Document:

Supplemental Agreement No. 70 to Purchase Agreement No. 1810

 Exhibit 10.1(d) 
 Confidential Treatment 
 Supplemental Agreement No. 70 

to 
 Purchase
Agreement No. 1810 
 between 
 THE BOEING COMPANY 
 and 

SOUTHWEST AIRLINES CO. 
 Relating to Boeing Model 737-7H4 Aircraft (the Aircraft) 
 THIS SUPPLEMENTAL
AGREEMENT, entered into as of November 19, 2010, by and between THE BOEING COMPANY, a Delaware corporation with principal offices in Seattle, Washington, (Boeing) and SOUTHWEST AIRLINES CO., a Texas corporation with principal offices in Dallas,
Texas (Buyer); 
 WHEREAS, the parties hereto entered into Purchase Agreement No. 1810 dated January 19, 1994,
relating to Boeing Model 737-7H4 aircraft (the Agreement) and; 
 WHEREAS, Boeing and Buyer have agreed to recontract the
Contract Delivery Month of one (1) Block T-W-2b Firm Aircraft as follows (Recontracted 2011 Firm Aircraft): 
  

					
	 MSN
	 	 Previous Contract

Delivery Month
	 	 New Contract Delivery

Month

	 36668
	 	January 2011	 	December 2010

 and; 

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Agreement as follows:

 1. The Table of Contents of the Agreement is deleted in its entirety and a new Table of Contents is attached hereto and incorporated into the
Agreement by this reference; 
 2. Table 1 is deleted in its entirety and replaced by a new Table 1 which is attached hereto to reflect the new
Contract Delivery Months for the Recontracted 2011 Firm Aircraft as a Block T-W-2b Firm Aircraft. 
 ***Pursuant to 17 CFR240.24b-2,
confidential information has been omitted and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filled with the Commission. 

  

					
	 P.A. No. 1810
	  	SA-70-1	  	
	 K/SWA
	  		  	

 The Agreement will be deemed to be supplemented to the extent herein provided and as so supplemented will
continue in full force and effect. 
 EXECUTED IN DUPLICATE as of the day and year first above written. 

 

											
	THE BOEING COMPANY	 		 	SOUTHWEST AIRLINES CO.	  	
						
	 By:
	 	   Isabelle Session
	 		 	By:	 	   Scott Topping
	  	
	 Its:
	 	   Attorney-In-Fact
	 		 	 Its:
	 	   VP Treasurer
	  	

  

					
	 P.A. No. 1810
	  	SA-70-2	  	
	K/SWA	  		  	

 TABLE OF CONTENTS 

 

											
	 	 	 	  	Page
Number	 	  	SA
Number	 
	 ARTICLES
	 		  				  			
				
	 1.
	 	Subject Matter of Sale	  	 	1-1	  	  	 	SA-13	  
				
	 2.
	 	Delivery, Title and Risk of Loss	  	 	2-1	  	  	 	SA-28	  
				
	 3.
	 	Price of Aircraft	  	 	3-1	  	  	 	SA-47	  
				
	 4.
	 	Taxes	  	 	4-1	  	  			
				
	 5.
	 	Payment	  	 	5-1	  	  			
				
	 6.
	 	Excusable Delay	  	 	6-1	  	  			
				
	 7.
	 	Changes to the Detail Specification	  	 	7-1	  	  	 	SA-1	  
				
	 8.
	 	Federal Aviation Requirements and Certificates and Export License	  	 	8-1	  	  			
				
	 9.
	 	Representatives, Inspection, Flights and Test Data	  	 	9-1	  	  			
				
	 10.
	 	Assignment, Resale or Lease	  	 	10-1	  	  			
				
	 11.
	 	Termination for Certain Events	  	 	11-1	  	  			
				
	 12.
	 	Product Assurance; Disclaimer and Release; Exclusion of Liabilities; Customer Support; Indemnification and Insurance	  	 	12-1	  	  			
				
	 13.
	 	Buyer Furnished Equipment and Spare Parts	  	 	13-1	  	  			
				
	 14.
	 	Contractual Notices and Requests	  	 	14-1	  	  			
				
	 15.
	 	Miscellaneous	  	 	15-1	  	  			

  

					
	 P.A. No. 1810
	  		  	
	K/SWA	  		  	SA-70

 TABLE OF CONTENTS CON’T 

 

							
	 	 	 	  	SA
Number	 
			
	 TABLE
	 		  			
			
	 1.
	 	Aircraft Information Table	  	 	SA-70	  
			
	 2.
	 	Option Aircraft Information Table	  	 	SA-66	  
			
	 3.
	 	2011 Incremental Aircraft #1	  	 	SA-69	  
			
	 EXHIBITS
	 		  			
			
	 A
	 	Aircraft Configuration	  	 	SA-66	  
			
		 	Exhibit A-4	  			
			
		 	Exhibit A-1A	  	 	SA-69	  
			
	 B
	 	Product Assurance Document	  	 	SA-1	  
			
	 C
	 	Customer Support Document	  			
			
	 D
	 	Price Adjustments Due to Economic Fluctuations – Aircraft	  			
			
	 E
	 	Buyer Furnished Equipment Provisions Document	  			
			
	 F
	 	Defined Terms Document	  			
		
	 LETTER AGREEMENTS
	  			
			
	 1810-1
	 	Waiver of Aircraft Demonstration Flight	  			

  

					
	 P.A. No. 1810
	  		  	
	K/SWA	  		  	SA-70

 TABLE OF CONTENTS CON’T 

 

							
	 	  	 	  	SA
Number	 
	RESTRICTED LETTER AGREEMENTS	  			
			
	 6-1162-RLL-932R2
	  	 Promotional Support
	  	 	SA-13	  
			
	 6-1162-RLL-933R21
	  	 Option Aircraft
	  	 	SA-60	  
			
	 6-1162-RLL-934R3
	  	 Disclosure of Confidential Information
	  	 	SA-14	  
			
	 6-1162-RLL-935R1
	  	 Performance Guarantees
	  	 	SA-1	  
			
	 6-1162-NIW-890
	  	 ***
	  	 	SA-39	  
			
	 6-1162-RLL-936R4
	  	 Certain Contractual Matters
	  	 	SA-4	  
			
	 6-1162-RLL-937
	  	 Alternate Advance Payment Schedule
	  			
			
	 6-1162-RLL-938
	  	 ***
	  			
			
	 6-1162-RLL-939R1
	  	 Certification Flight Test Aircraft
	  	 	SA-1	  
			
	 6-1162-RLL-940R1
	  	 Training Matters
	  	 	SA-1	  
			
	 6-1162-RLL-941R2
	  	 Other Matters
	  	 	SA-13	  
			
	 6-1162-RLL-942
	  	 Open Configuration Matters
	  			
			
	 6-1162-RLL-943R1
	  	 Substitution Rights
	  	 	SA-6	  
			
	 6-1162-RLL-944
	  	 ***
	  			
			
	 6-1162-RLL-945
	  	 Comparison of 737-7H4 and 737-3H4 Block Fuel Burn
	  			
			
	 6-1162-RLL-1855R3
	  	 Additional Contractual Matters
	  	 	SA-4	  
			
	 6-1162-RLL-1856
	  	 ***
	  	 	SA-1	  
			
	 6-1162-RLL-1857
	  	 Service Ready Validation Program Field Test
	  	 	SA-1	  
			
	 6-1162-RLL-1858R1
	  	 Escalation Matters
	  	 	SA-4	  

  

					
	 P.A. No. 1810
	  		  	
	 K/SWA
	  		  	SA-70

 TABLE OF CONTENTS CON’T 

 

							
	 	  	 	  	SA
Number	 
	RESTRICTED LETTER AGREEMENTS	  			
			
	 6-1162-RLL-2036
	  	 Amortization of Costs for Customer Unique Changes
	  	 	SA-1	  
			
	 6-1162-RLL-2037
	  	 Reconciliation of the Aircraft Basic Price
	  	 	SA-1	  
			
	 6-1162-RLL-2073
	  	 Maintenance Training Matters
	  	 	SA-1	  
			
	 6-1162-KJJ-054R1
	  	 Business Matters
	  			
			
	 6-1162-KJJ-055R1
	  	 Structural Matters
	  	 	SA-25	  
			
	 6-1162-KJJ-056
	  	 Noise and Emission Matters
	  	 	SA-13	  
			
	 6-1162-KJJ-057
	  	 Product Development Matters
	  	 	SA-13	  
			
	 6-1162-KJJ-058
	  	 Additional Substitution Rights
	  	 	SA-13	  
			
	 6-1162-KJJ-150
	  	 Flight Control Computer & Mode Control Panel Spares Matter
	  	 	SA-14	  
			
	 6-1162-MSA-185R3
	  	 Delivery Change Contractual Matters
	  	 	SA-21	  
			
	 6-1162-JMG-669R8
	  	 ***
	  	 	SA-54	  
			
	 6-1162-JMG-747R1
	  	 ***
	  	 	SA-36	  
			
	 6-1162-CHL-217
	  	 Rescheduled Flight Test Aircraft
	  	 	SA-32	  
			
	 6-1162-NIW-606R1
	  	 ***
	  	 	SA-36	  
			
	 6-1162-NIW-640
	  	 Early Delivery of Two April 2004 Aircraft
	  	 	SA-35	  
			
	 6-1162-NIW-889
	  	 Warranty - Exterior Color Schemes and Markings for YA143 and on
	  	 	SA-39	  
			
	 6-1162-NIW-1142
	  	 ***
	  	 	SA-43	  
			
	 6-1162-NIW-1369
	  	 ***
	  	 	SA-46	  

  

					
	 P.A. No. 1810
	  		  	
	 K/SWA
	  		  	SA-70

					
	 6-1162-NIW-1983
	  	 ***
	  	SA-62
			
	 SWA-PA-1810-LA-1000419
	  	 ***
	  	SA-64
			
	 SWA-PA-1810-LA-1001315
	  	 ***
	  	SA-66
			
	 SWA-PA-1810-LA-02710
	  	 ***
	  	SA-69

  

					
	 P.A. No. 1810
	  		  	
	 K/SWA
	  		  	SA-70

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

							
	 	  	 Base Aircraft
 Price
	  	 Special
 Features
	  	 Aircraft Basic

Price

	 Block A, B, C, D & E Aircraft
	  	***	  	***	  	***
				
	 Block F & G Aircraft
	  	***	  	***	  	***
				
	 Block H Aircraft
	  	***	  	***	  	***
				
	 Block I Aircraft
	  	***	  	***	  	***
				
	 Block J Aircraft
	  	***	  	***	  	***
				
	 Block K Aircraft
	  	***	  	***	  	***
				
	 Block K-W Aircraft
	  	***	  	***	  	***
				
	 Block L Aircraft
	  	***	  	***	  	***
				
	 Block T Aircraft
	  	***	  	***	  	***
				
	 Block T-W Aircraft
	  	***	  	***	  	***
				
	 Block T-W-1 / T-W-1a Aircraft
	  	***	  	***	  	***
				
	 Block T-W-2 / T-W-2a Aircraft
	  	***	  	***	  	***
				
	 Block T-W-2b Aircraft
	  	***	  	***	  	***

 Block K-W Aircraft: Block K airplanes
with production winglets installation 
 Block T-W Aircraft: Block T airplanes with production winglets installation 

Block T-W-1 / T-W-1a Aircraft: Firm Aircraft contracted to deliver from May 1, 2006 through June 2008 at the signing of SA-47 — (T-W-1a Aircraft
— Advance Payment Schedule per LA 6-1162-JGM-669) 
 Block T-W-2 / T-W-2a Aircraft: U-W-1 Option Aircraft which became Firm Aircraft after
signing of SA-47 and 
 Firm Aircraft contracted to deliver in July 2008 forward at the signing of SA47 — 

(T-W-2a Aircraft — Advance Payment Schedule per LA 6-1162-JGM-669) 
 (T-W-2b Aircraft - Advance Payment Schedule per LA SWA-PA-1810-LA-1001315; ) 
 * Exhibit A-2
applies to Block T-W-2 / T-W-2a Aircraft delivering through Dec 2009 and the first Aircraft delivering in Jan 2010 
 * Exhibit A-3 applies to
Block T-W-2 / T-W-2a Aircraft the second Aircraft delivering in Jan 2010 and on 
 * Exhibit A-4 applies to Block T-W-2b Aircraft as
identified in Exhibit A-4 to the Purchase Agreement 
  

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per A/P
	 	 Serial Number

	 Oct-1998
	 	1	 	F	  	***	 	
					
	 Nov-1998
	 	2	 	F	  	***	 	
					
	 Dec-1998
	 	2	 	F	  	***	 	
					
	 Mar-1999
	 	2	 	G	  	***	 	
					
	 Jun-1999
	 	2	 	H	  	***	 	
					
	 Jul-1999
	 	1	 	H	  	***	 	
					
	 Aug-1999
	 	1	 	H	  	***	 	
					
	 Sep-1999
	 	2	 	H	  	***	 	
					
	 Oct-1999
	 	1	 	H	  	***	 	
					
	 Oct-1999
	 	1	 	L	  	***	 	

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 1	  	APR54184

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per A/P
	 	 Serial Number

	 Nov-1999
	 	2	 	L	  	***	 	
					
	 Dec-1999
	 	1	 	L	  	***	 	
					
	 Mar-2000
	 	1	 	H	  	***	 	
					
	 Apr-2000
	 	2	 	H	  	***	 	
					
	 Jun-2000
	 	3	 	L	  	***	 	
					
	 Jul-2000
	 	3	 	L	  	***	 	
					
	 Sep-2000
	 	1	 	H	  	***	 	
					
	 Sep-2000
	 	1	 	L	  	***	 	
					
	 Oct-2000
	 	2	 	H	  	***	 	
					
	 Oct-2000
	 	1	 	L	  	***	 	
					
	 Nov-2000
	 	4	 	L	  	***	 	
					
	 Dec-2000
	 	2	 	E	  	***	 	
					
	 Dec-2000
	 	1	 	L	  	***	 	
					
	 Jan-2001
	 	1	 	E	  	***	 	
					
	 Jan-2001
	 	1	 	L	  	***	 	
					
	 Feb-2001
	 	1	 	E	  	***	 	
					
	 Feb-2001
	 	1	 	L	  	***	 	
					
	 Mar-2001
	 	2	 	E	  	***	 	
					
	 Mar-2001
	 	2	 	H	  	***	 	
					
	 Apr-2001
	 	1	 	H	  	***	 	
					
	 Jun-2001
	 	3	 	E	  	***	 	
					
	 Jul-2001
	 	1	 	L	  	***	 	
					
	 Sep-2001
	 	3	 	E	  	***	 	
					
	 Sep-2001
	 	1	 	L	  	***	 	
					
	 Oct-2001
	 	3	 	H	  	***	 	
					
	 Oct-2001
	 	1	 	L	  	***	 	
					
	 Nov-2001
	 	2	 	I	  	***	 	
					
	 Nov-2001
	 	1	 	T	  	***	 	
					
	 Dec-2001
	 	1	 	I	  	***	 	
					
	 Jan-2002
	 	1	 	I	  	***	 	
					
	 Feb-2002
	 	1	 	T	  	***	 	
					
	 Mar-2002
	 	4	 	I	  	***	 	
					
	 Apr-2002
	 	2	 	I	  	***	 	
					
	 Nov-2002
	 	1	 	J	  	***	 	
					
	 Dec-2002
	 	2	 	I	  	***	 	
					
	 Dec-2002
	 	1	 	J	  	***	 	
					
	 Mar-2003
	 	2	 	L	  	***	 	
					
	 May-2003
	 	1	 	I	  	***	 	
					
	 Jun-2003
	 	2	 	I	  	***	 	
					
	 Jul-2003
	 	1	 	I	  	***	 	
					
	 Jul-2003
	 	1	 	L	  	***	 	
					
	 Aug-2003
	 	1	 	I	  	***	 	
					
	 Aug-2003
	 	2	 	L	  	***	 	
					
	 Sep-2003
	 	3	 	I	  	***	 	
					
	 Nov-2003
	 	2	 	J	  	***	 	
					
	 Dec-2003
	 	2	 	J	  	***	 	
					
	 Jan-2004
	 	2	 	T	  	***	 	
					
	 Feb-2004
	 	1	 	T	  	***	 	
					
	 Mar-2004
	 	1	 	J	  	***	 	
					
	 Mar-2004
	 	1	 	K	  	***	 	
					
	 Apr-2004
	 	3	 	K	  	***	 	
					
	 Apr-2004
	 	3	 	T	  	***	 	
					
	 May-2004
	 	1	 	K	  	***	 	
					
	 May-2004
	 	1	 	T	  	***	 	
					
	 Jun-2004
	 	2	 	K	  	***	 	
					
	 Jun-2004
	 	6	 	T	  	***	 	

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 2	  	APR54184

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per A/P
	 	 Serial Number

	 Jul-2004
	 	2	 	K	  	***	 	
					
	 Jul-2004
	 	2	 	T	  	***	 	
					
	 Aug-2004
	 	6	 	T-W	  	***	 	
					
	 Sep-2004
	 	1	 	K-W	  	***	 	
					
	 Sep-2004
	 	4	 	T-W	  	***	 	
					
	 Oct-2004
	 	4	 	K-W	  	***	 	
					
	 Oct-2004
	 	0	 	T-W	  	***	 	
					
	 Nov-2004
	 	3	 	T-W	  	***	 	
					
	 Dec-2004
	 	3	 	T-W	  	***	 	
					
	 Jan-2005
	 	5	 	T-W	  	***	 	
					
	 Feb-2005
	 	3	 	T-W	  	***	 	
					
	 Mar-2005
	 	4	 	T-W	  	***	 	
					
	 Apr-2005
	 	4	 	T-W	  	***	 	
					
	 May-2005
	 	2	 	T-W	  	***	 	
					
	 Jun-2005
	 	4	 	T-W	  	***	 	
					
	 Jul-2005
	 	2	 	T-W	  	***	 	
					
	 Aug-2005
	 	2	 	T-W	  	***	 	
					
	 Sep-2005
	 	3	 	T-W	  	***	 	
					
	 Oct-2005
	 	2	 	T-W	  	***	 	
					
	 Nov-2005
	 	2	 	T-W	  	***	 	
					
	 Dec-2005
	 	1	 	T-W	  	***	 	
					
	 Jan-2006
	 	1	 	T-W	  	***	 	
					
	 Feb-2006
	 	4	 	T-W	  	***	 	
					
	 Mar-2006
	 	3	 	T-W	  	***	 	
					
	 Apr-2006
	 	2	 	T-W	  	***	 	
					
	 May-2006
	 	5	 	T-W-1	  	***	 	
					
	 Jun-2006
	 	5	 	T-W-1	  	***	 	
					
	 Jul-2006
	 	3	 	T-W-1	  	***	 	
					
	 Aug-2006
	 	3	 	T-W-1	  	***	 	
					
	 Sep-2006
	 	3	 	T-W-1	  	***	 	
					
	 Oct-2006
	 	1	 	T-W-1	  	***	 	
					
	 Nov-2006
	 	2	 	T-W-1	  	***	 	
					
	 Dec-2006
	 	2	 	T-W-1	  	***	 	
					
	 Jan-2007
	 	2	 	T-W-1	  	***	 	
					
	 Feb-2007
	 	3	 	T-W-1	  	***	 	
					
	 Mar-2007
	 	2	 	T-W-1	  	***	 	
					
	 Apr-2007
	 	3	 	T-W-1	  	***	 	
					
	 May-2007
	 	3	 	T-W-1	  	***	 	
					
	 Jun-2007
	 	2	 	T-W-1	  	***	 	
					
	 Jun-2007
	 	1	 	T-W-1a	  	***	 	36528
					
	 Jul-2007
	 	2	 	T-W-1	  	***	 	
					
	 Jul-2007
	 	1	 	T-W-1a	  	***	 	36610
					
	 Aug-2007
	 	2	 	T-W-1	  	***	 	
					
	 Aug-2007
	 	3	 	T-W-1a	  	***	 	36611, 36632 & 36633
					
	 Sep-2007
	 	2	 	T-W-1	  	***	 	
					
	 Sep-2007
	 	1	 	T-W-1a	  	***	 	36612
					
	 Oct-2007
	 	3	 	T-W-1	  	***	 	
					
	 Oct-2007
	 	1	 	T-W-1a	  	***	 	36613
					
	 Nov-2007
	 	1	 	T-W-1	  	***	 	
					
	 Nov-2007
	 	1	 	T-W-1a	  	***	 	36614
					
	 Dec-2007
	 	2	 	T-W-1	  	***	 	
					
	 Dec-2007
	 	1	 	T-W-1a	  	***	 	36615
					
	 Jan-2008
	 	1	 	T-W-1	  	***	 	
					
	 Jan-2008
	 	2	 	T-W-1a	  	***	 	36616 & 36617
					
	 Jan-2008
	 	1	 	T-W-2	  	***	 	36887
					
	 Feb-2008
	 	1	 	T-W-1	  	***	 	

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 3	  	APR54184

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per A/P
	 	 Serial Number

	 Feb-2008
	 	3	 	T-W-1a	  	***	 	36618, 36619 & 36620
					
	 Mar-2008
	 	1	 	T-W-1	  	***	 	
					
	 Mar-2008
	 	2	 	T-W-1a	  	***	 	36621 & 36622
					
	 Mar-2008
	 	1	 	T-W-2	  	***	 	36888
					
	 Apr-2008
	 	1	 	T-W-1	  	***	 	
					
	 Apr-2008
	 	2	 	T-W-1a	  	***	 	36623 & 36624
					
	 May-2008
	 	1	 	T-W-1	  	***	 	
					
	 May-2008
	 	2	 	T-W-1a	  	***	 	36625 & 36626
					
	 Jun-2008
	 	1	 	T-W-1	  	***	 	
					
	 Jun-2008
	 	2	 	T-W-1a	  	***	 	36627 & 36628
					
	 Jul-2008
	 	2	 	T-W-2a	  	***	 	
					
	 Jul-2008
	 	2	 	T-W-2	  	***	 	36889 & 36890
					
	 Aug-2008
	 	1	 	T-W-2a	  	***	 	
					
	 Oct-2008
	 	1	 	T-W-2a	  	***	 	
					
	 Nov-2008
	 	1	 	T-W-2a	  	***	 	
					
	 Dec-2008
	 	1	 	T-W-2a	  	***	 	
					
	 Jan-2009
	 	1	 	T-W-2a	  	***	 	
					
	 Feb-2009
	 	2	 	T-W-2a	  	***	 	
					
	 Mar-2009
	 	2	 	T-W-2a	  	***	 	
					
	 Apr-2009
	 	2	 	T-W-2a	  	***	 	
					
	 Apr-2009
	 	1	 	T-W-2	  	***	 	36900
					
	 May-2009
	 	2	 	T-W-2a	  	***	 	
					
	 Jan-2010
	 	1	 	T-W-2	  	***	 	36913
					
	 Feb-2010
	 	1	 	T-W-2a	  	***	 	36659
					
	 Mar-2010
	 	1	 	T-W-2a	  	***	 	36660
					
	 Mar-2010
	 	1	 	T-W-2	  	***	 	36918
					
	 May-2010
	 	1	 	T-W-2a	  	***	 	36662
					
	 May-2010
	 	1	 	T-W-2	  	***	 	36924
					
	 Jun-2010
	 	1	 	T-W-2a	  	***	 	36663
					
	 Jul-2010
	 	1	 	T-W-2a	  	***	 	36664
					
	 Aug-2010
	 	1	 	T-W-2a	  	***	 	36665
					
	 Oct-2010
	 	1	 	T-W-2b	  	***	 	36667
					
	 Dec-2010
	 	1	 	T-W-2b	  	***	 	36668
					
	 Feb-2011
	 	1	 	T-W-2b	  	***	 	36669
					
	 March-11
	 	1	 	T-W-2b	  	***	 	36671
					
	 April-11
	 	1	 	T-W-2b	  	***	 	36672
					
	 May-11
	 	1	 	T-W-2b	  	***	 	36673
					
	 May-11
	 	1	 	T-W-2b	  	***	 	41528
					
	 June-11
	 	1	 	T-W-2b	  	***	 	36674
					
	 July-11
	 	1	 	T-W-2b	  	***	 	36675
					
	 July-11
	 	2	 	T-W-2b	  	***	 	36963, 36962
					
	 August-11
	 	1	 	T-W-2b	  	***	 	36676
					
	 August-11
	 	1	 	T-W-2b	  	***	 	36965
					
	 September-11
	 	1	 	T-W-2b	  	***	 	36677
					
	 September-11
	 	1	 	T-W-2b	  	***	 	36966
					
	 Oct-2011
	 	1	 	T-W-2b	  	***	 	36967
					
	 Dec-2011
	 	1	 	T-W-2b	  	***	 	36679
					
	 Mar-2012
	 	1	 	T-W-2b	  	***	 	36680
					
	 Mar-2012
	 	1	 	T-W-2b	  	***	 	36980
					
	 Apr-2012
	 	1	 	T-W-2b	  	***	 	36681
					
	 Apr-2012
	 	1	 	T-W-2b	  	***	 	36983
					
	 May-2012
	 	1	 	T-W-2b	  	***	 	36682
					
	 May-2012
	 	1	 	T-W-2b	  	***	 	36985
					
	 Jun-2012
	 	1	 	T-W-2b	  	***	 	36683
					
	 Jun-2012
	 	1	 	T-W-2b	  	***	 	36987

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 4	  	APR54184

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per
	 	 Serial Number

	 Jul-2012
	 	1	 	T-W-2b	  	***	 	36684
					
	 Jul-2012
	 	1	 	T-W-2b	  	***	 	36990
					
	 Aug-2012
	 	1	 	T-W-2b	  	***	 	36685
					
	 Aug-2012
	 	1	 	T-W-2b	  	***	 	36992
					
	 Sep-2012
	 	1	 	T-W-2b	  	***	 	36686
					
	 Sep-2012
	 	1	 	T-W-2b	  	***	 	36994
					
	 Oct-2012
	 	1	 	T-W-2b	  	***	 	36687
					
	 Oct-2012
	 	1	 	T-W-2b	  	***	 	36997
					
	 Nov-2012
	 	1	 	T-W-2b	  	***	 	37005
					
	 Nov-2012
	 	1	 	T-W-2b	  	***	 	37003
					
	 Dec-2012
	 	1	 	T-W-2b	  	***	 	37006
					
	 Dec-2012
	 	1	 	T-W-2b	  	***	 	37009
					
	 Jan-2013
	 	1	 	T-W-2b	  	***	 	36891
					
	 Jan-2013
	 	1	 	T-W-2b	  	***	 	36634
					
	 Feb-2013
	 	1	 	T-W-2b	  	***	 	36635
					
	 Mar-2013
	 	1	 	T-W-2b	  	***	 	36892
					
	 Mar-2013
	 	1	 	T-W-2b	  	***	 	36638
					
	 Apr-2013
	 	1	 	T-W-2b	  	***	 	36893
					
	 May-2013
	 	1	 	T-W-2b	  	***	 	36894
					
	 Jun-2013
	 	2	 	T-W-2b	  	***	 	36895, 36896
					
	 Jul-2013
	 	1	 	T-W-2b	  	***	 	36897
					
	 Aug-2013
	 	2	 	T-W-2b	  	***	 	36898, 36905
					
	 Sep-2013
	 	2	 	T-W-2b	  	***	 	36907, 36911
					
	 Oct-2013
	 	2	 	T-W-2b	  	***	 	36912, 36914
					
	 Nov-2013
	 	1	 	T-W-2b	  	***	 	36915
					
	 Dec-2013
	 	2	 	T-W-2b	  	***	 	36917, 36919
					
	 Jan-2014
	 	1	 	T-W-2b	  	***	 	36920
					
	 Jan-2014
	 	1	 	T-W-2b	  	***	 	36909
					
	 Feb-2014
	 	1	 	T-W-2b	  	***	 	36922
					
	 Feb-2014
	 	1	 	T-W-2b	  	***	 	36910
					
	 Mar-2014
	 	1	 	T-W-2b	  	***	 	36943
					
	 Mar-2014
	 	2	 	T-W-2b	  	***	 	36927, 36925
					
	 Apr-2014
	 	1	 	T-W-2b	  	***	 	36944
					
	 Apr-2014
	 	1	 	T-W-2b	  	***	 	36929
					
	 May-2014
	 	1	 	T-W-2b	  	***	 	36946
					
	 Jun-2014
	 	1	 	T-W-2b	  	***	 	36968
					
	 Jun-2014
	 	1	 	T-W-2b	  	***	 	36949
					
	 Jul-2014
	 	1	 	T-W-2b	  	***	 	36951
					
	 Aug-2014
	 	2	 	T-W-2b	  	***	 	36928, 36952
					
	 Aug-2014
	 	1	 	T-W-2b	  	***	 	37019
					
	 Sep-2014
	 	1	 	T-W-2b	  	***	 	36954
					
	 Oct-2014
	 	1	 	T-W-2b	  	***	 	36957
					
	 Oct-2014
	 	1	 	T-W-2b	  	***	 	37034
					
	 Nov-2014
	 	1	 	T-W-2b	  	***	 	36971
					
	 Dec-2014
	 	1	 	T-W-2b	  	***	 	37037
					
	 Jan-2015
	 	1	 	T-W-2b	  	***	 	36899
					
	 Feb-2015
	 	1	 	T-W-2b	  	***	 	36901
					
	 Mar-2015
	 	2	 	T-W-2b	  	***	 	36902, 36936
					
	 Apr-2015
	 	2	 	T-W-2b	  	***	 	36649, 36652
					
	 May-2015
	 	1	 	T-W-2b	  	***	 	36903
					
	 Jun-2015
	 	1	 	T-W-2b	  	***	 	36906
					
	 Jun-2015
	 	1	 	T-W-2b	  	***	 	36654
					
	 Jul-2015
	 	1	 	T-W-2b	  	***	 	36655
					
	 Aug-2015
	 	1	 	T-W-2b	  	***	 	36656
					
	 Sep-2015
	 	1	 	T-W-2b	  	***	 	36657
					
	 Oct-2015
	 	1	 	T-W-2b	  	***	 	36937

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 5	  	APR54184

 Table 1 to 
 Purchase Agreement No. 1810 
 Aircraft Information Table 

 

									
	 Delivery

Date
	 	 Number of

Aircraft
	 	 Aircraft

Block
	  	 Escalation Estimate

Adv Payment Base
 Price Per A/P
	 	 Serial Number

	 Dec-2015
	 	1	 	T-W-2b	  	***	 	36941
					
	 Jan-2016
	 	1	 	T-W-2b	  	***	 	36650
					
	 Feb-2016
	 	1	 	T-W-2b	  	***	 	36904
					
	 Feb-2016
	 	1	 	T-W-2b	  	***	 	36932
					
	 Mar-2016
	 	1	 	T-W-2b	  	***	 	36651
					
	 Apr-2016
	 	1	 	T-W-2b	  	***	 	36653
					
	 Apr-2016
	 	1	 	T-W-2b	  	***	 	36938
					
	 May-2016
	 	1	 	T-W-2b	  	***	 	36658
					
	 May-2016
	 	1	 	T-W-2b	  	***	 	36939
					
	 Jun-2016
	 	1	 	T-W-2b	  	***	 	36916
					
	 Jul-2016
	 	1	 	T-W-2b	  	***	 	36921
					
	 Jul-2016
	 	1	 	T-W-2b	  	***	 	36945
					
	 Aug-2016
	 	1	 	T-W-2b	  	***	 	36678
					
	 Aug-2016
	 	1	 	T-W-2b	  	***	 	36661
					
	 Sep-2016
	 	1	 	T-W-2b	  	***	 	36977
					
	 Sep-2016
	 	1	 	T-W-2b	  	***	 	36923
					
	 Oct-2016
	 	1	 	T-W-2b	  	***	 	36666
					
	 Nov-2016
	 	1	 	T-W-2b	  	***	 	36670

  

					
	 SWA - PA1810
	  		  	SA-70
		  	Page 6	  	APR54184Memorandum of Understanding

 Exhibit 10.1 
 IN THE COURT OF COMMON PLEAS 
 OF DELAWARE COUNTY, PENNSYLVANIA 

 

					
	KEVIN EPOCH and SANJAY ISRANI,	  	)	  	 Case No. 10-13223

	Individually and On Behalf of All Others	  	)	  	
	Similarly Situated,	  	)	  	 CLASS ACTION

		  	)	  	
	 Plaintiffs,
	  	)	  	
		  	)	  	
	 v.
	  	)	  	
		  	)	  	
	PENN VIRGINIA GP HOLDINGS, L.P.,	  	)	  	
	PVG GP, LLC, WILLIAM H. SHEA, JR.,	  	)	  	
	A. JAMES DEARLOVE, ROBERT HALL,	  	)	  	
	JOHN VAN RODEN, JONATHAN	  	)	  	
	WELLER, PENN VIRGINIA RESOURCE	  	)	  	
	PARTNERS, L.P., PENN VIRGINIA	  	)	  	
	RESOURCES GP, LLC and PVR	  	)	  	
	RADNOR, LLC,	  	)	  	
		  	)	  	
	 Defendants.
	  		  	
			
	ANITA SCHEIFELE, Individually and on	  	)	  	 Civil Action — LAW

	Behalf of all others similarly situated	  	)	  	 Case No. 10-013368

		  	)	  	
	 Plaintiff,
	  	)	  	
		  	)	  	
	 v.
	  	)	  	
		  	)	  	
	WILLIAM SHEA, A. JAMES DEARLOVE,	  	)	  	
	ROBERT HALL, JOHN VAN RODEN,	  	)	  	
	JONATHAN WELLER, PENN VIRGINIA	  	)	  	
	GP HOLDINGS, L.P., PVG GP, LLC,	  	)	  	
	PENN VIRGINIA RESOURCE	  	)	  	
	PARTNERS, L.P., PENN VIRGINIA	  	)	  	
	RESOURCE GP, LLC, and	  	)	  	
	PVR RADNOR, LLC	  	)	  	
		  	)	  	
	 Defendants.
	  	)	  	

 MEMORANDUM OF UNDERSTANDING 

WHEREAS, there are putative class action lawsuits currently pending in the Court of Common Pleas of Delaware County, Pennsylvania (the
“Court”), styled Epoch v. Penn Virginia GP Holdings, L.P., et al., No. 10-13223, and Scheifele v. Shea, No. 10-13368 (the “Actions”), 

  
 - 1 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
brought on behalf of the public unitholders of Penn Virginia GP Holdings, L.P. (“PVG” or the “Company”) and named as defendants PVG, its general partner PVG GP, LLC (“PVG
GP”), Penn Virginia Resource Partners (“PVG”), L.P., Penn Virginia Resources GP, LLC, PVR Radnor LLC and PVG GP’s Board of Directors (the “Board” or the “Individual Defendants”) consisting of William H. Shea,
Jr., A. James Dearlove, Robert Hall, John C. van Roden, Jr., and Jonathan B. Weller (collectively the “Defendants”); 

WHEREAS, the Actions challenge the merger of PVG and PVR pursuant to which PVR will acquire PVG in exchange for 0.98 partnership units of
PVR for each PVG limited partnership unit, which merger was first announced on September 21, 2010 (the “Merger”); 
 WHEREAS, although Defendants deny the allegations asserted in the complaints in the Actions, counsel for the Defendants and plaintiffs’ counsel in the Actions (“Plaintiffs’ Counsel”)
have engaged in arms’-length negotiations concerning a possible settlement of the Actions; 
 WHEREAS, Defendants agreed to
provide certain discovery and made certain documents available to counsel for Plaintiffs in order for them to evaluate the allegations and claims made in the Actions; 
 WHEREAS, counsel for all parties to the Actions have reached an agreement in principle, set forth in this Memorandum, providing for the settlement of the Actions between and among Plaintiffs, on behalf of
themselves and the putative Class (as defined below), and Defendants, on the terms and subject to the conditions set forth below subject to the approval of the Court (the “Settlement”); 

WHEREAS, Defendants have consented to the conditional certification of the Actions as a class action pursuant to Pennsylvania Rules of
Civil Procedure 1710-1711 for settlement purposes only, as defined in ¶5(b) hereinafter; 
 WHEREAS, Plaintiffs’
Counsel has determined that a settlement of the Actions on the terms reflected in this Memorandum is fair, reasonable, adequate, and in the best interests of Plaintiffs and the putative Class; 

  
 - 2 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 WHEREAS, Defendants, solely to avoid the costs, disruption and distraction of further
litigation, and without admitting the validity of any allegations made in the Actions, or any liability with respect thereto, have concluded that it is desirable that the claims against them be settled and dismissed on the terms reflected in this
Memorandum; and 
 WHEREAS, Defendants maintain that they have not committed any breach of fiduciary duty, any breach of any
applicable agreement, any disclosure violation or any other breach or violation whatsoever, including, but not limited to, in connection with the authorization and/or consummation of the Merger and each agreement related thereto, or in connection
with any disclosures regarding the Merger or related agreement, including but not limited to the Joint Proxy Statement and Prospectus dated December 23, 2010 (the “Joint Proxy Statement”); 

NOW, THEREFORE, as a result of the foregoing and the negotiations among counsel for the parties, the parties to the Action have agreed as
follows: 
 1. In consideration for the Settlement and dismissal with prejudice of the Actions and the releases provided herein,
PVG and PVR will supplement their Joint Proxy Statement with the disclosures recommended by Plaintiffs and as set forth on Exhibit A hereto (the “Supplemental Disclosures”). 

2. Defendants will provide Plaintiffs’ Counsel with confirmatory discovery as set forth in Paragraph 7 and as may be reasonably
requested to confirm the fairness and adequacy of the Settlement and the disclosures relating to the Merger (the “Settlement-Related Proceedings”). 
 3. The parties to the Action will attempt in good faith and use their best efforts to agree upon, execute and present to the Court within forty-five (45) days a formal stipulation of settlement
(“Stipulation”) and such other documents as may be necessary and appropriate to obtain the final approval by the Court of the Settlement and the dismissal with prejudice of the Actions in the manner contemplated herein and by the
Stipulation. 

  
 - 3 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 4. Pending the negotiation and execution of the Stipulation, all proceedings in the Actions,
except for Settlement-Related Proceedings, shall be stayed. Other than seeking approval of the Settlement, the certification of the Settlement Class, or as permitted herein or as may be expressly required by the Court, Plaintiffs and
Plaintiffs’ Counsel agree that they will not take any action or make any filings in the Actions, including, but not limited to, filing any motion or pleading of any kind seeking to enjoin, either temporarily or permanently, the Merger of PVG
and PVR or the unitholder meetings to vote upon and approve the Merger. Plaintiffs shall have an extension of time to respond to Defendants Preliminary Objections or Motions to Dismiss pending the Settlement Related proceedings. The Stipulation
shall provide that all proceedings in the Actions, except for Settlement Related Proceedings, shall be stayed until the Settlement Related Proceedings are concluded. 
 5. The Stipulation shall provide for, among other things, the following: 
 (a) The
consolidation of the Actions pursuant to Pennsylvania Rule of Civil Procedure 213 and the consolidated Actions shall proceed under the caption of the earlier filed Action, Epoch at No. 10-13223; 

(b) the conditional certification of the Actions as a class action pursuant to Pennsylvania Rules of Civil Procedure 1710-1711 on behalf
of a Class consisting of all common unitholders of PVG from September 21, 2010 through and including the date of the closing of the Merger, including any and all of their respective successors in interest, predecessors, representatives,
trustees, executors, administrators, heirs, assigns or transferees, immediate and remote, and any person or entity acting for or on behalf of, or claiming under, any of them, and each of them (the “Class”). Excluded from the Class are
Defendants, members of the immediate family of any Defendant, any entity in which a Defendant has or had a controlling interest, 

  
 - 4 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
officers of PVG and the legal representatives, heirs, successors or assigns of any such excluded person, and any individual or entity excluded from the Class pursuant to Pennsylvania Rule of
Civil Procedure 1711. Plaintiffs will not oppose Defendants’ request that the Court approve a non-opt-out Class for settlement purposes; provided, however, that the parties hereto agree that, if such request is denied, the Settlement will be
terminable by Defendants if potential Class members owning a specified number of PVG units, to be determined and agreed upon by the parties, exclude themselves from the settlement Class; 

(c) for the complete discharge, dismissal with prejudice on the merits, release and settlement, to the fullest extent permitted by law,
of the Actions and all known and unknown claims of every nature and description whatsoever, whether or not concealed or hidden, against Defendants and their respective predecessors, successors-in-interest, parents, subsidiaries, partners,
affiliates, representatives, agents, trustees, executors, heirs, spouses, marital communities, assigns or transferees and any person or entity acting for or on behalf of any of them and each of them, and each of their predecessors,
successors-in-interest, parents, subsidiaries, affiliates, officers, directors, representatives, agents, trustees, executors, heirs, spouses, marital communities, assigns or transferees and any person or entity acting for or on behalf of any of them
and each of them (including, without limitation, any investment bankers, accountants, insurers, reinsurers or attorneys and any past, present or future officers, directors and employees of any of them) (collectively, the “Released
Parties”) that have been or could have been asserted by Plaintiffs or any member of the Class in their capacity as unitholders, including class, individual or other claims, in state or federal court, based upon, arising from, or related in any
manner to the allegations, facts, events, transactions, acts, occurrences, statements, representations, misrepresentations, omissions or any other matter, thing or cause whatsoever, or 

  
 - 5 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
any series thereof, embraced, involved, referred to, set forth, arising out of, or otherwise related to, (i) any claims or allegations, made in any pleading filed in any of the Actions,
(ii) any claim that the Defendants acted in bad faith in connection with the Merger; (iii) the Merger, including, but not limited to, the fiduciary or contractual obligations of any of the Defendants or Released Parties in connection with
the Merger, the negotiations preceding the Merger and the agreements entered into in connection with the Merger (the “Agreements”) or the disclosure obligations of any of the Defendants or Released Parties in connection with the Merger;
(iv) the Agreements; (v) the Joint Proxy Statement (including any amendments and revisions thereto) and the Supplemental Disclosures; (vi) all public statements regarding the Merger, the Agreements and/or the Joint Proxy Statement;
and/or (vii) any actions omissions, or events that in any way related to approval, consideration, consummation, or disclosure obligations relating to the Merger or the Agreements (collectively, the “Settled Claims”); provided,
however, that the Settled Claims shall not include the right of the plaintiffs or any members of the Class to enforce in the Court the terms of the Stipulation; 
 (d) that Defendants and the Released Persons release plaintiffs, members of the Class and their counsel, from all claims arising out of the instituting, prosecution, settlement or resolution of the
Actions, provided however, that the Defendants and Released Persons shall retain the right to enforce in the Court the terms of the Stipulation or this Memorandum; 
 (e) that Defendants have denied, and continue to deny, that any of them have committed or have threatened to commit any violations of law or breaches of duty to the plaintiffs, the Class or anyone else;

 (f) that Defendants are entering into the Settlement solely because it will eliminate the uncertainty, distraction, burden
and expense of further litigation; 

  
 - 6 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 (g) that in the event the Settlement does not become final for any reason, Defendants
reserve the right to prosecute pending motions in the Actions and to oppose certification of any class in future proceedings; and 
 (h) that subject to the Order of the Court, pending final determination of whether the Settlement should be approved, plaintiffs and all members of the Class, and any of them, are barred and enjoined from
commencing, prosecuting, instigating or in any way participating in the commencement or prosecution of any action asserting any Settled Claims, either directly, representatively, derivatively or in any other capacity, against any Released Person.

 6. The Settlement is expressly conditioned upon: (a) PVG and PVR obtaining the requisite approval of their respective
common unitholders as contemplated in the Merger Agreement; (b) the consummation of the Merger; (c) the drafting and execution of the Settlement Documents, which the parties agree to undertake in good faith; (d) the conclusion by
Plaintiffs and their Counsel after completion of appropriate confirmatory discovery in the Actions reasonably satisfactory to Plaintiffs’ Counsel (as described in Paragraph 7 below) that the proposed Settlement is fair and reasonable;
(e) the final certification of the Settlement Class; (f) entry of a judgment by the Court approving all material terms of the Settlement as set forth in the Stipulation; (g) entry of an order of dismissal with prejudice of the Actions
that has become final and no longer subject to further appeal or review by lapse of time or otherwise and without awarding costs to any party except pursuant to Paragraph 15; and (h) none of the material terms of the Settlement as set
forth in the Stipulation being modified pursuant to any appeal or review. This MOU shall be voidable, at the discretion of Defendants, if the vote of either PVG or PVR’s unitholders is enjoined on the basis of any disclosure-based claims or any
other claims, in any 

  
 - 7 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
lawsuit. This MOU shall be null and void and of no force and effect if (i) any of these conditions are not met, (ii) the Merger is not completed for any reason, or
(iii) Plaintiffs’ Counsel in the Actions determine, following completion of confirmatory discovery, that the Settlement is not fair and reasonable. If such determination is made, Plaintiffs’ Counsel may use any of the confirmatory
discovery to pursue any appropriate legal proceedings. In such event, this MOU shall not be deemed to prejudice in any way the positions of the parties with respect to the Actions, or to constitute an admission of fact by any party, and shall not
entitle any party to recover any costs or expenses incurred in connection with the implementation of this MOU. 
 7. The parties
shall have 45 days following the execution of this MOU to complete confirmatory discovery. It is understood that, absent good cause, such confirmatory discovery shall be as follows: (i) the depositions of a member of the conflicts committee of
PVG GP and a representative of Credit Suisse knowledgeable about the work performed for the conflicts committee by Credit Suisse and (ii) the production of certain agreed-upon documents in addition to those already provided by Defendants.
Plaintiffs acknowledge that Defendants have already provided Plaintiffs with relevant non-privileged documents which are to be considered part of the confirmatory discovery. Plaintiffs agree in good faith in determining what, if any, additional
documents are necessary to conduct confirmatory discovery, and Defendants agree to consider any such request in good faith. Also, the parties shall seek the entry of a confidentiality order by the Court in the Actions, which, among other terms,
provides that the information previously provided to plaintiffs’ counsel and pursuant to the confirmatory discovery shall only be used in connection with the settlement approval process, that such discovery shall not be disseminated except to
any third-party consultant who counsel reasonably believes needs to review such information and who first agrees to be bound by the confidentiality order, and requires that such 

  
 - 8 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
discovery be returned or destroyed within 30 days of the date the Settlement, if approved, becomes final and non-appealable. 

8. The releases contemplated by the Settlement extend to claims that Defendants and Plaintiffs for themselves and on behalf of the Class
do not know or suspect to exist at the time of the release, which if known, might have affected the decision to enter into the release or to object or not object to the Settlement (the “Unknown Claims”). Plaintiffs, Defendants and each
member of the Settlement Class shall be deemed to waive, and shall waive and relinquish to the fullest extent permitted by law any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the
United States, or principle of common law, which governs or limits a person’s release of Unknown Claims; further (i) the plaintiffs, for themselves and on behalf of the Settlement Class and defendants shall be deemed to waive, and shall
waive and relinquish, to the fullest extent permitted by law, the provisions, rights and benefits of Section 1542 of the California Civil Code which provides as follows: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OR EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR (ii) Plaintiffs, for themselves and on behalf of the Settlement Class and Defendants also shall be deemed to waive any and all provisions, rights and benefits conferred by any law of any state or
territory of the United States, or principle of common law, which is similar, comparable or equivalent to California Civil Code § 1542; and (iii) Plaintiffs, for themselves and on behalf of the Settlement Class acknowledge that members of
the Settlement Class may discover facts in addition to or different from those that they now know or believe to be 

  
 - 9 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
true with respect to the subject matter of this release, but that it is their intention, as Plaintiffs and on behalf of the Settlement Class to fully, finally and forever settle and release any
and all claims released hereby known or unknown, suspected or unsuspected, which now exist, or heretofore existed, or may hereafter exist, and without regard to the subsequent discovery or existence of such additional or different facts. Plaintiffs
and Defendants acknowledge, and the members of the Settlement Class shall be deemed by operation of the entry of a final order and judgment approving the Settlement to have acknowledged, that the foregoing waiver was separately bargained for and is
a key element of the Settlement of which this release is a part. 
 9. If any action is filed in state or federal court
asserting claims that are related to the subject matter of the Actions prior to final court approval of the proposed Settlement, plaintiffs shall cooperate with the defendants in obtaining the dismissal or withdrawal of such related litigation,
including where appropriate joining in any motion to dismiss such litigation. 
 10. This Memorandum will be executed by counsel
for the parties to the Actions, each of whom represents and warrants that they have the authority from their client(s) to enter into this Memorandum and bind their clients thereto, that plaintiffs are the only holders and owners of their claims and
causes of action asserted in the Actions, and that none of plaintiffs’ claims or causes of action referred to in any complaint in the Actions or this Memorandum have been assigned, encumbered or in any manner transferred in whole or in part.

 11. This Memorandum, the Stipulation and the Settlement shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania without regard to Pennsylvania’s principles governing choice of law. The parties agree that any dispute arising out of or relating in any way to this Memorandum, the Stipulation or the Settlement shall not be

  
 - 10 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
litigated or otherwise pursued in any forum or venue other than this Court, and the parties expressly waive any right to demand a jury trial as to any such dispute. 

12. This Memorandum may be modified or amended only by a writing, signed by all of the signatories hereto, that refers specifically to
this Memorandum. 
 13. The provisions contained in this Memorandum shall not be deemed a presumption, concession or admission
by any Defendant of any fault, liability or wrongdoing as to any facts or claims that have been or might be alleged or asserted in the Actions, or any other action or proceeding that has been, will be, or could be brought, and shall not be
interpreted, construed, deemed, invoked, offered, or received in evidence or otherwise used by any person in the Actions, or in any other action or proceeding, whether civil, criminal or administrative, for any purpose other than as provided
expressly herein. 
 14. This Memorandum shall be binding upon and inure to the benefit of the parties and their respective
agents, executors, heirs, successors and assigns. 
 15. Following the negotiation of all other terms of the Settlement set
forth herein, the parties began arms-length negotiations concerning the amount of attorneys’ fees, costs, and expenses to be paid to Plaintiffs’ Counsel, subject to the approval of the Court. Plaintiffs agree to seek an award of attorneys
fees, costs, and expenses in an amount not to exceed $400,000. PVG, on behalf of itself and for the benefit of the other Defendants in the Actions, agrees to pay such fees, costs and expenses as may be awarded by this Court up to the foregoing
amount, subject to the terms and conditions of this Memorandum, the terms and conditions of the Stipulation contemplated hereby and final approval of the Settlement by the Court. Any failure by the Court to approve the amount of such fees shall not
affect the validity of the Settlement. PVG or its successor or insurer shall pay the fees and expenses award to plaintiffs’ counsel in the 

  
 - 11 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
Action within ten (10) business days of the date on which the Court’s order approving the settlement and dismissing the Actions with prejudice becomes final. In the event that such
order is reversed or modified on appeal, Plaintiffs’ Counsel shall refund to Defendants the advanced amount and all interest accrued or accumulated thereon. Except as provided herein, the Released Persons shall bear no other expenses, costs,
damages, or fees alleged or incurred by the named plaintiff, by any member of the Class, or by any of their attorneys, experts, advisors, agents or representatives. 
 16. The Parties will present the Settlement to the Court for hearing and approval as soon as practicable following appropriate notice to the Class. Defendants shall be responsible for providing notice of
the Settlement to the members of the Class. Defendants shall pay all costs and expenses incurred in providing notice of the Settlement to the members of the Class, with the understanding that notice shall be effected by mail unless otherwise
provided by law. 
 17. The “Effective Date” of the settlement of the Actions shall be the date on which the Order of
the Court approving the settlement of the Actions becomes final and no longer subject to further appeal or review, whether by exhaustion of any possible appeal, writ of certiorari, lapse of time or otherwise. 

18. This Memorandum may be executed in any number of actual or telecopied counterparts and by each of the different parties on several
counterparts, each of which when so executed and delivered will be an original. The executed signature page(s) from each actual or telecopied counterpart may be joined together and attached and will constitute one and the same instrument.

  
 - 12 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 IN WITNESS WHEREOF, the parties have executed this Memorandum effective as of the date set
forth below. 
 Dated: February 1, 2011 
  

					
	OF COUNSEL:	  	RYAN & MANISKAS, LLP
			
	ROBBINS GELLER RUDMAN & DOWD	  		 	
	LLP	  		 	
	Darren J. Robbins	  	By	 	         /s/ Richard A. Maniskas

	Randall J. Baron	  		 	    Katharine M. Ryan (PA Bar I.D. 42184)
	A. Rick Atwood, Jr.	  		 	    Richard A. Maniskas (PA Bar I.D. 85942)
	David T. Wissbroecker	  		 	    995 Old Eagle School Road, Suite 311
	David A. Knotts	  		 	    Wayne, PA 19087
	Eun Jin Lee	  		 	    (484) 588-5516
	655 West Broadway, Suite 1900	  		 	
	San Diego, CA 92101	  		 	    Attorneys for Plaintiff
	(619) 231-1058	  		 	    Kevin Epoch, Individually and on
		  		 	    Behalf of All Others Similarly Situated
	THE BRISCOE LAW FIRM, PLLC	  		 	
	Willie C. Briscoe	  		 	
	8117 Preston Road, Suite 300	  		 	
	Dallas, TX 75225	  		 	
	(214) 706-9314	  		 	
			
	POWERS TAYLOR LLP	  		 	
	Patrick W. Powers	  		 	
	Campbell Centre II	  		 	
	8150 North Central Expressway, Suite 1575	  		 	
	Dallas, TX 75206	  		 	
			
	WOLF HALDENSTEIN ADLER	  		 	
	FREEMAN & HERZ, LLP	  		 	
	Gregory M. Nespole	  		 	
	270 Madison Avenue	  		 	
	New York, NY 10016	  		 	
	(212) 545-4600	  		 	

  
 - 13 -

  
  
 MEMORANDUM OF UNDERSTANDING 

					
	OF COUNSEL:	  	PRIBANIC & PRIBANIC
			
	LEVI & KORSINSKY LLP	  		 	
	Joseph Levi	  		 	
	30 Broad Street, 15th Floor	  	By	 	         /s/ Vincent A. Coppola

	New York, NY 10004	  		 	    Vincent A. Coppola (PA Bar I.D. 50181)
	(212) 363-7500	  		 	    513 Court Place
		  		 	    Pittsburgh, PA 15219
		  		 	    (412) 281-8844
			
		  		 	    Attorneys for Plaintiff
		  		 	    Anita Scheifele
		
	OF COUNSEL:	  	DiORIO & SERENI, LLP
			
	PRICKETT, JONES & ELLIOTT, P.A.	  		 	
	James L. Holzman (DE Bar I.D. 663)	  		 	
	1310 King Street, Box 1328	  	By	 	         /s/ Mark A. Sereni

	Wilmington, DE 19899	  		 	    Mark A. Sereni (PA Bar I.D. 50090)
	(302) 888-6500	  		 	    Front & Plum Streets
		  		 	    Media, PA 19063
		  		 	    (610) 565-5700
			
		  		 	    Attorneys for Defendants
		  		 	    Penn Virginia GP Holdings, L.P.,
		  		 	    PVG GP, LLC,
		  		 	    A. James Dearlove, Robert J. Hall,
		  		 	    John C. Van Roden, Jr.,
		  		 	    Jonathan B. Weller
		
	OF COUNSEL:	  	ECKELL, SPARKS, LEVY, AUERBACH,
		  	MONTE, SLOANE, MATTHEWS &
	RICHARDS, LAYTON & FINGER, P.A.	  	AUSLANDER, P.C.
	Srinivas M. Raju (DE Bar I.D. 3313)	  		 	
	One Rodney Square	  		 	
	920 N. King Street	  	By	 	         /s/ Patrick T. Henigan

	Wilmington, DE 19801	  		 	    Patrick T. Henigan (PA Bar I.D. 49448)
	(302) 651-7700	  		 	    344 W. Front Street
		  		 	    Media, PA 19063
		  		 	    (610) 565-3700
			
		  		 	    Attorneys for Penn Virginia Resource
		  		 	    Partners, L.P., Penn Virginia Resources
		  		 	    GP, LLC, PVR Radnor, LLC

  
 - 14 -

  
  
 MEMORANDUM OF UNDERSTANDING 

					
	OF COUNSEL:	  	SWARTZ CAMPBELL LLC
			
	PROCTOR HEYMAN LLP	  		 	
	Vernon R. Proctor (DE Bar I.D. 1019)	  		 	
	1116 North West Street	  	By	 	         /s/ Andrew J. Reilly

	Wilmington, DE 19801	  		 	    Andrew J. Reilly (PA Bar I.D. 55076)
	(302) 472-7301	  		 	    115 North Jackson Street
		  		 	    Media, PA 19063
		  		 	    (610) 566-9222
			
		  		 	    Attorneys for William H. Shea, Jr.

  
 - 15 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 EXHIBIT A 
 In connection with the proposed settlement of the litigation, the Partnership and Holdings agreed to supplement the following disclosures in the joint proxy statement/prospectus (new text is underlined,
and deleted text is stricken through, other than the revised tables set forth in paragraphs 13 through 17 below): 
 1. The disclosure in the first full paragraph on page 12 of the joint proxy statement/prospectus under the heading “Summary—Interests of Certain Persons in the Merger” is revised as
follows: 
 Senior management of the Partnership GP and Holdings GP prepared certain projections with respect to
the Partnership’s and Holdings’ future financial and operating performance on a stand-alone basis. These projections were provided to TudorPickering and Credit Suisse for use in connection with the preparation of their opinions to
the Partnership Conflicts Committee and the Holdings Conflicts Committee, respectively, and related financial advisory services. Please read “Special Factors—Certain Financial Projections Prepared by Management.” 

2. The disclosure in the last paragraph on page 27 of the joint proxy statement/prospectus under the heading “Risk
Factors—Risks Related to the Merger and Related Matters” is revised as follows: 
 Senior management of
the Partnership GP and Holdings GP prepared certain projections with respect to the Partnership’s and Holdings’ future financial and operating performance on a stand-alone basis. These projections were provided to TudorPickering and
Credit Suisse for use in connection with the preparation of their opinions to the Partnership Conflicts Committee and the Holdings Conflicts Committee, respectively, and related financial advisory services. Please read “Special
Factors—Certain Financial Projections Prepared by Management.” 
 3. The disclosure in the last
paragraph beginning on page 30 of the joint proxy statement/prospectus under the heading “Risk Factors—Tax Risks Related to the Merger” is revised as follows: 

The U.S. federal income tax consequences of the merger depend on determinations of fact and interpretations of complex
provisions of U.S. federal income tax law. The U.S. federal income tax rules are constantly under review by persons involved in the legislative process, the IRS and the U.S. Treasury Department, frequently resulting in revised interpretations of
established concepts, statutory changes, revisions to Treasury Regulations and other modifications and interpretations. Any modification to the U.S. federal income tax laws or interpretations thereof may or may not be applied retroactively and could
change the U.S. federal income tax treatment of the merger to Partnership unitholders and Holdings unitholders. For example, in 2010 the U.S. House of Representatives passed legislation relating to the taxation of “carried interests”
that would have treated transactions, such as the merger, occurring on or after an effective date of January 1, 2011, as a taxable exchange to a unitholder of a partnership such as Holdings. The U.S. Senate considered legislation during 2010
that would have had a similar effect.  

  
 - 16 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 
However, neither the legislation passed by the U.S. House of Representatives nor the legislation considered by the Senate regarding “carried interests” was enacted into law during
2010. The Partnership and Holdings are unable to predict whether this proposed legislation or any other proposals will ultimately be enacted, and if so, whether any such proposed legislation would be applied retroactively. 

4. The disclosure in the third full paragraph on page 36 of the joint proxy statement/prospectus under the heading
“Special Factors—Background of the Merger” is revised as follows: 
 On August 2, 2010, the
Holdings Conflicts Committee with representatives of Prickett Jones and Akin Gump in attendance, met to review elements of the proposed transaction and to interview Credit Suisse for the role of financial advisor to the Holdings Conflicts Committee.
Following the interview, the Holding Conflicts Committee and legal counsel discussed the presentations, experience and capabilities of the two financial advisors under consideration, and the Holdings Conflicts Committee decided to engage Credit
Suisse as its financial advisor. Representatives of Credit Suisse were then invited to return to the meeting, and the Holdings Conflicts Committee, with the assistance of its legal counsel and financial advisor, then reviewed and discussed the terms
of the Partnership Conflicts Committee’s proposal on behalf of the Partnership and discussed potential next steps with respect to the proposed transaction, as well as tax matters and certain pending tax legislation. The representatives of
Credit Suisse then excused themselves from the meeting. Following the departure of Credit Suisse, the members of the Holdings Conflicts Committee discussed whether the Holdings Conflicts Committee should consider and analyze alternative
transactions, including other forms of restructuring the Partnership’s equity capital (including eliminating only a portion of the IDRs, resetting the IDR thresholds and/or periodically waiving portions of the IDR payments), a possible sale or
merger with a third party or other strategic alternatives. Among other things, they discussed (i) the fact that the Holdings Board authorized the Holdings Conflicts Committee to consider only the proposed transaction, (ii) the possibility
of the Holdings Conflict Committee seeking broader authority from the Holdings Board, (iii) the fact that Penn Virginia Corporation had engaged in an unsuccessful sales process in 2009 to sell its majority interest in Holdings, and
(iv) the importance of concluding the process of analyzing the proposed and/or any alternative transaction as soon as reasonably practical to avoid any adverse consequences that might result from passage of certain proposed tax legislation as
well as distractions and uncertainties often associated with prolonged merger negotiations. After further discussion and deliberations, the Holdings Conflicts Committee determined that, unless circumstances changed, it would be in the best interest
of Holdings and its unaffiliated unitholders for the Holdings Conflicts Committee to consider only the proposed transaction, subject to the need of the members of the Holdings Conflicts Committee to abide by their fiduciary duties in the event of a
third party bid for Holdings. 
 5. The disclosure in the second full paragraph on page 40 of the joint proxy
statement/prospectus under the heading “Special Factors—Background of the Merger” is revised as follows: 

  
 - 17 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 On September 2, 2010, the Holdings Conflicts Committee, with
representatives of Credit Suisse, Prickett Jones and Akin Gump in attendance, met telephonically to discuss the status of negotiations. After discussions, the committee authorized the chairman of the Holdings Conflicts Committee to have another
meeting with the chairman of the Partnership Conflicts Committee and authorized the chairman of the Holdings Conflicts Committee to negotiate further and reach a compromise (if possible), which could not be below a 0.98 exchange ratio. Prior to
authorizing its negotiating approach, the Holdings Conflicts Committee considered alternative negotiating strategies (including potential counteroffers from the Partnership Conflicts Committee) and discussed with representatives of Credit Suisse an
implied exchange ratio analysis and various other metrics with respect to a 0.98 exchange ratio and that a 0.98 exchange ratio constituted the midpoint between the pending Partnership Conflicts Committee proposal of 0.96 exchange ratio and the
Holdings Conflicts Committee most recent counteroffer for a 1.0 exchange ratio. 
 6. The disclosure in the
last paragraph beginning on page 54 of the joint proxy statement/prospectus under the heading “Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 

In connection with the proposed merger, management of the Partnership GP and Holdings GP prepared projections for the
Partnership and Holdings on a stand-alone basis. Management initially prepared these projections, which we refer to as the “initial projections,” based on existing operations and specifically identified growth capital expenditures.
Management subsequently revised its projections to, among other things, reflect incremental EBITDA from identified growth capital expenditures in 2013 and 2014, maintenance capital and reserve replacement expenditure projections and to include
certain adjustments for phantom equity units. The initial projections, as revised, which we refer to as the “revised projections,” were approved by management for use by TudorPickering and Credit Suisse in connection with the preparation
of their opinions to the Partnership Conflicts Committee and the Holdings Conflicts Committee, respectively. The revised projections were discussed by Credit Suisse with the Holdings Conflicts Committee and by TudorPickering with the Partnership
Conflicts Committee. There have been no material changes in the Partnership’s or Holding’s operations or performance or in any of the projections or assumptions upon which they are based since the delivery of the opinions of Credit
Suisse on September 20, 2010, and TudorPickering on September 21, 2010, and no such material changes are currently anticipated to occur before the special meetings of Holdings or the Partnership. The summary of the revised projections set
forth below is included in this joint proxy statement/prospectus only because the revised projections were approved by management for use by the respective conflicts committees’ financial advisors and reviewed with the Partnership Conflicts
Committee and the Holdings Conflicts Committee in connection with the merger. 

  
 - 18 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 7. The disclosure in the last paragraph beginning on page 55 of the joint
proxy statement/prospectus under the heading “Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 
 The internal financial forecasts of the Partnership and Holdings upon which the projections are based are, in general, prepared solely for internal use to assist in various management decisions,
including with respect to capital budgeting. Such internal financial forecasts are inherently subjective in nature, susceptible to interpretation and accordingly such forecasts may not be achieved. The internal financial forecasts also reflect
numerous assumptions made by management, including material assumptions that may not be realized and are subject to significant uncertainties and contingencies, all of which are difficult to predict and many of which are beyond the control of the
preparing party. Accordingly, there can be no assurance that the assumptions made in preparing the internal financial forecasts upon which the projections are based will prove accurate. There will be differences between actual and forecasted
results, and the differences may be material. The risk that these uncertainties and contingencies could cause the assumptions to fail to be reflective of actual results is further increased due to the length of time in the future over which these
assumptions apply. The assumptions in early periods have a compounding effect on the projections shown for the later periods. Thus, any failure of an assumption to be reflective of actual results in an early period would have a greater effect on the
projected results failing to be reflective of actual events in later periods. You should consider the risks identified in the Partnership’s and Holdings’ most recent Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, which are
incorporated by reference into this joint proxy statement/prospectus, and the matters discussed elsewhere in this joint proxy statement/prospectus under “Forward-Looking Statements.” 

8. The disclosure in the first full paragraph on page 56 of the joint proxy statement/prospectus under the heading
“Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 

In developing the projections, management of the Partnership GP and Holdings GP made numerous material assumptions with
respect to the Partnership and Holdings, including: 
  

	 	•	 	 organic growth and acquisition opportunities and the amounts and timing of related costs and potential economic returns; 

 

	 	•	 	 the availability and cost of capital; 

  

	 	•	 	 the cash flow from existing assets and business activities, including assumptions related to royalty coal tonnage in the Partnership’s coal and
natural resources management segment and throughput volumes in the Partnership’s midstream segment; 

  

	 	•	 	 the commodity prices of natural gas, crude oil and composite NGLs, and the impact they have on the Partnership’s commodity related activities in
its midstream segment; and 

  

	 	•	 	 other general business, market and financial assumptions. 

  
 - 19 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 9. The disclosure in the third full paragraph on page 56 of the joint proxy
statement/prospectus under the heading “Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 
 Among other financial information, management of the Partnership GP and Holdings GP prepared management projections of distributable cash flow of the Partnership, distributions to Holdings, and
distributed cash flow of Holdings. The revised projections for the Partnership and Holdings were prepared based on the assumption that the Partnership would invest approximately $325 million on identified growth capital expenditures from
2010 through 2014. In addition, the revised projections were based on assumed annual maintenance capital expenditures by the Partnership in 2011 through 2014 in the range of $14 to $15 million and also assumed $24 million in annual reserve
replacement capital by the Partnership in 2011 through 2014. The reduction in distributable cash flow due to the assumption of such annual reserve replacement capital has been offset by a reduction in management’s targeted cash
distribution coverage ratio from approximately 1.20x to 1.05x. 
 10. The disclosure in the fourth full paragraph
on page 56 of the joint proxy statement/prospectus under the heading “Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 

The initial projections were initially provided to the Partnership Conflicts Committee in July 2010 and to the Holdings
Conflicts Committee in August 2010. The revised projections were provided to both conflicts committees’ financial advisors in September 2010. The revised projections were based on management assumptions as of the dates of their preparation and
have not been updated since that time. Distributable cash flow of the Partnership, distributions to Holdings, and distributed cash flow of Holdings as set forth in the table below may not be indicative of distributable cash flow,
distributions or distributed cash flow generated in the future. 
 11. The disclosure in the table on page 56
of the joint proxy statement/prospectus under the heading “Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 
 Revised Projections (1) 

  
 - 20 -

  
  
 MEMORANDUM OF UNDERSTANDING 

																	
	 	  	2011E	 	  	2012E	 	  	2013E	 	  	2014E	 
	 	  	($ in millions, except per unit amounts)	 
	 Partnership Distributable Cash Flow
	  	$	146	  	  	$	155	  	  	$	161	  	  	$	160	  
	 Partnership Distributable Cash Flow per Partnership Common Unit
	  	$	2.08	  	  	$	2.17	  	  	$	2.23	  	  	$	2.22	  
	 Distributions to Holdings on GP/IDR Interests
	  	$	34	  	  	$	38	  	  	$	40	  	  	$	40	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Distributions to Holdings on Partnership Common Units
	  	$	40	  	  	$	41	  	  	$	42	  	  	$	42	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Total Distributions Received by Holdings
	  	$	73	  	  	$	79	  	  	$	82	  	  	$	82	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Holdings Distributed Cash Flow
	  	$	71	  	  	$	77	  	  	$	80	  	  	$	80	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Distributed Cash Flow per Holdings Common Unit
	  	$	1.81	  	  	$	1.97	  	  	$	2.04	  	  	$	2.04	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

  

	(1)	Projections of distributable cash flow of the Partnership, distributions to Holdings, and distributed cash flow of Holdings are after assumed reserve
replacement capital, as well as assumed annual maintenance capital expenditures, for each of the projection periods presented, but they do not include the projected unidentified acquisitions. 

12. The disclosure in the first full paragraph on page 57 of the joint proxy statement/prospectus under the heading
“Special Factors—Certain Financial Projections Prepared by Management” is revised as follows: 

In order to show the potential impact on the revised projections of the projected unidentified acquisitions, we have
included below additional projections prepared by management after approval of the merger agreement by the parties that adjusts the revised projections set forth above respecting distributable cash flow of the Partnership to reflect the
inclusion of the projected unidentified acquisitions. The preparation of the additional projections set forth below requires various other assumptions in addition to assuming an average of $100 million annually in unidentified acquisitions through
2014 at purchase prices reflecting an 8.5x EBITDA multiple, financed with approximately equal amounts of debt and equity. The summary of the distributable cash flow of the Partnership below may not be indicative of its distributable
cash flow in the future. 
 13. The disclosure in the last full paragraph on page 70 of the joint proxy
statement/prospectus under the heading “Special Factors—Opinion of Credit Suisse Securities (USA) LLC—Financial Advisor to the Holdings Conflicts Committee—Selected Companies Analysis—the Partnership” is revised as
follows: 
 With respect to selected companies analysis for the Partnership, the selected coal company master
limited partnerships with publicly traded equity securities and associated financial data reviewed were: 

  
 - 21 -

  
  
 MEMORANDUM OF UNDERSTANDING 

													
	 	  	LP Distributed Yield (%)	 
	 	  	Current	 	 	2010E	 	 	2011E	 
	 Alliance Resource Partners, L.P.
	  	 	5.4	% 	 	 	5.5	% 	 	 	6.1	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Natural Resource Partners L.P.
	  	 	8.0	% 	 	 	8.0	% 	 	 	8.3	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Oxford Resource Partners, LP
	  	 	9.2	% 	 	 	9.2	% 	 	 	NA	  
		  	 	 	 	 	 	 	 	 	 	 	 

 14. The disclosure in the second full paragraph on page 71 of the joint proxy
statement/prospectus under the heading “Special Factors—Opinion of Credit Suisse Securities (USA) LLC—Financial Advisor to the Holdings Conflicts Committee—Selected Companies Analysis—the Partnership” is revised as
follows: 
 With respect to selected companies analysis for the Partnership, the selected midstream company
master limited partnerships with publicly traded equity securities and associated financial data reviewed were: 
  

													
	 	  	LP Distributed Yield (%)	 
	 	  	Current	 	 	2010E	 	 	2011E	 
	 Regency Energy Partners LP
	  	 	7.4	% 	 	 	7.4	% 	 	 	7.7	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 MarkWest Energy Partners, L.P.
	  	 	7.5	% 	 	 	7.5	% 	 	 	7.8	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Targa Resources Partners LP
	  	 	7.7	% 	 	 	7.8	% 	 	 	8.3	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Copano Energy, L.L.C.
	  	 	9.0	% 	 	 	9.0	% 	 	 	9.0	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 DCP Midstream Partners, LP
	  	 	7.4	% 	 	 	7.4	% 	 	 	7.8	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Western Gas Partners, LP
	  	 	5.5	% 	 	 	5.5	% 	 	 	6.2	% 
		  	 	 	 	 	 	 	 	 	 	 	 
	 Atlas Pipeline Partners, L.P.
	  	 	NM	(1) 	 	 	NM	  	 	 	NM	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Crosstex Energy, L.P.
	  	 	NM	  	 	 	NM	  	 	 	NM	  
		  	 	 	 	 	 	 	 	 	 	 	 
	 Quicksilver Gas Services LP
	  	 	6.9	% 	 	 	6.8	% 	 	 	7.5	% 
		  	 	 	 	 	 	 	 	 	 	 	 

  

	(1)	 NM means “not meaningful”

 15. The disclosure in the second full paragraph on page 72 of the joint proxy
statement/prospectus under the heading “Special Factors—Opinion of Credit Suisse Securities (USA) LLC—Financial Advisor to the Holdings Conflicts Committee—Selected Companies Analysis—Holdings” is revised as follows:

 With respect to selected companies analysis for Holdings, the selected limited partnerships with publicly
traded equity securities and associated financial data reviewed were: 

  
 - 22 -

  
  
 MEMORANDUM OF UNDERSTANDING 

																					
	 	  	Implied GP only Enterprise
Value as a multiple of
GP
only Distributed Cash Flow(1)	 	  	Current yield
spread to MLP
(bps)	 
	 	  	Current	 	 	2010E	 	  	2011E	 	  	Total	 	  	GP
Only	 
	 Energy Transfer Equity, L.P.
	  	 	17.4x	  	 	 	17.4x	  	  	 	16.5x	  	  	 	155	  	  	 	246	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Alliance Holdings GP, L.P.
	  	 	22.9	  	 	 	22.7	  	  	 	18.7	  	  	 	72	  	  	 	109	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 NuStar GP Holdings, LLC
	  	 	20.4	  	 	 	20.0	  	  	 	18.9	  	  	 	136	  	  	 	227	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Crosstex Energy, Inc.
	  	 	NM	(2) 	 	 	NM	  	  	 	NM	  	  	 	NM	  	  	 	NM	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Atlas Pipeline Holdings, L.P.
	  	 	NM	  	 	 	NM	  	  	 	NM	  	  	 	NM	  	  	 	NM	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Holdings at closing price on 9/17/10
	  	 	15.5	  	 	 	15.5	  	  	 	11.9	  	  	 	56	  	  	 	127	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Holdings at proposed exchange ratio
	  	 	19.0	  	 	 	19.0	  	  	 	14.5	  	  	 	117	  	  	 	240	  
		  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

  

	(1)	 Implied value of GP interest (enterprise value less market value of LP units) divided by GP only
cash flow net of assumed G&A. 

	(2)	 NM means “not meaningful” 

 16. The disclosure in the third full paragraph on page 72 of the joint proxy statement/prospectus under the heading “Special Factors—Opinion of Credit Suisse Securities (USA) LLC—Financial
Advisor to the Holdings Conflicts Committee—Selected Companies Analysis—Holdings” is revised as follows: 
 The selected companies analysis for Holdings did not include Enterprise GP Holdings, L.P., Inergy Holdings, L.P. or Buckeye GP Holdings L.P. because those partnerships were participants in recently
announced transactions considered in the selected transactions identified below. The selected companies analysis for Holdings indicated the following high, low, mean and median multiples for the selected limited partnerships with publicly traded
equity securities and for Holdings, as well as the following current yield to master limited partnership (total and general partner only): 
  

																									
	 Multiple Description
	  	High	 	  	Low	 	  	Mean	 	  	Median	 	  	Implied
Multiples
for
Holdings
Based
on
Closing
Price on
9/17/10	 	  	Implied
Multiples
for
Holdings
Based on
Proposed
Exchange
Ratio	 
	 Implied GP only Enterprise Value as a multiple of GP only Distributed Cash Flow
	  				  				  				  				  				  			
	 Current
	  	 	22.9x	  	  	 	17.4x	  	  	 	20.2x	  	  	 	20.4x	  	  	 	15.5x	  	  	 	19.0x	  
	 2010E
	  	 	22.7x	  	  	 	17.4x	  	  	 	20.0x	  	  	 	20.0x	  	  	 	15.5x	  	  	 	19.0x	  
	 2011E
	  	 	18.9x	  	  	 	16.5x	  	  	 	18.0x	  	  	 	18.7x	  	  	 	11.9x	  	  	 	14.5x	  
	 Current yield spread to Master Limited Partnership (bps)
	  				  				  				  				  				  			
	 Total
	  	 	155	  	  	 	72	  	  	 	121	  	  	 	136	  	  	 	56	  	  	 	117	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 GP only
	  	 	246	  	  	 	109	  	  	 	194	  	  	 	227	  	  	 	127	  	  	 	240	  
		  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

  
 - 23 -

  
  
 MEMORANDUM OF UNDERSTANDING 

 17. The disclosure in the first full paragraph on page 74 of the joint proxy
statement/prospectus under the heading “Special Factors—Opinion of Credit Suisse Securities (USA) LLC—Financial Advisor to the Holdings Conflicts Committee—Selected Transactions Analysis” is replaced as follows: 

The selected transactions analysis indicated the following: 

 

																													
	 	  	GP IDR Tiers and
Cash
Flows	 	 	Implied GP
only
multiple(1)	 	  	Current
yield spread
to MLP
(bps)	 
	 Selected Transactions:
	  	Current
IDR tier	 	 	Highest
IDR
tier	 	 	Current
cash
flow to
GP	 	 	Current	 	  	FY+1	 	  	Total	 	  	GP
only	 
	 Enterprise Products Partners, L.P./ Enterprise GP Holdings L.P.
	  	 	25	% 	 	 	25	% 	 	 	15	% 	 	 	27.0x	  	  	 	23.0x	  	  	 	210	  	  	 	264	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Inergy, L.P./ Inergy Holdings, L.P.
	  	 	49	% 	 	 	49	% 	 	 	28	% 	 	 	26.8	  	  	 	22.0	  	  	 	243	  	  	 	271	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Crestwood Midstream Partners II, LLC/ Quicksilver Gas Services GP LLC
	  	 	15	% 	 	 	50	% 	 	 	6	% 	 	 	96.8	  	  	 	77.9	  	  	 	332	  	  	 	685	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Buckeye Partners, L.P./ Buckeye GP Holdings L.P.
	  	 	30	% 	 	 	30	% 	 	 	21	% 	 	 	23.8	  	  	 	23.3	  	  	 	234	  	  	 	235	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Energy Transfer Equity, L.P./ Regency Energy Partners LP
	  	 	25	% 	 	 	50	% 	 	 	4	% 	 	 	47.6	  	  	 	44.6	  	  	 	623	  	  	 	623	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Magellan Midstream Partners, L.P./ Magellan Midstream Holdings, L.P.
	  	 	50	% 	 	 	50	% 	 	 	33	% 	 	 	12.8	  	  	 	12.1	  	  	 	197	  	  	 	197	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 MarkWest Energy Partners, L.P./ MarkWest Hydrocarbon, Inc.
	  	 	50	% 	 	 	50	% 	 	 	26	% 	 	 	19.5	  	  	 	14.4	  	  	 	115	  	  	 	NM	(2) 
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Enterprise GP Holdings L.P./ TEPPCO Partners, L.P.
	  	 	25	% 	 	 	25	% 	 	 	16	% 	 	 	18.1	  	  	 	17.6	  	  	 	42	  	  	 	52	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 ArcLight Capital Partners, LLC/Kelso & Company/Lehman Brothers Holdings Inc./ Buckeye GP Holdings L.P. (61.9%
interest)
	  	 	30	% 	 	 	30	% 	 	 	19	% 	 	 	24.6	  	  	 	19.4	  	  	 	232	  	  	 	233	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

  
 - 24 -

  
  
 MEMORANDUM OF UNDERSTANDING 

																													
	 Energy Transfer Equity, L.P./ Energy Transfer Partners, L.P. (50% interest)
	  	 	50	% 	 	 	50	% 	 	 	34	% 	 	 	23.7	  	  	 	17.6	  	  	 	192	  	  	 	192	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Plains All American Pipeline, L.P./ Pacific Energy Partners, L.P.
	  	 	15	% 	 	 	50	% 	 	 	3	% 	 	 	NM	  	  	 	NM	  	  	 	323	  	  	 	623	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 EPCO, Inc./ TEPPCO Partners, L.P.
	  	 	50	% 	 	 	50	% 	 	 	29	% 	 	 	16.3	  	  	 	15.7	  	  	 	17	  	  	 	17	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 EPCO, Inc./ Enterprise Products Partners L.P.
	  	 	25	% 	 	 	50	% 	 	 	10	% 	 	 	13.1	  	  	 	10.6	  	  	 	NM	  	  	 	NM	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Valero L.P./ Kaneb Services LLC
	  	 	30	% 	 	 	30	% 	 	 	10	% 	 	 	32.8	  	  	 	29.2	  	  	 	217	  	  	 	422	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Lehman Brothers/ Pacific Energy Partners, L.P.
	  	 	2	% 	 	 	50	% 	 	 	2	% 	 	 	32.5	  	  	 	31.4	  	  	 	63	  	  	 	406	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 ONEOK, Inc./ Northern Border Partners, L.P. (82.5% interest)
	  	 	25	% 	 	 	50	% 	 	 	7	% 	 	 	16.8	  	  	 	16.8	  	  	 	164	  	  	 	187	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Carlyle/Riverstone Global Energy and Power Fund II, L.P./ Buckeye Partners, L.P.
	  	 	30	% 	 	 	30	% 	 	 	16	% 	 	 	16.2	  	  	 	16.8	  	  	 	4	  	  	 	5	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Mean
	  	 	31	% 	 	 	42	% 	 	 	16	% 	 	 	28.0x	  	  	 	24.5x	  	  	 	200	  	  	 	294	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Median
	  	 	30	% 	 	 	50	% 	 	 	16	% 	 	 	23.8	  	  	 	18.5	  	  	 	203	  	  	 	235	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 High
	  	 	50	% 	 	 	50	% 	 	 	34	% 	 	 	96.8	  	  	 	77.9	  	  	 	623	  	  	 	685	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Low
	  	 	2	% 	 	 	25	% 	 	 	2	% 	 	 	12.8	  	  	 	10.6	  	  	 	4	  	  	 	5	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 
	 Implied Multiples for Holdings Based on Proposed Exchange Ratio
	  	 	50	% 	 	 	50	% 	 	 	21	% 	 	 	19.0x	  	  	 	14.5x	  	  	 	117	  	  	 	240	  
		  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 

  

	(1)	 Equal to
transaction value less market value of LP units owned by the GP divided by the GP only distribution. 

	(2)	 NM means “not meaningful” 

  
 - 25 -

  
  
 MEMORANDUM OF UNDERSTANDING

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}]]