Document:

Exhibit 10.2

ARI Network Services 2000 

Employee Stock Purchase Plan

Amended effective January 7, 2014

1.

Purpose.  The purpose of the Plan is to provide eligible employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions.  It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code.  The provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

2.

Definitions.

(a)

“Board” shall mean the Board of Directors of the Company.

(b)

“Change of Control” shall mean the first to occur of the following:

(i)  the acquisition by an individual, entity or group, acting individually or in concert (a “Person”) of beneficial ownership of more than 50% of the then outstanding shares of common stock of the Company (the “Outstanding Common Stock”); provided, however, that for purposes of this Subsection 2(b)(i), the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company; (B) any acquisition by the Company; (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (A), (B) and (C) of Subsection 2(b)(ii) below; or

(ii)  consummation of a reorganization, merger or consolidation, share exchange, or sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), in each case, unless, immediately following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Common Stock immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Common Stock, (B) no Person (excluding any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, more than 50% of, respectively, the then outstanding common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the Board of the corporation resulting from such Business Combination were members of the Board of the Company at the time of the execution of the initial agreement providing for such Business Combination; or

(iii)  approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

(c)

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

(d)

“Committee” shall mean the Compensation Committee of the Board or such other persons or committee as the Board shall designate to administer the Plan.

(e)

“Common Stock” shall mean the $.001 par value common stock of the Company.

(f)

“Company” shall mean ARI Network Services, Inc., a Wisconsin corporation.

(g)

“Designated Subsidiary” shall mean a corporation of which not less than 50% of the voting power is held by the Company, directly or indirectly, whether such corporation now exists or is hereafter organized or acquired by the Company, directly or indirectly, other than an otherwise eligible corporation which has been designated by the Board or Committee from time to time as not eligible to participate in the Plan.

(h)

“Employee” shall mean any regular full time or part-time employee of the Company or a Designated Subsidiary customarily employed to work at least (a) 20 hours per week or (b) five months in any calendar year.

(i)

“Employer Corporation” shall mean the corporation which employs the Employee.

(j)

“Enrollment Date” shall mean the first day of each Offering Period.

(k)

“Enrollment Period” shall mean the period specified by the Committee during which eligible Employees may elect to participate in the Plan for the upcoming Offering Period.

(l)

“Exercise Date” shall mean the last day of each Offering Period.

(m)

“Fair Market Value” shall mean: 

(i)   For Offering Periods commencing on or after January 1, 2012, the closing price of the Common Stock on the NASDAQ Over-The-Counter Bulletin Board (or if the Common Stock is not then traded on the Over-The-Counter Bulletin Board, the closing price on such other exchange or inter-dealer quotation system on which the Common Stock is listed) as reported in any commonly-accepted electronic medium or other authoritative source on the indicated date.  If no sales of Common Stock were made on said bulletin board (or other exchange or inter-dealer quotation system) on that date, “Fair Market Value” shall mean the closing price of Common Stock as reported for the most recent preceding day on which sales of Common Stock were made on said bulletin board (or other exchange or inter-dealer quotation system), or, failing any such sales within two (2) weeks prior to the indicated date, such other market price as the Board or the Committee may determine in conformity with pertinent law and regulations of the Code and Treasury Department.

(ii)  For the 2011 Offering Period (i.e., January 1, 2011 through December 31, 2011), the average of the closing bid and asked prices of the Common Stock on the NASDAQ Over-The-Counter Bulletin Board (or if the Common Stock is not then traded on the Over-The-Counter Bulletin Board, the average of the closing bid and asked prices on such other exchange or inter-dealer quotation system on which the Common Stock is listed) as reported in any commonly-accepted electronic medium or other authoritative source on the indicated date.  If no sales of Common Stock were made on said bulletin board (or other exchange or inter-dealer quotation system) on that date, “Fair Market Value” shall mean the average closing bid and asked prices of Common Stock as reported for the most recent preceding day on which sales of Common Stock were made on said bulletin board (or other exchange or inter-dealer quotation system), or, failing any such sales within two (2) weeks prior to the indicated date, such other market price as the Board or the Committee may determine in conformity with pertinent law and regulations of the Code and Treasury Department.

(n)

“Offering Period” shall mean a period of approximately twelve (12) months at the end of which an option granted pursuant to the Plan may be exercised, commencing on January 1 and ending on December 31.  The duration of Offering Periods may be changed pursuant to Section 4 of this Plan.

(o)

“Parent Corporation” shall have the same meaning as contained in Section 424(e) of the Code.

(p)

“Plan” shall mean this ARI Network Services, Inc. 2000 Employee Stock Purchase Plan.

(q)

“Purchase Price” shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower.

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(r)

“Subsidiary Corporation” shall have the same meaning as contained in Section 424(f) of the Code.

3.

Eligibility.

(a)

Any person who is an Employee will be eligible to participate in the Plan provided he or she has a minimum period of continuous service with the Company of six (6) months as of the first day of an Offering Period.  Notwithstanding the foregoing, unless otherwise determined by the Committee prior to the applicable Offering Period, no executive officer shall be eligible to participate in the Plan; provided that all executive officers shall be treated in an identical manner for purposes of eligibility.  

(b)

Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Employer Corporation or of its Parent Corporation or Subsidiary Corporation or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans of the Employer Corporation and its Parent Corporation(s) and Subsidiary Corporation(s) accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time.  These limitations are in addition to any other limitations set forth herein, including any limits that the Committee establishes in accordance with Section 6(a).

4.

Offering Periods.  The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on the first business day on or after January 1 each year, or on such other date as the Committee shall determine.  The Committee shall have the power to change the duration of Offering Periods (including the commencement dates thereof) without shareholder approval.

5.

Participation.

(a)

An eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions in the form approved by the Committee and filing it with the Company’s payroll department during the applicable Enrollment Period.  A participant must file a new subscription agreement for each Offering Period.

(b)

Payroll deductions for a participant shall begin on the first payroll date following the Enrollment Date and shall end on the last payroll date in the Offering Period to which such authorization is applicable, unless sooner discontinued or terminated by the participant as provided in Section 6(c) or Section 10 hereof.

6.

Payroll Deductions.

(a)

At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount set forth in the subscription agreement, stated in terms of whole dollars not less than $5 for each pay period or in whole number percentages, up to a maximum of 10% of the compensation to be received during the Offering Period (or during such portion thereof in which an Employee may elect to participate).  Notwithstanding the foregoing, the Committee annually may determine, in its sole discretion, to establish any maximum dollar amount or percentage of compensation that an eligible Employee is entitled to authorize for payroll deductions during a calendar year, which limitations shall apply to all eligible Employees.  Any such limit established by the Committee shall fall within the parameters of Section 423 of the Code.

(b)

All payroll deductions made for a participant shall be credited to his or her account under the Plan.  A participant may not make any additional payments into such account.

(c)

A participant may withdraw from the Plan as provided in Section 10 hereof.  Alternatively, a participant may elect to discontinue making additional payroll deductions during the Offering Period by completing and filing with the Company’s payroll department a written notice in such form approved by the Committee.  

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The election shall be effective no later than the first payroll date following ten (10) business days after the Company’s receipt of the notice.  If a participant elects to discontinue making additional payroll deductions, all payroll deductions previously credited to his or her account will purchase Common Stock at the end of the Offering Period subject to the other terms of the Plan.  A participant may increase or decrease his or her payroll deduction rate by filing a new subscription agreement at least ten (l0) business days before the beginning of the pay period during which such increase or decrease is to take effect.  A participant’s payroll deduction rate may be increased only once and reduced only once during any Offering Period.

(d)

At the time the option is exercised, in whole or in part, or at the time some or all of the Company’s Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock and the Company is authorized to take any action reasonably necessary to enforce the withholding requirements including without limitation withholding the appropriate amount from the proceeds of any stock sale by the participant.  At any time, the Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee.

7.

Grant of Option.  On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the Exercise Date of such Offering Period (at the applicable Purchase Price) a number of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions accumulated on or prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price, but in no event more than 5,000 shares (subject to adjustment as provided in Section 18 hereof), provided that such purchase shall be subject to the limitations set forth in Sections 3(b), 6(a) and 13 hereof.  Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof.  The Option shall expire immediately following the Exercise Date.

8.

Exercise of Option.  Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares shall be exercised automatically on the Exercise Date, and the maximum number of whole shares subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account, but in no event more than 5,000 shares (subject to adjustment as provided in Section 18 hereof).  A participant in the Plan will be issued a stock certificate as of the Exercise Date, and the balance of any payroll deductions credited to a participant’s account during the Offering Period shall be delivered to the participant.  During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

9.

Registration of Certificates.  Certificates will be registered only in the name of the participant.  If a participant submits a written request to the Committee, the Committee may cause the certificates to be issued in the participant’s name jointly with a member of his or her family with right of survivorship.  

10.

Withdrawal.

(a)

A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by giving written notice to the Company in such form approved by the Committee.  All of the participant’s payroll deductions credited to his or her account shall be paid to such participant after receipt of notice of withdrawal as soon as administratively practicable and such participant’s option for the Offering Period shall be automatically terminated.  Payroll deductions for the purchase of shares during the Offering Period shall cease as soon as administratively practicable.  If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement.

(b)

A participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws.

11.

Termination of Employment.  Upon a participant’s ceasing to be an Employee of the Company for any reason (including without limitation upon death, disability or retirement), he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or, in the case of his or her death, to the

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person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated.

12.

Interest.  No interest shall accrue on the payroll deductions of a participant in the Plan.

13.

Stock.

(a)

Subject to adjustment upon changes in capitalization of the Company as provided in Section 18 hereof, the maximum number of shares of the Company’s Common Stock which shall be made available for sale under the Plan shall be 575,000 shares.  If, on a given Exercise Date, the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Committee shall make a pro rata allocation of the shares remaining available for purchase among the participants in such manner as it may determine in its sole discretion.

(b)

The participant shall have no interest or voting right in shares covered by his option until such option has been exercised.

14.

Administration.  The Plan shall be administered by the Committee.  The Committee shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan.  Every finding, decision and determination made by the Committee shall, to the full extent permitted by law, be final and binding upon all parties.

15.

Designation of Beneficiary.

(a)

A participant may designate, on the subscription agreement filed with the Committee, a beneficiary who is to receive any shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date but prior to delivery of such shares and cash to the participant.  In addition, a participant may file a written designation of a beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option.

(b)

Such designation of beneficiary may be changed by the participant at any time by written notice.  In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such shares and/or cash to the estate of the participant.

16.

Transferability.  Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15 hereof) by the participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10 hereof.

17.

Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

18.

Adjustments Upon Changes in Capitalization, Merger or Asset Sale.

(a)

Changes in Capitalization.  Subject to any required action by the shareholders of the Company, the shares reserved for issuance under the Plan, as well as the price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company.  Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.

(b)

Change of Control.  In the event of a Change of Control, the Offering Period then in progress shall be shortened by the Committee’s setting a new Exercise Date (the “New Exercise Date”).  The New Exercise Date shall be before the date of the Change of Control.  The participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the 

5

Offering Period as provided in Section 10 hereof.  Immediately following such New Exercise Date, the Plan shall terminate.

19.

Amendment or Termination.

(a)

The Board may at any time, or from time to time, amend this Plan in any respect; provided, however, that no amendment shall be made without the approval of the shareholders of the Company to increase the aggregate number of shares which may be issued under this Plan (other than as provided in Paragraph 13(a) or 18(a) hereof) or for which shareholder approval is required under applicable tax, securities or other laws.

(b)

This Plan and all rights of Employees under any offering hereunder may terminate at any time, at the discretion of the Board or Committee.  Upon any termination of this Plan, all amounts in the accounts of participating Employees shall be either (i) promptly refunded in total or (ii) refunded to the extent not used to purchase Common Stock, in the sole discretion of the Board or Committee.  Such amendments shall be made without the approval of the shareholders of the Company or the consent of any participating Employees.

20.

Notices.  All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

21.

Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

22.

Term of Plan.  The effective date of the Plan is December 13, 2000.  The Board has amended and restated the Plan effective November 4, 2010, subject to approval by the shareholders of the Company.  It shall continue in effect until all of the shares of Common Stock reserved for issuance under this Plan, as increased and/or adjusted from time to time, have been issued, unless sooner terminated under Section 19 hereof.

23.

Indemnification of Committee.  In addition to such other rights of indemnification as they may have as directors or as members of the Committee, the members of the Committee shall be indemnified by the Company against the reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan or any option granted thereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding, that such Committee member is liable for gross negligence or willful misconduct in the performance of his or her duties; provided that within 60 days after the institution of any such action, suit or proceeding, a Committee member shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same.

6Exhibit 10.1

DAKOTA
PETROLEUM TRANSPORT SOLUTIONS, LLC

SECOND
AMENDED AND RESTATED MEMBER CONTROL AGREEMENT

          THIS
SECOND AMENDED AND RESTATED MEMBER CONTROL AGREEMENT, (the “Agreement”) is made
effective as of December 31, 2013 (the “Effective Date”), by and between Dakota
Plains Transloading, LLC, a Minnesota limited liability company (“DPT”),
Petroleum Transport Solutions, LLC, a Minnesota limited liability company
(“PTS”) and Dakota Petroleum Transport Solutions, LLC, a Minnesota limited
liability company (the “Company”).

RECITALS:

          A.
DPT, PTS and the Company are parties to that certain Dakota Petroleum Transport
Solutions, LLC Amended and Restated Member Control Agreement dated as of June
1, 2012, as subsequently amended as of August 30, 2012 and as of June 17, 2013
(the “Original Agreement”).

          B.
DPT and PTS constitute all of the Members of the Company.

          C.
DPT, PTS and the Company desire to amend and restate the Original Agreement in
its entirety as set forth herein and pursuant to Section 10.5 of the Original
Agreement.

          D.
This Agreement is a Member Control Agreement under Chapter 322B of the
Minnesota Statutes, Section 322B.37.

          E.
The parties are interested in the growth, development and management of the
Company and in the long-term economic success of the Company and its business,
and mutually desire to make certain agreements relating to the (i) management
and control of the Company and its business, (ii) admission and termination of
Members, and (iii) allocation of income, losses and distributions between the
Members.

AGREEMENTS:

          NOW
THEREFORE, in consideration of the foregoing, the mutual terms, covenants and
conditions contained in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

ARTICLE 1

FORMATION, NAME AND OFFICE, BUSINESS,

TERM, AND DEFINITIONS

          1.1)
General. Except as otherwise provided in this Agreement or the Company’s
Operating Agreement, the rights and responsibilities of the Members shall be as
provided under the LLC Act (defined below). It is intended that the Company be
classified and taxed as a partnership for United States income tax purposes,
and no Member shall take any action not required by law to change the tax
status of the Company under the Code (defined below).

          1.2)
Name and Principal Office. The name of the Company shall be “Dakota
Petroleum Transport Solutions, LLC.” The Company’s principal office will be 294
Grove Lane East, Wayzata, MN 55391, or such other place as the Board of
Governors of the Company (the “Board”) may from time to time determine. 

          1.3)
Members. The names and addresses of the Members are set forth in Exhibit
A. 

          1.4)
Term. The Company shall exist perpetually until it is dissolved, wound
up, and terminated in accordance with this Agreement.

          1.5)
Purpose. The Company shall be authorized to engage in (a) the
acquisition, construction and operation of a crude oil transloading facility in
New Town, North Dakota (the “Transloading Facility”); and (b) any other lawful
activities as the Board may determine from time to time.

          1.6)
Definitions. Unless the context otherwise specifies or requires, the
terms defined in this Section shall have the meanings given them in this
Section for purposes of this Agreement. Certain other capitalized terms used in
this Agreement are defined within this Agreement.

	
  

 	
  

 
	
  

 	
           (a)
 Affiliate. “Affiliate” of a Member means a Person that directly, or
 indirectly through one or more intermediaries, controls, or is controlled by,
 or is under common control with, such Member.

 
	
  

 	
  

 
	
  

 	
           (b)
 Agreement. “Agreement” means this Member Control Agreement as it may
 be further amended or supplemented from time to time.

 
	
  

 	
  

 
	
  

 	
           (c)
 Articles of Organization. The “Articles of Organization” means the
 document filed with the Secretary of State of Minnesota by the Organizer as
 they may be further amended or supplemented from time to time. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Capital Accounts. The “Capital Accounts” means the capital accounts
 maintained by the Company for each Member in respect of such Member’s Company
 Interest.

 
	
  

 	
  

 
	
  

 	
           (e)
 Code. The “Code” means the Internal Revenue Code of 1986, as amended.
 All references to a section of the Code or the treasury regulations
 promulgated under the Code shall mean and include any subsequent amendment or
 replacement of that section.

 
	
  

 	
  

 
	
  

 	
           (f)
 Company. The “Company” means Dakota Petroleum Transport Solutions,
 LLC, a Minnesota limited liability company, formed upon the filing of the
 Articles of Organization with the Secretary of State of Minnesota.

 
	
  

 	
  

 
	
  

 	
           (g)
 Company Interest. “Company Interest” means all of a Member’s right and
 interest in the Company.

 
	
  

 	
  

 
	
  

 	
           (h)
 Damages. “Damages” means any and all losses, liabilities, claims,
 damages, deficiencies, fines, payments, assessments, taxes, liens, costs and
 expenses, whenever or however arising and whether or not resulting from
 third-party claims (including the reasonable costs and expenses of any and
 all proceedings or other legal matters; all amounts paid in connection with
 any demands, assessments, judgments, settlements and compromises relating
 thereto; interest and penalties with respect thereto; and costs and expenses,
 including reasonable attorneys’, accountants’ and other experts’ fees and
 expenses, incurred in investigating, preparing for or defending against any
 such proceedings or other legal matters or in asserting, preserving or
 enforcing an indemnitee’s rights hereunder).

 
	
  

 	
  

 
	
  

 	
           (i)
 Distribution. “Distribution” means a distribution of cash or property
 to the Members pursuant to this Agreement.

 

- 2 -

	
  

 	
  

 
	
  

 	
           (j)
 Governor. “Governor” means a natural person elected by the Members to
 serve on the Board.

 
	
  

 	
  

 
	
  

 	
           (k)
 LLC Act. The “LLC Act” means the Minnesota Limited Liability Company
 Act, as amended. All references in this Agreement to a section of the LLC Act
 shall be considered also to include any subsequent amendment or replacement
 of that section.

 
	
  

 	
  

 
	
  

 	
           (l)
 Members. The Members of the Company are collectively referred to
 herein as the “Members” and individually as a “Member.”

 
	
  

 	
  

 
	
  

 	
           (m)
 Net Profits and Net Losses. “Net Profits” and “Net Losses” means, with
 respect to any period, the income and loss of the Company for such period as
 determined in accordance with the accounting method followed by the Company
 for book purposes, including income exempt from tax and described in Code
 Section 705(a)(1)(B) and treating as deductions items described in Code
 Section 705(a)(2)(B).

 
	
  

 	
  

 
	
  

 	
           (n)
 Operating Agreement. The “Operating Agreement” means the document
 adopted by the Board relating to the operation of the Company,

 
	
  

 	
  

 
	
  

 	
           (o)
 Organizer. “Organizer” means the individual signing and filing the
 Articles of Organization.

 
	
  

 	
  

 
	
  

 	
           (p)
 Percentage Interest. “Percentage Interest” of each Member shall be a
 fraction, the numerator of which is the total number of Units held by such
 Member on the date of determination and the denominator of which is the Total
 Units as of such date.

 
	
  

 	
  

 
	
  

 	
           (q)
 Person. “Person” means any natural person, company (whether general or
 limited), limited liability company, trust, estate, association, corporation,
 joint venture, proprietorship, governmental agency, trust, estate,
 association, custodian, nominee or any other individual or entity, whether
 acting in an individual, fiduciary, representative or other capacity.

 
	
  

 	
  

 
	
  

 	
           (r)
 Risk Equivalence. “Risk Equivalence” refers to the objective of
 maintaining between Members an equivalent level of risk with respect to their
 respective Member Interests, all as more specifically described in Section
 10.1 below.

 
	
  

 	
  

 
	
  

 	
           (s)
 Total Units. “Total Units” means the aggregate outstanding Units
 issued to all Members as of a given date.

 
	
  

 	
  

 
	
  

 	
           (t)
 Unit. “Unit” means the designation which the Company has established
 to represent the Company Interests of the Members.

 

ARTICLE 2

MEMBERS

          2.1)
Members. The Members will be those Persons named in Exhibit A,
each assignee of a Company Interest who is admitted as a Member under this
Agreement, and new Members admitted pursuant to this Agreement.

- 3 -

ARTICLE 3

CAPITAL, SERVICES, AND VOTING

          3.1)
Capital Accounts. The following shall apply with respect to the Capital
Accounts:

	
  

 	
  

 
	
  

 	
           (a)
 A Capital Account shall be maintained for each Member. Each Member’s Capital
 Account shall consist of such Member’s initial contribution to the Company
 and shall be (i) increased by such Member’s additional capital
 contributions, if any; (ii) decreased by such Member’s share of
 Distributions from the Company, if any; and (iii) otherwise adjusted in
 accordance with Article 5. A credit balance in a Member’s Capital Account
 shall not entitle such Member to demand any Distribution from the Company,
 and a debit balance in a Member’s Capital Account shall not constitute an
 obligation of such Member to the Company. No Capital Account maintained for
 the Members by the Company shall bear interest.

 
	
  

 	
  

 
	
  

 	
           (b)
 General Compliance With Section 704(b). The maintenance of the Capital
 Accounts for the Members shall comply with Section 704(b) of the Code and the
 applicable Treasury Regulations. If the Board determines that the maintenance
 of such Capital Accounts needs to be modified to comply with Section 704(b)
 of the Code and the applicable Treasury Regulations, the Board may,
 notwithstanding any other provision of this Agreement, change the method of
 maintaining such Capital Accounts and if rendered necessary as a result of
 such change, amend this Agreement without notice to the other Members to
 reflect any such changes; provided, however, that any such changes shall not
 materially alter the economic agreement of the Members.

 

          3.2)
Capital Contributions. The following provisions apply with respect to
contributions to the Company

	
  

 	
  

 
	
  

 	
           (a)
 The capital contribution of each Member shall be the amount of money and fair
 market value of any property (net of liabilities secured by such property
 that the Company is considered to assume or take such property subject to and
 net of any other liabilities of a Member that are assumed by the Company in
 connection with the contribution of such property) contributed by a Member to
 the Company.

 
	
  

 	
  

 
	
  

 	
           (b)
 A Member shall not be obligated to make additional capital contributions to
 the Company except as the Members may unanimously agree in writing.

 
	
  

 	
  

 
	
  

 	
           (c)
 It is specifically intended that no creditor of the Company nor creditor of a
 Member will have any right by virtue of this Section or any other provision
 of this Agreement to obligate any Member to pay funds to such creditor or to
 the Company.

 

          3.3)
Services to be Performed by Members.

	
  

 	
  

 
	
 

 	
           (a)
DPT. During the term of the Company’s operations under this Agreement,
DPT shall perform, or cause to be performed, and be responsible for the
following actions and services to be provided to the Company as part of DPT’s
Member contribution.

 

	
  

 	
  

 
	
  

 	
           (i)
 At its sole cost, DPT or an Affiliate shall own the real property necessary
 for the operation of the Transloading Facility, and for rail spur service
 between the Transloading Facility and the available trunk rail line.

 

- 4 -

	
  

 	
  

 
	
  

 	
           (ii)
 DPT or an Affiliate, as owner of the Transloading Facility, shall lease the
 Transloading Facility to the Company at a rent payment described in the
 Member Transaction description attached hereto as Exhibit B, as such
 may be updated from time to time. The Company shall use the Transloading
 Facility pursuant to and consistent with the terms of such lease, and no
 Member nor the Company shall have any claim to any interest in the Real
 Property or any equipment, materials or improvements on the Real Property,
 other than as specifically set forth in such lease or any other agreement
 between the parties or their Affiliates. No interest in the Transloading
 Facility shall be considered to have been conveyed to the Company or to any
 Member by virtue of this Agreement.

 
	
  

 	
  

 
	
  

 	
           (iii)
 DPT shall assist the Company through DPT’s contacts with producers, marketers
 and transporters of hydrocarbons in North Dakota.

 

	
  

 	
  

 
	
 

 	
           (b)
PTS. During the term of the Company’s operations under this Agreement,
PTS or its Affiliates shall perform, or cause to be performed, and be
responsible for the following actions and services to be provided to the
Company as part of PTS’s Member contribution.

 

	
  

 	
  

 
	
  

 	
           (i)
 PTS or its Affiliates has leased (the “Transloader Lease”) four (4) trailer
 mounted transloaders (the “New Transloaders”). The New Transloaders have been
 delivered to Transloading Facility, and shall be used only for transloading
 activities of the Company unless otherwise agreed in writing by the
 Governors. During the term of this Agreement, the New Transloaders shall not
 be removed from the Transloading Facility without the express written consent
 of all Members, which consent may be withheld for any reason or no reason
 whatsoever in each Members sole and unilateral discretion. During the term of
 this Agreement, the Company shall be responsible for all maintenance
 associated with the New Transloaders. The Company will not be required to
 expend Company funds to “rebuild” the New Transloaders at any time. Any
 residual value under the Transloader Lease shall be for the sole benefit of
 PTS or its Affiliates.

 
	
  

 	
  

 
	
  

 	
           (ii)
 PTS or its Affiliates shall coordinate and manage the trucking and rail
 logistics for the Transloading Facility, including the scheduling and
 monitoring of trains and trucks arriving to and departing from the
 Transloading Facility.

 
	
  

 	
  

 
	
  

 	
           (iii)
 PTS or its Affiliates shall coordinate and manage all accounting,
 bookkeeping, tax and treasury functions in connection with the operation of
 the Transloading Facility. A monthly accounting fee in the amount approved by
 the Board shall be paid to PTS for staff time provided by PTS or its
 Affiliates for these functions as contemplated by Section 7.6(e) of this
 Agreement.

 
	
  

 	
  

 
	
  

 	
           (iv)
 PTS or its Affiliates shall assist the Company through PTS’ contacts with
 marketers, transporters, refiners and other end-users.

 

          3.4)
Services to be Performed by the Facility Management Member. 

	
  

 	
  

 
	
  

 	
           (a)
 Facility Management Services. During the Term, one of the Members (the
 “Facility Management Member”), which shall initially be DPT, shall have (i)
 primary responsibility for coordinating and managing the day-to-day
 operations of the Transloading Facility and (ii) primary operational control
 of the Transloading Facility. In addition to such other duties as may be
 necessary or appropriate to coordinate and manage the operation of the
 Transloading Facility, the Facility Management Member shall be responsible
 for operational and technical oversight of the Transloading Facility through
 a Terminal Manager, as defined in

 

- 5 -

	
  

 	
  

 
	
  

 	
 Section 3.4(c); budget
 planning; business development; management of third-party contractors, if
 any; establishment and implementation of appropriate technical, health,
 safety and environmental policies, procedures and manuals, including
 inspection, audit, investigation, reporting and remediation; ensuring
 compliance with all applicable regulations, including U.S. Occupational
 Safety and Health Administration (OSHA), U.S. Environmental Protection Agency
 (EPA), U.S. Department of Transportation (DOT), Federal Railroad
 Administration (FRA) and the Three Affiliated Tribes (TAT) Environmental
 Division; maintaining the Transloading Facility and equipment; and handling
 site and infrastructure security and visits; all subject to the terms
 contained in this Agreement or any resolution of the Board (the “Facility
 Management Activities”). Notwithstanding the foregoing, Facility Management
 Activities do not include those activities reserved to PTS and its Affiliates
 under Section 3.3(b). The Facility Management Member shall exercise its
 reasonable judgment, to maximize the profitability of the Company, it being
 understood that the Facility Management Member shall not be required to take
 any actions prohibited by this Agreement or to make any contributions or
 advances to the Company not required by this Agreement.

 
	
  

 	
  

 
	
  

 	
           (b)
 Reimbursement. Commencing with the execution of this Agreement, the
 Company shall reimburse the Facility Management Member on a monthly basis for
 costs associated with the Facility Management Activities as approved by the
 Board, including, but not limited to, (i) compensation expense and related
 overhead incurred in its employment of the Terminal Manager, if any, and such
 other parties as authorized by the Board; and (ii) all expenses incurred that
 have been approved by the Board as part of an annual operating budget (the
 “Annual Budget”) or otherwise (collectively, the “Facility Management
 Costs”).

 
	
  

 	
  

 
	
  

 	
           (c)
 Terminal Manager. The Facility Management Member will manage a Person,
 approved by the Board, tasked with daily oversight of the Facility Management
 Activities (the “Terminal Manager”). The Terminal Manager may be an employee of
 the Company, a Member or any Affiliate of a Member or the Company. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Facility Management Member Discretion. The Members hereby acknowledge
 and agree that except as provided herein or otherwise determined by unanimous
 vote of the Board, the Facility Management Member shall have sole discretion
 in conducting the Facility Management Activities; provided, however
 that the other Member shall at all times have the right to participate in the
 vetting of contractors, conduct risk assessments and audit any of the
 Facility Management Activities.

 
	
  

 	
  

 
	
  

 	
           (e)
 Summary Reports. Within twenty (20) days after the end of each month,
 the Facility Management Member shall provide to each other Member (or to such
 Person as any such Member shall designate) a summary report providing at
 least the information set forth on Exhibit C. 

 

          (h)
 Change in Facility Management Member. The Facility Management Member
 may not be changed without the unanimous approval of the Board.

          3.5)
Authorized Units. The Board may establish, by resolution adopted in the
manner described in the Operating Agreement, either additional Units or one or
more additional classes or series of Units, designate each such additional
class or series, and fix the relative rights and preferences of each such
additional class or series, subject to the provisions of this Agreement.
Notwithstanding any provision of this Agreement or the Operating Agreement to
the contrary, the Board shall not establish additional Units or additional
classes or series of Units, designate each such additional class or series, or
fix the relative rights and preferences of each such additional class or series
without the unanimous express 

- 6 -

written consent of all
Members at the time of such proposed issuance. Any Member may withhold its
consent to such actions for any reason or no reason whatsoever, in its sole and
unilateral discretion.

          3.6)
Voting Power. Each Unit shall entitle the owner of such Unit to one vote
on all matters submitted to the vote of Members.

ARTICLE 4

TAX MATTERS

          4.1)
Tax Characterization and Returns. The Members acknowledge that the
Company will be treated as a “partnership” for federal and Minnesota state
income tax purposes. Within a reasonable time after the end of each fiscal
year, the Company shall deliver to each Person who was a Member at any time
during such fiscal year a Form K-1 and such other information, if any, with
respect to the Company as may be necessary for the preparation of such Member’s
federal or state income tax (or information) returns, including a statement
showing each Member’s share of income, gain, or loss and credits for such
fiscal year for federal or state income tax purposes.

          4.2)
Accounting Decisions, Tax Elections. All decisions as to accounting
matters or tax elections shall be made by the Board. The Board may make or
revoke such elections as may be allowed pursuant to the Code, including the
election referred to in Section 754 of the Code to adjust the basis of
Company property.

          4.3)
Tax Matters Partner. The Board shall designate a Member to act on behalf
of the Company as the “Tax Matters Partner” within the meaning of
Section 6231(a)(7) of the Code. 

          4.4)
Tax Allocations. In accordance with Section 704(c) of the Code and
the Treasury Regulations promulgated thereunder, income, gain, loss and
deduction with respect to any property contributed to the capital of the
Company shall, solely for tax purposes, be allocated among the Members so as to
take account of any variation between the adjusted basis of such property to
the Company for federal income tax purposes and its fair market value as of the
date of contribution. In the event any Company asset is adjusted as a result of
a revaluation pursuant to Treasury Regulations § 1.704-1(b)(iv)(2)(f),
subsequent allocations of income, gain, loss and deduction with respect to such
asset shall take account of any variation between the adjusted basis of such
asset for federal income tax purposes and its fair market value as of the date
of such revaluation in the same manner as under Section 704(c) of the Code
and the Treasury Regulations promulgated thereunder. Any election or other
decision relating to such allocations shall be made by the Board in any manner
that reasonably reflects the purpose and intention of this Agreement.
Allocations pursuant to this Section 4.4 are solely for purposes of
federal, state and local taxes and shall not affect, or in any way be taken
into account in computing any Member’s Capital Account or share of income,
profits, gains, losses, expenses, deductions, credits or other items or
distributions pursuant to any provision of this Agreement.

          4.5)
Book-up of Capital Accounts. Unless the Board shall determine otherwise,
the gross asset values of all the Company’s assets shall be adjusted to equal
their respective gross fair market values, as determined by the Board (and the
Capital Accounts of the Members shall be adjusted accordingly), as of the
following times: (a) the acquisition of an additional Unit by any new or
existing Member in exchange for more than a de minimis capital
contribution; (b) the distribution by the Company to a Member of more than a de
minimis amount of assets of the Company as consideration for Units; or
(c) upon the acquisition of Units by a new or existing Member, provided,
however, that adjustments shall be made only if the Board reasonably determines
that such adjustments are necessary or appropriate to reflect the relative
economic interests of the Members in the Company.

- 7 -

ARTICLE 5

ALLOCATIONS AND DISTRIBUTIONS

          5.1)
Allocation Provisions. The following provisions apply with respect to
the allocation of such items among the Members:

	
  

 	
  

 
	
  

 	
           (a)
 Allocation of Net Profits and Net Losses. At the end of each fiscal
 quarter, the Net Profits and Net Losses for such fiscal quarter shall be
 allocated pro rata to the Members based on the number of Units which are
 issued and outstanding and shall be credited or debited to the Capital
 Accounts of the Members.

 
	
  

 	
  

 
	
  

 	
           (b)
 Section 706(d). In the event of any changes in Percentage Interests in
 the Company during a fiscal year, then for purposes of this Article 5,
 the Board shall take into account the requirements of Section 706(d) of
 the Code and may select any method of determining the varying Percentage
 Interest of the Member during the year which satisfies Section 706(d) of
 the Code.

 
	
  

 	
  

 
	
  

 	
           (c)
 Section 754. Any election by the Company under Section 754 of the
 Code to adjust the basis of the Company’s assets pursuant to Section 734
 and Section 743 of the Code shall be made in the discretion of the
 Board. If such election is made, allocation of items of the Company’s income,
 gain, loss and deductions shall otherwise be made in a manner consistent with
 such allocation of basis in accordance with Section 734 and/or
 Section 743 of the Code, as the case may be, notwithstanding any other
 provision of this Agreement.

 

          5.2)
Distribution and Payment Provisions. The following provisions apply with
respect to the distribution and payment of items to and among the Members:

	
  

 	
  

 
	
  

 	
           (a)
 Priority Cash Available. For purposes of this Section, “Priority Cash
 Available” shall mean cash accumulated by the Company at the end of a
 calendar month in excess of (i) the cash necessary to pay operating
 expenses of the Company incurred to parties other than Members or their
 respective Affiliates (the “Third Party Expenses”) through the end of the
 next calendar month and (ii) any reserve amount(s) as may be established by
 unanimous action of the Board.

 
	
  

 	
  

 
	
  

 	
           (b)
 Priority Payments to Members. As soon as practicable following the end
 of each calendar month the Company shall determine the amount of Priority
 Cash Available. To the extent of Priority Cash Available, the amounts due to
 Members with respect to Member Transactions (as defined below) (the “Member
 Transaction Payments”) for the calendar month just ended shall be paid by the
 Company. If the Priority Cash Available is insufficient to
 satisfy the obligations of the Company for the calendar month’s Member
 Transactions, the amounts of Priority Cash Available from time to time shall
 be paid one half to each Member until the obligation to a Member is
 satisfied, and the balance, if any, to satisfy any remaining such obligations
 to the other Member.

 
	
  

 	
  

 
	
  

 	
           (c)
 Member Transactions. The lease of the Transloading Facility by the
 Company from DPT shall constitute a Member Transaction with respect to DPT.
 The obligations of the Company to the respective Members for Member
 Transactions shall be the amount determined under the formulations set forth
 in Exhibit B.

 
	
  

 	
  

 
	
  

 	
           (d)
 Facility Management Activities and Financial Services. Any and all
 reimbursement payable to the Members under Section 3.4(b) for the Facility
 Management Costs and Section 7.6(e) for the Financial Services Fee (defined
 below): (i) shall be deemed operating 

 

- 8 -

	
  

 	
  

 
	
  

 	
 expenses of the
 Company, (ii) shall not be subject to treatment as a Member Transaction and
 (iii) shall not offset or otherwise adjust any distributions to such Member
 in respect of such Member’s Units.

 

                    (e)
Operating Distributions.

	
  

 	
  

 
	
  

 	
           (i)
 At the end of each calendar month, the Board shall identify the amount of
 Priority Cash remaining after all Third Party Expenses and all Member
 Transaction Payments described above in this Section 5.2 (relating to such
 calendar month and the next succeeding calendar month) have been made. The
 Company shall make a pro rata distribution of one-half (1/2) of such amount
 (the “Required Distribution”) to the Members based upon the average number of
 Units owned by each Member each calendar day during such calendar month.
 Notwithstanding the foregoing, the Company may reduce the Required
 Distribution by any amount that the Board unanimously determines is necessary
 or prudent to pay any capital improvements or other extraordinary expenses
 for the succeeding calendar months. 

 
	
  

 	
  

 
	
  

 	
           (ii)
 The Board, at the end of any calendar month upon unanimous consent of all
 Governors, may declare and pay any Distributions in addition to the Required
 Distribution provided that it has first set aside or satisfied all Third
 Party Expenses and Member Transaction Payments required to be made with respect
 to such calendar month end as described in this Section 5.2.

 
	
  

 	
  

 
	
  

 	
           (iii)
 Any Distributions from the Company as may be authorized from time to time by
 the Board, shall be made, at the time such Distributions are authorized by
 the Board, to the Members in such amounts as may be determined by the Board
 on a pro rata basis. No Member shall have any right to interim Distributions
 except as determined by the Board, and no Member shall be entitled to
 interest on any contributions made by such Member to the Company. No Member
 shall have the right to withdraw or to demand the return or repayment of any
 or all of such Member’s contributions.

 

                    (f)
Tax Burden Distributions. Notwithstanding the provisions of
subparagraphs (a) and (b) above: 

	
  

 	
  

 
	
  

 	
           (i)
 The Company shall distribute to the Members each calendar year, to the extent
 cash is reasonably available without any borrowing by the Company, and taking
 into account the reasonable working capital needs of the Company, the amount calculated
 pursuant to this Section 5.2(b)(ii) to permit the Members to pay income taxes
 on their respective allocable shares of the estimated taxable income of the
 Company; provided, that such estimated taxable income may be offset by any
 allocable loss carryforwards in the sole discretion of the Board.

 
	
  

 	
  

 
	
  

 	
           (ii)
 Distributions in accordance with the foregoing paragraph shall be based on
 the premise that all Members are subject to the maximum combined federal and
 Minnesota tax rates applicable to the type of income generated by the Company
 (after making appropriate provisions for cross-deductibility of federal and
 state income taxes).

 
	
  

 	
  

 
	
  

 	
           (iii)
 The Board may make Distributions on a quarterly basis to facilitate the
 payment of estimated taxes by the Members.

 

- 9 -

	
  

 	
  

 
	
  

 	
           (iv)
 To the extent distributions are made in reliance upon the authority of this
 Section 5.2(e), such distributions shall reduce the amount of the Required
 Distributions described in Section 5.2(d)

 

	
  

 	
  

 
	
  

 	
           (g)
 In-Kind Distributions. No Member shall have the right to require any
 distribution of any assets of the Company in kind. If any assets of the
 Company are distributed in kind, such assets shall be distributed on the
 basis of their fair market value as determined by the Board. Solely for the
 purpose of maintaining Capital Accounts, the amount by which the fair market
 value of any property to be distributed exceeds or is less than the adjusted
 basis of such property for book purposes shall be taken into account in
 determining Net Profit or Net Loss as if such property had been sold at its
 fair market value as determined in good faith by the Board.

 

ARTICLE 6

ISSUANCE OF UNITS; ADMISSION OF MEMBERS; REGISTRATION

          6.1)
Issuance of Units. Notwithstanding any provision of this Agreement or
the Operating Agreement to the contrary, the Company shall not issue any
additional Units at any time without the unanimous express written consent of
all Members at the time of such proposed issuance. Any Member may withhold its
consent to the issuance of any additional Units for any reason or no reason
whatsoever, in its sole and unilateral discretion. In connection with the
issuance of any additional Units, the Board shall value all nonmonetary
consideration and establish a price in money or other consideration, or a
minimum price, or a general formula or method by which the price will be
determined.

          6.2)
Admission of Members. 

	
  

 	
  

 
	
  

 	
           (a)
 Issuance or Assignment of Units. A person shall be admitted as a
 Member upon payment for any Units issued to such person pursuant to
 Section 6.1 in this Agreement effective when such person executes or
 otherwise evidences an intent to be bound by this Agreement. An assignee of a
 Member’s Units may be admitted as a Member upon unanimous consent of all
 Members at such time, but only if such person executes or otherwise evidences
 an intent to be bound by this Agreement.

 
	
  

 	
  

 
	
  

 	
           (b)
 Exhibit A. The current Members of the Company and the capital
 contributions made or agreed to be made by each of them and numbers of Units
 that are issued and outstanding are set forth on Exhibit A. The Board is
 authorized from time to time to update Exhibit A to reflect the identity of
 all Members, the capital contributions made or agreed to be made and the
 class and number of each class of Units that are issued and outstanding.

 

          6.3)
Registration.

	
  

 	
  

 
	
  

 	
           (a)
 Register. The Company shall keep at its principal office a register
 containing the names of the owners of outstanding Units and all transfers of
 outstanding Units. References to the owner of a Unit shall mean the Person or
 entity shown as the owner of such Unit in the register, and the ownership of
 a Unit shall be proved by such register. Except as otherwise specifically
 provided in this Agreement, the registered owner of a Unit shall be deemed to
 be the owner of such Unit and a Member for all purposes of this Agreement.

 
	
  

 	
  

 
	
  

 	
           (b)
 Certificates. Certificates evidencing the Units owned by a Member may,
 but need not, be issued by the Company. Each certificate shall serve only as
 evidence of ownership of the Units it identifies and shall not be assignable.

 

- 10 -

	
  

 	
  

 
	
  

 	
           (c)
 Registration of a Transfer. Each Unit issued under this Agreement,
 whether originally or in substitution for, or upon transfer, exchange or
 other issuance of a Company Interest represented by such Unit, shall be
 registered on the effective date of the Transfer, exchange or other issuance
 as determined in good faith by the Board; provided, however, that no
 registration of any transfer not made in compliance with this Agreement shall
 be made in the register.

 
	
  

 	
  

 
	
  

 	
           (d)
 Preemptive Rights. No Member, merely because of such Member’s status
 as a Member or an owner of Units, shall have any preemptive rights to
 purchase any Units proposed to be sold or issued by the Company.

 

          6.4)
UCC Article 8. The Units will be treated as securities governed by
Article 8 of the Uniform Commercial Code (but the designation of the Units as
securities for purposes of such law does not mean that they are securities for
any other purposes).

ARTICLE 7

MANAGEMENT AND OPERATION OF THE COMPANY

          7.1)
No Authority of the Members. Except as specifically provided in this
Agreement, no Member shall have any authority in such Member’s capacity as a
Member to act for, or to assume any obligations or responsibility on behalf of,
or bind the Company or any other Member. Such authority shall be vested solely
in the Board under this Agreement. 

          7.2)
Board of Governors.

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Management Vested in Board. The business and affairs of the Company
 shall be managed by or under the authority of the Board, except as otherwise
 specifically required by the LLC Act or this Agreement. Except as otherwise
 provided in this Agreement or the Operating Agreement, the Board shall have
 the sole and exclusive power to manage the Company’s business.
 Notwithstanding any provision of this Agreement or the Operating Agreement to
 the contrary, except as may be required under the LLC Act, each of the
 following actions must be approved by the Board:

 
	
  

 	
  

 
	
  

 	
  

 	
           (i)
 the establishment for each fiscal year of an Annual Budget; provided, however,
 if the Board fails to establish for any fiscal year an Annual Budget in
 accordance with this clause (i), then the applicable Annual Budget shall be
 equal to the Annual Budget for the prior fiscal year plus three percent (3%)
 until the establishment of an Annual Budget for such fiscal year in
 accordance with this clause;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 the incurrence in any fiscal year of any operating expenses that exceed the
 operating expenses set forth in any category of the Annual Budget by more
 than $25,000;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 any capital expenditures not otherwise included in the Annual Budget in
 excess of $50,000 individually;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 the incurrence in any fiscal year of capital expenses that exceed the capital
 expenses set forth in any category of the Annual Budget by more than 20% or
 $1,000,000, whichever is less;

 

- 11 -

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v)
 the appointment or removal of the Terminal Manager (except that a Person is
 automatically removed as Terminal Manager if such Person ceases to be an
 employee of the Company, a Member or an Affiliate of a Member); 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (vi)
 engagement or termination of any third party service provider of the Company
 providing material health, safety, security and environment services or
 operating the Terminal;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (vii)
 the sale or issuance of any Units or other securities exercisable for,
 convertible into or related to the Units or which cause the Company to incur
 any debt;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (viii)
 except as otherwise provided for in Section 5.2, authorizing any
 distribution and declaring or paying any other distributions; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ix)
 any transactions with any Member or any Affiliate of any Member;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (x)
 any transaction or series of related transactions to acquire, dispose of,
 encumber or transfer assets having a value in excess of $50,000;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xi)
 consolidations, mergers or any other extraordinary transactions;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xii)
 the incurrence, guarantee, assumption, repayment, voluntary prepayment,
 redemption, refinancing or amendment of the terms of any indebtedness, not
 otherwise approved in the Annual Budget, having a balance in excess of
 $50,000; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xiii)
 the entering into of finance or operating leases (other than any credit or
 lease transactions involving payments that do not exceed in the aggregate
 $100,000 in any year);

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xiv)
 establishing, or transferring assets or agreements to, any subsidiaries;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xv)
 the liquidation, dissolution or commencement of any case, proceeding or other
 action relating to bankruptcy, insolvency, reorganization or relief of
 debtors or any consent to any such proceeding or other action that is
 involuntary;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xvi)
 the entering into, cancellation or amendment of material agreements
 (for purposes of this clause, material agreements shall be defined as any
 agreement with either a current market value or a total remaining cost of
 greater than $400,000);

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xvii)
 changing the independent accountant or auditor of the Company;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xviii)
 initiating or settling any lawsuit or other legal proceeding;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xix)
 investing in any third party;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xx)
 engaging in any business or activity that is inconsistent from the purpose of
 the Company as set forth in Section 1.5;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xxi)
 the transfer or encumbrance of any asset for or in payment of any individual
 obligation of any Member;

 

- 12 -

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xxii)
 the commencement or material modification of any significant activity which
 involves federal, state or local regulatory approval and/or reporting
 requirements; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (xxiii)
 making any decision, or entering into any agreement, commitment or
 arrangement, to take any of the foregoing actions or which could reasonably
 be foreseen as resulting in any of the foregoing actions.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Designation of Board Members. Each Member shall be permitted to
 appoint one designee of such Member to the Board. There shall be no other
 members of the Board. Any vacancy in the Board shall be filled by the action
 of the Member that appointed the Board member whose Board position is
 vacated.

 
	
  

 	
  

 
	
  

 	
           (c)
 Delegation. The Board shall be entitled to delegate its duties as it
 may deem reasonable or necessary in the conduct of the business of the
 Company to one or more managers, officers, employees, agents, or committees
 of the Company, who shall each have such duties and authority as the Board
 shall determine, or as may be set forth in this Agreement, the Operating
 Agreement or any agreement between such person and the Company.

 
	
  

 	
  

 
	
  

 	
           (d) Qualification and Term of Office. Governors need not be Members or
 employees of the Company. A Governor shall hold office until such person’s
 successor shall have been appointed, or until the earlier death, resignation,
 removal or disqualification of such Governor. A Governor may be removed only
 by the Member that appointed such Governor.

 
	
  

 	
  

 
	
  

 	
           (e)
 Resignation. Any Governor may resign at any time by giving written
 notice to the Company. The resignation is effective when notice is given to
 the Company, unless a later date is specified in the notice, and acceptance
 of the resignation shall not be necessary to make it effective.

 
	
  

 	
  

 
	
  

 	
           (f)
 Voting Power. Except as provided in the Operating Agreement, each
 Governor shall have one vote on any matter submitted to the vote of the
 Board.

 
	
  

 	
  

 
	
  

 	
           (g)
 Acts of the Board. The Board shall take action in the manner set forth
 in the Operating Agreement.

 
	
  

 	
  

 
	
  

 	
           (h)
 Standards of Conduct. A Governor shall discharge the duties of serving
 on the Board in good faith, in a manner the Governor reasonably believes to
 be in the best interests of the Company and with the care an ordinarily
 prudent person in a like position would exercise under similar circumstances.
 A Governor shall not be liable as a fiduciary with respect to the duties of
 serving on the Board.

 

          7.3)
Officers. The Company shall have one or more natural persons exercising
the functions of the offices, however designated, of the Transloading Manager
and Treasurer. The Board may elect or appoint such other officers or agents as
it deems necessary for the operation and management of the Company including,
but not limited to, a Chairman of the Board, a President, one or more Vice
Presidents, and a Secretary, each of whom shall have the powers, rights, duties
and responsibilities set forth in the Operating Agreement, unless otherwise
determined by the Board. Any of the offices or functions of those offices may
be held by the same person.

          7.4)
Members or Affiliates Dealing with the Company. The Company may contract
or otherwise deal with a Member or any person affiliated with a Member
including the purchase or sale of 

- 13 -

goods or services. In any
such transaction between the Company and a Member or a person who is related to
a Member, the Agreement shall be approved in accordance with Section 7.2(a) of
this Agreement and Section 322B.666 of the LLC Act. Compensation for such goods
or services shall in all instances be commercially reasonable.

          7.5)
Compensation for Services. Unless otherwise determined by the Board, no
Member or officer shall be compensated for services to the Company. No
relationships between the Company and any person or entity affiliated with a
Member are authorized unless the Board is fully aware of the circumstances and,
in no event, will compensation to any such affiliated person or entity be more
than is reasonable given all of the facts and circumstances. The Company shall
reimburse Members for the compensation, benefits and travel costs of employees
of such Members, who provide services as agreed to by all Members based on the
percentage of time such individual allocates to the Company. Such costs will be
paid by the Company to such Members on a monthly basis pursuant to an amount
agreed by all Members in writing in advance of any such payment.

          7.6)
Operation of the Transloading Facility and Conduct of the Company’s Business.

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 Business Divisions. The Company shall conduct one category of business
 activities: the operation of the Transloading Facility for loading, unloading
 and transloading crude oil or other products approved by the Board, either
 for its own account or for third parties.

 
	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Credit. The Company may establish and maintain appropriate credit
 facilities with a commercial lender to accommodate its regular working
 capital needs.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c)
 Labor and Contracts. The Company shall contract for labor needed in
 the operation and site management of the Transloading Facility and for truck
 transport (to the extent it is for the Company’s account) of petroleum
 products from producers to the Transloading Facility, and the Company shall
 be responsible for all such costs.

 
	
  

 	
  

 	
  

 
	
  

 	
           (d) Operating Expenses. The Company shall pay all expenses directly
 related to the operation of the Transloading Facility including but not limited
 to utilities, real estate taxes, sales taxes, maintenance, insurance, labor
 costs, the Facility Management Costs and Member Transaction costs. No
 operating distributions (as defined in Section 5.2(d)) shall be made by the
 Company until all operating expenses have been paid or are properly accrued
 for, and all payments with respect to Member Transactions for the immediately
 preceding calendar quarter have been paid.

 
	
  

 	
  

 	
  

 
	
  

 	
           (e) Accounting, Bookkeeping, Tax and Treasury. Accounting, bookkeeping, tax
 and treasury services (collectively, the “Financial Services”) for the
 Company shall be performed by PTS or its Affiliates, and the reasonable
 market rate of fees for the Financial Services (collectively, the “Financial
 Services Fee”) shall be paid by the Company as approved by the Board on an
 annual basis. If the Board fails to establish the Financial Services Fee for
 any fiscal year, then the applicable Financial Services Fee for such fiscal
 year shall be equal to the Financial Services Fee for the prior fiscal year
 plus three percent (3%) until the establishment of the Financial Services Fee
 by the Board. Any Member maintaining or possessing the books and records of
 the Company will provide any other Member’s personnel and auditors,
 accountants, and legal counsel access to such books and records during
 business hours upon reasonable request.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Company shall use reasonable efforts to deliver within nineteen (19) days
 after the end of each month to each Person who was a Member at any time
 during 

 

- 14 -

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 such calendar month (1)
 monthly financial statements prepared in accordance with U.S. GAAP (which
 financial statements, including balance sheet, income statement, cash flow
 and Member’s equity, need not contain notes) and (2) the financial
 information identified on Exhibit D, which exhibit may be amended,
 from time to time by unanimous action of the Board.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Company shall deliver within eighteen (18) days after the end of each fiscal
 quarter to each Person who was a Member at any time during such fiscal
 quarter quarterly financial statements prepared in accordance with U.S. GAAP
 (which financial statements, including balance sheet, income statement, cash
 flow and Member’s equity, need not contain notes or a comparison to the prior
 quarter). The Company and any Member maintaining or possessing the books and
 records of the Company will cooperate with any other Member in preparing
 notes to such financial statements.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 Company shall deliver within forty-five (45) days after the end of each
 fiscal year to each Person who was a Member at any time during such fiscal
 year (1) annual financial statements prepared in accordance with U.S. GAAP
 (which financial statements, including balance sheet, income statement, cash
 flow and Member’s equity, need not contain notes or a comparison to the prior
 quarter) and (2) the financial information identified on Exhibit D,
 which exhibit may be amended, from time to time by unanimous action of the
 Board. An estimate of the taxable income generated by the Company during the
 applicable period will be provided upon completion. The Company and any
 Member maintaining or possessing the books and records of the Company will
 cooperate with any other Member in preparing notes to such financial
 statements.

 
	
  

 	
  

 	
  

 
	
  

 	
           (f)
 Member Expenses. Except as specifically provided in this Agreement to
 the contrary, DPT and PTS shall each be solely responsible for their
 respective costs incurred in delivering and performing the services and
 assets required to be contributed to the Company under this Agreement,
 including travel, overhead, legal, and general and administrative expenses of
 the Member or its Affiliates.

 

          7.7)
Operating Agreement. The Operating Agreement may contain any provision
relating to the management and operation of the Company not inconsistent with
the LLC Act and this Agreement. In the case of any inconsistency, this
Agreement and the LLC Act will govern. The Board may amend or repeal the
Operating Agreement. Any such amendment or repeal of the Operating Agreement
shall not be deemed to be an amendment of this Agreement.

          7.8)
Limitation of Liability. 

	
  

 	
  

 
	
  

 	
           (a)
 No Member, Governor, officer, or other employee of the Company shall be
 liable, responsible or accountable in damages or otherwise to the Company, or
 to any Member, or to any other third person for any failure to act or for any
 acts performed, where such person’s failure to act or such action was in good
 faith and such person believed such action or failure to act was in the best
 interests of the Company. Except as expressly provided in the LLC Act, no
 Member, Governor, officer or other employee of the Company shall be obligated
 personally for any debts, obligations, or liabilities of the Company (whether
 arising in contract, tort or otherwise) solely by reason of being a Member or
 officer of the Company or serving on its Board.

 
	
  

 	
  

 
	
  

 	
           (b)
 Notwithstanding any provision of this Agreement or the Operating Agreement to
 the contrary, in no event will the Facility Management Member or its
 Affiliates, or any of their respective directors, officers, and employees,
 nor any agents and representatives acting on behalf 

 

- 15 -

	
  

 	
  

 
	
  

 	
 of the Facility
 Management Member or its Affiliates, be liable for any action, error or
 omission in conducting any Facility Management Activities, except to the
 extent such action, error, omission or defect is directly attributable to the
 gross negligence or willful misconduct of such Facility Management Member.

 
	
  

 	
  

 
	
  

 	
           (c)
 Notwithstanding any provision of this Agreement or the Operating Agreement to
 the contrary, in no event will PTS or its Affiliates, or any of their
 respective directors, officers, and employees, nor any agents and
 representatives acting on behalf of PTS or its Affiliates, be liable for any
 action, error or omission in conducting the Financial Services, except to the
 extent such action, error, omission or defect is directly attributable to the
 gross negligence or willful misconduct of PTS. 

 
	
  

 	
  

 
	
  

 	
           (d)
 Notwithstanding any provision of this Agreement or the Operating Agreement to
 the contrary, and without limiting the generality of the foregoing, the
 Facility Management Member or PTS, as the case may be, shall be excused from
 its respective obligations under this Agreement, and shall have no liability
 for any resulting loss or damage, in the event and to the extent that its
 performance is delayed or prevented by any circumstance reasonably beyond its
 control, including earthquake, fire, flood, epidemic, explosion, act of any
 government in its sovereign capacity, act of God or of the public enemy,
 strike, walkout or other labor dispute, riot or civil disturbance, disruption
 or unavailability of storage or transportation facilities, inability to
 obtain production from intended sources and production breakdowns.

 
	
  

 	
  

 
	
  

 	
           (e)
 None of the Members or any of their Affiliates will be liable for any
 special, consequential, incidental or punitive damages of the Company,
 another Member or any of their respective Affiliates based upon, arising out
 of or relating to this Agreement, any provision of this Agreement or the
 breach, performance, enforcement, validity or invalidity thereof (other than
 any special, consequential, incidental or punitive damage components of
 claims and awards against the Company, another Member or any of their
 respective Affiliates by third parties).

 

          7.9)
Indemnification. 

	
  

 	
  

 
	
  

 	
           (a)
 The Company shall indemnify such persons, for such expenses and liabilities,
 in such manner, under such circumstances, and to such extent as permitted by
 Minnesota Statutes Section 322B.699.

 
	
  

 	
  

 
	
  

 	
           (b)
 Without limiting the foregoing, the Company will indemnify, defend and hold
 harmless the Facility Management Member and its Affiliates, PTS and its
 Affiliates, and each of their respective directors, officers, employees, as
 well as agents and representatives acting on behalf of the Facility
 Management Member, PTS or any of their respective Affiliates (each such
 party, an “Indemnified Party”) from and against, and pay or reimburse, as the
 case may be, the Indemnified Party for, all Damages, as incurred, suffered by
 any such Person based upon, arising out of or relating to conducting the
 Facility Management Activities, the Financial Services, or acting as the
 Facility Management Member hereunder, as the case may be, except to the
 extent such Damages are based upon, arise out of or relate to the gross
 negligence or willful misconduct of the Indemnified Party in the transaction
 of their respective activities pursuant to this Agreement.

 
	
  

 	
  

 
	
  

 	
           (c)
 The indemnification provided for in this Section 7.9 will survive the
 termination of the Facility Management Activities, the Financial Services and
 this Agreement.

 

- 16 -

          7.10)
Other Ventures. Any Member may engage in or possess any interest in any
other ventures or businesses of any nature or description, independently or
with others, without limitation, including ventures or businesses which may
engage in business transactions with the Company provided such transactions
with the Company are commercially reasonable. Neither the Company nor any other
Member shall have a right by virtue of this Company to participate in any way
in any such other venture or the income or profits derived therefrom.
Notwithstanding the foregoing, each Member agrees that it will not (and it will
not permit its Affiliates to), during the period it is a Member of the Company,
and for one year thereafter, directly or indirectly, participate as owner,
investor, manager or consultant in any hydrocarbon transloading facility
anywhere in North Dakota, except through the Company; provided, however,
that any Member and its Affiliates are expressly permitted to participate in a
facility that transloads any materials other than crude oil.

ARTICLE 8

DIRECTORS AND DECISIONS OF BOARD OF GOVERNORS

          8.1)
Number. The Board of Governors of the Company shall consist of as many
natural persons as there are Members of the Company and each Member shall have
the right to appoint one Governor.

          8.2)
Term. A Governor designated in accordance with the provisions of Section
8.1 shall serve for an indefinite term until such Governor’s earlier death,
resignation, or removal. 

ARTICLE 9

RESTRICTIONS ON TRANSFER; TERMINATION

          9.1)
Restriction on Transfer or Assignment. Upon any intended transfer of the
Member’s Units, the provisions of the Buy-Sell Agreement among the Members and
the Company (the “Buy-Sell Agreement”) shall govern the process and the terms
of disposition or transfer of such Units. No Member may transfer or assign all
or any portion of such Member’s Units (other than to an Affiliate of such
member) in a transaction in which the Buy-Sell Agreement would be operative
unless such Member or its Affiliate also transfers or assigns to the same
transferee the same proportion of its units in DPTS Marketing LLC. In the
absence of any such Buy-Sell Agreement, a Member may not transfer or assign all
or any portion of such Member’s Membership Interest, whether by sale, gift,
devise, or distribution; the death, withdrawal, bankruptcy, divorce,
separation, dissolution or termination of such Member; or otherwise, except
upon the written consent of the Board.

          9.2)
Term and Termination. The Company shall exist for an initial term
expiring December 31, 2026 (the “Initial Term”), and the term shall
automatically extend in one-year renewal periods (each, a “Renewal Term”) (the
Initial Term and any Renewal Term is also referred to as a “Term”) unless and
until terminated as provided herein. The Company shall dissolve, be wound up
and terminated in the manner described below:

	
  

 	
  

 
	
  

 	
           (a)
 By Agreement. Upon the written agreement to terminate signed by all
 Members at any time during the Initial Term or a Renewal Term;

 
	
  

 	
  

 
	
  

 	
           (b)
 Member Notice. At the date of the completion of any Term if written
 notice of termination is delivered by one Member to the other Member and to
 the Company at least three years prior to the end of such Term.

 

          9.3)
Liquidation upon Termination: In the event of termination, the Company
shall engage in no further business other than that necessary to complete if
legally required any contracts entered into 

- 17 -

before termination
pursuant to Clause 9.2, and the Members shall thereafter do all such things and
take all such steps as may be necessary for the orderly winding-up of the
Company under applicable law and distribution of the remaining assets, if any,
to the Members in accordance with their respective Unit ownership in the
Company. Assets of the Company not deemed to be site improvements to real
property under that certain Amended and Restated Lease Agreement dated June 1,
2012, as amended from time to time, which shall include, without limitation,
transloaders, equipment and vehicles, shall be sold by the Transloading Manager
unless the parties appoint a liquidator. The liquidator shall be a registered
public accounting firm recognized by the Public Company Accounting Oversight
Board.

ARTICLE 10.

MISCELLANEOUS PROVISIONS

          10.1)
Risk Equivalence. The Members intend that the exposure for contributed
capital by the Members shall be maintained to the greatest extent practicable
on a basis that results in equivalent financial risk for the Members (the
concept of “Risk Equivalence”). To the extent not detrimental to the viability
and financial success of the overall operations of the Company, the Members
will work in good faith with each other to accomplish and maintain Risk
Equivalence through appropriate measures, distributions or voluntary
contributions to capital; provided, however, that nothing in this Agreement
shall be deemed to require additional capital contributions by the Members. 

          10.2)
Arbitration. Each dispute, claim and controversy (whether arising during
or after the term of this Agreement) arising out of or relating to this
Agreement or its breach, (including but not limited to the validity of the
agreement to arbitrate and the arbitrability of any matter), shall be settled,
upon demand and written notice by any Member, the Company, their legal
representatives, successors and assigns, by an arbitrator agreed upon by the
parties. If the parties are unable to agree, the dispute will be settled by
three (3) arbitrators, one (1) of whom shall be chosen by the party making such
demand, one (1) by the other party, and the third arbitrator by the two (2) so
chosen. The party demanding arbitration shall in its demand for arbitration
notify the other party of the identity of the arbitrator chosen by it. The
other party shall, within fifteen (15) days after its receipt of such written
demand for arbitration, likewise select its appointee and give written notice
of such selection. If the party receiving such demand for arbitration fails to
notify the other party in writing of the identity of the arbitrator chosen by
it within such fifteen (15) day period, or if the two (2) arbitrators so
selected are unable to agree on the selection of a third arbitrator within a
period of fifteen (15) days after the appointment of the second arbitrator, any
party may request that the Chief Judge of the District Court of Hennepin
County, Minnesota appoint such arbitrator(s). The proceedings shall in all
other respects be conducted in accordance with whichever arbitration rules are
selected by the arbitrator, or a majority vote of the arbitrators, to the
extent such rules are not inconsistent with the provisions of this arbitration
provision. The cost of the proceedings shall be shared equally by the parties,
provided, however, that each party shall be solely responsible for the costs
and expenses of its own legal counsel and any experts or consultants
representing or assisting such party in connection with the proceedings. Unless
otherwise agreed upon, the place of arbitration proceedings shall be Hennepin
County, Minnesota. The decision of the arbitrator, or a majority of the three
(3) arbitrators, shall be final and binding on all parties. Except as otherwise
provided in this Section 10.2, such arbitration shall be governed by the
commercial arbitration rules of the American Arbitration Association. This
Section 10.2 shall survive termination of the Agreement. Notwithstanding the
provisions of this Section 10.2, decisions to be made hereunder by the Board shall
not be subject to arbitration or contested in any court as all of such
decisions shall be final and binding on the Members and their respective heirs,
legal representatives, successors, and assigns; provided, that the Board is
acting within the scope of its authority pursuant to the terms of this
Agreement.

          10.3)
Equitable Relief. Section 10.2 shall not preclude the Company, or any
Governor, Member, officer, or their legal representatives, successors and
assigns from seeking an injunction, 

- 18 -

specific performance, or
other equitable relief with respect to any dispute, claim and controversy
arising out of or relating to this Agreement or its breach.

          10.4)
Notice. Any notice, demand, consent, authorization or other communication
which is required to be given under this Agreement shall be in writing and
shall be deemed to be valid and duly given if hand-delivered, telecopied,
couriered overnight, or if mailed by registered or certified mail, return
receipt requested and postage prepaid, as follows: (i) if to the Company to the
Transloading Manager at the principal office of the Company; (ii) if to a
Governor, to the Governor at the address shown on the Company’s records for
such Governor; and, (iii) if to a Member, to such Member at the address shown
on the Company’s records for such Member. Each notice, demand, request or
communication which shall be delivered, mailed or transmitted in the manner
described above shall be deemed to be received for all purposes three (3)
business days after it is deposited in the mail as provided in this Agreement
or upon actual presentation to the addressee.

          10.5)
Amendment. This Agreement together with all exhibits contains the entire
understanding of the Members governing their business relationship and the
conduct of the affairs of the Company and may be amended only upon the written
agreement of all the Members. As of the Effective Date, and on a going forward
basis only, this Agreement shall replace and supersede the Original Agreement; provided,
however, that the terms of the Original Agreement shall govern with
respect to all rights, obligations and liabilities of the parties that arise
out of or relate to the period prior to the Effective Date.

          10.6)
Limitation on Benefits of this Agreement. It is the explicit intention
of the Members that no person or entity other than the Members and the Company
is or shall be entitled to bring any action to enforce any provision of this
Agreement against any Member or the Company, and that the covenants,
undertakings and agreements set forth in this Agreement shall be solely for the
benefit of, and shall be enforceable only by, the Members (or their respective
heirs, legal representatives, successors and assigns as permitted pursuant to this
Agreement) and the Company.

          10.7)
General. Subject to any provisions contained in this Agreement
restricting assignment, this Agreement shall be binding upon and shall inure to
the benefit of the Members and their respective successors and permitted
assigns. This Agreement, the rights and obligations of the parties to this
Agreement, and any claims or disputes relating to this Agreement, shall be
governed by and construed in accordance with the laws of the State of
Minnesota. The Members agree that the Company’s assets are not and will not be
suitable for partition. The Members waive any right of partition or any right
to take any action that otherwise might be available to them for the purpose of
severing their relationship with the Company or interest in assets held by the
Company from the interest of the other Members. The representations,
warranties, indemnifications, and covenants in this Agreement shall survive the
signing and delivery of this Agreement. All pronouns and any variations shall
be deemed to refer to the masculine, feminine, neuter, singular or plural, as
the identity of the person or entity may require. Article and Section headings
contained in this Agreement are inserted for convenience of reference only,
shall not be deemed to be a part of this Agreement for any purpose, and shall
not in any way define or affect the meaning, construction or scope of any of
the provisions contained in this Agreement. To facilitate execution, this
Agreement may be executed in as many counterparts as may be required; and it
shall not be necessary that the signatures of, or on behalf of, each party, or
that the signatures of all Persons required to bind any party, appear on each
counterpart; but it shall be sufficient that the signature of, or on behalf of,
each party, or that the signatures of the Persons required to bind any party,
appear on one or more of the counterparts. All counterparts shall collectively
constitute a single agreement. It shall not be necessary in making proof of
this Agreement to produce or account for more than a number of counterparts
containing the respective signatures of, or on behalf of, all of the parties to
this Agreement.

- 19 -

          10.8)
Insurance. Each Member (a) shall use commercially reasonable efforts to obtain
insurance coverage with respect to such Member’s obligations hereunder and (b)
upon request of the other Member at any time and from time to time during the
Term, shall provide to such other Member evidence, reasonably satisfactory to
such other Member, of the effectiveness of such insurance coverage.

[Signature Page Follows]

- 20 -

          IN
WITNESS WHEREOF, the Members have executed this Agreement on December 31, 2013,
effective as of the Effective Date.

	
  

 	
  

 
	
  

 	
 DAKOTA PETROLEUM TRANSPORT 

 SOLUTIONS, LLC

 
	
  

 	
  

 
	
  

 	
      /s/ Gabriel G.
 Claypool 

 
	
  

 	
 By Gabriel G. Claypool

 
	
  

 	
 Its  Transloading Manager

 
	
  

 	
  

 
	
  

 	
 DAKOTA PLAINS TRANSLOADING, LLC

 
	
  

 	
  

 
	
  

 	
      /s/ Gabriel G.
 Claypool 

 
	
  

 	
 By Gabriel G. Claypool

 
	
  

 	
 Its  Chief Executive Officer

 
	
  

 	
  

 
	
  

 	
 PETROLEUM TRANSPORT SOLUTIONS, LLC

 
	
  

 	
  

 
	
  

 	
      /s/ Ronald Crowell 

 
	
  

 	
 By Ronald Crowell

 
	
  

 	
 Its  Sr. Vice President-Finance

 

	
  

 	
  

 	
  

 
	
  

 	
 Signature
 Page to Dakota Petroleum Transport Solutions, LLC

 	
  

 
	
  

 	
 Second
 Amended and Restated Member Control Agreement

 	
  

 

	
  

 
	
 Exhibit
 A

 
	
 to

 
	
 Second Amended and Restated
 Member Control Agreement

 
	
 of

 
	
 Dakota Petroleum
 Transport Solutions, LLC

 
	
  

 
	
 Current
 as of December 31, 2013

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Member

 	
  

 	
 Units

 	
  

 	
 Capital
 Contributions

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Dakota Plains Marketing, LLC 

 294 Grove Lane East, Wayzata, MN 55391

 	
  

 	
 1,000

 	
  

 	
 $17,550,000

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Petroleum Transport Solutions, LLC 

 605 North Highway 169, Suite 1100, Plymouth, MN 55441

 	
  

 	
 1,000

 	
  

 	
 $17,550,000

 	
  

 

	
  

 
	
 Exhibit
 B

 
	
 to

 
	
 Second Amended and
 Restated Member Control Agreement

 
	
 of

 
	
 Dakota Petroleum
 Transport Solutions, LLC

 
	
  

 
	
 Member Transaction Pricing

 

	
  

 	
  

 
	
 A.

 	
 Transloading Facility Rental.

 
	
  

 	
  

 
	
  

 	
 The Member Transaction
 Pricing shall be pursuant to the terms and provisions set forth in that
 certain Second Amended and Restated Lease Agreement effective as of January
 1, 2013 agreed upon between the Members.

 

	
  

 
	
 Exhibit
 C

 
	
 to

 
	
 Second Amended and
 Restated Member Control Agreement

 
	
 of

 
	
 Dakota Petroleum
 Transport Solutions, LLC

 
	
  

 
	
 Operations Monthly
 Deliverables

 

	
  

 	
  

 
	
 1.

 	
 Business Performance – metrics as determined by the
 Board

 
	
 2.

 	
 Operator Performance – metrics as determined by the
 Board

 
	
 3.

 	
 HSSE Performance – metrics as determined by the
 Board

 
	
 4.

 	
 Infrastructure and Equipment Maintenance

 
	
 5.

 	
 Budget Update

 
	
 6.

 	
 Special Projects Update

 
	
 7.

 	
 Such other performance metrics as determined by the
 Board

 

	
  

 
	
 Exhibit
 D

 
	
 to

 
	
 Second Amended and
 Restated Member Control Agreement

 
	
 of

 
	
 Dakota Petroleum
 Transport Solutions, LLC

 
	
  

 
	
 Accounting Monthly
 Deliverables

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Bank Statements

 
	
 2.

 	
 Trial Balance

 
	
 3.

 	
 Financial Statements and all Account Reconciliations
 that tie directly to the financial statements:

 
	
  

 	
  

 	
 •

 	
 Balance Sheet

 
	
  

 	
  

 	
  

 	
 i.

 	
  

 	
 Bank reconciliation

 
	
  

 	
  

 	
  

 	
 ii.

 	
  

 	
 A/R Trade, Intercompany A/R & A/R Aging

 
	
  

 	
  

 	
  

 	
 iii.

 	
  

 	
 Prepaid Rent 

 
	
  

 	
  

 	
  

 	
 iv.

 	
  

 	
 A/P Trade, Intercompany A/P & A/P Aging

 
	
  

 	
  

 	
  

 	
 v.

 	
  

 	
 Asset Roll-forward Schedules

 
	
  

 	
  

 	
  

 	
 vi.

 	
  

 	
 Phase II Asset /Amortization

 
	
  

 	
  

 	
  

 	
 vii.

 	
  

 	
 Phase III Asset /Amortization

 
	
  

 	
  

 	
  

 	
 viii.

 	
  

 	
 Transloading Invoice

 
	
  

 	
  

 	
 •

 	
 Income Statement

 
	
  

 	
  

 	
  

 	
 i.

 	
  

 	
 Revenue – Summarized by customer

 
	
  

 	
  

 	
  

 	
 ii.

 	
  

 	
 Transloading Hired – Summarized by volume and rate

 
	
  

 	
  

 	
  

 	
 iii.

 	
  

 	
 Professional Fees – Summarized by vendor

 
	
  

 	
  

 	
 •

 	
 Cash Flow Statement

 
	
  

 	
  

 	
 •

 	
 Member’s Capital

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