Document:

Amended and Restated Limited Liability Company Agreement of TGGT Holdings, LLC

 Exhibit 10.2 
 AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 TGGT HOLDINGS, LLC

 DATED AUGUST 14, 2009 

 TABLE OF CONTENTS 
  

					
	ARTICLE 1 ORGANIZATION; REPRESENTATIONS AND WARRANTIES	  	2
	 Section 1.1
	 	Formation	  	2
	 Section 1.2
	 	Name	  	2
	 Section 1.3
	 	Term	  	2
	 Section 1.4
	 	Registered Agent	  	2
	 Section 1.5
	 	Principal Office	  	2
	 Section 1.6
	 	Business and Purpose; Power	  	2
	 Section 1.7
	 	Qualifications in Other Jurisdictions	  	2
	 Section 1.8
	 	No State Law Partnership	  	3
	 Section 1.9
	 	Other Business Pursuits	  	3
	 Section 1.10
	 	Representations and Warranties of Members	  	3
		
	ARTICLE 2 INTENTIONALLY OMITTED	  	5
		
	ARTICLE 3 CAPITALIZATION	  	5
	 Section 3.1
	 	Initial Contributions	  	5
	 Section 3.2
	 	Additional Contributions	  	6
	 Section 3.3
	 	Additional Contributions Procedures	  	6
	 Section 3.4
	 	Member Loans	  	7
	 Section 3.5
	 	Failure to Fund Additional Contributions or Member Loans	  	8
	 Section 3.6
	 	Certain Consequences of Default	  	8
	 Section 3.7
	 	Extended Default	  	10
	 Section 3.8
	 	Capital Accounts	  	12
	 Section 3.9
	 	No Interest on or Return of Capital Contributions	  	13
		
	ARTICLE 4 ALLOCATIONS AND DISTRIBUTIONS	  	13
	 Section 4.1
	 	Allocations of Net Profits and Net Losses	  	13
	 Section 4.2
	 	Special Allocations	  	13
	 Section 4.3
	 	Curative Allocations	  	15
	 Section 4.4
	 	Tax Allocations	  	15
	 Section 4.5
	 	Distributions	  	16
	 Section 4.6
	 	Limitations Upon Distributions	  	17
		
	ARTICLE 5 MANAGEMENT OF THE COMPANY	  	18
	 Section 5.1
	 	Management under Direction of Management Board	  	18
	 Section 5.2
	 	Number, Tenure and Qualification	  	22
	 Section 5.3
	 	Voting Proxies; Quorum; Meetings of Management Board; No Fiduciary Duties	  	23
	 Section 5.4
	 	Resignation of Board Members	  	30
	 Section 5.5
	 	Removal of Board Members	  	30
	 Section 5.6
	 	Vacancies	  	30
	 Section 5.7
	 	Fees and Expenses of Board Members	  	30
	 Section 5.8
	 	No Power of Members to Bind Company	  	30
	 Section 5.9
	 	Delegation of Authority; Officers	  	30

  

 i 

					
	 Section 5.10
	 	Provision of Services by the Members	  	38
	 Section 5.11
	 	Standard of Conduct; Health, Safety, Security and the Environment	  	38
	 Section 5.12
	 	Certain Reports	  	40
	 Section 5.13
	 	Insurance Requirements	  	42
		
	ARTICLE 6 ANNUAL WORK PROGRAM AND BUDGETS; CONTRACT AWARDS	  	42
	 Section 6.1
	 	Development Work Program; Initial Work Program and Budget	  	42
	 Section 6.2
	 	Subsequent Work Program and Budgets	  	43
	 Section 6.3
	 	Statement of Estimated Expenditures	  	46
	 Section 6.4
	 	Company Group O&M Contract Awards	  	46
		
	ARTICLE 7 INDEMNIFICATION	  	48
	 Section 7.1
	 	No Liability of Members for Company Obligations	  	48
	 Section 7.2
	 	Exculpation	  	49
	 Section 7.3
	 	Indemnification	  	50
	 Section 7.4
	 	Expenses	  	50
	 Section 7.5
	 	Insurance	  	50
	 Section 7.6
	 	Primary Obligation	  	51
		
	ARTICLE 8 BOOKS AND RECORDS; ACCOUNTS	  	51
	 Section 8.1
	 	Books and Records	  	51
	 Section 8.2
	 	Availability of Books and Records	  	51
	 Section 8.3
	 	Audits	  	52
	 Section 8.4
	 	Financial Statements and Reports	  	53
	 Section 8.5
	 	Accounting Method	  	54
	 Section 8.6
	 	Bank Accounts; Investments	  	54
	 Section 8.7
	 	Fiscal Year of the Company	  	55
		
	ARTICLE 9 TAX MATTERS	  	55
	 Section 9.1
	 	Tax Treatment of the Company	  	55
	 Section 9.2
	 	Tax Treatment of the Contribution Agreement	  	55
	 Section 9.3
	 	Tax Matters Partner	  	55
	 Section 9.4
	 	Tax Returns and Elections	  	55
	 Section 9.5
	 	Tax Terminations	  	56
		
	ARTICLE 10 TRANSFERS OF MEMBER INTERESTS; ADMISSION OF NEW MEMBERS	  	56
	 Section 10.1
	 	Transfer of Member Interests	  	56
	 Section 10.2
	 	Conditions Precedent to a Member Interest Transfer	  	57
	 Section 10.3
	 	Encumbrances by Members	  	58
	 Section 10.4
	 	Admission of Persons as New Members	  	59
		
	ARTICLE 11 CONSENTS TO ASSIGNMENT	  	59
	 Section 11.1
	 	Certain Transfers during Initial Three Year Period	  	59
	 Section 11.2
	 	Other Transfers	  	59

  

 ii 

					
	ARTICLE 12 PREFERENTIAL PURCHASE RIGHTS; CHANGES IN CONTROL	  	59
	 Section 12.1
	 	Preferential Purchase Rights	  	59
	 Section 12.2
	 	Changes in Control.	  	61
		
	ARTICLE 13 ACQUIRED BUSINESS; NEW BUSINESS; ASSET UPGRADES	  	63
	 Section 13.1
	 	Acquired Business	  	63
	 Section 13.2
	 	Member Requested Services	  	67
	 Section 13.3
	 	New Business	  	68
	 Section 13.4
	 	Asset Upgrades	  	71
	 Section 13.5
	 	Contract Operating Agreements; Certain Gathering Agreements	  	71
		
	ARTICLE 14 DISSOLUTION; WINDING UP AND TERMINATION	  	72
	 Section 14.1
	 	Causes of Dissolution, Winding Up and Termination	  	72
	 Section 14.2
	 	Notice of Dissolution	  	73
	 Section 14.3
	 	Liquidation	  	73
	 Section 14.4
	 	Termination	  	73
	 Section 14.5
	 	No Obligation to Restore Capital Accounts	  	73
	 Section 14.6
	 	Distributions in Kind	  	74
		
	ARTICLE 15 GOVERNING LAW; DISPUTE RESOLUTION	  	74
	 Section 15.1
	 	Governing Law	  	74
	 Section 15.2
	 	Dispute Resolution	  	74
	 Section 15.3
	 	Expert Proceedings	  	76
		
	ARTICLE 16 MISCELLANEOUS	  	77
	 Section 16.1
	 	Counterparts	  	77
	 Section 16.2
	 	Notices	  	77
	 Section 16.3
	 	Expenses	  	78
	 Section 16.4
	 	Waivers; Rights Cumulative	  	79
	 Section 16.5
	 	Entire Agreement; Conflicts	  	79
	 Section 16.6
	 	Amendment	  	79
	 Section 16.7
	 	Parties in Interest	  	79
	 Section 16.8
	 	Successors and Permitted Assigns	  	80
	 Section 16.9
	 	Confidentiality	  	80
	 Section 16.10
	 	Publicity	  	81
	 Section 16.11
	 	Preparation of Agreement	  	81
	 Section 16.12
	 	Conduct of the Parties; Business Principles	  	81
	 Section 16.13
	 	Severability	  	82
	 Section 16.14
	 	Non-Compensatory Damages	  	82
	 Section 16.15
	 	Waiver of Partition of Company Property	  	82
	 Section 16.16
	 	Interpretation	  	82

  

 iii 

			
	APPENDICES
		
	Appendix I	 	Definitions
		
	EXHIBITS	 	
		
	Exhibit “A”	 	Member Interests
	Exhibit “B”	 	Certificate of Formation
	Exhibit “C”	 	Form of Secondment Agreement
	Exhibit “D-1”	 	Form of BG Services Agreement
	Exhibit “D-2”	 	Form of EOC Services Agreement
	Exhibit “E-1”	 	Development Work Program
	Exhibit “E-2”	 	Calendar Year 2009 Annual Work Program and Budget
	Exhibit “E-3”	 	Calendar Year 2010 Annual Work Program and Budget
	Exhibit “F”	 	Form of Assumption Agreement
	Exhibit “G”	 	Form of Services Agreement
	Exhibit “H-1”	 	Form of Member Talco Gathering Agreement
	Exhibit “H-2”	 	Form of Member TGG Gathering Agreement
	Exhibit “I”	 	Form of Contract Operating Agreement
	Exhibit “J-1”	 	Form of Third Party Talco Gathering Agreement
	Exhibit “J-2”	 	Form of Third Party TGG Gathering Agreement
	Exhibit “K”	 	Form of Interconnect Agreement
	Exhibit “L”	 	East Texas/North Louisiana Area
		
	SCHEDULES	 	
		
	Schedule 5.13	 	 Company Group Members’ Insurance Requirements

  

 iv 

 AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT 
 THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”) of TGGT Holdings, LLC, a limited liability company
organized and existing under the Laws of Delaware (the “Company”), is made this 14th day of August, 2009 (the “Closing Date”) by and among the Company and each of the Persons (as hereinafter defined) listed on
Exhibit “A” attached hereto and made a part hereof. Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in Appendix 1 attached hereto. 
 WITNESSETH: 
 RECITALS 
  

	1.	On July 29, 2009, the Company was formed as a limited liability company organized and existing under the Laws of Delaware pursuant to the Certificate of Formation filed with
the Delaware Secretary of State in accordance with the provisions of the Delaware Act (the “Certificate”). 

  

	2.	EOC, as the sole member of the Company, adopted a limited liability company agreement of the Company effective as of such date (the “Original Agreement”).

  

	3.	On June 29, 2009, EOC, EXCO Production Company, LP and BG US Production Company, LLC entered into that certain Purchase and Sale Agreement (the “Purchase
Agreement”), which contemplated, among other things, that EOC, Vaughan Holdings Company, LLC, and BG would enter into that certain Contribution Agreement dated August 14, 2009 (the “Contribution Agreement”).

  

	4.	Under the Contribution Agreement (a) in return for an undivided fifty percent (50%) of the Member Interest of the Company (i) EOC agreed to contribute or cause the
contribution (directly or indirectly) of all of the equity interests of TGG Pipeline, Ltd., Talco Midstream Assets Ltd. and TGGT GP Holdings, LLC to the Company, and (ii) BG agreed to contribute the Final Cash Amount to the Company, and
(b) the parties agreed that the Company would make special distributions to EOC pursuant to this Agreement in an aggregate amount equal to the Final Cash Amount. 

  

	5.	The Contribution Agreement contemplates, among other things, that the Parties enter into this Agreement as an amendment and restatement of the Original Agreement in its entirety to
reflect the agreement of the Company and the Members as set forth herein. 

 NOW THEREFORE, in consideration of the foregoing, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, effective as of the Closing Date, the Original Agreement is hereby amended and restated in its entirety to read as follows: 
  

 1 

 ARTICLE 1 
 ORGANIZATION; REPRESENTATIONS AND WARRANTIES 
 Section 1.1 Formation. The Company
was formed as a Delaware limited liability company by execution and delivery of the Certificate to the Secretary of State of the State of Delaware on July 29, 2009. A copy of the Certificate is attached hereto as Exhibit “B”.

 Section 1.2 Name. The name of the Company is “TGGT Holdings, LLC” and all business of the Company shall be
conducted under such name or under any other name approved by the Management Board pursuant to Section 5.1(b)(xi). 
 Section 1.3 Term. The Company shall continue until dissolved in accordance with the provisions of the Delaware Act and this Agreement. 
 Section 1.4 Registered Agent. The Company’s initial registered office in the State of Delaware shall be located at 1209 Orange Street, Wilmington, Delaware 19801. The registered agent at such
address is The Corporation Trust Company. The Management Board may change the Company’s registered agent and registered office in the State of Delaware from time to time pursuant to Section 5.1(c)(xiv). 
 Section 1.5 Principal Office. The Company’s principal office shall be located at 12377 Merit Drive, Suite 1700, Dallas, Texas
75251. The Management Board may change the Company’s principal office from time to time pursuant to Section 5.1(b)(xi), which need not be in Delaware. The Company may have such other places of business as the Management Board may
designate. 
 Section 1.6 Business and Purpose; Power. The business and purpose of the Company shall be to engage in
Midstream Activities, and to engage in any other lawful act or activity that now or in the future may be necessary, convenient, incidental, or advisable to accomplish the foregoing purpose and that is not forbidden by Law in the jurisdictions in
which the Company engages in such business or activities. The Company shall have all powers and privileges granted by the Delaware Act, any other Law, or by this Agreement, including incidental powers thereto, to the extent that such powers and
privileges are necessary, customary, convenient or incidental to the attainment of the Company’s business and purpose as set forth in this Section 1.6. 
 Section 1.7 Qualifications in Other Jurisdictions. The Company’s officers shall cause the Company to be qualified, formed or registered under assumed or fictitious name or similar Laws in any
jurisdiction in which the Company transacts business. The Company’s officers shall execute, deliver and file any certificates (and any amendments and/or restatements thereof) necessary or appropriate for the Company to qualify and continue to
do business in a jurisdiction in which the Company may wish to conduct business. At the request of the Management Board, each Member shall execute, acknowledge, swear to and deliver all certificates and other instruments conforming with this
Agreement that are necessary or appropriate to qualify, continue and terminate the Company as a foreign limited liability company in all such jurisdictions in which the 

  

 2 

 
Company may conduct business, provided that no Member shall be required to file any general consent to service of process or to qualify as a foreign
corporation, limited liability company, partnership or other entity in any jurisdiction in which it is not already so qualified. 
 Section 1.8 No State Law Partnership. The Members intend that: (a) the Company not be a common law partnership or joint venture; and (b) the Company not create any agency or other relationship creating fiduciary
or quasi-fiduciary duties of any Member to the Company or to any other Member, and this Agreement may not be construed to suggest otherwise. This Agreement shall not subject the Members to joint and several or vicarious liability or impose any duty,
obligation or liability that would arise therefrom with respect to any or all of the Members or the Company. 
 Section 1.9 Other
Business Pursuits. Each Member acknowledges and agrees that the other Members and the Affiliates of the other Members may from time to time be interested, directly or indirectly, in various other businesses and undertakings separate and
apart from the Company, including businesses and undertakings in direct competition with the Company, and except as otherwise provided in Article 13, neither the Company nor any other Member shall be entitled to notice thereof, or a right to
participate therein, or any right to any profits from any such other businesses or undertakings 
 Section 1.10 Representations
and Warranties of Members. 
 (a) Each Member hereby represents and warrants to the Company and the other Members as
follows: 
 (i) Independent Evaluation. It is sophisticated in the evaluation, purchase, ownership and operation of oil
and gas properties and related facilities. In making its decision to enter into this Agreement and to consummate the transaction contemplated herein, it, except to the extent of the other Member’s express representations and warranties in this
Section 1.10 and in the Contribution Agreement, (A) has relied or shall rely solely on its own independent investigation and evaluation of the Company and its assets and the advice of its own legal, tax, economic, environmental,
engineering, geological and geophysical advisors and the express provisions of this Agreement and not on any comments, statements, projections or other materials made or given by any representatives or consultants or advisors engaged by any other
Member, and (B) has satisfied or shall satisfy itself through its own due diligence as to the environmental and physical condition of and contractual arrangements and other matters affecting the Company or its assets. 
 (ii) Accredited Investor. It is an “accredited investor,” as such term is defined in Regulation D of the Securities Act
of 1933, as amended, and is acquiring its Member Interest for its own account and not with a view to a sale or distribution thereof in violation of the Securities Act of 1933, as amended, and the rules and regulations thereunder, any applicable
state blue sky Laws or any other applicable securities Laws. 
  

 3 

 (iii) Unregistered Member Interest. It understands and acknowledges that its
Member Interest has not been registered under the Securities Act or under any state securities Laws and further understands and acknowledges that its representations and warranties contained in this Section 1.10 are being relied upon by the
Company and the other Members as the basis for the exemption from the registration requirements of the Securities Act and under all applicable state securities Laws. It further acknowledges that the Company will not and has no obligation to
recognize any Transfer of a Member Interest to any Person unless and until the provisions of Articles 10, 11 and 12 have been fully satisfied. 
 (iv) Organization; Existence. Such Member is duly formed, validly existing and in good standing under the Laws of the state of its formation. Such Member has all requisite power and authority to own and operate
its property and to carry on its business as now conducted. Such Member is duly licensed or qualified to do business as a foreign limited partnership or limited liability company or other legal entity, as applicable, and is in good standing in all
jurisdictions in which such qualification is required by Law, except where the failure to qualify or be in good standing would not have a material adverse effect on such Member. 
 (v) Authorization. Such Member has full power and authority to enter into and perform this Agreement and the Associated Agreements
to which it is a party and the transactions contemplated herein and therein. The execution, delivery, and performance by such Member of this Agreement have been and when executed and delivered the Associated Agreements to which it is a party will
have been duly and validly authorized and approved by all necessary partnership or company action, as applicable, on the part of such Member. This Agreement is, and the Associated Agreements to which such Member is a party when executed and
delivered by such Member will be, the valid and binding obligation of such Member and enforceable against such Member in accordance with their respective terms, subject to the effects of bankruptcy, insolvency, reorganization, moratorium, and
similar Laws affecting the rights of creditors generally, as well as to principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at Law). 
 (vi) No Conflicts. The execution, delivery, and performance by such Member of this Agreement and the Associated Agreements to which
it is a party and the consummation of the transactions contemplated herein and therein does not and will not (A) conflict with or result in a breach of any provisions of the organizational documents or other governing documents of such Member,
(B) result in a default or the creation of any 

  

 4 

 
Encumbrance or give rise to any right of termination, cancellation, or acceleration under any of the terms, conditions, or provisions of any material
contract, note, bond, mortgage, indenture, license, or other material agreement to which any such Member is a party or by which such Member may be bound or (C) violate any Law applicable to such Member, except in the case of clauses
(B) and (C) where such default, Encumbrance, termination, cancellation, acceleration or violation would not, individually or in the aggregate, have a material adverse effect on such Member. 
 (vii) Claims and Litigation. There is no written claim for breach of contract, tort or violation of Law or investigation of which
such Member has received written notice or any suit, action or litigation, by any Person, and no legal, administrative, or arbitration proceedings, (in each case) pending, or to such Member’s knowledge, threatened in writing against such
Member, or to which such Member is a party, that would have a material adverse effect upon the ability of such Member to perform its obligations under this Agreement. 
 (viii) Bankruptcy. There are no bankruptcy, reorganization or receivership proceedings pending, being contemplated by or, to such
Member’s knowledge, threatened against such Member or any of its Affiliates that have a direct or indirect ownership interest in such Member (including its ultimate parent company), and neither the Member nor any such Affiliate is insolvent or
generally not paying its debts as they become due. 
 (ix) No FERC Regulation. Neither such Member nor its Affiliates
are subject to the Standards of Conduct of the Federal Energy Regulatory Commission (“FERC”) contained in 18 C.F.R. Part 358, as such regulations may be amended from time to time (“Standards of Conduct”).

 (b) Each Member agrees to indemnify and hold harmless the Company Group Members and the other Members, from any liability,
loss, cost, damage and expense (including the costs of litigation, arbitration and reasonable attorneys’ fees) arising out of or resulting from the breach of any representation, warranty or covenant of such Member set forth in this
Section 1.10. 
 ARTICLE 2 
 INTENTIONALLY OMITTED 
 ARTICLE 3 
 CAPITALIZATION 
 Section 3.1 Initial Contributions. On the Closing Date, each
Member made those contributions to the Company that are provided for in Sections 2.1 and 3.2 of the 

  

 5 

 
Contribution Agreement and the amounts set forth in Exhibit “A” (the “Initial Contributions”). As a result of such Initial
Contributions, each Member shall have the Member Interest set forth opposite such Member’s name on Exhibit “A”. 
 Section 3.2 Additional Contributions. 
 (a) Each Member shall be required to fund its Member
Interest share of all costs and expenses included in each approved Annual Work Program and Budget and Emergency Expenditures. 
 (b) Notwithstanding anything to the contrary in this Section 3.2 or Section 3.3, unless otherwise decided by the Management Board, the Company shall pay expenditures authorized by this Agreement incurred by any Company Group
Member out of gross receipts received by the Company Group Members. 
 (c) The Company shall use (and cause the Company Group
Members to use) the proceeds of all additional contributions made by the Member pursuant to this Section 3.2 and Section 3.3 exclusively for the purposes contemplated by the Call Notice to which such additional contributions relate.

 Section 3.3 Additional Contributions Procedures. 
 (a) To the extent that, at any time, the Company Group Members’ gross receipts are not anticipated to be sufficient to satisfy their
estimated expenditures to be incurred in the succeeding Calendar Quarter pursuant to an approved Annual Work Program and Budget, the President and General Manager shall issue Call Notices to the Members for additional contributions in an amount
equal to the difference between such estimated expenditures and anticipated gross receipts not more than thirty (30) days but not less than fifteen (15) days prior to the commencement of such Calendar Quarter. 
 (b) Further, the President and General Manager may issue Call Notices to the Members at any other time for other additional contributions
to the extent that the Company Group Members’ anticipated gross receipts and other additional contributions made pursuant to Section 3.3(a) are not anticipated to be sufficient to satisfy the Company Group Members’ estimated
expenditures to be incurred during the current Calendar Quarter in accordance with this Agreement, provided that Call Notices may not be issued pursuant to this Section 3.3(b) for any estimated expenditures more than thirty (30) days in
advance of such estimated expenditures. 
 (c) Proper adjustment shall be made in each Calendar Month between advances made
hereunder and actual expenditures, to the end that each Member bears and pays its allocable share of expenditures, and no more. All calls for capital contributions shall be expressed in U.S. dollars and shall state the date on which payment is due
and the bank(s) and account(s) to which payment is to be made. Each Call Notice shall specify in reasonable detail the purpose(s) for which such additional contribution(s) are required, and the amount of the contribution(s) to be made by each Member
pursuant to such Call Notice. 
  

 6 

 (d) Each Member shall contribute any additional contribution within fifteen
(15) Business Days of the date of delivery of the relevant Call Notice. 
 Section 3.4 Member Loans. 
 (a) At the election of Management Board pursuant to Section 5.1(b)(xvi), capital requirements for the Members may be funded with
Member Loans. 
 (b) All Member Loans shall be made upon the terms approved by the Management Board pursuant to
Section 5.1(b)(xvi), which terms shall include the amounts of such Member Loans, the schedule for advancing such Member Loans, the schedule of repayment of such Member Loans, rates of interest (if any) payable on such Member Loans and all other
terms deemed necessary by such Management Board (provided that the terms set forth in this Agreement shall be included). The terms of the Member Loans made by each Member pursuant to the same decision of a Management Board shall be identical except
as to the amount. All Member Loans shall be represented by written notes setting forth those terms. 
 (c) Each Member shall
provide to the Company a percentage of each Member Loan equal to such Member’s Member Interest. 
 (d) All Member Loans
shall rank pari passu in all respects without preference or priority over one another. 
 (e) Member Loans shall be
repaid only out of Available Cash. 
 (f) Unless otherwise agreed by the Management Board, payment of all required Member
Loans shall be made by wire transfer of immediately available funds in U.S. dollars without set-off or deduction for bank charges. 
 (g) Upon notice from the President and General Manager or any other Member, each Member shall be required to return any payment received with respect to any Member Loan to the extent: (i) such payment was made in error; (ii) the
amount paid to the Member was greater than the amount to which the Member was actually entitled; or (iii) applicable Law requires the return of such payment. Each Member shall return any such payment to the Company not later than ten
(10) days after receipt of such notice requiring such return. 
 (h) In the event that the Company is dissolved and wound
up, all Member Loans shall be contributed to the capital of the Company upon the dissolution of the Company, and shall not be considered liabilities of the Company for purposes of winding up. This Section 3.4(h) shall not, however, affect any
outstanding liabilities by any Member to make Member Loans to the Company. 
  

 7 

 (i) Unless otherwise required by the Code, any Member Loan shall be treated as a loan by
the Member to the Company for federal income tax purposes. 
 Section 3.5 Failure to Fund Additional Contributions or Member
Loans. 
 (a) Any Member that fails to pay in full when due any amounts owed and undisputed under the terms of this
Agreement (including failure to pay the full amount of such Member’s Member Interest share of any Member Loan when due) and such failure is not cured within fifteen (15) days of such Member’s receipt of a Default Notice shall be in
default under this Agreement, and shall be referred to herein as a “Defaulting Member”. The Company shall (or any Affected Member may) give notice of such default (a “Default Notice”) to the Defaulting Member, and
its Credit Facility Lender (if any) and each of the non-defaulting Members. 
 (b) “Default Period” means the
period beginning fifteen (15) days from the date of a Member’s and its Credit Facility Lender’s (if any) receipt of a Default Notice if such Member remains in default under Section 3.5(a), and ending when all of the Defaulting
Member’s defaults have been remedied in full. 
 (c) All amounts in default and not paid when due under this Agreement
shall bear interest at the Default Interest Rate from the due date to the date of payment. 
 Section 3.6 Certain Consequences of
Default. 
 (a) Notwithstanding any other provision in this Agreement to the contrary, during the Default Period, a
Defaulting Member shall have no right to: 
 (i) except for Required Asset Upgrades, make or elect to participate in any
proposal under this Agreement; 
 (ii) vote on any matter with respect to which Member approval is required under the express
terms of this Agreement (excluding any amendment or waiver of the terms of this Agreement); 
 (iii) call any Management Board
or subcommittee meeting; 
 (iv) except for votes by the Board Members of such Defaulting Member under Section 5.1(c)(i)
that pertain to Development Work Programs, vote on any matter coming before the Management Board or any subcommittee; 
 (v)
access any data or information relating to any operation conducted by the Company (except to the extent such Member or an 

  

 8 

 
Affiliate of such Member is providing Services to the Company Group Members pursuant to a Services Agreement, and such data or information is necessary for
such Member or Affiliate to perform its responsibilities thereunder); 
 (vi) elect to participate in any proposed New
Business (other than a Required Asset Upgrade) under Section 13.3; 
 (vii) Transfer or Encumber all or any part of its
Member Interest except: (A) a Transfer to or Encumbrance of Member Interest in favor of a Person who simultaneously with such Transfer or Encumbrance satisfies in full the Total Amount in Default; or (B) a Credit Facility Encumbrance
granted pursuant to a borrowing for which all of the proceeds thereof are used to pay the entire amount of the Total Amount in Default; 
 (viii) withhold consent to any Transfer of all or an undivided portion of the Member Interest of a non-defaulting Member pursuant to Article 11, or exercise its preferential purchase right provided for in
Section 12.1 in the event of such a Transfer by a non-defaulting Member, or in Section 12.2 in the event of a Change in Control of a non-defaulting Member; or 
 (ix) elect to participate in the acquisition of any Acquired Business pursuant to Section 13.1. 
 (b) In addition to the other remedies available to the Company and the Affected Members under this Agreement and any other rights
available to each Affected Member to recover its share of the Total Amount in Default, from and after the thirtieth (30th) day of the Default Period, a Defaulting Member shall have no right to receive distributions from the Company pursuant to
Section 4.5 until the expiration of the Default Period, and such distributions shall instead (to the extent applicable) be made to the Affected Members for advances made by such Affected Members on behalf of the Defaulting Member pursuant to
Section 3.6(e), plus interest thereon as provided in Section 3.5(c). Amounts received towards the Total Amount in Default shall be deemed paid towards the oldest of each applicable type of expense (costs, interest or principal) first. If
there is more than one Affected Member, the distributions attributable to the Member Interests of the Defaulting Member shall be shared among the Affected Members in the proportions that such Affected Members’ Member Interests bear to the
aggregate Member Interests of such Affected Members. 
 (c) Any Default Notice shall include a statement of the amount of
money that the Defaulting Member has failed to pay. 
 (d) If the Defaulting Member remedies its default in full before the
Default Period commences, the Company shall promptly notify each non-defaulting Member and such Defaulting Member’s Credit Facility Lender (if any) of such occurrence. 
  

 9 

 (e) Upon the commencement of the Default Period, the Company shall send the
non-defaulting Members a statement of the sum of money that the Defaulting Member failed to pay and such non-defaulting Members shall pay such amount within fifteen (15) days following receipt of the statement. Each such non-defaulting Member
shall be required to pay that portion of the amount that the Defaulting Member failed to furnish that such non-defaulting Member’s Member Interest bears to the aggregate Member Interests of all non-defaulting Members. If any non-defaulting
Member fails to timely satisfy such obligations, such non-defaulting Member shall thereupon be a Defaulting Member subject to the provisions of Sections 3.5, 3.6 and 3.7. If all non-defaulting Members fail to timely satisfy such obligations, the
Members shall be deemed to have unanimously determined not to make such expenditure and the Defaulting Member shall no longer be deemed to be in default with respect to such expenditure. 
 (f) During the Default Period, the Company shall not be obligated or required to (i) except for Member Requested Services, Required
Asset Upgrades and Article 13 Contracts, participate in any proposed New Business and each Defaulting Member shall be deemed to have elected not to participate in any such proposed New Business under Section 13.3 or (ii) acquire any
Acquired Business and each Defaulting Member shall be deemed to have elected not to acquire any such proposed Acquired Business under Section 13.1. 
 Section 3.7 Extended Default. 
 (a) In addition to the other remedies
available to the Affected Members under this Article 3 and any other rights available to each Affected Member to recover its share of the Total Amount in Default, in the event a Defaulting Member fails to completely remedy its default after the one
hundred twentieth (120th) day of the Default Period, any Affected Member may elect to reduce the Member Interest of the Defaulting Member by written notice to the Company (an “Interest Reduction Notice”, and the date of
delivery of the Interest Reduction Notice, the “Interest Reduction Notice Delivery Date”) and the other Members in accordance with the following formula: 
  

							
	AMIDM
	 	=	 	   CCDM  
	  	
	 	 	CCT
	  	

  

					
	where:	 		  	
			
	AMIDM	 	=	  	the adjusted Member Interest of the Defaulting Member as of the Interest Reduction Notice Delivery Date (in percent)

  

 10 

					
	CCDM	 	=	  	the aggregate capital contributions made to the Company by the Defaulting Member as of the Interest Reduction Notice Delivery Date (in US dollars) (excluding capital contributions made to the
Company pursuant to an Asset Upgrade in which less than all Members participate)
			
	CCT	 	=	  	the aggregate capital contributions made to the Company by all Members as of the Interest Reduction Notice Delivery Date (in US dollars) (excluding capital contributions made to the Company
pursuant to an Asset Upgrade in which less than all Members participate)

 (b) The amount by which the Defaulting Member’s Member Interest is reduced
pursuant to Section 3.7(a) shall be referred to as the “Reduced Member Interest”. Within ten (10) Business Days of the Interest Reduction Notice Delivery Date, each Affected Member shall provide written notice to the
Company and the other Affected Members whether it elects to take a portion of the Reduced Member Interest (provided that the Affected Member that provided the Interest Reduction Notice shall be required to take a portion of the Reduced Member
Interest, or if no other Affected Members elect to take a portion of the Reduced Member Interest, all of the Reduced Member Interest). Failure of an Affected Member other than the Affected Member that provided the Interest Reduction Notice to so
notify the Company and the other Affected Members within such period shall be deemed an election by such Affected Member not to take a portion of the Reduced Member Interest. Unless otherwise agreed by the Affected Members taking a portion of the
Reduced Member Interest, each such Affected Member shall be entitled to take that portion of the Reduced Member Interest that such Affected Member’s Member Interest bears to the total Member Interests of the Affected Members electing to take a
portion of the Reduced Member Interest. 
 (c) Immediately following the elections of the Affected Members in
Section 3.7(b), the Company shall cause the Member Interests to be revised to reflect the adjustments described in such Section, effective as of the Interest Reduction Notice Delivery Date. Each Member hereby pledges and assigns to the Company
and grants to the Company a continuing security interest for the benefit of the other Members in and to all of such Member’s Member Interest for purposes of enforcement of the remedies described in this Section 3.7. Notwithstanding the
foregoing, but subject to Section 10.3(b), the security interests created for the benefit of the Company under this Section 3.7(c) are and will be, in all respects, subordinate to the liens and security interests created pursuant to a
Credit Facility Encumbrance regardless of the time of execution of the instruments creating such liens and/or security interests and/or the filing of such liens and security interests in the applicable county or parish or other governmental
office. The Company and each Member shall execute any instruments requested by any Credit Facility Lender reasonably necessary to reflect the subordination of any liens or security interests created for the benefit of 

  

 11 

 
the Company under this Section 3.7(c) to the liens and security interests created pursuant to such Credit Facility Encumbrance (subject always to the
rights of Company and the other Members set forth in Section 10.3(b)). 
 (d) The reduction of a Defaulting Member’s
Member Interest pursuant to Section 3.7(a) shall be deemed to be full satisfaction to such Defaulting Member’s Total Amount in Default. 
 Section 3.8 Capital Accounts. 
 (a) “Capital Account” means, with respect to any
Member, an account that is maintained for such Member and which, as of any given date, has a balance calculated as follows: 
 (i) the aggregate amount of cash that has been contributed to the capital of the Company as of such date by or on behalf of such Member; plus 
 (ii) the Gross Asset Value of any property other than cash that has been contributed to the capital of the Company as of such date by such Member and the amount of liabilities assumed by any such Member under
Section 752 of the Code and the Treasury Regulations or which are secured by any Assets distributed to such Member; plus 
 (iii) the aggregate amount of the Net Profits that has been allocated to such Member as of such date pursuant to the provisions of Section 4.1 or Section 14.3 or any items of income or gain which are specially allocated to such
Member pursuant to Section 4.2 or 4.3 or other positive adjustments required by the Treasury Regulations and which have not been previously taken into account in determining such Member’s Capital Account; minus 
 (iv) the aggregate amount of the Net Losses that have been allocated to such Member as of such date pursuant to Section 4.1 or
Section 14.3 and the amount of any item of expense, deduction or loss which is specially allocated to such Member pursuant to Section 4.2 or Section 4.3 or other negative adjustments required by the Treasury Regulations and which have
not been previously taken into account in determining such Member’s Capital Account; and minus 
 (v) the aggregate
amount of cash and the Gross Asset Value of all Assets that has been distributed to or on behalf of such Member and the amount of any liabilities of such Member assumed by the Company under Section 752 of the Code and the Treasury Regulations
or which are secured by any property contributed by such Member to the Company, and any other negative adjustments required by the Treasury Regulations and which have not been previously taken into account in determining such Member’s Capital
Account. 
  

 12 

 (b) Each Member’s initial Capital Account balance after the special distributions
provided for in Section 4.5(e)(i) and (ii) shall be equal to the Final Cash Amount (as determined pursuant to Section 3.5 of the Contribution Agreement). 
 Section 3.9 No Interest on or Return of Capital Contributions. 
 No Member shall be
entitled to interest on its contributions to the Company or to a return thereof, except as otherwise specifically provided for in this Agreement. 
 ARTICLE 4 
 ALLOCATIONS AND DISTRIBUTIONS 
 Section 4.1 Allocations of Net Profits and Net Losses. 
 (a) Except as provided in Section 14.3(b), after giving effect to the special allocations set forth in Sections 4.2 and 4.3, Net
Profits and Net Losses for any Fiscal Year shall be allocated among the Members in accordance with their respective Member Interests. 
 (b) The Parties intend that: (i) to the extent possible, allocations of losses and deductions pursuant to this Agreement are intended to conform with Members’ capital contributions (including any
disproportionate capital contributions); and (ii) the allocation provisions of this Agreement shall produce final Capital Account balances for each Member thereof to be as nearly as possible equal to the amount of the liquidating distributions
to be made under Section 14.3. To the extent that the allocations required in this Agreement would fail to produce such final Capital Account balances, to the extent possible: (I) such allocation provisions shall be amended by the Tax
Member with the consent of the other Members, if and to the extent necessary to produce such result; and (II) items of income, gain, loss, or deduction for prior open Fiscal Years shall be reallocated by the Tax Member among the Members to the
extent it is not possible to achieve such result with allocations of income, gain, loss, or deduction for the current Fiscal Year and future Fiscal Years. 
 Section 4.2 Special Allocations. The following special allocations shall be made in the following order: 
 (a) Minimum Gain Chargeback. To the extent required by Section 1.704-2(f) of the Treasury Regulations, if there is a net decrease in “partnership minimum gain” (within the meaning of
Section 1.704-2(b)(2) of the Treasury Regulations) in a Fiscal Year, then each Member shall be specially allocated items of income and gain (including gross income) arising during that Fiscal Year (and if necessary subsequent Fiscal Years),
before any other allocation of Net Profits or Net Losses, equal to such Member’s share of the net decrease in partnership minimum gain. The items to be so allocated shall be determined in accordance with Sections 1.704-2(f)(6) and 1.704-2(j)(2)
of the Treasury Regulations. If in any Fiscal Year that has such a net decrease, if the minimum 

  

 13 

 
gain chargeback requirement would cause a distortion in the economic arrangement among the Members and it is not expected that the Company will have
sufficient other income to correct that distortion, the Tax Member may in its reasonable discretion seek to have the Internal Revenue Service waive the minimum gain chargeback requirement in accordance with Section 1.704-2(f)(4) of the Treasury
Regulations. This Section 4.2(a) is intended to comply with the minimum gain chargeback requirement in Section 1.704-2(f) of the Treasury Regulations and shall be interpreted consistently therewith. 
 (b) Member Nonrecourse Debt Minimum Gain Chargeback. If there is a net decrease in “partner nonrecourse debt minimum
gain” (within the meaning of Section 1.704 2(i)(4) of the Treasury Regulations) in any Fiscal Year, then each Member who has a share of the “partner nonrecourse debt minimum gain” as of the beginning of the Fiscal Year shall be
specially allocated items of income and gain arising during that Fiscal Year (and if necessary subsequent Fiscal Years) to the extent required by Section 1.704-2(i)(4) of the Treasury Regulations. The items to be so allocated shall be
determined in accordance with Sections 1.704-2(i)(4) and 1.704-2(j)(2) of the Treasury Regulations. A Member shall not be subject to this provision to the extent that an exception is provided by Section 1.704-2(i)(4) of the Treasury Regulations
and any administrative guidance issued by the Internal Revenue Service with respect thereto. Any “partner nonrecourse debt minimum gain” allocated pursuant to this provision shall consist of first, gains recognized from the disposition of
Assets subject to “partner nonrecourse debt” (within the meaning of Section 1.704-2(b)(4) of the Treasury Regulations), and, second, if necessary, a pro rata portion of the Company’s other items of income or gain (including gross
income) for that Fiscal Year (and if necessary subsequent Fiscal Years). This Section 4.2(b) is intended to comply with the minimum gain chargeback requirement in Section 1.704-2(i)(4) of the Treasury Regulations and shall be interpreted
consistently therewith. 
 (c) Qualified Income Offset. In the event any Member unexpectedly receives any adjustments,
allocations, or distributions described in Section 1.704-1(b)(2)(ii)(d)(4), Section 1.704-1(b)(2)(ii)(d)(5) or Section 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations, which creates a negative Adjusted Capital Account Balance for
its Capital Account, then items of Company income and gain (consisting of a pro rata portion of each item of Company income, including gross income, and gain for such year and, if necessary, for subsequent years) from Business conducted by the
Company shall be specially allocated to such Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, the negative Adjusted Capital Account Balance so created as quickly as possible, provided that
an allocation pursuant to this Section 4.2(c) shall be made if and only to the extent that such Member would have a negative Adjusted Capital Account Balance after all other allocations provided for in this Article 4 have been tentatively made
as if this Section 4.2(c) were not in the Agreement. It is the intent that this Section 4.2(c) be interpreted to comply with the alternate test for economic effect set forth in Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations.

  

 14 

 (d) Nonrecourse Deductions. If there are any “nonrecourse deductions”
(within the meaning of Sections 1.704-2(b)(1) and 1.704-2(c) of the Treasury Regulations) in a Fiscal Year, then each Member shall be allocated its Member Interest share of such nonrecourse deductions. 
 (e) Member Nonrecourse Deductions. If there are any “partner nonrecourse deductions” (within the meaning of
Section 1.704-2(i)(1) of the Treasury Regulations) in a Fiscal Year, then such deductions will be allocated to the Member who bears the economic risk of loss for the “partner nonrecourse liability” (within the meaning of
Section 1.704-2(b)(4) of the Treasury Regulations) to which the deductions are attributable. 
 (f) Special Loss
Allocation. The Net Losses allocated pursuant to Section 4.1(a) hereof shall not exceed the maximum amount of Net Losses, losses or deduction that can be so allocated without causing any Member to have a negative Adjusted Capital Account
Balance at the end of any Fiscal Year. If some, but not all, of the Members would have negative Adjusted Capital Account Balance as a consequence of such allocations, the limitation set forth in the preceding sentence shall be applied on a
Member-by-Member basis so as to allocate the maximum permissible Net Losses and items of loss and deduction to each Member under Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations. All Net Losses in excess of the limitation set forth in
this Section 4.3(f) shall be allocated to the Members in proportion to their respective positive Adjusted Capital Account Balances, if any, and thereafter to the Members in accordance with their interests as determined by the Tax Member in its
reasonable discretion. If any Member would have a negative Adjusted Capital Account Balance at the end of any Fiscal Year, the Capital Account of such Member shall be specially credited with items of Company income (including gross income) and gain
from Business conducted by the Company in the amount of such excess as quickly as possible. 
 Section 4.3 Curative
Allocations. The allocations (the “Regulatory Allocations”) set forth in Section 4.2 are intended to comply with certain requirements of Sections 1.704-1(b) and 1.704-2(b) of the Treasury Regulations. Notwithstanding
any other provisions of this Agreement other than the Regulatory Allocations, the Regulatory Allocations shall be taken into account in allocating Net Profits or Net Losses or other items of income, gain, loss and deduction among the Members so
that, to the extent possible, the net amount of such allocations of other items and the Regulatory Allocations to each Member shall be equal to the net amount that would have been allocated to such Member if the Regulatory Allocations had not been
part of this Agreement. The Tax Member shall determine, with respect to each Fiscal Year, how to apply the provisions of this Section 4.3 in whatever manner is likely to minimize the economic distortions that might otherwise result from the
Regulatory Allocations. 
 Section 4.4 Tax Allocations. Except as otherwise provided in this Section 4.4, for income
tax purposes, the income, gain, loss, deduction or credit (or any item thereof) for each Fiscal Year shall be allocated to and among the Members, in order to reflect the 

  

 15 

 
allocations made pursuant to the provisions of Sections 4.1, 4.2 and 4.3 for such Fiscal Year. Notwithstanding any other provision of this Agreement to the
contrary, any income, gain, loss or deduction recognized by the Company for income tax purposes in any Fiscal Year with respect to all or any part of an Asset that is required to be allocated among the Members in accordance with Section 704(c)
of the Code and the Treasury Regulations so as to take into account the variation, if any, between the adjusted tax basis of such Asset and the initial Gross Asset Value of such Asset at the time of its contribution, or following the adjustment to
the Gross Asset Value of an Asset pursuant to this Agreement, shall be allocated to the Members in the manner so required. Unless otherwise approved by the Management Board, the Company shall elect to use the remedial allocation method pursuant to
Section 1.704-3(d) of the Treasury Regulations. The income tax allocations made pursuant to this Section 4.4 shall not be reflected in any Member’s Capital Account. 
 Section 4.5 Distributions. 
 (a) Available Cash. Available Cash shall be determined by the Management Board on a Calendar Quarter basis, effective at the end of each Calendar Quarter, within thirty (30) days after the end of each such
Calendar Quarter. Subject to the remaining provisions of this Article 4 and any preferential or disproportionate distributions to the extent expressly provided for in this Agreement, and other than upon a liquidation of the Company pursuant to
Section 14.3, the Company shall distribute the Available Cash for a Calendar Quarter to the Members within forty five (45) days following the end of each Calendar Quarter. 
 (b) Distributions. Subject to the other provisions of this Agreement, all Available Cash shall be distributed to the Members of
record in proportion to their relative Member Interests. 
 (c) Withholding. All amounts withheld pursuant to the Code
or any provision of any foreign, state or local tax law or treaty with respect to any payment, distribution or allocation to the Company or the Members shall be treated as amounts distributed to the Members pursuant to this Section 4.5 for all
purposes of this Agreement. The Management Board is authorized to withhold from distributions, or with respect to allocations, to the Members and to pay over to any Governmental Authority any amounts required to be so withheld pursuant to the Code
or any provision of any other federal, foreign, state or local Law and shall allocate such amounts to those Members with respect to which such amounts were withheld. 
 (d) Tax Distributions. 
 (i) Each Member shall be entitled to receive, on the date which is two (2) Business Days prior to each date on which estimated income tax payments are required to be made by a corporate calendar year taxpayer and
each due date for the income tax return of a corporate calendar year 

  

 16 

 
taxpayer (each a “Tax Distribution Date”), cumulative cash distributions (each, a “Tax Distribution”) in an amount equal to
such Member’s Assumed Tax Liability, if any. The “Assumed Tax Liability” of each Member means an amount equal to the excess, if any of: (A) the product of (i) forty percent (40%) and (ii) the cumulative
amount of net taxable income allocated by the Company to such Member as of such Tax Distribution Date, over (B) all previous distributions made to such Member pursuant to this Section 4.5 other than Section 4.5(e). 
 (ii) Distributions under this Section shall be treated as an advance distribution under and shall offset future distributions that such
Member would otherwise be entitled to receive pursuant to the other provisions of this Section 4.5 or, if not previously offset, Section 14.3. 
 (iii) If on a Tax Distribution Date there is not sufficient Available Cash for the Company to distribute to each Member the full amount of such Member’s Assumed Tax Liability, distributions pursuant to this
Section 4.5(d) shall be made to the Members to the extent of the Available Cash in proportion to each Member’s Assumed Tax Liability. 
 (e) Special Distributions. 
 (i) All cash contributions made by any member of the BG
Affiliate Group to the Company pursuant to the Contribution Agreement shall be promptly distributed to EOC. 
 (ii) If the
aggregate amount of distributions made to EOC pursuant to Section 4.5(e)(i) is greater than the Final Cash Amount (as determined pursuant to Section 3.5 of the Contribution Agreement), within ten (10) days of such determination, EXCO
shall make a special contribution to the Company in the amount of the difference between the aggregate amount of distributions made to EOC pursuant to Section 4.5(e)(i) and such Final Cash Amount, and the Company shall promptly make a
distribution to BG in the amount of such difference. If the aggregate amount of distributions made to EOC pursuant to Section 4.5(e)(i) is less than the Final Cash Amount (as determined pursuant to Section 3.5 of the Contribution
Agreement), within ten (10) days of such determination, BG shall make a special contribution to the Company in the amount of the difference between the aggregate amount of distributions made to EOC pursuant to Section 4.5(e)(i) and such
Final Cash Amount, and the Company shall promptly make a distribution to EXCO in the amount of such difference. 
 Section 4.6
Limitations Upon Distributions. Notwithstanding anything to the contrary in Section 4.5, no distribution shall be made if such distribution would violate the Delaware Act. 
  

 17 

 ARTICLE 5 
 MANAGEMENT OF THE COMPANY 
 Section 5.1 Management under Direction of Management
Board. 
 (a) Except as otherwise expressly provided in this Agreement or required under the Delaware Act, the
business and affairs of the Company shall be managed by a board of managers (the “Management Board” and each member of the Management Board, a “Board Member”). The Management Board shall have full and complete
authority, power, and discretion to manage and control the business, affairs, and properties of the Company and to make all decisions regarding those matters and to perform any and all other acts or activities customary or incidental to the
management of the Company and the Business. Without limiting the generality of the foregoing and subject to the provisions of Sections 5.1(b) and 5.1(c), Management Board approval shall be required for all matters not expressly delegated by the
Management Board to the officers of the Company, or to other authorized persons in accordance with Section 5.9. All actions of a Member with respect to the Management Board shall be taken through its Board Members. 
 (b) All matters identified in this Section 5.1(b) shall require the affirmative vote of Board Members representing one hundred
percent (100%) of the Total Votes: 
 (i) approval of voluntary reserves outside of the reserve levels provided in the
definition of Available Cash for purposes of calculating Available Cash; 
 (ii) issuance of any guaranty by any Company Group
Member; 
 (iii) the voluntary grant of any lien or encumbrance on any Asset other than under an approved Company Group
O&M Contract or any Company Group Commercial Contract; 
 (iv) approval of any decision to distribute Available Cash less
frequently than on a Calendar Quarter basis, or, except upon dissolution and winding up of the Company, to distribute any Assets other than cash, or to distribute less than all Available Cash pursuant to Section 4.5; 
 (v) approval of any decision to dispose of Assets that have a value in excess of five million dollars (US$5,000,000) in any transaction or
series of related transactions; 
 (vi) any sale, merger, reorganization or consolidation of any Company Group Member;

 (vii) any voluntary dissolution, liquidation or winding up of any Company Group Member; 
  

 18 

 (viii) filing any documents to effect a Bankruptcy of any Company Group Member;

 (ix) redeeming any Member Interest in a manner that is not proportional to all outstanding Member Interests; 
 (x) confessing a judgment against any Company Group Member in connection with any threatened or pending legal action or settling any
litigation or other proceeding in which the amount involved could reasonably be expected to exceed five hundred thousand dollars (US$500,000), in either case, relating to Business; 
 (xi) the conversion of any Company Group Member to a different form of entity, changing the name of any Company Group Member or conducting
Business under a name other than the current names of the Subsidiaries or, with respect to the Company, the name set forth in Section 1.2, or moving the Company’s principal office from the location set forth in Section 1.5;

 (xii) any Company Group Member’s participation in any business or operations other than Midstream Activities;

 (xiii) changing the method of accounting (other than in connection with a tax-related action or decision made by the Tax
Member pursuant to the authority granted herein) or outside auditors of the Company; 
 (xiv) the voluntary amendment of the
Certificate; 
 (xv) other than the Initial Contributions, allowing any contribution to the capital of the Company by any
Member in any form other than cash; 
 (xvi) any decision that Member Loans be utilized to fund additional Member Interest
capital requirements rather than cash contributions, and the terms of such Member Loans; 
 (xvii) the registration of any
equity or debt securities of any Company Group Member under applicable United States federal or foreign securities Laws or any public offering of equity or debt securities of any Company Group Member; 
 (xviii) any agreement pursuant to which any Company Group Member would be prohibited or restricted from engaging in any lawful business or
activity or competing with any Person in any geographic area; 
 (xix) any decision for the Company to hold any assets other
than equity interests in the Subsidiaries; 
  

 19 

 (xx) any action by any Company Group Member that would subject any Company Group Member
to the Standards of Conduct; 
 (xxi) except with respect to a Defaulting Member or as provided in Section 4.5(e),
distributing any cash or Assets of any Company Group Member in a manner that is not proportional to all outstanding Member Interests; 
 (xxii) issuing any additional Member Interests or other equity or debt securities of any Company Group Member or options to acquire any such securities; 
 (xxiii) causing any Company Group Member to acquire any Acquired Business or engage in any New Business (other than Asset Upgrades);

 (xxiv) any incurrence, assumption or guaranty of any indebtedness for borrowed money by any Company Group Member;

 (xxv) initiating any legal action or arbitration by or on behalf of the Company or any other Company Group Member; and

 (xxvi) except for the rights and waivers set forth in Article 7, providing any indemnification rights to any Covered Person
or waiving any claims against any Person. 
 (c) All matters identified in this Section 5.1(c) shall require the
affirmative vote of Board Members representing seventy five percent (75%) of the Total Votes, except for those matters identified in Sections 5.1(c)(v) and (xix), which shall require the affirmative vote of Board Members appointed by Members
that are not the counterparty or Affiliates of the counterparty under the relevant contract representing seventy five percent (75%) of the Total Votes held by such Members: 
 (i) approval of any Annual Work Program and Budget or Development Work Program, and any amendment thereto; 
 (ii) delegation of authority to the officers of the Company to enter into certain Company Group Commercial Contracts (the Management Board
shall use commercially reasonable efforts to make such delegations within thirty (30) days of the Closing Date); 
 (iii)
execution of any Other Material Company Group Contract to be entered into by any Company Group Member, and any material amendment of or voluntary termination of any such Other Material Company Group Contract; 
  

 20 

 (iv) execution of any Company Group O&M Contract to be entered into by any Company
Group Member that requires the approval of the Management Board pursuant to Section 6.4, and any material amendment of or voluntary termination of any such Company Group O&M Contract (provided that approval of any matters described in
Section 6.4(b) shall require the approval specifically set forth therein); 
 (v) execution of any Affiliate Contract to
be entered into by any Company Group Member, and any material amendment of or voluntary termination of any such Affiliate Contract; 
 (vi) approval of the final terms of any financing and security arrangements relating to the Business, including execution of any notes, bonds, indentures, loan agreements or other material agreements between any Company Group Member and
lenders, and any amendment or voluntary termination of any such agreement; 
 (vii) creation of any new office, other than the
officers specifically set forth in Section 5.9(b), determination of the rights, powers, privileges and duties of such new office, appointment of any Person to any such new office, and termination of any such new office; 
 (viii) approval of the final terms of any settlement by any Company Group Member in respect of the Business of any claim or suit or series
of related claims or suits for an amount, or institution of litigation by any Company Group Member against any Person, for an amount in excess of two hundred and fifty thousand dollars (US$250,000) (exclusive of legal fees); 
 (ix) except as may be required by Law, altering, amending or waiving the insurance requirements for the Company Group Members set forth on
Schedule 5.13; 
 (x) approval of any decision to distribute Available Cash more frequently than on a Calendar Quarter basis;

 (xi) approval of any decision to dispose of Assets that have a value in excess of one million dollars (US$1,000,000) but
not more than five million dollars (US$5,000,000) in any transaction or series of related transactions; 
 (xii) appointment
of any officer of any Company Group Member in accordance with Section 5.9(a), removal of any officer of any Company Group Member (other than a seconded officer, which is addressed in Section 5.1(c)(xx) below), removal of the Tax Member and
appointment of any successor Tax Member; 
  

 21 

 (xiii) any election to use the remedial allocation method for any Assets pursuant to
Section 4.4; 
 (xiv) replacement of the Company’s registered office or registered agent in Delaware; 
 (xv) decisions regarding the Assumed Tax liability of any Member pursuant to Section 4.5(d), or the amount of withholdings from
distributions pursuant to Section 4.6; 
 (xvi) approval of a place of business of the Company in addition to the
principal office of the Company designated pursuant to Section 1.5; 
 (xvii) any other matter primarily relating to the
Business or the Assets not otherwise identified in Section 5.1(b) or this Section 5.1(c) which requires the approval of the Management Board pursuant to the terms of this Agreement; 
 (xviii) terminating, amending or altering any of the Services Agreements; 
 (xix) requests for services by the Company Group Members under any Services Agreement, and the terms and conditions for the provision of
such services; 
 (xx) removal of a secondee pursuant to Section 6.2(A)(4) of any Secondment Agreement (provided that
Management Board approval shall not be required to remove a secondee that is not an officer of the Company and such non-officer secondees may be removed pursuant to Section 5.9(f)); and 
 (xxi) approval of any decision to proceed with the development of the projects commonly referred to as the Waskom Expansion Project and
the Logansport Expansion Project. 
 (d) Notwithstanding anything to the contrary herein, the Management Board shall be deemed
to have approved any activities to be performed by the Company Group Members in connection with the performance of Member Requested Services or Asset Upgrades and execution and performance of Article 13 Contracts. 
 (e) All decisions taken by the Management Board pursuant to this Section 5.1 shall be conclusive and binding on all Members.

 Section 5.2 Number, Tenure and Qualification. 
 (a) The Management Board shall consist of eight (8) Board Members. Each of BG Affiliate Group and EOC Affiliate Group shall be
entitled to appoint 

  

 22 

 
four (4) Board Members and three (3) alternate Board Members. Each of (i) the Board Members of the BG Affiliate Group and (ii) the Board
Members of the EOC Affiliate Group shall be referred to as a separate group (each a “Group”) such that the Management Board shall be comprised of at least two different Groups of Board Members. The Board Members appointed by a
Member, or in any absence of such Board Member, any alternate appointed by such Member, shall be authorized to represent and bind such Member with respect to any matter which is within the powers of the Management Board and is properly brought
before the Management Board. Each alternate Board Member shall be entitled to attend Management Board meetings. The Board Members and alternate Board Members may also bring to any Management Board meetings such advisors as they may deem appropriate.
Each Affiliated Member Group shall appoint its initial Board Members and alternate Board Members by notice to the other Members on or prior to the first meeting of the Management Board or the first required vote of the Management Board. All actions
of a Member with respect to a Management Board shall be taken through its Board Members or alternate Board Members. 
 (b)
Each of BG Affiliate Group and EOC Affiliate Group shall have the right to change any of its Board Members and its alternate Board Members at any time by giving notice of such change to the Company and the other Members. 
 (c) Any Board Member designated in accordance with this section shall be immediately removed from the Management Board at any time that
the Affiliated Member Group that designated such Board Member ceases to own any Member Interest. 
 (d) A Board Member need
not be a resident of the State of Delaware. A Board Member shall hold office until the Board Member’s successor shall be duly elected and shall qualify or until the earlier of such Board Member’s withdrawal, death, removal or resignation.

 (e) A Person that serves as a Board Member shall not be required to be a Board Member as his sole and exclusive occupation,
and a Board Member may have other business interests and may engage in other investments, occupations and activities in addition to those relating to the Company. 
 Section 5.3 Voting Proxies; Quorum; Meetings of Management Board; No Fiduciary Duties. 
 (a) A Board Member may vote at a meeting by a written proxy executed by that Board Member and delivered to another Board Member. Except as provided in Section 5.3(b), attendance (either in person, by remote
communication pursuant to Section 5.3(l), or by proxy) of Board Members representing Members holding more than fifty percent (50%)of the Total Votes shall constitute a quorum for the transaction of Business at a meeting of the Management Board.
The Board Members, collectively, shall have a total of 100 

  

 23 

 
votes, as may be adjusted below (the “Total Votes”) to cast on any action of the Management Board, with (i) the Group of Board Members
elected by the BG Affiliate Group being entitled to cast the number of votes equal to the product (rounded to the nearest tenth) of (x) a fraction the numerator of which is number of the aggregate Member Interests of the members of the BG
Affiliate Group and the denominator which is the sum of all Members’ Member Interests and (y) 100, and (ii) the Group of Board Members elected by the EOC Affiliate Group being entitled to cast the number of votes equal to the product
(rounded to the nearest tenth) of (x) a fraction the numerator of which is the number of the aggregate Member Interests of the members of the EOC Affiliate Group and the denominator which is the sum of all Members’ Member Interests and
(y) 100. If the calculation does not yield exactly 100 votes, then each Group of Board Members’ votes shall be rounded to the nearest 0.01. Any Board Member of a Group of Board Members may cast any or all votes entitled to be cast by that
Group of Board Members. Except as otherwise expressly provided in this Agreement, any action or event relating to Business conducted at a Management Board meeting shall be deemed approved if such action or event receives the required Management
Board approval at a meeting at which a quorum is present. 
 (b) Notwithstanding anything to the contrary in this Agreement,
any actions by any Company Group Member in connection with a breach, default or indemnity or other claims (or alleged breach, default, indemnity or other claims) by a Member or its Affiliate under an Affiliate Contract or other transaction with a
Member or its Affiliate (such as a waiver of the breach or default, notice of breach or event of default or notice of termination for breach or default in accordance with the terms of the Affiliate Contract) or enforcement or exercise of any of the
applicable Company Group Member’s rights or remedies in respect to such breach, default or indemnity or other claim (or alleged breach, default, indemnity or other claim) or otherwise under such Affiliate Contract or in connection with such
transaction (collectively, “Enforcement Activities”) shall be conducted by or under the direction of the Management Board, provided that any Board Member designated by a Member (a “Conflicted Member”) that is, or
has an Affiliate (other than the Company) that is the counterparty under such Affiliate Contract or to such transaction shall not participate in any vote regarding such Enforcement Activities at any meeting of such Management Board, shall not be
required to be present to constitute a quorum of such Management Board and shall not be counted for purposes of determining whether such actions by the applicable Company Group Member receive the minimum vote necessary to take such action; provided,
further, that no officer or other agent of the Company that is also a present officer, director, member, manager, stockholder, partner, employee or other agent or Affiliate of a Conflicted Member or one of its Affiliates shall have any obligation to
take or refrain from taking any action on behalf of any Company Group Member or be requested or required by any Company Group Member or Management Board to take or refrain from taking any action with respect to any Enforcement Activities including
such Conflicted Member, except to provide information, documents and other related items reasonably requested by any Company Group Member or any Member in 

  

 24 

 
connection with such Enforcement Activities. Except with respect to such Person’s failure to provide information, documents or other related items
requested by such Company Group Member in connection with such Enforcement Action and to provide testimony, give evidence and otherwise participate in any suit, litigation, arbitration or other dispute resolution proceeding involving the Conflicted
Member, any such Person’s failure or refusal to take or refrain from taking any such action shall not constitute: (i) a breach of any duty, fiduciary or otherwise, owed by such Person to the Company; or (ii) fraud, bad faith or
willful misconduct on the part of such Person. Any officer, director, manager, member, stockholder, partner, employee or other agent of a Member, or an Affiliate of such Member, is authorized to take or refrain from taking any action on behalf of
the Company associated with any Enforcement Activities described in the foregoing two sentences. For the avoidance of doubt, removal of a secondee under Section 6.2 (other than removal of a secondee pursuant to Section 6.2(A)(4)) of any
Secondment Agreement shall be an Enforcement Activity. 
 (c) The Management Board may establish such subcommittees as it may
deem appropriate. The functions of such subcommittees shall be to serve in an advisory capacity only. Each Member shall have the right to appoint a representative to each subcommittee. 
 (d) The President and General Manager may call a meeting of the Management Board by giving notice to the Members at least fifteen
(15) days in advance of such meeting. Any Member may request a meeting of the Management Board by giving notice to the other Members and the President and General Manager, which notice shall include any proposals being proposed by such Member
for consideration at the meeting (including appropriate supporting information not previously distributed to such Members). Upon receiving such request, the President and General Manager shall call such meeting for a date not less than fifteen
(15) days nor more than twenty (20) days after receipt of the request. 
 (e) Each notice of a meeting of a
Management Board as provided by the President and General Manager shall contain: (i) the date, time and location of the meeting; (ii) an agenda of the matters and proposals to be considered and/or voted upon; and (iii) copies of all
proposals to be considered at the meeting (including appropriate supporting information not previously distributed to the Members). A Member, by notice to the other Members and the President and General Manager, which notice shall include any
additional proposals being proposed by such Member to be considered at the meeting (including appropriate supporting information not previously distributed to the Members), given not less than five (5) Business Days prior to a meeting, may add
additional matters to the agenda for a meeting. On the request of a Member, and with the unanimous consent of all other Members, the Management Board may consider at a meeting a proposal not contained in such meeting agenda. 
  

 25 

 (f) There shall be at least one (1) meeting of the Management Board per Calendar
Quarter unless all Members agree in writing to the contrary. Meetings of each subcommittee shall take place as often as the Management Board shall determine. All meetings of the Management Board and each subcommittee shall be held in the principal
offices of the Company, or elsewhere as the Management Board or such subcommittee may mutually decide, which alternate location may be within or outside the State of Delaware. 
 (g) With respect to meetings of the Management Board and each subcommittee, the President and General Manager’s duties shall include
timely preparation and distribution of the agenda. 
 (h) Until the first anniversary of the Closing Date, the chairman of the
Management Board shall be a Board Member designated by EXCO. Thereafter, the right to appoint the chairman of the Management Board shall be rotated on an annual basis among the Affiliated Member Groups, with such rotation proceeding in order
of highest aggregate Member Interests of such Affiliated Member Groups (and alphabetically among Affiliated Member Groups with identical aggregate Member Interests), and with the Member named in the preceding sentence being excluded from the first
round of rotation; provided however that (i) any Affiliated Member Group holding less than twenty-five percent (25%) of the aggregate Member Interests of the Company shall not be included in the foregoing rotation and shall not have a
right to appoint the chairman of the Management Board and (ii) any Affiliated Member Group that is created as the result of a Transfer of a Member Interest shall be added to the end of the rotation at the time of such Transfer. Any Affiliated
Member Group may waive its right to appoint the chairman. For the avoidance of doubt, the chairman shall have no special casting or deciding vote on any matter presented to the Management Board. The chairman of the Management Board shall appoint a
secretary who shall make a record of each proposal voted on and the results of such voting at such Management Board meeting. Each Board Member shall sign and be provided a copy of such record at the end of such meeting, and it shall be considered
the final record of the decisions of such Management Board. 
 (i) The secretary of the Management Board shall provide each
Member with a copy of the minutes of each Management Board meeting within fifteen (15) Business Days after the end of the meeting. Each such Member shall have fifteen (15) days after receipt of such minutes to give notice to the secretary
of any objections to the minutes. A failure to give notice specifying objection to such minutes within said fifteen (15) day period shall be deemed to be approval of such minutes. In any event, the votes recorded under Section 5.3(h) shall
take precedence over the minutes described above. 
 (j) In lieu of a meeting, any Member may submit any proposal that is
within the powers of the Management Board to approve or disapprove to the Management Board for a vote by notice. The proposing Member shall notify the President and General Manager with written materials describing the proposal and 

  

 26 

 
the President and General Manager shall provide a copy of such proposal to each Member. Any such proposal by a proposing Member shall include with such
proposal adequate documentation to enable the other Members to make a decision. Each Member (including the proposing Member) shall communicate its vote on the proposal by notice to the President and General Manager and the other Members within
fifteen (15) days after receipt of the proposal from the President and General Manager, unless such proposal, together with any other increases to an approved Annual Work Program and Budget for a Calendar Year, if accepted, would result in
aggregate spending pursuant to such Annual Work Program and Budget of more than ten percent (10%) in excess of the original amount of the Annual Work Program and Budget approved pursuant to Section 6.2 (or, in the case of the Annual Work
Program and Budget for Calendar Year 2009, attached hereto as Exhibit “E-2”) or, once amended to increase the amount of the Annual Work Program and Budget ten percent (10%) above the then existing amount in accordance with
Section 6.2(e), the amended amount of the Annual Work Program and Budget, in which case each Member (including the proposing Member) shall communicate its vote on the proposal by notice to the President and General Manager and the other Members
within sixty (60) days after receipt of the proposal from the President and General Manager. Any Member failing to communicate its vote in a timely manner shall be deemed to have voted against such proposal. Within five (5) Business Days
following the expiration of the relevant time period, the President and General Manager shall give each Member a confirmation notice stating the tabulation and results of the vote on such proposal. 
 (k) From time to time, the Management Board may approve guidelines, standards or procedures regarding the implementation of Business to be
observed in the conduct of Business by the Company Group Members. 
 (l) Board Members may participate in any meeting by means
of conference telephone or similar remote communications equipment by means of which all Persons participating in the meeting can hear each other and participation in such a meeting shall constitute presence in person at such meeting. 
 (m) Attendance of a Board Member at any meeting of the Management Board (including by telephone or similar remote communication equipment)
shall constitute a waiver of notice of such meeting, except where such Board Member attends the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not properly called or convened and
notifies the other Board Members at such meeting of such purpose. 
 (n) No Board Member, nor any Member appointing any such
Board Member, shall owe any fiduciary duty to the Company, any other Member or Members as a group in connection with the activities of the Board Members or the Management Board, and no Board Member, nor any Member or Member(s) appointing any such
Board Member, shall be obligated to act in the interests of 

  

 27 

 
the Company, any other Member or Members as a group. To the extent permitted by Law, the Board Members shall not be subject to any other or different
standards (including fiduciary standards) imposed by this Agreement, any other agreement contemplated hereby or under the Delaware Act or any other Law or at equity. 
 (o) All notices and communications required or permitted to be given to the Board Members and the President and General Manager pursuant
to this Article 5 shall be sufficient in all respects if given in writing and delivered personally, or sent by bonded overnight courier, or mailed by U.S. Express Mail or by certified or registered United States Mail with all postage fully prepaid,
or sent by telex or facsimile transmission (provided any such telex or facsimile transmission is confirmed either orally or by written confirmation), or sent by pdf via e-mail, addressed to the appropriate Member at the address for such Member shown
below or at such other address as such Member shall have theretofore designated by written notice delivered to the Member giving such notice: 
 If to the President and General Manager: 
 TGGT Holdings, LLC 
 12377 Merit Drive, Suite 1700 
 Dallas,
Texas 75251 
 Attention: President and General Manager 
 Telephone:
                                        

 Fax:
                                         
           
 E-mail:
                                         
      
 If to EOC: 
 EXCO Operating Company, LP 
 12377 Merit Drive, Suite 1700 
 Dallas, Texas 75251 
 Attention: Harold
Hickey 
 Telephone: (214) 368-2084 
 Fax: (214) 368-8754 
 E-mail: hhickey@excoresources.com 
  

 28 

 With copies to: 
 EXCO Operating Company, LP 
 12377 Merit Drive, Suite 1700 
 Dallas, Texas 75251 
 Attention: Stephen F.
Smith 
 Telephone: (214) 368-2084 
 Fax: (214) 706-3409 
 E-mail: ssmith@excoresources.com 
 EXCO Operating Company, LP 
 12377 Merit
Drive, Suite 1700 
 Dallas, Texas 75251 
 Attention: William L. Boeing 
 Telephone: (214) 368-2084 
 Fax: (214) 706-3409 
 E-mail:
lboeing@excoresources.com 
 If to BG: 
 BG US Gathering Company, LLC 
 5444 Westheimer, Suite 1200 
 Houston, Texas 77056 
 Attention: Jon Harris

 Telephone: (713) 599-4000 
 Fax: (713) 599-4250 
 E-mail: Jon.Harris@bg-group.com 
 With a copy to: 
 BG US Gathering Company,
LLC 
 5444 Westheimer, Suite 1200 
 Houston, Texas 77056 
 Attention: Bill Way 
 Telephone: (713) 599-4000 
 Fax: (713) 599-4250 
 E-mail: Bill.Way@bg-group.com 
  

 29 

 Any notice given in accordance herewith shall be deemed to have been given when delivered to the addressee in person, or
by courier, or transmitted by facsimile transmission or email during normal business hours, or upon actual receipt by the addressee after such notice has either been delivered to an overnight courier or deposited in the United States Mail, as the
case may be. The Members may change the address, telephone numbers, facsimile numbers and email addresses to which such communications are to be addressed by giving written notice to the other Parties in the manner provided in this
Section 5.3(o). 
 Section 5.4 Resignation of Board Members. A Board Member may resign from the position of Board
Member at any time by giving written notice to the other Board Members. The resignation of a Board Member shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice; and unless otherwise specified
therein, the acceptance of such resignation shall not be necessary to make it effective. 
 Section 5.5 Removal of Board
Members. Subject to the automatic removal procedures set forth in Section 5.2(c), a Board Member may only be removed by the consent of the Affiliated Member Group then entitled to designate such Board Member in accordance with
Section 5.2(a). 
 Section 5.6 Vacancies. Any vacancy in the position of a Board Member that is created by the death,
resignation or removal of a Board Member shall be filled only by consent of the Affiliated Member Group then entitled to designate such Board Member in accordance with Section 5.2(a). A Board Member elected to fill a vacancy shall hold office
until a successor shall be elected and shall qualify, or until the Board Member’s earlier death, resignation or removal. 
 Section 5.7 Fees and Expenses of Board Members. A Board Member shall not be entitled to any fees for serving as a Board Member. A Board Member shall be entitled to reimbursement for all reasonable out-of-pocket costs and
expenses incurred by such Board Member in its capacity as a Board Member. 
 Section 5.8 No Power of Members to Bind
Company. No Member shall have any power or authority to bind the Company in any way, to pledge the Company’s credit or to render it liable for any purpose. 
 Section 5.9 Delegation of Authority; Officers. 
 (a) The Management Board
shall have the power to elect, delegate authority to, and remove such officers, employees, agents and representatives of the Company and the other Company Group Members as the Management Board may from time to time deem appropriate; provided,
however, that each officer appointee of the Company shall serve a three (3) year term commencing as of the date of the appointment of such officer, and the Management Board shall elect a Person (which may or may not be the existing Person) to
serve the subsequent three (3) year term for such office on or before the expiration of such three (3)

  

 30 

 
year term. Unless otherwise agreed by the Management Board, each officer of the Company shall hold the same office for each other Company Group Member. The
Management Board shall use commercially reasonable efforts to elect all officers identified in Section 5.9(b) within 120 days of the Closing Date. Any delegation of authority to take any action must be approved in the same manner as would be
required for the Management Board to approve such action directly. Any salaries paid by the Company to employees and agents of the Company shall be fixed by the Management Board in accordance with an approved Annual Work Program and Budget. All
amounts to be reimbursed to the employer of any person seconded to any Company Group Member shall be as set forth in the form of the Secondment Agreement and shall be included in the applicable Annual Work Program and Budgets. 
 (b) The Company’s officers as of the Closing Date shall be as follows: 
 (i) President and General Manager. The President and General Manager shall be the chief executive officer of the
Company responsible for the day to day direction of the Company and shall see that all decisions and resolutions of the Management Board are implemented. The President and General Manager shall be based in the Company’s principal office. Each
Affiliated Member Group shall have the right to nominate candidates for the position of President and General Manager to the Management Board for its approval; provided that until the fifth (5th) anniversary of the Closing Date, the BG Affiliated Member Group shall have the sole right to nominate candidates for the
position of President and General Manager to the Management Board for its approval. Following the fifth (5th) anniversary of the Closing Date, each Affiliated Member Group shall have the right to nominate candidates for the position of President and General Manager to the Management Board for its approval; provided
however, that in the event of a change in Control of the ultimate parent company of EOC while one or more members of the EOC Affiliate Group is a Member, then so long as BG or an Affiliate of BG is a Member, the BG Affiliated Member Group shall have
the sole right to nominate candidates for the position of the President and General Manager to the Management Board for its approval. The President and General Manager’s rights, powers, privileges and duties shall include: 
  

	 	(A)	making calls for additional capital contributions and Member Loans pursuant to Sections 3.2 and 3.4; 

  

	 	(B)	preparing proposed Annual Work Program and Budgets, and implementing each approved Annual Work Program and Budget, subject to the other terms of this Agreement;

  

	 	(C)	 as the representative of the Company, directing the Subsidiaries to take actions, or refrain from acting, 

  

 31 

	 	 
in accordance with the determinations of the appropriate Member Interests in accordance with the terms of this Agreement; 

  

	 	(D)	those duties set forth in Section 5.3 with respect to Management Board and subcommittee meetings; 

  

	 	(E)	supervising and coordinating the activities of the other officers and managers of the Company Group Members; 

  

	 	(F)	administering the day-to-day corporate affairs of the Company, including coordinating with the Member service providers under the Services Agreements with respect to the day-to-day
provision of services under such agreements; and 

  

	 	(G)	such other rights, powers, privileges and duties as may be determined by the Management Board from time to time. 

 (ii) Vice President of Commercial Operations and Business Development. The Vice President of Commercial Operations and Business
Development shall be the officer of the Company responsible for the commercial and business development activities of the Company. The Vice President of Commercial Operations and Business Development shall be based in the Company’s Jonesville
office or such other location as the Management Board may determine. Each Affiliated Member Group shall have the right to nominate candidates for the position of Vice President of Commercial Operations and Business Development to the Management
Board for its approval. The Vice President of Commercial Operations and Business Development’ rights, powers, privileges and duties shall include: 
  

	 	(A)	supervising and coordinating all business development activities of the Company Group Members, including land department, gas control/SCADA and the balancing of all midstream
systems, and negotiation of Company Group Commercial Contracts pertaining to gas transportation and gathering, as well as ensuring that all Company Group projects are completed in a timely manner; 

  

	 	(B)	managing the relationships of the Company Group Members with all Governmental Authorities; 

  

 32 

	 	(C)	assisting the President and General Manager with the preparation of that portion of each proposed Annual Work Program and Budget relating to the commercial activities to be
performed pursuant to such proposed Annual Work Program and Budget; and 

  

	 	(D)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

 (iii) Vice President of Engineering and Construction. The Vice President of Engineering and Construction
shall be the officer of the Company responsible for the engineering and construction activities of the Company. The Vice President of Engineering and Construction shall be based in the Company’s principal office. Each Affiliated Member Group
shall have the right to nominate candidates for the position of Vice President of Engineering and Construction to the Management Board for its approval. The Vice President of Engineering and Construction’s rights, powers, privileges and duties
shall include: 
  

	 	(A)	supervising and coordinating all project engineering activities of the Company; 

  

	 	(B)	overseeing all construction activities of the Company; 

  

	 	(C)	supervising and administering all document control functions associated with construction activities of the Company Group Members; 

  

	 	(D)	assisting the President and General Manager with the preparation of that portion of each proposed Annual Work Program and Budget relating to the engineering and construction
activities to be performed pursuant to such proposed Annual Work Program and Budget; 

  

	 	(E)	upon the elimination of the office of Vice President of Asset Integrity pursuant to Section 5.9(b)(viii)(B), those rights, powers, privileges and duties of the Vice President
of Asset Integrity as of such time; and 

  

	 	(F)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

  

 33 

 (iv) Vice President of Operations and Maintenance. The Vice President of Operations and
Maintenance shall be the officer of the Company responsible for the operations and maintenance activities of the Company. The Vice President of Operations and Maintenance shall be based in the Company’s principal office. Each Affiliated Member
Group shall have the right to nominate candidates for the position of Vice President of Operations and Maintenance to the Management Board for its approval. The Vice President of Operations and Maintenance’s rights, powers, privileges and
duties shall include: 
  

	 	(A)	supervising and coordinating all operations and maintenance activities of the Company Group Members, including all associated field and control room activities;

  

	 	(B)	supervising all procurement and contracting activities of the Company Group Members, in accordance with the policies and procedures of the Company approved by the Management Board
and in the absence of such approved policies and procedures, in accordance with policies and procedures approved by the President and General Manager; 

  

	 	(C)	supervising all product quality and measurement activities of the Company Group Members; 

  

	 	(D)	assisting the President and General Manager with the preparation of that portion of each proposed Annual Work Program and Budget relating to the operations and maintenance
activities to be performed pursuant to such proposed Annual Work Program and Budget; and 

  

	 	(E)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

 (v) Vice President of HSSE. The Vice President of HSSE shall be the officer of the Company responsible for
the HSSE activities of the Company. The Vice President of HSSE shall be based in the Company’s principal office. Each Affiliated Member Group shall have the right to nominate candidates for the position of Vice President of HSSE to the
Management Board for its approval. The Vice President of HSSE’s rights, powers, privileges and duties shall include: 
  

	 	(A)	supervising and coordinating all regulatory compliance activities of the Company Group Members; 

  

 34 

	 	(B)	managing compliance of each Company Group Members with the HSSE Principles, the HSSE Plan and the HSSE Management System; 

  

	 	(C)	establishing and managing a program to track greenhouse gas emissions from the Assets; 

  

	 	(D)	assisting the President and General Manager with the preparation of that portion of each proposed Annual Work Program and Budget relating to the HSSE activities to be performed
pursuant to such proposed Annual Work Program and Budget; and 

  

	 	(E)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

 (vi) Vice President of Finance and Business Services. The Vice President of Finance and Business Services
shall be the officer of the Company responsible for the accounting, finance, human resources, legal, information technology and procurement activities of the Company. The Vice President of Finance and Business Services shall be based in the
Company’s principal office. Any Affiliated Member Group shall have the right to nominate candidates for the position of Vice President of Finance and Business Services to the Management Board for its approval. The Vice President of Finance and
Business Services’s rights, powers, privileges and duties shall include: 
  

	 	(A)	supervising and coordinating all accounting and finance activities of the Company Group Members; 

  

	 	(B)	establishing and maintaining internal controls for each Company Group Member; 

  

	 	(C)	creating the reports identified in Section 8.4 or, if applicable, working with the independent auditor of the Company to facilitate the creation of the reports identified in
Section 8.4; 

  

 35 

	 	(D)	analyzing the credit risk of each counterparty with whom a Company Group Member does business; 

  

	 	(E)	supporting the Vice President of Operations and Maintenance in all procurement and contracting activities of the Company Group Members; 

  

	 	(F)	supervising and coordinating all human resources activities of the Company Group Members; 

  

	 	(G)	procurement of services from the Members in accordance with the Services Agreements, including legal and information technology services; 

  

	 	(H)	assisting the President and General Manager with the preparation of that portion of each proposed Annual Work Program and Budget relating to the accounting and finance activities to
be performed pursuant to such proposed Annual Work Program and Budget; 

  

	 	(I)	maintaining the books and records of each Company Group Member, including those relating to commercial activities of each Company Group Member; 

  

	 	(J)	coordinating and overseeing the services provided under the Services Agreements; and 

  

	 	(K)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

 (vii) Vice President of Asset Integrity. 
  

	 	(A)	The Vice President of Asset Integrity shall be the officer of the Company responsible for the development and ongoing monitoring of systems to manage the physical assets of the
Company to ensure that their operational performance and profitability is as intended (with respect to selection, maintenance, inspection, modification and renewal). The Vice President of Asset Integrity shall be based in the Company’s
principal office. Each Affiliated Member Group shall have the right to nominate candidates for the position of Vice President of Asset Integrity to the Management Board for its approval. The Vice President of Asset Integrity’s rights, powers,
privileges and duties shall include: 

  

	 	(1)	conducting the gap analysis provided for in Section 5.11(a); 

  

 36 

	 	(2)	working with the Vice President of Engineering and Construction and the Vice President of Operations and Maintenance, develop and submit to the Management Board the appropriate
technical standards for the design, construction and operation of Midstream Assets; 

  

	 	(3)	based upon the gap analysis and agreed technical standards, conducting a risk assessment to prioritize the actions and budgets necessary to close any gaps; 

 

	 	(4)	developing ongoing inspection, testing and condition monitoring plans with a system to capture all related data, records and reports; 

  

	 	(5)	providing auditing and compliance assurance; and 

  

	 	(6)	such other rights, powers, privileges and duties as may be determined by the Management Board or delegated by the President and General Manager from time to time.

  

	 	(B)	Notwithstanding anything to the contrary herein, on the third (3rd) anniversary of the appointment of the first Vice President of Asset Integrity, the office of Vice President
of Asset Integrity shall be eliminated, provided that all rights, powers, privileges and duties of the Vice President of Asset Integrity as of the time of the elimination of such office shall become the rights, powers, privileges and duties of the
Vice President of Engineering and Construction (in addition to those rights, powers, privileges and duties then held by the Vice President of Engineering and Construction). 

 (c) Unless otherwise agreed by the Management Board, all officers of the Company shall be seconded to the Company by the Members pursuant
to a secondment agreement substantially in the form of Exhibit “C” attached hereto. 

  

 37 

 
Simultaneously with the execution of this Agreement, each initial Member and the Company shall enter into a secondment agreement substantially in the form of
Exhibit “C”. 
 (d) Each Member shall use commercially reasonable efforts to cause its employees that are officers
of any of the Company Group Members (including as secondees) to perform their respective duties in good faith, in accordance with this Agreement and in a manner such officers reasonably believe to be in or not opposed to the best interests of the
Company Group Members, and with the care that an ordinarily prudent person in a similar position would use under similar circumstances. No Member shall be liable in damages to the Company Group Members or other Members for any action taken or not
taken by such officer. The Company shall indemnify and hold harmless the officers and Board Members against liabilities to third parties in accordance with Section 7.2 below. Nothing in this Agreement is intended to alter, amend or waive each
officer’s individual duty of loyalty to the Company Group Members. 
 (e) None of the officers of the Company shall be
“managers” of the Company under Section 18-401 of the Delaware Act. 
 (f) Subject to the related expenditures
being included in an approved Work Program and Budget (including any overruns permitted by Section 6.2(f)) and only with the written approval of the President and General Manager, any officer of the Company that directly or indirectly
supervises or will supervise such employee or secondee may hire and terminate employees that are not officers of the Company or another Company Group Member and second and terminate the secondment of individuals that are not officers of the Company
or another Company Group Member in accordance with the applicable Secondment Agreement. 
 Section 5.10 Provision of Services by
the Members. 
 (a) On and effective as of the Closing Date, the Company shall enter into a Services Agreement
with BG North America, LLC in substantially the form attached hereto as Exhibit “D-1”. 
 (b) On and effective as of
the Closing Date, the Company shall enter into a Services Agreement with EOC in substantially the form attached hereto as Exhibit “D-2”. 
 Section 5.11 Standard of Conduct; Health, Safety, Security and the Environment. 
 (a) All
Business shall be conducted in compliance with the terms and conditions of: (i) all applicable Laws; and (ii) once approved by the Management Board in accordance with Sections 5.11(b), (c) and (d), appropriate HSSE guidelines and
principles. The Company shall conduct, and cause each other Company Group Member to conduct, the Business as a reasonably prudent 

  

 38 

 
operator, in a good and workmanlike manner, with due diligence and dispatch, in accordance with good midstream industry practice and appropriate technical
standards and guidelines issued by the American Petroleum Institute, the American Society of Mechanical Engineers, the United States Department of Transportation and the American National Standards Institute, among others. Within twelve
(12) months of signing this Agreement, the Company shall perform a gap analysis against a set of agreed technical standards for design, construction and operation of Midstream Assets. These standards shall be submitted to the Management Board
for its approval and shall include appropriate technical standards and guidelines (as mentioned above), including agreed exceptions, and shall adhere to HSSE guidelines and principles agreed upon pursuant to Sections 5.11(b), (c) and (d).

 (b) Within thirty (30) days following the Closing Date, the Management Board shall use good faith efforts to develop
HSSE principles to be observed in the conduct of all Business (the “HSSE Principles”) which at a minimum include: (i) the goals of preventing injuries and providing a healthy, safe and secure working environment;
(ii) protection of the environment; (iii) the responsibility to seek continuous improvement in HSSE performance; and (iv) the principle that level of risk is the primary criterion for facilities design. 
 (c) Within one hundred twenty (120) days following the Closing Date, the Management Board shall use good faith efforts to develop an
HSSE plan to be observed in the conduct of all Business (the “HSSE Plan”) which is consistent with the HSSE Principles and the relevant technical standards and codes of practice issued by American professional bodies, including the
American Petroleum Institute, the American Society of Mechanical Engineers, the American National Standards Institute, and all applicable Laws. 
 (d) Within two (2) years following the Closing Date, the Management Board shall have used good faith efforts to develop and implement an HSSE management system to be observed in the conduct all Business (an
“HSSE Management System”) which addresses the HSSE risks specific to the conduct of all Business, and the management of controls to eliminate, reduce or mitigate HSSE risks. 
  

 39 

 (e) Within sixty (60) days following the Closing Date, the Management Board shall
use good faith efforts to develop a policy for the Company Group Members regarding required disclosure of conflicts of interest that any Member, Affiliate of a Member, Company Group Member, and any officer, director or key employee of any Member,
Affiliate of a Member or Company Group Member may have with the interests of any of the Company Group Members. 
 Section 5.12
Certain Reports. 
 (a) The Company shall provide the following data and reports, as they are currently
produced or compiled, to each Member: 
 (i) as requested by a Member from time to time, copies of current gathering system
maps; 
 (ii) engineering studies, development schedules and annual progress reports on development projects; 
 (iii) field performance reports; 
 (iv) copies of written notices provided by any third Person regarding violations or potential violations of applicable Law; 
 (v) copies of all material reports provided to any Governmental Authority; 
 (vi) upon
written request of a Member, copies of any material correspondence between any of the Company Group Members and any Governmental Authority; 
 (vii) annual asset integrity plans and progress against said plan; 
 (viii) infrastructure
project plans and monthly project progress reports when in progress through completion; 
 (ix) such other information as may
be reasonably requested by a Member; and 
 (x) such other reports as may be directed by the Management Board. 
 (b) The Company shall, in the conduct of Business: 
 (i) report to the Members within 24 hours of the Vice President of HSSE receiving notice thereof, details of fatalities, lost time
incidents, material environmental incidents and any other material incidents which (in each case) may present a reputational risk to any 

  

 40 

 
Company Group Member or Member and also provide copies of any written notices received from Governmental Authorities or third parties with respect to such
fatalities and incidents; 
 (ii) prepare an HSSE report to be submitted to the Members on the fifteenth
(15th) day of April, July, October and January of each year in respect of the
previous three (3) months, and monthly with respect to item (ii)(C) only, with content to be agreed by the Management Board but containing at a minimum: 
  

	 	(A)	progress against the HSSE Plan applicable to such period; 

  

	 	(B)	status of HSSE actions relating to HSSE audits; 

  

	 	(C)	occupational safety indicators (fatalities and lost time incidents and frequency, recordable incidents and frequency and total man hours worked) of the Company Group Members (and as
agreed to as part of the HSSE Plan in accordance with Section 5.11(c), its contractors and subcontractors); 

  

	 	(D)	known environmental incidents (e.g. leaks, spills, and cases of violations of environmental Laws and permits); and 

  

	 	(E)	HSSE related claims. 

 (iii) contractually
require its contractors, subcontractors and suppliers of services to comply with all applicable Laws and all safety rules of the Company Group Members, and provide to its contractors and subcontractors copies of the HSSE Principles and HSSE
Management System generated pursuant to Section 5.11(b) and (d) that are then in effect and use its commercially reasonable efforts to enforce such Persons’ compliance with such principles and system; and 
 (iv) with reasonable advance notice, permit the Members to have access during normal business hours (at their sole risk and expense,
notwithstanding anything herein to the contrary) to operations, design phase activities, books and records, and representatives of the Company Group Members for the purpose of observing operations or conducting HSSE and asset integrity audits
(provided that such Members shall (A) minimize any disruption to the operations and business of the Company Group Members caused by such observation or audits, and (B) adhere to all safety rules of such operator binding on Company Group
Member personnel and the HSSE Principles and HSSE Management System then in effect while conducting such audits). 
  

 41 

 (c) The Company shall promptly notify the Members of any third party written claim or
suit arising from Business of which the Company becomes aware that exceeds (or is reasonably expected to exceed) one hundred thousand dollars ($100,000), and, upon request of any such Member from time to time, shall further provide, in a timely
manner, the then current information regarding the progress and status of any such claims or suits. 
 Section 5.13 Insurance
Requirements. Subject to the Management Board’s authority under Section 5.1(c)(ix), the Company Group Members shall maintain the insurance coverage set forth on Schedule 5.13. For the avoidance of doubt, a Member may obtain
such additional insurance as it deems advisable for its own account at its own expense provided such insurance does not prejudice any insurance arranged by the Company Group Members. 
 ARTICLE 6 
 ANNUAL WORK PROGRAM AND BUDGETS; CONTRACT AWARDS 
 Section 6.1 Development Work Program; Initial Work Program and Budget. 
 (a) The Management Board shall adopt, and modify from time to time, a multi-year work program for Midstream Activities to be conducted by
the Company Group Members (the “Development Work Program”) as follows: 
 (i) The proposed first draft of the
work program for Midstream Activities to be performed by the Company Group Members for Calendar Years 2009 through 2012 is attached hereto as Exhibit “E-1”. The Management Board shall approve a Development Work Program for such period on
or before October 15, 2009. 
 (ii) On or before August 15 of each Calendar Year, commencing in Calendar Year 2011,
the President and General Manager shall prepare, or cause to be prepared, and submit to the Management Board a revised Development Work Program setting forth the Development Operations to be carried out during the following two Calendar Years. Such
proposed Development Work Program shall automatically include any Midstream Activities which were approved for such period as part of the prior Development Work Program unless the Management Board determines to the contrary. Unless otherwise agreed
by the Management Board, within sixty (60) days after distribution of the proposed Development Work Program (or such later date as may agreed by the Management Board), the Management Board shall meet to consider, modify (if necessary) and
approve or reject the proposed Development Work Program. Approval of the Development Work Program shall require the approval of the Management Board in accordance with Section 5.1(c)(i). If the Management Board does not approve any such
Development Work Program on or prior to the first day 

  

 42 

 
of the following Calendar Year (for purposes of this Section 6.1(a)(ii), the “current Calendar Year”), then that portion of Development
Work Program for the previous Calendar Year pertaining to operating expenses and multi-year expenditures previously approved by the Management Board for the current Calendar Year shall be the Development Work Program, if any, approved for the
current Calendar Year in the preceding Calendar Year. 
 (b) The Annual Work Program and Budget for the remainder of Calendar
Year 2009 is attached hereto as Exhibit “E-2”. The Management Board is hereby deemed to have approved that portion of such Annual Work Program and Budget that pertains to the period between the Closing Date and October 15, 2009, and
that portion of such Annual Work Program and Budget that pertains to the period between October 16, 2009 and December 31, 2009 (for purposes of this Section 6.1(b), the “Final 2009 Period”) is in draft form. The
Management Board shall approve the Annual Work Program and Budget for such Final 2009 Period, including any further details as would be required under the terms of Section 6.2, on or before October 15, 2009. The proposed first draft of the
Annual Work Program and Budget for Calendar Year 2010 is attached hereto as Exhibit “E-3”, and the Management Board shall approve such Annual Work Program and Budget, including any further details as would be required under the terms of
Section 6.2, on or before October 15, 2009. 
 Section 6.2 Subsequent Work Program and Budgets. For each
Calendar Year during the term of this Agreement commencing with Calendar Year 2010, an Annual Work Program and Budget shall be adopted as follows: 
 (a) On or before August 15 in the Calendar Year immediately preceding the relevant Calendar Year, the President and General Manager shall prepare, or cause to be prepared, and submit to the Management Board a
proposed Annual Work Program and Budget for such applicable Calendar Year (provided that in the case of the proposed Annual Work Program and Budget for Calendar Year 2010, the draft Annual Work Program and Budget attached hereto as Exhibit
“E-3” shall be the basis for such proposed Annual Work Program and Budget). Each such proposed Annual Work Program and Budget shall contain at least the following: 
 (i) inclusion of expenditures required by any Company Group Member under the terms of any Company Group Contract during such Calendar
Year, except with the approval of such Management Board to the contrary; 
 (ii) itemized estimates of the expenditures
covered by the proposed Annual Work Program and Budget (including each Member’s share thereof) by budget category, containing sufficient detail (to the extent available) to afford the ready identification of the nature, scope and duration of
the activity in question; 
  

 43 

 (iii) estimates of the schedule pursuant to which each Member’s share of expenses
included in the Annual Work Program and Budget are anticipated to be incurred by the Company; and 
 (iv) any other
information requested in writing by a Member that can reasonably be provided by the Company. 
 (b) Itemized expenditures in
an Annual Work Program and Budget may extend over more than one Calendar Year because such itemized expenditures represent activities or operations that require commitments in excess of one Calendar Year. Once itemized expenditures are approved, the
President and General Manager shall not be required to resubmit them for approval of the applicable Management Board on an annual or other periodic basis, but instead all such items shall be automatically included in future Annual Work Program and
Budgets as items which have already been approved. 
 (c) The President and General Manager shall regularly consult with the
Management Board during the preparation of each proposed Annual Work Program and Budget. Following receipt of a proposed Annual Work Program and Budget, each Member shall furnish to the President and Management Board any comments, suggestions or
proposed amendments it may have respecting such proposed Annual Work Program and Budget as soon as may be reasonably practicable, and the President and General Manager shall consider and discuss such comments, suggestions and proposed amendments
with such Management Board. Unless otherwise agreed by the Management Board, within sixty (60) days after distribution of each proposed Annual Work Program and Budget for a Calendar Year, the Management Board and the President and General
Manager shall meet to consider, modify (if necessary) and approve or reject such proposed Annual Work Program and Budget. Subject to Section 6.2(d), approval of an Annual Work Program and Budget shall require the approval of the Management
Board in accordance with Section 5.1(c). 
 (d) In the event an Annual Work Program and Budget is not approved on or
prior to the first day of the Calendar Year to which such Annual Work Program and Budget pertains (for purposes of this Section 6.2(d), the “relevant Calendar Year”), the Management Board shall be deemed to have approved an
Annual Work Program and Budget for the relevant Calendar Year that includes the following: (i) the Midstream Activities scheduled to be performed during the relevant Calendar Year as set forth in the Development Work Program, if any, and
associated costs reasonably required to implement such Midstream Activities; (ii) Operating Expenses equal to the amount of Operating Expenses actually expended in connection with the Business in the previous Calendar Year; (iii) those
multi-year expenditures previously approved by the Management Board pursuant to Section 6.2(b), that are attributable to the relevant Calendar Year; (iv) existing payment commitments to any Person under Company Group Contracts (including
the Services Agreements) in such Calendar Year and other costs and expenses necessary to allow the Company Group Members to comply with their 

  

 44 

 
obligations under all Company Group Contracts (including the Services Agreements); (v) taxes payable by the Company Group Members; and (vi) payroll
and benefits of all employees and all charges to the Company under the Secondment Agreements in respect of any Person seconded to any Company Group Member. 
 (e) Any Member may propose to amend the Development Work Program or an Annual Work Program and Budget by notice to the Management Board and the President and General Manager. Approval of any such amendment shall
require the approval of the Management Board in accordance with Section 5.1(c)(i). Notwithstanding any provision of Section 5.3 to the contrary, each Member shall have sixty (60) days to consider any proposed amendment that would
increase the estimated costs of the Development Work Program for any Calendar Year or any Annual Work Program and Budget by more than ten percent (10%). To the extent that such amendment is approved by the Management Board, the Development Work
Program and the relevant Annual Work Program and Budget shall be deemed amended accordingly, provided that any such amendment shall not invalidate any commitment or expenditure already made by any Company Group Member in accordance with any previous
authorization given pursuant hereto. 
 (f) Approval by the Management Board of an Annual Work Program and Budget shall
constitute the Management Board’s deemed approval for the Company Group Members to expend up to ten percent (10%) in excess of the authorized amount for any category of the Annual Work Program and Budget, not to exceed in the aggregate ten
percent (10%) of the aggregate amount applicable to the Annual Work Program and Budget, and less, in each case, any amounts included as line items for contingencies and overruns with respect to such operations in such category of the Annual
Work Program and Budget. The President and General Manager shall promptly notify the Management Board of any expenditure made by the Company Group Members in the exercise of the rights pursuant to this Section 6.2(f). The ten percent
(10%) deemed approval level set forth in this Section 6.2(f) shall be calculated with respect to the original amount of the Annual Work Program and Budget or, once amended, the amended amount of the Annual Work Program and Budget, provided
that no expenditures incurred pursuant to Section 6.2(g) shall be deemed to be included in an approved Annual Work Program and Budget for purposes of calculating the ten percent (10%) deemed approval levels pursuant to this
Section 6.2(f), nor shall any such expenditures be considered to be amounts expended in excess of the authorized amount of any Annual Work Program and Budget for purposes of calculating the ten percent (10%) deemed approval levels.

 (g) Notwithstanding anything to the contrary in this Agreement, the President and General Manager is expressly authorized
to cause a Company Group Member to make Emergency Expenditures and incur liabilities without prior authorization or approval when necessary or advisable, in the President and General Manager’s good faith judgment, to deal with emergencies,
including 

  

 45 

 
explosions, fires, spills, or any other similar event, which may endanger property, lives, or the environment and it is impractical to get the Management
Board approval for such expenditures and incurrence of such liabilities. The President and General Manager shall as soon as practicable report to the Management Board the nature of any such emergency which arises, the measures it intends to take in
respect of such emergency and the estimated related expenditures. 
 (h) To the extent reasonably within the control of the
President and General Manager, operations described in an Annual Work Program and Budget shall be conducted at the time prescribed in such Annual Work Program and Budget. 
 (i) For the avoidance of doubt, any reference in this Agreement to an approved Annual Work Program and Budget or Development Work Program
shall include an Annual Work Program and Budget or Development Work Program, as applicable, that is deemed to have been approved by the Management Board, and shall incorporate all approved amendments thereto and all modifications to the Annual Work
Program and Budget or Development Work Program, as applicable, described herein that require no action on the part of the Management Board or the Members. 
 (j) Notwithstanding anything to the contrary in this Section 6.2, the Annual Work Program and Budget for each Calendar Year shall contain not less than the Business to be performed during such Calendar Year as
set forth in the Development Work Program. 
 Section 6.3 Statement of Estimated Expenditures. Not later than
twenty (20) days prior to the commencement of each Calendar Quarter during the term of this Agreement, the Company shall provide the Members a statement of the estimated costs to be incurred in such Calendar Quarter. Such statement shall be for
informational purposes only, and, no approval of the Management Board shall be required for any of the costs identified therein to the extent such costs are included in an approved Annual Work Program and Budget. 
 Section 6.4 Company Group O&M Contract Awards. 
 (a) Subject to Sections 6.4(b), (c) and (d), the Company shall award each Company Group O&M Contract to the best qualified
contractor considering cost, ability and HSSE performance considerations (in the Company’s reasonable opinion), to perform the contract without the obligation to tender, and without informing or seeking the approval of the Management Board. The
procedures set forth in this Section 6.4 shall not apply to any contracts that have been awarded, or in respect of which invitations to tender have been issued, on or before the Closing Date, provided that the procedures set forth in this
Section 6.4 shall apply to confirmations, service orders or purchase orders (whether written or oral) entered into on and after the Closing Date pursuant to existing master service agreements that were effective prior to the Closing Date.

  

 46 

 (b) Affiliate Contracts. Prior to entering into any Company Group O&M Contract
between a Company Group Member and a Member or an Affiliate of a Member, the Company shall be required to obtain the affirmative vote of the applicable Board Members of the Management Board pursuant to Section 5.1(c)(v). 
 (c) Multiple Bids. 
 (i) From and after January 1, 2010, prior to entering into a Company Group O&M Contract that can reasonably be expected to result in aggregate payments to the counterparty of more than one million dollars
(US$1,000,000) during any twelve (12) consecutive Calendar Month period, commencing as of January 1 in any Calendar Year, except as provided in Section 6.3(c)(ii), to the extent that more than one competent service provider can
provide the contracted-for service, a Company Group Member shall obtain proposals for such services from at least two (2) service providers. For the avoidance of doubt, a contract that automatically renews (is evergreen) on a month-to-month or
other periodic basis that would meet the one million dollars (US$1,000,000) threshold if it remained in effect for an entire twelve (12) consecutive Calendar Month period commencing as of January 1 in any Calendar Year shall be considered
subject to the requirements of the preceding sentence. 
 (ii) If any Company Group Member desires to award a Company Group
O&M Contract that would otherwise be subject to Section 6.4(c)(i) without tender of proposals from more than one service provider, whether because only one competent service provider can provide the contracted-for-service or otherwise, such
Company Group Member may do so only with the prior approval of the Management Board pursuant to Section 5.1(c)(iv). Failure of a Member to notify the Company and the rest of the Management Board of its approval or rejection of such a Company
Group O&M Contract within the time period specified in Section 5.3 shall be deemed an approval of the award of such Company Group O&M Contract. 
 (iii) To the extent that a Company Group Member enters into a Company Group O&M Contract for which the Company is not required to
obtain proposals from at least two (2) service providers pursuant to Section 6.4(c)(i) and such Company Group O&M Contract can reasonably be expected to result in aggregate payment to the counterparty of more than one hundred thousand
dollars ($100,000), the Company shall keep a written record in its files that are subject to the audit provisions of Section 8.3 explaining why multiple bids were not obtained for such services. 
  

 47 

 (iv) In connection with the foregoing, the Company shall keep a written record in its
files that are subject to the audit provisions of Section 8.3 that (A) in the event that the Company Group O&M Contract is awarded pursuant to Section 6.4(c)(i), includes the proposals obtained from the prospective service
providers; or (B) in the event that the Company Group O&M Contract is awarded pursuant to Section 6.4(c)(ii), includes the notice to the Management Board and the Management Board responses. 
 (d) From and after the Closing Date, if any Company Group Member desires to enter into a Company Group O&M Contract not specifically
and expressly approved as part of an approved Annual Work Program and Budget that can reasonably be expected to result in aggregate payments to the counterparty of more than five million dollars (US$5,000,000) during any twelve (12) consecutive
Calendar Month period, such Company Group Member may do so only with the prior approval of the Management Board pursuant to Section 5.1(c)(iv). Prior to any Management Board vote regarding the award of such a proposed Company Group O&M
Contract, the Company shall provide the Management Board with the tender list and tender evaluation criteria used to secure such proposed Company Group O&M Contract. 
 (e) Upon the reasonable written request of a Member, the Company shall provide such Member a copy of any Company Group O&M Contract of
a material nature that is utilized in connection with Business of the Company, as well as other information that can reasonably be provided by the Company regarding the use and performance of such Company Group O&M Contract, except to the extent
the Company may be prohibited from making any such disclosure under the terms and conditions of such contract and is unable through commercially reasonable efforts to obtain consent for such disclosure. 
 ARTICLE 7 
 INDEMNIFICATION

 Section 7.1 No Liability of Members for Company Obligations. 
 (a) Except as otherwise provided by the Delaware Act, no Covered Person shall be obligated personally for any debt, obligation or
liability of the Company or other Company Group Members solely by reason of being a Covered Person. 
 (b) Except as otherwise
expressly required by Law, a Member, in its capacity as Member, shall have no liability in excess of: (i) the amount of its contributions to the Company; (ii) its share of any assets and undistributed profits 

  

 48 

 
of the Company; (iii) its obligation to make other payments expressly provided for in this Agreement; and (iv) the amount of any distributions
wrongfully distributed to it. No Member shall have any responsibility to restore any negative balance in its Capital Account or to contribute to or in respect of the liabilities or obligations of the Company or any other Company Group Member or to
return distributions made by the Company, except as expressly provided herein or required by any non-waivable provision of the Delaware Act. The agreement set forth in the immediately preceding sentence shall be deemed to be a compromise with the
consent of all of the Members for purposes of §18-502(b) of the Delaware Act. However, if any court of competent jurisdiction or properly constituted arbitration panel orders, holds or determines that, notwithstanding the provisions of this
Agreement, any Member is obligated to restore any such negative balance, make any such contribution or make any such return, such obligation shall be the obligation of such Member and not of any other Person. 
 Section 7.2 Exculpation. 
 (a) No Covered Person shall be liable to any Company Group Member or any other Covered Person for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person on
behalf of the Company Group Members and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement or a delegation of authority in accordance with this Agreement, except that (i) a
Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person’s fraud, bad faith, willful misconduct or gross negligence, (ii) a Covered Person that is not an officer or employee of a Member,
Affiliate of a Member, Company Group Member, or Affiliate of a Company Group Member, shall be liable for any such loss, damage, or claim incurred by reason of such Covered Person’s breach of this Agreement (other than Section 5.11) and
(iii) a Covered Person that is an officer of a Company Group Member shall be liable for any such loss, damage, or claim incurred by reason of such Covered Person’s breach of his or her duty of loyalty to such Company Group Member, in each
case, as established by a non-appealable court order, judgment, decree or decision or pursuant to a final and binding decision of an arbitration panel pursuant to Section 15.2. 
 (b) A Covered Person shall be fully protected in relying in good faith upon the records of the Company Group Members and upon such
information, opinions, reports or statements presented to the Company Group Members by any Person as to matters the Covered Person reasonably believes are within such other Person’s professional or expert competence and who has been selected
with reasonable care by or on behalf of the Company Group Members, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, Net Profits, Net Losses or Available Cash or any other facts pertinent
to the existence and amount of Assets from which distributions to Members might properly be paid. 
  

 49 

 Section 7.3 Indemnification. To the fullest extent permitted by applicable Law, the
Company and the other Company Group Members shall indemnify and hold harmless each Covered Person from and against all Claims arising from or related to any act or omission performed or omitted by such Covered Person on behalf of the Company Group
Members and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement or a delegation of authority in accordance with this Agreement, except that: (a) no Covered Person shall be
entitled to be indemnified in respect of any Claim by reason of such Covered Person’s fraud, bad faith, willful misconduct or gross negligence; (b) no Covered Person that is not an officer or employee of a Member, Affiliate of a Member,
Company Group Member, or Affiliate of a Company Group Member shall be entitled to be indemnified in respect of any Claim by reason of such Covered Person’s breach of this Agreement (other than Section 5.11); and (c) no Covered Person
that is an officer of a Company Group Member shall be entitled to be indemnified in respect of any Claim by reason of such Covered Person’s breach of his or her duty of loyalty to such Company Group Member, in each case, as established by a
non-appealable court order, judgment, decree or decision or pursuant to a final and binding decision of an arbitration panel pursuant to Section 15.2. Any indemnity under this Section 7.3 shall be provided out of and to the extent of the
Assets only (including the proceeds of any insurance policy obtained pursuant to Section 7.5), and no Covered Person shall have any personal liability on account thereof. Any amendment, modification or repeal of this Section 7.3 or any
provision in this Section 7.3 shall be prospective only and shall not in any way affect the rights of any Covered Person under this Section 7.3 as in effect immediately prior to such amendment, modification or repeal with respect to
matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be asserted. 
 Section 7.4 Expenses. To the fullest extent permitted by applicable Law, expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding
shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it
shall be determined that the Covered Person is not entitled to be indemnified as authorized in Section 7.3. 
 Section 7.5
Insurance. 
 (a) Subject to Section 5.1(c)(ix), the Company Group Members may purchase and maintain
insurance, to the extent and in such amounts as the Management Board shall, in its sole discretion, deem reasonable, on behalf of Covered Persons and such other Persons as the Management Board shall determine, against any liability that may be
asserted against or expenses that may be incurred by any such Person in connection with the activities of the Company Group Members or such indemnities, regardless of whether the Company would have the power to indemnify such Person against such
liability under the provisions of this Agreement. Subject to Section 5.1(b)(xxvi), the Management Board and the Company Group Members may enter into indemnity contracts with 

  

 50 

 
Covered Persons and such other Persons as the Management Board shall determine and adopt written procedures pursuant to which arrangements are made for the
advancement of expenses and the funding of obligations under Section 7.4 and containing such other procedures regarding indemnification as are appropriate. 
 (b) Notwithstanding anything else in this Agreement, no Company Group Member shall be required to provide indemnification to any Covered
Person for any Claim to the extent that such Claim is insured against by such Covered Person’s workers compensation insurance. 
 Section 7.6 Primary Obligation. The Company hereby acknowledges that the Covered Persons may have certain rights to indemnification, advancement of expenses and/or insurance provided by Members and certain of their
Affiliates (collectively, the “Member Indemnitors”). The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to the Covered Persons under Sections 7.3 and 7.4 are primary and any
obligation of the Member Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Covered Persons are secondary), (ii) that it shall be required to advance the full amount of expenses
incurred by the Covered Persons and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of Sections 7.3 and 7.4 of this
Agreement (or any other agreement between the Company and the Covered Person), without regard to any rights the Covered Person may have against the Member Indemnitors, and (iii) that the Company irrevocably waives, relinquishes and
releases the Member Indemnitors from any and all claims against the Member Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Member
Indemnitors on behalf of a Covered Person with respect to any claim for which the Covered Person has sought indemnification from the Company pursuant to Sections 7.3 and 7.4 shall affect the foregoing and the Member Indemnitors shall have a right of
contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Covered Person against the Company. The Company agrees that the Member Indemnitors who are not Members are express third party
beneficiaries of the terms of this Section 7.6. 
 ARTICLE 8 
 BOOKS AND RECORDS; ACCOUNTS 
 Section 8.1 Books and Records. At
all times during the term of this Agreement, the Management Board shall keep (or cause to be kept) true and complete books of account for the Company Group Members. Such books shall reflect all Company Group Members transactions in accordance with
GAAP. 
 Section 8.2 Availability of Books and Records. All of the books of account referred to in Section 8.1, together with
an executed copy of this Agreement and the Certificate, and any amendments thereto (and all such other books and records as may be required by the Delaware Act), shall at all times be maintained at the principal office of 

  

 51 

 
the Company as set forth in Section 1.5. Such books and records, and any other books and records maintained by the Company Group Members, upon
reasonable notice to the Management Board, shall be open to the inspection and examination of the Members or their representatives during normal business hours at the principal office (or other applicable office) of the Company. 
 Section 8.3 Audits. 
 (a) The Members shall have the right to audit costs charged to any Company Group Member’s accounts and other accounting records maintained for any Company Group Member under this Agreement. 
 (b) Upon not less than sixty (60) days’ prior written notice to the Company, any Member shall have the right to audit each
Company Group Member’s books and records for any Calendar Year within the twenty four (24) month period following the end of such Calendar Year. Each Member must provide the Company a written notice of any claims for all discrepancies
disclosed by said audit within such twenty four (24) month period. The cost of each such audit shall be borne by the Member(s) requesting the audit. Any such audit shall be conducted in a manner designed to result in a minimum of inconvenience
and disruption to the operations of the Company Group Members. Where there are two (2) or more Members requesting an audit covering the same Calendar Year, such Members shall make every reasonable effort to conduct joint or simultaneous audits.
Unless otherwise mutually agreed, any audit shall be conducted at the principal office of the Company. 
 (c) The Member
requesting an audit may request information prior to the commencement of the audit, and the Company shall, to the extent available, provide the information requested as soon as practical in order to facilitate the forthcoming audit. The Company
will, to the extent practicable, provide the information in electronic format or hard copy within thirty (30) days after the written request. The information requested shall be limited to that normally used for pre-audit work. 
 (d) Any information obtained by a Member in connection with the conduct of an audit (whether related solely to the Company Group Members
or otherwise) shall be subject to the confidentiality provisions of this Agreement. 
 (e) At the conclusion of each audit,
the Members shall endeavor to settle outstanding matters expeditiously. To this end, the Member(s) requesting the audit will make a reasonable effort to prepare and distribute a written report to the Company and the other Members as soon as
reasonably practicable and in any event within ninety (90) days after the conclusion of each audit. The report shall include all claims arising from such audit together with comments pertinent to the operation of the accounts and records. The
Company shall make a reasonable effort to reply to the report in writing as soon as possible and in any event no later than ninety (90) days after delivery of the report. 
  

 52 

 (f) All adjustments resulting from an audit agreed between the Company and the Member(s)
requesting an audit shall be reflected promptly in the Company’s books and records and reported to the Members. If any dispute shall arise in connection with an audit, it shall be reported to and discussed by the Management Board within sixty
(60) days. If no settlement can be reached by the parties to the dispute within one hundred twenty (120) days after report to the Management Board, and, unless otherwise agreed by the parties to the dispute, the provisions of
Section 15.2 shall apply. 
 Section 8.4 Financial Statements and Reports. The Company shall prepare, and shall
submit to the Members the following statements, reports and notices. 
 (a) Annual financial statements of the Company Group,
consisting of a profit and loss statement, a balance sheet, a statement of cash flows and a statement of changes in the Members’ Capital Accounts, as of the end of and for the prior Fiscal Year, which shall be prepared in accordance with GAAP
and audited by the Company’s independent certified public accountants, which shall be an internationally recognized accounting firm (the “Annual Financial Statements”). The Annual Financial Statements for a Fiscal Year shall be
delivered to each Member within ninety (90) days after the end of such Fiscal Year. 
 (b) Unaudited quarterly financial
statements of the Company Group Members, consisting of a profit and loss statement, a balance sheet, changes in membership capital, and a statement of cash flows, as of the end of and for the prior Calendar Quarter, which shall be prepared in
accordance with GAAP, except for normal year end adjustments and the absence of footnotes (the “Quarterly Financial Statements”). The Quarterly Financial Statements for a Calendar Quarter shall be delivered to each Member within
sixty (60) days after the end of such Calendar Quarter. 
 (c) Monthly financial reports, which shall consist of a profit
and loss statement, a balance sheet, changes in membership capital, a statement of cash flows as of the end of and for the prior Calendar Month, and year-to-date setting forth the actual results for the periods presented together with a comparison
to the respective amounts in the approved Annual Work Program and Budget. The financial statements shall be prepared in accordance with GAAP except for normal year end adjustments and the absence of footnotes and shall contain a narrative describing
the variances to the approved Annual Work Program and Budget (the “Monthly Financial Reports”). The Monthly Financial Reports for a Calendar Month shall be delivered within fifteen (15) days after the end of such Calendar
Month. 
 (d) A monthly operating report containing a description of the Company’s Business during each Calendar Month,
including physical Asset operations and maintenance (the “Monthly Operating Reports”). Each Monthly Operating Report should contain information and narratives describing the 

  

 53 

 
applicable Assets’ performance during the relevant Calendar Month, including average throughput volumes, current makeup of shippers and their respective
rates, HSSE incidents and such other information that may reasonably be required by any Member. The Monthly Operating Reports for a Calendar Month shall be delivered within fifteen (15) days after the end of such Calendar Month. 
 (e) A forecast of the Net Profits and cash distributions to the Members for the remainder of the Fiscal Year and, with respect to the
fourth Calendar Quarter of the then current Fiscal Year, a forecast of the Net Profits and cash distributions to be made to the Members in the first Calendar Quarter of the following Fiscal Year (the “Quarterly Forecasts”). The
Quarterly Forecasts shall be delivered within forty-five (45) days after the end of each Calendar Quarter. 
 (f) An
estimate of taxable income for the Company and the amounts allocable to each Member for each Fiscal Year (the “Tax Estimate Report”). The Tax Estimate Report shall be delivered within forty-five (45) days after the end of the
Fiscal Year. 
 (g) Copies of all material information related to any pending or material threatened litigation or insurance
claim affecting the Company. 
 (h) Copies of: (i) the approved Annual Work Program and Budget in effect from time to
time, within thirty (30) days after the approval thereof in accordance with Section 6.2(c); and (ii) any amended Annual Work Program and Budget within thirty (30) days of such Annual Work Program and Budget is amended.

 (i) Copies of all material filings, disclosures, or reports submitted to any Governmental Authority affecting the Company.

 (j) A quarterly report summarizing all outstanding claims related to any litigation, arbitration, administrative proceeding
or other dispute and any settlement or result of any litigation, arbitration, administrative proceeding or other dispute entered into or relating to the Company that occurred during the prior Calendar Quarter affecting the Company. 
 (k) Such other information as a Member may reasonably request regarding the Company. 
 Section 8.5 Accounting Method. For both financial and tax reporting purposes and for purposes of determining Net Profits and Net
Losses, subject to Section 8.1(b), the books and records of the Company shall be kept utilizing the accrual method of accounting in accordance with GAAP, shall reflect all Company transactions, and shall be appropriate and adequate for the
Business. 
 Section 8.6 Bank Accounts; Investments. The Management Board shall establish one or more bank accounts in the
name of the Company into which all Company funds shall be deposited. 
  

 54 

 Section 8.7 Fiscal Year of the Company. The Company shall adopt the Calendar Year as
its Fiscal Year. 
 ARTICLE 9 
 TAX MATTERS 
 Section 9.1 Tax Treatment of the Company. It is the intent of the Members that the Company
be treated as a partnership for U.S. federal income tax purposes. Neither the Company nor any Member shall make an election to be excluded from the application of the provisions of subchapter K of chapter 1 of subtitle A of the Code or any similar
provisions of applicable state Law or to be classified as an association pursuant to Treasury Regulation Section 301.7701-3. 
 Section 9.2 Tax Treatment of the Contribution Agreement. The Parties intend and expect that the transactions contemplated by the Contribution Agreement will be treated, for purposes of federal income taxation and for
purposes of certain state income tax laws that incorporate or follow federal income tax principles, as resulting in (a) the creation of the Company, in which EOC and BG will be treated as partners, (b) subject to clause (d) below, a
contribution by EOC of all of the Contributed Interests (as defined in the Contribution Agreement) to the Company in exchange for a 50% interest therein; (c) a contribution by BG of the Final Cash Amount to the Company in exchange for a 50%
interest therein, and (d) a distribution by the Company to EOC of the Final Cash Amount (i) as a reimbursement of EOC’s preformation expenditures with respect to the Contributed Interests within the meaning of Treasury Regulations
Section 1.707-4(d) to the 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 EOC of the
Contributed Interests to the Company to the extent Treasury Regulations Section 1.707-4(d) is inapplicable. 
 Section 9.3
Tax Matters Partner. The Members hereby designate EOC as the initial “tax matters partner” as such term is defined in Section 6231(a)(7)(A) of the Code (the “Tax Member”). The Tax Member shall give prompt
written notice to each other Member of any and all notices it receives from the Internal Revenue Service concerning the Company. The Company shall reimburse the Tax Member out of the Available Cash for any expenses that the Tax Member incurs in
connection with its obligations as Tax Member. The Tax Member shall not agree to extend the statute of limitations with respect to partnership items of the Company without the consent of the other Members. No Member shall take any other action with
respect to a partnership level audit item which would be binding on any other Member in computing its liability for taxes (or interest, penalties or additions to tax) without the consent of such other Member. 
 Section 9.4 Tax Returns and Elections. 
 (a) The Tax Member shall prepare, or cause to be prepared, at the expense of the Company, for each Fiscal Year (or part thereof), federal, state and local tax returns required to be filed with respect to the Company.
Each Member 

  

 55 

 
shall furnish to the Company and the Tax Member all pertinent information in its possession relating to the Company’s operations that is necessary to
enable the tax returns to be timely prepared and filed. Not less than sixty (60) days prior to the due date (as extended) of the federal income tax return or any state income tax return with respect to the Company, the return proposed by the
Tax Member to be filed by the Company shall be furnished to the Members for review and approval. In addition, not more than ten (10) days after the date on which the Company files its federal income tax return or any state income tax return, a
copy of the return so filed shall be furnished to the Members. 
 (b) The Company, at its expense, shall cause to be delivered
to each Member within the time period provided by applicable Law an Internal Revenue Service Form K-1 or a good faith estimate of the amounts to be included on such Internal Revenue Service Form K-1 for such Member and such other information as
shall be necessary (including a statement for that year of each Member’s share of Net Profits, Net Losses and other items allocated to such Member) for the preparation and timely filing by the Members of their federal, state and local income
and other tax returns. The Tax Member shall deliver estimates of Net Profits and Net Losses of the Company at least 15 days prior to the due date for an estimated tax payment required under Section 6655 of the Code for a U.S. corporation whose
taxable year ends December 31; provided that all Members taking their share of production in kind shall have provided to the Tax Member, at least seven (7) Business Days prior to such 15 day period, the relevant revenue information
relating to such production in kind for the period. 
 (c) The Management Board may make or revoke an election in accordance
with Section 754 of the Code, so as to adjust the basis of any Assets in the case of a distribution of property, within the meaning of Section 734 of the Code, and in the case of a Transfer of Member Interests, within the meaning of
Section 743 of the Code. 
 Section 9.5 Tax Terminations. If a Member or any direct or indirect owner of a
Member takes any action that causes the Company to be terminated within the meaning of Section 708(b)(1)(B) of the Code, such Member shall indemnify and hold harmless the other Members for any deferral of depreciation deductions allocable
to the other Members as a result of the Code Section 708(b)(1)(B) termination, determined using an annual discount rate of ten percent (10%) and a deemed tax rate of forty percent (40%). 
 ARTICLE 10 
 TRANSFERS OF MEMBER
INTERESTS; ADMISSION OF NEW MEMBERS 
 Section 10.1 Transfer of Member Interests. 
 (a) Any Member may, subject to the other provisions set forth in this Agreement, Transfer all or any undivided share of its Member
Interest. Any attempted Transfer of all or a part of a Member Interest other than in compliance with this Agreement shall be null and void and of no force or effect. Any Member who Transfers any Member Interest shall promptly provide written notice
thereof to the Company and all of the other Members. 
  

 56 

 (b) No Transfer may be made to an individual, and except in the case of a Member
transferring all of its Member Interest, no Transfer may be made which results in the transferor or the transferee holding a Member Interest of less than ten percent (10%). 
 (c) A transferring Member shall, notwithstanding the Transfer, be liable to the Company and the other Members for its obligation to fund
its Member Interest share (as of the time of the Transfer) of Member Interests included in the Transfer of the activities included in each approved Annual Work Program and Budget (including multi-year expenditures included in more than one Annual
Work Program and Budget), and for all other obligations, in each case, accrued under this Agreement or any Associated Agreement on or prior to the Transfer, but shall be released from any other obligations thereafter accruing under this Agreement or
such Associated Agreement with respect to the Member Interest being Transferred, except in the case where the Transfer at issue is made to an Affiliate or where the lender(s) with respect to a Credit Facility Foreclosure foreclose(s) on all or any
part of a Member’s Member Interest, in which cases the transferring Member or Member subject to the foreclosure, as applicable, shall remain primarily liable for all such obligations. 
 (d) In connection with any Transfer of a portion (but less than all) of its Member Interest by any member of the EOC Affiliate Group or BG
Affiliate Group to a third party not affiliated with the EOC Affiliate Group or the BG Affiliate Group, respectively, the EOC Affiliate Group or the BG Affiliate Group, as applicable, shall assign such number of Total Votes equal to the product of
(rounded to the nearest tenth) (x) a fraction the numerator of which is the number of aggregate Member Interests being assigned and the denominator of which is the sum of all Members’ Member Interests and (y) 100. The
transferor’s number of Total Votes shall be reduced by the number of Total Votes so transferred. The transferor and transferee shall, amongst themselves, determine how to allocate the appointment of the Board Members allocated to such
transferor’s Group, provided that such allocation shall be made in a manner so that all of the Total Votes may be represented at any meeting of the Management Board. 
 (e) Any transferee of all of the Member Interest of a Member shall be entitled to all of the Total Votes of its transferor, and shall be
entitled to appoint all Board Member seats previously appointed by its transferor. 
 Section 10.2 Conditions Precedent to a
Member Interest Transfer. Each transferee of any Member Interest or portion thereof shall continue to be subject to the terms hereof, and, as a condition precedent to the Company recognizing such Transfer, each transferor must satisfy all
the requirements (including the proportionate Transfer of its funding obligations), and not violate any of the Transfer restrictions set forth in Section 10.1 above, and each Transfer shall meet the following conditions: 
 (a) Each transferee shall agree in writing to be subject to each of the terms of this Agreement by executing and delivering an assumption
agreement substantially in the form attached hereto as Exhibit “F” (an “Assumption Agreement”). 
  

 57 

 (b) Each transferee shall execute and deliver to the Company a services agreement in
substantially the form attached hereto as Exhibit “G”. 
 (c) Except in the case of a Transfer involuntarily by
operation of Law, the transferor and transferee shall execute and deliver to the Company such documents and instruments of conveyance as may be reasonably necessary or appropriate to effect such Transfer. In the case of a Transfer involuntarily by
operation of law, the Transfer shall be confirmed by presentation to the Company of legal evidence of such Transfer, in form and substance reasonably satisfactory to counsel to the Company. In all cases, the Company shall be reimbursed by the
transferor and/or transferee for all reasonable costs and expenses that it incurs in connection with such Transfer. 
 (d) The
transferor and transferee shall furnish the Company with the transferee’s taxpayer identification number, sufficient information to determine the transferee’s initial tax basis in the Member Interest transferred, and any other information
reasonably necessary to permit the Company to file all required federal and state tax returns and other legally required information statements or returns. Without limiting the generality of the foregoing, the Company shall not be required to make
any distribution otherwise provided for in this Agreement with respect to any transferred Member Interest until it has received such information. 
 (e) Such Transfer shall be exempt from all applicable registration requirements and such Transfer may not violate any applicable Laws regulating the transfer of securities. 
 (f) Such Transfer will not cause the Company to be deemed to be an “investment company” under the Investment Company Act of
1940. 
 Section 10.3 Encumbrances by Members. Nothing contained in this Article 10 or in Article 11 or 12 shall prevent a
Member from Encumbering all or any undivided share of its Member Interest to a third party after the Closing Date, provided that: 
 (a) such Member shall remain liable for all obligations relating to such Member Interest except as provided in Section 10.1(c); and 
 (b) such Encumbrance (including Credit Facility Encumbrances) shall be expressly subject to the rights of the Company and the Members to reduce a Member’s Member Interest pursuant to Section 3.7, and the
Member granting such Encumbrance shall cause the beneficiaries of such Encumbrances to execute any instruments requested by Company or any Member necessary to reflect the rights of Company and such Members set forth in this Section 10.3(b).

  

 58 

 Section 10.4 Admission of Persons as New Members. Upon compliance with all of the
provisions of this Agreement regarding Transfers, (a) a transferee shall be deemed to be a party hereto as if such transferee were the transferor and such transferee’s signature appeared on the signature pages of this Agreement, and shall
be deemed to be a Member and (b) to the extent the transferor no longer holds a Member Interest, such transferor shall thereafter cease to be a Member. 
 ARTICLE 11 
 CONSENTS TO ASSIGNMENT 
 Section 11.1 Certain Transfers during Initial Three Year Period. From and after the Closing Date and until the third anniversary of
the Closing Date (the “Initial Three Year Period”), no Member shall be permitted to Transfer all or any part of its Member Interest or undergo a Change in Control without the prior written consent of each other Member, which consent
may be withheld for any reason in the sole discretion of such other Member, provided that no such consent shall be required for any Transfer of a Member Interest to any Affiliate of such Member. 
 Section 11.2 Other Transfers. A Member shall be permitted to Transfer all or any part of its Member Interest after the Initial Three
Year Period, provided that a transferee must have the financial ability to perform its future payment obligations hereunder and the technical ability to participate in the planning of future operations. 
 ARTICLE 12 
 PREFERENTIAL PURCHASE
RIGHTS; CHANGES IN CONTROL 
 Section 12.1 Preferential Purchase Rights. Any Transfer of all or a portion of a
Member’s Member Interest, other than a Transfer to a Wholly-Owned Affiliate, shall be subject to the following procedure. 
 (a) Once the final terms and conditions of a Transfer have been fully negotiated and are binding on the parties thereto, the transferring Member shall disclose all such final terms and conditions as are relevant to the sale of the Member
Interest (and, if applicable, the determination of the Cash Value of the Member Interest) in a notice to the non-transferring Members, which notice shall be accompanied by a copy of all instruments or relevant portions of instruments establishing
such terms and conditions. Each non-transferring Member shall have the right to acquire the Member Interest subject to the proposed Transfer from the transferring Member on the terms and conditions described in Sections 12.1(c) and 12.1(d), as
applicable, if, within sixty (60) days of the transferring Member’s notice, the non-transferring Member delivers to the transferring Member a counter-notification that it accepts such terms and conditions without reservations or conditions
(subject to the other provisions of this Section 12.1, where applicable). If no non-transferring Member delivers such counter-notification within such time, such Transfer to the proposed transferee may proceed without further notice, subject to
the other provisions of this Agreement, under terms and conditions no more favorable to the transferee than those set forth in the notice to 

  

 59 

 
the non-transferring Members, provided that such Transfer shall be concluded within one hundred twenty (120) days from the date of the notice. If such
Transfer fails to be concluded within such period and the parties thereto desire thereafter to proceed with such proposed Transfer, the transferring Member shall be required to re-offer the Member Interest subject to the Transfer to the
non-transferring Members in accordance with the terms and conditions of this Section 12.1. No Member shall have a right under this Section 12.1 to acquire any asset other than a Member Interest, nor shall a Member be required to acquire
any asset other than a Member Interest, regardless of whether other properties are included in the Transfer at issue. 
 (b)
If more than one non-transferring Member counter-notifies that it intends to acquire the transferring Member’s Member Interest that is subject to the proposed Transfer, then each such Member shall acquire a proportion of the Member Interest
equal to the ratio of its own Member Interest to the total Member Interests of all counter-notifying Members, unless the counter-notifying Members otherwise agree. 
 (c) In the event of a Cash Transfer that does not involve other properties as part of a wider transaction, each non-transferring Member
shall have a right to acquire the Member Interest subject to the proposed Transfer on the same final terms and conditions as were negotiated with the proposed transferee. 
 (d) In the event of a Transfer that is not a Cash Transfer or involves other properties included in a wider transaction (package deal),
the transferring Member shall include in its notification to the non-transferring Members a statement of the proposed Cash Value of the Member Interest subject to the proposed Transfer, and each non-transferring Member shall have a right to acquire
such Member Interest on the same final terms and conditions as were negotiated with the proposed transferee except that it shall pay the Cash Value in immediately available funds at the closing of the Transfer in lieu of the consideration payable in
the third party offer, and the terms and conditions of the applicable instruments shall be modified as necessary to reflect the acquisition of a Member Interest for cash. In the case of a package sale, the non-transferring Members may not acquire
the Member Interest subject to the proposed package sale unless and until the completion of the wider transaction (as modified by the exclusion of properties subject to preemptive rights or excluded for other reasons) with the package sale
transferee. If for any reason the package sale terminates without completion, the non-transferring Members’ rights to acquire the Member Interest subject to the proposed package sale shall also terminate. 
 (e) For purposes of Section 12.1(d), the Cash Value proposed by the transferring Member in its notice shall be conclusively deemed
correct unless any non-transferring Member gives notice to the transferring Member within thirty (30) days of receipt of the transferring Member’s notice stating that it does not agree with the statement of the Cash Value, stating the Cash
Value it believes is correct, and providing any supporting information that it believes is helpful. In 

  

 60 

 
such event, the Members shall have fifteen (15) days in which to attempt to negotiate an agreement on the applicable Cash Value. If no agreement has
been reached by the end of such fifteen (15) day period, any affected Member shall be entitled to refer the matter to an independent expert as provided in Section 15.3 for determination of the Cash Value, provided that the transferring
Member may elect to terminate the proposed Transfer, and any non-transferring Member may elect to revoke its notice of intention to purchase, in either case by notice to the other Members at any time prior to the time that the independent expert is
retained pursuant to such provision. The Cash Value to be submitted to the independent expert by the transferring Member shall be the Cash Value provided by such Member in the notice provided to the non-transferring Members pursuant to
Section 12.1(d), and the Cash Value to be submitted to the independent expert by each non-transferring Member shall be the Cash Value provided by such Member in the notice provided to the transferring Member pursuant to this
Section 12.1(e). 
 Section 12.2 Changes in Control. 
 (a) Any Change in Control of a Member shall be subject to the terms and conditions of this Section 12.2. For purposes of this
Section 12.2, the term “Acquired Member” shall refer to the Member that is subject to a Change in Control, “Other Members” shall refer to all other Members not subject to the Change in Control, and
“Acquiror” shall refer to the third party proposing to acquire Control of the Acquired Member in the Change in Control. 
 (b) Once the final terms and conditions of a Change in Control have been fully negotiated and are binding on the parties thereto, the Acquired Member shall disclose all such final terms and conditions as are relevant
to the acquisition of such Acquired Member’s Member Interest and the determination of the Cash Value of that Member Interest in a notice to the Other Members, which notice shall be accompanied by a copy of all instruments or relevant portions
of instruments establishing such terms and conditions. Each Other Member shall have the right to acquire the Acquired Member’s Member Interest, on the terms and conditions described in Section 12.2(d) if, within sixty (60) days of the
Acquired Member’s notice, the Other Member delivers to the Acquired Member a counter-notification that it accepts such terms and conditions without reservations or conditions (subject to the other provisions of this Section 12.2, where
applicable). If no Other Member delivers such counter-notification, the Change in Control may proceed without further notice, subject to the other provisions of this Agreement regarding Changes in Control, under terms and conditions no more
favorable to the Acquiror than those set forth in the notice to the Other Members, provided that the Change in Control shall be concluded within one hundred twenty (120) days from the date of the notice. If the Change in Control fails to be
concluded within such period and the direct or indirect owners, as the case may be, of the Acquired Member desire thereafter to proceed with such proposed Change in Control, the Acquired Member shall be required to re-offer the Member Interest
subject to the Change in Control to the Other Members in accordance with the terms and conditions of this Section 12.2. No Other Member 

  

 61 

 
shall have a right under this Section 12.2 to acquire any asset other than a Member Interest, nor shall any Other Member be required to acquire any
asset other than a Member Interest, regardless of whether other properties are subject to the Change in Control. 
 (c) If
more than one Other Member counter-notifies that it intends to acquire the Acquired Member’s Member Interest that is subject to the proposed Change in Control, then each such Other Member shall acquire a proportion of the Acquired Member’s
Member Interest equal to the ratio of its own Member Interest to the total Member Interests of all counter-notifying Other Members, unless the counter-notifying Other Members otherwise agree. 
 (d) The Acquired Member shall include in its notification to the Other Members a statement of the proposed Cash Value of the Member
Interest subject to the proposed Change in Control, and each Other Member shall have a right to acquire such Member Interest for the Cash Value, on the final terms and conditions negotiated with the Acquiror that are relevant to the acquisition of a
Member Interest for cash. No Other Member may acquire the Acquired Member’s Member Interest pursuant to this Section 12.2 unless and until completion of the Change in Control. If for any reason the Change in Control agreement terminates
without completion, the Other Members’ rights to acquire the Member Interest subject to the proposed Change in Control shall also terminate. 
 (e) For purposes of Section 12.2(d), the Cash Value proposed by the Acquired Member in its notice shall be conclusively deemed correct unless any Other Member gives notice to the Acquired Member within thirty
(30) days of receipt of the Acquired Member’s notice stating that it does not agree with the Acquired Member’s statement of the Cash Value, stating the Cash Value it believes is correct, and providing any supporting information that
it believes is helpful. In such event, the Members shall have fifteen (15) days in which to attempt to negotiate an agreement on the applicable Cash Value. If no agreement has been reached by the end of such fifteen (15) day period, any
affected Member shall be entitled to refer the matter to an independent expert as provided in Section 15.3 for determination of the Cash Value, provided that the Acquired Member may elect to terminate the proposed Change in Control, and any
Other Member may elect to revoke its notice of intention to purchase, in either case by notice to the other Members at any time prior to the time that the independent expert is retained pursuant to such provision. The Cash Value to be submitted to
the independent expert by the Acquired Member shall be the Cash Value provided by such Acquired Member in the notice provided to the Other Members pursuant to Section 12.2(d), and the Cash Value to be submitted to the independent expert by each
Other Member shall be the Cash Value provided by such Other Member in the notice provided to the Acquired Member pursuant to this Section 12.2(e). 
  

 62 

 ARTICLE 13 
 ACQUIRED BUSINESS; NEW BUSINESS; ASSET UPGRADES 
 Section 13.1 Acquired Business.

 (a) Subject to Section 13.1(h), if, during the period commencing on the Closing Date and ending on January 1,
2020, a Member or any Affiliate thereof (such Member, whether it or its Affiliate is the acquiror, an “Acquiring Member”) directly or indirectly acquires or agrees to acquire any interest from a non-Affiliate (a “Selling
Party”) in any Midstream Asset (such Midstream Asset, the “Acquired Business”), whether by lease or sublease, purchase, acquisition of shares or other equity interests in an entity directly or indirectly owning the Acquired
Business or otherwise, the Acquiring Member shall provide written notice of such acquisition (an “Offer Notice”) to the Company and the other Members (each such other Member, a “Non-Acquiring Member”), which notice
shall be accompanied by a copy of all instruments or relevant portions of instruments relating to such acquisition. Subject to this Section 13.1, each Non-Acquiring Member shall have the right (but not the obligation) to acquire its Member
Interest share of the Acquired Business (such interest, as may be adjusted pursuant to the following sentence, the “Offered Interest”) upon the same terms and conditions on which the Acquiring Member or its Affiliate acquired the
Acquired Business, subject to assuming its Member Interest share of all duties and obligations with respect to the Acquired Business and paying the Acquiring Member its Member Interest share of any consideration paid by the Acquiring Member or its
Affiliate with respect to such Acquired Business. Each Non-Acquiring Member shall have a period of sixty (60) days after receipt of the Offer Notice to notify the Company and the Acquiring Member in writing whether it elects to acquire its
Offered Interest (the “Option Period”) pursuant to this Section 13.1. Failure to give timely notice of such election shall be deemed an election not to acquire the Offered Interest. 
 (b) If all Non-Acquiring Members elect to acquire an interest in the Acquired Business, the Acquiring Member shall use commercially
reasonable efforts to assign its or its Affiliate’s rights and obligations under the acquisition documents to the Company or other Company Group Member (as applicable), provided that the Acquiring Member shall not be required to pay cash or
otherwise surrender value or incur any liability to the Selling Party to obtain such a right. If the Acquiring Member is unable to assign such rights and obligations under the acquisition documents to the Company or other Company Group Member (as
applicable), then the Acquiring Member and the Company or other Company Group Member (as applicable) shall enter into agreements for the Transfer of the Acquired Business on substantially the same terms as provided in the agreements between the
Selling Party and the Acquiring Member (with such changes as may be necessitated by the differences in parties, the Transfer of only an Offered Interest and, if applicable, the apportionment of rights from a package deal or the payment of Cash Value
in lieu of other consideration), provided that the Acquiring Member shall in no event have liability to the Company or other 

  

 63 

 
Company Group Member (as applicable) for representations, warranties or indemnities with respect to the Acquired Business in excess of amounts that the
Acquiring Member or its Affiliate actually recovers under the third party acquisition agreement and related documents for the same matters. The Company or other Company Group Member (as applicable) and the Acquiring Member shall execute and deliver
the applicable documents and take such other actions as shall be reasonably required to accomplish the Transfer promptly after the Non-Acquiring Members’ exercise of their option. Additionally, in the case of a Cash Transfer, the consideration
payable by the Company or other Company Group Member in respect of the Acquired Business, or in the case of an Acquired Business not acquired pursuant to a Cash Transfer or that is acquired with other properties included in a wider transaction
(package deal), the Cash Value of the Acquired Business, shall be deemed to be added to the applicable Development Work Program and Annual Work Program and Budget, and the Members shall use commercially reasonable efforts to agree to an additional
amendment to such Development Work Program and Annual Work Program and Budget to include those amounts necessary to operate and maintain such Acquired Business during the applicable Calendar Year within thirty (30) days of the acquisition of
such Acquired Business by the Company. 
 (c) If all Non-Acquiring Members do not elect, or fail to make a timely election, to
acquire an interest in the Acquired Business, the Acquiring Member shall be permitted to hold such Acquired Business at its sole risk, cost and expense outside of the Company and the Company Group Members and, except as provided in
Section 13.3, the Non-Acquiring Members shall have no further rights whatsoever with regard to the Acquired Business. 
 (d) If less than all Non-Acquiring Members elect to acquire an interest in the Acquired Business, upon the termination of the Option Period, the Acquiring Member and the Non-Acquiring Members that elect to acquire an interest in the
Acquired Business (the “Electing Members”) shall be permitted to hold such Acquired Business at their sole risk, cost and expense outside of the Company and the Non-Acquiring Members that do not elect, or fail to make a timely
election, to acquire an interest in the Acquired Business and, except as provided in Section 13.3, the Company Group Members shall have no further rights whatsoever with regard to the Acquired Business. The Acquiring Member shall use
commercially reasonable efforts to assign its or its Affiliate’s rights and obligations under the acquisition documents with respect to each Electing Member’s Offered Interest (which shall include such Electing Member’s proportionate
share of the Offered Interest of any Non-Acquiring Member who did not elect, or failed to make a timely election, to acquire such Offered Interest) to each Electing Member, provided that the Acquiring Member shall not be required to pay cash or
otherwise surrender value or incur any liability to the Selling Party to obtain such a right. If the Acquiring Member is unable to assign such rights and obligations under the acquisition documents to the Electing Members, then the Acquiring Member
and the Electing Members shall enter into agreements for the Transfer of the Offered Interests on substantially the same 

  

 64 

 
terms as provided in the agreements between the Selling Party and the Acquiring Member (with such changes as may be necessitated by the differences in
parties, the Transfer of only an Offered Interest and, if applicable, the apportionment of rights from a package deal or the payment of Cash Value in lieu of other consideration), provided that the Acquiring Member shall in no event have liability
to any Electing Member for representations, warranties or indemnities with respect to each Electing Member’s Offered Interest in excess of amounts that the Acquiring Member or its Affiliate actually recovers under the third party acquisition
agreement and related documents for the same matters. The Electing Members and the Acquiring Member shall execute and deliver the applicable documents and take such other actions as shall be reasonably required to accomplish the Transfer promptly
after the Electing Members’ exercise of their option. 
 (e) In the event the Acquired Business is not acquired pursuant
to a Cash Transfer or is acquired with other properties included in a wider transaction (package deal), the Acquiring Member shall include in its notification to the Company and the Non-Acquiring Members a statement of the Cash Value of the Acquired
Business, and each Non-Acquiring Member (or the Company, as applicable) shall have a right to acquire its Offered Interest on the same final terms and conditions as were negotiated with the proposed transferor except that it shall pay the Cash Value
in immediately available funds to the Acquiring Member at the time of its acquisition of the Offered Interest in lieu of the consideration payable in the third party offer, and the terms and conditions of the applicable instruments shall be modified
to reflect the acquisition of the Offered Interest for cash. In the case of a package sale, the Non-Acquiring Members (or the Company, as applicable) may not acquire an interest in the Acquired Business subject to the proposed package sale unless
and until the completion of the wider transaction (as modified by the exclusion of properties subject to preemptive rights or excluded for other reasons) with the package sale transferor. If for any reason the package sale terminates without
completion, the Non-Acquiring Members’ (or the Company’s, as applicable) rights to acquire the Acquired Business subject to the proposed package sale shall also terminate. 
 (f) For purposes of Section 13.1(e), the Cash Value proposed by the Acquiring Member in its notice shall be conclusively deemed
correct unless any Non-Acquiring Member gives notice to the Acquiring Member within thirty (30) days of its receipt of the Offer Notice stating that it does not agree with the Acquiring Member’s statement of the Cash Value, stating the
Cash Value it believes is correct, and providing any supporting information that it believes is helpful. In such event, the Members shall have fifteen (15) days in which to attempt to negotiate an agreement on the applicable Cash Value. If no
agreement has been reached by the end of such fifteen (15) day period, any affected Member shall be entitled to refer the matter to an independent expert as provided in Section 15.3 for determination of the Cash Value, provided that the
Acquiring Member may elect to terminate the proposed acquisition of the Acquired Business, and any Non-Acquiring Member may elect to revoke its notice of 

  

 65 

 
election to acquire its Offered Interest, in either case by notice to the other Members at any time prior to the time that the independent expert is retained
pursuant to such provision. The Cash Value to be submitted to the independent expert by the Acquiring Member shall be the Cash Value provided by such Acquiring Member in the notice provided to the Non-Acquiring Members pursuant to
Section 13.1(a), and the Cash Value to be submitted to the independent expert by each Non-Acquiring Member shall be the Cash Value provided by such Non-Acquiring Member in the notice provided to the Acquiring Member pursuant to this
Section 13.1(f). 
 (g) If for any reason any Acquired Business fails to be acquired within one hundred twenty
(120) days after delivery of the Offer Notice or will be acquired on terms and conditions more favorable to the acquirors than was originally proposed to the Non-Acquiring Members, and any Member thereafter desires to acquire such Acquired
Business, such Member shall be required to re-offer the Acquired Business in accordance with the terms and conditions of this Section 13.1. 
 (h) Notwithstanding anything to the contrary herein, this Section 13.1 shall not be applicable to any of the following: 
 (i) any Acquired Business to the extent consisting of a Transfer between a Member and its Affiliates; 
 (ii) any Acquired Business to the extent consisting of an acquisition of interests in any entity or entities directly or indirectly owning
Midstream Assets if the direct or indirect interest in such Midstream Assets makes up less than twenty-five percent (25%) of the total Cash Value of the interest acquired or to be acquired; or 
 (iii) any Acquired Business to the extent consisting of acquisitions of Midstream Assets that are part of a package sale, which package
includes upstream assets that are subject to Article 9 of the Joint Development Agreement, for which no party to the Joint Development Agreement that is either a Member or an Affiliate of a Member elects to participate in the acquisition of such
upstream assets. 
 (i) Notwithstanding anything to the contrary herein, if any Acquired Business consists of an acquisition
of Midstream Assets that are part of a package sale, which package includes upstream assets that are subject to Article 9 of the Joint Development Agreement, no Member that is (or with an Affiliate that is) party to the Joint Development Agreement
that elected not to participate in the acquisition of such upstream assets associated with such Midstream Assets shall be a Non-Acquiring Member under this Article 13. If there are no Non-Acquiring Members with respect to such Acquired Business,
such Acquired Business shall not be subject to this Section 13.1. 
  

 66 

 (j) Each Member agrees to cause its Affiliates to comply with this Section 13.1.

 Section 13.2 Member Requested Services. 
 (a) If any Member with at least a twenty five percent (25%) Member Interest (a “Requesting Member”) requests
transportation, gathering, treatment, processing or compression services from the Company Group Members for hydrocarbons produced from any well in the East Texas/North Louisiana Area in which such Requesting Member and its Affiliates, or if there is
more than one Requesting Member with respect to such request, such Requesting Members and their Affiliates, hold, in the aggregate, at least a 20% working interest in such well or is the operator of such well (“Member Requested
Services”), the Company shall cause the Company Group Members to provide such services in accordance with the terms of this Section 13.2. Any request for Member Requested Services by Requesting Members shall be made by notice to the
Company and the other Members. Such notice shall identify the Requesting Members and shall provide reasonable detail regarding the Member Requested Services, including the services so requested, the date upon which such Member Requested Services are
requested to commence, the location(s) at which such Member Requested Services are to be provided, the estimated volumes of hydrocarbons requiring such Member Requested Services, the estimated period of time for which such Member Requested Services
will be necessary, and any other information reasonably relevant to such request. The Requesting Member shall provide any other information regarding the Member Requested Services reasonably requested by the Company or any other Member. A Requesting
Member shall have the right but not the obligation to utilize Member Requested Services to service hydrocarbons produced by, attributable to or for the account of Third Parties to the extent that such hydrocarbons were produced from the same well as
the hydrocarbons of such Requesting Member (or its applicable Affiliate) receiving such Member Requested Services. 
 (b) If a
Requesting Member is party to a gathering agreement with the applicable Company Group Member at the time of the request for Member Requested Services, the Member Requested Services shall be provided under such gathering agreement. If a Requesting
Member is not party to a gathering agreement with the applicable Company Group Member(s) addressing Member Requested Services, within thirty (30) days of the delivery of a request for Member Requested Services, the applicable Company Group
Member(s) and the Requesting Members or the applicable Affiliates of such Members shall enter into a gathering agreement in substantially the form attached hereto as Exhibit “H-1” (in the event Talco is to provide some or all of the Member
Requested Services) and/or Exhibit “H-2” (in the event TGG is to provide some or all of the Member Requested Services), regarding the provision of such Member Requested Services (a “Member Gathering Agreement”). To the
extent that the Assets do not have the capacity available to provide the Member Requested Services, the Company shall cause the Company Group Members to undertake such Asset Upgrades or 

  

 67 

 
Asset Expansions as may be necessary to provide all of the Member Requested Services. All such necessary Asset Upgrades and Asset Expansions shall be
undertaken by the Company Group Members as soon as reasonably practicable, and the costs and expenses of implementing such Asset Upgrades and Asset Expansions shall be deemed to be included in the applicable Annual Work Program and Budgets and
Development Work Programs. 
 (c) Unless otherwise agreed to by all of the Members, Member Requested Services will be provided
to a Requesting Member (i) at a rate not greater than that being charged by the Company Group Members to Members, Affiliates of Members or Third Parties for similar services in the East Texas/North Louisiana Area (taking into consideration the
geographic proximity of the services to the existing Assets, the timing and nature of the services being provided and any other considerations normally used by the Company Group Members when determining such rates) at any time during the provision
of such Member Requested Services or, (ii) in the event that no Company Group Member is providing similar services to Members, Affiliates of Members or Third Parties at such time, at a rate not greater than the market rate for such services in
the East Texas/North Louisiana Area (taking into consideration the geographic proximity of the services to the assets of the service provider, the timing and nature of the services being provided and any other considerations normally used by the
Company Group Members when determining such rates). If the Company and the Requesting Member cannot agree on a rate within forty five (45) days of the delivery of the request for such Member Requested Service, such Dispute may be referred by
either the Company or the Requesting Member to an expert in accordance with Section 15.3, and the rate determined by the expert shall be the rate chargeable for such Member Requested Service. 
 (d) Members shall only be entitled to make requests for Member Requested Services until January 1, 2020, provided that the Company
Group Members shall continue to provide all Member Requested Services requested prior to such date for so long as such Member Requested Services may be required, even after such date. 
 (e) Notwithstanding anything to the contrary in this Section 13.2, no Company Group Member shall be obligated to take any action
under this Section 13.2 that would subject any Company Group Member to the Standards of Conduct. 
 Section 13.3 New
Business. 
 (a) Subject to Section 13.3(f), during the period commencing on the Closing Date and ending on
January 1, 2020, prior to commencing any New Business, a Member or any Affiliate thereof (such Member, whether it or its Affiliate is the proposer, a “Proposing Member”) must first propose such New Business by notice to the
Company and the other Members (each such other Member, a “Non-Proposing Member”). For the avoidance of doubt: (i)

  

 68 

 
acquisition of Acquired Business shall not be New Business subject to the terms and conditions of this Section 13.3, but shall instead be subject to the
terms and conditions of Section 13.1; and (ii) Member Requested Services shall not be New Business subject to the terms and conditions of this Section 13.3, but shall instead be subject to the terms and conditions of
Section 13.2. Each Non-Proposing Member shall have the right (but not the obligation) to participate in the New Business pursuant to this Section 13.3. Any such proposal shall contain a reasonably detailed explanation of the proposed New
Business, including a good faith estimate of the costs and expenses of implementing, operating and maintaining such proposed New Business, the revenues to be derived therefrom, the timetable for implementing such proposed New Business (which shall
include an estimated commencement date for such New Business that shall be not more than 12 months from the date such New Business is proposed), and the effect of such proposed New Business on the existing Business and Assets. The Non-Proposing
Members shall have sixty (60) days from receipt of the proposal to decide whether they desire to participate in such proposed New Business (such sixty (60) day period, the “Initial Election Period”) pursuant to this
Section 13.3. Failure of a Non-Proposing Member to give timely notice of its election within the Initial Election Period shall be deemed an election by such Non-Proposing Member not to participate in such proposed New Business. 
 (b) If all Non-Proposing Members elect to participate in any proposed New Business, such New Business shall be conducted by the Company or
other Company Group Member (as applicable) in accordance with this Agreement and such New Business and the costs thereof set forth in the proposal of such New Business shall be deemed to be added to the applicable Development Work Program and Annual
Work Program and Budget. 
 (c) If all Non-Proposing Members elect not to participate in or fail to make a timely election to
participate in any proposed New Business (other than Asset Upgrades), the Proposing Member shall be permitted to conduct such New Business at its sole risk, cost and expense outside of the Company in a manner and on a timeline substantially as set
forth in the Proposing Member’s notice to the Company and the Non-Proposing Members and the Company Group Members shall have no further rights whatsoever with regard to such New Business (other than Asset Upgrades (which are addressed in
Section 13.4), and except any rights of the Company Group Members provided in any of the Article 13 Contracts entered into by the Company Group Members with respect to such New Business pursuant to Section 13.5). 
 (d) If less than all Non-Proposing Members elect to participate in any proposed New Business, upon the termination of the Initial Election
Period, the Proposing Member and the Non-Proposing Members that elected to participate in such New Business (“Interested Non-Proposing Members”) shall be permitted to conduct such New Business (other than Asset Upgrades) at their
sole risk, cost and expense outside of the Company in a manner and on a timeline substantially as set forth in the Proposing Member’s notice to the Company and the Non-Proposing 

  

 69 

 
Members and in accordance with the New Business Annual Work Program and Budget as provided below. The Proposing Member and the Interested Non-Proposing
Members shall use reasonable efforts to agree on an annual work program and budget for the Calendar Year(s) in which such proposed New Business is to be commenced (such annual work program and budget, a “New Business Annual Work Program and
Budget”), within sixty (60) days of the expiration of the Initial Election Period. If the Proposing Member and the Interested Non-Proposing Members have not agreed to the New Business Annual Work Program and Budget(s) within sixty
(60) days of the expiration of the Initial Election Period, the Proposing Member shall prepare and distribute to the Interested Non-Proposing Members proposed final New Business Annual Work Program and Budget(s) for such proposed New Business
within thirty (30) days of the expiration of such sixty (60) day period. Each Interested Non-Proposing Member shall then have sixty (60) days from receipt of the proposed final New Business Annual Work Program and Budget(s) to decide
whether it elects to participate in such proposed New Business in the manner described in such New Business Annual Work Program and Budget(s). Failure of an Interested Non-Proposing Member to give timely notice of its election within such sixty
(60) day period shall be deemed an election not to participate in such proposed New Business. The Proposing Member and each Interested Non-Proposing Member that agreed or approved the New Business Annual Work Program and Budget(s) for such New
Business shall be referred to herein as “Participating Members” with respect to such New Business. Unless the Participating Members otherwise agree, each Participating Member’s interest in the New Business shall be that portion of the
New Business that such Participating Member’s Member Interest bears to the Member Interests of all of the Participating Members. 
 (e) If for any reason (i) any New Business fails to be commenced on the later of (A) one hundred twenty (120) days after the day upon which the New Business was to be commenced as set forth in the
proposal to the Non-Proposing Members or (B) sixty (60) days after the day upon which such New Business is to be commenced in accordance with the New Business Annual Work Program and Budget for such New Business agreed pursuant to
Section 13.3(d) or (ii) the development or operation of such New Business will be materially different than that which was originally set forth in the proposal to the Non-Proposing Members, and any Member thereafter desires to proceed with
such New Business, such Member shall be required to re-propose the New Business in accordance with the terms and conditions of this Section 13.2. 
 (f) Notwithstanding anything to the contrary herein, this Section 13.2 shall not be applicable to any New Business to the extent consisting of a Transfer between a Member and its Affiliates. 
 (g) Each Member agrees to cause its Affiliates to comply with this Section 13.3. 
  

 70 

 (h) For the avoidance of doubt, buying and selling of gas and condensate by a Member or
any Affiliate of a Member may be conducted by such Member or Affiliate of such Member without the obligation to offer the Company and other Members the opportunity to participate in such activity pursuant to this Section 13.3. 
 Section 13.4 Asset Upgrades. Notwithstanding anything to the contrary in Section 13.3, to the extent that any proposed New
Business is a Required Asset Upgrade, the Company Group Members shall participate in such Required Asset Upgrade regardless of whether less than all of the Members elected to have the applicable Company Group Member participate in such New Business
pursuant to Section 13.3. If a proposed New Business is an Asset Upgrade that is not a Required Asset Upgrade, then the Proposing Member with respect to such Asset Upgrade shall have the right to cause the applicable Company Group Member to
conduct such Asset Upgrade (which Company Group Member shall own and be entitled to all benefits associated with such Asset Upgrade), even if less than all of the other Non-Proposing Members elect to have such Company Group Member participate in
such Asset Upgrade, provided that the liabilities, costs and expenses of such Asset Upgrade and any ongoing or increased liabilities, costs and expenses associated therewith shall be solely borne by the Proposing Member and such Non-Proposing
Members and the Company Group Members shall have no obligation to pay any of the liabilities, costs and expenses of such Asset Upgrade or any ongoing or increased liabilities, costs and expenses associated therewith, the Proposing Member and the
Non-Proposing Members participating in any such Asset Upgrade responsible for the liabilities, costs and expenses of such Asset Upgrade shall have the exclusive right to use any increased capacity of the Assets created by such Asset Upgrade, and the
Company shall have no right to commit the use of any such increased capacity without the prior written consent of such Members. In the event that there is any Dispute among the Members regarding whether an Asset Upgrade is or is not a Required Asset
Upgrade, such Dispute may be referred by any Member to an expert in accordance with Section 15.3. Notwithstanding anything to the contrary in this Section 13.4, no Company Group Member shall be obligated to take any action under this
Section 13.4 that would subject any Company Group Member to the Standards of Conduct. 
 Section 13.5 Contract Operating
Agreements; Certain Gathering Agreements. 
 (a) In the event any Member with at least a twenty five percent
(25%) Member Interest desires a Company Group Member to construct or operate any Midstream Asset or New Business held by such Member or its Affiliates outside of the Company Group Members pursuant to Section 13.3, such Member may make such
a request to the Company in writing (which request shall identify the relevant assets to be operated, as well as the specific Midstream Activities, other than any marketing activities, to be provided by the applicable Company Group Member with
respect to such assets), and within thirty (30) days of such request, the applicable Company Group Member(s) and such Member and its applicable Affiliates shall enter into a contract operating agreement regarding such construction or operations
in substantially the form attached hereto as Exhibit “I”. 
  

 71 

 (b) In the event a Member with at least a twenty five percent (25%) Member Interest
or any of its Affiliates desires to tie-in any Midstream Asset (including Acquired Business or New Business in which it or its Affiliates hold an interest) held outside the Company to the Assets and to receive gathering, compression, treatment or
processing services for hydrocarbons transported through such Midstream Assets or related to such New Business, such Member may make such a request to the Company in writing, describing the facilities to be tied in and the location of the tie-in,
and within thirty (30) days of such request, the Company and such Member or the applicable Affiliate shall enter into an interconnect agreement in substantially the form attached hereto as Exhibit “K”, and such Member or the
applicable Affiliate or any third party shipper proposed to receive the services, as applicable, shall enter into a gathering agreement or gathering agreements in substantially the form attached hereto as, if some or all of such services are to be
provided to a Member or an Affiliate of Member by Talco, Exhibit “H-1”, if some or all of such services are to be provided to a Member or an Affiliate of Member by TGG, Exhibit “H-2”, if some or all of such services are to be
provided to a Third Party by Talco, Exhibit “J-1”, and/or if some or all of such services are to be provided to a Third Party by TGG, Exhibit “J-2”, 
 (c) , provided that the Company Group Members shall only have the obligation to provide those services for which capacity exists at the
time of the request, or to the extent the necessary capacity is added as part of the Member’s New Business proposal at or before the time the services are to commence. 
 (d) Notwithstanding anything to the contrary in this Section 13.5, no Company Group Member shall be obligated to take any action
under this Section 13.5 that would subject any Company Group Member to the Standards of Conduct. 
 ARTICLE 14 
 DISSOLUTION; WINDING UP AND TERMINATION 
 Section 14.1 Causes of Dissolution, Winding Up and Termination. 
 (a) The Company shall be
dissolved only upon the occurrence of one or more of the following events: 
 (i) a dissolution of the Company is unanimously
approved by the Management Board pursuant to Section 5.1(b); 
 (ii) the sale or other final disposition by the Company
of all or substantially all of the Assets and the collection of all amounts derived from such sale or disposition (including all amounts payable to the Company under any promissory notes or other evidences of indebtedness); 
 (iii) the entry of a decree of judicial dissolution under the Delaware Act; or 
  

 72 

 (iv) any other event which must cause the dissolution under the Delaware Act. 

(b) For the avoidance of doubt, the bankruptcy or dissolution of any Member or Affiliate of any Member or the occurrence of any other
event that terminates the continued membership of any Member shall not cause the Company to be dissolved or its affairs to be wound up, and upon the occurrence of any such event, the Company shall be continued without dissolution. 
 Section 14.2 Notice of Dissolution. Upon the dissolution of the Company, the Management Board shall promptly notify the Members of
such dissolution. 
 Section 14.3 Liquidation. 
 (a) Liquidating Trustee; Liquidating Distributions. Upon dissolution of the Company, the Management Board (in such capacity, the
“Liquidating Trustee”) shall carry out the winding up of the Company and shall immediately commence to wind up such affairs; provided, however, that a reasonable time shall be allowed for the orderly liquidation of the Assets and
the satisfaction of liabilities to creditors so as to enable the Members to minimize the normal losses attendant upon a liquidation. The proceeds of liquidation shall be applied first to payment of all expenses and debts of the Company and setting
up of such reserves as the Management Board reasonably deems necessary to wind up the Company’s affairs and to provide for any contingent liabilities or obligations of the Company. Any remaining proceeds shall be distributed to the Members in
accordance with their respective Capital Account balances after giving effect to the allocations required by Sections 4.2 and 4.3 and the allocations of Net Profits and Net Losses pursuant to Section 14.3(b). 
 (b) Profits and Losses. The Net Profits and Net Losses arising from liquidation of the Company shall be allocated among the Members
so that, to the maximum extent possible, each Member’s Capital Account balance equals the amount of cash that would be distributed to such Member if liquidating distributions were made in accordance with Section 4.6. 
 Section 14.4 Termination. The Company shall terminate when all of the Assets, after payment of or due provision for all debts,
liabilities and obligations of the Company, shall have been distributed to the Members in the manner provided for in this Article 14 and the Certificate shall have been canceled, or such other documents required under the Delaware Act to be executed
and filed with the Secretary of State of the State of Delaware have been so executed and filed, in the manner required by the Delaware Act. 
 Section 14.5 No Obligation to Restore Capital Accounts. In the event any Member has a deficit balance in any of its Capital Accounts at the time of the Company’s dissolution, it shall not be required to restore such
account to a positive balance or otherwise make any payments to the Company or its creditors or other third parties in respect of such deficiency. 
  

 73 

 Section 14.6 Distributions in Kind. If any Assets are be distributed in kind, such
Assets shall be distributed to the Member(s) as tenants-in-common in the same proportions as such Member(s) would have been entitled to cash distributions if: (a) such Assets had been sold for cash by the Company at the fair market value of
such Assets (taking the Gross Asset Value definition herein and Code Section 7701(g) into account) on the date of distribution; (b) any unrealized income, gain, loss and deduction inherent in such property (that has not been reflected in
the Capital Accounts previously) that would be realized by the Company from such sale were allocated among the Member(s) as Net Profits or Net Losses in accordance with this Agreement; and (c) the cash proceeds were distributed to such
Member(s) in accordance with Section 4.6. The Capital Accounts of such Member(s) shall be increased by the amount of any unrealized income or gain inherent in such property or decreased by the amount of any loss or deduction inherent in such
property that would be allocable to them, and shall be reduced by the fair market value of the assets distributed to them under the preceding sentence. Notwithstanding the foregoing, the Members shall have the right to assign their interest to such
in-kind distribution to any Person. 
 ARTICLE 15 
 GOVERNING LAW; DISPUTE RESOLUTION 
 Section 15.1 Governing Law. THIS AGREEMENT AND
THE LEGAL RELATIONS AMONG THE PARTIES SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER
JURISDICTION. ALL OF THE PARTIES HERETO CONSENT TO THE EXERCISE OF JURISDICTION IN PERSONAM BY THE COURTS OF THE STATE OF TEXAS FOR ANY DISPUTE. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY DISPUTE. 
 Section 15.2 Dispute Resolution. 
 (a) Except for matters that are expressly made subject to the dispute resolution procedures set forth in Section 15.3, any Dispute
among the Parties shall be resolved through final and binding arbitration. 
 (b) The arbitration shall be conducted in
accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”) in effect at the time the arbitration of the Dispute is initiated (the “AAA Rules”). 
  

 74 

 (c) The arbitration shall be conducted by 3 arbitrators and conducted in Dallas, Texas.
Within 30 days of any Party providing notice to the other Parties of a Dispute, if there are two Parties or two groups of Parties to a Dispute, each Party or group of Parties to such Dispute shall appoint one arbitrator, and the 2 arbitrators so
appointed shall select the third and presiding arbitrator within 30 days following appointment of the second party-appointed arbitrator. If either Party or group of Parties fails to appoint an arbitrator within the permitted time period, then the
missing arbitrator(s) shall be selected by the AAA as appointing authority in accordance with the AAA Rules. In the event that there are more than two Parties or groups of Parties to an arbitration, the Parties to the arbitration shall endeavor to
agree on the appointment of the three (3) arbitrators within thirty (30) days of the written request for arbitration. In the event the Parties cannot reach agreement on the selection of three (3) arbitrators within the time permitted,
all arbitrators not yet appointed shall be appointed by the AAA in accordance with the AAA Rules. Any arbitrator appointed by the Party-appointed arbitrators or the AAA shall be a member of the Large, Complex Commercial Case Panel of the AAA or a
member of the Center of Public Resources Panel of Distinguished Neutrals. All arbitrators shall be and remain at all times independent and impartial, and, once appointed, no arbitrator shall have any ex parte communications with any of the Parties
concerning the arbitration or the underlying Dispute other than communications directly concerning the selection of the presiding arbitrator, when applicable. All arbitrators shall be qualified by education, training, or experience to resolve the
Dispute. No arbitrator shall have been an employee or consultant to any Party or any of its Affiliates within the five (5) year period preceding the arbitration, or have any financial interest in the Dispute. 
 (d) All decisions of the arbitral tribunal shall be made by majority vote. The award of the arbitral tribunal shall be final and binding,
subject only to grounds and procedures for vacating or modifying the award under the Federal Arbitration Act. Judgment on the award may be entered and enforced by any court of competent jurisdiction hereunder. 
 (e) Notwithstanding the agreement to arbitrate Disputes in this Section 15.2, any Party may apply to a court for interim measures
pending appointment of the arbitration tribunal, including injunction, attachment, and conservation orders. The Parties agree that seeking and obtaining such court-ordered interim measures shall not waive the right to arbitration. Additionally, the
arbitrators (or in an emergency the presiding arbitrator acting alone in the event one or more of the other arbitrators is unable to be involved in a timely fashion) may grant interim measures including injunctions, attachments, and conservation
orders in appropriate circumstances, which measures may be immediately enforced by court order. Hearings on requests for interim measures may be held in person, by telephone or video conference, or by other means that permit the Parties to present
evidence and arguments. The arbitrators may require any Party to provide appropriate security in connection with such measures. 
  

 75 

 (f) The arbitral tribunal is authorized to award costs, attorneys’ fees, and expert
witness fees and to allocate them among the Parties. The award may include interest, at the Default Interest Rate, from the date of any default, breach, or other accrual of a claim until the arbitral award is paid in full. The arbitrators may not
award indirect, consequential, special or punitive damages. Unless otherwise directed by the arbitral tribunal, each Party shall pay its own expenses in connection with the arbitration. 
 (g) All negotiations, mediation, arbitration, and expert determinations relating to a Dispute (including a settlement resulting from
negotiation or mediation, an arbitral award, documents exchanged or produced during a mediation or arbitration proceeding, and memorials, briefs or other documents prepared for the arbitration) are confidential and may not be disclosed by the
Parties, their respective Affiliates and each of their respective employees, officers, directors, counsel, consultants, and expert witnesses, except to the extent necessary to enforce any settlement agreement, arbitration award, or expert
determination, to enforce other rights of a Party, as required by law or regulation, or for a bona fide business purpose, such as disclosure to accountants, shareholders, or third-party purchasers, provided, however, that breach of this
confidentiality provision shall not void any settlement, expert determination, or award. 
 (h) Any papers, notices, or
process necessary or proper for an arbitration hereunder, or any court action in connection with an arbitration or an award, may be served on a Party in the manner set forth in Section 15.2. 
 Section 15.3 Expert Proceedings. For any decision referred to an expert under this Agreement, the Parties hereby agree that such
decision shall be conducted expeditiously by an expert selected unanimously by the Members. The expert is not an arbitrator of the dispute and shall not be deemed to be acting in an arbitral capacity. The expert shall not (without the written
consent of the Members) be appointed to act as an arbitrator or as adviser to any Member arbitrated pursuant to Section 15.2, provided that nothing in this sentence shall preclude any Member from using the expert as a witness regarding the
proper conduct of the expert procedure. The Member desiring an expert determination shall give the other Members written notice of the request for such determination. If the Members are unable to agree upon an expert within ten (10) days after
receipt of the written notice of request for an expert determination, then, upon the request of any of the Members, the AAA shall appoint such expert. The expert, once appointed, shall have no ex parte communications with the Members concerning the
expert determination or the underlying dispute. All communications between any Member and the expert shall be conducted in writing, with copies sent simultaneously to 
  

 76 

 
the other Members participating in the expert proceeding in the same manner, or at a meeting to which representatives of all Members participating in the
expert proceeding have been invited and of which such Members have been provided at least five (5) Business Days notice. Within thirty (30) days after the expert’s acceptance of its appointment, the Members shall provide the expert
with a report containing their proposal for the resolution of the matter and the reasons therefor, accompanied by all relevant supporting information and data. Within sixty (60) days of receipt of the above-described materials and after receipt
of additional information or data as may be required by the expert, the expert shall select the proposal which it finds more consistent with the terms of this Agreement. The expert may not propose alternate positions or award damages, interest or
penalties to any Members with respect to any matter. The expert’s decision shall be final and binding on the Members. Any Member that fails or refuses to honor the decision of an expert shall be in default under this Agreement. 
 ARTICLE 16 
 MISCELLANEOUS

 Section 16.1 Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart
hereof shall be deemed to be an original instrument, but all of such counterparts shall constitute for all purposes one agreement. Any signature hereto delivered by a Party by facsimile transmission shall be deemed an original signature hereto.

 Section 16.2 Notices. All notices and communications required or permitted to be given hereunder (excluding notices
sent to Board Members pursuant to Article 5, which notices shall be governed by Section 5.3(o) hereof) shall be sufficient in all respects if given in writing and delivered personally, or sent by bonded overnight courier, or mailed by U.S.
Express Mail or by certified or registered United States Mail with all postage fully prepaid, or sent by telex or facsimile transmission (provided any such telex or facsimile transmission is confirmed either orally or by written confirmation),
addressed to the appropriate Party at the address for such Party shown below or at such other address as such Party shall have theretofore designated by written notice delivered to the Party giving such notice: 
  

							
		 	If to the Company:	  	TGGT Holdings, LLC	  	
		 		  	12377 Merit Drive, Suite 1700	  	
		 		  	Dallas, Texas 75251	  	
		 		  	Attention: President and General Manager	  	
		 		  	Telephone:
                                         
       	  	
		 		  	Facsimile:                                      
             	  	
				
		 	If to BG:	  	BG US Gathering Company, LLC	  	
		 		  	5444 Westheimer, Suite 1200	  	
		 		  	Houston, Texas 77056	  	
		 		  	Attention: Jon Harris	  	
		 		  	Telephone: (713) 599-4000	  	
		 		  	Fax: (713) 599-4250	  	

  

 77 

							
		 		  	with a copy to:	  	
				
		 		  	BG US Gathering Company, LLC	  	
		 		  	5444 Westheimer, Suite 1200	  	
		 		  	Houston, Texas 77056	  	
		 		  	Attention: Bill Way	  	
		 		  	Telephone: (713) 599-4000	  	
		 		  	Fax: (713) 599-4250	  	
				
		 		  	with a copy to:	  	
				
		 		  	BG US Gathering Company, LLC	  	
		 		  	5444 Westheimer, Suite 1200	  	
		 		  	Houston, Texas 77056	  	
		 		  	Attention: Chris Migura, Principal Counsel	  	
		 		  	Telephone: (713) 599-4000	  	
		 		  	Fax: (713) 599-4250	  	
				
		 	If to EOC:	  	EXCO Operating Company, LP	  	
		 		  	12377 Merit Drive, Suite 1700	  	
		 		  	Dallas, Texas 75251	  	
		 		  	Attention: Harold Hickey, Vice President and Chief	  	
		 		  	Operating Officer	  	
		 		  	Telephone: (214) 368-2084	  	
		 		  	Fax: (214) 368-8754	  	
		 		  	E-mail: hhickey@excoresources.com	  	
				
		 		  	with a copy to:	  	
				
		 		  	EXCO Operating Company, LP	  	
		 		  	12377 Merit Drive, Suite 1700	  	
		 		  	Dallas, Texas 75251	  	
		 		  	Attention: William L. Boeing, General Counsel	  	
		 		  	Telephone: (214) 368-2084	  	
		 		  	Facsimile: (214) 706-3409	  	

 Any notice given in accordance herewith shall be deemed to have been given when delivered to the addressee in
person, or by courier, or transmitted by facsimile transmission during normal business hours, or upon actual receipt by the addressee after such notice has either been delivered to an overnight courier or deposited in the United States Mail, as the
case may be. The Parties may change the address, telephone numbers, and facsimile numbers to which such communications are to be addressed by giving written notice to the other Parties in the manner provided in this Section 16.2. 
 Section 16.3 Expenses. Except as otherwise specifically provided, all fees, costs and expenses incurred by the Parties in negotiating
this Agreement shall be paid by the Party incurring the same, including legal and accounting fees, costs and expenses. 
  

 78 

 Section 16.4 Waivers; Rights Cumulative. Any of the terms, covenants, or conditions
hereof may be waived only by a written instrument executed by or on behalf of the Party waiving compliance. No course of dealing on the part of any Party, or its respective officers, employees, agents, or representatives, nor any failure by a Party
to exercise any of its rights under this Agreement shall operate as a waiver thereof or affect in any way the right of such Party at a later time to enforce the performance of such provision. No waiver by any Party of any condition, or any breach of
any term or covenant contained in this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or of any breach of any other
term or covenant. The rights of the Parties under this Agreement shall be cumulative, and the exercise or partial exercise of any such right shall not preclude the exercise of any other right. 
 Section 16.5 Entire Agreement; Conflicts. THIS AGREEMENT, THE EXHIBITS HERETO, THE ASSOCIATED AGREEMENTS AND THE CONTRIBUTION
AGREEMENT COLLECTIVELY CONSTITUTE THE ENTIRE AGREEMENT AMONG THE PARTIES PERTAINING TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ALL PRIOR AGREEMENTS, UNDERSTANDINGS, NEGOTIATIONS, AND DISCUSSIONS, WHETHER ORAL OR WRITTEN, OF THE PARTIES PERTAINING TO
THE SUBJECT MATTER OF THIS AGREEMENT. THERE ARE NO WARRANTIES, REPRESENTATIONS, OR OTHER AGREEMENTS AMONG THE PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, AND NO PARTY SHALL BE BOUND BY
OR LIABLE FOR ANY ALLEGED REPRESENTATION, PROMISE, INDUCEMENT, OR STATEMENTS OF INTENTION NOT SO SET FORTH. IN THE EVENT OF A CONFLICT BETWEEN: (A) THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE TERMS AND PROVISIONS OF ANY EXHIBIT HERETO;
OR (B) THE TERMS AND PROVISIONS OF THIS AGREEMENT AND THE TERMS AND PROVISIONS OF ANY ASSOCIATED AGREEMENT, THE TERMS AND PROVISIONS OF THIS AGREEMENT SHALL GOVERN AND CONTROL, PROVIDED, HOWEVER, THAT THE INCLUSION IN ANY OF THE EXHIBITS HERETO
OR ANY ASSOCIATED AGREEMENT OF TERMS AND PROVISIONS NOT ADDRESSED IN THIS AGREEMENT SHALL NOT BE DEEMED A CONFLICT, AND ALL SUCH ADDITIONAL PROVISIONS SHALL BE GIVEN FULL FORCE AND EFFECT, SUBJECT TO THE PROVISIONS OF THIS SECTION 16.5. 

Section 16.6 Amendment. This Agreement may be amended only by an instrument in writing executed by all of the Parties and expressly
identified as an amendment or modification. 
 Section 16.7 Parties in Interest. Except for Section 7.6, nothing in
this Agreement shall entitle any Person other than the Parties to any claim, cause of action, remedy or right of any kind. 
  

 79 

 Section 16.8 Successors and Permitted Assigns. This Agreement shall be binding upon
and inure to the benefit of the Parties and their successors and permitted assigns. 
 Section 16.9 Confidentiality.

 (a) The Parties agree that all information related to Business shall be considered confidential, shall be kept confidential
and shall not be disclosed during the term of this Agreement to any Person that is not a Party, except: 
 (i) to an Affiliate
of a Member; 
 (ii) to the extent such information is required to be furnished in compliance with applicable Law, or pursuant
to any legal proceedings or because of any order of any Governmental Authority binding upon a Party; 
 (iii) to prospective
or actual attorneys engaged by any Party where disclosure of such information is essential to such attorney’s work for such Party; 
 (iv) to prospective or actual contractors and consultants engaged by any Party where disclosure of such information is essential to such contractor’s or consultant’s work for such Party; 
 (v) to a bona fide prospective transferee of a Member’s Member Interest to the extent appropriate in order to allow the assessment of
such Member Interest (including a Person with whom a Member and/or its Affiliates are conducting bona fide negotiations directed toward a merger, consolidation or the sale of a majority of its or an Affiliate’s shares); 
 (vi) to a bank or other financial institution to the extent appropriate to a Party arranging for funding; 
 (vii) to the extent such information must be disclosed pursuant to any rules or requirements of any stock exchange having jurisdiction
over such Party or its Affiliates; provided that if any Party desires to disclose information in an annual or periodic report to its or its Affiliates’ shareholders and to the public and such disclosure is not required pursuant to any rules or
requirements of any stock exchange, then such Party shall comply with Section 16.10; 
 (viii) to its respective
employees, subject to each Party taking customary precautions to ensure such information is kept confidential; and 
 (ix) any
information which, through no fault of a Party, becomes a part of the public domain. 
  

 80 

 (b) Disclosure as pursuant to Sections 16.9(a)(iv), (v) and (vi) shall not be
made unless prior to such disclosure the disclosing Party has obtained a written undertaking from the recipient to keep the information strictly confidential for the term of this Agreement and to use the information for the sole purpose described in
Sections 16.9(a)(iv), (v) and (vi), whichever is applicable, with respect to the disclosing Party. 
 Section 16.10
Publicity. 
 (a) Without reasonable prior notice to the other Parties, no Party will issue, or permit any agent or
Affiliate of it to issue, any press releases or otherwise make, or cause any agent or Affiliate of it to make, any public statements with respect to this Agreement, the Associated Agreements or the activities contemplated hereby or thereby, except
where such release or statement is deemed in good faith by the releasing Party to be required by Law or under the rules and regulations of a recognized stock exchange on which shares of such Party or any of its Affiliates are listed, and in any
case, prior to making any such press release or public statement, the releasing Party shall provide a copy of the press release or public statement to the other Parties. 
 (b) Notwithstanding anything to the contrary in Section 16.9 or Section 16.10(a), any Member or Affiliate of a Member may
disclose information regarding Business in investor presentations, industry conference presentations or similar disclosures, provided that not less than twenty four (24) hours prior to so disclosing any such information, the releasing Member
shall provide a copy of the presentation or other disclosure document containing such information to the other Parties. 
 (c)
Notwithstanding anything to the contrary in Section 16.9 or Section 16.10(a), in the event of any emergency endangering property, lives or the environment, the Company may issue such press releases or public announcements as it deems
necessary in light of the circumstances and shall promptly provide each Member with a copy of any such press release or announcement. 
 Section 16.11 Preparation of Agreement. All of the Company, the Members and their respective counsels participated in the preparation of this Agreement. In the event of any ambiguity in this Agreement, no presumption
shall arise based on the identity of the draftsman of this Agreement. 
 Section 16.12 Conduct of the Parties; Business
Principles. 
 (a) Each Party warrants that it and its Affiliates have not made, offered, or authorized and agrees
that it will not make, offer, or authorize with respect to the matters which are the subject of this Agreement, any payment, gift, promise or other advantage, whether directly or through any other Person, to or for the use or benefit of any public
official (being any person holding a 

  

 81 

 
legislative, administrative or judicial office, including any person employed by or acting on behalf of a public agency, a public enterprise or public
international organization) or any political party or political party official or candidate for office, where such payment, gift, promise or advantage would violate any applicable Law. 
 (b) Prior to the Closing Date, each Member provided the others with a copy of its business principles governing its general conduct of
operations and business dealings, and each Member acknowledges receipt and awareness of the other Members’ business principles. Within one hundred twenty (120) days from the Closing Date, the Members agree to use reasonable efforts to meet
and agree a common set of general principles for the Company governing the conduct of the Business. 
 Section 16.13
Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any adverse manner to any Party. Upon such determination that any term or other provision is invalid, illegal, or incapable
of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible. 
 Section 16.14 Non-Compensatory Damages. None of the Parties shall be entitled to
recover from any other Party, or such Party’s respective Affiliates, any indirect, consequential, punitive or exemplary damages or damages for lost profits of any kind arising under or in connection with this Agreement, the Associated
Agreements or the transactions contemplated hereby or thereby, except to the extent any such Party suffers such damages (including costs of defense and reasonable attorney’s fees incurred in connection with defending of such damages) to a third
party, which damages (including costs of defense and reasonable attorney’s fees incurred in connection with defending against such damages) shall not be excluded by this provision as to recovery hereunder. Subject to the preceding sentence,
each Party, on behalf of itself and each of its Affiliates, waives any right to recover punitive, special, exemplary and consequential damages, including damages for lost profits, arising in connection with or with respect to this Agreement, the
Associated Agreements or the transactions contemplated hereby or thereby. 
 Section 16.15 Waiver of Partition of Company
Property. Each Member hereby irrevocably waives during the term of the Company any right that it may have to maintain any action for partition with respect to any Assets. 
 Section 16.16 Interpretation. All references in this Agreement to Exhibits, Appendices, Articles, Sections, subsections and other
subdivisions refer to the corresponding Exhibits, Appendices, Articles, Sections, subsections and other subdivisions of or to this Agreement unless expressly provided otherwise. Titles 

  

 82 

 
appearing at the beginning of any Articles, Sections, subsections and other subdivisions of this Agreement are for convenience only, do not constitute any
part of this Agreement, and shall be disregarded in construing the language hereof. 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 Article, Section, subsection or other subdivision unless expressly so limited. The words “this Article,” “this Section,” and “this subsection,” and words of similar
import, refer only to Article, Section or subsection hereof in which such words occur. The word “including” (in its various forms) means including without limitation. All references to “$” or “dollars” shall be deemed
references to United States dollars. Each accounting term not defined herein will have the meaning given to it under GAAP as interpreted as of the date of this Agreement. 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. Appendices and Exhibits referred to
herein are attached to and by this reference incorporated herein for all purposes. References to any Law or agreement shall mean such Law or agreement as it may be amended from time to time. 
 Section 16.17 Intellectual Property. All intellectual property rights in all designs, models, drawings, prints, samples,
transparencies, specifications, reports, manuscripts, working notes, documentation, manuals, photographs, negatives, tapes, discs, software, computer files or any other similar items and any inventions (collectively, “IP”) of the
Company Group Members, including those created by or with the assistance of a secondee or which are wholly or in part based on or derived from information arising from the performance of services by a secondee, shall remain vested exclusively in the
Company Group Members. The Company shall disclose to the Members any such IP upon request, and the Company for itself and on behalf of the other Company Group Members hereby grants a non-exclusive, irrevocable, royalty free license to the Members
and their Affiliates to use, copy or modify such IP. 
  

 83 

 IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives on
and as of the Closing Date. 
  

			
	TGGT HOLDINGS, LLC
		
	By:	 	 /s/ MARK HUTCHISON

	Name:	 	Mark Hutchison
	Title:	 	Vice President of Engineering and Construction
	
	BG US GATHERING COMPANY, LLC
		
	By:	 	 /s/ ELIZABETH SPOMER

	Name:	 	Elizabeth Spomer
	Title:	 	Vice President
	
	EXCO OPERATING COMPANY, LP
		
	By:	 	 /s/ R. L. HODGES

	Name:	 	R. L. Hodges
	Title:	 	Vice President

  

 84 

 ATTACHED TO AND MADE PART OF THE AMENDED AND 
RESTATED LIMITED LIABILITY COMPANY 
 AGREEMENT OF TGGT HOLDINGS, LLC 
 APPENDIX I

 DEFINITIONS 
 “AAA”
has the meaning set forth in Section 15.2(b). 
 “AAA Rules” has the meaning set forth in Section 15.2(b). 
 “Acquired Business” has the meaning set forth in Section 13.1(a). 
 “Acquired Member” has the meaning set forth in Section 12.2(a). 
 “Acquiring Member”
has the meaning set forth in Section 13.1(a). 
 “Acquiror” has the meaning set forth in Section 12.2(a). 
 “Adjusted Capital Account Balance” means with respect to any Member, the balance in such Member’s Capital Account as of the end of the relevant
Fiscal Year, after giving effect to the following adjustments: 
 (a) credit to such Capital Account any amounts which such
Member is obligated to restore, because of a promissory note to the Company or otherwise pursuant to Section 1.704-1(b)(2)(ii)(c) of the Treasury Regulations, or is deemed to be obligated to restore pursuant to the penultimate sentence in each
of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Treasury Regulations, after taking into account thereunder any changes during such year in “partnership minimum gain” (within the meaning of Section 1.704-2(b) of the Treasury
Regulations) and in “partner nonrecourse debt minimum gain” (within the meaning of Section 1.704-2(i) of the Treasury Regulations); and 
 (b) debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4); 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations. 
 This definition of Adjusted Capital Account Balance is intended to comply with the “alternative economic effect” test of Section 1.704-1(b)(2)(ii)(d) of
the Treasury Regulations and shall be interpreted consistently therewith. 
 “Affected Member” means any non-defaulting Member in connection
with a situation where a Defaulting Member has failed to pay an amount owed under the terms of this Agreement at the time in question. 
 “Affiliate” means, with respect to any Person, a Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person. 
 “Affiliate Contract” means any contract between a Company Group Member and any Member or Affiliate of a Member. 
  

 Appendix I-1 

 “Affiliated Member Group” means any group of Members that are Affiliates of each other. 
 “Agreement” has the meaning set forth in the Preamble. 
 “Annual Financial Statements” has the meaning set forth in Section 8.4(a). 
 “Annual Work Program and
Budget” means, for any Calendar Year, the work program and budget for Business during such Calendar Year. 
 “Article 13 Contract”
means any contract entered into by any Company Group Member pursuant to Section 13.2(b), 13.5(a) or 13.5(b). 
 “Asset Expansion” means
the construction, installation and commissioning of any new Asset. 
 “Asset Upgrade” means, with respect to any physical Asset, any
physical enhancement or series of physical enhancements, including any such physical enhancements that would increase the throughput capacity (including by adding additional compression), of or to any existing portion of such Asset. 
 “Assets” means the Company Group Members’ right, title and interest from time to time in all items of economic value owned or leased by any of the
Company Group Members, including real property, equipment and other tangible personal property, and contracts, data and records, and other intangible personal property. 
 “Associated Agreements” means, collectively all agreements entered into by all Members and any third parties in furtherance of the conduct of the Business, and “Associated Agreement”
means any of them. 
 “Assumed Tax Liability” has the meaning set forth in Section 4.5(d)(i). 
 “Assumption Agreement” has the meaning set forth in Section 10.2(a). 
 “Available Cash” means, as of any time, all cash and cash equivalents of the Company on hand as of such time less the amount of cash reserves equal to the forthcoming three (3) full Calendar
Months of expenditures as authorized in that portion of the then-current approved Annual Work Program and Budget, provided that, if as of any time, there is not an approved Annual Work Program and Budget, “Available Cash” means the
amount of cash reserves equal to the expenditures authorized in the most recently approved Annual Work Program and Budget for the last three (3) full Calendar Months of such Annual Work Program and Budget. 
 “Bankruptcy” of a Person means: (a) the filing by a Person of a voluntary petition seeking liquidation, reorganization, arrangement or
readjustment, in any form, of its debts under the U.S. Bankruptcy Code (or corresponding provisions of future Laws) or any other insolvency Law, or a Person’s filing an answer consenting to or acquiescing in any 

  

 Appendix I-2 

 
such petition; (b) the making by a Person of any assignment for the benefit of its creditors or the admission by a Person of its inability to pay its
debts as they mature; or (c) the expiration of sixty (60) days after the filing of an involuntary petition under the U.S. Bankruptcy Code (or corresponding provisions of future Laws) seeking an application for the appointment of a receiver
for the assets of a Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other insolvency Law, unless the same shall have been vacated, set aside or stayed within such sixty
(60) day period. 
 “BG” means BG US Gathering Company, LLC, a limited liability company organized and existing under the Laws of
Delaware. 
 “BG Affiliate Group” means the Affiliated Member Group that includes BG or any Affiliate of BG. 
 “Board Member” has the meaning set forth in Section 5.1(a). 
 “Business” means Midstream Activities conducted by any of the Company Group Members. 
 “Business Day” means a day
(other than a Saturday or Sunday) on which commercial banks in Texas are generally open for business, provided that if Business Days are used to calculate periods in which a Member must make a payment hereunder, “Business Day” means
a day (other than a Saturday or Sunday) on which commercial banks in Texas and London are generally open for business. 
 “Calendar Month”
means any of the months of the Gregorian calendar. 
 “Calendar Quarter” means a period of three (3) consecutive Calendar Months
commencing on the first day of January, the first day of April, the first day of July and the first day of October in any Calendar Year. 
 “Calendar
Year” means a period of twelve (12) consecutive Calendar Months commencing on the first day of January and ending on the following 31st day of December, according to the Gregorian calendar. 
 “Call Notice” means any call notice issued by the President and General Manager to fund additional contributions required pursuant to Section 3.2.

 “Capital Account” has the meaning set forth in Section 3.8(a). 
 “Cash Transfer” means any Transfer of Member Interest where the sole consideration (other than the assumption of obligations relating to the transferred Member Interest) takes the form of cash, cash
equivalents, promissory notes or retained interests (such as production payments) in the Member Interest being transferred. 
  

 Appendix I-3 

 “Cash Value” means the market value (expressed in U.S. dollars) of all or a portion of a Member Interest
subject to the proposed Transfer or Change in Control, based upon the amount that a willing buyer would pay a willing seller in an arm’s length transaction. 
 “Certificate” has the meaning set forth in the Recitals. 
 “Change in Control” means any direct or indirect
change in Control of a Member (whether through merger, sale of shares or other equity interests, or otherwise), through a single transaction or series of related transactions, from one or more transferors to one or more transferees; provided,
however, that for purposes hereof, a “Change in Control” shall not include a change in Control of a Member: (a) resulting from a management-lead buyout of the public share ownership of such Member and conversion of such Member
to a privately-held company, (b) resulting in ongoing control by a Wholly-Owned Affiliate that is wholly-owned by the ultimate parent company of such Member, or (c) created by a change in Control of the ultimate parent company of such
Member. For the avoidance of doubt, as of the Closing Date, the ultimate parent company of BG is BG Group plc, a public limited company organized and existing under the Laws of England and Wales, and the ultimate parent company of EOC is EXCO
Resources, Inc., a corporation organized and existing under the Laws of Texas. 
 “Claims” mean any and all claims, causes of actions,
payments, charges, judgments, assessments, liabilities, losses, damages, penalties, fines or costs and expenses, including any reasonable fees of attorneys, experts, consultants, accountants and other representatives and legal or other expenses
incurred in connection therewith and including liabilities, costs, losses and damages for personal injury, illness or death, property damage, contract claims, torts or otherwise. 
 “Closing Date” has the meaning set forth in the Preamble. 
 “Code” means the Internal
Revenue Code of 1986, as amended, and any successor statute. 
 “Company” has the meaning set forth in the Preamble. 
 “Company Group Commercial Contract” means any contract entered into by a Company Group Member pursuant to which a Company Group Member will provide
transportation, gathering, treatment, processing or compression services to a Third Party, or any contract pursuant to which a Company Group Member will purchase or sell gas, liquids or other hydrocarbons. For the avoidance of doubt, no Article 13
Contract shall be a Company Group Commercial Contract. 
 “Company Group Contract” means any contract entered into by a Company Group Member
or to which a Company Group Member is a party. 
 “Company Group Members” means, together, the Company and all Subsidiaries, and
“Company Group Member” means any of them. 
  

 Appendix I-4 

 “Company Group O&M Contract” means any contract entered into by a Company Group Member pursuant to
which services, supplies, materials or equipment will be provided to a Company Group Member by a contractor, supplier or other vendor, provided that the Services Agreements shall not be Company Group O&M Contracts. 
 “Conflicted Member” has the meaning set forth in Section 5.3(b). 
 “Contribution Agreement” has the meaning set forth in the Recitals. 
 “Control” and its
derivatives with respect to any Person means the possession, directly or indirectly, of the power to exercise or determine the voting of more than fifty percent (50%) of the voting rights in a corporation, and, in the case of any other type of
entity, the right to exercise or determine the voting of more than fifty percent (50%) of the equity interests having voting rights, or otherwise to direct or cause the direction of the management and policies of such Person, whether by
contract or otherwise. 
 “Covered Person” means, in each case, whether or not a Person continues to have the applicable status referred to
in the following list: a Member; any Affiliate of a Member; a Board Member; any officer of any Company Group Member, whether or not such officer is an employee of any Company Group Member; any officer, director, member, manager, stockholder,
partner, employee, representative or agent of any Member, or of any of their respective Affiliates; any employee or agent of any Company Group Member or its Affiliates; and any Tax Member. 
 “Credit Facility Encumbrance” means Encumbrances created pursuant to any material borrowing arrangement entered into by any Member and/or its Affiliates
with a Third Party that is not an Affiliate of such Member or its Affiliates, as such arrangement may be amended, modified, supplemented or replaced from time to time. 
 “Credit Facility Foreclosure” means any foreclosure upon the interests of a Member and its Affiliates in the Member Interests pursuant to a Credit Facility Encumbrance of such Member and any related
security agreements. 
 “Credit Facility Lender” means any Third Party of which the Company and the other Members have been notified in
writing by either a Member or such Third Party that such Third Party has rights with respect to a Member’s Member Interest under any Credit Facility Encumbrance. 
 “Default Interest Rate” means the three month London Inter-Bank Offer Rate (as published in the “Money Rates” table of the Wall Street Journal, eastern edition) plus an additional
five percentage points (5.00%) applicable on the first Business Day prior to the due date of payment and thereafter on the first Business Day of each succeeding Calendar Month (or, if such rate is contrary to any applicable usury Law, the
maximum rate permitted by such applicable Law). 
 “Default Notice” has the meaning set forth in Section 3.5(a). 
  

 Appendix I-5 

 “Default Period” has the meaning set forth in Section 3.5(b). 
 “Defaulting Member” has the meaning set forth in Section 3.5(a). 
 “Delaware Act” means the Delaware Limited Liability Company Act, Del. Code Ann. Tit. 6, §§18-101, et. seq. 
 “Depreciation” means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an Asset for such year or
other period, except that if the Gross Asset Value of an Asset differs from its adjusted basis for federal income tax purposes at the beginning of such year or other period, except as required by Section 1.704-3(d) of the Treasury Regulations,
Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for such year or other period bears to such beginning adjusted tax
basis; provided, however, that if the federal income tax depreciation, amortization, or other cost recovery deduction for such year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable
method selected by the Tax Member. Notwithstanding the foregoing, if the Company uses the remedial method pursuant to Section 1.704-3(d) of the Treasury Regulations with respect to one or more of the Company Group Member’s Assets,
Depreciation with respect to such Assets shall not be determined in accordance with the preceding sentence of this definition, but shall instead be determined in a manner consistent with tax capital accounting principles and consistent with the
treatment of such assets under the remedial method, as determined by the Tax Member in consultation with the Company’s tax advisors. 
 “Development Work Program” has the meaning set forth in Section 6.1(a). 
 “Dispute” means any dispute,
controversy, or claim (of any and every kind or type, whether based on contract, tort, statute, regulation, or otherwise) arising out of, relating to, or connected with this Agreement, or the transactions contemplated hereby, including any dispute,
controversy or claim concerning the existence, validity, interpretation, performance, breach, or termination of this Agreement or the relationship of the Parties arising out of this Agreement or the transactions contemplated hereby. 
 “East Texas/North Louisiana Area” means the lands (and subsurface) included in those Texas counties and Louisiana parishes identified in Exhibit
“K” attached hereto, provided that the East Texas/North Louisiana Area shall not include those areas included within the description of the excluded fields on Exhibit “K” attached hereto. 
 “Electing Members” has the meaning set forth in Section 13.1(d). 
 “Emergency Expenditures” means expenditures which are reasonably necessary to be expended in order to mitigate or remedy the endangerment of the health or safety of any Person or the environment.

  

 Appendix I-6 

 “Encumbrance” means a mortgage, lien, pledge, charge or other encumbrance. 
 “Encumber” and other derivatives shall be construed accordingly. 
 “Enforcement Activities” has the meaning set forth in Section 5.3(b). 
 “EOC” means EXCO Operating Company,
LP, a limited partnership organized and existing under the Laws of Delaware. 
 “EOC Affiliate Group” means the Affiliated Member Group
which includes EOC or any Affiliate of EOC. 
 “FERC” has the meaning set forth in Section 1.10(a)(ix). 
 “Final Cash Amount” has the meaning provided in the Contribution Agreement. 
 “Fiscal Year” means the Company’s taxable year. 
 “GAAP” means United States
generally accepted accounting principles. 
 “Governmental Authority” means any federal, state, local, municipal, tribal or other
government; any governmental, regulatory or administrative agency, commission, body or other authority exercising or entitle to exercise any administrative, executive, judicial, legislative, regulatory or taxing authority or power; and any court or
governmental tribunal, including any tribal authority having or asserting jurisdiction. 
 “Gross Asset Value” means with respect to any
Asset, the Asset’s adjusted basis for federal income tax purposes, except as follows: 
 (a) the initial Gross Asset
Value of any non-cash Asset contributed by a Member to the Company shall be the gross fair market value of such Asset on the date of contribution, as mutually agreed by the Members; 
 (b) the Gross Asset Values of all Assets shall be adjusted to equal their respective gross fair market values (taking into account
Section 7701(g) of the Code), as reasonably determined by the Tax Member at each of the following times: 
 (i) the
acquisition of an additional Member Interest in the Company by any new or existing Member in connection with a contribution of cash or property other than a de minimis amount (within the meaning of Section 1.704-1(b)(2)(iv)(f) of the
Treasury Regulations); 
 (ii) the distribution by the Company to a Member of more than a de minimis amount of Company
Group Member property as consideration for a Member Interest in the Company (within the meaning of Section 1.704-1(b)(2)(iv)(f) of the Treasury Regulations); 
  

 Appendix I-7 

 (iii) the grant of a Member Interest in the Company (other than a de minimis
Member Interest) as consideration for the provision of services to or for the benefit of the Company Group Members by any new or existing Member (within the meaning of Section 1.704-1(b)(2)(iv)(f) of the Treasury Regulations); and 

(iv) the liquidation of the Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations; 
 provided, however, that the adjustments pursuant to clauses (i), (ii) and (iii) above shall be made only if the Tax Member reasonably determines
that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company; 
 (c) the Gross Asset Value of any non-cash Asset distributed to any Member shall be the gross fair market value of such non-cash Asset on the date of distribution as reasonably determined by the Tax Member; 
 (d) the Gross Asset Values of Assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such Assets
pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining the Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations, and subsection
(g) under the definition of Net Profits and Net Losses below; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subsection to the extent that the Tax Member reasonably determines that an adjustment pursuant to
subsection (b) of this definition is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subsection; and 
 (e) if the Gross Asset Value of an Asset has been determined or adjusted pursuant to clause (a), (b) or (d) of this definition,
such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Net Profits and Net Losses. 
 “Group” has the meaning set forth in Section 5.1(a). 
 “HSSE” means Health, Safety,
Security and Environmental. 
 “HSSE Management System” has the meaning set forth in Section 5.11(d). 
 “HSSE Plan” has the meaning set forth in Section 5.11(c). 
 “HSSE Principles” has the meaning set forth in Section 5.11(b). 
 “Interest Reduction Notice” has the
meaning set forth in Section 3.7(a). 
  

 Appendix I-8 

 “Interest Reduction Notice Delivery Date” has the meaning set forth in Section 3.7(a). 

“Interested Non-Proposing Members” has the meaning set forth in Section 13.2(d). 
 “Initial Contributions” has the meaning set forth in Section 3.1. 
 “Initial Election
Period” has the meaning set forth in Section 13.2(a). 
 “Initial Three Year Period” has the meaning set forth in
Section 11.1. 
 “IP” has the meaning set forth in Section 16.17. 
 “Joint Development Agreement” means that certain Joint Development Agreement by and among BG US Production Company, LLC, EOC and EXCO Production Company, LP, dated as of the Closing Date. 

“Laws” means any constitution, decree, resolution, law, statute, act, ordinance, rule, directive, order, treaty, code or regulation and any
injunction or final non-appealable judgment or any interpretation of the foregoing, as enacted, issued or promulgated by any Governmental Authority. 
 “Liquidating Trustee” has the meaning set forth in Section 14.3(a). 
 “Management Board” means the board
created pursuant to Section 5.1(a). 
 “Member Indemnitor” has the meaning set forth in Section 7.6. 
 “Member Interest” means the entire right, title and interest of a Member in the Company at any particular time to any and all voting rights,
distributions, and other benefits to which such Member may be entitled as provided in this Agreement, together with the obligations of such Member to comply with all the terms and provisions of this Agreement. Such interest shall be expressed as a
percentage. 
 “Member Loan” means a loan made by a Member to the Company pursuant to Section 3.4. 
 “Member Gathering Agreement” has the meaning set forth in Section 13.2(b). 
 “Member Requested Services” has the meaning set forth in Section 13.2(a). 
 “Midstream
Activities” means the ownership, operation, maintenance, expansion, construction, commissioning and decommissioning of, and acquisition of, gathering systems, pipelines and treatment and processing facilities in the East Texas/North
Louisiana Area, marketing of capacity on such gathering systems, buying and selling gas and condensate in connection therewith, and the provision of compression services in connection therewith. 
  

 Appendix I-9 

 “Midstream Asset” means any gathering system, pipeline, processing or treatment facility, or related
asset located in the East Texas/North Louisiana Area. 
 “Monthly Financial Reports” has the meaning set forth in Section 8.4(c).

 “Monthly Operating Reports” has the meaning set forth in Section 8.4(d). 
 “Net Profits” or “Net Losses” means, for any Fiscal Year, an amount equal to the Company’s taxable income or taxable loss for such
Fiscal Year, as determined under Section 703(a) of the Code (including all items required to be separately stated under Section 703(a)(1) of the Code) and Section 1.703-1 of the Treasury Regulations, but with the following
adjustments: 
 (a) any tax-exempt income, as described in Section 705(a)(1)(B) of the Code, realized by the Company and
not otherwise taken into account in this subsection shall be added to such taxable income or taxable loss; 
 (b) any
expenditures of the Company described in Section 705(a)(2)(B) of the Code for such Fiscal Year or treated as being so described in Section 1.704-1(b)(2)(iv)(i) of the Treasury Regulations and not otherwise taken into account in this
subsection shall be subtracted from such taxable income or taxable loss; 
 (c) in the event the Gross Asset Value of any
Asset is adjusted pursuant to clauses (b) or (c) of the definition of “Gross Asset Value,” the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net
Profit or Net Loss; 
 (d) any item of income, gain, loss or deduction that is required to be specially allocated to a Member
under this Agreement, including Section 4.2, 4.3 or 4.4, shall not be taken into account in computing such taxable income or taxable loss; 
 (e) the amount of any gain or loss required to be recognized by the Company during such Fiscal Year by reason of a sale or other disposition of any Asset, shall be computed as if the Company’s adjusted basis in
such Asset for income tax purposes were equal to the Gross Asset Value of the Asset disposed of, notwithstanding that the adjusted tax basis of such Asset differs from its Gross Asset Value; 
 (f) in lieu of depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for the Fiscal Year or other applicable period; and 
 (g) to the extent an
adjustment to the adjusted tax basis of any Asset pursuant to Section 734(b) or Section 743(b) of the Code is required pursuant to 

  

 Appendix I-10 

 
Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations in determining Capital Accounts, the amount of such adjustment shall be treated as an item of
gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the Asset and shall be taken into account for purposes of computing such taxable income or taxable loss.

 If the Company’s taxable income or taxable loss for such Fiscal Year, as adjusted in the manner provided above in clauses (a) through
(g) above, is (i) a positive amount, such amount shall be the Net Profits for such Fiscal Year or (ii) a negative amount, such amount shall be the Net Losses for such Fiscal Year. 
 “New Business” means any Midstream Activity that is not then included in any Annual Work Program and Budget, other than any Acquired Business, any
Member Requested Services, any buying and selling of gas and condensate or any activity contemplated in any Article 13 Contract. 
 “New Business
Annual Work Program and Budget” has the meaning set forth in Section 13.2(d). 
 “Non-Acquiring Member” has the meaning set forth
in Section 13.1(a). 
 “Non-Proposing Member” has the meaning set forth in Section 13.2(a). 
 “Offer Notice” has the meaning set forth in Section 13.1(a). 
 “Offered Interest” has the meaning set forth in Section 13.1(a). 
 “Operating Expenses” means costs and
expenses reasonably necessary to continue operating and maintaining the Assets in a manner consistent with past practices, industry standards, the standards set forth in Section 5.11 and applicable Law. 
 “Option Period” has the meaning set forth in Section 13.1(a). 
 “Original Agreement” has the meaning set forth in the Recitals. 
 “Other Material Company Group Contract” means
(a) any Company Group Commercial Contract not authorized Section 5.1(c)(ii); and (b) any material Company Group Contract that is not a Company Group Commercial Contract, Company Group O&M Contract, an Affiliate Contract or an
Article 13 Contract. 
 “Other Members” has the meaning set forth in Section 12.2(a). 
 “Participating Member” has the meaning set forth in Section 13.2(d). 
 “Parties” means, collectively, all of the Members and the Company, and “Party” means any of them. 
  

 Appendix I-11 

 “Person” means any individual, corporation, company, partnership, limited partnership, limited liability
company, trust, estate, Governmental Authority or any other entity. 
 “President and General Manager” means the manager whose rights,
obligations and duties are described in Section 5.9(b)(i). 
 “Proposing Member” has the meaning set forth in Section 13.2(a).

 “Purchase Agreement” has the meaning set forth in the Recitals. 
 “Quarterly Financial Statements” has the meaning set forth in Section 8.4(b). 
 “Quarterly
Forecasts” has the meaning set forth in Section 8.4(e). 
 “Reduced Member Interest” has the meaning set forth in
Section 3.7(b). 
 “Regulatory Allocations” has the meaning set forth in Section 4.3. 
 “Requesting Members” has the meaning set forth in Section 13.2(a). 
 “Required Asset Upgrade” means any Asset Upgrade that is necessary: (i) in order for the conduct of Business to comply with applicable Laws; (ii) to ensure that the Company Group Members
will be able to comply with the standards identified in Section 5.11, including the HSSE Principles, the HSSE Plan or the HSSE Management System; or (iii) in order for the Company Group Members to fulfill their required obligations under
any material Company Group Commercial Contract. 
 “Secondment Agreement” means each Secondment Agreement entered into by the Members and
the Company as of the Closing Date in the form of Exhibit “C” attached hereto. 
 “Securities Act” means the Securities Act of
1933 and the rules and regulations promulgated thereunder. 
 “Selling Party” has the meaning set forth in Section 13.1(a). 

“Services Agreements” means the agreements entered into by the Company on the Closing Date pursuant to Section 5.10, and the agreements entered
into by the Company pursuant to Section 10.2(b), and “Services Agreement” means any of them. 
 “Standards of Conduct”
has the meaning set forth in Section 1.10(a)(ix). 
 “Subsidiary” means any Person that is wholly-owned, directly or indirectly, by the
Company. 
 “Talco” means Talco Midstream Assets, Ltd., a limited partnership organized and existing under Texas Law. 
  

 Appendix I-12 

 “Tax Distribution” has the meaning set forth in Section 4.5(d)(i). 
 “Tax Distribution Date” has the meaning set forth in Section 4.5(d)(i). 
 “Tax Estimate Report” has the meaning set forth in Section 8.4(f). 
 “Tax Member” has
the meaning set forth in Section 9.3. 
 “TGG” means TGG Pipeline, Ltd., a limited partnership organized and existing under Texas Law.

 “Third Party” means any Person that is not a Member or an Affiliate of a Member. 
 “Total Amount in Default” means, as of any time, and with respect to any Defaulting Member, the following amounts: (a) the amounts that the
Defaulting Member has failed to pay under the terms of this Agreement; and (b) any interest at the Default Interest Rate accrued on the amount under (a) from the date this amount is due by the Defaulting Member until paid in full by the
Defaulting Member. 
 “Total Votes” has the meaning set forth in Section 5.3(a). 
 “Transfer” means any sale, assignment, or other disposition by a Member of all or any part of its Member Interest excluding (a) any disposition
resulting from a direct or indirect Change in Control of a Member, or a change in Control created by a change in Control of the ultimate parent company of such Member, (b) any disposition resulting from a Credit Facility Foreclosure, and
(c) any Encumbrance. 
 “Treasury Regulations” means the regulations promulgated by the United States Department of the Treasury
pursuant to and in respect of provisions of the Internal Revenue Code of 1986, as amended. All references herein to sections of the Treasury Regulations shall include any corresponding provision or provisions of succeeding, similar, substitute,
proposed or final Treasury Regulations. 
 “Vice President of Finance and Business Services” means the vice president whose rights,
obligations and duties are described in Section 5.9(b)(vi). 
 “Vice President of Asset Integrity” means the manager whose rights,
obligations and duties are described in Section 5.9(b)(vii). 
 “Vice President of Commercial Operations and Business Development”
means the vice president whose rights, obligations and duties are described in Section 5.9(b)(ii). 
 “Vice President of Engineering and
Construction” means the vice president whose rights, obligations and duties are described in Section 5.9(b)(iii). 
 “Vice President of
HSSE” means the vice president whose rights, obligations and duties are described in Section 5.9(b)(v). 
  

 Appendix I-13 

 “Vice President of Operations and Maintenance” means the vice president whose rights, obligations and
duties are described in Section 5.9(b)(iv). 
 “Wholly-Owned Affiliate” means, with respect to any Party, an Affiliate of such Party
that is wholly owned, directly or indirectly by the ultimate parent of such Party. 
  

 Appendix I-14 

 ATTACHED TO AND MADE PART
OF THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY 
 AGREEMENT OF TGGT HOLDINGS, LLC 
  

 5.13-1ex10_1.htm

    Exhibit
10.1

     

    
      TechTarget,
Inc.

       

      Restricted
Stock Unit Agreement

       

      Granted
Under 2007 Stock Option and Incentive Plan

       

      AGREEMENT
made as of this 2nd day of January, 2009 “(Grant Date”) between TechTarget,
Inc., a Delaware corporation
(the “Company”),
and _________________
(the “Participant”).

       

      For
valuable consideration, receipt of which is acknowledged, the parties hereto
agree as follows:

       

      1. Issuance
of RSUs.  In consideration of services rendered or to be
rendered to the Company by the Participant, the Company has granted to the
Participant, subject to the terms and conditions set forth in this Agreement and
in the Company’s 2007 Stock Option and Incentive Plan (the “Plan”),
_____________________________ (_______) restricted stock units (the “RSUs”),
each representing the right to receive one share of common stock, $0.001 par
value, of the Company (“Common
Stock”).  The shares of Common Stock that are issuable with
respect to the RSUs are referred to in this Agreement as “Shares”.  The
Participant agrees that the RSUs shall be subject to the forfeiture provisions
set forth in Section 2 of this Agreement, the restrictions on transfer set
forth in Section 3 of this Agreement, and the distribution provisions set
forth in Section 4 of this Agreement and Appendix
A attached hereto.

       

      2. Vesting.  The
RSUs shall vest in accordance with the following provisions of this Section 2 of
the Agreement:

       

      (a) in the
event that the Company’s Adjusted EBITDA (defined as earnings before net
interest, income taxes, depreciation and amortization, as further adjusted for
stock-based compensation) is greater than zero (the “Performance
Metric”) in Fiscal Year 2009 then, on the date on which the Company’s
Compensation Committee of its Board of Directors certifies that the Performance
Metric has been achieved based on reasonable evidence produced by the Company
(the “Initial
Vesting Trigger Date”), twenty-five percent (25%) of the total amount of
the RSUs shall vest and, thereafter, upon the conclusion of each ninety-one (91)
day period following the initial anniversary of the Grant Date, the RSUs shall
vest in additional six and a quarter percent (6.25%) increments such that on the
fourth anniversary of the Grant Date, the RSUs grant shall be fully-vested;
provided,
however;
in the event that the Company’s 2009 Adjusted EBITDA is less than zero, then the
Initial Vesting Trigger Date for these RSUs shall be delayed until the Initial
Vesting Trigger Date following the end of the first fiscal year thereafter in
which the Performance Metric is achieved such that the initial twenty-five
percent (25%) of the total amount of the RSUs shall vest thereupon, with the
balance of the vesting thereof to follow the same schedule thereafter as
contemplated above (i.e., 6.25% on each 91-day period following the applicable
anniversary of the Grant Date); provided,
further,
that, in the event that the financial results of the Company do not result in it
producing Adjusted EBITDA greater than zero for the fiscal year ending December
31, 2011, these RSUs shall expire and thereupon terminate.

       

      (b) In the
event that the Participant ceases to be employed by the Company for any reason
or no reason, with or without cause, prior to the anniversary of the Grant Date
that precedes the fourth anniversary of the Initial Vesting Trigger Date, any
Unvested RSUs (as defined below) shall, subject to the acceleration provisions
hereof, be automatically forfeited to the Company.  “Unvested
RSUs” means the total number of RSUs multiplied by the Applicable
Percentage at the time such RSUs are forfeited or such other applicable
measurement date.  The “Applicable
Percentage” shall be (i) 100% until the Initial Vesting Trigger Date,
(ii) 75% less 6.25% for each 91 days of employment completed by the Participant
with the Company from and after the applicable anniversary of the Grant Date as
described in Section 2(a), and (iii) zero on or after the anniversary of
Grant Date that precedes the fourth anniversary of the Initial Vesting Trigger
Date.  The total number of Unvested RSUs that become vested on each
vesting date shall be referred to as a “Vesting Tranche”.

       

      (c) Notwithstanding
the terms of Section 2(a) above, in the event:

       

      (1) of the
consummation a transaction resulting in a “change in control” of the Company
within the meaning of Section 409A of the Internal Revenue Code (“Section
409A”), all Unvested RSUs shall immediately and without further action be deemed
to be fully-vested; or

       

      (2) of
termination of the Participant’s employment with the Company pursuant to Section
6(b), (c), (d) or (e) of the Amended and Restated Employment Agreement, by and
between the Company and the Participant (the “Employment Agreement”), or the
failure of the Company to extend the Employment Agreement following the
expiration of the then-current Term, the Unvested RSUs shall vest in accordance
with the terms of the Section 7(b)(iv) of the Employment Agreement; provided,
that, in the event that such termination occurs during the period beginning with
the January 2 of the fiscal year in which the Performance Metric is achieved and
ending on the Initial Vesting Trigger Date, then the initial 25% tranche of this
RSU grant shall vest on the Initial Vesting Trigger Date and the balance of the
Unvested RSUs shall be subject to the terms of Section 7(b)(iv) of such
Employment Agreement.

       

      (d) Any RSUs
that become vested pursuant to Sections 2(b) or 2(c) shall be treated as a
Vesting Tranche and shall be distributed in accordance with Section 4 hereof.
Notwithstanding anything herein to the contrary, if the RSUs do not vest as set
forth in Section 2 or as otherwise provided in any other agreement with the
Company or any parent or subsidiary of the Company, the RSUs shall automatically
be forfeited to the Company.

       

       

      (e) For
purposes of this Agreement, employment with the Company shall include employment
with a parent or subsidiary of the Company, or any successor to the
Company.

       

      3. Restrictions
on Transfer.

       

      (a) The
Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise
dispose of, by operation of law or otherwise (collectively “transfer”)
any RSUs, or any interest therein, until such RSUs have vested and the Shares
issuable with respect thereto have been distributed in accordance with Section 4
of this Agreement.

       

      (b) The
Company shall not be required (i) to transfer on its books any of the RSUs which
have been transferred in violation of any of the provisions set forth in this
Agreement or (ii) to treat as owner of such RSUs any transferee to whom such
RSUs have been transferred in violation of any of the provisions of this
Agreement.

       

      4. Distribution
of Shares.

       

      (a) Each
Vesting Tranche will be distributed by the Company to the Participant (or to the
Participant’s estate in the event that his death occurs after a vesting date but
before distribution of the corresponding Shares) on the earliest to occur of one
of the Permissible Events described in Section 4(b) below on which date (the
“Distribution Date”), the Participant (or his estate) shall become the owner of
the Shares for all purposes.  Notwithstanding the foregoing, and
solely to the extent necessary to avoid the penalty provisions under Section
409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), if the
Distribution Date occurs because of the termination of the Participant’s
employment and the Participant is deemed to be a “specified employee” as defined
under Section 409A, then the Distribution Date shall be the date that is six
months plus one day after the date of termination.

       

      (b) For
purposes of this Agreement, “Permissible Event” shall be the occurrence of one
of the following:  (i) the Participant’s “separation from service”
(within the meaning of Section 409A) for any reason, (ii) the Participant
becoming disabled within the meaning of Section 409A, (iii) the death of the
Participant, (iv) the occurrence of a “change in control” of the Company within
the meaning of Section 409A, and (v) the date set forth on Appendix
A attached hereto for each such Vesting Tranche.

       

      (c) Neither
the Company nor the Participant shall have any right to accelerate or defer
distribution of the Shares, except to the extent expressly permitted or required
by Section 409A.  Each Vesting Tranche shall be treated as a separate
payment for purposes of Section 409A.

       

      (d) Notwithstanding
the foregoing, the Company shall not be obligated to issue to the Participant
the Shares upon the Distribution Date unless the issuance and delivery of such
Shares shall comply with all relevant provisions of law and other legal
requirements including, without limitation, any applicable federal or state
securities laws and the requirements of any stock exchange upon which shares of
Common Stock may then be listed.

       

      5. Provisions
of the Plan.

       

      This
Agreement is subject to the provisions of the Plan, a copy of which is furnished
to the Participant with this Agreement.

       

      6. Withholding
Taxes.

       

      (a) The
Participant acknowledges and agrees that the Company has the right to deduct
from payments of any kind otherwise due to the Participant any federal, state,
local, provincial or other taxes of any kind required by law to be withheld with
respect to the issuance of the Shares to the Participant or the lapse of the
forfeiture provisions.

       

      (b) The
Participant has reviewed with the Participant’s own tax advisors the federal,
state, local, provincial and other tax consequences of this investment and the
transactions contemplated by this Agreement.  The Participant is
relying solely on such advisors and not on any statements or representations of
the Company or any of its agents.  The Participant understands that
the Participant (and not the Company) shall be responsible for the Participant’s
own tax liability that may arise as a result of this investment or the
transactions contemplated by this Agreement.

       

      7. Miscellaneous.

       

      (a) No
Rights to Employment.  The Participant acknowledges and agrees
that the vesting of the RSUs pursuant to Section 2 hereof is earned only by
satisfaction of the performance conditions and continuing service as an employee
at the will of the Company (not through the act of being hired or being granted
the RSUs hereunder).  The Participant further acknowledges and agrees
that the transactions contemplated hereunder and the vesting schedule set forth
herein do not constitute an express or implied promise of continued engagement
as an employee for the vesting period, for any period, or at
all.

       

      (b) Severability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to
the extent permitted by law.

       

      (c) Waiver.  Any
provision for the benefit of the Company contained in this Agreement may be
waived, either generally or in any particular instance, by the Board of
Directors of the Company.

       

      (d) Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the Company and the Participant and their respective heirs,
executors, administrators, legal representatives, successors and assigns,
subject to the restrictions on transfer set forth in Section 3 of this
Agreement.

       

      (e) Notice.   Each
notice relating to this Agreement shall be in writing and delivered in person or
by first class mail, postage prepaid, to the address as hereinafter
provided.  Each notice shall be deemed to have been given on the date
it is received.  Each notice to the Company shall be addressed to it
at its office at 117 Kendrick Street, Needham, MA 02494.  Each notice
to the Participant shall be addressed to the Participant at the Participant’s
last known address.

       

      (f) Pronouns.  Whenever
the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns and pronouns shall include the plural, and
vice versa.

       

      (g) Entire
Agreement.  This Agreement and the Plan constitute the entire
agreement between the parties, and supersede all prior agreements and
understandings, relating to the subject matter of this
Agreement.

       

      (h) Amendment.  This
Agreement may be amended or modified only by a written instrument executed by
both the Company and the Participant.

       

      (i) Governing
Law.  This Agreement shall be construed, interpreted and
enforced in accordance with the internal laws of the State of Delaware without
regard to any applicable conflicts of laws.

       

      (j) Interpretation.  The
interpretation and construction of any terms or conditions of the Plan, or of
this Agreement or other matters related to the Plan by the Compensation
Committee of the Board of Directors of the Company shall be final and
conclusive.

       

      (k) Participant’s
Acknowledgments.  The Participant acknowledges that he or she:
(i) has read this Agreement; (ii) has been represented in the preparation,
negotiation, and execution of this Agreement by legal counsel of the
Participant’s own choice or has voluntarily declined to seek such counsel; (iii)
understands the terms and consequences of this Agreement; (iv) is fully aware of
the legal and binding effect of this Agreement; and (v) understands that the law
firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the
Company in connection with the transactions contemplated by the Agreement, and
is not acting as counsel for the Participant.

       

      (l) Delivery
of Certificates.  Subject to Section 4, the Participant may
request that the Company deliver the Shares in certificated form with respect to
any Shares underlying RSUs that are delivered upon the Distribution
Date.

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.

       

      TECHTARGET,
INC.

       

      By:  ________________________

           Name:

           Title:

       

       

      Participant:

       

       

      _____________________________

       

      Print
Name: ___________________

       

      Address:                      _________________

      _________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00162-of-00352.parquet"}]]