expressed in this letter are subject to the following additional
qualifications and limitations: 
  

	 	1.	Qualification of any statement or opinion herein by the use of the words “to my knowledge” means that during the course of the representation in connection with the
transactions contemplated by the Credit Agreement, no information has come to my attention that would give me current knowledge of the existence of facts or matters so qualified. I have not undertaken any investigation to determine the existence of
facts, and no inference as to my knowledge thereof shall be drawn from the fact of the representation by me of any party or otherwise. 

  

	 	2.	This opinion letter is limited to the matters stated herein, and no opinions may be implied or inferred beyond the matters expressly stated herein 

  

	 	3.	The opinion expressed herein is as of the date hereof, and I assume no obligation to update or supplement such opinion to reflect any facts or circumstances that may hereafter come
to my attention or any changes in law that may hereafter occur. 

  

 Exhibit F-2 
 Page 2 
 Form of Opinion of Internal Counsel 

	 	4.	This opinion is being furnished only to the addressees named above, and has been rendered solely for your benefit in connection with the Credit Agreement and the transactions
contemplated thereby and may not be used, circulated, quoted, relied upon or otherwise referred to for any other purpose without our prior written consent; provided, however, that any Person that becomes a Lender or successor
Administrative Agent pursuant to the terms of the Credit Agreement may rely on this opinion as if it were addressed to such Person and delivered on the date hereof. 

  
 Very truly yours, 
  

 Exhibit F-2 
 Page 3 
 Form of Opinion of Internal Counsel 

 EXHIBIT F-3 
  
 FORM OF OPINION OF 
 SPECIAL TEXAS COUNSEL

  
 November 22, 2004 
  
 To each of the Lenders parties to the Credit 
 Agreement referred to below, and 
 Citibank, N.A., as 
 Administrative Agent for the Lenders 
  
 Ladies and Gentlemen: 
  
 We have acted as special counsel to Sunoco Partners Marketing & Terminals L.P., a Texas limited partnership (“Sunoco Partners
M&T”), and Sunoco Pipeline L.P., a Texas limited partnership (“Sunoco Partners Pipeline,” and together with Sunoco Partners M&T, the “Texas Subsidiaries”), in connection with the
Subsidiary Guaranty dated as of November 22, 2004, by the Texas Subsidiaries for the benefit of Citibank, N.A., as Administrative Agent for the Lenders (the “Subsidiary Guaranty”). 
  
 This opinion is furnished to you at the request of the Borrower pursuant to
Section 4.01(a)(viii) of the Credit Agreement dated as of November 22, 2004, by and among Sunoco Logistics Partners Operations L.P., a Delaware limited partnership (the “Borrower”), Sunoco Logistics Partners L.P., a Delaware
limited partnership, the Lenders party thereto, Citibank, N.A., as Administrative Agent for the Lenders, and the other agents and lenders therein named (the “Credit Agreement”). Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
  
 In rendering the opinions expressed below, we have examined originals or copies, certified or otherwise identified to our satisfaction, of the following:

  

	 	(a)	the Credit Agreement; 

  

	 	(b)	the Subsidiary Guaranty; 

  

	 	(c)	the Organization Documents of the Texas Subsidiaries; 

  

	 	(d)	Certificates of the Secretary of State of Texas dated November     , 2004, attesting to the continued existence and good standing of the Texas
Subsidiaries in Texas; and 

  

	 	(e)	copies of such corporate documents and records of the Texas Subsidiaries, certificates of officers and representatives of the Texas Subsidiaries and such other agreements,
documents, instruments and certificates of public officials and other Persons as we have deemed necessary or appropriate for the purposes of rendering the opinions expressed below. 

  
 The Credit Agreement and the Subsidiary Guaranty are referred to collectively
herein as the “Loan Documents.” 
  

 Exhibit F-3 
 Page 1 
 Form of Opinion of Special Texas Counsel 

 In rendering the opinions expressed below, we have assumed, with your permission, without independent
investigation or inquiry: (a) the due authorization, execution and delivery of the Loan Documents by all parties to such documents (other than the Texas Subsidiaries) and that the Loan Documents are valid, binding and enforceable against the parties
thereto (other than the Texas Subsidiaries); (b) the legal capacity of natural persons; (c) the genuineness of all signatures on all documents that we examined; (d) the authenticity of all documents submitted to us as originals; (e) the conformity
to authentic originals of all documents submitted to us as certified, conformed or photostatic copies; and (f) that each certificate from a public official reviewed by us is accurate, complete and authentic. 
  
 As to matters of fact material to the opinions expressed below, we have
relied without investigation or verification upon the representations and warranties of the Borrower and the Guarantors made in the Loan Documents and on such corporate records and certificates from officers and representatives of the Texas
Subsidiaries and from public officials as we have deemed necessary and appropriate for these opinions. 
  
 Based on the foregoing, and subject to the qualifications and limitations set forth below, we are of the opinion that: 
  

	 	1.	Each of the Texas Subsidiaries is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Texas. 

  

	 	2.	Each Texas Subsidiary has the requisite partnership power and authority to own and lease its property and to conduct the business in which it is currently engaged. The
execution, delivery and performance by each Texas Subsidiary of the Subsidiary Guaranty and the consummation of the transactions contemplated by the Subsidiary Guaranty: (a) are within its partnership powers; and (b) will not violate (i) its
Organization Documents or (ii) any Applicable Laws. 

  

	 	3.	The Subsidiary Guaranty has been duly authorized, executed and delivered to the Administrative Agent by each of the Texas Subsidiaries. 

  

	 	4.	No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and
performance of the Subsidiary Guaranty by either Texas Subsidiary or the consummation by either Texas Subsidiary of the transactions contemplated by the Subsidiary Guaranty, except for such authorizations, approvals, actions, notices and filings
that have been made or obtained. 

  
 The opinions
expressed above are subject in all respects to the following qualifications and exceptions: 
  

	 	(A)	With respect to our opinion set forth in paragraph 1 above as to the valid existence and good standing of the Texas Subsidiaries, we have relied solely on certificates dated
November 17, 2004 and November 18, 2004 of the Secretary of State of the State of Texas and the Texas Comptroller of Public Accounts, respectively, and, with respect to the period from that date to the date hereof, a certificate of an officer of the
general partner of each Texas Subsidiary. 

  

 Exhibit F-3 
 Page 2 
 Form of Opinion of Special Texas Counsel 

	 	(B)	We express no opinion as to the laws of any jurisdiction other than Applicable Laws. 

  
 “Applicable Laws” means those laws, rules and regulations of the State of Texas and the United States of
America and the rules and regulations adopted thereunder, which, in our experience, are normally applicable to transactions of the type contemplated by the Subsidiary Guaranty. However, the term “Applicable Laws” does not include, and we
express no opinion with regard to any: (1) state or federal laws, rules or regulations relating to (a) pollution or protection of the environment, (b) zoning, land use, building or construction, (c) occupational, safety and health or other similar
matters or (d) labor, employee rights and benefits, including the Employment Retirement Income Security Act of 1974, as amended; (2) state or federal laws and regulations regarding the regulation of utilities, the Public Utility Holding Company Act
of 1935, as amended, and the Public Utility Regulatory Policy Act of 1978, as amended; (3) antitrust and trade regulation laws; (4) tax laws, rules or regulations; (5) copyright, patent and trademark laws, rules or regulations; (6) state or federal
securities laws and the Investment Company Act of 1940, as amended; (7) laws, rules or regulations relating to or promulgated by the Federal Energy Regulatory Commission; and (8) any laws, rules or regulations of any county, municipality or similar
political subdivision, or any agency or instrumentality thereof. 
  

	 	(C)	We express no opinion as to the validity, binding nature or enforceability of any Loan Document or any other document referred to herein. 

  

	 	(D)	This opinion letter is limited to the matters stated herein, and no opinions may be implied or inferred beyond the matters expressly stated herein. 

  

	 	(E)	The opinions expressed herein are as of the date hereof, and we assume no (and hereby disclaim any) obligation to update or supplement such opinions to reflect any facts or
circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. 

  

	 	(F)	This opinion is being furnished only to the addressees named above, and has been rendered solely for your benefit in connection with the Subsidiary Guaranty and the transactions
contemplated thereby and may not be used, circulated, quoted, relied upon or otherwise referred to for any other purpose or filed with any governmental agency without our prior written consent; provided, however, that any Person that
becomes a Lender or successor Administrative Agent pursuant to the terms of the Credit Agreement may rely on this opinion as if it were addressed to such Person and delivered on the date hereof. 

  
 Very truly yours, 
  

 Exhibit F-3 
 Page 1 
 Form of Opinion of Special Texas Counsel

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