Document:

exv10w9

 

Exhibit
10.9

CONTRIBUTION, CONVEYANCE AND

ASSUMPTION AGREEMENT

BY AND AMONG

ENTERPRISE PRODUCTS OPERATING L.P.

ENTERPRISE GC, L.P., ENTERPRISE HOLDING III, L.L.C.

ENTERPRISE GTM HOLDINGS L.P., ENTERPRISE GTMGP, LLC

ENTERPRISE PRODUCTS GTM, LLC

AND

SOUTH TEXAS NGL PIPELINES, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS; RECORDATION	 	 	2	 
	     1.1
	 	Definitions	 	 	2	 
	1.2
	 	Schedules	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II THE CONVEYANCE	 	 	3	 
	2.1
	 	Contribution and Conveyance of the
South Texas Assets by Enterprise GC to STX NGL	 	 	3	 
	2.2
	 	Excluded Assets	 	 	3	 
	2.3
	 	Specific Conveyances	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE III ASSUMPTION OF CERTAIN LIABILITIES	 	 	4	 
	3.1
	 	Assumption of South Texas Asset Liabilities by STX NGL	 	 	4	 
	3.2
	 	General Provisions Relating to Assumption of Liabilities	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE IV TITLE MATTERS	 	 	5	 
	4.1
	 	Encumbrances	 	 	5	 
	4.2
	 	Disclaimer of Warranties; Subrogation; Waiver	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE V FURTHER ASSURANCES	 	 	7	 
	5.1
	 	Further Assurances	 	 	7	 
	5.2
	 	Other Assurances	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VI POWER OF ATTORNEY	 	 	7	 
	6.1
	 	Enterprise GC	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE VII MISCELLANEOUS	 	 	8	 
	7.1
	 	Order of Completion of Transactions	 	 	8	 
	7.2
	 	Consents; Restriction on Assignment	 	 	8	 
	7.3
	 	Costs	 	 	9	 
	7.4
	 	Headings; References; Interpretation	 	 	9	 
	7.5
	 	Successors and Assigns	 	 	9	 
	7.6
	 	No Third Party Rights	 	 	9	 
	7.7
	 	Counterparts	 	 	9	 
	7.8
	 	Governing Law	 	 	9	 
	7.9
	 	Severability	 	 	10	 
	7.10
	 	Deed; Bill of Sale; Assignment	 	 	10	 
	7.11
	 	Amendment or Modification	 	 	10	 
	7.12
	 	Integration	 	 	10	 

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CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of                     , 2007 (this
“Agreement”), is entered into by and among ENTERPRISE PRODUCTS OPERATING L.P., a Delaware
limited partnership (“EPOLP”), ENTERPRISE GC, L.P., a Delaware limited partnership (“Enterprise
GC”), ENTERPRISE HOLDING III, L.L.C., a Delaware limited liability company (“Holding III”),
ENTERPRISE GTM HOLDINGS L.P., a Delaware limited partnership (“GTM Holdings”), ENTERPRISE GTMGP,
LLC, a Delaware limited liability company (“GTMGP”), ENTERPRISE PRODUCTS GTM, LLC, a Delaware
limited liability company (“GTM”) and SOUTH TEXAS NGL PIPELINES, LLC, a Delaware limited liability
company (“STX NGL”). The foregoing shall be referred to individually as a
“Party” and collectively as the “Parties.” Certain capitalized terms used are
defined in Article I hereof.

RECITALS

	 	1.	 	WHEREAS, EPOLP entered into a Purchase and Sale Agreement (the “Purchase
Agreement”) with ExxonMobil Pipeline Company, a Delaware corporation (“EMPCO”) for the
acquisition of certain pipeline assets;
	 
	 	2.	 	WHEREAS, EPOLP assigned its rights as buyer under the Purchase Agreement to
Enterprise GC;
	 
	 	3.	 	WHEREAS, EMPCO conveyed and assigned certain of the South Texas Assets (as
herein defined) to Enterprise GC pursuant to the Purchase Agreement;
	 
	 	4.	 	WHEREAS, EPOLP formed STX NGL pursuant to the Delaware Limited Liability
Company Act (the “Delaware LLC Act”) and contributed $1,000 in exchange for all of the
membership interests in STX NGL;
	 
	 	5.	 	WHEREAS, Enterprise GC will convey the South Texas Assets (as defined herein)
to STX NGL as a capital contribution with STX NGL assuming the South Texas Asset
Liabilities (as defined herein);
	 
	 	6.	 	WHEREAS, Enterprise GC will distribute its membership interests in STX NGL 1%
to Holding III (Holding III in turn distributes such membership interests to GTM
Holdings) and 99% to GTM Holdings; and
	 
	 	7.	 	WHEREAS, GTM Holdings will distribute its membership interests in STX NGL 1% to
GTMGP (GTMGP in turn distributes such membership interests to GTM and GTM in turn
distributes such membership interests to EPOLP) and 99% to EPOLP.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

 

 

ARTICLE I

DEFINITIONS; RECORDATION

     1.1     Definitions. The following capitalized terms have the meanings given below.

     “Agreement” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Delaware LLC Act” has the meaning assigned to such term in the first recital of this
Agreement.

     “Effective Date” means                     , 2007.

     “Effective Time” means the time when the transactions contemplated by Article
II hereof have been consummated.

     “Enterprise GC” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “EPOLP” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Excluded Assets” has the meaning assigned to such term in Section 2.2.

     “Excluded Liabilities” has the meaning assigned to such term in Section 3.2.

     “GTM” has the meaning assigned to such term in the first paragraph of this Agreement.

     “GTMGP” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “GTM Holdings” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Holding III” has the meaning assigned to such term in the first paragraph of this
Agreement.

     “Laws” means any and all laws, statutes, ordinances, rules or regulations promulgated
by a governmental authority, orders of a governmental authority, judicial decisions, decisions of
arbitrators or determinations of any governmental authority or court.

     “Party and Parties” have the meanings assigned to such terms in the first paragraph of
this Agreement.

     “Registration Statement” means the registration statement on Form S-1 (File No.
333-138371) filed by Duncan Energy Partners L.P.

     “Restriction” has the meaning assigned to such term in Section 7.2.

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     “Restriction Asset” has the meaning assigned to such term in Section 7.2.

     “South Texas Assets” has the meaning assigned to such term in Section 2.1.

     “South Texas Asset Liabilities” shall mean all liabilities and obligations relating to
the South Texas Assets. The South Texas Asset Liabilities shall not include the Excluded
Liabilities.

     “Specific Conveyances” has the meaning assigned to such term in Section 2.3.

     “STX NGL” has the meaning assigned to such term in the first paragraph of this
Agreement.

     1.2     Schedules. The following schedules are attached hereto:

(a)      Schedule 2.1 — List of South Texas Assets

(b)      Schedule 2.2 — List of Excluded Assets

ARTICLE II

THE CONVEYANCE

     2.1     Contribution and Conveyance of the South Texas Assets by Enterprise GC to STX NGL. Enterprise
GC hereby grants, contributes, transfers, assigns and conveys to STX NGL, its successor and
assigns, for its and their own use forever, all of its right, title and interest in and to all of
the assets described on Schedule 2.1 (the “South Texas Assets”), and STX NGL hereby
accepts the South Texas Assets, as a contribution to the capital of STX NGL in exchange for
membership interests in STX NGL, subject to all matters to be contained in the instruments of
conveyance covering the South Texas Assets to evidence such contribution and conveyance, if any.
The South Texas Assets shall not include the Excluded Assets.

     TO HAVE AND TO HOLD the South Texas Assets unto STX NGL, its successors and assigns, together
with all and singular the rights and appurtenances thereto in anywise belonging, subject, however,
to the terms and conditions stated in this Agreement, and in such instruments of conveyance,
forever.

     2.2     Excluded Assets. Notwithstanding anything contained in Section 2.1 to the contrary,
Enterprise GC shall not grant, contribute, transfer, assign or convey to STX NGL (or cause to be
granted, contributed, transferred, assigned or conveyed), and STX NGL shall neither assume,
purchase nor acquire from Enterprise GC any of the assets described on Schedule 2.2
(collectively, the “Excluded Assets”).

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     2.3     Specific Conveyances. To further evidence the contributions of the South Texas Assets
reflected in this Agreement, Enterprise GC may have executed and delivered to STX NGL certain
conveyance, assignment and bill of sale instruments (the “Specific Conveyances”). The
Specific Conveyances shall evidence and perfect such contribution and conveyance made by this
Agreement and shall not constitute a second conveyance of any assets or interests therein and shall
be subject to the terms of this Agreement.

     2.4     Distribution of STX NGL Interest. Enterprise GC hereby distributes, transfers and assigns all
of its right, title and interest in and to its membership interest in STX NGL to Holding III and
GTM Holdings, 1% and 99%, respectively. Holding III in turn distributes such 1% membership
interest to GTM Holdings. GTM Holdings accepts such membership interest distributed by Enterprise
GC.

     GTM Holdings hereby distributes, transfers and assigns all of its right, title and interest in
and to its membership interest in STX NGL to GTMGP and EPOLP, 1% and 99%, respectively. GTMGP in
turn distributes such 1% membership interest to GTM and GTM in turn distributes such membership
interests to EPOLP. EPOLP accepts such membership interests in STX NGL distributed by GTM Holdings
and GTM.

     TO HAVE TO AND TO HOLD, said membership interest in STX NGL unto EPOLP, its successors and
assigns, together with all and singular the rights and appurtenances thereto in anywise belonging,
subject, however, to the terms and conditions stated in this Agreement.

ARTICLE III

ASSUMPTION OF CERTAIN LIABILITIES

     3.1     Assumption of South Texas Asset Liabilities by STX NGL. In connection with the contribution
by Enterprise GC of the South Texas Assets to STX NGL, as set forth in Section 2.1 above,
STX NGL hereby assumes and agrees to duly and timely pay, perform and discharge all of the South
Texas Asset Liabilities, to the full extent that Enterprise GC has been heretofore or would have
been in the future obligated to pay, perform and discharge the South Texas Asset Liabilities were
it not for such contribution and the execution and delivery of this Agreement; provided, however,
that said assumption and agreement to duly and timely pay, perform and discharge the South Texas
Asset Liabilities shall not (a) increase the obligation of STX NGL with respect to the South Texas
Asset Liabilities beyond that of Enterprise GC, (b) waive any valid defense that was available to
Enterprise GC with respect to the South Texas Asset Liabilities or (c) enlarge any rights or
remedies of any third party under any of the South Texas Asset Liabilities.

     3.2     General Provisions Relating to Assumption of Liabilities

          (a) Notwithstanding any other provisions of this Agreement to the contrary, Enterprise GC and
STX NGL agree that STX NGL shall not be obligated to, and shall not, assume any liabilities or
obligations related to the Excluded Assets (collectively, the “Excluded Liabilities”).

          (b) Notwithstanding anything to the contrary contained in this Agreement including, without
limitation, the terms and provisions of this Article III, STX NGL shall not be

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deemed to have assumed, and the South Texas Assets have not been or are not being contributed
subject to, any liens or security interests securing consensual indebtedness covering any of the
South Texas Assets, and all such liens and security interests shall be deemed to be excluded from
the assumptions of liabilities made under this Article III.

ARTICLE IV

TITLE MATTERS

     4.1     Encumbrances.

          (a) Except to the extent provided in Section 3.2 or any other document executed in
connection with this Agreement, the contribution and conveyance (by operation of Law or otherwise)
of the South Texas Assets as reflected in this Agreement are made expressly subject to all recorded
encumbrances, agreements, defects, restrictions, and adverse claims covering the South Texas Assets
and all Laws, rules, regulations, ordinances, judgments and orders of governmental authorities or
tribunals having or asserting jurisdiction over the South Texas Assets and operations conducted
thereon or therewith, in each case to the extent the same are valid and enforceable and affect the
South Texas Assets, including, without limitation, (i) all matters that a current on the ground
survey, title insurance commitment or policy, or visual inspection of the South Texas Assets would
reflect, (ii) the applicable liabilities assumed in Article III, and (iii) all matters
contained in the Specific Conveyances.

          (b) To the extent that certain jurisdictions in which the South Texas Assets are located may
require that documents be recorded in order to evidence the transfers of title reflected in this
Agreement, then the provisions set forth in Section 4.1(a) immediately above shall also be
applicable to the conveyances under such documents.

     4.2     Disclaimer of Warranties; Subrogation; Waiver.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT
MAKE, AND EACH SUCH PARTY SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES,
PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS,
IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR
CONDITION OF THE SOUTH TEXAS ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR
ENVIRONMENTAL CONDITION OF THE SOUTH TEXAS ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF
HAZARDOUS SUBSTANCES OR OTHER MATTERS ON THE SOUTH TEXAS ASSETS, (B) THE INCOME TO BE DERIVED FROM
THE SOUTH TEXAS ASSETS, (C) THE SUITABILITY OF THE SOUTH TEXAS ASSETS FOR ANY AND ALL ACTIVITIES
AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE SOUTH TEXAS ASSETS OR THEIR
OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL PROTECTION,
POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE

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HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF THE SOUTH TEXAS ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD
THE OPPORTUNITY TO INSPECT THE SOUTH TEXAS ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN
INVESTIGATION OF THE SOUTH TEXAS ASSETS AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY
ANY OF THE PARTIES. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL
OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE SOUTH TEXAS ASSETS
FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY
OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT, EACH OF THE PARTIES
ACKNOWLEDGES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE SOUTH TEXAS
ASSETS AS PROVIDED FOR HEREIN IS MADE IN AN “AS IS,” “WHERE IS” CONDITION WITH ALL FAULTS, AND THE
SOUTH TEXAS ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN THIS
SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND CONVEYANCE OR THE TERMINATION OF THIS
AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE
CONSIDERATION AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR
WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE SOUTH TEXAS ASSETS THAT MAY
ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE, EXCEPT AS SET FORTH IN THIS
AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT.

          (b) To the extent that certain jurisdictions in which the South Texas Assets are located may
require that documents be recorded in order to evidence the transfers of title reflected in this
Agreement, then the disclaimers set forth in Section 4.2(a) immediately above shall also be
applicable to the conveyances under such documents.

          (c) The contribution of the South Texas Assets made under this Agreement is made with full
right of substitution and subrogation of STX NGL, and all persons claiming by, through and under
STX NGL, to the extent assignable, in and to all covenants and warranties by the
predecessors-in-title of the parties contributing the South Texas Assets, and with full subrogation
of all rights accruing under applicable statutes of limitation and all rights of action of warranty
against all former owners of the South Texas Assets.

          (d) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or Law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any schedules hereto are hereby expressly disclaimed,
waived or negated.

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          (e) Each of the Parties hereby waives compliance with any applicable bulk sales Law or any
similar Law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

ARTICLE V

FURTHER ASSURANCES

     5.1     Further Assurances. From time to time after the date hereof, and without any further
consideration, the Parties agree to execute, acknowledge and deliver all such additional deeds,
assignments, bills of sale, conveyances, instruments, notices, releases, acquittances and other
documents, and will do all such other acts and things, all in accordance with applicable Law, as
may be necessary or appropriate (a) more fully to assure that STX NGL own all of the properties,
rights, titles, interests, estates, remedies, powers and privileges granted by this Agreement, or
which are intended to be so granted, (b) more fully and effectively to vest in STX NGL and their
respective successors and assigns beneficial and record title to the interests contributed and
assigned by this Agreement or intended so to be and (c) to more fully and effectively carry out the
purposes and intent of this Agreement.

     5.2     Other Assurances. From time to time after the date hereof, and without any further
consideration, each of the Parties shall execute, acknowledge and deliver all such additional
instruments, notices and other documents, and will do all such other acts and things, all in
accordance with applicable Law, as may be necessary or appropriate to more fully and effectively
carry out the purposes and intent of this Agreement. Without limiting the generality of the
foregoing, the Parties acknowledge that the Parties have used their good faith efforts to attempt
to identify all of the assets being contributed to STX NGL as required in connection with this
Agreement. However, due to the age of some of those assets and the difficulties in locating
appropriate data with respect to some of the assets it is possible that assets intended to be
contributed to STX NGL were not identified and therefore are not included in the assets contributed
to STX NGL. It is the express intent of the Parties that STX NGL own all assets necessary to
operate the assets that are identified in this Agreement and in the Registration Statement. To the
extent any assets were not identified but are necessary to the operation of assets that were
identified, then the intent of the Parties is that all such unidentified assets are intended to be
conveyed to STX NGL. To the extent such assets are identified at a later date, the Parties shall
take the appropriate actions required in order to convey all such assets to STX NGL. Likewise, to
the extent that assets are identified at a later date that were not intended by the parties to be
conveyed as reflected in the Registration Statement, the Parties shall take the appropriate actions
required in order to convey all such assets to the appropriate party.

ARTICLE VI

POWER OF ATTORNEY

     6.1     Enterprise GC. Enterprise GC hereby constitutes and appoints STX NGL and its successors and
assigns, its true and lawful attorney-in-fact with full power of substitution for it and in its
name, place and stead or otherwise on behalf of Enterprise GC and its successors and assigns, and
for the benefit of STX NGL and its successors and assigns, to demand and receive from time to time
the South Texas Assets and to execute in the name of Enterprise GC and its successors and assigns,
instruments of conveyance, instruments of further assurance and to give

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receipts and releases in respect of the same, and from time to time to institute and prosecute
in the name of Enterprise GC for the benefit of STX NGL as may be appropriate, any and all
proceedings at law, in equity or otherwise which STX NGL and its successors and assigns, may deem
proper in order to (a) collect, assert or enforce any claims, rights or titles of any kind in and
to the South Texas Assets, (b) defend and compromise any and all actions, suits or proceedings in
respect of any of the South Texas Assets, and (c) do any and all such acts and things in
furtherance of this Agreement as STX NGL or its successors or assigns shall deem advisable.
Enterprise GC hereby declares that the appointments hereby made and the powers hereby granted are
coupled with an interest and are and shall be irrevocable and perpetual and shall not be terminated
by any act of Enterprise GC or its successors or assigns or by operation of law.

ARTICLE VII

MISCELLANEOUS

     7.1     Order of Completion of Transactions. The transactions provided for in Article II and Article
III of this Agreement shall be completed on the Effective Date in the following order:

     First, the transactions provided for in Article II shall be completed in the order set
forth therein; and

     Second, the transactions provided for in Article III shall be completed in the order
set forth therein.

     7.2     Consents; Restriction on Assignment. If there are prohibitions against or conditions to the
contribution and conveyance of one or more of the South Texas Assets without the prior written
consent of third parties, including, without limitation, governmental agencies (other than consents
of a ministerial nature which are normally granted in the ordinary course of business), which if
not satisfied would result in a breach of such prohibitions or conditions or would give an outside
party the right to terminate rights of STX NGL to whom the applicable South Texas Assets were
intended to be conveyed with respect to such portion of the South Texas Assets (herein called a
“Restriction”), then any provision contained in this Agreement to the contrary
notwithstanding, the transfer of title to or interest in each such portion of the South Texas
Assets (herein called the “Restriction Asset”) pursuant to this Agreement shall not become
effective unless and until such Restriction is satisfied, waived or no longer applies. When and if
such a Restriction is so satisfied, waived or no longer applies, to the extent permitted by
applicable Law and any applicable contractual provisions, the assignment of the Restriction Asset
subject thereto shall become effective automatically as of the Effective Time, without further
action on the part of any Party. Each of the applicable Parties that were involved with the
conveyance of a Restriction Asset agree to use their reasonable best efforts to obtain on a timely
basis satisfaction of any Restriction applicable to any Restriction Asset conveyed by or acquired
by any of them. The description of any portion of the South Texas Assets as a “Restriction Asset”
shall not be construed as an admission that any Restriction exists with respect to the transfer of
such portion of the South Texas Assets. In the event that any Restriction Asset exists, the
applicable Party agrees to continue to hold such Restriction Asset in trust for the exclusive

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benefit of the applicable Party to whom such Restriction Asset was intended to be conveyed and
to otherwise use its reasonable best efforts to provide such other Party with the benefits thereof,
and the party holding such Restriction Asset will enter into other agreements, or take such other
action as it may deem necessary, in order to ensure that the applicable Party to whom such
Restriction Asset was intended to be conveyed has the assets and concomitant rights necessary to
enable the applicable Party to operate such Restriction Asset in all material respects as it was
operated prior to the Effective Time.

     7.3     Costs. STX NGL shall pay all sales, use and similar taxes arising out of the contributions,
conveyances and deliveries to be made hereunder, and shall pay all documentary, filing, recording,
transfer, deed, and conveyance taxes and fees required in connection therewith. In addition, STX
NGL shall be responsible for all costs, liabilities and expenses (including court costs and
reasonable attorneys’ fees) incurred in connection with the satisfaction or waiver of any
Restriction pursuant to Section 7.2 to the extent such Restriction was disclosed to STX NGL
on or before the Effective Date.

     7.4     Headings; References; Interpretation. All Article and Section headings in this Agreement are
for convenience only and shall not be deemed to control or affect the meaning or construction of
any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and words of similar
import, when used in this Agreement, shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. All references herein to Articles and Sections shall,
unless the context requires a different construction, be deemed to be references to the Articles
and Sections of this Agreement, respectively, and all such Schedules attached hereto are hereby
incorporated herein and made a part hereof for all purposes. All personal pronouns used in this
Agreement, whether used in the masculine, feminine or neuter gender, shall include all other
genders, and the singular shall include the plural and vice versa. The use herein of the word
“including” following any general statement, term or matter shall not be construed to limit such
statement, term or matter to the specific items or matters set forth immediately following such
word or to similar items or matters, whether or not non-limiting language (such as “without
limitation,” “but not limited to,” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that could reasonably fall within the
broadest possible scope of such general statement, term or matter.

     7.5     Successors and Assigns. The Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective successors and assigns.

     7.6     No Third Party Rights. The provisions of this Agreement are intended to bind the Parties
hereto as to each other and are not intended to and do not create rights in any other person or
confer upon any other person any benefits, rights or remedies and no person is or is intended to be
a third party beneficiary of any of the provisions of this Agreement.

     7.7     Counterparts. This Agreement may be executed in any number of counterparts, all of which
together shall constitute one agreement binding on the parties hereto.

     7.8     Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws
of the State of Texas applicable to contracts made and to be performed wholly within such state
without giving effect to conflict of law principles thereof,
except to the extent that it is mandatory that the Law of some other jurisdiction, wherein the
interests are located, shall apply.

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     7.9     Severability. If any of the provisions of this Agreement are held by any court of competent
jurisdiction to contravene, or to be invalid under, the Laws of any political body having
jurisdiction over the subject matter hereof, such contravention or invalidity shall not invalidate
the entire Agreement. Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid, and an equitable adjustment shall be made
and necessary provision added so as to give effect to the intention of the Parties as expressed in
this Agreement at the time of execution of this Agreement.

     7.10     Deed; Bill of Sale; Assignment. To the extent required and permitted by applicable Law, this
Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of the South Texas Assets.

     7.11     Amendment or Modification. This Agreement may be amended or modified from time to time only by
the written agreement of all the Parties hereto and affected thereby.

     7.12     Integration. This Agreement and the instruments referenced herein supersede all previous
understandings or agreements among the Parties, whether oral or written, with respect to its
subject matter. This Agreement and such instruments contain the entire understanding of the Parties
with respect to the subject matter hereof and thereof. No understanding, representation, promise or
agreement, whether oral or written, is intended to be or shall be included in or form part of this
Agreement unless it is contained in a written amendment hereto executed by the Parties hereto after
the date of this Agreement.

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     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 
	 	ENTERPRISE GC, L.P.,

a Delaware limited partnership

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENTERPRISE HOLDING III, L.L.C.,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENTERPRISE GTM HOLDINGS L.P.,

a Delaware limited partnership

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENTERPRISE GTMGP, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENTERPRISE PRODUCTS GTM, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Asset Contribution Agreement

 

 

	 	 	 	 	 
	 	SOUTH TEXAS NGL PIPELINES, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENTERPRISE PRODUCTS OPERATING L.P.,

a Delaware limited partnership

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Asset Contribution Agreement

 

 

SCHEDULE 2.1

LIST OF SOUTH TEXAS ASSETS

     A.      Seller’s Corpus Christi to Fairmont Parkway pipeline system consisting of approximately 215
miles of 16” pipe originating near Corpus Christi, Texas and connecting to approximately 10.83
miles of 12” mainline pipe and terminating near Fairmont Parkway in Pasadena, Texas, together with
attached valves and fittings (collectively the “Pipeline”). This pipeline system is more
particularly described in Exhibit A to this Schedule 2.1.

     B.      All above ground and below ground improvements necessary to operate the Pipeline, including,
without limitation, all buildings, stations, meters and regulatory equipment, valves, pumps,
motors, tanks and other personal property.

     C.      All real property interests, including all fee, leasehold, easements, permits, licenses,
approvals and similar rights in land, and the rights in right-of-way and Department of
Transportation permits and files used in connection with the operation of the Pipeline.

     D.      Every contract, agreement or other arrangement or understanding of any kind relating to the
operation of the foregoing facilities and pipelines described in this Schedule 2.1,
including, without limitation, those listed on Exhibit B to this Schedule 2.1.

Schedule 2.1

 

 

EXHIBIT “A”

To

SCHEDULE 2.1

[Schematics from Purchase Agreement, including TX-219, 219A, 219B, 215A, 215B.]

Schedule 2.1

 

 

EXHIBIT “B”

To

SCHEDULE 2.1

Specific Contracts

Schedule 2.1

 

 

SCHEDULE 2.2

LIST OF EXCLUDED ASSETS

Schedule 2.2exv10w10

 

Exhibit
10.10

 

PURCHASE AND SALE AGREEMENT

among

TEPPCO CRUDE PIPELINE, L.P.

and

SOUTH TEXAS NGL PIPELINES, LLC

                                        , 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Article 1 Purchase and Sale
	 	 	1	 
	1.1 Assets to be Sold
	 	 	1	 
	1.2 Excluded Assets
	 	 	1	 
	 
	 	 	 	 
	Article 2 Purchase Price
	 	 	2	 
	2.1 Purchase Price
	 	 	2	 
	2.2 Closing Payments
	 	 	2	 
	 
	 	 	 	 
	Article 3 Closing
	 	 	2	 
	3.1 Date and Place of Closing
	 	 	2	 
	3.2 Seller’s Deliveries at Closing
	 	 	3	 
	3.3 Buyer’s Deliveries at Closing
	 	 	3	 
	3.4 Possession
	 	 	3	 
	3.5 Closing Condition
	 	 	3	 
	 
	 	 	 	 
	Article 4 Assumption of Obligations and Liabilities; Excluded Liabilities
	 	 	3	 
	4.1 Assumed Liabilities
	 	 	3	 
	4.2 Excluded Liabilities
	 	 	4	 
	 
	 	 	 	 
	Article 5 Seller’s Representations
	 	 	4	 
	5.1 Representations of Seller
	 	 	4	 
	5.2 Definitions, Disclaimers and Limitations
	 	 	6	 
	 
	 	 	 	 
	Article 6 Buyer’s Representations
	 	 	6	 
	 
	 	 	 	 
	Article 7 Covenants of Seller and Buyer
	 	 	7	 
	7.1 Consents and Financial Surety
	 	 	7	 
	 
	 	 	 	 
	Article 8 Title
	 	 	8	 
	8.1 Conveyances at Closing
	 	 	8	 
	8.2 Non-Assigned Assets
	 	 	8	 
	 
	 	 	 	 
	Article 9 Taxes and Related Matters
	 	 	9	 
	9.1 Cooperation on Tax Matters
	 	 	9	 
	9.2 Proration of Property Taxes
	 	 	9	 
	9.3 Recording Fees and Transfer Taxes
	 	 	10	 
	9.4 Other Taxes
	 	 	10	 
	9.5 Purchase Price Allocation
	 	 	10	 
	9.6 Assigned Contracts
	 	 	10	 
	 
	 	 	 	 
	Article 10 Indemnification
	 	 	10	 
	10.1 Seller’s Indemnity
	 	 	10	 
	10.2 Buyer’s Indemnity
	 	 	11	 
	10.3 EXPRESS NEGLIGENCE RULE
	 	 	11	 
	10.4 Limitation on Seller’s Indemnities
	 	 	11	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	10.5 Limitation on Buyer’s Indemnities
	 	 	12	 
	10.6 Other Limitations on, and Rights Related to, Indemnification
	 	 	12	 
	10.7 Claims Procedure
	 	 	13	 
	 
	 	 	 	 
	Article 11 General Provisions
	 	 	14	 
	11.1 Further Cooperation
	 	 	14	 
	11.2 Costs and Expenses
	 	 	15	 
	11.3 Risk of Loss
	 	 	15	 
	11.4 Joint Venture, Partnership and Agency
	 	 	15	 
	11.5 Books and Records
	 	 	15	 
	11.6 Publicity
	 	 	15	 
	11.7 Recording and Filing
	 	 	15	 
	11.8 Confidentiality
	 	 	15	 
	11.9 Notices
	 	 	15	 
	11.10 Time of Performance
	 	 	16	 
	11.11 Entire Agreement
	 	 	16	 
	11.12 Assignment
	 	 	17	 
	11.13 Applicable Law
	 	 	17	 
	11.14 Headings
	 	 	17	 
	11.15 Limitations of Liability
	 	 	17	 
	11.16 Waiver of Jury Trial
	 	 	17	 
	11.17 Maintenance of Records
	 	 	17	 
	11.18 Third-Party Beneficiaries
	 	 	18	 
	11.19 Counterparts and Facsimiles
	 	 	18	 

-ii-

 

EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A

	 	Definitions
	Exhibit B

	 	P-61 Pipeline Descriptions
	Exhibit C

	 	Intentionally Omitted
	Exhibit D

	 	Real Property Description
	Exhibit E

	 	Assigned Contracts
	Exhibit F

	 	Intentionally Omitted
	Exhibit G

	 	Intentionally Omitted
	Exhibit H

	 	Permits and Rights-of-Way
	Exhibit I

	 	Intentionally Omitted
	Exhibit J

	 	Intentionally Omitted
	Exhibit K

	 	Intentionally Omitted
	Exhibit L-1

	 	Form of Bill of Sale
	Exhibit L-2

	 	Form of Assignment of Right-of-Way, Easement, Etc.
	Exhibit L-3

	 	Form of Partial Assignment of Right-of-Way
	Exhibit L-4

	 	Form of Special Warranty Deed
	Exhibit L-5

	 	Form of Assignment of Contracts
	Exhibit M

	 	Intentionally Omitted
	Exhibit N

	 	Bonds
	Exhibit O

	 	Intentionally Omitted
	Schedule 5.1(d)

	 	     Consents
	Schedule 5.1(g)

	 	     Violation of Law
	Schedule 5.1(h)

	 	     Tax Matters
	Schedule 5.1(i)

	 	     Permit Compliance
	Schedule 5.1(j)

	 	     Title Defects
	Schedule 5.1(k)

	 	     Environmental Matters
	Schedule 5.1(l)

	 	     Litigation

-iii-

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), is entered into as of the ___
day of                     , 2007, by and among TEPPCO Crude Pipeline, L.P., a Texas limited partnership,
(“Seller”), and South Texas NGL Pipelines, LLC, a Delaware limited liability company,
(“Buyer”). Seller and Buyer are hereinafter sometimes referred to individually as a
“Party” or collectively as the “Parties.” Other definitions used in this Agreement
are found in Exhibit A hereto.

     For and in consideration of the mutual covenants, obligations and benefits made and contained
herein, the Parties agree as follows:

Article 1

Purchase and Sale

     1.1 Assets to be Sold. Subject to the terms and conditions set forth below, Seller
agrees to sell, grant, transfer, assign and convey, and Buyer agrees to purchase, acquire, pay for
and accept all of Seller’s right, title and interest in and to all of the following (collectively,
the “Property”):

          (a) the 10-mile long, 18” crude oil pipeline segment commonly known as the Seller’s P-61
pipeline from Mont Belvieu to Seller’s Baytown Terminal (the “Pipeline”), as more fully
described on Exhibit B hereto;

          (b) the real property interests related to the Pipeline (the “Real Property”) as
described on Exhibit D hereto;

          (c) all leases, subleases, agreements, contracts, instruments, other similar arrangements and
rights thereunder as described on Exhibit E hereto, (collectively, the “Assigned
Contracts”);

          (d) all tangible personal property of Seller, including, without limitation, all pipe, pumps,
motors, valves, fittings, miscellaneous equipment and facilities, SCADA system and buildings
associated with the Pipeline (the “Equipment”);

          (e) all Permits and Rights-of-Way described on Exhibit H hereto; and

          (f) the Books and Records; provided, however, that the Property shall not
include any Excluded Assets.

     1.2 Excluded Assets.

          (a) Seller shall reserve and retain all assets other than as expressly set forth in
Section 1.1 hereof and the Exhibits referenced therein (the “Excluded Assets”).
The Excluded Assets shall include, without limitation, the following: (i) all of Seller’s minute
books, financial records, other business records and agreements with Affiliates, (ii) all claims
and causes of action of Seller relating to any liabilities retained by Seller or any of the
Excluded Assets, (iii) all rights and
interests of Seller (A) under any policy or agreement of insurance or indemnity, (B) under any
bond or (C) to any insurance or condemnation proceeds or awards arising, in each case, from acts,
omissions or events, or damage to or destruction of property, occurring prior to the Effective
Date, (iv) all claims of Seller for refunds of or loss carry forwards with respect to (A) taxes
attributable to

 

 

any period prior to the Effective Date, (B) income or franchise taxes or (C) any
taxes attributable to the Excluded Assets, (v) all amounts due or payable to Seller as adjustments
to insurance premiums related to the Properties with respect to any period prior to the Effective
Date, (vi) all of Seller’s trademarks logos and similar intellectual property, including, without
limitation, the name “TEPPCO” and all variations and derivatives thereof, and (vii) all
accounts, notes and other receivables pursuant to the Assigned Contracts or otherwise with respect
to periods prior to the Effective Date (“Accounts Receivable”).

          (b) For all of the Excluded Assets, Buyer grants Seller a ninety (90) day right of access,
commencing on the Closing Date, to remove such assets from the Property at such times and with such
reasonable notice as shall be mutually agreed by Buyer and Seller. Within ninety (90) days after
the Closing Date, Buyer shall remove, cause to be removed or otherwise replace or re-label, all
such names, marks or logos from wherever they may appear on the Property, including the removal or
re-labeling of all line markers identifying Seller as the owner of any of the Property.

          (c) From and after the Effective Date, and without additional consideration, (i) if and to the
extent Buyer or any of its Affiliates receives any payment that is identified as, or should be
reasonably understood to be, a payment pursuant to any Account Receivable, Buyer shall promptly,
and in any event, within five (5) Business Days after receipt thereof, remit such payment to
Seller, (ii) Buyer shall not take any action that interferes with or jeopardizes the collection of
the Accounts Receivable by Seller and (iii) upon the request of Seller, Buyer shall use Reasonable
Efforts to take or cause to be taken all action as may be necessary or advisable in connection with
the collection of the Accounts Receivable by Seller, including, without limitation, assisting
Seller in connection with the exercise of any rights and remedies Seller may have pursuant to the
Assigned Contracts or otherwise; provided, however, Seller shall reimburse Buyer
for all out-of-pocket expenses incurred by Buyer in connection with its performance of this
Section 1.2(c)(iii); and provided, further, nothing in this Section
1.2(c) shall require Buyer to do anything in contravention of applicable Law.

Article 2

Purchase Price

     2.1 Purchase Price. The price to be paid by Buyer to Seller for the Property shall be
Eight Million Dollars ($8,000,000).

     2.2 Closing Payments. At Closing (as defined below), Buyer shall pay Seller the
Purchase Price by wire transfer in immediately available funds to an account to be designated by
Seller to Buyer not less than two (2) Business Days prior to Closing.

Article 3

Closing

     3.1 Date and Place of Closing. The consummation of the Transaction
(“Closing”) will take place within five (5) business days following satisfaction of the
conditions stated in Section 3.5 below, at the offices of TEPPCO Partners, L.P., 1100 Louisiana
Street, 13th Floor, Houston, Texas 77002, or at such other time and place as agreed to
in writing by the Parties (the “Closing Date”). Control of operations of the Acquired
Assets and risk of loss and transfer of title to the Property from Seller to Buyer shall be
effective as of the Effective Date.

-2-

 

     3.2 Seller’s Deliveries at Closing. At Closing, Seller shall deliver, or cause to be
delivered, to Buyer the following:

          (a) one or more (i) Bills of Sale in substantially the form attached hereto as Exhibit
L-1, (ii) Assignments of Right of Way, Easement, etc. in substantially the form attached
hereto as Exhibit L-2, (iii) Partial Assignments of Right of Way in substantially the form
attached hereto as Exhibit L-3, (iv) Special Warranty Deeds in substantially the form
attached hereto as Exhibit L-4, and (iv) Assignments of Contracts in substantially the form
attached hereto as Exhibit L-5, (collectively, the “Conveyance Documents”), each
duly executed on behalf of the appropriate Seller; and

          (b) such other documents, instruments or agreements as may be reasonably requested by Buyer to
effectuate the transactions contemplated by this Agreement.

     3.3 Buyer’s Deliveries at Closing. At Closing, Buyer shall deliver, or cause to be
delivered, to Seller the following:

          (a) a wire transfer of immediately available funds to Seller of the Purchase Price;

          (b) the Conveyance Documents duly executed on behalf of Buyer; and

          (c) such other documents, instruments or agreements as may be reasonably requested by Seller
to effectuate the transactions contemplated by this Agreement.

     3.4 Possession. At Closing, Seller shall deliver to Buyer possession of the Property
other than the Books and Records, which shall be delivered pursuant to Section 11.5 hereof.

     3.5 Closing Condition. The Closing shall not take place until the completion of
construction of a new 20” pipeline and satisfaction of all other obligations related to such
construction.

Article 4

Assumption of Obligations and Liabilities; Excluded Liabilities

          4.1 Assumed Liabilities. Subject to the terms and conditions of this Agreement, Buyer
agrees to assume and become responsible for, as of the Closing, all of the following liabilities
and obligations (the “Assumed Liabilities”): (a) liabilities and obligations with respect
to the performance of the Assigned Contracts, Permits and Rights-of-Way included in the Property
based on any act or omission occurring on and after the Effective Date; (b) liabilities and
obligations with respect to the Property arising on or after the Effective Date (excluding (i)
liabilities and obligations that arise from or as a result of the existence of Environmental
Conditions or the violation of applicable Environmental Law prior to the Effective Date and (ii)
liabilities and obligations that arise from Third-Person Claims for breach of contract or tort
based on any act or omission occurring prior to the Effective Date); and (c) liabilities and
obligations that arise from or as a result of the existence of Environmental Conditions or the
violation of applicable Environmental Law based on any act or omission occurring on or after the
Effective Date.

-3-

 

     4.2 Excluded Liabilities. Seller shall retain and be solely responsible for all
liabilities and obligations not expressly included among the Assumed Liabilities (collectively, the
“Excluded Liabilities”).

Article 5

Seller’s Representations

     5.1 Representations of Seller. Seller represents and warrants the following to Buyer
as of the date of this Agreement:

          (a) Seller has not incurred any obligation or liability, contingent or otherwise, nor made any
agreement with respect to any broker or finder’s fees arising out of or in any way related to the
transactions contemplated by this Agreement for which Buyer would be responsible.

          (b) Seller is a limited partnership duly organized, validly existing and in good standing
under the Laws of the State of Texas and is duly qualified to carry on business in the states in
which the Acquired Assets requires it to be qualified.

          (c) Seller has the power and authority necessary to enter into and perform each Transaction
Document to which it is a party and the Transaction, and none of the execution, delivery or
performance of any Transaction Document to which it is a party, nor the consummation of the
Transaction, will, with the passage of time or the giving of notice or both, (i) violate any
provision of the formation documents of such Seller, (ii) violate any agreement or instrument to
which such Seller is a party or by which such Seller is bound, (iii) violate any judgment, order,
ruling or decree applicable to such Seller (iv) violate any Law applicable to such Seller, the
Transaction Documents or the Transaction, or (v) result in the creation or imposition of any Lien
on any of the Property.

          (d) Except as described in Schedule 5.1(d) hereto, no Consent is required to be
obtained, given or made in connection with the execution and delivery by Seller of the Transaction
Documents or the consummation by Seller of the Transaction.

          (e) The execution, delivery and performance by Seller of each Transaction Document to which
it is a party, and the consummation of the Transaction, have been duly authorized by all requisite
action on the part of such Seller. This Agreement has been duly executed and delivered on behalf
of Seller, and, at the Closing, each other Transaction Document to be executed and delivered by
Seller will have been duly executed and delivered by such Seller. This Agreement does, and such
other Transaction Documents will, upon execution thereof constitute legal, valid and binding
obligations of Seller enforceable in accordance with their terms, subject, however, to the effect
of bankruptcy, insolvency, reorganization, moratorium and similar Laws from time to time in effect
relating to the rights and remedies of creditors, as well as to general principles of equity
(regardless of whether such enforceability is considered in a Proceeding in equity or at law).

          (f) Seller is not an “investment company” or a company “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, or a “foreign person” within
the meaning of Section 1445 of the Code.

          (g) Except as described in Schedule 5.1(g) hereto, neither Seller nor any portion of
the Acquired Assets is in violation of any applicable Law (other than Environmental Law) and, to

-4-

 

Seller’s knowledge, neither Seller nor any portion of the Acquired Assets is in violation of
Environmental Law, except in either case where such violations would not result in a Material
Adverse Effect on the applicable Seller.

          (h) Except as described in Schedule 5.1(h) hereto, (i) to Seller’s knowledge, Seller
has properly filed in a timely manner all Tax Returns related to the Acquired Assets, and has paid
(except amounts being diligently contested in good faith by appropriate Proceedings and disclosed
in Schedule 5.1(h) hereto, if any) all required Tax or similar assessments arising from or
related to such Seller’s Property, including any interest, penalties or additions attributable
thereto, (ii) no Proceedings, disputes or other actions which are pending, threatened or open seek
the assessment or collection of additional Taxes of any kind from Seller specifically relating to
any portion of the Property, and no other examination by the Internal Revenue Service or any other
Tax authority affecting any portion of the Property is now pending, (iii) Taxes which Seller was
required by Law to withhold or collect in respect to the Property have been withheld or collected
and have been paid over to the proper Governmental Authorities or are properly held by such Seller
for such payment when due and payable, (iv) Seller is not the beneficiary of any extension of time
within which to file any Tax Return to be filed with respect to any Property, and (v) no claim has
ever been made by any Tax authority in a jurisdiction where Seller does not file Tax Returns that
Seller is or may be subject to Tax by that jurisdiction with respect to any Property.

          (i) Set forth on Exhibit H is a true and complete list of all Permits related to the
Acquired Assets. Except as described in Schedule 5.1(i) hereto, to Seller’s knowledge (i)
each Seller has all Permits necessary for the operation of such Seller’s Property as currently
conducted, (ii) each such Permit is in full force and effect, (iii) Seller is in compliance with
all its obligations with respect to those necessary Permits and (iv) no event has occurred which
allows, or upon the giving of notice or the passage of time or both would allow, the revocation or
termination of any
Permit. Except as described in Schedule 5.1(i) hereto, Seller has not received any
written notice from any Governmental Authority of any actual or potential non-compliance with the
terms and conditions of any Permits with respect to any portion of the Property.

          (j) Except for as disclosed in Schedule 5.1(j) hereto, (i), to Seller’s knowledge ,
the Property constitutes all of the properties and assets necessary for the operation of the
Acquired Assets as the Acquired Assets is currently being conducted and (ii) Seller has good and
valid title to all of the personal property included in the Property and such personal property is
free and clear of all Liens (except for Permitted Encumbrances) and (iii) Seller has good and
indefeasible title to the fee owned and leased real property that comprise a portion of the
Property and satisfactory title to the pipeline rights-of-way and easements that comprise a portion
of the Property, in each case, free and clear of all Liens (except for Permitted Encumbrances).

          (k) Except as described in Schedule 5.1(k) hereto, (i) Seller has not received any
written notice of any civil, criminal or administrative Proceeding involving any portion of the
Property relating in any way to applicable Environmental Law and (ii) there has been no release of
Hazardous Substances on, into or beneath the Property that has or could reasonably be expected to
result in more than $50,000 per individual occurrence and more than $100,000 in the aggregate in
Losses with respect to Environmental Law.

          (l) Except as described in Schedule 5.1(1) hereto, (i) there is no pending or, to
Seller’s knowledge, threatened Proceeding involving Seller or any of the Property, at law or in

-5-

 

equity, by or before any Governmental Authority or any arbitrator or mediator which on the date
hereof is still pending or threatened, and which, if adversely determined, would impair or prohibit
the consummation of the transactions contemplated hereby or would have a Material Adverse Effect on
the Property or any substantial portion thereof and (ii) there are no orders, writs, judgments,
stipulations, injunctions, decrees, determinations, awards or other decisions of any Governmental
Authority, or any arbitrator or mediator, outstanding against Seller pertaining to any portion of
the Property, except as would not have a Material Adverse Effect.

     5.2 Definitions, Disclaimers and Limitations.

          (a) For purposes of the representations and warranties of each Seller set forth in this
Agreement (including, without limitation, Section 5.1), “knowledge” of any Seller shall
mean the actual knowledge of Sam Brown, Mike Sims and Chuck Frey, who are on the date hereof the
Persons most familiar with operation and maintenance, financial, regulatory, compliance and
contractual matters relating to the Acquired Assets.

          (b) EXCEPT AS SET FORTH HEREIN, (i) SELLER IS SELLING THE BUSINESS AND PROPERTY ON AN “AS IS,
WHERE IS” BASIS AND DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES CONCERNING THE ACQUIRED ASSETS,
AND (ii) SELLER MAKES NO REPRESENTATION OR WARRANTY OF TITLE OR FITNESS WITH REGARD TO THE ACQUIRED
ASSETS AND SELLER EXPRESSLY DISCLAIMS ANY WARRANTIES (EXPRESS, IMPLIED OR STATUTORY), WHETHER OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, COVERING THE ACQUIRED ASSETS.

          (c) Seller makes no representations concerning the present or future value of the possible
income, costs or profits, if any, to be derived from the Acquired Assets.

Article 6

Buyer’s Representations

     Buyer represents and warrants the following to Seller:

          (a) BUYER HAS CONDUCTED ITS OWN EVALUATION OF THE PHYSICAL CONDITION OF THE ACQUIRED ASSETS
AND IS ACQUIRING THE ACQUIRED ASSETS ON AN “AS IS, WHERE IS” BASIS, PURSUANT TO BUYER’S INDEPENDENT
INSPECTIONS, ESTIMATES, COMPUTATIONS, REPORTS, STUDIES AND EVALUATIONS OF THE ACQUIRED ASSETS AND
THE EXPRESS PROVISIONS OF THIS AGREEMENT. FURTHER, BUYER ACKNOWLEDGES THAT THE ACQUIRED ASSETS
HAVE BEEN USED FOR THE TRANSPORTATION OF CRUDE OIL, PETROLEUM/REFINED PRODUCTS OR BOTH AND MAY HAVE
BEEN THE SUBJECT OF ONE OR MORE RELEASES OF CRUDE OIL, PETROLEUM/REFINED PRODUCTS OR BOTH AS A
RESULT OF ITS USE.

          (b) Buyer is acquiring the Property for its own benefit and account and not with a present
intent of distributing fractional undivided interests thereof as would be subject to regulation by
federal or state securities Laws.

-6-

 

          (c) By reason of Buyer’s knowledge and experience in the evaluation, acquisition and operation
of similar properties, Buyer has evaluated the merits and risks of purchasing the Acquired Assets
and has formed an opinion based solely upon each Buyer’s knowledge and experience and not upon any
representations or warranties by Seller other than as specifically set forth herein.

          (d) Buyer assumes the risk of the expiration of any Rights-of-Way, Permit, Assigned Contract
or other agreements applicable to the Acquired Assets.

          (e) Buyer is a limited liability company duly formed, validly existing and in good standing
under the Laws of the State of Delaware and is duly qualified to carry on business in the states in
which the conduct of the Acquired Assets requires it to be qualified.

          (f) Buyer has not incurred any obligation or liability, contingent or otherwise, nor has it
made any agreement with respect to any broker or finder’s fees arising out of or in any way related
to the transactions contemplated by this Agreement for which Seller would be responsible.

          (g) Buyer has the power and authority necessary to enter into and perform the Transaction
Documents to which it is a party and the Transaction, and neither the execution, delivery and
performance of the Transaction Documents to which it is a party, nor the (a) consummation of the
Transaction, will violate (i) any provision of the formation documents of Buyer, (ii) any
agreement or instrument to which Buyer is a party or by which Buyer is bound, (iii) any judgment,
order, ruling or decree applicable to Buyer or (iv) any Law applicable to Buyer, the Transaction
Documents or the Transaction.

          (h) The execution delivery, and performance by Buyer of the Transaction Documents to which it
is a party and the consummation of the Transaction have been duly authorized by all requisite
action on the part of Buyer. This Agreement has been duly executed and delivered on behalf of
Buyer, and, at the Closing, all other Transaction Documents required hereunder to be executed and
delivered by Buyer will have been duly executed and delivered by Buyer. This Agreement does, and
such other Transaction Documents will upon execution thereof, constitute legal, valid and binding
obligations of Buyer enforceable in accordance with their terms, subject, however, to the effect of
bankruptcy, insolvency, reorganization, moratorium and similar Laws from time to time in effect
relating to the rights and remedies of creditors, as well as to general principles of equity
(regardless of whether such enforceability is considered in a Proceeding in equity or at law).

          (i) Buyer is not (i) an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended or (ii) a “foreign
person” within the meaning of Section 1445 of the Code.

          (j) Buyer has currently available all funds necessary to enable it to consummate the
Transaction. Buyer’s ability to consummate the Transaction is not contingent on its ability to
complete any financing on debt or equity offering prior to or after Closing.

Article 7

Covenants of Seller and Buyer

     7.1 Consents and Financial Surety.

-7-

 

          (a) With respect to all Rights-of-Way and Permits, upon Closing, Seller and Buyer shall
promptly file all assignments, applications, request for consent or approval and other appropriate
documentation for the transfer to Buyer of the Rights-of-Way and Permits, including, without
limitation, all required bonds and insurance. Buyer shall keep Seller informed of all actions
taken by the appropriate Governmental Authorities with respect to the same. If Seller pays any
franchise fees relating to the Property allocable to the period after the Effective Date while
Buyer is attempting to transfer from Seller to Buyer the Rights-of-Way or Permits, Buyer shall
promptly reimburse Seller for any portion of such payment attributable to the periods after the
Effective Date.

          (b) Buyer shall use Reasonable Efforts to provide, within thirty (30) days after the Effective
Date, substitute or replacement guarantees, bonds, insurance, letters of credit or similar surety
to, or obtain a release of the applicable Seller from, the appropriate Governmental Authorities or
other Persons with respect to (i) all of Seller’s guarantees, bonds, insurance, letters of credit
and similar obligations (and the reimbursement obligations thereunder) related to crude oil
purchase and sale agreements included in the Assigned Contracts to the extent the same apply to the
performance of such Assigned Contracts on and after the Effective Date and (ii) all of the bonds
described in Exhibit N hereto ((i) and (ii) are collectively referred to as
“Bonds”). Prior to Closing, Seller shall deliver to Buyer a description of all Bonds
outstanding as of the Effective Date that are not described on Exhibit N hereto. If
required, Buyer shall offer its own bond, insurance, letter of credit, guarantee, reimbursement
liability or similar obligation on the same terms and in substitution for the Bonds. If,
notwithstanding Buyer’s Reasonable Efforts, such Governmental Authorities or other Persons entitled
to the Bonds will not permit Buyer to make such substitution therefore and will not
release the applicable Seller, Buyer shall provide Seller with an appropriate indemnity in a
form that is reasonably acceptable to it.

Article 8

Title

     8.1 Conveyances at Closing. At Closing, Seller shall grant, transfer, assign, convey,
and deliver the Property to Buyer, and Buyer shall accept the Property from Seller, by means of the
Conveyancing Documents. Effective as of Closing, all Rights-of-Way and Permits pertaining to the
Property to the extent assignable shall be transferred and assigned to Buyer, and Buyer shall
assume from Seller all of Seller’s right, title and interest and obligations under such
Rights-of-Way and Permits, WITHOUT ANY WARRANTIES OF ANY KIND WHATSOEVER, WHETHER IMPLIED OR
EXPRESS, including, but not limited to those pertaining to (a) gaps in title or the right-of-way
and non-contiguity and non-continuity of the right-of-way and (b) Seller’s title to or interest in
such Rights-of-Way and Permits.

     8.2 Non-Assigned Assets. Notwithstanding anything to the contrary contained in this
Agreement, to the extent the Parties elect or are required to consummate the transactions
contemplated hereby prior to obtaining a third party consent required in connection with the
assignment of any Property (a “Non-Assigned Asset”), such Non-Assigned Asset shall be deemed to be
held by Seller at all times during the Holding Period in accordance with this Section 8.2. During
the Holding Period (a) Seller shall provide Buyer with the economic benefits and risks of ownership
of the Non-Assigned Asset, (b) Buyer shall continue to use commercially reasonable efforts to
obtain the third party consent(s) related to such Non-Assigned Asset, and (c) upon Buyer’s request,
Seller shall enforce, at Buyer’s sole cost and expense, any and all rights of Seller against third
parties with respect to such Non-Assigned Asset, including instituting and prosecuting all

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proceedings against parties other than Seller or its Affiliates which Buyer may in its reasonable
discretion deem proper in order to assert or enforce any right, title or interest in, to or under
the Non-Assigned Asset or take other actions reasonably necessary to obtain the benefits of such
Non-Assigned Asset, and defending and compromising any and all actions, suits or proceedings in
respect of such Non-Assigned Asset. Buyer shall be entitled to retain for its own account any
amounts collected pursuant to the foregoing, including any amounts payable as interest in respect
thereof. Seller will promptly pay to Buyer when received all monies received by Seller under any
Non-Assigned Asset or any claim or right or any benefit arising thereunder (net of any amounts for
which Seller is entitled to be reimbursed pursuant to this Section 1.14), except to the extent the
same represents an Excluded Asset. Buyer shall indemnify and hold harmless Seller from and against
any Losses that a Seller Indemnified Party may suffer resulting from, arising out of, relating to,
or caused by, Buyer’s or any of its Affiliates’ performance, breach or default under, operation of,
or conditions existing, arising or occurring with respect to, any Non-Assigned Asset. For purposes
of this Agreement, if the Non-Assigned Asset is an easement or similar right, then the term
Non-Assigned Asset shall include the portion of the associated Pipeline or other Property located
thereon. Upon receipt of the third party consent related to a Non-Assigned Asset, the assignment
of such Non-Assigned Asset shall automatically become effective without the need for any further
action on the part of the Parties or any other Person and without the payment of any additional
consideration. For purposes of this
Agreement, the term “Holding Period” for any particular Non-Assigned Asset shall mean the
period beginning on the Closing Date and ending on the earlier of (i) the date upon which the
contract for which consent was not obtained expires, (ii) the date upon which such consent or an
alternative arrangement is obtained on terms that are substantially similar in operational and
economic effects as the assignment of the Non-Assigned Asset to Buyer or (iii) the fifth
anniversary of the Closing Date.

Article 9

Taxes and Related Matters

     9.1 Cooperation on Tax Matters. Buyer and Seller agree to furnish, or cause to be
furnished, to each other, upon request, as promptly as practicable, such information and assistance
relating to the Property as is reasonably necessary for the filing of all Tax Returns, the
preparation for any audit by any Tax authority, and the prosecution or defense of any Proceeding
relating to any Tax Return. Seller and Buyer shall cooperate with each other in the conduct of any
audit or other Proceeding related to Taxes involving the Property and each shall execute and
deliver such documents as are necessary to carry out the intent of this article.

     9.2 Proration of Property Taxes. For purposes of this Agreement, general property
Taxes and other ad valorem-type Taxes (collectively, “Property Taxes”) related to the
ownership or use of the Property for any period beginning prior to the Effective Date and ending
after the Effective Date (a “Straddle Period”) shall be prorated between Buyer and Seller
with Seller’s share of the Property Tax being equal to the full amount of the Property Tax for the
Straddle Period multiplied by a fraction, the numerator of which is the number of days in such
Straddle Period through the Effective Date and the denominator of which is the number of days in
the entire Straddle Period. Seller shall pay to Buyer Seller’s share of such Property Taxes within
thirty Business Days of Seller’s receipt of written documentation from Buyer (including any Tax
Return prepared with respect to such Taxes) specifying the amount of Tax due and the manner in
which such Tax was calculated; provided, however, that such thirty day period shall
be extended during any period that Seller is disputing in

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good faith the calculation of such
Property Taxes. Buyer shall actually pay to the relevant Tax authority all Property Taxes for the
year of Closing.

     9.3 Recording Fees and Transfer Taxes. Buyer shall pay and bear all recording fees
and documentary transfer Taxes that may be required.

     9.4 Other Taxes.

          (a) Seller and Buyer acknowledge that the State of Texas (i) imposes a state and local tax on
the retail sale of certain personal property within the State of Texas; and (ii) excludes from such
tax (A) any transfer of personalty acquired for the purpose of resale (inventory), (B) any property
consisting of equipment, machinery, parts, supplies and other tangible personal property
acquired by the purchaser for use or consumption directly in the manufacture of tangible
personal property, (C) any property sold which qualifies for the occasional sale exemption such as
the sale of a separate division, branch or identifiable segment of the seller’s business, and (D)
personalty transferred as an incidental part of the sale of real property.

          (b) Seller and Buyer agree that all Texas state and local sales and use taxes imposed on the
sale and conveyance of the Property shall be the liability of Seller. Seller and Buyer agree that
no Texas state or local sales and use taxes will be reported on any of the Property transferred to
Buyer because all such assets fail within one of the above-mentioned exceptions to the Texas state
and local sales and use taxes.

     9.5 Purchase Price Allocation. Within ninety (90) days following the Effective Date,
Buyer and Seller shall mutually agree upon an allocation of the Purchase Price among the assets
constituting the Property and the amount of any assumed liabilities (if any) to the Property which
allocation shall be conclusive and binding on Buyer and Seller for all purposes. Buyer and Seller
agree that they shall file United States Treasury forms, consistent with the agreed-upon
allocations, with their applicable tax returns for the taxable year of the Transaction.

     9.6 Assigned Contracts. Any Taxes that are payable in connection with any Assigned
Contracts for any period prior to the Closing shall be the sole responsibility of Seller.

Article 10

Indemnification

     10.1 Seller’s Indemnity. Each Seller, as to its respective covenants, obligations,
agreements, representations or warranties (disregarding any qualification exception contained in
such representation or warranty relating to Material Adverse Effect), Excluded Liabilities and
Taxes, shall indemnify, defend and hold harmless Buyer, its Affiliates, and the directors,
officers, shareholders, owners, employees, tenants, contractors, attorneys, agents, successors and
assigns of any of them from and against any and all Losses which arise out of, in connection with
or result from the following:

          (a) the breach by Seller of any of its covenants, obligations, agreements, representations or
warranties under any Transaction Document; or

          (b) the Excluded Liabilities (other than claims pursuant to Section 10.1(c); or

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          (c) any Taxes for which Seller is responsible pursuant to any Transaction Document including,
without limitation, Article 9 hereof.

     10.2 Buyer’s Indemnity. Buyer shall indemnify, defend and hold harmless Seller, its
Affiliates, and the directors, officers, shareholders, owners, employees, tenants, contractors,
attorneys, agents, successors and
assigns of any of them (collectively, “Seller Indemnified Parties”) from and against any and
all Losses which arise out of, in connection with or result from the following:

          (a) the breach by Buyer of any of its covenants, obligations, agreements, representations or
warranties under any Transaction Document;

          (b) the Assumed Liabilities;

          (c) any claims or demands against or draws under the Bonds which arise out of, in connection
with or result from any act or omission after the Effective Date; and

          (d) any Taxes for which Buyer is responsible pursuant to any Transaction Document including,
without limitation, Article 9 hereof.

     10.3 EXPRESS NEGLIGENCE RULE. IT IS THE EXPRESS INTENTION OF THE PARTIES THAT THE
INDEMNITIES IN THIS AGREEMENT SHALL APPLY TO CLAIMS THAT MAY ARISE IN WHOLE OR IN PART FROM THE
NEGLIGENCE OF THE PARTIES, WHETHER ACTIVE, PASSIVE, JOINT, CONCURRENT OR SOLE. THE PARTIES HERETO
ALSO ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND CONSTITUTES
CONSPICUOUS NOTICE.

     10.4 Limitation on Seller’s Indemnities.

          (a) The indemnification obligation of Seller contained in Section 10.1 hereof shall
apply to matters for which Seller has received notice from Buyer as follows:

     (i) at any time with respect to claims pursuant to Section 10.1(b)
hereof and fraud or willful misconduct;

     (ii) prior to the lapse of the applicable statute of limitation with respect to
claims pursuant to Section 10.1(c) hereof; and

     (iii) within one (1) year after the Effective Date with respect to all other
claims.

          (b) Except in the case of fraud or willful misconduct and claims described in Sections
10.1(b) or (c) hereof,

     (i) Seller shall have no liability for any Losses pursuant to any Transaction
Document unless and until all such Losses, in the aggregate, exceed one hundred
thousand dollars ($100,000.00) and, thereafter, only to the extent such Losses exceed
one hundred thousand dollars ($100,000.00), and

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     (ii) Seller’s aggregate liability to any and all Persons pursuant to the
Transaction Documents for Losses shall be capped at, and shall not exceed,
twenty-five percent (25%) of the Purchase Price.

          (c) Seller shall have no liability for any claim with respect to any breach of representation
or warranty to the extent Buyer had actual knowledge of such breach prior to the Effective Date.

     10.5 Limitation on Buyer’s Indemnities.

          (a) The indemnification obligation of Buyer contained in this Agreement shall apply to matters
for which Buyer has received notice from Seller as follows:

     (i) at any time with respect to claims pursuant to Sections 10.2(b) and (c)
hereof and fraud or willful misconduct;

     (ii) prior to the lapse of the applicable statute of limitation with respect to
claims pursuant to Section 10.2(d) hereof; and

     (iii) within one (1) year after the Effective Date with respect to all other
matters.

          (b) Except in the case of fraud or willful misconduct and claims pursuant to Sections
10.2(b), (c), (d), (e) and (f) hereof,

     (i) Buyer shall have no liability for any Losses pursuant to any Transaction
Document unless and until all such Losses, in the aggregate, exceed one hundred
thousand dollars ($100,000.00) and, thereafter, only to the extent such Losses exceed
one hundred thousand dollars ($100,000.00), and

     (ii) Buyer liability to any and all Persons pursuant to the Transaction
Documents for Losses shall be capped at, and shall not exceed, twenty-five percent
(25%) of the Purchase Price.

     (c) Buyer shall have no liability for any claim with respect to any breach of representation
or warranty to the extent Seller had actual knowledge of such breach prior to the Effective Date.

     10.6 Other Limitations on, and Rights Related to, Indemnification.

          (a) No party (“Indemnifying Party”) shall be required to indemnify or hold any other
party (“Indemnified Party”) harmless with respect to any Claims to the extent the Losses
from such Claim are covered by insurance policies maintained by the Indemnified Party (but only to
the extent insurance proceeds are actually received by the Indemnified Party within one (1) year of
the Indemnified Party’s submission to its insurer(s) of its claim and appropriate supporting
documentation, unless the Indemnified Party fails to diligently attempt throughout such one (1)
year period to collect promptly such insurance proceeds). If an Indemnified Party receives such an
insurance payment subsequent to such one (1) year period, it shall remit to the Indemnifying Party

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who paid such indemnification claim, the amount so paid by the Indemnifying Party, but not in
excess of the insurance payment.

          (b) If any Losses shall result in a Tax Benefit to the Indemnified Party, then the amount to
which such Indemnified Party shall be entitled hereunder, shall be reduced by the present value
amount of such Tax Benefit.

          (c) No indemnification shall be required in respect of punitive damages (unless punitive
damages are payable to a Third Person by the indemnified party).

          (d) In the absence of fraud, the indemnification rights in this Article 10 are the
sole and exclusive monetary remedies of the Parties with respect to the Transaction Documents and
the Transaction.

     10.7 Claims Procedure. All claims for indemnification by a Party Article 10
shall be asserted and resolved as follows:

          (a) In the event that any Claim for which an Indemnifying Party would be liable to an
Indemnified Party hereunder is asserted against or sought to be collected from such Indemnified
Party by a Third Person, such Indemnified Party shall, within thirty (30) calendar days of the
receipt thereof, give notice (the “Claim Notice”) to the Indemnifying Party of such Claim
specifying the nature of and specific basis for such Claim and the estimated amount thereof, to the
extent then feasible, which estimate shall not be binding upon the Indemnified Party in its effort
to collect the final amount of such Claim. The failure to give any such notice will not affect the
rights of the Indemnified Party to indemnification hereunder unless the Indemnified Party has
proceeded to contest, defend or settle the Claim for which it failed to give prior notice to the
Indemnifying Party. Additionally, to the extent the Indemnifying Party is prejudiced thereby, the
failure to notify the Indemnifying Party of any such Claim will relieve the Indemnifying Party from
liability that it may have to the Indemnified Parry under the indemnification provisions contained
in Article 10, but only to the extent of the loss directly attributable to such failure to
notify and shall not relieve the Indemnifying Party from any liability that it may have to the
Indemnified Party otherwise.

          (b) The Indemnifying Party will be given the opportunity, at its cost and expense, to contest
and defend, by all appropriate legal Proceedings, any Claim with respect to which it is called upon
to indemnify the Indemnified Party under the provisions of this Agreement; provided,
however, that notice of the intention to contest and defend will be delivered by the
Indemnifying Party to the Indemnified Party within twenty (20) calendar days following receipt of
the Claim Notice. If the Indemnifying Party does not give notice to the Indemnified Party of its
election to contest and defend any such Claim within the 30-day period, then the Indemnifying Party
will be bound by the result obtained with respect to such Claim by the Indemnified Party and shall
be responsible for all costs incurred in connection therewith. Any Claim which the Indemnifying
Party elects to contest and defend may be conducted in the name and on behalf of the Indemnifying
Party or the Indemnified Party as may be appropriate. Such Claim will be conducted by counsel
employed by the Indemnifying Party who will be reasonably satisfactory to the Indemnified Party.
The Indemnified Party will have the right to participate in the defense of any Claim and to be
represented by counsel of its own choosing at its cost and expense, unless the nature of the Claim
precludes the same counsel from representing both the Indemnifying Party and the Indemnified Party
in which case the fees and costs of such additional counsel shall be paid by the Indemnifying Party.
If the

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Indemnified Party joins in the defense of any Claim, the Indemnifying Party shall have full
authority to determine all action to be taken with respect to their Claim; provided,
however, if the Indemnifying Party reserves its rights with respect to its indemnification
obligations under this Agreement as to the Claim, then the Indemnified Parry will have full
authority to determine all action to be taken with respect to their Claim. At any time after the
commencement of defense of any Claim, the Indemnifying Party may request the Indemnified Party to
agree in writing to the abandonment of the contest or to the payment or compromise by the
Indemnifying Party of the asserted Claim provided the Indemnifying Party agrees in writing
to be solely liable for all Losses relating to such Claim, whereupon such action shall be taken
unless the Indemnified Party determines that the contest should be continued and notifies the
Indemnifying Party in writing within ten (10) calendar days of such request from the Indemnifying
Party. In the event that the Indemnified Party determines that the contest should be continued,
the amount for which the Indemnifying Parry would otherwise be liable hereunder shall not exceed
the amount which the Indemnifying Party had agreed to pay in payment or consideration of such
Claim, provided the other Party to the contested Claim had agreed in writing to accept such
amount in payment or compromise of the Claim as of the time the Indemnifying Party made request
therefor to the Indemnified Party, and further provided that under such proposed
compromise, the Indemnified Party would be fully and completely released from any further liability
or obligation with respect to the matters which are the subject of such contested Claim.

          (c) If requested by the Indemnifying Party, the Indemnified Party agrees, at the Indemnifying
Party’s expense, to cooperate with the Indemnifying Party and its counsel in contesting any Claim
that the Indemnifying Party elects to contest, or, if appropriate and related to the Claim in
question, in making any counterclaim against the Person asserting the Third Person Claim, or any
cross-complaint against any Person other than an Affiliate of the Indemnified Party.

          (d) If any Indemnified Party has a Claim against the Indemnifying Party that does not involve
a Claim being asserted against or sought to be collected from it by a Third Person, the Indemnified
Party shall send a Claim Notice with respect to the Claim to the Indemnifying Party.

          (e) The Indemnified Party agrees to afford the Indemnifying Party and its counsel the
opportunity, at the Indemnifying Party’s expense, to be present at, and to participate in,
conferences with all Persons asserting any Claim against the Indemnified Party and conferences with
representatives of, or counsel for, such Persons.

Article 11

General Provisions

     11.1 Further Cooperation. The Parties shall execute and deliver such additional
documents and shall use all Reasonable Efforts to take or cause to be taken all such actions as may
be necessary or advisable to close and make effective the Transaction. Upon the request of Buyer,
Seller shall reasonably cooperate with Buyer in connection with the issuance, reissuance or
transfer to Buyer of all Permits and Rights-of-Way and the receipt of all Third Person Consents
necessary for the continued operation of the Acquired Assets after the Closing. After Closing,
each Party, at the request of the other Party, and without additional consideration, shall execute
and deliver, from time to time, such
additional documents of conveyance and transfer as may be necessary to accomplish the orderly
transfer of the Acquired Assets to Buyer in the manner contemplated in this Agreement.

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     11.2 Costs and Expenses. Except as otherwise expressly provided herein, each Party
shall bear and pay its own costs and expenses, including but not limited to attorneys’ fees,
incurred in connection with the Transaction.

     11.3 Risk of Loss. From and after the Effective Date, all risks of damage,
destruction or other casualty loss to or of the Property shall be borne solely by Buyer.

     11.4 Joint Venture, Partnership and Agency. Nothing contained in this Agreement shall
be deemed to create a joint venture, partnership, tax partnership or agency relationship between
the Parties.

     11.5 Books and Records. Not later than thirty (30) calendar days after Closing,
Seller shall deliver to Buyer originals of the Books and Records.

     11.6 Publicity. The initial press releases with respect to the execution of this
Agreement and the consummation of the Transaction may be separate press releases, but prior to the
issuance thereof, a copy shall have been provided to each of Seller and Buyer. Notwithstanding the
foregoing, each of Buyer and Seller may make press releases or other public disclosures with
respect to this Agreement and the Transaction as it determines, in its sole discretion, to be
necessary or advisable pursuant to applicable law, including, without limitation, the Securities
Act of 1933, the Securities Exchange Act of 1934, applicable state securities laws, and the rules
and regulations of any applicable stock exchanges (including, without limitation, the New York
Stock Exchange or other exchange), each as amended.

     11.7 Recording and Filing. Except as may be required by Law, this Agreement will not
be recorded or filed by either Party, or their successors or assigns, in or with any public or
government office, officer, agency or records repository without the prior written consent of the
other Party.

     11.8 Confidentiality. Seller and Buyer (and their respective Affiliates) each
acknowledge that the information and material, in whatever form, including, but not limited to,
this Agreement and the Exhibits and Schedules (collectively, the “Confidential
Information”) disclosed or made available to it by, and relating to the other (and its
Affiliates) prior to the Effective Date is confidential. Seller and Buyer (and their respective
Affiliates) each further agree that it shall use reasonable efforts not to make disclosure of the
Confidential Information to any Person, irrespective of the form of communication,
other than its members or owners, officers, employees, advisers and representatives to whom
such disclosure is necessary or convenient for the completion of the Transaction and except as may
be required by a court of competent jurisdiction. Seller and Buyer (and their respective
Affiliates) shall each appropriately notify each officer, employee, adviser and representative to
whom any such disclosure is made, that such disclosure is made in confidence and must be kept in
confidence.

     11.9 Notices. All notices and consents required or authorized hereunder will be in
writing and will be deemed to have been duly given by one Party if delivered personally, faxed with
receipt acknowledged, mailed by registered or certified mail, delivered by a recognized commercial
courier or otherwise actually received by the other Party at the address set forth below, or such
other address as one Party may designate by ten (10) calendar days prior written notice to the
other Party:

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          (a) Seller:

TEPPCO Crude Pipeline, L.P.

TG Pipeline, L.P.

1100 Louisiana, 13th Floor

Houston, Texas 77002

Attn: Samuel Brown, Vice President

          of Commercial Downstream

Telephone: (713) 381-4785

Fax: (713) 381-3535

          with copies to:

TEPPCO Partners, L.P.

1100 Louisiana, 13th Floor

Houston, Texas 77002

Attention: Ms. Patricia Totten, General Counsel

Telephone: (713) 381-3939

Fax.: (713) 381-4039

          (b) Buyer:

South Texas NGL LLC

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attn: James Cisarik, Senior Vice President

Telephone: (713) 803-8222

Fax: (713) 803-8300

          with a copy to:

Enterprise Products Partners L.P.

1100 Louisiana, 10th Floor

Houston, Texas 77002

Attention: Richard H. Bachmann, Chief Legal Officer

Telephone: (713) 381-6568

Fax.: (713) 381-381-6950

     11.10 Time of Performance. Time is of the essence in the performance of all covenants
and obligations under this Agreement.

     11.11 Entire Agreement. This Agreement constitutes the entire agreement between the
Parties with respect to the Transaction and supersedes all prior negotiations, statements,
representations, discussions, correspondence, offers, agreements, and understandings relating to
the Transaction. This Agreement may be modified, amended or supplemented only upon the prior
written agreement of the Parties.

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     11.12 Assignment. Buyer may not sell, assign, transfer, convey, option, mortgage,
pledge or hypothecate its rights and obligations hereunder to any Third Person without the prior
written consent of Seller, which consent will not be unreasonably withheld. Upon any authorized
sale, assignment, transfer, conveyance, option, mortgage, pledge or hypothecation hereunder, all of
the terms, covenants and conditions of this Agreement will be binding upon and inure to the benefit
of the respective successors and assigns of Buyer, but Buyer shall remain liable for the
performance of its obligations hereunder.

     11.13 Applicable Law. THIS AGREEMENT, OTHER DOCUMENTS EXECUTED AND DELIVERED PURSUANT
HERETO, AND THE LEGAL RELATIONS BETWEEN THE PARTIES WITH RESPECT TO THIS AGREEMENT, ARE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO RULES CONCERNING
CONFLICTS OF LAWS.

     11.14 Headings. The headings used in this Agreement are inserted for convenience only
and will be disregarded in construing it.

     11.15 Limitations of Liability.

          (a) The sole and exclusive remedy of Buyer and Seller with respect to the purchase and sale of
the Property shall be pursuant to the express provisions of this Agreement.
Buyer and Seller shall be deemed to have waived, to the fullest extent permitted under
applicable law, any rights of contribution and any and all rights, claims and causes of action
which may exist against Seller or Buyer, respectively, arising under or based on any federal, state
or local statute, law, ordinance, rule or regulation or common law or otherwise.

          (b) Seller and Buyer acknowledge that the payment of money, as limited by the terms of this
Agreement, shall be adequate compensation for breach of any representation, warranty, covenant or
agreement contained herein or for any other claim arising in connection with or with respect to the
Transaction. As the payment of money shall be adequate compensation, Buyer and Seller waive any
right to rescind the Transaction.

          (c) Notwithstanding anything to the contrary herein, in no event shall any Party be liable to
the other for any exemplary, punitive, special, indirect, consequential, remote or speculative
damages; provided, however, that if a Party is held liable to a Third Person for
any of such damages and the other Party is obligated to indemnify the liable Party for the matter
that gave rise to such damages pursuant to this Agreement, then the indemnifying party shall be
liable for, and obligated to reimburse the indemnified party for, such damages.

     11.16 Waiver of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND VOLUNTARILY
WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY
OTHER TRANSACTION DOCUMENT AND THE TRANSACTION. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
PARTIES ENTERING INTO THIS AGREEMENT.

     11.17 Maintenance of Records. Notwithstanding the inclusion of certain records, files
and other data in the Property, Seller will have the right to copy and retain any copies of
records, files and other data relating to the Property for which it has, or may have, any business,
technical or legal need. To the extent that those records, files and other data or any other
information made available

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to Buyer before or after the Closing contain proprietary business or
technical information of Seller or its Affiliates, Buyer agrees to hold such records, files and
other data in confidence and limit their use to the Property. Buyer shall not destroy or otherwise
dispose of any records, files and other data acquired hereunder for a period of three (3) years
following the Closing (except as to tax records for which the period shall be the applicable
statute of limitations) except upon thirty (30) days prior written notice to Seller. During such
periods, Buyer shall make such records, files and other data available to Seller at Seller’s sole
cost and expense or its authorized representatives for any business, legal or technical need in a
manner which does not unreasonably interfere with Buyer’s business operations.

     11.18 Third-Party Beneficiaries. Any agreement contained, expressed or implied in
this Agreement will be only for the benefit of the Parties hereto and their respective legal
representatives, successors and permitted assigns, and such agreements will not inure to the
benefit of the obligees of any indebtedness of either Party hereto, it being the intention of the
Parties hereto that no Person shall be deemed a Third-Person beneficiary of this Agreement.
Notwithstanding anything herein to the contrary, nothing herein will be deemed to create any rights
with respect to any employee of either Party or
any employee of any Affiliate of a Party, except as expressly provided herein with respect to
an Indemnified Party under Article 9.

     11.19 Counterparts and Facsimiles. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which will constitute one and
the same instrument. A facsimile transmission of a signed copy of this Agreement will be deemed an
original and will have the same valid and binding affect as an original.

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

	 	 	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	TEPPCO CRUDE PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	TEPPCO Crude GP, LLC,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	William G. Manias	 	 
	 

	 	 	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SOUTH TEXAS NGL PIPELINES, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

-19-

 

EXHIBIT A

attached to and made part of the

Purchase and Sale Agreement

dated                                         , 2007 among

TEPPCO Crude Pipeline, L.P.,

and

South Texas NGL Pipelines, LLC

Definitions

     1. As used herein and in the Agreement, the following terms shall have the meanings defined
below:

Acquired Assets means the Property and the Assumed Liabilities.

Affiliate means, when used with respect to a specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect common
control with the specified Person as of the time or for the time periods during which such
determination is made. For purposes of this definition “control,” when used with respect to
any specified Person, means the power to direct the management and policies of the Person,
directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” have the meanings correlative to the
foregoing.

Agreement means this Purchase and Sale Agreement, including the Exhibits and
Schedules hereto, as amended, modified and supplemented from time to time.

Assigned Contracts means those Contracts that are a part of the Property, as the
same have been amended, modified and supplemented prior to the Closing.

Books and Records means all non-privileged original files, records and data
(excluding any legal opinions) relating to the Property and in the possession of Seller or
its Affiliates, including, but not limited to, lease, land, and title records (including
abstracts of title, title opinions and title curative documents); contracts; purchasing
records; communications to and from any Governmental Authorities; tax, accounting, and
permitting files; health, safety and environmental records; and engineering and operating
records relating to the Pipeline. In the event that Seller claims that a document is
privileged, Seller shall notify Buyer of that fact in writing prior to Closing.

Business Day means any day other than a Saturday, Sunday or day on which banks are
authorized to close in Houston, Texas.

Cause means and includes fraud, theft, act(s) constituting a felony, gross neglect
of duties, material dishonesty, gross insubordination, gross misconduct, disloyalty,
intentional or grossly negligent violation of any state or federal law(s), attending work
under the influence of alcohol or illegal drugs, or public conduct materially detrimental to
the reputation of the employer.

A-1-

 

Claim means any demand, claim, notice of noncompliance or violation, loss, cost
(including investigatory costs and attorneys’ fees), damage, expense, action, suit,
Proceeding, judgment, or liability of any nature whatsoever.

Closing means the closing of the purchase and sale of the Property as contemplated
by this Agreement.

Code means the Internal Revenue Code of 1986, as amended.

Consents means any consent or approval of, notice to, or filing with any Person.

Contracts means any agreement, contract, commitment, lease, or instrument, including
all amendments, modifications and supplements thereto.

Effective Date means 7:00 a.m. Houston, Texas time on the Closing Date.

Environmental Condition means any condition, including, the presence of Hazardous
Substances on, into, or beneath the Property that would give rise to liability under any
Environmental Law.

Environmental Law means any applicable Law which govern or relate to pollution,
protection of the environment, air emissions, water discharges, flood control, or Hazardous
Substances, solid or hazardous waste, as any of these terms are or may be defined in Law,
including: the Comprehensive Environmental, Response Compensation and Liability Act of 1980,
as amended, 42 U.S.C. §§ 9601 et seq.; the Solid Waste Disposal Act, as
amended by the Resource Conservation and Recovery Act of 1976 and subsequently amended 42
U.S.C. §§ 6901 et seq.; the Hazardous Materials Transportation Act, as
amended, 49 U.S.C. §§ 5101 et seq.; the Clean Water Act, as amended, 33
U.S.C. §§ 1311 et seq.; and the Clean Air Act, as amended, 42 U.S.C. §§ 7401
et seq.

GAAP means generally accepted accounting principles as followed in the United
States, consistently applied.

Governmental Authority means any entity of or pertaining to government, including
any federal, state, local, foreign, other governmental or administrative authority, agency,
court, tribunal, arbitrator, commission, board or bureau.

Hazardous Substance means asbestos in any form, urea formaldehyde, PCBs, crude oil
of any fraction thereof, all forms of petroleum products or by-products, any radioactive
substance, any toxic, reactive, corrosive, ignitable or flammable chemical or chemical
compound and any other hazardous substance, material or waste, whether solid, liquid or gas,
as defined in any Environmental Law.

Independent Consultant means a professional consulting firm that (a) does not have,
has not had during the twelve (12) month period prior to the date hereof and is not
reasonably expected to have during the twelve (12) month period after the date hereof any
material business relationship with any Party or any of its respective Affiliates and (b)
has at least fifteen (15) years experience in the petroleum pipeline and marketing
businesses, or is otherwise acceptable to the Parties.

A-2-

 

Independent Inspector means a professional petroleum inspection firm that (a) does
not have, has not had during the twelve (12) month period prior to the date hereof and is
not reasonably expected to have during the twelve (12) month period after the date hereof
any material business relationship with any Party or any of its respective Affiliates and
(b) has at least fifteen (15) years experience in the petroleum pipeline and marketing
businesses, or is otherwise acceptable to the Parties.

Law means all applicable local, state, federal and foreign laws and rules,
regulations, codes, and ordinances promulgated thereunder, as well as judgments, orders,
consent orders or decrees with respect to which the relevant Party is a party-in-interest.

Lien means any lien, mortgage, pledge, security interest, clouds-on-title, options,
or imperfections of title, other than Permitted Encumbrances.

Losses means any and all claims, damages, losses, liabilities, payments,
obligations, penalties, assessments, costs, disbursements or expenses (including interest,
awards, judgments, settlements, fines, costs of redemption, diminutions in value, fees,
disbursements and expenses of attorneys, accountants and other professional advisors and of
expert witnesses and costs of investigation and preparation of any kind or nature
whatsoever).

Material Adverse Effect means any effect, event, combination of events,
circumstance, occurrence, or change that, individually or in the aggregate, is or could
reasonably be expected to be materially adverse to either Seller’s Property, or to the
ability of any Party to consummate timely the transactions contemplated by this Agreement.
For purposes hereof, any event, combination of events, circumstance or occurrence or change
that, individually or in the aggregate, has or could reasonably be expected to result in
adverse consequences of less than One Hundred Thousand Dollars ($100,000) and will not
prohibit a Party from timely consummating the transactions contemplated by this Agreement
shall be deemed not to be a “Material Adverse Effect” for purposes of the representations or
warranties contained in Article 5 of this Agreement.

Permit means any license, permit, concession, franchise, authority, consent or
approval granted by any Governmental Authority.

Permitted Encumbrances means (a) the Liens described in the Schedules hereto, (b)
Liens for current Taxes which are not yet due and payable or which Seller is contesting in
good faith and for which Seller has established reserves in accordance with GAAP, (c)
mechanics’, materialmen’s, carriers’, warehousemen’s, vendor’s, landlord’s and similar liens
securing obligations which are not delinquent and do not detract from the value or interfere
with the present use of the asset to which such lien attaches.

Person means any individual, corporation, partnership, joint venture, association,
joint stock company, limited liability company, trust, unincorporated organization,
Governmental Authority.

Pipeline Manuals means the manuals developed by Seller, or its predecessors, and
used in the operation of its pipeline systems.

A-3-

 

Proceeding means any action, suit, claim, investigation, review or other proceeding,
at law or in equity, before any Governmental Authority or any arbitrator, board of
arbitration or similar entity.

Reasonable Efforts means efforts in accordance with reasonable commercial practice
and without the incurrence of unreasonable expense.

Right-of-Way means all rights-of-way, easements, licenses or prescriptive rights
that are appurtenant to or associated with the Pipeline.

Tax means, as relating to any of the Property, any federal, state or local income
tax, ad valorem tax, excise tax, sales tax, use tax, franchise tax, real or personal
property tax, transfer tax, gross receipts tax, withholding tax, or other tax, assessment,
duty, fee, levy or other governmental charge, together with and including, without
limitation, any and all interest, fines, penalties, assessments and additions to tax
resulting from, relating to, or incurred in connection with any such tax or any contest or
dispute thereof.

Tax Return means any return, declaration, report, claim for refund, or information
return or statement relating to Taxes, including any schedule or attachment thereof, and
including any amendment thereof.

Third Person means any Person other than Seller or Buyer or their Affiliates.

Transaction means the transactions contemplated by the Transaction Documents.

Transaction Documents means this Agreement and each other agreement entered into in
connection with this Agreement.

     2. Other Terms. Other terms may be defined elsewhere in the text of the Agreement and
shall have the meaning indicated throughout the Agreement.

     3. Other Definitional Provisions.

     (a) The words “hereof, “herein”, and “hereunder” and words of similar import, when used
in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement. The word “including” when used in this Agreement shall mean
“including without limitation”.

     (b) The terms defined in the singular shall have a comparable meaning when used in the
plural, and vice versa.

     (c) Whenever the Parties have agreed that any approval or consent shall not be
“unreasonably withheld”, such phrase shall also include the Parties’ agreement that the
approval or consent shall not be unreasonably delayed or conditioned.

A-4-

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