Document:

Exhibit 10.1

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

 

by and between

 

DEVON GAS SERVICES, L.P.

 

and

 

ENLINK MIDSTREAM PARTNERS, LP,

 

dated as of

 

March 23, 2015

 

 

TABLE OF CONTENTS

 

	
ARTICLE I
    	
DEFINITIONS
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE II
    	
CONTRIBUTIONS, CONVEYANCES, ACKNOWLEDGMENTS AND   DISTRIBUTIONS
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
2.1
    	
Contributions
    	
 
    	
10
    
	
2.2
    	
Consideration
    	
 
    	
10
    
	
2.3
    	
Adjusted Cash Consideration
    	
 
    	
10
    
	
2.4
    	
Assumed Contracts and Leases
    	
 
    	
12
    
	
2.5
    	
Transaction Taxes
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE III
    	
REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTOR
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
3.1
    	
Organization and Existence
    	
 
    	
12
    
	
3.2
    	
Authority and Approval; Enforceability
    	
 
    	
13
    
	
3.3
    	
No Conflict
    	
 
    	
13
    
	
3.4
    	
Consents
    	
 
    	
14
    
	
3.5
    	
Laws and Regulations; Litigation
    	
 
    	
14
    
	
3.6
    	
Environmental Matters
    	
 
    	
15
    
	
3.7
    	
Contributed Interests
    	
 
    	
15
    
	
3.8
    	
Sufficiency of Assets; Real Property
    	
 
    	
16
    
	
3.9
    	
Permits
    	
 
    	
17
    
	
3.10
    	
Brokerage Arrangements
    	
 
    	
17
    
	
3.11
    	
Investment
    	
 
    	
17
    
	
3.12
    	
Taxes
    	
 
    	
18
    
	
3.13
    	
Material Contracts
    	
 
    	
19
    
	
3.14
    	
No Adverse Changes
    	
 
    	
19
    
	
3.15
    	
Indebtedness
    	
 
    	
20
    
	
3.16
    	
Absence of Undisclosed Liabilities
    	
 
    	
20
    
	
3.17
    	
FERC
    	
 
    	
20
    
	
3.18
    	
Employment Matters
    	
 
    	
20
    
	
3.19
    	
No Other Representations or Warranties
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
4.1
    	
Organization and Existence
    	
 
    	
20
    
	
4.2
    	
Authority and Approval; Enforceability
    	
 
    	
21
    
	
4.3
    	
No Conflict
    	
 
    	
21
    
	
4.4
    	
Delivery of Fairness Opinion
    	
 
    	
22
    
	
4.5
    	
Brokerage Arrangements
    	
 
    	
22
    
	
4.6
    	
New Common Units
    	
 
    	
22
    
	
4.7
    	
Available Funds
    	
 
    	
22
    
	
4.8
    	
Investment
    	
 
    	
22
    
	
4.9
    	
Periodic Reports
    	
 
    	
23
    
	
4.10
    	
No Material Adverse Change
    	
 
    	
23
    
	
4.11
    	
No Other Representations or Warranties; Schedules
    	
 
    	
23
    

 

i

 

	
ARTICLE V
    	
COVENANTS, ETC.
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
5.1
    	
Conduct of Business
    	
 
    	
24
    
	
5.2
    	
Financial Statements
    	
 
    	
25
    
	
5.3
    	
Debt Financed Cash Consideration
    	
 
    	
25
    
	
5.4
    	
Access
    	
 
    	
26
    
	
5.5
    	
Post-Closing Receivables and Payments
    	
 
    	
26
    
	
5.6
    	
Further Assurances
    	
 
    	
26
    
	
5.7
    	
NYSE Listing
    	
 
    	
26
    
	
5.8
    	
Tax Covenants
    	
 
    	
27
    
	
5.9
    	
Consents
    	
 
    	
28
    
	
5.10
    	
Permits
    	
 
    	
29
    
	
5.11
    	
Transferring Employees and Benefits
    	
 
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
CONDITIONS TO CLOSING
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
6.1
    	
Conditions to Each Party’s Obligation to Effect the   Transactions
    	
 
    	
32
    
	
6.2
    	
Conditions to the Obligation of the Acquirer
    	
 
    	
32
    
	
6.3
    	
Conditions to the Obligation of the Contributor
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
CLOSING
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    
	
7.1
    	
Closing
    	
 
    	
34
    
	
7.2
    	
Deliveries by the Contributor
    	
 
    	
34
    
	
7.3
    	
Deliveries by the Acquirer
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
INDEMNIFICATION
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
8.1
    	
Indemnification of the Contributor and Other Parties
    	
 
    	
35
    
	
8.2
    	
Indemnification of the Acquirer and other Parties
    	
 
    	
36
    
	
8.3
    	
Demands
    	
 
    	
36
    
	
8.4
    	
Right to Contest and Defend
    	
 
    	
36
    
	
8.5
    	
Cooperation
    	
 
    	
37
    
	
8.6
    	
Right to Participate
    	
 
    	
37
    
	
8.7
    	
Reimbursements
    	
 
    	
38
    
	
8.8
    	
Limitations on Indemnification
    	
 
    	
38
    
	
8.9
    	
Survival
    	
 
    	
39
    
	
8.10
    	
Sole Remedy
    	
 
    	
39
    
	
8.11
    	
Express Negligence Rule
    	
 
    	
39
    
	
8.12
    	
Consideration Adjustment
    	
 
    	
40
    
	
8.13
    	
Knowledge
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
TERMINATION
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
9.1
    	
Events of Termination
    	
 
    	
40
    
	
9.2
    	
Effect of Termination
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE X
    	
MISCELLANEOUS
    	
 
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
10.1
    	
Expenses
    	
 
    	
41
    
	
10.2
    	
Notices
    	
 
    	
41
    

 

ii

 

	
10.3
    	
Governing Law; Consent to Jurisdiction; Waiver of Jury   Trial
    	
 
    	
42
    
	
10.4
    	
Arbitration
    	
 
    	
42
    
	
10.5
    	
Public Statements
    	
 
    	
43
    
	
10.6
    	
Form of Payment
    	
 
    	
43
    
	
10.7
    	
Entire Agreement; Amendments and Waivers
    	
 
    	
43
    
	
10.8
    	
Binding Effect and Assignment
    	
 
    	
44
    
	
10.9
    	
Severability
    	
 
    	
44
    
	
10.10
    	
Interpretation
    	
 
    	
44
    
	
10.11
    	
Headings and Schedules
    	
 
    	
45
    
	
10.12
    	
Counterparts
    	
 
    	
45
    
	
10.13
    	
Determinations by the Acquirer
    	
 
    	
45
    

 

iii

 

EXHIBITS AND SCHEDULES

 

	
Exhibits
    	
 
    
	
 
    	
 
    
	
Exhibit A
    	
Form of   Assignment and Bill of Sale of Contributed Assets
    
	
Exhibit B
    	
Form of   Assignment of Contributed Interests
    
	
 
    	
 
    
	
Schedules
    	
 
    
	
 
    	
 
    
	
Schedule 1.1(a)
    	
Knowledge   Persons
    
	
Schedule 2.3(a)(ii)
    	
Capital   Expenditures Projects
    
	
Schedule 2.4
    	
Assumed   Contracts and Leases
    
	
Schedule 3.3
    	
Non-Contravention
    
	
Schedule 3.4
    	
Consents
    
	
Schedule 3.5
    	
Litigation
    
	
Schedule 3.8(b)-1
    	
Real   Property
    
	
Schedule 3.8(b)-2
    	
Liens
    
	
Schedule   3.12(b)
    	
Taxes
    
	
Schedule 3.12(c)
    	
Tax   Audits
    
	
Schedule 3.12(d)
    	
Tax   Waivers
    
	
Schedule 3.13(a)
    	
Material   Contracts
    
	
Schedule   3.13(b)
    	
Termination   of Material Contracts
    
	
Schedule 3.14
    	
Adverse   Changes
    
	
Schedule 4.3
    	
Non-Contravention
    
	
Schedule   5.1
    	
Conduct   of Business
    
	
Schedule   5.11(a)
    	
Transferring   Employees
    
	
Schedule 6.1(c)
    	
Closing   Condition Consents
    

 

iv

 

CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

 

This Contribution, Conveyance and Assumption Agreement (this “Agreement”) is made and entered into as of March 23, 2015, by and between Devon Gas Services, L.P., a Texas limited partnership (the “Contributor”), and EnLink Midstream Partners, LP, a Delaware limited partnership (the “Acquirer”).  Each party to this Agreement is sometimes referred to in this Agreement individually as a “Party” and collectively as the “Parties.” Capitalized terms used herein and not defined have the respective meanings set forth in Article I.

 

RECITALS:

 

WHEREAS, the Contributor owns 100% of the outstanding limited liability company interests of Victoria Express Pipeline, L.L.C., a Texas limited liability company (“VEX” and such limited liability company interests, the “Contributed Interests”);

 

WHEREAS, the Contributor also owns certain rights, titles, and interests in and to the Contributed Assets;

 

WHEREAS, the Contributor intends to contribute all of the Contributed Interests and all of the Contributed Assets (collectively, the “VEX Contribution”), at the direction of the Acquirer, to EnLink Midstream Operating, LP, a Delaware limited partnership and a wholly-owned subsidiary of the Acquirer (“EnLink Operating”), as of the Effective Time in exchange for the consideration, and on the other terms and conditions, set forth in this Agreement;

 

WHEREAS, the Conflicts Committee of the Board of Directors (the “Conflicts Committee”) of EnLink Midstream GP, LLC, a Delaware limited liability company and the general partner of the Acquirer (the “General Partner”), has (i) received an opinion of Evercore Group L.L.C., the financial advisor to the Conflicts Committee (the “Financial Advisor”), that the consideration to be paid by the Acquirer pursuant to this Agreement is fair, from a financial point of view, to the Acquirer’s public common unitholders, other than EnLink Midstream, Inc. and its affiliates and the Contributor and its affiliates, and (ii) determined that the transactions contemplated by this Agreement and the Transaction Documents (the “Transactions”) are fair and reasonable to, and in the best interests of, the Acquirer and the Acquirer’s public common unitholders, other than EnLink Midstream, Inc. and its affiliates and the Contributor and its affiliates, and recommended that the Board of Directors of the General Partner approve the Transactions and, subsequently, the Board of Directors of the General Partner has approved the Transactions; and

 

WHEREAS, at the Closing, on the terms and conditions set forth in this Agreement, each of the events and transactions set forth in Section 2.1 below shall occur.

 

NOW, THEREFORE, in consideration of the mutual undertakings and agreements 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:

 

1

 

ARTICLE I
 DEFINITIONS

 

Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms below:

 

“Accountant” has the meaning set forth in Section 2.3(b)(ii).

 

“Acquirer” has the meaning set forth in the preamble to this Agreement.

 

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

 

“Acquirer Debt” has the meaning set forth in Section 5.3(a).

 

“Acquirer Financial Statements” has the meaning set forth in Section 4.9.

 

“Acquirer Fundamental Representations” means the representations and warranties of the Acquirer set forth in Sections 4.1(a), 4.2, 4.5 and 4.6.

 

“Acquirer Indemnitees” has the meaning set forth in Section 8.2.

 

“Acquirer Material Adverse Effect” means any change, circumstance, effect or condition that, individually or in the aggregate: (a) is, or would reasonably be expected to be, materially adverse to the business, condition (financial or otherwise), assets, liabilities or results of operations of the EnLink Entities, taken as a whole, other than any change, circumstance, effect or condition to the extent resulting or arising from (i) any general change in the industries in which the members of the EnLink Entities operate (including any change in the prices of crude oil or other hydrocarbon products or industry margins), (ii) any change in general market, economic, financial, political or securities market conditions generally, (iii) any change resulting from any engagement in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack, (iv) any regulatory changes or changes in Law or GAAP, (v) any change in the market price or trading volume of the Acquirer Common Units but not the underlying cause of such change or (vi) the entry into or announcement of this Agreement, actions contemplated by this Agreement or the consummation of the Transactions, provided that in the case of clauses (i), (ii), (iii) or (iv), the impact on the EnLink Entities, taken as a whole, is not disproportionate to the impact on other companies in the industries in which the members of the EnLink Entities operate, or (b) materially adversely affects, or would reasonably be expected to materially adversely affect, the Acquirer’s or its Affiliates’, as the case may be, ability to satisfy its obligations under the Transaction Documents.

 

“Acquirer Review Period” has the meaning set forth in Section 2.3(b)(ii).

 

“Actual Capital Expenditures” has the meaning set forth in Section 2.3(a)(ii).

 

“Adjusted Cash Consideration” has the meaning set forth in Section 2.3(a).

 

2

 

“Adjusted TSA Minimum Annual Payment” is equal to the product of (a) $14,143,750 and (b) (i) the number of days between August 1, 2014, and the Effective Time divided by (ii) three hundred sixty-five (365).

 

“Adjustment Notice” has the meaning set forth in Section 2.3(b).

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with, such specified Person through one or more intermediaries or otherwise; provided, however, that (a) with respect to any of the Devon Entities, the term “Affiliate” shall exclude the EnLink Entities, (b) with respect to any of the EnLink Entities, the term “Affiliate” shall exclude the Devon Entities, and (c) VEX shall be deemed to be an Affiliate of the Contributor and the Devon Entities (and not of the Acquirer or any other EnLink Entity) before the Effective Time and an Affiliate of the Acquirer and the EnLink Entities (and not of the Contributor or any other Devon Entity) at and after the Effective Time.

 

“Agreement” has the meaning set forth in the preamble to this Agreement.

 

“Assignment and Bill of Sale of Contributed Assets” means that certain Assignment and Bill of Sale of Contributed Assets in the form attached as Exhibit A hereto.

 

“Assignment of Contributed Interests” means that certain Assignment of Contributed Interests in the form attached as Exhibit B hereto.

 

“Assumed Contracts and Leases” has the meaning set forth in Section 2.4.

 

“Business” means, collectively, the crude petroleum and petroleum condensate truck unloading, transportation, terminalling and barge loading business of VEX, including the Contributed Assets and the Assumed Contracts and Leases (a) as historically conducted by VEX, the Contributor and its Affiliates, and (b) as contemplated to be conducted, consistent with prudent industry practice, following the Effective Time by Acquirer and its Affiliates.

 

“Cap” has the meaning set forth in Section 8.8(a).

 

“Cash Consideration” has the meaning set forth in Section 2.2.

 

“Closing” has the meaning set forth in Section 7.1.

 

“Closing Date” has the meaning set forth in Section 7.1.

 

“Code” has the meaning set forth in Section 7.2(h).

 

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

 

“Conflicts Committee” has the meaning set forth in the recitals to this Agreement.

 

“Consent” has the meaning set forth in Section 3.4.

 

3

 

“Contract” means any contract, commitment, instrument, undertaking, lease, sublease, note, mortgage, conditional sales contract, license, sublicense, franchise agreement, indenture, settlement, Permit or other legally binding agreement.

 

“Contributed Assets” has the meaning set forth in Section 1 of the Assignment and Bill of Sale of Contributed Assets.

 

“Contributed Interests” has the meaning set forth in the recitals to this Agreement.

 

“Contributor” has the meaning set forth in the preamble to this Agreement.

 

“Contributor Indemnitees” has the meaning set forth in Section 8.1.

 

“Control” means, where used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling” and “Controlled” have correlative meanings.

 

“Cuero Product Storage and Terminal Agreement” means a Cuero Product Storage and Terminal Agreement in a form to be mutually agreed by the Parties prior to the Closing.

 

 “Damages” has the meaning set forth in Section 8.1.

 

“De Minimis Claim” has the meaning set forth in Section 8.8(a).

 

“Debt” means (a) any indebtedness or other obligation for borrowed money; (b) any indebtedness evidenced by any note, bond, debenture or other security or similar instrument; (c) any Liabilities for the deferred purchase price of property or other assets (including any “earn-out” or similar payments) (other than trade account payables incurred in the ordinary course of business consistent with past practice); (d) any Liabilities in respect of any lease of real or personal property (or a combination thereof), which Liabilities are required to be classified and accounted for under GAAP as capital leases (other than truck leases); (e) any accrued interest, premiums, termination payments, penalties, “breakage costs,” redemption fees, make-whole payments and other obligations relating to the foregoing; and (f) any guarantee of indebtedness referred to in clauses (a) through (e).

 

“Debt Financed Cash Consideration” has the meaning set forth in Section 5.3(a).

 

“Deductible” has the meaning set forth in Section 8.8(a).

 

“Determination Date” has the meaning set forth in Section 2.3(b)(ii).

 

“Devon” means Devon Energy Corporation, a Delaware corporation.

 

“Devon Entities” means the Contributor and any other Person Controlled by Devon, other than the EnLink Entities.

 

“Disability Employee” has the meaning set forth in Section 5.11(a).

 

4

 

“Dispute” has the meaning set forth in Section 10.4.

 

“Effective Time” has the meaning set forth in the preamble of the Assignment and Bill of Sale of Contributed Assets.

 

“Enforceability Exceptions” has the meaning set forth in Section 3.2.

 

“EnLink Entities” means EnLink Manager and any other Person Controlled by EnLink Manager.

 

“EnLink Manager” means EnLink Midstream Manager, LLC, a Delaware limited liability company.

 

“EnLink Operating” has the meaning set forth in the recitals to this Agreement.

 

“Environmental Laws” means any and all applicable federal, state and local Laws relating to the prevention of pollution or protection of human health, natural resources, endangered species or the environment or imposing liability or standards of conduct concerning any handling or transportation of Hazardous Materials.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Excluded Assets” means all of the crude petroleum and petroleum condensate inventory, including tank bottoms, held in the VEX Pipeline and POV Terminal Facilities as of the Effective Time.

 

“FERC” means the Federal Energy Regulatory Commission.

 

“Financial Advisor” has the meaning set forth in the recitals to this Agreement.

 

“Fundamental Representations” means the representations and warranties of the Contributor set forth in Sections 3.1(a), 3.1(c), 3.2, 3.7, 3.10 and 3.11.

 

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

 

“General Partner” has the meaning set forth in the recitals to this Agreement.

 

“Governmental Approval” has the meaning set forth in Section 3.4.

 

“Governmental Authority” means (a) any supranational, national, federal, state, local, municipal, foreign or other governmental or quasi-governmental authority and (b) any department, agency, commission, board, subdivision, bureau, instrumentality, court or other tribunal of any of the foregoing in clause (a).

 

“Hazardous Material” means (a) any “hazardous substance” as defined in the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 

 

5

 

(b) any “hazardous waste” as defined in the Resource Conservation and Recovery Act, as amended, (c) any petroleum or petroleum product, (d) any polychlorinated biphenyl and (e) any pollutant or contaminant or hazardous, dangerous or toxic chemical, material, waste or substance regulated under or within the meaning of any applicable Environmental Law.

 

“Indemnity Claim” has the meaning set forth in Section 8.3.

 

“JAMS” has the meaning set forth in Section 2.3(b)(ii).

 

“Knowledge of Contributor” or “Contributor’s Knowledge” and any variations thereof or words to the same effect means the actual knowledge of the persons set forth on Schedule 1.1(a) hereto.

 

“Law” means all laws (including common law), statutes, rules, regulations, ordinances, directives, Orders or any similar provisions having the force or effect of Law of any Governmental Authority.

 

“Liability” or “Liabilities” means any direct or indirect liability, indebtedness, Damage, Tax, interest, penalty, amount paid in settlement, judgment, assessment, deficiency, guaranty or endorsement of or by any Person, in the case of each of the foregoing, whether absolute or contingent, matured or unmatured, asserted or unasserted, accrued or unaccrued, due or to become due, liquidated or unliquidated.

 

“Lien” means any lien, mortgage, security interest, pledge, deposit, option, easement, right of way, charge or encumbrance, encroachment, conditional sales agreement, deed of trust, deed to secure indebtedness or other similar restriction.

 

“Litigation” has the meaning set forth in Section 3.5.

 

“Material Adverse Effect” means any change, circumstance, effect or condition that, individually or in the aggregate: (a) is, or would reasonably be expected to be, materially adverse to the business, condition (financial or otherwise), assets, liabilities or results of operations of the Business, other than any such change, circumstance, effect or condition to the extent resulting or arising from (i) any change in the crude petroleum and petroleum condensate transportation industry generally (including any change in the prices of crude oil or other hydrocarbon products or industry margins), (ii) any change in general market, economic, financial, political or securities market conditions generally, (iii) any change resulting from any engagement in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack, (iv) any regulatory changes or changes in Law or GAAP or (v) the entry into or announcement of this Agreement, actions contemplated by this Agreement or the consummation of the Transactions, provided that in the case of clauses (i), (ii), (iii) or (iv), the impact on the Business is not disproportionate to the impact on other crude petroleum and petroleum condensate transportation companies; or (b) materially adversely affects, or could reasonably be expected to materially adversely affect, the Contributor’s or its Affiliates’, as the case may be, ability to satisfy its obligations under the Transaction Documents.

 

“Material Contract” means (a) any Contract that, as of the date hereof, is reasonably expected to result in revenues to VEX in an amount greater than $250,000 during any calendar 

 

6

 

year, (b) any Contract relating to the ownership, use or operation of the Business or the Contributed Assets that, as of the date hereof, is reasonably expected to provide for revenues to, costs or expenses of or require commitments in an amount greater than $250,000 during any calendar year, (c) the Assumed Contracts and Leases and (d) any other Contract (other than (i) any Contract granting any Permits, servitudes, easements or rights-of-way or (ii) any MSSA wherein VEX is not the sole Subsidiary of Devon listed as a “company” for purposes of such MSSA) affecting the ownership, use or operation of the VEX Pipeline or the Contributed Assets, the loss of which could have a Material Adverse Effect.

 

“Material VEX Permits” has the meaning set forth in Section 3.9.

 

“MSSA” means Master Service and Supply Agreement.

 

“Negotiation Period” has the meaning set forth in Section 2.3(b)(ii).

 

“New Common Units” means 338,159 Acquirer Common Units.

 

“Omnibus Agreement” means an Omnibus Agreement in a form to be mutually agreed by the Parties prior to the Closing.

 

“Order” means any order, decision, judgment, writ, injunction, decree, award or other determination of any Governmental Authority.

 

“Organizational Documents” means, with respect to any Person, the articles of incorporation, certificate of incorporation, certificate of formation, certificate of limited partnership, bylaws, limited liability company agreement, operating agreement, partnership agreement, stockholders’ agreement, and all other similar documents, instruments or certificates executed, adopted or filed in connection with the creation, formation or organization of such Person, including any amendments thereto.

 

“Party” or “Parties” has the meaning set forth in the preamble to this Agreement.

 

“Permits” means permits, licenses, certificates, Orders, approvals, authorizations, grants, consents, concessions, warrants, franchises, registrations, exemptions, variances, permissions and similar rights and privileges.

 

“Permitted Liens” has the meaning set forth in Section 3.8(b).

 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

“Port of Victoria Product Storage and Terminal Agreement” means a Port of Victoria Product Storage and Terminal Agreement in a form to be mutually agreed by the Parties prior to the Closing.

 

“Post-Closing Statement” has the meaning set forth in Section 2.3(b).

 

7

 

 “POV Terminal Facilities” has the meaning set forth in Section 1(a) of the Assignment and Bill of Sale of Contributed Assets.

 

“Pre-Closing Period” has the meaning set forth in Section 5.1.

 

“Real Property” has the meaning set forth in Section 3.8(b).

 

“Required Rights” has the meaning set forth in Section 3.8(e)(i).

 

“Retention Letters” has the meaning set forth in Section 5.11(d).

 

“RRC” means the Railroad Commission of Texas.

 

“SEC Documents” has the meaning set forth in Section 4.9.

 

“Securities Act” has the meaning set forth in Section 3.11.

 

“Separation Benefits” has the meaning set forth in Section 5.11(c)(i).

 

“Straddle Period” has the meaning set forth in Section 5.8(b).

 

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than fifty percent (50%) of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than fifty percent (50%) of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof; or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person; provided, however, that with respect to the Contributor, the term “Subsidiary” shall exclude the EnLink Entities. For the avoidance of doubt, VEX shall be deemed to be a Subsidiary of the Contributor (and not of the Acquirer) before the Effective Time and a Subsidiary of the Acquirer (and not of the Contributor) at and after the Effective Time.

 

“Target Interim Capital Expenditures” means an amount equal to $141,200,000.

 

“Tax” or “Taxes” means (a) any federal, state, local or foreign income tax, ad valorem tax, excise tax, sales tax, use tax, franchise tax, real or personal property tax, transfer tax, gross receipts tax or other tax, assessment, duty, fee, levy or other governmental charge, together with and including, any and all interest, fines, penalties, assessments, and additions to tax resulting from, relating to, or incurred in connection with any of those or any contest or dispute thereof; and (b) any liability for any item described in (a) payable by reason of contract, assumption, 

 

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transferee liability, operation of law (e.g., a liability for the payment of any amounts of the type described in clause (a) as a result of being a member of a consolidated, combined or unitary group for any period) or otherwise.

 

“Tax Authority” means any Governmental Authority having jurisdiction over the imposition, collection, administration, payment or reporting of any Tax.

 

“Tax Proceeding” has the meaning set forth in Section 5.8(d).

 

“Tax Return” means any report, statement, form, return, declaration, claim for refund or other document or information (including any related or supporting information or schedules) required to be supplied to a Tax Authority in connection with Taxes, including any supplement or amendment thereof.

 

“Transaction Documents” means this Agreement, the Assignment of Contributed Interests, the Assignment and Bill of Sale of Contributed Assets, the Omnibus Agreement, the POV Product Storage and Terminalling Agreement, the Cuero Terminalling Agreement, the Transition Services Agreement and each of the other documents and certificates to be delivered at Closing pursuant to Section 7.2 and Section 7.3.

 

“Transaction Taxes” has the meaning set forth in Section 2.5.

 

“Transactions” has the meaning set forth in the recitals to this Agreement.

 

“Transferring Employee” has the meaning set forth in Section 5.11(a).

 

“Transition Services Agreement” means a Transition Services Agreement in a form to be mutually agreed by the Parties prior to the Closing.

 

“Treasury Regulations” means the regulations (including temporary regulations) promulgated by the United States Department of the Treasury pursuant to and in respect of provisions of the Code.  All references herein to sections of the Treasury Regulations shall include any corresponding provision or provisions of succeeding, similar or substitute, temporary or final Treasury Regulations.

 

“TSA” means that certain Transportation Services Agreement related to the VEX Pipeline between VEX, as carrier, and the Contributor, as shipper, dated June 27, 2014.

 

“VEX” has the meaning set forth in the recitals to this Agreement.

 

“VEX Contribution” has the meaning set forth in the recitals to this Agreement.

 

“VEX Pipeline” means that certain 56-mile, 12 inch FERC regulated pipeline and appurtenant facilities owned by VEX and originating near the Black Hawk North Central Delivery Point in DeWitt County, Texas and ending at the Port of Victoria in Victoria County, Texas.

 

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ARTICLE II
 CONTRIBUTIONS, CONVEYANCES, ACKNOWLEDGMENTS AND DISTRIBUTIONS

 

2.1          Contributions.  At the Closing, on the terms and subject to the conditions of this Agreement, the Contributor shall contribute, assign, transfer and convey, at the direction of the Acquirer, to EnLink Operating (i) all of the Contributed Interests free and clear of Liens (other than restrictions under applicable federal and state securities laws) and (ii) all of the Contributed Assets free and clear of Liens (other than Permitted Liens), in exchange for the consideration set forth in Section 2.2, and the Acquirer shall cause EnLink Operating to accept the VEX Contribution. The Acquirer expressly understands and agrees that the Contributor is not contributing, assigning, transferring or conveying the Excluded Assets.

 

2.2          Consideration.  At the Closing, in consideration for the VEX Contribution, the Acquirer shall: (a) pay to the Contributor an amount in cash equal to $171.0 million (the “Cash Consideration”), at least forty percent (40%) of which shall be sourced by the Acquirer solely from proceeds of the Acquirer Debt; and (b) issue the New Common Units to the Contributor.

 

2.3          Adjusted Cash Consideration.

 

(a)           The Cash Consideration shall be adjusted as follows (the adjusted amount being the “Adjusted Cash Consideration”):

 

(i)            increased by an amount, if greater than zero dollars ($0.00), equal to (A) the actual amount of payments received by VEX from the Contributor with respect to Actual Shipments (as such term is defined in the TSA) made by the Contributor from August 1, 2014 until the Effective Time, subtracted from (B) the Adjusted TSA Minimum Annual Payment; and

 

(ii)           (A) decreased by the amount by which the Target Interim Capital Expenditures exceeds the actual amount of capital expenditures for ongoing projects made by the Contributor and its Affiliates prior to the Effective Time in furtherance of completion of the projects listed on Schedule 2.3(a)(ii) (the “Actual Capital Expenditures”) or (B) increased by the amount by which the Actual Capital Expenditures exceeds the Target Interim Capital Expenditures.

 

At least two business days prior to the Closing, the Contributor shall prepare and deliver to the Acquirer a statement setting forth in reasonable detail the Contributor’s estimated calculation of the Adjusted Cash Consideration.

 

(b)           On or about August 31, 2015, the Contributor shall prepare and deliver to the Acquirer a statement (the “Post-Closing Statement”) setting forth the Contributor’s final calculation of the Adjusted Cash Consideration. The Contributor shall thereafter provide to the Acquirer such additional data and information as Acquirer may reasonably request to verify the amounts reflected on the Post-Closing Statement (and reasonable access to the Contributor’s personnel, including internal accountants, which access shall not unreasonably disrupt the Contributor’s day-to-day operations) to permit the Acquirer to perform or cause to be performed an audit. As soon as reasonably practicable, but not later than thirty (30) days following receipt of the Post-Closing Statement (the “Acquirer Review Period”) hereunder, the Acquirer shall deliver to the Contributor a written report (an “Adjustment Notice”) containing any changes the

 

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Acquirer proposes to be made in the Post-Closing Statement. The Acquirer shall be deemed to have accepted and agreed to all items in the Post-Closing Statement, other than such matters that are proposed to be changed in any Adjustment Notice (it being understood that if the Acquirer does not deliver to the Contributor an Adjustment Notice during the Acquirer Review Period, then the Acquirer shall be deemed to have accepted and agreed to all items in the Post-Closing Statement and the Adjusted Cash Consideration as set forth therein shall be considered conclusive and binding on the Parties). The Parties shall use commercially reasonable efforts to agree on the final Adjusted Cash Consideration no later than thirty (30) days after delivery of any Adjustment Notice in accordance with the foregoing (such period, the “Negotiation Period”). If an Adjustment Notice is delivered in accordance with the foregoing and the final Adjusted Cash Consideration is:

 

(i)            mutually agreed upon in writing by the Parties during the Negotiation Period, the final Adjusted Cash Consideration set forth in the Post-Closing Statement shall be considered conclusive and binding on the Parties; or

 

(ii)           not mutually agreed upon by the Contributor and the Acquirer during the Negotiation Period, then the Parties shall mutually select an internationally recognized, independent accounting firm (the “Accountant”) to resolve any disagreements. Should the Parties fail to agree on the Accountant within thirty (30) days following the expiration of the Negotiation Period or should such Accountant fail or refuse to agree to serve as the Accountant within ten (10) days after written request from the Parties to serve, and should the Parties fail to agree in writing on a replacement Accountant within five (5) days after the end of that ten (10) day period, or should no replacement Accountant agree to serve within fifteen (15) days after the original written request pursuant to this sentence, the Accountant shall be appointed by JAMS, Inc. (“JAMS”) pursuant to the procedures set forth in Section 10.4. The Accountant shall determine as promptly as practicable, but in any event within thirty (30) days after its selection, based solely on (x) written submissions provided to the Accountant by the Parties within ten (10) days following the Accountant’s selection (and without independent investigation on the part of the Accountant) and (y) the terms and provisions of this Agreement, whether and to what extent (if any) the Contributor’s Post-Closing Statement requires adjustment. In resolving any disputed item, the Accountant shall act as an expert and not an arbitrator and shall resolve only the items set forth in the Adjustment Notice that are still in dispute and may not assign a value to any item greater than the higher value for such item claimed by either Party or less than the lower value for such item claimed by either Party. The Accountant may not award damages or penalties. Each Party shall bear its own legal fees and other costs of presenting its case to the Accountant, and one-half (1/2) of the costs and expenses of the Accountant incurred in resolving such disputed matters. The determination of the Accountant shall be final, conclusive and binding on the Parties. The date on which the final Adjusted Cash Consideration is finally determined in accordance with Section 2.3(b), if the Acquirer does not timely submit an Adjustment Notice, or Section 2.3(b)(i) or this Section 2.3(b)(ii), if the Acquirer timely submits an Adjustment Notice, is referred to as the “Determination Date.”

 

(c)           Any difference between (i) the Cash Consideration and (ii) the final Adjusted Cash Consideration shall be paid by the owing Party to the owed Party within ten (10) days of the Determination Date.

 

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2.4          Assumed Contracts and Leases.  The VEX Contribution is subject to the assumption by the Acquirer or its designated Affiliates of all the contracts and leases set forth on Schedule 2.4 (the “Assumed Contracts and Leases”). The Acquirer hereby assumes (or shall cause its designated Affiliate to assume) and shall perform, pay and discharge (or shall cause its designated Affiliate to perform, pay and discharge) when due all liabilities and obligations arising or relating to the Assumed Contracts and Leases. Nothing contained herein shall prevent Acquirer or its designated Affiliates, as applicable, from contesting in good faith any of the liabilities arising pursuant to this Section 2.4 with any third-party obligee.

 

2.5          Transaction Taxes.  All excise, sales, use, transfer (including real property transfer), stamp, documentary, filing, recordation, registration and similar Taxes arising directly and solely from or associated with the transactions contemplated by this Agreement other than Taxes based on income (“Transaction Taxes”), shall be borne fifty percent (50%) by the Contributor and fifty percent (50%) by the Acquirer. The Contributor shall pay or cause to be paid to the applicable Tax Authority any Transaction Taxes that are required by Law to be collected and remitted. The Acquirer shall pay to the Contributor its share of any such Transaction Taxes within thirty (30) days of the Contributor’s written demand therefor, which written demand must include evidence satisfactory to the Acquirer that such Transaction Taxes have been duly filed and paid. The Parties shall provide such certificates and other information and otherwise cooperate to the extent reasonably required to minimize Transaction Taxes.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTOR

 

The Contributor represents and warrants to the Acquirer that:

 

3.1          Organization and Existence.

 

(a)           The Contributor is a limited partnership duly organized and is validly existing and in good standing under the laws of the State of Texas with full limited partnership power and authority to own, lease and operate the properties and assets it now owns, leases and operates and to carry on its business as and where such properties and assets are now owned or held and such business is now conducted.

 

(b)           The Contributor is duly qualified to transact business and is in good standing as a foreign entity in each other jurisdiction in which such qualification is required for the conduct of its business, except where the failure to so qualify or to be in good standing would not reasonably be expected to have a Material Adverse Effect.

 

(c)           VEX has been duly organized as a limited liability company, and is validly existing and in good standing, under the laws of the state of Texas, with full limited liability company power and authority to own, lease, use and operate the properties and assets it now owns, leases, uses and operates, and to carry on its business as and where such properties and assets are now owned or held and such business is now conducted.

 

(d)           VEX is duly qualified to transact business and is in good standing as a foreign entity in each other jurisdiction in which such qualification is required for the conduct of its business, except where the failure to so qualify or to be in good standing would not reasonably

 

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be expected to have a Material Adverse Effect.  The Contributor has delivered to the Acquirer correct and complete copies of VEX’s Organizational Documents, as amended to date.  There is no pending, or, to the Contributor’s Knowledge, threatened, action for the dissolution, liquidation or insolvency of VEX.

 

3.2          Authority and Approval; Enforceability.  The Contributor has the limited partnership power and authority to execute and deliver this Agreement and the Contributor and each of its Affiliates has requisite power and authority to execute and deliver any other Transaction Document to which it is or will be a party, to consummate the Transactions and to perform all the terms and conditions of this Agreement and the Transaction Documents to be performed by it.  The execution and delivery by the Contributor of this Agreement and the execution and delivery by the Contributor and each of its Affiliates, as applicable, of any Transaction Document to which it is or will be a party, the performance by the Contributor or its applicable Affiliate of all the terms and conditions hereof and thereof to be performed by it and the consummation of the Transactions have been duly authorized and approved by all requisite limited partnership, limited liability company, corporate or other action of the Contributor and each other applicable Affiliate of the Contributor. Each of this Agreement and any other Transaction Document to which the Contributor or any other Affiliate of the Contributor is or will be a party constitutes or will constitute, upon execution and delivery by each of the parties thereto, the valid and binding obligation of the Contributor or such Affiliate of the Contributor, enforceable against the Contributor or such Affiliate of the Contributor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting enforcement of creditors’ rights generally and by general principles of equity (whether applied in a proceeding at law or in equity) (the “Enforceability Exceptions”).

 

3.3          No Conflict.  Other than as set forth on Schedule 3.3, the execution by the Contributor or its applicable Affiliate of this Agreement and the other Transaction Documents to which the Contributor or any such Affiliate of the Contributor is or will be a party do not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the Transactions will not:

 

(a)           conflict with any of the provisions of the Organizational Documents of the Contributor or any of its Affiliates;

 

(b)           conflict with any provision of any Law or Order applicable to the Contributor or any of its Affiliates;

 

(c)           conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both) or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, or give others the right to terminate any indenture, mortgage, Lien or Contract to which the Contributor or any of its Affiliates is a party or by which any of them is bound or to which any of the Contributed Interests or any of the Contributed Assets are subject;

 

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(d)           result in the creation of, or afford any Person the right to obtain, any Lien on the capital stock or other equity interests, property or assets of the Contributor or any of its Affiliates under any such Contract; or

 

(e)           result in the revocation, cancellation, suspension or material modification of any Governmental Approval possessed by the Contributor or any of its Affiliates that is necessary or desirable for the ownership, lease or operation of the Business as now conducted by the Contributor and its Affiliates in all material respects, including any Governmental Approvals under any applicable Environmental Law;

 

except, in the case of clauses (b), (c), (d) and (e) as would not be reasonably expected to have a Material Adverse Effect and except for such as will have been cured at or prior to the Effective Time.

 

3.4          Consents.  Other than as set forth in Schedule 3.4 (each item so listed, a “Consent”), no consent, approval, license, Permit, order, waiver, or authorization of, or registration, declaration, or filing with any Governmental Authority (each a “Governmental Approval”) or other Person is required to be obtained or made by or with respect to the Contributor or any of its Affiliates in connection with:

 

(a)           the execution, delivery, and performance of this Agreement or the other Transaction Documents, or the consummation of the Transactions;

 

(b)           the enforcement against the Contributor or any of its Affiliates of its obligations under this Agreement or the other Transaction Documents; or

 

(c)           the conduct by the Acquirer of the Business immediately following the Closing as was conducted prior to the Closing;

 

except, in each case, as would not be reasonably expected to have a Material Adverse Effect.

 

3.5          Laws and Regulations; Litigation.  Except as set forth in Schedule 3.5 there are no pending or, to the Contributor’s Knowledge, threatened claims, fines, actions, suits, litigation, demands, assertions, hearings, audits, investigations or proceedings (whether civil, criminal, administrative or investigative) or any arbitration or binding dispute resolution proceeding (collectively, “Litigation”) against the Contributor or VEX or any of their respective properties as a result of or in connection with the ownership and operation of the Business or the Contributed Interests (other than Litigation under any Environmental Law, which is the subject of Section 3.6) that (i) would be reasonably expected to have a Material Adverse Effect or (ii) seek any material injunctive relief with respect to the Business.  The Business is, and, during the last eight (8) months for the VEX Pipeline and during the last twelve (12) months for the POV Terminal Facilities, has been, in compliance with all Laws (other than Environmental Laws, which are the subject of Section 3.6) of any Governmental Authority applicable to it, other than any noncompliance which is not material to the Business.  No Litigation is pending or, to the Contributor’s Knowledge, threatened to which the Contributor or any of its Affiliates is or may become a party that questions or involves the validity or enforceability of any of its respective obligations under this Agreement or the other Transaction Documents or seeks to prevent or delay, or damages in connection with, the consummation of the Transactions.

 

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3.6          Environmental Matters.  With respect to the Business, VEX and the Contributed Assets:

 

(a)           are and during relevant time periods specified in all applicable statutes of limitations or in the event there is no applicable statute of limitation, since January 1, 2010, have been in compliance in all material respects with all Environmental Laws;

 

(b)           are not the subject of any outstanding material unresolved Order, agreement or arbitration award from any Governmental Authority under any Environmental Law relating to the Business;

 

(c)           have received all material Permits required of them under applicable Environmental Laws necessary to conduct the Business as presently conducted or in light of the current stage of development or construction;

 

(d)           are in compliance in all material respects with all material terms and conditions of any such Permits;

 

(e)           are not subject to any pending or, to the Contributor’s Knowledge, threatened Litigation under any Environmental Law with respect to which the Contributor or any of its Subsidiaries has been contacted in writing by or on behalf of the actual or potential plaintiff or claimant and that would be material in nature; and

 

(f)            do not have any Liability in connection with damage to natural resources or the release into the environment of any Hazardous Material that would reasonably be expected to be material in nature.

 

3.7          Contributed Interests.

 

(a)           The Contributed Interests (i) constitute one hundred percent (100%) of the limited liability company interests in VEX and (ii) are duly authorized, validly issued and fully paid (to the extent required by VEX’s Organizational Documents) and non-assessable (except as such non-assessability may be affected by the Texas Business Organizations Code). The Contributed Interests are not subject to and were not issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of local or state law applicable to such interests, VEX’s Organizational Documents, or any Contract to which the Contributor or any of its Affiliates is a party or to which it or any of its properties or assets is otherwise bound.

 

(b)           As of immediately prior to the Closing, the Contributor has good and valid record and beneficial title to the Contributed Interests, free and clear of any and all Liens, and, except for restrictions under applicable federal and state securities laws or as provided in VEX’s Organizational Documents, the Contributed Interests are free and clear of any restrictions on transfer, Taxes, or claims.  There are no options, warrants, purchase rights, Contracts or other securities exercisable or exchangeable for any equity interests of VEX, any other commitments or Contracts providing for the issuance of additional equity interests, or for the repurchase or redemption of the Contributed Interests, or any Contracts of any kind which may obligate VEX to issue, purchase, register for sale, redeem or otherwise acquire any of its equity interests.

 

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Immediately after the Closing, EnLink Operating will have good and valid record and beneficial title to such Contributed Interests, free and clear of any Liens, and, except for restrictions under applicable federal and state securities laws or as provided in VEX’s Organizational Documents, free and clear of any restrictions on transfer, Taxes, or claims.

 

3.8          Sufficiency of Assets; Real Property.

 

(a)           The VEX Contribution, together with the Assumed Contracts and Leases, are sufficient in all material respects to conduct the Business as such Business is currently being conducted.

 

(b)           Schedule 3.8(b)-1 sets forth all of the real property owned or leased in connection with the Business (the “Real Property”) and indicates whether such Real Property is owned or leased. Except as set forth in Schedule 3.8(b)-2, VEX or the Contributor has valid and indefeasible title in fee to all owned Real Property and valid leasehold interests in all leased Real Property (including rights of way), in each case, except as would not, individually or in the aggregate, reasonably be expected to materially interfere with the use or occupancy of the Real Property as it is currently being used or occupied. VEX or the Contributor owns or leases all such Real Property and interests in Real Property free and clear of any Liens except (i) those set forth in Schedule 3.8(b)-2, (ii) mechanics’, carriers’, workmen’s, repairmen’s or other similar Liens arising or incurred in the ordinary course of business consistent with past practices and that are not yet delinquent or can be paid without penalty or are being contested in good faith and by appropriate proceedings in respect thereof and for which an appropriate reserve has been established in accordance with GAAP, (iii) Liens for current Taxes that are not yet due and payable or are being contested in good faith and by appropriate proceedings in respect thereof and for which an appropriate reserve has been established in accordance with GAAP, (iv) Liens securing Debt of the Contributor or any of its Affiliates that will be released prior to or as of the Closing and (v) other imperfections of title or encumbrances that would not reasonably be expected to materially interfere with the use or occupancy of the Real Property as it is currently being used or occupied (the Liens described in clauses (i), (ii), (iii), (iv) and (v) above, being referred to collectively as “Permitted Liens”).

 

(c)           To the Contributor’s Knowledge, there is or will be at the Closing current access to public roads from the Real Property.

 

(d)           VEX is not a party to, nor, to the Contributor’s Knowledge, is bound by, any outstanding third-party rights to purchase, lease or in any way acquire any of the owned Real Properties or interests therein (including without limitation any rights of first refusal, options or other similar right of any kind) nor has VEX granted a possessory right or a right of occupancy with respect to the owned Real Property other than as disclosed by any matters of record.

 

(e)           Other than as specifically set forth to the contrary on Schedule 3.8(b)-2, to the Contributor’s Knowledge, VEX has:

 

(i)            such consents, easements, rights-of-way, approvals, rights, Permits and licenses from all Governmental Authorities and other Persons as are sufficient to occupy and use the Real Property and continue to carry out the operations associated therewith, in all material

 

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respects, substantially in the manner in which the Real Property is currently occupied, used and operated (collectively, “Required Rights”); and

 

(ii)           fulfilled and performed all its material obligations with respect to any Required Rights and no default or other event has occurred that allows (or after notice or lapse of time would allow) revocation or termination thereof or would result in any material impairment of the rights of the holder of any Required Rights.

 

(f)            The Contributor has good title to all owned and valid interests in all leased tangible personal property included in the Contributed Assets, free and clear of all Liens, except Permitted Liens, other than tangible personal property owned on the date of this Agreement but subsequently sold or otherwise disposed of in compliance with Section 5.1. All tangible personal property included in the Contributed Assets and not undergoing construction as of the date of this Agreement is in good operating condition and repair (normal wear and tear excepted) and has been maintained in accordance with generally accepted industry practice, and is sufficient in all material respects for the purposes for which it is currently being used or held for use

 

3.9          Permits.  VEX holds or has a valid right to use, all Permits (other than environmental Permits, which are the subject of Section 3.6) that are necessary or desirable for the conduct of the Business (the “Material VEX Permits”), each in material compliance with applicable Laws.  The Contributor or its Affiliates have complied in all material respects with all terms and conditions of the Material VEX Permits.  None of such Material VEX Permits will be subject to suspension, modification, revocation or nonrenewal as a result of the execution and delivery of this Agreement or the other Transaction Documents or the consummation of the Transactions.  There is no outstanding written notice, nor to the Contributor’s Knowledge, any other notice of revocation, cancellation or termination of any Material VEX Permit.  No Litigation is pending or, to the Contributor’s Knowledge, threatened with respect to any alleged failure by the Contributor or its Affiliates (i) to have any Material VEX Permit necessary for the conduct of the Business and the ownership and operation of the VEX Pipeline or (ii) to be in compliance with any Material VEX Permit.

 

3.10        Brokerage Arrangements.  Neither the Contributor nor any of its Affiliates has entered, directly or indirectly, into any Contract with any Person that would obligate the Acquirer or any of its Affiliates to pay any commission, brokerage or “finder’s fee” or other fee in connection with this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby.

 

3.11        Investment.  The Contributor is an “accredited investor” as such term is defined in Rule 501 promulgated under the Securities Act of 1933, as amended (the “Securities Act”). The Contributor is familiar with investments of the nature of the New Common Units, understands that this investment involves substantial risks, has adequately investigated the Acquirer and the New Common Units, and has substantial knowledge and experience in financial and business matters such that it is capable of evaluating, and has evaluated, the merits and risks inherent in purchasing the New Common Units, and is able to bear the economic risks of such investment. The Contributor has had the opportunity to visit with the Acquirer and meet with the officers of the General Partner and other representatives to discuss the business, assets, liabilities, financial condition, and operations of the Acquirer, has received all materials, documents and other

 

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information that the Contributor deems necessary or advisable to evaluate the Acquirer and the New Common Units, and has made its own independent examination, investigation, analysis and evaluation of the Acquirer and the New Common Units, including its own estimate of the value of the New Common Units.  The Contributor has undertaken such due diligence (including a review of the properties, liabilities, books, records and contracts of the Acquirer) as the Contributor deems adequate. The Contributor acknowledges that the New Common Units have not been registered under applicable federal and state securities laws and that the New Common Units may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is registered under applicable federal and state securities laws or pursuant to an exemption from registration under any federal or state securities laws.

 

3.12        Taxes.

 

(a)           All Tax Returns that are required to be filed by or with respect to VEX (or any of its Subsidiaries), the Contributed Assets or the Business at or prior to the Effective Time (taking into account any valid extension of time within which to file) have been or will be timely filed at or prior to the Effective Time and all such Tax Returns are or will be true, correct and complete in all material respects.

 

(b)           Except as set forth on Schedule 3.12(b) all Taxes due and payable on or prior to the Closing Date by or with respect to VEX (or any of its Subsidiaries) the Contributed Assets of the Business (in each case, whether or not shown on any Tax Return) have been fully paid and all deficiencies asserted or assessments made with respect to such Taxes have been paid in full or properly accrued for by the Contributor.

 

(c)           Except as set forth on Schedule 3.12(c), no examination, audit, claim, assessment, levy, or administrative or judicial proceeding regarding any of the Tax Returns described in Section 3.12(a) or any Taxes of or with respect to VEX (or any of its Subsidiaries), the Contributed Assets or the Business is currently pending, has been proposed in writing or has been threatened.

 

(d)           Except as set forth on Schedule 3.12(d), no waivers or extensions of statutes of limitations have been given or requested in writing with respect to any amount of Taxes of or with respect to VEX (or any of its Subsidiaries), the Contributed Assets or the Business or any Tax Returns of or with respect to VEX (or any of its Subsidiaries), the Contributed Assets or the Business.

 

(e)           VEX (and each of its Subsidiaries) will, at Closing, be treated as disregarded as an entity separate from its owner for federal income Tax purposes pursuant to Treasury Regulation section 301.7701-2(c)(2)(i).

 

(f)            There are no Liens (other than Permitted Liens) on any of the Contributed Assets or the assets of VEX (or any of its Subsidiaries), in each case that arose in connection with any failure (or alleged failure) to pay any Tax.

 

(g)           Except as set forth on Schedule 3.12(g), none of VEX or any of its Subsidiaries has been a member of or is a successor to an entity that has been a member of an affiliated group

 

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filing a consolidated federal income Tax Return or has any liability for the Taxes of any Person under Treasury Regulation section 1.1502-6 (or any similar provision of state, local or foreign Law), as a transferee or successor, by contract, or otherwise.

 

3.13        Material Contracts.

 

(a)           Set forth in Schedule 3.13(a) is a list, as of the date hereof, of each Material Contract to which the Contributor or any of its Affiliates is a party.

 

(b)           The Contributor has made available to the Acquirer a correct and complete copy of each Material Contract. Except as would not reasonably be expected to have a Material Adverse Effect, each Material Contract is legal, valid and binding on and enforceable against the Contributor, VEX or their applicable Affiliates and, to the Contributor’s Knowledge, the counterparty thereto, and each Material Contract will continue to be legal, valid and binding on and enforceable against the Contributor, VEX or their applicable Affiliates and, to the Contributor’s Knowledge, the counterparty thereto, on identical terms following the consummation of the Transactions. Each Material Contract is in full force and effect, and none of the Contributor, VEX or their applicable Affiliates, as the case may be, or, to the Contributor’s Knowledge, any counterparty thereto, is in breach or default thereunder and no event has occurred that upon receipt of notice or lapse of time or both would constitute any breach or default thereunder, except for such breaches or defaults as would not reasonably be expected to have a Material Adverse Effect. None of the Contributor, VEX or their applicable Affiliates has given or received from any third party any written notice of any action or intent to terminate or amend in any material respect any Material Contract except as provided in Schedule 3.13(b).

 

3.14        No Adverse Changes.  Except as set forth in Schedule 3.14, since August 1, 2014:

 

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

 

(b)           the Business and the VEX Pipeline have been operated and maintained by the Contributor or its applicable Affiliates in the ordinary course of business consistent with past practices;

 

(c)           there has not been any damage to or destruction or loss of the Contributed Assets, whether or not covered by insurance, that individually or in the aggregate exceed $100,000;

 

(d)           there has been no acceleration or delay in, or postponement of, the payment of any Liabilities related to the Business or the Contributed Assets in excess of $100,000;

 

(e)           there has been no acceleration or delay in the collection of any payment related to the Business or the Contributed Assets in excess of $100,000;

 

(f)            there has been no declaration or payment of any non-cash dividend or other non-cash distribution in respect of the Contributed Interests; and

 

(g)           there is no Contract to do any of the foregoing.

 

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3.15                        Indebtedness.  VEX has no Debt other than Debt which will be paid, settled, cancelled, discharged or otherwise released at or prior to the Effective Time.

 

3.16                        Absence of Undisclosed Liabilities.  To the Contributor’s Knowledge, VEX is not subject to, any material Liability, except Liabilities required to be incurred pursuant to this Agreement or the other Transaction Documents or otherwise in connection with the Transactions.

 

3.17                        FERC.  VEX is in material compliance with all applicable orders and regulations of FERC that pertain to the businesses or operations of VEX.  No approval of FERC is required in connection with execution of this Agreement by the Contributor or the consummation by the Contributor of the transactions contemplated hereby.

 

3.18                        Employment Matters.  Except as otherwise described in Section 5.11(c) or as would not reasonably be expected to have a Material Adverse Effect, the consummation of the Transactions contemplated by this Agreement alone, or in combination with any other event, including a termination of any employee, officer or other service provider of the Contributor or any of its Affiliates, shall not give rise to any obligation with respect to any plan, program, policy agreement or arrangement of the Contributor or its Affiliates described in Section 5.11(i) that could otherwise subject the Acquirer or an Affiliate thereof to any liability, including liability for severance pay, unemployment compensation, termination pay, withdrawal liability or other employee benefits.

 

3.19                        No Other Representations or Warranties.  Except as set forth in this Article III, the Contributor makes no other express or implied representation or warranty with respect to the VEX Contribution or the Transactions, and disclaims any other representations or warranties with respect thereto.

 

ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF THE ACQUIRER

 

The Acquirer hereby represents and warrants to the Contributor that:

 

4.1                               Organization and Existence.

 

(a)                                 Each of the Acquirer, the General Partner and EnLink Operating is an entity duly organized, validly existing and in good standing under the laws of the State of Delaware, and EnLink Operating has all limited partnership power and authority to own the VEX Contribution.

 

(b)                                 Each of the Acquirer, the General Partner and EnLink Operating is duly qualified to transact business as a limited partnership or limited liability company, as applicable, and is in good standing in each other jurisdiction in which such qualification is required for the conduct of its business, except where the failure to so qualify or to be in good standing does not have an Acquirer Material Adverse Effect.

 

4.2                               Authority and Approval; Enforceability.  The Acquirer has the limited partnership power and authority to execute and deliver this Agreement, and the Acquirer and each of its Affiliates has requisite power and authority to execute and deliver any other Transaction 

 

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Document to which it is or will be a party, to perform all the terms and conditions hereof and thereof to be performed by it and to consummate the Transactions. The execution and delivery by the Acquirer of this Agreement and the execution and delivery by the Acquirer and each of its Affiliates, as applicable, of any Transaction Document to which it is or will be a party, the performance by the Acquirer or its applicable Affiliate of all the terms and conditions hereof and thereof to be performed by it and the consummation of the Transactions have been duly authorized and approved by all requisite limited partnership, limited liability company, corporate or other action of the Acquirer or its Affiliates.  Each of this Agreement and any other Transaction Document to which the Acquirer or any other Affiliate of the Acquirer  is a party or will be a party constitutes or will constitute, upon execution and delivery by the each of the parties thereto, the valid and binding obligation of the Acquirer or such Affiliate of the Acquirer, as applicable, enforceable against the Acquirer or such Affiliate of the Acquirer in accordance with its terms, except as such enforcement may be limited by the Enforceability Exceptions.

 

4.3                               No Conflict.  Other than as set forth on Schedule 4.3, the execution by the Acquirer or its applicable Affiliates of this Agreement and the other Transaction Documents to which the Acquirer or such Affiliate of the Acquirer is or will be a party do not, and the fulfillment and compliance with the terms and conditions hereof and thereof and the consummation of the Transactions will not:

 

(a)                                 conflict with any of the provisions of the Organizational Documents of the Acquirer or any of its Affiliates;

 

(b)                                 conflict with any provision of any Law or Order applicable to the Acquirer or any of its Affiliates;

 

(c)                                  conflict with, result in a breach of, constitute a default under (whether with notice or the lapse of time or both) or accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, or give others the right to terminate any indenture, mortgage, Lien or Contract to which the Acquirer or any of its Affiliates is a party or by which any of them is bound;

 

(d)                                 result in the creation of, or afford any Person the right to obtain, any Lien on the capital stock or other equity interests, property or assets of the Acquirer or any of its Affiliates under any such Contract; or

 

(e)                                  result in the revocation, cancellation, suspension or material modification of any Governmental Approval possessed by the Acquirer or any of its Affiliates that is necessary or desirable for the ownership, lease or operation of its properties and other assets in the conduct of its business as now conducted by the Acquirer and its Affiliates in all material respects, including any Governmental Approvals under any applicable Environmental Law;  except, in the case of clauses (b), (c), (d) and (e) as would not be reasonably expected to have an Acquirer Material Adverse Effect and except for such as will have been cured at or prior to the Effective Time.

 

4.4                               Delivery of Fairness Opinion.  The Financial Advisor has delivered an opinion to the Conflicts Committee that, subject to the assumptions, qualifications and limitations set forth 

 

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in such opinion, the consideration to be paid by the Acquirer pursuant to this Agreement is fair, from a financial point of view, to the Acquirer’s public common unitholders, other than EnLink Midstream, Inc. and its affiliates and the Contributor and its affiliates.

 

4.5                               Brokerage Arrangements.  The Acquirer has not entered, directly or indirectly, into any Contract with any Person that would obligate the Contributor or any of its Affiliates to pay any commission, brokerage or “finder’s fee” or other fee in connection with this Agreement or the transactions contemplated hereby.

 

4.6                               New Common Units.  The New Common Units being issued at Closing, when issued in consideration for the VEX Contribution as provided by this Agreement, will be duly authorized, validly issued, fully paid (to the extent required by the Acquirer’s Organizational Documents) and nonassessable (except as such nonassessability may be affected by the Delaware Revised Uniform Limited Partnership Act) and free of any preemptive or similar rights (other than those set forth in the Acquirer’s limited partnership agreement).

 

4.7                               Available Funds.  The Acquirer will have at Closing sufficient cash to enable it to make payment in immediately available funds of the Cash Consideration when due and any other amounts to be paid by it hereunder, at least forty percent (40%) of which shall be sourced by the Acquirer solely from debt proceeds of the Acquirer Debt.

 

4.8                               Investment.  The Acquirer is an “accredited investor” as such term is defined in Rule 501 promulgated under the Securities Act. The Acquirer is familiar with investments of the nature of the Contributed Interests, understands that this investment involves substantial risks, has adequately investigated the Contributor and the Contributed Interests, and has substantial knowledge and experience in financial and business matters such that it is capable of evaluating, and has evaluated, the merits and risks inherent in purchasing the Contributed Interests, and is able to bear the economic risks of such investment. The Acquirer has had the opportunity to visit with the Contributor and meet with its officers and other representatives to discuss the business, assets, liabilities, financial condition, and operations of VEX, has received all materials, documents and other information that the Acquirer deems necessary or advisable to evaluate VEX and the Contributed Interests, and has made its own independent examination, investigation, analysis and evaluation of VEX and the Contributed Interests, including its own estimate of the value of the Contributed Interests.  The Acquirer has undertaken such due diligence (including a review of the properties, liabilities, books, records and contracts of VEX) as the Acquirer deems adequate. The Acquirer acknowledges that the Contributed Interests have not been registered under applicable federal and state securities laws and that the Contributed Interests may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of unless such transfer, sale, assignment, pledge, hypothecation or other disposition is registered under applicable federal and state securities laws or pursuant to an exemption from registration under any federal or state securities laws.  The Acquirer is acquiring the Contributed Interests for its own account and not with a view toward or for offer or sale in connection with any distribution thereof, or with any present intention of distributing or selling the Contributed Interests in violation of federal or state securities laws.  Neither the Acquirer nor the General Partner is a party to any Contract or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to the Contributed Interests.

 

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4.9                               Periodic Reports.  The Acquirer has timely furnished or filed all forms, registration statements, reports, schedules and other documents required to be furnished or filed by it under the Exchange Act or the Securities Act with the Commission since January 1, 2014 (all such documents filed prior to the date hereof, collectively the “SEC Documents”).  The SEC Documents, at the time filed (or in the case of registration statements, solely on the dates of effectiveness) (except to the extent corrected or superseded by a subsequent SEC Document) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and (b) complied in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as the case may be.  Any audited or unaudited financial statements and any notes thereto or schedules included in the SEC Documents (the “Acquirer Financial Statements”), at the time filed, (A) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (B) were prepared in accordance with GAAP applied on a consistent basis during the periods presented thereby (except as may be indicated in the notes thereto or, in the case of unaudited statements, subject to normal year-end audit adjustments or otherwise as permitted by Form 10-Q of the Commission) and (C) fairly present (subject in the case of unaudited statements to normal and recurring audit adjustments) in all material respects the consolidated financial position of the Acquirer and its consolidated subsidiaries as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended.  KPMG LLP is the independent registered public accounting firm that performs auditing services for the Acquirer and has not resigned or been dismissed as independent registered public accountants of the Acquirer as a result of or in connection with any disagreement with the Acquirer on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.

 

4.10                        No Material Adverse Change.  Except as set forth in or contemplated by the SEC Documents and as contemplated by this Agreement, since December 31, 2014, the business of the Acquirer and its Subsidiaries, as applicable, has been conducted only in the ordinary course of business and there has not been any (a) Acquirer Material Adverse Effect, (b) acquisition or disposition of any material asset by the Acquirer or any of its Subsidiaries or any contract or arrangement therefore, other than in the ordinary course of business, (c) material change in any of the Acquirer’s accounting principles, practices or methods except to the extent required in accordance with GAAP, (d) incurrence of material indebtedness other than in the ordinary course of business, (e) amendment, or approval of any amendment, to the Organizational Documents of the Acquirer, (f) material legal, regulatory or other similar proceedings for which the Acquirer has been served or (g) material disputes, claims, audits or investigations, whether administrative, judicial or otherwise, instituted or threatened by or against or affecting the Acquirer.

 

4.11                        No Other Representations or Warranties; Schedules.  Except as set forth in this Article IV, the Acquirer does not make any other express or implied representation or warranty with respect to the New Common Units or the Transactions, and the Acquirer disclaims any other representations or warranties with respect thereto.

 

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ARTICLE V
 COVENANTS, ETC.

 

5.1                               Conduct of Business.  During the period commencing on the date hereof and ending on the Closing Date (the “Pre-Closing Period”) the Contributor and its Affiliates shall operate the Business in the ordinary course of business and shall use their respective commercially reasonable efforts to preserve intact relationships with lessors, contractors, customers, suppliers and other Persons who have business relationships with VEX or relating to the Business, including applicable regulatory agencies, and to preserve, maintain and protect the Contributed Assets. Without limiting the generality or effect of the previous sentence, during the Pre-Closing Period, the Contributor shall not, except (i) as set forth on Schedule 5.1, (ii) as otherwise contemplated by this Agreement, (iii) as required by Law or (iv) with the prior written consent of the Acquirer (which consent shall not be unreasonably withheld, delayed or conditioned):

 

(a)                                 amend or allow to be amended the Organizational Documents of VEX;

 

(b)                                 cause or permit the merger or consolidation of VEX with or into any other Person or liquidate, dissolve or recapitalize VEX or otherwise wind up the Business;

 

(c)                                  cause or permit VEX to acquire (including, without limitation, by merger, consolidation or the acquisition of any equity interest or assets), sell, assign, transfer, lease or otherwise dispose of any assets, other than in the ordinary course of business;

 

(d)                                 dispose of any Contributed Asset, other than in the ordinary course of business, provided that any Contributed Assets disposed pursuant to this clause have a value less than $100,000 individually and $500,000 in the aggregate;

 

(e)                                  permit or allow any Lien against any Contributed Asset or any asset owned by VEX other than a Permitted Lien or any Lien that will be terminated and released prior to the Closing;

 

(f)                                   issue, transfer, sell, deliver or otherwise dispose of (whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to purchase or otherwise) any equity interests in VEX or securities, options, warrants, calls or other rights to purchase equity interests in VEX (including any notes, bonds or other securities or obligations convertible into or exchangeable for any equity interests in VEX);

 

(g)                                  terminate or amend any Material VEX Permits;

 

(h)                                 enter into any Contract which would constitute a Material Contract under this Agreement;

 

(i)                                     modify or amend, in any material respect, or terminate any Material Contract;

 

(j)                                    with respect to any Transferring Employee, hire or engage such individual in any alternative capacity, or approve or make material modifications to the salary, wages, bonuses or other compensation (including incentive compensation) payable to any such individual, or adopt 

 

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or make any material amendment to any employee compensation, benefit or incentive plans with respect to such individual other than in the ordinary course of business, as required by applicable Law, or to effect or permit the transfer of such individual as a Transferring Employee as contemplated pursuant to Section 5.11; or

 

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

 

5.2                               Financial Statements.  The Contributor shall permit the Acquirer and its representatives to contact the Contributor’s accountants and employees, and shall cause such accountants and employees to discuss, cooperate and provide information reasonably requested by the Acquirer or its representatives, in order for the Acquirer to prepare audited and unaudited historical financial statements for the Business and pro forma financial statements of the Acquirer, in each case that meet the requirements of Regulation S-X promulgated under the Securities Act.  The Contributor shall cause its accountants and employees to cooperate with the Acquirer with regard to responding to any comments from the Commission on the financial statements of the Business. The Acquirer shall be responsible for and shall pay for or reimburse the Contributor for all out-of-pocket costs incurred by the Contributor in connection with the preparation and audit of any such financial statements (including reasonable accountants’ fees). The obligations of the Contributor under this Section 5.2 shall survive for three (3) years after the Closing.

 

5.3                               Debt Financed Cash Consideration.

 

(a)                                 In connection with the Closing, the Acquirer shall borrow an amount equal to or exceeding forty percent (40%) of the Cash Consideration (the “Debt Financed Cash Consideration”) under indebtedness for which no partner of the Acquirer or any related Person bears the economic risk of loss as defined by Treasury Regulation section 1.752-2 and shall utilize the proceeds of such borrowing in a manner such that the proceeds of such borrowing are allocable to the distribution of the Debt Financed Cash Consideration to the Contributor as part of the payment of the Cash Consideration pursuant to Treasury Regulation section 1.707-5(b)(1) and Treasury Regulation section 1.163-8T (such borrowing, and any “refinancing” of such borrowing treated as the liability it refinances pursuant to Treasury Regulation section 1.707-5(c), the “Acquirer Debt”).

 

(b)                                 The Parties intend that the Debt Financed Cash Consideration paid to the Contributor shall qualify as a “debt-financed transfer,” a portion of which is not taken into account as part of a “disguised sale” (under Treasury Regulation sections 1.707-3 and 1.707-5(b)) of the Contributed Interests and the Contributed Assets.

 

(c)                                  For a period of one (1) year following the Closing Date, the Contributor and the Acquirer shall ensure (and shall cause their respective Affiliates to ensure) that the Acquirer Debt will not be less than the entire outstanding principal balance of the Acquirer Debt outstanding immediately after the Closing.

 

(d)                                 The Parties shall act at all times in a manner consistent with the foregoing provisions of this Section 5.3, except with the prior written consent of the Contributor or as 

 

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otherwise required by applicable Law following a final determination by the U.S. Internal Revenue Service or a Governmental Authority with competent jurisdiction.

 

5.4                               Access.  From the date of this Agreement until the Closing Date, the Contributor shall, upon reasonable advance notice by the Acquirer, (a) provide the Acquirer and its representatives reasonable access, during normal business hours, to the books and records relating to the Business, and (b) furnish to the Acquirer such documents and information in the possession or control of the Contributor or its Affiliates concerning the Business as the Acquirer from time to time may reasonably request, but only to the extent that the Contributor may comply with the covenants in clause (a) and (b) above without breaching any confidentiality obligation binding on the Contributor or its Affiliates. With respect to the Real Property, such access shall be subject to the rights of parties in possession and the terms of any instruments under which the Contributor uses or occupies such Real Property.

 

5.5                               Post-Closing Receivables and Payments.

 

(a)                                 Should the Contributor or any of its Subsidiaries receive any payments attributable to accounts receivable of the Business that relate to the operations of the Business after the Effective Time, then the Contributor shall or shall cause its applicable Subsidiary to, within thirty (30) days of receipt of such payments, forward such payments to the Acquirer.  Should the Acquirer or any of its Subsidiaries receive any payments attributable to accounts receivable of the Business that relate to the operations of the Business at or prior to the Effective Time, then the Acquirer shall or shall cause its applicable Subsidiary to, within thirty (30) days of receipt of such payments, forward such payments to the Contributor.

 

(b)                                 If any demand is made on the Contributor or any of its Subsidiaries to pay any invoice or other account payables incurred in connection with the operation of the Business after the Effective Time, then the Acquirer shall be responsible for the same.  If any demand is made on the Acquirer or any of its Subsidiaries to pay any invoice or other account payables incurred in connection with the operation of the Business at or prior to the Effective Time, then the Contributor shall be responsible for the same.

 

5.6                               Further Assurances.  On and after the Closing Date, the Parties shall cooperate and use their respective commercially reasonable efforts to take or cause to be taken all appropriate actions and do, or cause to be done, all things necessary or appropriate to make effective the Transactions, including (i) the execution of any additional assignment or similar documents or instruments of transfer of any kind, (ii) without limiting the generality of Section 5.9, the obtaining of consents which may be reasonably necessary or appropriate to consummate the Transactions and (iii) the taking of all such other actions as such Party may reasonably be requested to take by the other Party from to time to time, consistent with the terms of this Agreement and the other Transaction Documents, in order to effectuate the Transactions.

 

5.7                               NYSE Listing.  Prior to the Closing, the Acquirer will use its commercially reasonable efforts to obtain approval for listing, subject to notice of issuance, of the New Common Units on the New York Stock Exchange.

 

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5.8                               Tax Covenants.

 

(a)                                 The Parties agree that the Contributor shall bear the liability for any Taxes imposed on or incurred by or with respect to the operation of the Business or the ownership or operation of the Contributed Assets for any taxable period or portion thereof ending on or prior to the Closing Date. The Parties further agree that the Acquirer shall bear the liability for any Taxes imposed on or incurred by or with respect to the operation of the Business or the ownership or operation of the Contributed Assets for any taxable period or portion thereof beginning after the Closing Date.

 

(b)                                 The Parties agree that whenever it is necessary for purposes of this Section 5.8 to determine the amount of any Taxes for a taxable period beginning before and ending after the Closing Date (a “Straddle Period”) that is allocable to the portion of the Straddle Period ending on or before the Closing Date, the determination shall be made, in the case of property or ad valorem or franchise Taxes (which are measured by, or based solely upon capital, debt or a combination of capital and debt), by prorating such Taxes ratably on a per diem basis and, in the case of other Taxes, by assuming that such portion of the Straddle Period ending on or prior to the Closing Date constitutes a separate taxable period and by taking into account the actual taxable events occurring during such period (except that exemptions, allowances and deductions for a taxable period beginning before and ending after the Closing Date that are calculated on an annual or periodic basis, such as the deduction for depreciation, shall be apportioned to the period prior to and including the Closing Date ratably on a per diem basis).

 

(c)                                  With respect to any Tax Return attributable to a Straddle Period that is required to be filed after the Closing Date with respect to VEX (or any of its Subsidiaries), the Business or the Contributed Assets (excluding any Tax Return that is filed on a consolidated, combined, or unitary basis with any Devon Entity other than VEX or any of its Subsidiaries), the Acquirer shall cause such Tax Return to be prepared, cause to be included in such Tax Return all items of income, gain, loss, deduction and credit required to be included therein, furnish a copy of such Tax Return to the Contributor, and cause such Tax Return to be filed timely with the appropriate Tax Authority. The Acquirer shall be responsible for the timely payment of all Taxes due from VEX or any of its Subsidiaries with respect to the period covered by such Tax Return, but shall have a right to recover from the Contributor the amount of Taxes attributable to the portion of the taxable period ending on or prior to the Closing Date pursuant to Section 5.8(a).

 

(d)                                 The Parties shall cooperate fully, and cause their Affiliates to cooperate fully, as and to the extent reasonably requested by the other Party, (i) to accomplish the apportionment of income described pursuant to this Section 5.8, (ii) to respond to requests for the provision of any information or documentation within the knowledge or possession of such Party as reasonably necessary to facilitate compliance with financial reporting obligations arising under FASB Statement No. 109 (including compliance with Financial Accounting Standards Board Interpretation No. 48), and (iii) in connection with any audit, litigation or other proceeding (each a “Tax Proceeding”) with respect to Taxes.  Such cooperation shall include access to, the retention and (upon the other Party’s request) the provision of records and information that are reasonably relevant to any Tax Return or Tax Proceeding, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Acquirer and the Contributor will use their respective commercially

 

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reasonable efforts to retain all books and records with respect to Tax matters pertinent to the Contributed Assets relating to any taxable period beginning before the Closing Date until the later of seven (7) years after the Closing Date or the expiration of the applicable statute of limitations of the respective taxable periods (including any extensions thereof), and to abide by all record retention agreements entered into with any Tax Authority.  The Acquirer and the Contributor each agree, upon request, to use their respective commercially reasonable efforts to obtain any certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated by this Agreement.

 

(e)                                  The Parties intend that for United States federal income tax purposes, (i) the VEX Contribution shall be treated as a contribution by the Contributor to the Acquirer pursuant to Section 721(a) of the Code, subject to Section 707 of the Code, and (ii) the payment of the Debt Financed Cash Consideration shall qualify as a “debt-financed transfer” under Section 1.707-5(b) of the Treasury Regulations pursuant to Section 5.3 of this Agreement. Any Cash Consideration in excess of the amount treated as a “debt-financed transfer” shall be treated (i) as a reimbursement of the Contributor’s preformation expenditures within the meaning of Treasury Regulation sections 1.707-4(d) to the greatest extent applicable, and (ii) in a transaction subject to treatment under Section 707(a) of the Code, and its implementing Treasury Regulations, as in part a sale, and in part a contribution, by the Contributor of the VEX Contribution. The Parties agree to file all Tax Returns and otherwise act at all times in a manner consistent with this intended treatment of the VEX Contribution, the Cash Consideration, and the Acquirer Debt, including disclosing the distribution of the Cash Consideration in accordance with the requirements of Treasury Regulation section 1.707-3(c)(2).

 

5.9                               Consents.

 

(a)                                 The Contributor shall use reasonable best efforts to obtain the Consents listed on Schedule 3.4, and, upon receipt of such Consents, shall, if necessary, execute an assignment and assumption agreement with customary terms.

 

(b)                                 Subject to Section 6.1(c), if and to the extent that the valid, complete and perfected transfer or assignment of any Contributed Asset (including any Contract) as part of the contribution of the Contributed Assets as contemplated by Section 2.1 would be a violation of applicable Law, or require any Consent that has not been obtained or made by the Closing, then, unless the Parties shall otherwise mutually determine, the transfer or assignment of that Contributed Asset shall be automatically deemed deferred and any such purported transfer, assignment or assumption shall be null and void until such time as all legal impediments are removed or such Consents have been obtained or made.  Notwithstanding the foregoing, any such Contributed Assets shall continue to constitute Contributed Assets for all other purposes of this Agreement.

 

(c)                                  If any transfer or assignment of any Contributed Asset intended to be transferred or assigned hereunder, as the case may be, is not consummated on or prior to the Closing, whether as a result of the provisions of Section 5.9(b) or for any other reason, then, insofar as reasonably possible, the Contributor or its applicable Subsidiary retaining such Contributed Asset shall thereafter hold such Contributed Asset for the use, benefit and/or burden of the

 

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Acquirer (at the expense of the Contributor and for the account of the Acquirer) until such time as such transfer or assignment can be completed.  In addition, the Contributor or its applicable Subsidiary shall, insofar as reasonably possible and to the extent permitted by applicable Law, treat such Contributed Asset in the ordinary course of business in accordance with past practice and take such other actions as may be reasonably requested by the Acquirer in order to place the Acquirer in a substantially similar position as if such Contributed Asset had been transferred or assigned as contemplated hereby and so that all the benefits and burdens relating to such Contributed Asset, as the case may be, including use, risk of loss, potential for gain, and dominion, control and command over such Contributed Asset, as the case may be, and all costs and expenses related thereto, shall inure from and after the Effective Time to the Acquirer.

 

5.10                        Permits.  To the extent that any Material VEX Permit is nontransferable to the Acquirer or its designated Affiliate, and must be reissued thereto, the Contributor shall, and shall cause its Affiliates to, use commercially reasonable best efforts to assist the Acquirer and its Affiliates in having such Material VEX Permits reissued.

 

5.11                        Transferring Employees and Benefits.

 

(a)                                 On the Closing Date, the Contributor shall, or shall cause its Affiliates to, make available for hiring by Acquirer or its Affiliates all employees enumerated on Schedule 5.11(a) (each such employee a “Transferring Employee”) and the Acquirer shall, or shall cause its Affiliates to, make offers of at will employment within a reasonable time prior to the Closing Date to each such Transferring Employee with such employment to be effective as of the Closing Date (to the extent such offers of employment are accepted).  Each employment offer shall be for a position that has duties that are materially consistent with the position held by such Transferring Employee immediately prior to the Closing Date and will be made on terms and conditions sufficient to avoid statutory, contractual, common law or other severance obligations.  Notwithstanding the foregoing, to the extent a Transferring Employee becomes entitled to payments under any long-term disability plan or short-term disability plan of the Contributor or any of its Affiliates on or prior to the Closing Date (a “Disability Employee”), the parties shall cooperate to delay such Disability Employee’s transfer to Acquirer or its Affiliates until such time that he or she returns to bona fide service with the Contributor or an Affiliate thereof, it being understood that neither the Acquirer nor any of its Affiliates shall have any obligation to hire any Disability Employee who does not return to bona fide service with the Contributor or an Affiliate thereof prior to the first anniversary of the Closing Date, unless otherwise required by applicable Law.

 

(b)                                 The Acquirer shall, or shall cause its Affiliates to, provide to each Transferring Employee (i) for a period of twelve (12) months after any such Transferring Employee commences employment with the Acquirer or its Affiliate pursuant to  Section 5.11(a), a base salary or wages and bonus opportunities that are no less favorable than those provided by the Contributor or its Affiliates immediately prior to the Closing Date and (ii) other employee benefits, plans, programs and arrangements that are substantially comparable in the aggregate to those provided to similarly situated employees at the Acquirer or its Affiliates under its benefit plans and programs as in effect on the Closing Date. Each Transferring Employee shall, effective as of the date the Transferring Employee commences employment with an Acquirer or an Affiliate thereof under Section 5.11(a), cease to be employed by the Contributor and its Affiliates

 

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and shall cease all active participation in and accrual of benefits under all compensatory and benefit plans and programs of the Contributor or its Affiliates, except as provided under the plan or agreement governing the applicable benefit.

 

(c)                                  The Acquirer shall, or shall cause its Affiliates to:

 

(i)                                     bear any costs related to, and indemnify and hold harmless the Contributor Indemnitees from and against, any claims made by any Transferring Employee for any statutory, contractual or common law severance or separation benefits and other legally mandated payment obligations (including the employer portion of any employment taxes, together with any compensation payable during any mandatory termination notice period related thereto) (collectively, the “Separation Benefits”), in each case, arising out of or in connection with the failure of the Acquirer or its Affiliates to make offers of employment to any Transferring Employee in accordance with this Agreement and as required by applicable Law; and

 

(ii)                                  provide each Transferring Employee whose employment is terminated within twelve (12) months following the Closing Date with severance and other separation benefits substantially the same as the severance and other separation benefits, if any, available to such Transferring Employee by the Contributor or its Affiliates as in effect prior to the Closing Date, it being understood that and for the avoidance of doubt, the Acquirer and its Affiliates shall have no obligation to provide any such severance and other separation benefits in respect of a termination of employment of any Transferring Employee whose termination would otherwise constitute a termination for cause under a reasonable interpretation of the terms of such severance or other separation benefit arrangements of Contributor or its Affiliates.

 

(d)                                 Except as otherwise provided in this Agreement, the Contributor and any of its respective Affiliates shall retain liability and responsibility for all employment and employee-benefit related liabilities, obligations, claims or losses that arise as a result of an event or events that relate to a Transferring Employee (or any dependent or beneficiary of any Transferring Employee) and that occur prior to the effective time of such Transferring Employee’s employment with the Acquirer or any of its Affiliates, explicitly including, but not limited to, any and all payments due pursuant to letters between the Contributor or its Affiliates and any of the Transferring Employees dated June 9, 2014 regarding the Eagle Ford Field Retention Program, and any amendment thereto (the “Retention Letters”).  The Acquirer agrees to furnish the Contributor with information regarding the Transferred Employees’ continued employment with the Acquirer or its Affiliates through the payment dates enumerated in the Retention Letters so that the Contributor may determine whether any amounts are due pursuant to the Retention Letters and, if so, make timely payments directly to the applicable Transferred Employees.  Except as otherwise specifically provided in this Agreement, the Acquirer and its Affiliates shall retain liability and responsibility for all employment and employee-benefit related liabilities, obligations, claims or losses that arise as a result of an event or events that relate to the Transferring Employees (or any dependent or beneficiary of any Transferring Employee) and that occur on or after the effective time of such Transferring Employee’s employment with the Acquirer or any of its Affiliates.

 

(e)                                  The Acquirer and its Affiliates agree that from and after the Closing Date, the Transferring Employees shall be credited with their length of service with the Acquirer and its

 

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Affiliates for purposes of vesting, eligibility and level of benefits under all employee benefit plans, equity or equity-based awards, bonus plans or agreements, or other programs and policies (other than employee pension plans subject to Title IV of ERISA) in which the Transferring Employees may participate in or be covered under from and after the Closing Date. Such pre- Closing Date service credit shall also be taken into account for purposes of benefit computation under all severance or unemployment compensation plans or policies that may apply to the Transferring Employees after the Closing Date.

 

(f)                                   The Contributor shall, or shall cause its Affiliates to, pay an amount to each Transferring Employee as soon as practical, but in no event later than sixty (60) days following the Closing Date or such earlier date as required by applicable Law, equal to the value of the unused paid time off accrued as of the Closing Date by each Transferring Employee under the paid time off programs of the Contributor or its Affiliates. As such, no vacation days, sick leave, or paid time off accrued under the plans or programs of the Contributor or its Affiliates prior to the Closing Date shall be credited to the Transferring Employees under the paid time off plans of the Acquirer or its Affiliates. Accruals of paid time off under the programs of the Acquirer or its Affiliates shall begin following the Closing Date and professional service credit will be provided to both exempt and non-exempt Transferring Employees, as applicable, under such plans.

 

(g)                                  In the event that a Transferring Employee makes a voluntary election pursuant to Section 401(a)(31) of the Code to roll over his or her account balance in a tax qualified defined contribution plan sponsored by the Contributor or its Affiliates to a tax-qualified defined contribution plan sponsored by the Acquirer or its Affiliates in which such Transferring Employee is eligible to participate, the Acquirer agrees, or shall cause its Affiliates to agree, to take commercially reasonable steps to cause such tax-qualified defined contribution plan to accept such rollover in cash, but only to the extent permitted by applicable Law and the terms of such Acquirer plan.

 

(h)                                 To the extent that any Transferring Employee becomes covered under a health or welfare benefit plan or program of the Acquirer or its Affiliates, any restrictions on coverage for pre-existing conditions requirements for evidence of insurability or eligibility waiting periods under such plans will be waived for such Transferring Employee to the extent such waiver is permitted under the applicable plan. The Acquirer or its Affiliates shall use reasonable best efforts to provide that each Transferring Employee who becomes covered under a group health plan (including a “group health plan” as defined in Section 5000(b)(1) of the Code) of the Acquirer or its Affiliates shall receive credit for those sums paid in the current year under the corresponding plan of the Contributor or its Affiliates, as deductibles, coinsurance and co-payments, towards any deductible and/or out-of-pocket maximum that may apply under such plan of the Acquirer or its Affiliates.

 

(i)                                     The Acquirer and its Affiliates shall not, as a result of the transactions contemplated hereby, (i) have any obligation to hire any individual who is not a Transferring Employee, or (ii) assume any “employee benefit plan,” as such term is defined in Section 3(3) of ERISA (including, but not limited to, employee benefit plans, such as foreign plans, which are not subject to the provisions of ERISA) of the Contributor or its Affiliates, or any other personnel policy, equity-based plan (including, but not limited to, stock option plans, stock purchase plans, stock appreciation rights and phantom stock plans), bonus plan or arrangement,

 

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incentive award plan or arrangement, vacation policy, severance pay plan or arrangements, change in control policies or agreements, deferred compensation agreement or arrangement, executive compensation or supplemental income arrangement, consulting agreement, employment agreement and each other employee benefit plan, agreement, arrangement, program, practice or understanding pursuant to which compensation or other benefits are provided to any current or former director, officer, employee or consultant (or to any dependent or beneficiary thereof) of the Contributor or its Affiliates, including any Transferring Employee, and the parties shall take all necessary actions to ensure that none of the foregoing shall otherwise occur.

 

(j)                                    The provisions of this Section 5.11 are solely for the benefit of the respective Parties to this Agreement and nothing in this Section 5.11, express or implied, shall confer upon any employee of the Contributor, the Acquirer, or any of their respective Affiliates, or any legal representative or beneficiary thereof, any rights or remedies, including any right to employment or continued employment for any specified period, or compensation or benefits of any nature or kind whatsoever under this Agreement. Nothing in this Section 5.11, express or implied, shall be (i) deemed an amendment of any plan providing benefits to any employee of the Contributor, the Acquirer, or any of their respective Affiliates, or (ii) construed to prevent the Acquirer or its Affiliates from terminating or modifying to any extent or in any respect any benefit plan that they may establish or maintain.

 

ARTICLE VI
 CONDITIONS TO CLOSING

 

6.1                               Conditions to Each Party’s Obligation to Effect the Transactions.  The respective obligation of each Party to proceed with the Closing is subject to the satisfaction or waiver by each of the Parties (subject to applicable Laws) at or prior to the Closing of all of the following conditions:

 

(a)                                 all necessary filings with and consents of any Governmental Authority required for the consummation of the Transactions shall have been made and obtained;

 

(b)                                 no Party shall be subject to any Order that prohibits the consummation of the Transactions and no Law enacted, entered, or issued by any Governmental Authority, or other legal restraint or prohibition preventing the consummation of the Transactions, shall be in effect;

 

(c)                                  the consents listed on Schedule 6.1(c) shall have been obtained; and

 

(d)                                 the New Common Units shall have been approved for listing upon notice of issuance on the New York Stock Exchange.

 

6.2                               Conditions to the Obligation of the Acquirer.  The obligation of the Acquirer to proceed with the Closing is subject to the satisfaction or waiver by the Acquirer at or prior to the Closing of the following conditions:

 

(a)                                 the Contributor shall have performed or complied with, in all material respects, the covenants and agreements contained in this Agreement required to be performed or complied with by it at or prior to the Closing;

 

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(b)                                 (i) the Fundamental Representations shall be true and correct (without regard to qualifications as to materiality or Material Adverse Effect contained therein) in all respects as of the date of this Agreement and the Closing with the same effect as though made at and as of the Closing (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), and (ii) the other representations and warranties of the Contributor made in this Agreement shall be true and correct (without regard to qualifications as to materiality or Material Adverse Effect contained therein) as of the date of this Agreement and the Closing with the same effect as though made at and as of the Closing (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), except in the case of clause (ii) where the failure of such representations and warranties to be true and correct would not reasonably be expected to have a Material Adverse Effect;

 

(c)                                  the Contributor shall have delivered or caused the delivery of the Closing deliverables set forth in Section 7.2; and

 

(d)                                 between the date hereof and the Closing Date, there shall not have been a Material Adverse Effect.

 

6.3                               Conditions to the Obligation of the Contributor.  The obligation of the Contributor to proceed with the Closing is subject to the satisfaction or waiver by the Contributor at or prior to the Closing of the following conditions:

 

(a)                                 the Acquirer shall have performed or complied with, in all material respects, the covenants and agreements contained in this Agreement required to be performed or complied with by it on or prior to the Closing;

 

(b)                                 (i) the Acquirer Fundamental Representations shall be true and correct (without regard to qualifications as to materiality or Material Adverse Effect contained therein) in all respects as of the date of this Agreement and the Closing with the same effect as though made at and as of the Closing (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), and (ii) the other representations and warranties of the Acquirer made in this Agreement shall be true and correct (without regard to qualifications as to materiality or Acquirer Material Adverse Effect contained therein) as of the date of this Agreement and the Closing with the same effect as though made at and as of the Closing (except to the extent such representations and warranties expressly relate to an earlier date, in which case as of such earlier date), except in the case of clause (ii) where the failure of such representations and warranties to be true and correct would not reasonably be expected to have an Acquirer Material Adverse Effect;

 

(c)                                  the Acquirer shall have delivered or caused the delivery of the Closing deliverables set forth in Section 7.3; and

 

(d)                                 between the date hereof and the Closing Date, there shall not have been an Acquirer Material Adverse Effect.

 

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ARTICLE VII
 CLOSING

 

7.1                               Closing.  Subject to the terms and conditions of this Agreement and unless otherwise agreed in writing by the Contributor and the Acquirer, the closing (the “Closing”) of the Transactions will be held at the offices of Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500, Houston, Texas, at 9:00 a.m. (Houston, Texas time) on the later to occur of (i) April 1, 2015 or (ii) two (2) business days after the last to be satisfied or waived of the conditions set forth in Article VI (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions) shall be satisfied or waived in accordance with this Agreement.  Upon the occurrence of the Closing, the time and date that the Transactions become effective shall be the Effective Time.  The date on which the Closing occurs is referred to as the “Closing Date.”

 

7.2                               Deliveries by the Contributor.  At the Closing, the Contributor will deliver (or cause to be delivered) the following:

 

(a)                                 a counterpart to the Assignment of Contributed Interests, duly executed by the Contributor;

 

(b)                                 a counterpart to the Assignment and Bill of Sale of Contributed Assets, duly executed by the Contributor;

 

(c)                                  a counterpart to the Omnibus Agreement, duly executed by the Contributor and its Affiliates set forth on the signature pages thereto;

 

(d)                                 a counterpart to the Port of Victoria Product Storage and Terminal Agreement, duly executed by the Contributor;

 

(e)                                  a counterpart to the Cuero Product Storage and Terminal Agreement, duly executed by the Contributor;

 

(f)                                   a counterpart to the Transition Services Agreement, duly executed by the Contributor;

 

(g)                                  a certificate dated the Closing Date and signed by an authorized officer of the Contributor confirming the matters set forth in clauses (a), (b) and (d) of Section 6.2;

 

(h)                                 an executed statement described in Treasury Regulation section 1.1445-2(b)(2) certifying that the Contributor is neither a disregarded entity nor a foreign person within the meaning of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury regulations promulgated thereunder; and

 

(i)                                     such other documents, certificates and other instruments as may be reasonably requested by the Acquirer prior to the Closing to carry out the intent and purposes of this Agreement.

 

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7.3                               Deliveries by the Acquirer.  At the Closing, the Acquirer will deliver (or cause to be delivered) the following:

 

(a)                                 the Cash Consideration, by wire transfer of immediately available funds to an account specified in advance by the Contributor;

 

(b)                                 the New Common Units, by issuance of such New Common Units (in book-entry form) to the Contributor, by instruction to the Acquirer’s transfer agent or otherwise, and evidence of such issuance that is reasonably satisfactory to the Contributor;

 

(c)                                  a counterpart to the Assignment of Contributed Interests, duly executed by EnLink Operating;

 

(d)                                 a counterpart to the Assignment and Bill of Sale of Contributed Assets, duly executed by EnLink Operating;

 

(e)                                  a counterpart to the Omnibus Agreement, duly executed by the Acquirer and its Affiliates set forth on the signature pages thereto;

 

(f)                                   a counterpart to the Port of Victoria Product Storage and Terminal Agreement, duly executed by EnLink Operating;

 

(g)                                  a counterpart to the Cuero Product Storage and Terminal Agreement, duly executed by EnLink Operating;

 

(h)                                 a counterpart to the Transition Services Agreement, duly executed by EnLink Operating;

 

(i)                                     a certificate dated the Closing Date and signed by an authorized officer of the General Partner confirming the matters set forth in clauses (a), (b) and (d) of Section 6.3; and

 

(j)                                    such other documents, certificates and other instruments as may be reasonably requested by the Contributor prior to the Closing to carry out the intent and purposes of this Agreement.

 

ARTICLE VIII
 INDEMNIFICATION

 

8.1                               Indemnification of the Contributor and Other Parties.  From and after the Effective Time, subject to the other provisions of this Article VIII, the Acquirer shall indemnify and hold the Contributor, the Contributor’s Affiliates and each of their directors, officers, employees, agents and representatives (in their capacities as such) (collectively, the “Contributor Indemnitees”) harmless from and against any and all damages, losses, deficiencies, costs, expenses, obligations, fines, expenditures, claims and liabilities, including court costs and reasonable attorneys’, accountants’ and other experts’ fees and expenses of investigation, defending and prosecuting Litigation (collectively, the “Damages”), suffered by the Contributor Indemnitees as a result of, caused by, arising out of, or in any way relating to:

 

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(a)           any breach or inaccuracy of a representation or warranty of the Acquirer or any of its Affiliates in this Agreement or any Transaction Document;

 

(b)           any breach of any agreement or covenant in this Agreement or any Transaction Document on the part of the Acquirer or any of its Affiliates; or

 

(c)           any demand, assertion, claim, action or proceeding, judicial or otherwise, by any third party against the Contributor or any of its Affiliates that pertains to the operation of the Business or the ownership of the Contributed Interests and the Contributed Assets, except, in the case of this clause (c), to the extent arising out of the breach by the Contributor of any of the representations, warranties or covenants of the Contributor set forth in this Agreement.

 

8.2          Indemnification of the Acquirer and other Parties.  From and after the Effective Time, subject to the other provisions of this Article VIII, the Contributor shall indemnify and hold the Acquirer and the Acquirer’s Affiliates and each of their directors, officers, employees, agents and representatives (in their capacities as such) (collectively, the “Acquirer Indemnitees”) harmless from and against any and all Damages suffered by the Acquirer Indemnitees as a result of, caused by, arising out of, or in any way relating to:

 

(a)           any breach of a representation or warranty of the Contributor or any of its Affiliates in this Agreement or any Transaction Document; or

 

(b)           any breach of any agreement or covenant in this Agreement or any Transaction Document on the part of the Contributor or any of its Affiliates.

 

8.3          Demands.  Each indemnified party agrees that promptly upon its discovery of facts giving rise to a claim for indemnity under the provisions of this Agreement, including receipt by it of notice of any demand, assertion, claim, action or proceeding, judicial or otherwise, by any third party (such third-party actions being collectively referred to herein as the “Indemnity Claim”), with respect to any matter as to which it claims to be entitled to indemnity under the provisions of this Agreement, it will give prompt notice thereof in writing to the indemnifying party, together with a statement of such information respecting any of the foregoing as it shall have.  Such notice shall include a formal demand for indemnification under this Agreement. The indemnifying party shall not be obligated to indemnify the indemnified party with respect to any Indemnity Claim to the extent the indemnified party failed to notify the indemnifying party in accordance with the provisions of this Agreement and that failure to notify actually results in material prejudice or damage to the indemnifying party.

 

8.4          Right to Contest and Defend.

 

(a)           The indemnifying party shall be entitled, at its cost and expense, to contest and defend by all appropriate legal proceedings any Indemnity Claim with respect to which it is called upon to indemnify the indemnified party under the provisions of this Agreement; provided, however, that notice of the intention to so contest or defend shall be delivered by the indemnifying party to the indemnified party within twenty (20) days from the date of receipt by the indemnifying party of notice by the indemnified party of the assertion of the Indemnity Claim.  Any such contest or defense may be conducted in the name and on behalf of the indemnifying party or the indemnified party as may be appropriate.  Such contest or defense

 

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shall be conducted and prosecuted diligently to a final conclusion or settled in accordance with this Section 8.4 by reputable counsel employed by the indemnifying party and not reasonably objected to by the indemnified party, but the indemnified party shall have the right (but not the obligation) to participate in such proceedings and to be represented by counsel of its own choosing at its sole cost and expense.  The indemnifying party shall have full authority to determine all action to be taken with respect to legal proceedings relating to any Indemnity Claim for which it is called upon to indemnify the indemnified party under the provisions of this Agreement; provided, however, that the indemnifying party will not have the authority to subject the indemnified party to any obligation whatsoever, other than the performance of purely ministerial tasks or obligations not involving material expense or injunctive relief.  If the indemnifying party does not elect to contest or defend any such Indemnity Claim or elects to contest or defend such Indemnity Claim but fails diligently and promptly to prosecute or settle such claim, the indemnified party may pursue such defense and the indemnifying party shall be bound by the result obtained with respect thereto by the indemnified party. If the indemnifying party shall have assumed the defense of an Indemnity Claim, the indemnified party shall agree to any settlement, compromise or discharge thereof that the indemnifying party may recommend and that by its terms obligates the indemnifying party to pay the full amount of the liability in connection with such Indemnity Claim, which releases the indemnified party completely in connection with such Indemnity Claim and that would not otherwise adversely affect the indemnified party in its sole discretion.

 

(b)           Notwithstanding the foregoing, the indemnifying party shall not be entitled to assume the defense of any Indemnity Claim (and shall be liable for the reasonable fees and expenses of counsel incurred by the indemnified party in defending such Indemnity Claim) if the Indemnity Claim seeks an Order, injunction or other equitable relief or relief for other than money damages against the indemnified party that the indemnified party reasonably determines, after conferring with its counsel, cannot be separated from any related claim for money damages.  If such equitable relief or other relief portion of the Indemnity Claim can be so separated from that for money damages, the indemnifying party shall be entitled to assume the defense of the portion relating to money damages.

 

8.5          Cooperation.  If requested by the indemnifying party, the indemnified party agrees to cooperate with the indemnifying party and its counsel in contesting or defending against any Indemnity Claim that the indemnifying party elects to contest or defend or, if appropriate, in making any counterclaim against the Person asserting the Indemnity Claim, or any cross-complaint against any Person, and the indemnifying party will reimburse the indemnified party for reasonable expenses incurred by it in so cooperating.  At no cost or expense to the indemnified party, the indemnifying party shall reasonably cooperate with the indemnified party and its counsel in contesting any Indemnity Claim.

 

8.6          Right to Participate.  The indemnified party agrees to afford the indemnifying party and its counsel the opportunity to be present at, and to participate in, conferences with all Persons, including Governmental Authorities, asserting any Indemnity Claim against the indemnified party or conferences with representatives of or counsel for such Persons.  The indemnifying party agrees to provide the same participation rights to the indemnified party and its counsel with respect to any Indemnity Claims that the indemnifying party elects to contest or defend in accordance with Section 8.4(a).

 

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8.7          Reimbursements.  In calculating any amount to be paid by an indemnifying party by reason of the provisions of this Agreement, the amount shall be reduced by all reimbursements (including, without limitation, insurance proceeds) received by the indemnified party related to the Damages (net of any costs of recovering such reimbursements).

 

8.8          Limitations on Indemnification.

 

(a)           To the extent the Acquirer Indemnitees or the Contributor Indemnitees are entitled to indemnification for Damages pursuant to Section 8.2(a) (but not including Damages for breaches of Fundamental Representations) or Section 8.1(a) (but not including Damages for breaches of Acquirer Fundamental Representations), respectively, the Contributor or the Acquirer, as the case may be, shall not be liable for those Damages unless the aggregate amount of Damages exceeds $1,800,000 (the “Deductible”), and then only to the extent of any such excess; provided, however, that no indemnified party shall submit a claim for indemnification to the indemnifying party unless the Damages in respect of such claim (or series of related claims) exceeds $50,000 (each such claim (or series of related claims) with Damages that does not exceed $50,000, a “De Minimis Claim”); provided, further, that neither the Contributor nor the Acquirer shall be liable for Damages pursuant to Section 8.2(a) (but not including Damages for breaches of Fundamental Representations) or Section 8.1(a) (but not including Damages for breaches of Acquirer Fundamental Representations), respectively, that exceed, in the aggregate, $27,000,000 (the “Cap”).

 

(b)           Notwithstanding clause (a) above, to the extent the Acquirer Indemnitees or the Contributor Indemnitees are entitled to indemnification for Damages for claims arising from fraud or related to or arising from Taxes (including, without limitation, in the case of the Acquirer Indemnitees, Damages for breach of the representations or warranties in Section 3.12), the Contributor or the Acquirer, as the case may be, shall be fully liable for such Damages without regard to the Deductible, the Cap or the limitations in clause (a) with respect to De Minimis Claims.  For the avoidance of doubt, the Contributor shall be fully liable for Damages pursuant to Section 8.2(b) and for breaches of Fundamental Representations without regard to the Deductible, the Cap or the limitations in clause (a) with respect to De Minimis Claims and the Acquirer shall be fully liable for Damages pursuant to Sections 8.1(b) or 8.1(c) and for breaches of Acquirer Fundamental Representations without regard to the Deductible, the Cap or the limitations in clause (a) with respect to De Minimis Claims.

 

(c)           Neither Party will be liable as an indemnitor, and each Party hereby waives claims against the other Party, under this Agreement for any consequential, incidental, special, indirect, exemplary or punitive damages based on any theory of liability (including lost profits) suffered or incurred by the indemnified party or parties except to the extent resulting from Indemnity Claims.

 

8.9          Survival.

 

(a)           The liability of the Contributor for the breach of any of the representations and warranties of the Contributor set forth in Article III other than the Fundamental Representations and the matters set forth in Section 3.12 (Taxes) shall be limited to claims for which the Acquirer delivers written notice to the Contributor on or before the date that is twelve (12) months after

 

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the Closing Date. The liability of the Contributor for Damages for claims related to or arising from Taxes (including, without limitation, Damages for claims for breach of covenants or breach of the representations or warranties in Section 3.12) shall be limited to claims for which the Acquirer delivers written notice to the Contributor on or before the date that is ninety (90) days after the expiration of the applicable statute of limitations for assessment of the applicable Tax.  The liability of the Contributor for claims pursuant to Section 8.2(b) or for breach of Fundamental Representations shall not be limited as to time and shall continue indefinitely.

 

(b)           The liability of the Acquirer for the breach of any of the representations and warranties of the Acquirer set forth in Article IV shall be limited to claims for which the Contributor delivers written notice to the Acquirer on or before the date that is three (3) years after the Closing Date.  The liability of the Acquirer for claims pursuant to Sections 8.1(b) or 8.1(c) and for breaches of Acquirer Fundamental Representations shall not be limited as to time and shall continue indefinitely.

 

(c)           Notwithstanding Sections 8.9(a) and 8.9(b), if the Acquirer or the Contributor, as applicable, delivers written notice in reasonable detail to the other party of a claim for indemnification on or prior to the applicable expiration date for such claim, such claim (and the indemnifying party’s liability with regard thereto) shall survive until finally resolved.

 

8.10        Sole Remedy.  After the Closing, no Party shall have liability under this Agreement or the transactions contemplated hereby except as is provided in Section 5.8 or this Article VIII (other than claims or causes of action arising from fraud, and other than claims for specific performance or claims arising under any Transaction Documents (other than this Agreement) (which claims shall be subject to the liability provisions of such Transaction Documents)).  THE PARTIES AGREE THAT THE RESTRICTIONS AND LIMITATIONS ON DAMAGES CONTAINED HEREIN DO NOT DEPRIVE THE PARTIES OF MINIMUM ADEQUATE REMEDIES UNDER TEXAS UCC SECTION 2-719 OR OTHER APPLICABLE LAW.

 

8.11        Express Negligence Rule.  THE INDEMNIFICATION AND ASSUMPTION PROVISIONS PROVIDED FOR IN THIS AGREEMENT HAVE BEEN EXPRESSLY NEGOTIATED IN EVERY DETAIL, ARE INTENDED TO BE GIVEN FULL AND LITERAL EFFECT, AND SHALL BE APPLICABLE WHETHER OR NOT THE LIABILITIES, OBLIGATIONS, CLAIMS, JUDGMENTS, LOSSES, COSTS, EXPENSES OR DAMAGES IN QUESTION ARISE OR AROSE SOLELY OR IN PART FROM THE GROSS, ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, OR OTHER FAULT OF ANY INDEMNIFIED PARTY.  THE ACQUIRER AND THE CONTRIBUTOR ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES CONSPICUOUS NOTICE.  NOTICE IN THIS CONSPICUOUS NOTICE IS NOT INTENDED TO PROVIDE OR ALTER THE RIGHTS AND OBLIGATIONS OF THE PARTIES, ALL OF WHICH ARE SPECIFIED ELSEWHERE IN THIS AGREEMENT.

 

8.12        Consideration Adjustment.  The Parties agree to treat all payments made pursuant to this Article VIII as adjustments to the Cash Consideration for Tax purposes, except as

 

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otherwise required by applicable Law following a final determination by the U.S. Internal Revenue Service or a Governmental Authority with competent jurisdiction.

 

8.13        Knowledge.  The Acquirer Indemnitees’ and the Contributor Indemnitees’  rights under this Agreement or otherwise shall not be diminished by any investigation performed or knowledge acquired or capable of being acquired, whether before or after the date of this Agreement, regarding the accuracy or inaccuracy of any representation or warranty or the performance or non-performance of any covenant.

 

ARTICLE IX
 TERMINATION

 

9.1          Events of Termination.  This Agreement may be terminated at any time prior to the Effective Time:

 

(a)           by mutual written consent of the Contributor and the Acquirer;

 

(b)           by either the Contributor or the Acquirer in writing after the sixtieth (60th) day following the date hereof, if the Closing has not occurred by that date, provided that as of such date the terminating Party or its Affiliates is not in material breach of its representations, warranties or covenants under this Agreement;

 

(c)           by either the Contributor or the Acquirer in writing without prejudice to other rights and remedies the terminating Party or its Affiliates may have (provided the terminating Party and its Affiliates are not otherwise in material default or breach of this Agreement, or have not failed or refused to close without justification hereunder), if the other Party or its Affiliates, as applicable, shall have (i) materially failed to perform its covenants or agreements contained herein required to be performed by such Party or its Affiliates at or prior to the Closing or (ii) materially breached any of its representations or warranties contained herein that has prevented the satisfaction, or would give rise to the failure, of any condition to the obligations of the terminating Party at the Closing; provided, however, that in the case of clauses (i) or (ii), the breaching Party shall have a period of thirty (30) days following written notice from the non-defaulting Party during which to cure any breach of this Agreement if the breach is curable; or

 

(d)           by either the Contributor or the Acquirer in writing, without liability, if there shall be any Order binding on any Party that prohibits or restrains such Party from consummating the Transactions; provided, however, that the applicable Party shall have used its reasonable best efforts to have any such Order removed but it shall not have been removed within thirty (30) days after entry by the Governmental Authority.

 

9.2          Effect of Termination.  In the event of the termination of this Agreement by a Party as provided in Section 9.1, this Agreement shall thereafter become void except for this Section 9.2 and Article X.  Nothing in this Section 9.2 shall be deemed to release any Party from any liability for any willful and material inaccuracy, violation or breach by such Party of the terms and provisions of this Agreement, or to impair any rights of any Party under this Agreement.

 

40

 

ARTICLE X
 MISCELLANEOUS

 

10.1        Expenses.  Unless otherwise specifically provided in this Agreement, each Party shall pay its own expenses incident to this Agreement or the other Transaction Documents and all action taken in preparation for effecting the provisions of this Agreement and the other Transaction Documents.

 

10.2        Notices.  Unless otherwise specifically provided in this Agreement, any notice, request, instruction, correspondence or other document to be given under or in relation to this Agreement shall be made in writing and shall be deemed to have been properly given if:  (i) personally delivered (with written confirmation of receipt); or (ii) delivered by a recognized overnight delivery service (delivery fees prepaid), in either case to the appropriate address set forth below:

 

If to the Contributor, addressed to:

 

Devon Gas Services, L.P.
 333 W. Sheridan Avenue
 Oklahoma City, Oklahoma 73102
 Attn: General Counsel

 

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

 

Vinson & Elkins LLP
 1001 Fannin, Suite 2500
 Houston, Texas 77002
 Attn: E. Ramey Layne

 

If to the Acquirer, addressed to:

 

EnLink Midstream Partners, LP
 2501 Cedar Springs Rd.
 Dallas, Texas 75201
 Attn: General Counsel

 

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

 

Baker Botts L.L.P.
 2001 Ross Avenue, Suite 700
 Dallas, Texas 75201
 Attn: Douglass M. Rayburn

 

Any Party may change any address to which notice is to be given to it by giving notice as provided above of such change of address.

 

41

 

10.3        Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)           This Agreement shall be governed and construed in accordance with the substantive laws of the State of Texas without reference to principles of conflicts of law that would result in the application of the laws of another jurisdiction.

 

(b)           THE PARTIES VOLUNTARILY AND IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF OKLAHOMA AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA IN OKLAHOMA COUNTY, OKLAHOMA, OVER ANY DISPUTE BETWEEN OR AMONG THE PARTIES ARISING OUT OF THIS AGREEMENT, OTHER THAN A DISPUTE SUBJECT TO SECTION 10.4, AND EACH PARTY IRREVOCABLY AGREES THAT ALL SUCH CLAIMS IN RESPECT OF SUCH DISPUTE SHALL BE HEARD AND DETERMINED IN SUCH COURTS.  THE PARTIES HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH DISPUTE ARISING OUT OF THIS AGREEMENT BROUGHT IN SUCH COURT OR ANY DEFENSE OF INCONVENIENT FORUM FOR THE MAINTENANCE OF SUCH DISPUTE.  EACH PARTY AGREES THAT A JUDGMENT IN ANY SUCH DISPUTE MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE LAW.

 

(c)           EACH OF THE PARTIES HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY DISPUTE OR OTHER PROCEEDING RELATED THERETO BROUGHT IN CONNECTION WITH THIS AGREEMENT.

 

10.4        Arbitration.  Any dispute, controversy or claim, of any and every kind or type, whether based on contract, tort, statute, regulations, or otherwise, between the Parties, arising out of, connected with, or relating in any way to this Agreement or the obligations of the Parties hereunder, including any dispute as to the existence, validity, construction, interpretation, negotiation, performance, non-performance, breach, termination or enforceability of this Agreement (in each case, a “Dispute”), shall be resolved solely and exclusively in accordance with the procedures specified in this Section 10.4.  The Parties shall attempt in good faith to resolve any Dispute by mutual discussions within thirty (30) days after the date that one Party gives written notice to the other Parties of such a Dispute in accordance with Section 10.2.  If the Dispute is not resolved within such thirty (30) day period, or such longer period that may subsequently be agreed to in writing by the parties to the Dispute, the Dispute shall be finally settled by arbitration administered by JAMS under its Comprehensive Arbitration Rules & Procedures, and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The arbitration shall be held in Oklahoma City, Oklahoma, and presided over by three (3) arbitrators.  If the Dispute is not settled within the above operative time period, the Party providing the aforesaid notice or the Parties receiving such notice may initiate the arbitration with JAMS.  The Party who initiates the arbitration with JAMS shall also provide notice to JAMS and the opposing Party at the time of the initiation of the arbitration of the name of the Party selected arbitrator.  The opposing Party shall file their answering statement with JAMS within forty-five (45) days of their receipt of the notice of filing from JAMS.  The name of their party appointed arbitrator shall be included in such answering statement.  The two Party-appointed arbitrators shall select a third arbitrator, who shall serve as the chairperson.  The

 

42

 

arbitration award shall identify whether there is a prevailing party in the arbitration and include an award in favor of such prevailing party and against each losing party, jointly and severally, for costs and expenses, including the actual litigation fees and costs (including reasonable attorney fees) the prevailing party incurred, excluding any contingent or deferred fees and costs.  This agreement to arbitrate shall be binding upon the successors, assignees and any trustee or receiver of any Party.

 

10.5        Public Statements.  The Parties shall consult with each other and no Party shall issue any public announcement or statement with respect to the Transactions without the consent of the other Party, which shall not be unreasonably withheld or delayed, unless the Party desiring to make such announcement or statement, after seeking such consent from the other Party, obtains advice from legal counsel that a public announcement or statement is required by applicable Law or securities exchange regulations.

 

10.6        Form of Payment.  All payments hereunder shall be made in United States dollars and, unless the Parties making and receiving such payments shall agree otherwise or the provisions hereof provide otherwise, shall be made by wire or interbank transfer of immediately available funds on the date such payment is due to such account as the Party receiving payment may designate at least three (3) days prior to the proposed date of payment.

 

10.7        Entire Agreement; Amendments and Waivers.  This Agreement and the documents and instruments and other agreements specifically referred to herein or delivered pursuant hereto, including the exhibits and schedules hereto, (a) constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof and (b) are not intended to confer upon any other Person any rights or remedies hereunder except as Article VIII or Article X contemplates or except as otherwise expressly provided herein or therein.  Each Party agrees that (i) no other Party (including its agents and representatives) has made any representation, warranty, covenant or agreement to or with such Party relating to this Agreement or the Transactions, other than those expressly set forth in the documents and instruments and other agreements specifically referred to herein or delivered pursuant hereto, including the exhibits and schedules hereto, and (ii) such Party has not relied upon any representation, warranty, covenant or agreement relating to this Agreement or the transactions contemplated hereby other than those referred to in clause (i) above.  No supplement, modification or waiver of this Agreement shall be binding unless executed in writing by the Parties.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless otherwise expressly provided.

 

10.8        Binding Effect and Assignment.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns, but neither this Agreement nor any of the rights, benefits or obligations hereunder shall be assigned, by operation of law or otherwise, by any Party without the prior written consent of the other Party.

 

10.9        Severability.  If any provision of the Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, the Parties shall meet promptly and negotiate substitute provisions for those

 

43

 

rendered or declared illegal or unenforceable that gives effect to the intent of the Parties to the maximum extent permitted by applicable Law, but all of the remaining provisions of this Agreement shall remain in full force and effect and will not be affected or impaired in any way thereby.  To the extent permitted by applicable Law, each Party hereby waives any provision of Law that renders any such provision prohibited or unenforceable in any respect.

 

10.10      Interpretation.

 

(a)           The Parties agree that they have been represented by counsel during the negotiation and execution of this Agreement, and, therefore, the Parties waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the Party drafting such agreement or document.

 

(b)           The words “this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited.  The words “this Article,” “this Section” and “this clause,” and words of similar import, refer only to the Article, Section or clause hereof in which such words occur.  Unless the context otherwise demands, the word “or” is exclusive and the word “including” (in its various forms) means including without limitation.

 

(c)           Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender, and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and vice versa, unless the context otherwise requires.

 

(d)           References herein to any Person shall include such Person’s successors and permitted assigns; provided, however, that nothing contained in this clause (d) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement.

 

(e)           References herein to any Law shall be deemed to refer to such Law as amended, reenacted, supplemented or superseded in whole or in part and in effect from time to time and also to all rules and regulations promulgated thereunder.

 

(f)            References herein to any Contract mean such Contract as amended, supplemented or modified (including any waiver thereto) in accordance with the terms thereof, except that with respect to any Contract listed on any schedule hereto, all such amendments, supplements or modifications must also be listed on such schedule.

 

(g)           Each representation, warranty, covenant and agreement contained in this Agreement will have independent significance, and the fact that any conduct or state of facts may be within the scope of two or more provisions in this Agreement, whether relating to the same or different subject matters and regardless of the relative levels of specificity, shall not be considered in construing or interpreting this Agreement.

 

(h)           Unless otherwise expressly provided herein to the contrary, accounting terms shall have the meaning given by GAAP.

 

44

 

10.11      Headings and Schedules.  The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.  The schedules referred to herein are attached hereto and incorporated herein by this reference, and the matters disclosed in those schedules shall be deemed to qualify the representation or warranty to which they expressly relate and any other representation or warranty, but only to the extent that it is reasonably apparent on its face that such disclosure is applicable to such other representation or warranty.  The Parties acknowledge and agree that the schedules may include certain items and information solely for informational purposes for the convenience of the Parties.

 

10.12      Counterparts.  This Agreement may be executed in one or more counterparts, including electronic, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

10.13      Determinations by the Acquirer.  With respect to any notice, consent, approval or waiver that is required to be or may be taken or given by the Acquirer (a) pursuant to the terms of this Agreement at or prior to the Effective Time or (b) pursuant to Article VIII after the Effective Time, such notice, consent, approval or waiver shall be taken or given by the Conflicts Committee on behalf of the Acquirer.

 

[Signature page follows]

 

45

 

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

 

	
 
    	
DEVON   GAS SERVICES, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Darryl G. Smette
    
	
 
    	
Name:
    	
Darryl   G. Smette
    
	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ENLINK MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
EnLink Midstream GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Benjamin D. Lamb
    
	
 
    	
Name:
    	
Benjamin D. Lamb
    
	
 
    	
Title:
    	
Senior Vice President-Finance and Corporate   Development
    

 

SIGNATURE PAGE TO THE

CONTRIBUTION AGREEMENT

 

 

EXHIBIT A

 

FORM OF ASSIGNMENT AND BILL OF SALE OF CONTRIBUTED ASSETS

 

THIS ASSIGNMENT AND BILL OF SALE OF CONTRIBUTED ASSETS (this “Assignment”), effective as of [·] (Oklahoma City Time) on [·], 2015 (the “Effective Time”), is between Devon Gas Services, L.P., a Texas limited partnership (“Assignor”), and [EnLink Midstream Operating, LP a Delaware limited partnership] (“Assignee”). Assignor and Assignee are each, individually, referred to herein as a “Party” and, collectively, as the “Parties”.

 

Capitalized terms used but not defined herein shall have the respective meanings set forth in that certain Contribution, Conveyance and Assumption Agreement (the “Contribution Agreement”), dated as of [·], 2015, by and between Devon Gas Services, L.P., a Texas limited partnership, and EnLink Midstream Partners, LP, a Delaware limited partnership.

 

Section 1.                                           Assignment.  The conveyance and assignment herein shall be deemed effective as of the Effective Time. For Ten Dollars ($10.00) and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), Assignor does hereby forever GRANT, BARGAIN, SELL, CONVEY, ASSIGN, TRANSFER, SET OVER AND DELIVER unto Assignee, all of Assignor’s right, title and interest in and to the following interests and properties, which shall exclude the Excluded Assets (such right, title and interest, collectively, the “Contributed Assets”):

 

(a)                                 the Port of Victoria terminal facilities, including eight truck bays, three 50,000 stock tank barrels, or 42 U.S. gallons liquid volume, of crude oil or other liquid hydrocarbons (“Bbls”) tanks and a fourth tank under construction, the shared water dock and the additional shared water dock currently being negotiated (collectively, with such other assets listed on Exhibit A, the “POV Terminal Facilities”);

 

(b)                                 the Cuero truck stations currently under construction and located approximately one mile from the Black Hawk North Central Delivery Point, which truck station will include eight truck bays and two 80,000 Bbls tanks (collectively, with such other assets listed on Exhibit B, the “Cuero Terminal Facilities”);

 

(c)                                  the crude oil pipeline booster pump and associated facilities currently under construction and located near Texas State Highway 77 in Victoria County, Texas (collectively, with such other assets listed on Exhibit C, the “Highway 77 Booster Facilities”);

 

(d)                                 the three lateral pipelines and associated pipeline easements located adjacent to the VEX Pipeline in Victoria County, Texas, consisting of approximately nine miles of six-inch pipeline and five miles of four-inch pipeline (collectively, with such other assets listed on Exhibit D, the “Tauber Pipeline Facilities”);

 

(e)                                  subject to obtaining any required Consents in accordance with Section 5.9 of the Contribution Agreement, to the extent that they may be assigned, all permits, licenses, servitudes, easements, rights-of-way, surface leases, other surface interests and surface rights described on Exhibit E attached hereto and all permits, licenses, servitudes, easements, rights-of-way, surface leases, other surface interests and surface rights used directly or solely, for or

 

 

relating to, the ownership, operation, or other use of the Contributed Assets (collectively, the “Real Property Interests”), and all rights and interests in the lands covered by the Real Property Interests (such lands, the “Lands”);

 

(f)                                   all equipment, machinery, fixtures and other personal, movable and mixed property, operational or nonoperational, known or unknown, located on any of the Lands or that is used or held for use primarily in connection with the Real Property Interests or the Contributed Assets, and including pipelines and gathering systems located on the Lands, pumps, motors, machinery, platforms, rods, tanks, boilers, fixtures, compression equipment, flowlines, manifolds, processing and separation facilities, pads, structures, materials, and other items primarily used in the operation of the Contributed Assets;

 

(g)                                  all of the files, records, information and data, whether written or electronically stored, primarily relating to the Contributed Assets and/or Real Property Interests in Assignor’s possession, including but not limited to: (i) land and title records (including abstracts of title, title opinions and title curative documents); (ii) correspondence; (iii) operations, environmental, production and accounting records and (iv) facility records; provided that the foregoing shall not include (A) portions of any of Assignor’s corporate minute books, financial records and other business records to the extent related to the businesses of Assignor other than the Business or (B) any records protected by attorney-client privilege or attorney work product doctrine; and

 

(h)                                 all claims and causes of action (including claims for adjustments or refunds) to the extent attributable to any of the Assumed Liabilities (as defined herein).

 

TO HAVE AND TO HOLD the Contributed Assets unto Assignee and its successors and assigns, forever, subject, however, to the covenants, terms and conditions set forth herein and in the Contribution Agreement, and subject to the Permitted Liens.

 

Section 2.                                           Disclaimers of Warranties.

 

(a)                                 (i) EXCEPT AS SET FORTH IN ARTICLE III OF THE CONTRIBUTION AGREEMENT, ASSIGNOR MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS, STATUTORY OR IMPLIED WITH REGARD TO THE CONTRIBUTED ASSETS OR THE TRANSACTIONS, AND (ii) AS SET FORTH IN SECTION 3.18 OF THE CONTRIBUTION AGREEMENT, ASSIGNOR EXPRESSLY DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR ANY OTHER REPRESENTATION OR WARRANTY MADE OR COMMUNICATED (ORALLY OR IN WRITING) TO ASSIGNEE OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, CONSULTANTS OR REPRESENTATIVES (INCLUDING ANY OPINION, INFORMATION, PROJECTION OR ADVICE THAT MAY HAVE BEEN PROVIDED TO ASSIGNEE BY ANY CONTRIBUTOR INDEMNITEE).

 

(b)                                 ASSIGNOR AND ASSIGNEE AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE DISCLAIMERS OF CERTAIN REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECTION 2

 

2

 

ARE “CONSPICUOUS” DISCLAIMERS FOR THE PURPOSE OF ANY SUCH APPLICABLE LAW.

 

Section 3.                                           Assumed Obligations.  Assignee hereby acquires and accepts all of Assignor’s rights, title and interest in and to the Contributed Assets and hereby assumes and agrees to fulfill, perform, pay and discharge (or cause to be fulfilled, performed, paid and discharged) all Damages pertaining to the operation or ownership of the Contributed Assets (all of said Damages, herein being referring to as the “Assumed Liabilities”) in accordance with the Contribution Agreement.

 

Section 4.                                           EFFECT OF ASSIGNMENT.  NOTHING CONTAINED IN THIS ASSIGNMENT SHALL BE DEEMED TO SUPERSEDE, MODIFY, LIMIT, EXTEND, ADD TO, AMEND OR IN ANY WAY AFFECT ANY OF THE RIGHTS OR OBLIGATIONS (INCLUDING, FOR THE AVOIDANCE OF DOUBT, ANY REPRESENTATION OR WARRANTY) OF ANY PARTY UNDER THE CONTRIBUTION AGREEMENT.

 

Section 5.                                           Further Assurances.  Assignor and Assignee agree to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other Party for carrying out the purposes of this Assignment.

 

Section 6.                                           Contribution Agreement.  This Assignment is delivered pursuant to, and hereby made subject to, the terms and conditions of the Contribution Agreement.  In the event that any provision of this Assignment is construed to conflict or be inconsistent with any provision of the Contribution Agreement, the provisions of the Contribution Agreement shall be deemed controlling to the extent of such conflict or inconsistency.

 

Section 7.                                           Successors and Assigns.  This Assignment shall be binding upon and inure to the benefit of Assignee and Assignor and their respective successors and permitted assigns.

 

Section 8.                                           Recordation.  To facilitate recordation, there may be omitted from the Exhibits to this Assignment in certain counterparts descriptions of property located in recording jurisdictions other than the jurisdiction in which the particular counterpart is to be filed or recorded.

 

Section 9.                                           Governing Law; Jurisdiction; Venue; Jury Waiver. THIS ASSIGNMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS ASSIGNMENT OR THE TRANSACTIONS OR THE RIGHTS, DUTIES AND THE LEGAL RELATIONS AMONG THE PARTIES HERETO AND THERETO SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER JURISDICTION (EXCEPT TO THE EXTENT THAT MANDATORY PRINCIPLES OF CONFLICTS OF LAW REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WHEREIN ANY OF THE CONTRIBUTED ASSETS ASSIGNED PURSUANT HERETO ARE LOCATED). ALL OF THE PARTIES HERETO CONSENT TO THE EXERCISE OF JURISDICTION IN PERSONAM BY THE STATE COURTS OF THE STATE OF OKLAHOMA OR THE FEDERAL COURTS OF THE UNITED STATES LOCATED IN OKLAHOMA COUNTY, OKLAHOMA FOR ANY ACTION ARISING OUT OF THIS

 

3

 

ASSIGNMENT, OTHER THAN A DISPUTE SUBJECT TO SECTION 10.4 OF THE CONTRIBUTION AGREEMENT. EACH PARTY HERETO VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS ASSIGNMENT. THE PARTIES FURTHER AGREE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, THAT A FINAL AND NONAPPEALABLE JUDGMENT AGAINST A PARTY IN ANY ACTION OR PROCEEDING CONTEMPLATED ABOVE SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN ANY OTHER JURISDICTION WITHIN OR OUTSIDE THE UNITED STATES BY SUIT ON THE JUDGMENT, A CERTIFIED OR EXEMPLIFIED COPY OF WHICH SHALL BE CONCLUSIVE EVIDENCE OF THE FACT AND AMOUNT OF SUCH JUDGMENT.  TO THE EXTENT THAT EITHER PARTY OR ANY OF ITS AFFILIATES HAS ACQUIRED, OR HEREAFTER MAY ACQUIRE, ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, SUCH PARTY (ON ITS OWN BEHALF AND ON BEHALF OF ITS AFFILIATES) HEREBY IRREVOCABLY (i) WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS WITH RESPECT TO THIS ASSIGNMENT AND (ii) SUBMITS TO THE PERSONAL JURISDICTION OF ANY COURT DESCRIBED IN THIS SECTION 9.

 

Section 10.                                    Miscellaneous.  This Assignment may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute on instrument binding on all of the parties.  The headings of the several provisions are included for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Assignment.

 

[Signature pages follow.]

 

4

 

IN WITNESS WHEREOF, each Party has caused this Assignment to be duly executed the day and year first above written.

 

	
 
    	
Devon   Gas Services, L.P.
    
	
 
    	
a   Texas limited partnership
    
	
 
    	
 
    
	
 
    	
By:   Devon Gas Operating, Inc., its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
STATE OF   [            ]
    	
§
    	
 
    
	
 
    	
§
    	
 
    
	
COUNTY OF   [            ]
    	
§
    	
 
    

 

This instrument was acknowledged before me on [                          ], 2015, by [                          ], [                          ] of Devon Gas Operating, Inc., a Delaware limited liability company, on behalf of said limited partnership.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    	
 
    
	
 
    	
Printed   Name:
    	
 
    
	
 
    	
My   Commission Expires:
    	
 
    
				

 

Signature and Acknowledgment page to Assignment and Bill of Sale

 

 

	
 
    	
EnLink Midstream Operating, LP
    
	
 
    	
a Delaware limited partnership
    
	
 
    	
 
    
	
 
    	
By: EnLink Midstream Operating GP, LLC, its   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
STATE OF   [            ]
    	
§
    	
 
    
	
 
    	
§
    	
 
    
	
COUNTY OF   [            ]
    	
§
    	
 
    

 

This instrument was acknowledged before me on [                          ], 2015, by [                          ], [                          ] of EnLink Midstream Operating GP, LLC, a Delaware limited liability company, on behalf of said limited liability company.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    	
 
    
	
 
    	
Printed   Name:
    	
 
    
	
 
    	
My   Commission Expires:
    	
 
    
				

 

Signature and Acknowledgment page to Assignment and Bill of Sale

 

 

Exhibit A

 

POV Terminal Facilities

 

(See attached)

 

Exhibit A to Assignment and Bill of Sale

 

 

Exhibit B

 

Cuero Terminal Facilities

 

(See attached)

 

Exhibit B to Assignment and Bill of Sale

 

 

Exhibit C

 

Highway 77 Booster Facilities

 

(See attached)

 

Exhibit C to Assignment and Bill of Sale

 

 

Exhibit D

 

Tauber Pipeline Facilities

 

(See attached)

 

Exhibit D to Assignment and Bill of Sale

 

 

Exhibit E

 

Real Property Interests

 

(See attached)

 

Exhibit E to Assignment and Bill of Sale

 

 

EXHIBIT B

 

FORM OF ASSIGNMENT OF CONTRIBUTED INTERESTS

 

This Assignment (this “Assignment”) is made and entered into effective as of [·] (Oklahoma City Time) on [·], 2015 (the “Effective Time”), by and between Devon Gas Services, L.P., a Texas limited partnership, (the “Assignor”), and EnLink Midstream Operating, LP, a Delaware limited partnership (the “Assignee”) and a wholly-owned subsidiary of EnLink Midstream Partners, LP, a Delaware limited partnership (the “Partnership”).  Assignor and Assignee are each referred to herein individually as a “Party” and collectively as the “Parties.”

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in that certain Contribution, Conveyance and Assumption Agreement (the “Contribution Agreement”), dated as of March 24, 2015, by and between the Assignor and the Partnership.

 

W I T N E S S E T H:

 

WHEREAS, the Assignor owns all of the outstanding limited liability company interests (including, without limitation, any and all income, distributions, value, rights, benefits and privileges associated therewith or deriving therefrom, the “Contributed Interests”) in, and is the sole member of, Victoria Express Pipeline, L.L.C., a Texas limited liability company (“VEX”); and

 

WHEREAS, pursuant to the Contribution Agreement, Assignor has agreed to contribute, assign, transfer and convey the Contributed Interests to the Assignee, and the Parties hereby desire to effect such contribution, assignment, transfer and conveyance.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

 

1.           Assignment.  Subject to and in accordance with the terms of the Contribution Agreement, the Assignor hereby CONTRIBUTES, ASSIGNS, TRANSFERS AND CONVEYS to the Assignee the Contributed Interests, free and clear of all Liens (other than restrictions under applicable federal and state securities Laws), and the Assignee hereby accepts the same.

 

2.           Substitution as Member.  From and after the Closing, the Assignee shall be substituted for the Assignor as a member of VEX with respect to the Contributed Interests and shall become the sole member of VEX.  From and after the Closing, the Assignor shall cease to be a member of VEX and to have or exercise any right or power as a member of VEX or with respect to the Contributed Interests.

 

 

3.           Disclaimer of Warranties.

 

(a)           THE ASSIGNOR IS CONVEYING THE CONTRIBUTED INTERESTS WITHOUT REPRESENTATION OR WARRANTY, EXCEPT AS PROVIDED IN THE CONTRIBUTION AGREEMENT.

 

(b)           The Assignor and the Assignee agree that, to the extent required by applicable Law to be effective, the disclaimers contained in Section 3(a) herein, are “conspicuous” disclaimers.

 

4.           General Provisions.

 

(a)           Binding Effect.  This Assignment will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and permitted assigns.

 

(b)           Governing Law.  This Assignment and any claim, controversy or dispute arising under or related to this Assignment and the transactions or the rights, duties and the legal relations among the parties hereto shall be governed by and construed in accordance with the substantive Laws of the State of Texas without reference to principles of conflicts of Law that would result in the application of the Laws of another jurisdiction.

 

(c)           Consent to Jurisdiction.  The Parties voluntarily and irrevocably submit to the jurisdiction of the courts of the state of Oklahoma and the federal courts of the United States of America in Oklahoma County, Oklahoma over any dispute between or among the Parties arising out of this Assignment, other than a dispute subject to Section 10.4 of the Contribution Agreement.

 

(d)           Amendment and Modification.  This Assignment may be amended, modified or supplemented only by written agreement of the Parties.

 

(e)           Waiver of Compliance.  Any failure of any Party to comply with any obligation, covenant, agreement or condition in this Assignment may be waived by the Party entitled to the benefits thereof only by a written instrument signed by such Party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

 

(f)            No Third Party Rights.  This Assignment shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns, and none of the provisions of this Assignment shall be for the benefit of or enforceable by any third party, including any creditor of any Party or any of their Affiliates.  No such third party shall obtain any right under any provision of this Assignment or shall by reasons of any such provision make any claim in respect of any liability (or otherwise) against any other Party.

 

(g)           Entire Agreement. This Assignment, the Contribution Agreement and the other Transaction Documents constitute the entire agreement and understanding of the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both oral and written, between the Parties with respect to such subject matter.  In the event of a

 

2

 

conflict or any inconsistencies between the terms and conditions of this Assignment and the Contribution Agreement, the terms and conditions of the Contribution Agreement shall control.

 

(h)           Counterparts. This Assignment may be executed in one or more counterparts, including electronic, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(i)            Further Assurances.  Each Party hereby agrees to take such further actions and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other Party for carrying out the purposes of this Assignment.

 

[Signature page follows]

 

3

 

IN WITNESS WHEREOF, this Assignment has been duly executed by each of the Parties as of the date and year first above written.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
DEVON   GAS SERVICES, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Devon Gas Operating, Inc., its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
ENLINK   MIDSTREAM OPERATING, LP
    
	
 
    	
 
    
	
 
    	
By:   EnLink Midstream Operating GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

SIGNATURE PAGE TO

ASSIGNMENT OF CONTRIBUTED INTERESTS

 

 

SCHEDULE 1.1(a)
 KNOWLEDGE PERSONS

 

Jeff Ritenour

 

Todd Morgan

 

Derek Sumner

 

Michael Palmer

 

1

 

SCHEDULE 2.3(a)(ii)
 CAPITAL EXPENDITURES PROJECTS

 

POV Terminal Facilities

 

·                  Addition of a fourth 50,000 BBL storage tank and a VDU tie-in to a second dock (currently being negotiated)

 

·                  Fire suppression upgrades

 

·                  Installation of a stationary meter prover at the marine dock

 

VEX Pipeline

 

·                  Installation of pig receipt tanks at the VEX Pipeline pig receiver

 

·                  Addition of BHP tie-in pumps

 

·                  Addition of BHP CDP tie-in pipe

 

Cuero Terminal Facilities

 

·                  Ongoing construction of the Cuero truck station located approximately one (1) mile from the Black Hawk North Central Delivery Point, which truck station will include eight (8) truck bays and two (2) 80,000 BBL tanks

 

Highway 77 Booster Facilities

 

·                  Ongoing construction of the crude oil pipeline booster pump and associated facilities located near Texas State Highway 77 in Victoria County, Texas

 

2

 

SCHEDULE 2.4
 ASSUMED CONTRACTS AND LEASES

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
Transportation   Services Agreement
    	
 
    	
Victoria   Express Pipeline, L.L.C.
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
06.27.2014
    
	
U-SA-00051-2014
    	
 
    	
EPC   Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
09.05.2014
    
	
U-SA-00040-2014
    	
 
    	
EPC   Agreement — BHP Central Pump Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
01.29.2015
    
	
U-SA-00015-2015
    	
 
    	
EPC   Agreement — POV 50k BBL Crude Storage
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
02.24.2015
    
	
U-SA-00050-2014
    	
 
    	
Work   Order 4500063429 — Second Dock at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
10.14.2014
    
	
U-SA-00042-2014
    	
 
    	
Work   Order 4500062033 — Fire Protection at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
U-SA-00069-2014
    	
 
    	
Work   Order 4500066068 — Highway 77 Booster Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
12.04.2014
    
	
U-SA-00069-2014
    	
 
    	
Work   Order 4500061484 — BPS Skid Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
02.09.2015
    
	
 
    	
 
    	
Confidentiality   Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
07.27.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — BHP Central Pump Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.14.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — POV 50k BBL Crude Storage
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
09.02.2014
    

 

3

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
Confidentiality   Agreement — Highway 77 Booster Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — Fire Protection at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — Second Dock at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Purchase   Order 4500070824 — POV Stationary Compact Prover
    	
 
    	
Devon   Energy Production

Company,   L.P.
    	
 
    	
Flow   Management Devices, LLC
    	
 
    	
02.27.2015
    
	
 
    	
 
    	
Purchase   Order 4500065928 — VEX Pipeline Actuators
    	
 
    	
Devon   Energy Production

Company,   L.P.
    	
 
    	
McJunkin   Red Man Corporation
    	
 
    	
11.13.2014
    
	
 
    	
 
    	
Purchase   Order 4500070463 — VEX Pig Diaphragm Project
    	
 
    	
Devon   Energy Production

Company,   L.P.
    	
 
    	
Odessa   Pumps & Equipment, Inc.
    	
 
    	
02.19.2015
    
	
 
    	
 
    	
Purchase   Order 4500070279 — VEX Pig Containment Tanks
    	
 
    	
Devon   Energy Production

Company,   L.P.
    	
 
    	
Long   Industries, Inc.
    	
 
    	
02.16.2015
    
	
 
    	
 
    	
Purchase   Order 4500070456 — VEX Pig Containment Air Compressor
    	
 
    	
Devon   Energy Production

Company,   L.P.
    	
 
    	
Odessa   Pumps & Equipment, Inc.
    	
 
    	
02.19.2015
    
	
 
    	
 
    	
Service   Agreement — POV Operations
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
AccuShip,   LLC
    	
 
    	
03.01.2013
    
	
 
    	
 
    	
Ground   Lease - POV
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
08.04.2011
    
	
 
    	
 
    	
Port   of Victoria Liquid Dock Operating Permit
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
04.01.2013
    
	
 
    	
 
    	
Connection   and Facilities Installation Agreement for the Victoria Express Pipeline
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
BHP   Billiton Petroleum (Eagle Ford Gathering) LLC
    	
 
    	
09.01.2013
    
	
TGP 5138 FA
    	
 
    	
Interconnect   Agreement — Delivery
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Tennessee   Gas Pipeline Company, L.L.C.
    	
 
    	
10.    .2012
    
	
 
    	
 
    	
Rental   Agreement — Non-Potable Water Tank
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Skid-O-Kan
    	
 
    	
04.08.2014
    
	
456629
    	
 
    	
Lease   Agreement — POV Terminal Building
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
07.01.2014
    
	
872995
    	
 
    	
Lease   Agreement — POV Mobile Office
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
07.01.2014
    
	
505551
    	
 
    	
Lease   Agreement — Cuero Mobile Office
    	
 
    	
Devon   Energy Corporation
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
12.19.2014
    
	
56680232
    	
 
    	
Electric   Service Agreement — POV Construction Trailer
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
06.16.2014
    
	
27762
    	
 
    	
Electric   Service Agreement — Highway 77 
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
09.11.2014
    

 

4

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
North
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
49357
    	
 
    	
Electric   Service Agreement — Highway 77 North Upgrade
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
01.21.2015
    
	
38590
    	
 
    	
Electric   Service Agreement — Hiller Road Valve Station
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
09.11.2014
    
	
199850001
    	
 
    	
Electric   Service Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
11.04.2014
    
	
182370010
    	
 
    	
Electric   Service Agreement — Main Line Valve #1
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
18237009
    	
 
    	
Electric   Service Agreement — Main Line Valve #2
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
182370011
    	
 
    	
Electric   Service Agreement — Main Line Valve #3
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
10032789498973000
    	
 
    	
Electric   Service Agreement — POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Ambit   Energy
    	
 
    	
09.16.2014
    
	
10032789478685300
    	
 
    	
Electric   Service Agreement — POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Ambit   Energy
    	
 
    	
09.16.2014
    

 

5

 

SCHEDULE 3.3
 NON-CONTRAVENTION

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
Ground   Lease - POV
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
08.04.2011
    
	
Service   Agreement — POV Operations
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
AccuShip,   LLC
    	
 
    	
03.01.2013
    
	
Port   of Victoria Liquid Dock Operating Permit
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
04.01.2013
    

 

6

 

SCHEDULE 3.4
 CONSENTS

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
Ground   Lease - POV
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
08.04.2011
    
	
Service   Agreement — POV Operations
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
AccuShip,   LLC
    	
 
    	
03.01.2013
    
	
Port   of Victoria Liquid Dock Operating Permit
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
04.01.2013
    

 

7

 

SCHEDULE 3.5
 LITIGATION

 

NONE

 

8

 

SCHEDULE 3.8(B)-1
 REAL PROPERTY

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
(*)   Deed
    	
 
    	
Lauren   S. Bartholomew, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
02.15.2013
    	
 
    	
DeWitt
    	
 
    	
465
    	
 
    	
344
    	
 
    	
Bartholomew   Site Deed 1
    
	
(*)   General Warranty Deed
    	
 
    	
Hilbert J. Hahn, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.18.2013
    	
 
    	
DeWitt
    	
 
    	
487
    	
 
    	
41
    	
 
    	
Bartholomew   Site Deed 2
    
	
(*)   Special Warranty Deed
    	
 
    	
Barbara   Ann Costlow
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
08.27.2014
    	
 
    	
DeWitt
    	
 
    	
520
    	
 
    	
641
    	
 
    	
Cuero   Terminal Site Deed
    
	
(*)   Special Warranty Deed
    	
 
    	
Ranch   Land Partners, Ltd.
    	
 
    	
GeoSouthern   Energy Corp.
    	
 
    	
11.16.2012
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Highway   77 Site Deed; Doc ID #201213175
    
	
(*)   Warranty Deed
    	
 
    	
Julius   Peter Zissa, et al.
    	
 
    	
GeoSouthern   Lavaca Prop.
    	
 
    	
05.18.2011
    	
 
    	
Victoria
    	
 
    	
567
    	
 
    	
283
    	
 
    	
Valve   Site Deed
    
	
(#)   Ground Lease
    	
 
    	
Victoria   County Nav. District
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.04.2011
    	
 
    	
Victoria
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
POV   Terminal Site
    
	
(#)   Surface Lease
    	
 
    	
Debra   Voelkel Benge
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.01.2013
    	
 
    	
DeWitt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Permit
    	
 
    	
Victoria   County Nav. District
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.01.2013
    	
 
    	
Victoria
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Liquid   Dock Operating Permit
    
	
ROW   Agreement
    	
 
    	
Richard   W. Zimmerman, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.04.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
437
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Richard   W. Zimmerman
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.04.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
429
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Barbara   Ann Costlow
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
03.06.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
441
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, CR 128
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.30.2013
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   2013-00077
    
	
Memorandum   of ROW
    	
 
    	
Hilbert   Hahn, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.24.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
853
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Harvey   L. Boehm, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.07.2013
    	
 
    	
DeWitt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
David Wayne Arndt, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.14.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
453
    	
 
    	
 
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., FM 953
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   YKM20130916140849
    
	
Memorandum   of ROW
    	
 
    	
Charles E. Hotz, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.24.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
860
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, CR 157
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.30.2013
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   2013-00076
    
	
ROW   Agreement
    	
 
    	
Edward   L. Keseling
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.21.2103
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
470
    	
 
    	
 
    
	
Road   Agreement
    	
 
    	
Edward   L. Keseling
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.21.2013
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
318
    	
 
    	
 
    

 

9

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
Memorandum   of ROW
    	
 
    	
Anna   Kueker Schlinke, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.12.2013
    	
 
    	
DeWitt
    	
 
    	
498
    	
 
    	
517
    	
 
    	
 
    
	
Misc.   Easement
    	
 
    	
State   of Texas GLO
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.26.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
751
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Fred   Taylor Buchel Trust
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.04.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
488
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Fred C. Ater, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.26.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
838
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Fred   Taylor Buchel Trust
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.04.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
494
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Herring   Enterprises, LLC
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.17.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
536
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Theodore   L. Hanchey, et al
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.04.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
508
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Marry   Ann Flessner
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.10.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
530
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Gary   Flessner, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.10.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
523
    	
 
    	
 
    
	
Surface   Site Agreement
    	
 
    	
Gary   Flessner, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.21.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
640
    	
 
    	
 
    
	
Electric   Line Easement
    	
 
    	
Gary   Flessner, et al.
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
04.11.2014
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
293
    	
 
    	
 
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., FM 766
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   YKM20130916141841
    
	
Memorandum   of ROW
    	
 
    	
Stiles   Cattle Company
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.20.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
644
    	
 
    	
 
    
	
Crossing   Agreement
    	
 
    	
Union   Pacific Railroad Company
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.20.2013
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
John   Smith, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.31.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
846
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, CR 108
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.30.2013
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   2013-00075
    
	
Memorandum   of ROW
    	
 
    	
Stiles   Cattle Company
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.20.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
651
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
D.M. Stiles, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.20.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
561
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Terrell   W. Dahlman
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.23.2013
    	
 
    	
DeWitt
    	
 
    	
494
    	
 
    	
517
    	
 
    	
 
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., US 183
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   YKM2013916143005
    
	
Memorandum   of ROW
    	
 
    	
Lisa   Ann Haferkamp, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.25.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
867
    	
 
    	
 
    
	
Road   Agreement
    	
 
    	
Lisa   Ann Haferkamp, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.17.2013
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
309
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Richard D. Rodriguez, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.05.2013
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
324
    	
 
    	
 
    
	
Permit
    	
 
    	
Tex.   Dept. of Trans., FM 1447
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.17.2013
    	
 
    	
DeWitt
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
Permit   YKM2013916142321
    

 

10

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
ROW   Agreement
    	
 
    	
Gail H. Jordan, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.10.2013
    	
 
    	
DeWitt
    	
 
    	
480
    	
 
    	
584
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Aubrey   Y. Feril, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.04.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
885
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Betty   M. Murphy
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.25.2013
    	
 
    	
DeWitt
    	
 
    	
501
    	
 
    	
420
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Pioneer   Natural Resources
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.29.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
872
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
C.T.   Matthew Family Partnership
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.12.2013
    	
 
    	
DeWitt
    	
 
    	
500
    	
 
    	
755
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Jo   Ann Hoffman
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.02.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
663
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Jean   Ann Friar Sheppard, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
03.06.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
793
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Margaret   Anne Thomas, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.01.2013
    	
 
    	
DeWitt
    	
 
    	
498
    	
 
    	
505
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Anne   Friar Thomas, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.01.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
810
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, Friar Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.30.2013
    	
 
    	
DeWitt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   2013-00078
    
	
Memorandum   of ROW
    	
 
    	
Frances   Riddell
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.19.2013
    	
 
    	
DeWitt
    	
 
    	
499
    	
 
    	
657
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
William   R. Cochran
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.09.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
775
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Ann Lynn Fenner, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.25.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
767
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Ann Lynn Fenner, et al
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.25.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
787
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, CR 104
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.14.2013
    	
 
    	
DeWitt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   2013-00035
    
	
Memorandum   of ROW
    	
 
    	
Linda Ann Colman, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.08.2013
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
335
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Joycelynn   Stevens Arnold
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.15.2013
    	
 
    	
DeWitt
    	
 
    	
506
    	
 
    	
302
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Billy   Eugene Taylor, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.19.2013
    	
 
    	
DeWitt
    	
 
    	
496
    	
 
    	
781
    	
 
    	
 
    
	
Permit
    	
 
    	
DeWitt   County, CR 110
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.30.2013
    	
 
    	
DeWitt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   2013-00079
    
	
Memorandum   of ROW
    	
 
    	
Dorothy   Rickey, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.23.2013
    	
 
    	
DeWitt
    	
 
    	
498
    	
 
    	
498
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Lillian   E. Kelley
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.17.2013
    	
 
    	
DeWitt Victoria
    	
 
    	
496
    	
 
    	
803
    	
 
    	
Doc   ID #20141190
    
	
Permit
    	
 
    	
Victoria   County, CR 107
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Anne   Friar Thomas, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.01.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201400481
    

 

11

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
ROW   Agreement
    	
 
    	
Scott   E. Kuester
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
04.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201400479
    
	
Permit
    	
 
    	
Victoria   County, Nursery Rd.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Oakes   David Edwards, Jr.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.13.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201403905
    
	
Memorandum   of ROW
    	
 
    	
S.   F. Ruschhaupt, III
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201400478
    
	
Memorandum   of ROW
    	
 
    	
Henry &   Annie Borchers Trust
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.04.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404174
    
	
Memorandum   of ROW
    	
 
    	
Sandra Cole Sciba, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201400480
    
	
Memorandum   of ROW
    	
 
    	
Sea-Dan   Ranches, Ltd
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.29.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404242
    
	
Road   Agreement
    	
 
    	
Sea-Dan   Ranches, Ltd
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.29.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amend.   Memorandum
    	
 
    	
Ranch   Land Partners, Ltd
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.20.2012
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201213176
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., US 77
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   YKM20130916143425
    
	
Memorandum   of ROW
    	
 
    	
Oliver   Preston Copeland, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201400482
    
	
Road   Agreement
    	
 
    	
Oliver   Preston Copeland, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.10.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201407343
    
	
Permit
    	
 
    	
Victoria   County, Salem Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
John   W. Beck
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405124
    
	
Memorandum   of ROW
    	
 
    	
Debra   A. Beck
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404198
    
	
Memorandum   of ROW
    	
 
    	
Barbara   Diebel Family L.P.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.20.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404192
    
	
Memorandum   of ROW
    	
 
    	
Gail   Kent Scherer
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404196
    
	
Memorandum   of ROW
    	
 
    	
Melvin   R. Scherer
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404197
    
	
Memorandum   of ROW
    	
 
    	
Marian   Janet Scherer
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405126
    
	
Memorandum   of ROW
    	
 
    	
Calvin   Scherer
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405129
    
	
Memorandum   of ROW
    	
 
    	
Johnny   T. Bush, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.04.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404193
    
	
Memorandum   of ROW
    	
 
    	
Edwin   Ray Fimbel, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.11.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404194
    
	
Memorandum   of ROW
    	
 
    	
O’Connor &   Hewitt Real Estate, LP
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.10.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404170
    

 

12

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
Memorandum   of ROW
    	
 
    	
Elizabeth   F. Neuwirth, Trustee
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.08.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201403904
    
	
Memorandum   of ROW
    	
 
    	
Jeannene   Fimbel Oeltjen
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404189
    
	
Memorandum   of ROW
    	
 
    	
Jay   M. Fimbel, Jr.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.30.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201310686
    
	
Memorandum   of ROW
    	
 
    	
Phillip   Stanley
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.31.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201310686
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., US 59
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   YKM20131022142555
    
	
Permit
    	
 
    	
The   Texas Mexican RR Co.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.19.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   13-1925
    
	
Memorandum   of ROW
    	
 
    	
Thurman   Clements, Jr., et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401653
    
	
Memorandum   of ROW
    	
 
    	
Robert   W. Lumpkins, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.18.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404190
    
	
Permit
    	
 
    	
Victoria   County, Old Hwy Rd.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.21.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Paul   A. Prukop
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.25.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201403906
    
	
Memorandum   of ROW
    	
 
    	
Malvin   Mackie Ballard
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.23.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201403903
    
	
Memorandum   of ROW
    	
 
    	
Robert   M. Angerstein, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.21.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404173
    
	
Memorandum   of ROW
    	
 
    	
Michael   Shawn Tater, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.04.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404211
    
	
Memorandum   of ROW
    	
 
    	
Bruno   J. Leita, Jr.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.08.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401646
    
	
Memorandum   of ROW
    	
 
    	
Mary   Nell Leita Murray
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
06.15.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404171
    
	
Memorandum   of ROW
    	
 
    	
Dennis E. Leita, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.25.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401651
    
	
Memorandum   of ROW
    	
 
    	
Arenosa   Investments, Ltd
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.25.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404217
    
	
Memorandum   of ROW
    	
 
    	
Arenosa   Investments, Ltd
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.25.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404216
    
	
Permit
    	
 
    	
Victoria   County, Hiller Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Sheldon   Hartman
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404239
    
	
Memorandum   of ROW
    	
 
    	
Wade   Hartman
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404238
    
	
Memorandum   of ROW
    	
 
    	
Lesa   Charbula, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404240
    
	
Memorandum   of ROW
    	
 
    	
Harvey   L. Kallus, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404177
    
	
Memorandum   of ROW
    	
 
    	
Edward   D. Koehl
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404176
    

 

13

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., FM 1686
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   YKM20130916131735
    
	
Memorandum   of ROW
    	
 
    	
Doug   Pagel, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.25.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405125
    
	
Memorandum   of ROW
    	
 
    	
Kenneth   A. Johnson, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.18.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404175
    
	
Permit
    	
 
    	
Victoria   County, Un-Named CR
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
 
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Valve   Site License
    	
 
    	
Invista   S.a r.l.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.17.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Easement   Agreement
    	
 
    	
Invista   S.a r.l.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
05.17.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201308292
    
	
Memorandum   of ROW
    	
 
    	
Calie   Wischkaemper, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.01.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405187
    
	
Permit
    	
 
    	
Victoria   County, Wischkaemper Rd.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Calie   Wischkaemper, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.01.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405188
    
	
Memorandum   of ROW
    	
 
    	
Roy   Wischkaemper
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.15.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404241
    
	
Memorandum   of ROW
    	
 
    	
Ann   McClain
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404218
    
	
Permit
    	
 
    	
Victoria   County, Wood Hi Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Permanent   Easement
    	
 
    	
Preston L. Dodson, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.13.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405197
    
	
Permanent   Easement
    	
 
    	
Ron   Payne
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.11.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405194
    
	
Permanent   Easement
    	
 
    	
Roger   Payne
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.09.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405198
    
	
Permanent   Easement
    	
 
    	
Linda   Koop
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.27.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405196
    
	
Permanent   Easement
    	
 
    	
Charlene   Dodson Davidson
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.30.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405190
    
	
Permanent   Easement
    	
 
    	
Charles   Dodson
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.23.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405191
    
	
Permanent   Easement
    	
 
    	
Robert   Dodson
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.10.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405193
    
	
Permanent   Easement
    	
 
    	
Virginia   D. Bowers
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.08.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405195
    
	
Permanent   Easement
    	
 
    	
Reynold   Dodson
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.15.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405192
    
	
Permanent   Easement
    	
 
    	
Stephen   M. Dodson
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.17.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201405189
    
	
Permit
    	
 
    	
Victoria   County, Boehm Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.21.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

14

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
ROW   Agreement
    	
 
    	
Howard   Book, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.06.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201403902
    
	
Permit
    	
 
    	
Victoria   County, Waida Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.21.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Allen   Neisser, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.08.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404212
    
	
Memorandum   of ROW
    	
 
    	
John   D. Malkowsky, Ind. Exec.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.06.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404213
    
	
Memorandum   of ROW
    	
 
    	
Lawrence   H. Waida, Jr., et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
07.09.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404214
    
	
Memorandum   of ROW
    	
 
    	
David   Phillip John, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.11.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404215
    
	
Memorandum   of ROW
    	
 
    	
Robert   Gary Gladden
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.06.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404219
    
	
Crossing   Agreement
    	
 
    	
Union   Pacific Railroad Company
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.20.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Audit   #269359
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., US 87
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.08.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   YKM20130916143821
    
	
Memorandum   of ROW
    	
 
    	
Sandra   Ann Brzozowske, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.22.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401652
    
	
Memorandum   of ROW
    	
 
    	
Sandra   Ann Brzozowske, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.22.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401648
    
	
Memorandum   of ROW
    	
 
    	
Sandra   Ann Brzozowske, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.22.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401650
    
	
Memorandum   of ROW
    	
 
    	
Russell A. Stevens, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.22.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201401649
    
	
Memorandum   of ROW
    	
 
    	
Susan   Marie Prichard, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.30.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404178
    
	
Memorandum   of ROW
    	
 
    	
Harvey   A. McDonald, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404191
    
	
Memorandum   of ROW
    	
 
    	
Jimmie   Ann Campbell
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.18.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404199
    
	
Permit
    	
 
    	
Victoria   County, Faltysek Road
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
12.02.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Dana   S. Morgenroth
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.06.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404200
    
	
Memorandum   of ROW
    	
 
    	
Sherrlyn   M. Clanton
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.06.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404201
    
	
Memorandum   of ROW
    	
 
    	
Jason   Hybner
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
08.12.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404202
    
	
Memorandum   of ROW
    	
 
    	
Dardon   Layne Morgenroth, et al.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.30.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404203
    
	
Memorandum   of ROW
    	
 
    	
Thomas   H. Moscatelli
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.07.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404204
    
	
Permit
    	
 
    	
Texas   Dept. of Trans., SH 185
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
09.12.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   YKM20130911102408
    
	
Memorandum   of ROW
    	
 
    	
Munir   Munawar
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404205
    

 

15

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
Memorandum   of ROW
    	
 
    	
Margaret   S. Beekler, Trustee
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.16.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404206
    
	
Permit
    	
 
    	
Victoria   County, Old Bloomington Rd.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.21.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memorandum   of ROW
    	
 
    	
Teresa   Lanier
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.24.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404208
    
	
Memorandum   of ROW
    	
 
    	
Teresa   Lanier
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
01.27.2014
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404209
    
	
Crossing   Agreement
    	
 
    	
Union   Pacific Railroad Company
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
 
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Audit   #269406
    
	
Memorandum   of ROW
    	
 
    	
Victoria   County Navigation Dist.
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
11.05.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404210
    
	
Memorandum   of ROW
    	
 
    	
Victoria   Building LP
    	
 
    	
Eagle   Ford Field Services
    	
 
    	
10.09.2013
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Doc   ID #201404211
    
	
ROW   Agreement
    	
 
    	
Esther   Lutz
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
09.21.1950
    	
 
    	
Victoria
    	
 
    	
281
    	
 
    	
314
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Alex   Angerstein, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
12.22.1949
    	
 
    	
Victoria
    	
 
    	
268
    	
 
    	
19
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Dwain   Franz, et al.
    	
 
    	
Tennessee   Gas Pipe. Co.
    	
 
    	
02.25.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
484
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Bruno   J. Leita, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.21.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
486
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Anton   F. Schumann, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
488
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Jack   Angerstein
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
292
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
M. M. Ballard, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
03.05.1979
    	
 
    	
Victoria
    	
 
    	
1013
    	
 
    	
701
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
C.   A. Brandes
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
490
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Adam   Guzman, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.26.1979
    	
 
    	
Victoria
    	
 
    	
1020
    	
 
    	
424
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Johnny   O. Richardson, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
492
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
C.   A. Brandes
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
490
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
J. M. Fimbel, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
03.26.1979
    	
 
    	
Victoria
    	
 
    	
4016
    	
 
    	
578
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Elizabeth   F. Knox
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
03.12.1979
    	
 
    	
Victoria
    	
 
    	
1016
    	
 
    	
241
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Raymond   M. Hill
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
05.01.1979
    	
 
    	
Victoria
    	
 
    	
1018
    	
 
    	
288
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Dennis   O’Connor, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
05.11.1979
    	
 
    	
Victoria
    	
 
    	
1019
    	
 
    	
252
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Oscar   Leonard John Beck
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
494
    	
 
    	
 
    

 

16

 

	
Instrument
    	
 
    	
Grantor
    	
 
    	
Grantee
    	
 
    	
Date
    	
 
    	
County
    	
 
    	
Vol.
    	
 
    	
Page
    	
 
    	
Other
    
	
ROW   Agreement
    	
 
    	
Cleveland   Adcock
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
03.20.1979
    	
 
    	
Victoria
    	
 
    	
1013
    	
 
    	
705
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Roy C. Scherer, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.27.1979
    	
 
    	
Victoria
    	
 
    	
1014
    	
 
    	
496
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Melvin R. Scherer, et al.
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
02.22.1979
    	
 
    	
Victoria
    	
 
    	
1013
    	
 
    	
708
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Emma   Beck Scherer
    	
 
    	
Tennessee   Gas Pipe Co.
    	
 
    	
03.02.1979
    	
 
    	
Victoria
    	
 
    	
1013
    	
 
    	
712
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Kathryn   Livingston, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
02.28.1979
    	
 
    	
Victoria
    	
 
    	
1016
    	
 
    	
623
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Esther   Lutz
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
09.21.1950
    	
 
    	
Victoria
    	
 
    	
281
    	
 
    	
314
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Betty   Minatre, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
12.26.1951
    	
 
    	
Victoria
    	
 
    	
314
    	
 
    	
86
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Blanche   Dincans, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
12.21.1951
    	
 
    	
Victoria
    	
 
    	
314
    	
 
    	
89
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
D.   L. Miller, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
01.05.1952
    	
 
    	
Victoria
    	
 
    	
314
    	
 
    	
517
    	
 
    	
 
    
	
Judgment
    	
 
    	
Margaret   L. Wood
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
02.09.1952
    	
 
    	
Victoria
    	
 
    	
315
    	
 
    	
410
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Sally   Ragsdale
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
04.07.1952
    	
 
    	
Victoria
    	
 
    	
324
    	
 
    	
337
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Marilou   McCampbell
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
04.17.1952
    	
 
    	
Victoria
    	
 
    	
320
    	
 
    	
111
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Emilie   Frantis, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
03.19.1952
    	
 
    	
Victoria
    	
 
    	
319
    	
 
    	
246
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Travis   Williams, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
04.03.1952
    	
 
    	
Victoria
    	
 
    	
319
    	
 
    	
480
    	
 
    	
 
    
	
ROW   Agreement
    	
 
    	
Ernest   Sowell, et al.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
03.27.1952
    	
 
    	
Victoria
    	
 
    	
320
    	
 
    	
319
    	
 
    	
 
    
	
Permit
    	
 
    	
Victoria   County Commissioners
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
01.13.1947
    	
 
    	
Victoria
    	
 
    	
12
    	
 
    	
302
    	
 
    	
 
    
	
Crossing   Agreement
    	
 
    	
Texas &   New Orleans RR Co.
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
01.30.1950
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
File   #134455
    
	
Permit
    	
 
    	
Texas   State Highway Department
    	
 
    	
Tennessee   Gas Trans. Co.
    	
 
    	
01.28.1950
    	
 
    	
Victoria
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Permit   8013-1-18
    

 

(*) - denotes real property interests owned in fee

 

(#) — denotes real property interests leased

 

17

 

SCHEDULE 3.8(b)-2
 LIENS

 

NONE

 

18

 

SCHEDULE 3.12(B)
 TAXES

 

NONE

 

19

 

SCHEDULE 3.12(C)
 TAX AUDITS

 

NONE

 

20

 

SCHEDULE 3.12(D)
 TAX WAIVERS

 

NONE

 

21

 

SCHEDULE 3.12(g)
 AFFILIATED GROUP TAX RETURN

 

Devon Energy Corporation (EIN: 73-1567067) will file a consolidated Form 1120 (U.S. Corporation Income Tax Return) that will include Victoria Express Pipeline, L.L.C., an entity that is disregarded for federal income tax purposes, or its assets, for that portion of 2014 on and after March 7, 2014, and for that portion of 2015 prior to the Closing Date.

 

22

 

SCHEDULE 3.13(a)
 MATERIAL CONTRACTS

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
Transportation   Services Agreement
    	
 
    	
Victoria   Express Pipeline, L.L.C.
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
06.27.2014
    
	
U-SA-00051-2014
    	
 
    	
EPC   Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
09.05.2014
    
	
U-SA-00040-2014
    	
 
    	
EPC   Agreement — BHP Central Pump Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
01.29.2015
    
	
U-SA-00015-2015
    	
 
    	
EPC   Agreement — POV 50k BBL Crude Storage
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
02.24.2015
    
	
U-SA-00050-2014
    	
 
    	
Work   Order 4500063429 — Second Dock at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
10.14.2014
    
	
U-SA-00042-2014
    	
 
    	
Work   Order 4500062033 — Fire Protection at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
U-SA-00069-2014
    	
 
    	
Work   Order 4500066068 — Highway 77 Booster Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
12.04.2014
    
	
U-SA-00069-2014
    	
 
    	
Work   Order 4500061484 — BPS Skid Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
02.09.2015
    
	
 
    	
 
    	
Confidentiality   Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
07.27.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — BHP Central Pump Install
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.14.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — POV 50k BBL Crude Storage
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
09.02.2014
    

 

23

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
Confidentiality   Agreement — Highway 77 Booster Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — Fire Protection at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Confidentiality   Agreement — Second Dock at POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Burns &   McDonnell Engineering Company, Inc.
    	
 
    	
08.18.2014
    
	
 
    	
 
    	
Purchase   Order 4500070824 — POV Stationary Compact Prover
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Flow   Management Devices, LLC
    	
 
    	
02.27.2015
    
	
 
    	
 
    	
Purchase   Order 4500065928 — VEX Pipeline Actuators
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
McJunkin   Red Man Corporation
    	
 
    	
11.13.2014
    
	
 
    	
 
    	
Purchase   Order 4500070463 — VEX Pig Diaphragm Project
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Odessa   Pumps & Equipment, Inc.
    	
 
    	
02.19.2015
    
	
 
    	
 
    	
Purchase   Order 4500070279 — VEX Pig Containment Tanks
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Long   Industries, Inc.
    	
 
    	
02.16.2015
    
	
 
    	
 
    	
Purchase   Order 4500070456 — VEX Pig Containment Air Compressor
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Odessa   Pumps & Equipment, Inc.
    	
 
    	
02.19.2015
    
	
 
    	
 
    	
Service   Agreement — POV Operations
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
AccuShip,   LLC
    	
 
    	
03.01.2013
    
	
 
    	
 
    	
Ground   Lease - POV
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
08.04.2011
    
	
 
    	
 
    	
Port   of Victoria Liquid Dock Operating Permit
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
04.01.2013
    
	
 
    	
 
    	
Connection   and Facilities Installation Agreement for the Victoria Express Pipeline
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
BHP   Billiton Petroleum (Eagle Ford Gathering) LLC
    	
 
    	
09.01.2013
    
	
TGP 5138 FA
    	
 
    	
Interconnect   Agreement — Delivery
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Tennessee   Gas Pipeline Company, L.L.C.
    	
 
    	
10.    .2012
    
	
 
    	
 
    	
Rental   Agreement — Non-Potable Water Tank
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Skid-O-Kan
    	
 
    	
04.08.2014
    
	
456629
    	
 
    	
Lease   Agreement — POV Terminal Building
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
07.01.2014
    
	
872995
    	
 
    	
Lease   Agreement — POV Mobile Office
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
07.01.2014
    
	
505551
    	
 
    	
Lease   Agreement — Cuero Mobile Office
    	
 
    	
Devon   Energy Corporation
    	
 
    	
Williams   Scotsman, Inc.
    	
 
    	
12.19.2014
    
	
56680232
    	
 
    	
Electric   Service Agreement — POV Construction Trailer
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
06.16.2014
    
	
27762
    	
 
    	
Electric   Service Agreement — Highway 77 
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
09.11.2014
    

 

24

 

	
Contract No.
    	
 
    	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
 
    	
 
    	
North
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
49357
    	
 
    	
Electric   Service Agreement — Highway 77 North Upgrade
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
01.21.2015
    
	
38590
    	
 
    	
Electric   Service Agreement — Hiller Road Valve Station
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   Electric Cooperative, Inc.
    	
 
    	
09.11.2014
    
	
199850001
    	
 
    	
Electric   Service Agreement — Cuero Terminal Facility
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
11.04.2014
    
	
182370010
    	
 
    	
Electric   Service Agreement — Main Line Valve #1
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
18237009
    	
 
    	
Electric   Service Agreement — Main Line Valve #2
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
182370011
    	
 
    	
Electric   Service Agreement — Main Line Valve #3
    	
 
    	
Devon   Energy
    	
 
    	
Guadalupe   Valley Electric Cooperative, Inc.
    	
 
    	
 
    
	
10032789498973000
    	
 
    	
Electric   Service Agreement — POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Ambit   Energy
    	
 
    	
09.16.2014
    
	
10032789478685300
    	
 
    	
Electric   Service Agreement — POV Terminal
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Ambit   Energy
    	
 
    	
09.16.2014
    

 

25

 

SCHEDULE 3.13(b)
 TERMINATION OF MATERIAL CONTRACTS

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Notice Date
    	
 
    	
Termination Date
    
	
Service   Agreement — POV Operations
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
AccuShip,   LLC
    	
 
    	
01.30.2015
    	
 
    	
06.30.2015
    

 

26

 

SCHEDULE 3.14
 ADVERSE CHANGES

 

NONE

 

27

 

 

SCHEDULE 4.3
 NON-CONTRAVENTION

 

NONE

 

28

 

SCHEDULE 5.1
 CONDUCT OF BUSINESS

 

(h)

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
Port   of Victoria Liquid Cargo Dock No. 2 Operating Permit and Agreement
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
Victoria   County Navigation District
    	
 
    	
[                ]
    

 

(i)

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
Amended   and Restated Connection and Facilities Installation Agreement for the   Victoria Express Pipeline
    	
 
    	
Devon   Gas Services, L.P.
    	
 
    	
BHP   Billiton Petroleum (Eagle Ford Gathering LLC)
    	
 
    	
[                ]
    

 

(j)

 

	
Contract
    	
 
    	
Party
    	
 
    	
Counterparty
    	
 
    	
Date
    
	
Letters   amending retention arrangements for employees Charles S. Rhodes — Pipeline   Field Supervisor, Dwayne Calcote — Pipeline Operator 4, Brian Noland —   Pipeline Operator 3; new retention letter for employee Joshua Tabor —   Instrumentation & Electrical Operator 3
    	
 
    	
Devon   Energy Production Company, L.P.
    	
 
    	
 
    	
 
    	
[                ]
    

 

29

 

SCHEDULE 5.11(a)

TRANSFERRING EMPLOYEES

 

Charles S. Rhodes — Pipeline Field Supervisor

 

Dwayne Calcote — Pipeline Operator 4

 

Joshua Tabor — Instrumentation & Electrical Operator 3

 

Brian Noland — Pipeline Operator 3

 

30

 

SCHEDULE 6.1(c)
 CLOSING CONDITION CONSENTS

 

The consents set forth on Schedule 3.4.

 

31Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(this “Agreement”) effective as of March 24, 2015, by and between MID-AMERICA APARTMENT COMMUNITIES, INC.,
a Tennessee corporation (the “Company”), and H. ERIC BOLTON (the “Executive”).

 

WITNESSETH:

 

WHEREAS, the Company and Executive
entered into that certain employment agreement between Mid-America Apartment Communities, Inc. and Executive effective as of December
5, 2008 (the “Original Employment Agreement”);

 

WHEREAS, the Company and the Executive
desire to enter into this Agreement which supersedes and replaces in its entirety the Original Employment Agreement;

 

WHEREAS, the
Company desires to employ the Executive to serve as the Chief Executive Officer of the Company; and

 

WHEREAS, to
the extent this Agreement provides for any “deferred compensation” within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), the Agreement will be administered in compliance with Code Section 409A
and the regulations promulgated thereunder; and

 

WHEREAS, the
Company and the Executive each deem it necessary and desirable to execute a written document setting forth the terms and conditions
of said relationship.

 

NOW, THEREFORE,
in consideration of the premises and mutual obligations hereinafter set forth the parties agree as follows:

 

1.                 
Definitions. For purposes of this Agreement, the following terms shall have the following definitions:

 

“Agreement”
has the meaning set forth in the preamble above.

 

“Arbitrators”
means the arbitrators selected to conduct any arbitration proceeding in connection with any disputes arising out of or relating
to this Agreement.

 

“Award Plans”
means all stock option, incentive compensation, profit participation, bonus or extra compensation plans that are adopted by the
Company and in which the Company’s employees of the same level as the Executive are entitled to participate.

 

“Base Salary”
means the annual salary to be paid to Executive as set forth in Section 4(a) of this Agreement.

 

“Benefit Plans”
means each and every health, life, medical, dental, disability, insurance and welfare plan maintained by the Company for the benefit
of the Executive or the employees of the Company generally, provided that the Executive is eligible to participate in such plan
under the eligibility provisions thereof that are generally applicable to participants therein.

 

    	

    	 

    

 

 

“Board”
means the Board of Directors of the Company.

 

“Change in
Control” means any of the following events which occur during the Term of this Agreement:

 

(i)                
any “Person”, as that term is used in Section 13(d) and Section 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), other than an entity in which the Company, directly or indirectly, beneficially owns
50 percent or more of the voting securities or any Company-sponsored employee benefit plan, becomes a beneficial owner (as defined
in Rule 13d-3 under the Exchange Act or any successor rule or regulation), directly or indirectly, of securities of the Company
representing 40 percent or more of the combined voting power of the Company’s then outstanding securities entitled to vote
generally in the election of directors, regardless of whether or not the Board shall have approved the acquisition of such securities
by the acquiring person;

 

(ii)              
during any period of 24 consecutive months, individuals who at the beginning of such period constituted the Board and any
new director (other than a director designated by a Person who has entered into an agreement with the Company to effect a transaction
described in subsections (i), (iii) or (iv) hereof) whose election or nomination for election to the Board was or is approved of
by a vote of at least two-thirds of the directors at the beginning of such 24-month period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority of the Board;

 

(iii)            
the Company is merged, consolidated or reorganized into or with another corporation or other legal person, or securities
of the Company are exchanged for securities of another corporation or other legal person, and immediately after such merger, consolidation,
reorganization or exchange less than a majority of the combined voting power of the then-outstanding securities of such corporation
or person immediately after such transaction are held, directly or indirectly, in the aggregate by the holders of securities entitled
to vote generally in the election of directors of the Company immediately prior to such transaction;

 

(iv)            
the Company in any transaction or series of related transactions, sells all or substantially all of its assets to any other
corporation or other legal person and less than a majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such sale or sales are held, directly or indirectly, in the aggregate by the holders of
the securities entitled to vote generally in the election of directors of the Company immediately prior to such sale:

 

(v)              
the Company and its affiliates shall sell or transfer (in a single transaction or series of related transactions) to a non-affiliate
business operations or assets that generated at least two-thirds of the consolidated revenues (determined on the basis of the Company’s
four most recently completed fiscal quarters for which reports have been filed under the Exchange Act) of the Company and its subsidiaries
immediately prior thereto;

 

    	2

    	 

    

 

 

(vi)the shareholders
of the Company approve any plan or proposal for the liquidation or dissolution of the Company; or

 

(vii)any other
transaction or series of related transactions occur that have substantially the effect of the transactions specified in any of
the preceding clauses in this sentence.

 

“Change in
Control Benefits” means the Executive’s receipt of the Termination Payment and all other payments, benefit or compensation
which the Executive receives or has the right to receive from the Company or any of its affiliates as a result of a Change in Control
and the Executive’s Change in Control Termination.

 

“Change in
Control Termination” means (i) a Termination Without Cause of the Executive’s employment by the Company, in anticipation
of, on, or within three years after a Change in Control, (ii) the Executive’s resignation for Good Reason on or within three
years after a Change in Control.

 

“Code”
has the meaning set forth in the recitals above.

 

“Company”
means Mid-America Apartment Communities, Inc., a Tennessee corporation, and any successor to its business and/or assets which assumes
and agrees to perform this Agreement by operation of law, or otherwise.

 

“Company Shares”
means the shares of common stock of the Company or any securities of a successor company which shall have replaced such common
stock.

 

“Compensation
Committee” means the compensation committee of the Board.

 

“Excise Tax”
means a tax imposed pursuant to Section 4999 of the Code.

 

“Executive”
means the person identified in the preamble paragraph of this Agreement.

 

“Fair Market
Value” means, on any give date, the closing sale price of the common stock of the Company on the New York Stock Exchange
on such date, or, if the New York Stock Exchange shall be closed on such date, the next preceding date on which the New York Stock
Exchange shall have been open.

 

“Good Reason”
means that the Executive terminated his employment because, within the six-month period preceding the Executive’s termination,
one or more of the following conditions arose and the Executive notified the Company of such condition within 90 days of its occurrence
and the Company did not remedy such condition within 30 days:

 

(i)                
a material diminution in the Executive’s Base Salary as in effect on the date hereof or as the same may be increased
from time to time;

 

    	3

    	 

    

 

 

(ii)              
a material diminution in the Executive’s authority, duties, or responsibilities;

 

(iii)            
the relocation of the Company’s principal executive offices to a location outside a thirty-mile radius of Memphis,
Tennessee or the Company’s requiring the Executive to be based at any place other than a location within a thirty-mile radius
of Memphis, Tennessee, except for reasonably required travel on the Company’s business; or

 

(iv)            
any other action or inaction that constitutes a material breach by the Company of this Agreement.

 

“Multi-Family
Residential Business” means the business of acquiring, developing, constructing, owning or operating multi-family residential
apartment communities.

 

“Multi-Family
Residential Property” means any real estate upon which the Multi-Family Residential Business is being conducted.

 

“Option(s)”
means any options issued to Executive pursuant to any Award Plan or any option granted under the plan of any successor company
that replaces or assumes the Company’s options.

 

“Original
Employment Agreement” has the meaning set forth in the recitals.

 

“Partnership”
means Mid-America Apartments, L.P., a Tennessee limited partnership.

 

“Partnership
Unit(s)” means limited partnership interests of the Partnership. The holder has the option of requiring the Company to
redeem such interests. The Company may elect to effectuate such redemption by either paying cash or exchanging Company Shares for
such interests.

 

“Permanent
Disability” means the Executive: (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months; or (ii) is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an accident and health plan covering employees or directors
of the Company. Medical determination of Permanent Disability may be made by either the Social Security Administration or by the
provider of an accident or health plan covering employees or directors of the Company provided that the definition of “disability”
applied under such disability insurance program complies with the requirements of the preceding sentence. Upon the request of the
Company, the Executive must submit proof to the Company of the Social Security Administration’s or the provider’s determination.

 

“Restricted
Stock” means any share of restricted common stock issued to Executive pursuant to any Award Plan or any restricted stock
granted under the plan of any successor company that replaces or assumes the Company’s restricted stock awards.

 

    	4

    	 

    

 

 

“Specified
Employee” means a key employee (as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the
Company if any stock of the Company is publicly traded on an established securities market or otherwise.

 

“Term”
has the meaning assigned to it in Section 3 of this Agreement.

 

“Termination
Date” means the date on which the employment of Executive is terminated, which date shall be (i) in the case of Executive’s
Permanent Disability, 30 days after a Termination Notice is given and Executive does not return to the full-time performance of
his duties within such 30-day period or (ii) in all other instances, the date specified as the Termination Date in the Termination
Notice, which date shall not be less than thirty nor more than sixty days from the date the Termination Notice is given.

 

“Termination
of Employment” means the termination of the Executive’s employment with the Company for reasons other than death
or Permanent Disability. Whether a Termination of Employment takes place is determined based on the facts and circumstances surrounding
the termination of the Executive’s employment and whether the Company and the Executive intended for the Executive to provide
significant services for the Company following such termination. A change in the Executive’s employment status will not be
considered a Termination of Employment if:

 

(i)                
the Executive continues to provide services as an employee of the Company at an annual rate that is 20 percent or more of
the services rendered, on average, during the immediately preceding three full calendar years of employment (or, if employed less
than three years, such lesser period) and the annual remuneration for such services is 20 percent or more of the average annual
remuneration earned during the final three full calendar years of employment (or, if less, such lesser period), or

 

(ii)              
the Executive continues to provide services to the Company in a capacity other than as an employee of the Company at an
annual rate that is 50 percent or more of the services rendered, on average, during the immediately preceding three full calendar
years of employment (or if employed less than three years, such lesser period) and the annual remuneration for such services is
50 percent or more of the average annual remuneration earned during the final three full calendar years of employment (or if less,
such lesser period).

 

“Termination
Notice” means a written notice of termination of employment by Executive or the Company.

 

“Termination
Payment” has the meaning set forth in Section 9(b)(i) of this Agreement.

 

“Termination
With Cause” means the termination of the Executive’s employment by act of the Board for any of the following reasons:

 

(i)                
the Executive’s conviction for a felony;

 

    	5

    	 

    

 

 

(ii)              
the Executive’s theft, embezzlement, misappropriation of or intentional infliction of material damage to the
Company’s property or business opportunity;

 

(iii)            
the Executive’s intentional breach of the noncompetition provisions contained in Section 10 of this
Agreement; or

 

(iv)            
the Executive’s ongoing willful neglect of or failure to perform his duties hereunder or his ongoing willful
failure or refusal to follow any reasonable, unambiguous duly adopted written direction of the Board or any duly constituted committee
thereof that is not inconsistent with the description of the Executive’s duties set forth in Section 2, if such willful
neglect or failure is materially damaging or materially detrimental to the business and operations of the Company; provided that
Executive shall have received written notice of such failure and shall have continued to engage in such failure after 30 days following
receipt of such notice from the Board, which notice specifically identifies the manner in which the Board believes that Executive
has engaged in such failure.

 

For purposes of this subsection, no act,
or failure to act, shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith, and
without reasonable belief that such action or omission was in the best interest of the Company. Executive shall not be deemed to
have been terminated for Cause unless and until there shall have been delivered to Executive a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called
and held for such purpose (after reasonable notice to Executive and an opportunity for Executive, together with his counsel, to
be heard before the Board), finding that, in the good faith opinion of the Board, Executive was guilty of misconduct as set forth
above, and of continuing such misconduct after notice from the Board.

 

“Termination
Without Cause” means the termination of the Executive’s employment by the Company for any reason other than Termination
With Cause, or termination by the Company due to Executive’s death or Permanent Disability.

 

“Threshold
Amount” means three times the Executive’s “base amount” within the meaning of Section 280G(b)(3) of
the Code.

 

“Uniform Arbitration
Act” means the Uniform Arbitration Act, Tennessee Code Annotated § 29-5-391 et seq., as amended.

 

“Voluntary
Termination” means the Executive’s voluntary termination of his employment hereunder for any reason other than
Good Reason. If the Executive gives a Termination Notice of Voluntary Termination and, prior to the Termination Date, the Executive
voluntarily refuses or fails to provide substantially all the services described in Section 2 hereof for a period greater
than two consecutive weeks, the Voluntary Termination shall be deemed to be effective as of the date on which the Executive so
ceases to carry out his duties. Voluntary refusal to perform services shall not include taking vacation otherwise permitted in
accordance with Section 4(d) hereof, the Executive’s failure to perform services on account of his illness or the
illness of a member of his immediate family, provided such illness is adequately substantiated at the reasonable request of the
Company, or any other absence from service with the written consent of the Board.

 

    	6

    	 

    

 

 

2.                 
Employment; Services. The Company and the Executive acknowledge and agree that the Original Employment Agreement
is hereby terminated by mutual consent and neither the Company nor the Executive shall have any continuing obligation to the other
pursuant to the terms of the Original Employment Agreement. The mutual agreements and covenants contained in this Agreement shall
replace and supersede in their entirety the provisions of the Original Employment Agreement. The Company shall employ the Executive,
and the Executive agrees to be so employed, in the capacity of Chairman of the Board and Chief Executive Officer of the Company
to serve for the Term hereof, subject to earlier termination as hereinafter provided. The Executive shall devote such amount of
his time and attention to the Company’s affairs as are necessary to perform his duties to the Company in his capacity as
Chairman of the Board and Chief Executive Officer. The Executive shall have authority and responsibility with respect to the day-to-day
management of the Company, consistent with direction from the Company’s Board.

 

3.                 
Term; Termination.

 

(a)               
The term of the Executive’s employment hereunder shall be one year and shall commence on the date hereof and shall
be extended automatically, for so long as the Executive remains employed by the Company hereunder, the first day of each month
that begins after the date of this Agreement for an additional one-month period (such period, as it may be extended from time to
time, being herein referred to as the “Term”), unless terminated earlier in accordance with the terms of this
Agreement, to the effect that on the first day of each month, the remaining term of this Agreement and the Executive’s employment
hereunder shall be one year.

 

(b)              
Any purported termination of employment by Executive or the Company shall be communicated by a Termination Notice. The Termination
Notice shall indicate the specific termination provision in this Agreement relied upon and set forth the facts and circumstances
claimed to provide a basis for termination. If the party receiving the Termination Notice notifies the other party prior to the
Termination Date that a dispute exists concerning the termination, the Termination Date shall be extended until the dispute is
finally determined, either by mutual written agreement of the parties, by a binding arbitration award, or by a final judgment,
order or decree of a court of competent jurisdiction. The Termination Date shall be extended by a notice of dispute only if such
notice is given in good faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence.
Notwithstanding the pendency of any such dispute, the Company will continue to pay Executive his full compensation in effect when
the notice giving rise to the dispute was given and Executive shall continue as a participant in all Award Plans and Benefit Plans
in which Executive participated when the Termination Notice giving rise to the dispute was given, until the dispute is finally
resolved in accordance with this subsection. Amounts paid under this subsection are in addition to all other amounts due under
this Agreement and shall not be offset against or reduce any other amounts due under this Agreement.

 

    	7

    	 

    

 

 

4.                 
Compensation.

 

(a)               
Base Salary. During the Term, the Company shall pay the Executive for his services a “Base Salary”
of $612,000, to be paid in accordance with customary Company policies, such Base Salary being subject to any increases approved
by the Compensation Committee or the Board, as the case may be.

 

(b)              
Award Plans. During the Term, the Executive shall also be eligible for additional compensation in the form of a cash
bonus, shares of stock in the Company, Partnership Units, or Options, and shall be eligible to participate in the Award Plans.

 

(c)               
Benefit Plans. During the Term, Executive shall be entitled to participate in, and to all rights and benefits provided
by, each Benefit Plan, provided that Executive is eligible to participate in such plan under the eligibility provisions thereof
that are generally applicable to the participants thereof (collectively, “Benefit Plans”).

 

(d)              
Vacation. The Executive shall be entitled each calendar year to vacation time, during which time his compensation
shall be paid in full. The time allotted for such vacation shall be in accordance with the Company’s vacation policies.

 

(e)               
Overall Qualification. Nothing in this Agreement shall be construed as preventing the Company from modifying, suspending,
discontinuing or terminating any of the Benefit Plans or Award Plans without notice or liability to Executive so long as (i) the
modification, suspension, discontinuation or termination of any such plan is authorized by and performed in accordance with the
specific provisions of such plan and (ii) such modification, suspension, discontinuation or termination is taken generally with
respect to all similarly situated employees of the Company and does not single out or discriminate against Executive.

 

5.                 
Expenses. The Company recognizes that the Executive will have to incur certain out-of-pocket expenses, including
but not limited to travel expenses, related to his services and the Company’s business and the Company agrees to reimburse
the Executive for all reasonable expenses necessarily incurred by him in the performance of his duties upon presentation of a voucher
or documentation indicating the amount and business purposes of any such expenses; provided that Executive complies with the Company’s
policies and procedures regarding business expenses.

 

6.                 
Voluntary Termination; Termination With Cause. Except as otherwise provided in Section 9 of this Agreement,
if (i) the Executive shall cease being an employee of the Company on account of a Voluntary Termination or (ii) there shall be
a Termination With Cause, the Executive shall not be entitled to any compensation after the Termination Date of such Voluntary
Termination or Termination With Cause (except Base Salary and vacation accrued but unpaid on the Termination Date of such event).
In the event of a Voluntary Termination or Termination With Cause, the Executive shall continue to be subject to the noncompetition
covenant contained in Section 10.

 

7.                 
Death or Disability. In the event of the Executive’s death or Permanent Disability, the Company shall continue
to pay the Executive or his heirs, devisees, executors, legatees or personal representatives, as appropriate, the semi-monthly
payments of the Base Salary then in effect for one year from the Executive’s death or Termination Date following determination
of Permanent Disability, as applicable. The Company shall also pay any amounts due pursuant to the terms of any Benefit Plans and
Award Plans in which Executive was a participant, including, without limitation, the pro rata amount of any bonus to be paid to
Executive for the fiscal year in which Executive was terminated. Any pro rata bonus shall be paid at such time when the Company
makes bonus payments to its senior executives. Further, if Executive’s employment is terminated due to Executive’s
Permanent Disability, then within 30 days of the Executive’s Termination Date the Company shall pay to Executive a lump sum
in an amount equal to the cost of 12 months of COBRA continuation coverage under the Company’s group health plan and the
cost of 12 months of insurance coverage which is substantially equivalent to the remaining Benefit Plans to which Executive was
entitled immediately prior to such termination.

 

    	8

    	 

    

 

 

8.                 
Termination Without Cause; Resignation for Good Reason. The Company may terminate Executive for any reason, or no
reason at all, at any time and Executive may terminate this Agreement at any time for Good Reason, provided that, upon termination
of this Agreement by the Executive for Good Reason or in the event of a Termination Without Cause, except as otherwise provided
in Section 9 of this Agreement, the Company shall provide the compensation and benefits set forth in this Section 8.
Executive may terminate this Agreement for Good Reason notwithstanding any incapacity due to physical or mental illness. Executive’s
continued employment shall not constitute consent to, or a waiver of, rights with respect to any circumstances constituting Good
Reason hereunder.

 

(a)               
Base Salary, Benefit and Award Plans. The Company shall continue to pay the Executive the semi-monthly payments of
the Base Salary then in effect for one year after the Termination Date. The Company shall also pay on the Termination Date any
amounts due pursuant to the terms of any Benefit Plans and Award Plans in which Executive was a participant, including, without
limitation, the pro rata amount of any bonus to be paid to Executive for the fiscal year in which Executive was terminated. Any
pro rata bonus shall be paid at such time when the Company makes bonus payments to its senior executives. Executive acknowledges
that pursuant to the terms of the Benefit Plans, he is not eligible to continue to participate in the Benefit Plans as a former
employee, except as a participant in the medical, dental, and vision plans for which the Executive was enrolled in at the time
of Termination of Employment as provided by the COBRA or by state-law continuation of coverage rules. If the Executive is entitled
to COBRA or state-law continuation coverage, then the Company shall provide the Executive with a lump sum payment equal to 12 months
of the Company’s monthly contribution to the medical, dental, and vision plans in which the Executive was enrolled in immediately
prior to the Termination Date and the cost of 12 months of insurance coverage which is substantially equivalent to the remaining
Benefit Plans to which Executive was entitled immediately prior to such termination.

 

(b)              
Stock Options; Restricted Stock. All Options and Restricted Stock granted to Executive shall become fully vested
at the Termination Date. Executive shall have the right to exercise such Options in accordance with the terms and conditions provided
in the applicable stock option plans as if Executive had continued his employment with the Company, notwithstanding Executive’s
termination.

 

    	9

    	 

    

 

 

(c)               
Legal Fees. The Company shall also pay to Executive all legal fees and expenses incurred by Executive as a result
of a Termination Without Cause or Executive’s resignation for Good Reason (including all such fees and expenses, if any,
incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this
Agreement).

 

9.                 
Change in Control.

 

(a)               
Termination in Connection with a Change in Control. Notwithstanding any other provision in this Agreement, in the
event of a Change in Control Termination, the Company shall, on the Termination Date, pay the Executive, in addition to any Base
Salary earned but not paid through the Termination Date and any amounts due pursuant to Award Plans and Benefit Plans including,
without limitation, the pro rata amount of Executive’s anticipated bonus for the fiscal year in which Executive is terminated,
the compensation and benefits set forth in Section 9(b).

 

(b)              
Compensation and Benefits.

 

(i)                
A Termination Payment shall be paid which is equal to the sum of two and 99/100 (2.99) times the Executive’s
annual base salary in effect on the Termination Date plus two and 99/100 (2.99) times the average annual cash bonus paid to the
Executive for the two immediately preceding fiscal years, under this Agreement or otherwise (but not including compensation under
the Company’s Shareholder Value Plan) (“Termination Payment”); provided, however, that in no event shall
the amount of the Termination Payment exceed the amount that would be payable to Executive as Base Salary and bonus compensation
(based on the average annual bonus compensation paid to Executive for the two immediately preceding fiscal years under this Agreement
or otherwise) between the Termination Date and the date upon which the Executive and the Compensation Committee of the Board have
mutually agreed that the Executive will retire. Notwithstanding Section 9(a), the Termination Payment shall be calculated
and paid immediately prior to the closing of the transactions constituting a Change in Control if the Executive receives notice
prior to the Change in Control that his employment will be terminated on or after the Change in Control.

 

(ii)              
Executive acknowledges that pursuant to the terms of the Benefit Plans, he is not eligible to continue to participate
in the Benefit Plans as a former employee, except as a participant in the medical, dental, and vision plans for which the Executive
was enrolled in at the time of Termination as provided by the COBRA or by state-law continuation of coverage rules. If the Executive
is entitled to COBRA or state-law continuation coverage, then the Company shall provide the Executive with a lump sum payment equal
to 24 months of the Company’s monthly contribution to the medical, dental, and vision plans in which the Executive was enrolled
in immediately prior to the Termination Date and the cost of 24 months of insurance coverage which is substantially equivalent
to the remaining Benefit Plans to which Executive was entitled immediately prior to such termination.

 

(iii)            
In lieu of Company Shares issuable upon exercise of any outstanding and unexercised Options granted to Executive,
Executive may, at Executive’s option, receive an amount in cash equal to the product of (i) the excess of the higher of the
Fair Market Value of Company Shares on the Termination Date, or the highest per share price for Company Shares actually paid in
connection with any Change in Control of the Company, over the per share exercise price of each Option held by Executive, times
(ii) the number of Company Shares covered by each such Option. In the event Executive does not elect to receive a cash payment
for any outstanding and unexercised Options granted to Executive, Executive shall have the right to exercise such Options in accordance
with the terms and conditions provided in the applicable stock option plans.

 

    	10

    	 

    

 

 

(iv)            
The Company shall also pay to Executive all legal fees and expenses incurred by Executive as a result of a termination
described in Section 9(a) of this Agreement (including all such fees and expenses, if any, incurred in contesting or disputing
any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement).

 

(c)               
Escrow Arrangement. If within 30 days after the effective date of a Change in Control Executive’s employment
has not been terminated, the Company shall deposit with an escrow agent, pursuant to an escrow agreement between the Company and
such escrow agent, a sum of money, or other property permitted by such escrow agreement, which is substantially sufficient in the
opinion of the Company’s management to fund the amounts due to Executive set forth in Section 9(b) of this Agreement.
The escrow agreement shall provide that such agreement may not be terminated until the earlier of (i) Executive’s employment
has terminated and all amounts due to Executive as set forth in this Agreement have been paid to Executive or (ii) three years
after the effective date of the Change in Control.

 

(d)              
Additional Limitation.

 

(i)                
Anything in this Agreement to the contrary notwithstanding, in the event that the Executive’s Change in Control
Benefits, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder, would be subject
to the Excise Tax, the following provisions shall apply:

 

(A)If
the Change in Control Benefits, reduced by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income
and employment taxes payable by the Executive on the amount of the Change in Control Benefits which are in excess of the Threshold
Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full amount of Change in Control
Benefits.

 

(B)If
the Threshold Amount is less than (x) the Change in Control Benefits, but greater than (y) the Change in Control Benefits reduced
by the sum of (1) the Excise Tax and (2) the total of the federal, state, and local income and employment taxes on the amount of
the Change in Control Benefits which are in excess of the Threshold Amount, then the Change in Control Benefits shall be reduced
(but not below zero) to the extent necessary so that the sum of all Change in Control Payments shall not exceed the Threshold Amount.
In such event, the Change in Control Benefits shall be reduced in the following order: (i) cash payments not subject to Section
409A of the Code; (ii) cash payments subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv)
non-cash forms of benefits. To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments
shall be reduced in reverse chronological order.

 

    	11

    	 

    

 

 

(ii)              
The determination as to which of the alternative provisions of Section 9(e)(i) above shall apply to the Executive
shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall
provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Termination Date,
if applicable, or at such earlier time as is reasonably requested by the Company or the Executive. For purposes of determining
which of the alternative provisions of Section 9(e)(i) above shall apply, the Executive shall be deemed to pay federal income
taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination
is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality
of the Executive’s residence on the Termination Date, net of the maximum reduction in federal income taxes which could be
obtained from deduction of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Company
and the Executive.

 

10.             
Noncompetition. During the Term, the Executive shall not, other than through the Company or affiliates of the Company,
own any interest in any Multi-Family Residential Property (other than Multi-Family Residential Property in which the Company or
the Partnership has an ownership interest), as partner, shareholder or otherwise, or engage in the Multi-Family Residential Business,
directly or indirectly, for his own account or for the account of others, either as an officer, director, shareholder, owner, partner,
promoter, employee, consultant, advisor, agent, manager, or in any other capacity. For a period of two years after a Change in
Control Termination, Executive shall not own any interest in any Multi-Family Residential Property as partner, shareholder or otherwise,
or directly or indirectly, for his own account or for the account of others, either as an officer, director, promoter, employee,
consultant, advisor, agent, manager, or in any other capacity, engage in the Multi-Family Residential Business within 5 miles of
any Multi-Family Residential Property owned by the Company or the Partnership at the time of termination of employment.

 

The Executive agrees
that damages at law for violation of the restrictive covenant contained herein would not be an adequate or proper remedy to the
Company, and that should the Executive violate or threaten to violate any of the provisions of such covenant, the Company, its
successors or assigns, shall be entitled to obtain a temporary or permanent injunction, as appropriate, against the Executive in
any court having jurisdiction over the person and the subject matter, prohibiting any further violation of any such covenants.
The parties agree to personal jurisdiction in the courts located in Shelby County, Tennessee, and agree that venue is appropriate
in said County. The injunctive relief provided herein shall be in addition to any award of damages, compensatory, exemplary or
otherwise, payable by reason of such violation. The Executive agrees that the Company will be entitled to recover attorney fees
and costs incurred as a result of the Executive’s breach of this Agreement.

 

Furthermore, the Executive
acknowledges that this Agreement has been negotiated at arms’ length by the parties, neither being under any compulsion to
enter into this Agreement, and that the foregoing restrictive covenant does not in any respect inhibit his ability to earn a livelihood
in his chosen profession without violating the restrictive covenant contained herein. The Company by these presents has attempted
to limit the Executive’s right to compete only to the extent necessary to protect the Company from unfair competition. The
Company recognizes, however, that reasonable people may differ in making such a determination. Consequently, the Company agrees
that if the scope or enforceability of the restricted covenant contained herein is in any way disputed at any time, a court or
other trier of fact may modify and enforce the covenant to the extent that it believes to be reasonable under the circumstances
existing at the time.

 

    	12

    	 

    

 

 

11.             
Employment Status. The parties acknowledge and agree that Executive is an employee of the Company, not an independent
contractor. Any payments made to Executive by the Company pursuant to this Agreement shall be treated for federal and state payroll
tax purposes as payments made to a Company employee, irrespective whether such payments are made subsequent to the Termination
Date.

 

12.             
Notices. All notices or deliveries authorized or required pursuant to this Agreement shall be deemed to have been
given when in writing and personally delivered or when deposited in the U.S. mail, certified, return receipt requested, postage
prepaid, addressed to the parties at the following addresses or to such other addresses as either may designate in writing to the
other party:

 

	To the Company:	
        6584 Poplar Avenue

        Memphis, Tennessee 38138

        Attn: General Counsel

         

	To the Executive:	
        H. Eric Bolton

        3290 Kenny Drive

        Germantown, Tennessee 38139

 

13.             
Entire Agreement. This Agreement contains the entire understanding between the parties hereto with respect to the
subject matter hereof and shall not be modified in any manner except by instrument in writing signed, by or on behalf of, the parties
hereto; provided, however, that any amendment or termination of the covenant of noncompetition in Section 10 must be approved
by a majority of the Directors of the Company other than the Executive, if the Executive is then a director of the Company. This
Agreement shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties hereto.

 

14.             
Arbitration. Except for requests for injunctive relief and for damages under Section 10, Noncompetition, any
controversy concerning or claim arising out of or relating to this Agreement shall be settled by final and binding arbitration
in Memphis, Shelby County, Tennessee at a location specified by the party seeking such arbitration.

 

(a)               
The Arbitrators. Any arbitration proceeding shall be conducted by three Arbitrators and the decision of the Arbitrators
shall be binding on all parties. Each Arbitrator shall have substantial experience and expert competence in the matters being arbitrated.
The party desiring to submit any matter relating to this Agreement to arbitration shall do so by written notice to the other party,
which notice shall set forth the items to be arbitrated, such party’s choice of Arbitrator, and such party’s substantive
position in the arbitration. The party receiving such notice shall, within 15 days after receipt of such notice, appoint an Arbitrator
and notify the other party of its appointment and of its substantive position. The Arbitrators appointed by the parties to the
Arbitration shall select an additional Arbitrator meeting the aforedescribed criteria. The Arbitrators shall be required to render
a decision in accordance with the procedures set forth in Subparagraph (b) below within 30 days after being notified of their selection.
The fees of the Arbitrators shall be equally divided amongst the parties to the arbitration.

 

    	13

    	 

    

 

 

(b)              
Arbitration Procedures. Arbitration shall be conducted in accordance with the Uniform Arbitration Act, except to
the extent the provisions of such Act are modified by this Agreement or the subsequent mutual agreement of the parties. Judgment
upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. Any party hereto may bring
an action, including a summary or expedited proceeding, to compel arbitration of any controversy or claim to which this provision
applies in any court having jurisdiction over such action in Shelby County, Tennessee, and the parties agree that jurisdiction
and venue in Shelby County, Tennessee are appropriate and approved by such parties.

 

15.             
Applicable Law. This Agreement shall be governed and construed in accordance with the laws of the State of Tennessee.

 

16.             
Assignment. The Executive acknowledges that his services are unique and personal. Accordingly, the Executive may
not assign his rights or delegate his duties or obligations under this Agreement, except with respect to certain rights to receive
payments as described in Section 7.

 

17.             
Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its
provisions.

 

18.             
Successors; Binding Agreement. The Company will require any successor to all or substantially all of the business
and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken place. Failure of the Company to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be a beach of this Agreement and shall entitle Executive
to compensation from the Company in the same amount and on the same terms as Executive would be entitled to hereunder if Executive
terminates his employment for Good Reason. The Company’s rights and obligations under this Agreement shall inure to the benefit
of and shall be binding upon the Company’s successors and assigns.

 

19.             
Section 409A.

 

(a)               
Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s “separation from
service” within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified
employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the
Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered
deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the
application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until
the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s
death.

 

    	14

    	 

    

 

 

(b)              
The parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that
any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in
such a manner so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be
amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all
related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either
party.

 

(c)               
All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company
or incurred by the Executive during the time periods set forth in this Agreement. All reimbursements shall be paid as soon as administratively
practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year
in which the expense was incurred. The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year
shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year. Such
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

(d)              
To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

(e)               
If the Termination Payment becomes payable under Section 9(b)(i) and the Change in Control does not otherwise constitute
a “change in control event” within the meaning of Section 409A of the Code and the regulations promulgated thereunder,
the Termination Payment shall be paid in semi-monthly payments for one year.

 

(f)               
The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any
provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not
satisfy an exemption from, or the conditions of, such Section.

 

 

[The remainder of this page is intentionally
left blank.]

 

 

    	15

    	 

    

 

 

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

 

MID-AMERICA APARTMENT 

COMMUNITIES, INC.

 

 

By: /s/Robert J. DelPriore

Name: Robert J. DelPriore 

Title: EVP, General Counsel

 

 

 

EXECUTIVE:

 

 

/s/H. Eric Bolton, Jr.

H. Eric Bolton, Jr.

 

 

    	16

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